Energy Efficiency: The Multifamily Business StrategyBy: Craig Cobb, Project Manager for Lawler Wood Housing, LLC

Who is Lawler Wood Housing?• Developer & Property Management Company based in

Knoxville, TN• Focus on affordable housing• Started in 1975 as Lawler Wood• Started re-development on subsidized housing in 1999 as

Lawler Wood Housing• Developed and own 55 properties with 7,785 affordable units

in 11 states• Over $500 million in Development since 1999• Development sources: private debt, bonds, tax credits

Lawler Wood Housing 1999-2009• Developed 45 affordable properties• Main sources: private debt, bonds, 4% tax credits• Properties were between 20-30 years old• Average rehab per unit: approx. $15,000

Lawler Wood Housing 2010 - Present• Developed 10 affordable properties• Main sources: private debt, 9% tax credits• Properties are between 30-40 years old• Average rehab per unit: approx. $42,000

Energy Efficient Upgrades• Energy Efficient Water Heaters w/New Insulation Blankets• New R-38 Insulation• New Roofs• New Siding and Tyvek House Wrap• Low Flow Water Saving Devices

• Toilets• Faucets• Showerheads

• Energy Star Everything:• Windows• HVACs

• Heat Pumps• Compressors (at least 15 SEER)

• Lighting Fixtures• Appliances

• Refrigerators• Dishwashers• Ceiling Fans• Washers

Case Study: Buffington Towers• 109 units, 8 story high rise• Located in Little Rock, AR• Rehabbed in 2011• Energy Efficient Upgrades:• New EPDM Roof• New Energy Star Appliances

(incl. adding Dishwashers, Microwaves, Ceiling Fans)

• New Energy Star Light Fixtures

• New Low Flow Toilets, Showerheads, Faucets

• New Energy Star PTAC Units• New Energy Star Windows

Electricit

y

Water/S

ewer

Total Utiliti

es $-

$200

$400

$600

$800

$1,000

$1,200 Utility Expense Per Unit

20102012

Case Study: Woodbend Apartments• 104 units, garden style

apartments• Located in Maumelle, AR• Rehabbed in 2010• Energy Efficient Upgrades:• New R-38 Insulation• New Energy Star HVACs (15 SEER)• New Energy Star Appliances (incl.

adding Dishwashers, Microwaves, Ceiling Fans, Washers & Dryers)

• New Energy Star Light Fixtures• New Energy Star Windows• New Low Flow Faucets,

Showerheads• New Energy Efficient Water

Heaters w/Insulation Blankets

UA for 1

BR

UA for 2

BR

UA for 3

BR

$- $20 $40 $60 $80

$100 $120 $140 $160 $180

Utility Allowance Anal-ysis

20092013

Mon

thly

Util

ity A

llow

ance

Case Study: Oak Ridge Apartments• 64 units, garden style apartments• Located in Little Rock, AR• Rehabbed in 2012• Energy Efficient Upgrades:• New R-38 Insulation• New Energy Star HVACs (15.5

SEER)• New Energy Star Appliances (incl.

adding Dishwashers, Microwaves, Ceiling Fans, Washers & Dryers)

• New Energy Star Light Fixtures• New Energy Star Windows• New Low Flow Toilets, Faucets,

Showerheads• New Energy Efficient Water

Heaters w/Insulation Blankets• New Roofs• New Siding & Tyvek House Wrap

UA for 1

BR

UA for 2

BR

UA for 3

BR

$-

$20

$40

$60

$80

$100

$120

Utility Allowance Anal-ysis

20112013

Mon

thly

Util

ity A

llow

ance

Positive Impact of Energy Efficient Upgrades• Lower Utility Allowances• Tenants Spend Less on Utilities; More Money In Their Pockets• Government Spends Less Money on Utility Allowances

• Lower Utility Expenses = More Cash Flow• Underwriting Future Deals• More Aggressive on Expenses• Leverage More Private Debt• Use Less Government Tax Credits