WASHINGTON — An Energy Star score for multifamily properties is now available to enable owners and operators of multifamily properties — with 20 or more units — to quantify energy performance.
The U.S. Environmental Protection Agency’s (EPA) Energy Star score gives property owners and managers the ability to quantify and compare the energy performance of their multifamily housing properties against similar properties, and provides information to help prioritize energy efficiency efforts to ultimately save money.
Energy performance has a major impact on the quality and affordability of multifamily housing, according to Chrissa Pagitsas, director of Fannie Mae Multifamily Green Initiative.
“Rising utility rates create financial risk for owners of multifamily properties and reduce affordability for tenants,” notes Pagitsas. “Unfortunately, there has been very little information and key metrics available to the multifamily industry regarding the energy performance of multifamily properties, until now.”
Chrissa Pagitsas, director of Fannie Mae Multifamily Green Initiative.
Since 2011, Washington-based Fannie Mae has been the primary sponsor of EPA’s development of this score by sharing expertise and collecting the data necessary to develop the score with its Multifamily Energy and Water Market Research Survey. Numerous multifamily owners, property managers, and consultants provided data for the survey.
“Fannie Mae and the U.S. Environmental Protection Agency are working together to positively impact the quality and affordability of multifamily housing through energy efficiency,” says Janet McCabe, acting assistant administrator for EPA’s Office of Air and Radiation. “Fannie Mae’s work paved the way for our Energy Star score for multifamily housing, which will help owners and tenants save energy, save money, and better protect the environment.”
The Energy Star score represents a property’s percentile ranking compared with similar multifamily properties. For example, a property with a score of 25 performs better than only 25 percent of other similar properties, but a property with a score of 75 performs better than 75 percent of its peers.
Additionally, properties that earn an Energy Star score of 75 or higher may be eligible for Energy Star certification, a designation of top energy performance. On average, Energy Star certified buildings use approximately 35 percent less energy and emit 35 percent fewer greenhouse gases than typical buildings, according to the EPA Energy Star program.
“We’re pleased that the result of our partnership with the EPA is such a valuable tool for our industry,” says Jeffery Hayward, senior vice president and head of the Multifamily Mortgage Business, Fannie Mae.
“Reducing energy and water use can reduce operating costs, benefiting property owners, tenants and the environment. Fannie Mae’s research suggests that inefficient properties may spend up to $165,000 more in annual energy costs than a similar property operating at the highest efficiency levels. That’s real money that property owners could save and potentially benefit tenants. We congratulate the EPA on the launch of this new tool and are happy to be a part of this important development,” Hayward adds.
— Danielle Everson