Winter 2013

 

Energy Upgrade California San Diego Multi-Family Building Program

Low-income seniors living in the 198-unit Sorrento Tower high-rise community in Clairemont, one mile east San of Diego’s Mission Bay, are sitting comfortably in their new energy efficient building. They are the first to benefit from a new state program that makes energy upgrades to multi-family buildings with federal stimulus dollars and local government, utility and private sector support. 

Built in 1976, Sorrento Tower was well maintained but in need of a capital infusion to replace or repair all major components when the RAHD Group purchased it in 2011. The company, which specializes in the development and preservation of affordable housing, immediately applied for assistance with the new Energy Upgrade California ™ Multi-Family Building Program, and by mid-2012 Sorrento Tower had become the program’s first San Diego success story.

Energy Upgrade California is an unprecedented alliance among California counties, cities, non-profit organizations, the California Energy Commission and the California Public Utilities Commission launched in 2011 and funded in part through the American Recovery and Reinvestment Act.

In San Diego, the program has brought the county and city together with San Diego Gas & Electric (SDG&E) to provide cash incentives, technical assistance and tenant education for building owners undertaking a renovation, rehabilitation or preservation of multi-family unit buildings. For Sorrento Tower, the San Diego Housing Commission also stepped up to help.

“It’s rare in construction and development when improvements can be cost-effective, good for the environment, enhance a property’s value and benefit tenants’ lives all at once, but Energy Upgrade California allowed us to do just that,” said Colin Rice, RAHD Group partner, who noted that the renovation industry is just beginning to trend towards energy efficiency retrofitting as building owners realize the financial benefits in conjunction with environmental benefits. “The building’s qualification for this program made this project an even more attractive purchase for us,” said Rice. “While about half of our projects incorporate an energy efficient component, Sorrento Tower is the biggest, broadest success, which we attribute to the partnership between SDG&E, the City and County of San Diego and the State of California and their willingness to extend the benefits of Energy Upgrade California to multi-family affordable housing.”

Owner incentives through this program include $550 to $1,500 per unit from SDG&E for properties in their service area. The City of San Diego offers an additional $500 to $2,000 per unit to building owners for low and moderate-income properties.

In 2009, the City of San Diego worked closely with a community advisory committee to design a project plan for federal stimulus funds through the Federal Energy Efficiency and Conservation and Block Grant. “It was a unanimous decision to invest in upgrades to affordable housing that would improve energy efficiency,” said Linda Pratt, Chief Program Manager, City of San Diego Environmental Services Department. “We are committed to doing what we can to promote resource conservation, and are so pleased that Sorrento Tower is the first project to be completed. We hope that this will serve as a model for many more multi-family affordable housing projects.”

Additionally, the San Diego Housing Commission was instrumental in securing $13.6 million in Multi-Family Revenue Bonds back in 2011 for the RAHD Group to acquire and rehabilitate Sorrento Tower. With the building’s rent protections due to expire by 2016, at which time the property would be free to convert to market-rate rental housing, the Housing Commission and RAHD Group were able to preserve Sorrento Tower’s affordability for low-income seniors for an additional 55 years. Today, seniors are secure in their enjoyment of affordable rent and utilities thanks to a synergy of forward-thinking agencies.

Energy Upgrade California is featured prominently in the 2013-14 Energy Efficiency programs. Check with your local utility and/or Regional Energy Network for program details.