potential, the design team had to take a separate solar reading for each of the units. Other
challenges included tree shading, structural
limitations of the existing buildings, existing
electrical service equipment and interconnection with Pacific Gas & Electric (PG&E, pge.
com) for such a large cumulative system.
OKAMOTO SAIJO ARCHI TEC TURE OKAMOTO SAIJO ARCHI TEC TURE
In the end, the team decided to connect
each building’s PV system to the existing electrical service equipment via a line-side tap. This
avoided the expense not only of installing new
electrical service equipment, but also of associated upgrades to the entire utility infrastructure. Approval of this approach was closely
vetted, with city building officials and PG&E
as active participants.
The renovation, budgeted at approximately
$50 million including a new multicultural family resource center and upgraded computer
center, was phased over a 25-month period,
during which the complex remained occupied.
The contractor received three vacant buildings
to renovate at a time, staggered one month
apart, giving workers approximately 12 weeks
to renovate each building inside and out and
install the PV system.
EAH Housing and its partners worked
closely with the Crescent Park Resident Council to relocate residents within the complex
efficiently and comfortably. Buildings were
vacated on a scheduled and orderly basis with
minimal disruption to residents’ lives.
The financing of the project included a sale
by its previous owner to an EAH Housing-con-trolled limited partnership which involved —
•;Tax-exempt;and;taxable;bonds;issued;by
the city of Richmond and privately placed with
Union Bank of California ( unionbank.com);
• Four percent tax credit-based equity
Above, daylighting strategies brighten
corridors of community buidlings. Locally
sourced recycled materials are used wherever possible.
syndication;through;National;Equity;Fund;Inc.
( nefinc.org);
•;Seller;take-back;promissory;note;financ-ing, to permit the entire appraised value of the
property to be considered for acquisition basis
purposes;
•;California;Solar;Initiative;(CSI,;gosolar-
california.org) rebates; and
•;U.S.;Department;of;Housing;and;Urban
Development-authorized ( hud.gov) use of
residual receipts to be used to pay for a portion of the construction/rehabilitation costs.
All of the bonds, both the taxable and tax-exempt, were issued by the city of Richmond.
Pre-development financing from several sources was repaid at the time of the close of sale to
the new owner.
“EAH Housing accomplished this without
any new subsidy loans from any source,” said
Matt;Steinle,;EAH;vice;president;for;real;estate
development, who structured the transaction.
The PV contractor provided a fixed cost
for the modules and maintained a delivery
schedule spanning two years. It also required
flexibility on the owner’s part to work through
challenges associated with the general undersupply of solar panels in the marketplace, in
order to ensure timely delivery of the panels
and;CSI;rebates.;Fortunately,;EAH;Housing
maintained a good relationship with general
contractor West Coast Contractors (west-
coastcontrs.com);and;subcontractor;Sun;Light
& Power ( sunlightandpower.com), allowing it
to keep the schedule flexible. The PV portion of
the renovation is fully paid for via —
• More than $1.7 million in California
Public Utility Commission rebates, under
the;CSI;program;
•;Renewable;energy;credits;
•;Low-income;housing;tax;credits;
• The reduction in owner-paid electricity costs for this master-metered complex by
almost $154,000 per year. This budget reduction permitted almost $3 million more in bond-financed permanent debt to be supported.
Although there are limitations to the benefit of the renewable energy tax credits in low-income housing tax credit and tax-exempt private bond financing, the true value is largely
realized;by;the;owner’s;ability;to;claim;the
entirety of tax credit at the time the PV system
is placed in service. ST
