1. Energy Efficiency:
The Multifamily
Business Strategy
By: Craig Cobb, Project Manager for Lawler Wood Housing,
LLC

2. 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

3. 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

4. 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

5. 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

6. 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
$-
$200
$400
$600
$800
$1,000
$1,200
Utility Expense Per Unit
2010
2012

7. 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, Ceilin
g 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
$-
$50
$100
$150
$200
UA
for 1
BR
UA
for 2
BR
UA
for 3
BR
MonthlyUtilityAllowance
Utility Allowance
Analysis
2009
2013

8. 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
$-
$20
$40
$60
$80
$100
$120
UA
for 1
BR
UA
for 2
BR
UA
for 3
BR
MonthlyUtilityAllowance
Utility Allowance
Analysis
2011
2013

9. 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