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Heating and Cooling with Air Source Heat Pumps in New Construction



Project Overview

Community Preservation Corporation (CPC)
Lender Type: 
Deal Overview: 

The owner of this newly constructed property installed high-efficiency Variable Refrigerant Flow (VRF) heat pump technology for heating, cooling, and humidity control. VRF heat pumps provide unmatched thermal comfort at a fraction of the operating cost of older electric heating systems. Cost and efficiency savings are shared between owners and residents who pay for in-unit electric heating and cooling. On average, residents pay 43% less for essential utilities than they would at a conventionally-designed property. Additional investments (such as LED lighting, low flow plumbing fixtures, and a planned 7.5 kWh co-generation unit) lower energy consumption and provide additional savings for the owner.

Metering Configuration: 
Hot water, water & sewer utilities paid by owner
Improvements Covered: 
Energy efficiency, Water efficiency
Type of Project: 
New Construction
Total Units: 

Financing Details

Financing Type: 
Construction/Rehab, Mini-Permanent/Permanent
Total Delivery Cost: 

Underwriting Considerations

Secured - real estate
Expected Annual Income: 
Historical NOI is $894,521, but income with energy savings (adjusted NOI) is $937,321. This unlocked an additional $500,000 in available loan proceeds.
Percentage Projected Energy Savings Discounted for Use in Underwriting : 

Additional Information

Point of Contact : 
Atalia Howe, Manager of Sustainability Programs, Community Preservation Corporation (CPC), [email protected]
Additional Information: 
Estimated $42,800 in annual savings