Preservation through Decarbonization
Better Neighborhoods, Same Neighbors
Preservation of existing affordable housing is faster, greener, and less expensive than new construction. Yet we’re losing existing affordable housing ~10x faster than we’re building new. Now is the moment to come together, to address the underlying factors driving this trend and redesign the system to stabilize our communities.
Preservation = (Rehab + Decarb) + Stabilization
Our initial objective is to fund the Preservation of a “Batch” of 10 properties from within the Retrofit LA Pipeline – treating this “Deal” as a Systems Event, with a goal to push the edge of the possible, show what the system needs, and shift industry and institutional practices to move the system forward.
Monthly Updates
Shared Priorities
Narrative & Storytelling – With support from LADWP, we hosted our second public webinar, focused on best practices in project financing and lessons learned through the development of ELACC’s innovative Revolving Energy Transition Fund (RETR-Fund)
Case Studies – Advanceddevelopment ofcase studies on completed decarbonization projects, which illustrate how decarbonization fits within the broader context of sources and uses for Preservation
Fostering Relationships – Broadened and deepened relationships with industry leaders, including SCANPH, UCLA Ziman Center’s Housing as Healthcare Initiative, and the ULI Randall Lewis Center for Sustainability in Real Estate
Pipeline
Crafting the Deal - Engaged California Housing Partnership to model “the Gap” on our initial “Batch” of 10 properties, which will support engagement with potential capital providers in Q3
Building Shared Infrastructure – In collaboration with Retrofit LA Cohort members and the Center for Community Investment, Sustento is revamping its project and pipeline management system to streamline engagement with potential funders and support future scalability of the initiative
Funding & Capital Structure – In collaboration with the Milken Institute and LADWP, Sustento is engaged with leading CDFIs to co-develop a decarbonization financing pilot program, while engaging money-center banks and philanthropic funders to facilitate the emergence of an ecosystem that can efficiently deliver low-cost blended capital solutions at scale
Enabling Environment
Insurability – Launched collaborations with CA FWD, Enterprise Community Partners, and Milken Institute working groups on resilience, risk mitigation, and insurability
Alignment – Working with Enterprise Community Partners, opened conversations with LADWP and LAHD to improve alignment and coordination of policies, programs, and resources
Health Co-Benefits – Formalized partnerships with UCLA Fielding School of Public Health, Lawrence Berkeley National Lab, and National Lab of the Rockies (formerly NREL) to translate data on thermal comfort and indoor air quality co-benefits into investable metrics
The system is working as designed – and it’s not delivering the results we want. It’s nobody’s fault – but the responsibility falls to all of us to change it.