Navigan

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Manufactured Housing Workin

Life-Cycle C

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Life-Cycle Cost (LCC) Analysis Overview• LCC represents the full cost of ownership for one con• Current analysis focuses on incremental first cost and 

incremental operating expenses

LCC Results

Operating Expenses

Convert to 

Present 

Value

HUD Code

LCC ($)

Efficiency (Decre

LCC STATUS:Structure and calculations of the model are in place. Strawman inputs are included.

First Cost

(Down Payment +

Mortgage + Taxes)
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Financial ParametersParameter DescriptionDiscount Rate Time value of money; Alternative investment rateAnalysis Period Duration of analyzed operating expensesMortgage Interest Includes real estate and personal property (chatteLoan Term Period over which the loan is repaidDown Payment Percentage of purchase price paid upfrontLoan Fees and Points Fees paid upfront in addition to down paymentProperty and Sales Tax Rate

Taxes paid based on value and price of home

Fuel Prices and Escalation Rate

Price of electricity, gas, etc. and expected annual 

Financial parameters impact the calculation of the tradamong first costs and different operating expenses.

The WG needs to agree on the Financial Parameters to aid th
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Discounted to Present Year

First Costs

First costs are associated with the housing purchase.

• Down payment and fees occur at the start of the analysis • Mortgage payments (chattel or real estate) occur monthl

• Property taxes occur annually• Mortgage and property taxes are discounted to the prese

The WG needs to collect EEM cost data.

Down payment

Financing Fees

Property Tax Mortga
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Operating ExpensesOperating expenses are calculated on an annual basis discounted to their value in the present year.• Convert EnergyPlus output to dollars• Calculate the cost of energy for each year of the ana• Use energy price escalation factors• Calculate present value of yearly energy cost• Maintenance costs currently not included in LCC mo

		
	
	 = 
	
			
 × 1 + 


	

The WG needs to collect maintenance costs (if applicable) to 

determining the Operating Expenses.
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Residual ValueResidual value represents the EEM value remaining at of the analysis period.• Straight line (linear) depreciation is a basic methodo• Proportion of the EEM cost remaining is equal to the

percentage of remaining life of the EEM



	
 =  		
	 ×	 	!"#	 − %




 	!"#

The WG should discuss and agree upon a residual value meth
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Scenarios & Data Included

Example EnergyPlus OutputSingle-Section Annual EUI (kBtu/ft2/year)

City Name IECC Climate Zone Heating System End-use HUD Co

Miami 1A Electric Resistance Heating 1.26 Miami 1A Electric Resistance Cooling 20.81 Miami 1A Electric Resistance Domestic Hot Water 6.48 

• Strawman inputs included for the following efficienc

– HUD Code, 2006/2009/2012/2015 IECC, ENERGY STAR

• EnergyPlus output includes electric resistance, heat 

natural gas, and LPG heating systems

• Strawman EEM costs are generally based on publical

available data, but not necessarily manufactured houspecific
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Fuel and Equipment Type Distribution• Census Bureau 2011 American Housing Survey (AHS) – Fuel and equipment type distribution – Provides national data based on 1990-2011 new manufactu

housing – Specific to manufactured housing

• Other sources (including the Residential Energy Cons

Survey) generally support the AHS estimates

2011 AHS Data. Percentage of market utilizing fuel/equipment types.

Electric Furnace

Natural Gas

Heat Pump Oil LPG

Northeast 15 26 6 24 26

Midwest 37 32 6 2 20South 60 5 24 0 8West 21 51 14 0 12National 45 21 17 2 12
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How to Use the LCC Model• Toggles change the scenario viewable in the calculat

throughout the spreadsheet.

• A results button tabulates the LCC savings values for 

scenarios

• Financial inputs can be changed to analyze sensitivit

• The residual value calculation can be turned on and 

Example LCC Results

Incremental

Home Cost

Energy Cost 

Savings Residual Total LC

Saving

1A Miami -$1,224 $2,457 $0 $1,232A Houston -$1,601 $2,420 $0 $819 
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• QUESTIONS?