Navigan

Su

Manufactured Housing Workin

Life‐Cycle C

Se
2

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)
3

Financial ParametersParameter DescriptionDiscount Rate Time value of money; Alternative investment rate

Analysis Period Duration of analyzed operating expensesMortgage Interest Includes real estate and personal property (chatte

Loan Term Period over which the loan is repaid

Down Payment Percentage of purchase price paid upfront

Loan Fees and Points Fees paid upfront in addition to down payment

Property 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 trad

among first costs and different operating expenses.

The WG needs to agree on the Financial Parameters to aid th
4

Discounted Discounted to Present 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
5

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

݊݋݅ݐ݈ܿܽܽݏܧ ൅ 1 ൈ ݐݏ݋ܥ	ݕ݃ݎ݊݁ܧ	ݎܻ݁ܽ	ݐݏݎ݅ܨ ൌ ܺ	ݎܻ݁ܽ	ݐݏ݋ܥ	ݕ݃ݎ݊݁ܧ

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

determining the Operating Expenses.
6

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

݅݉݁ݐ݂݅݁ܮ	ܯܧܧ 

ݏ݅ݏݕ݈݊ܽܣ െ	 ݅݉݁ݐ݂݅݁ܮ	ܯܧܧ	 ൈ	 ݐݏ݋ܥ	ܯܧܧ ൌ ݁ݑܸ݈ܽ	݈ܽݑ݅݀ݏܴ݁

The WG should discuss and agree upon a residual value meth
7

Scenarios & Data Included

Example EnergyPlus Output

Single‐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
8

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.

ElectricFurnace

NaturalGas

HeatPump

Oil LPG

Northeast 15 26 6 24 26Midwest 37 32 6 2 20South 60 5 24 0 8

West 21 51 14 0 12National 45 21 17 2 12
9

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 $1,23

2A Houston ‐$1,601 $2,420 $0 $819
10

Strawman EEM Cost: Overview• Strawman EEM costs are generally based on publical

available data, but not necessarily manufactured houspecific

• Strawman EEM costs are rough estimates, not based 

cost analysis

• The following slides summarize the EEM costs by com

and performance level
11

Strawman EEM Cost: Wall Insulation

Floor Insulation Incremental Cost

R Value Double Wide $ Single W

11 ‐‐ ‐‐13 50 5019 530 50020 740 70021 740 700
12

Strawman EEM Cost: Ceiling Insulation

Ceiling Insulation Incremental Cost

R Value Double Wide $ Single Wid

30 ‐‐ ‐‐38 440 260
13

Strawman EEM Cost: Floor Insulation

Floor Insulation Incremental Cost

R Value Double Wide $ Single Wid

11 ‐‐ ‐‐13 60 4019 250 15022 410 24030 910 540
14

Strawman EEM Cost: Windows

U‐factor Incremental Window Costs

U Value Double Wide $ Single Wide $

1.2 ‐‐ ‐‐

1.07 ‐‐ ‐‐0.75 510 3000.65 620 360

0.5 790 4600.4 900 530

0.35 950 5600.32 990 580

Zones 1‐3 SHGC Incremental Window Costs

SHGC Double Wide $ Single Wide $

0.6 ‐‐ ‐‐0.5 ‐‐ ‐‐0.4 ‐‐ ‐‐0.3 520 310

0.25 780 460
15

Strawman EEM Cost: Envelope Leakage

Envelope Leakage (50 Pascal) Incremental C

ACH Double Wide $ Single Wide 

8 ‐‐ ‐‐7 130 705 390 2303 650 390
16

Strawman EEM Cost: Duct Leakage

Duct Leakage Incremental Cost

Duct Leakage Limit

(CFM25/100 ft2 CFA) Double Wide $ Single W

12 ‐‐ ‐‐

9 ‐‐ ‐‐8 290 234 390 33