MatthewWalkerNavigantConsulting,Inc.SupportingtheWGManufacturedHousingWorkingGroupLife‐CycleCostModelOverviewSeptember9‐10,20142Life‐CycleCost(LCC)AnalysisOverview•LCCrepresentsthefullcostofownershipforoneconsumer•CurrentanalysisfocusesonincrementalfirstcostandincrementaloperatingexpensesLCCResultsOperatingExpensesConverttoPresentValueHUDCode

LCC ($)Efficiency(DecreasingUo)LCC STATUS:Structure and calculations of the model are inplace. Strawman inputs are included.FirstCost(DownPayment+Mortgage+Taxes)3FinancialParametersParameter DescriptionDiscount Rate Timevalue ofmoney;AlternativeinvestmentrateAnalysis Period Durationof analyzedoperatingexpensesMortgageInterest Includesrealestate andpersonalproperty(chattel)LoanTerm PeriodoverwhichtheloanisrepaidDownPayment Percentageofpurchase pricepaidupfrontLoan FeesandPoints Feespaidupfrontinaddition todownpaymentPropertyandSalesTaxRateTaxespaid basedonvalueandpriceofhomeFuel PricesandEscalationRatePriceofelectricity,gas,etc.andexpectedannualincreasesFinancial parametersimpactthecalculationofthetradeoffsamongfirstcostsanddifferentoperatingexpenses.TheWGneedstoagreeontheFinancialParameterstoaidtheLCC.4DiscountedtoPresentYearDiscountedPresentFirstCostsFirstcostsareassociatedwiththehousingpurchase.•Downpaymentandfeesoccuratthestartoftheanalysisperiod•Mortgagepayments(chattelorrealestate)occurmonthly•Propertytaxesoccurannually•MortgageandpropertytaxesarediscountedtothepresentyearTheWGneedstocollectEEMcostdata.DownpaymentFinancingFeesPropertyTaxMortgage5OperatingExpensesOperatingexpensesarecalculatedonanannualbasisanddiscountedtotheirvalueinthepresentyear.•ConvertEnergyPlusoutputtodollars•Calculatethecostofenergyforeachyearoftheanalysis•Useenergypriceescalationfactors•Calculatepresentvalueofyearlyenergycost•MaintenancecostscurrentlynotincludedinLCCmodelൌ ܺ	ݎܻ݁ܽ	ݐݏ݋ܥ	ݕ݃ݎ݊݁ܧൈ ݐݏ݋ܥ	ݕ݃ݎ݊݁ܧ	ݎܻ݁ܽ	ݐݏݎ݅ܨ݁ݐܴܽ	݊݋݅ݐ݈ܿܽܽݏܧ ൅ 1௑	௥௔௘௒TheWGneedstocollectmaintenancecosts(ifapplicable)toaidindeterminingtheOperatingExpenses.6ResidualValueResidualvaluerepresentstheEEMvalueremainingattheendoftheanalysisperiod.•Straightline(linear)depreciationisabasicmethodology•ProportionoftheEEMcostremainingisequaltothepercentageofremaininglifeoftheEEMൈ	 ݐݏ݋ܥ	ܯܧܧ ൌ ݁ݑܸ݈ܽ	݈ܽݑ݅݀ݏܴ݁݀݋݅ݎܲ݁	ݏ݅ݏݕ݈݊ܽܣ െ	 ݅݉݁ݐ݂݅݁ܮ	ܯܧܧ݅݉݁ݐ݂݅݁ܮ	ܯܧܧTheWGshoulddiscussandagreeuponaresidualvaluemethodology.7Scenarios&DataIncludedExample EnergyPlusOutputSingle‐SectionAnnualEUI(kBtu/ft2/year)CityName IECCClimateZone HeatingSystem End‐use HUDCode IECC2015Miami 1A ElectricResistance Heating 1.26 0.94Miami 1A ElectricResistance Cooling 20.81 15.72Miami 1A ElectricResistance DomesticHotWater 6.48 5.88•Strawmaninputsincludedforthefollowingefficiencylevels:–HUDCode,2006/2009/2012/2015IECC,ENERGYSTAR•EnergyPlusoutputincludeselectricresistance,heatpump,naturalgas,andLPGheatingsystems•StrawmanEEMcostsaregenerallybasedonpublicallyavailabledata,butnotnecessarilymanufacturedhousingspecific8FuelandEquipmentTypeDistribution•CensusBureau2011AmericanHousingSurvey(AHS)–Fuelandequipmenttypedistribution–Providesnationaldatabasedon1990‐2011newmanufacturedhousing–Specifictomanufacturedhousing•Othersources(includingtheResidentialEnergyConsumptionSurvey)generallysupporttheAHSestimates2011AHSData. Percentageofmarketutilizingfuel/equipmenttypes.ElectricFurnaceNaturalGasHeatPumpOil LPGNortheast15 26 6 24 26Midwest37 32 6 2 20South60 5 24 0 8West21 51 14 0 12National45 21 17 2 129HowtoUsetheLCCModel•Toggleschangethescenarioviewableinthecalculationsthroughoutthespreadsheet.•AresultsbuttontabulatestheLCCsavingsvaluesforallscenarios•Financialinputscanbechangedtoanalyzesensitivities•TheresidualvaluecalculationcanbeturnedonandoffExampleLCCResultsIncrementalHomeCostEnergyCostSavingsResidualTotalLCCSavings1AMiami‐$1,224 $2,457$0$1,2332AHouston‐$1,601 $2,420$0$81910Strawman EEMCost:Overview•Strawman EEMcostsaregenerallybasedonpublicallyavailabledata,butnotnecessarilymanufacturedhousingspecific•Strawman EEMcostsareroughestimates,notbasedonafullcostanalysis•ThefollowingslidessummarizetheEEMcostsbycomponentsandperformancelevel11Strawman EEMCost:WallInsulationFloorInsulationIncrementalCostRValue DoubleWide$ SingleWide$11‐‐ ‐‐13 50 5019 530 50020 740 70021 740 70012Strawman EEMCost:CeilingInsulationCeilingInsulationIncrementalCostRValue DoubleWide$ SingleWide$30‐‐ ‐‐38 440 26013Strawman EEMCost:FloorInsulationFloorInsulationIncrementalCostRValue DoubleWide$ SingleWide$11‐‐ ‐‐13 60 4019 250 15022 410 24030 910 54014Strawman EEMCost:WindowsU‐factorIncremental WindowCostsUValue DoubleWide$ SingleWide$1.2‐‐ ‐‐1.07‐‐ ‐‐0.75 510 3000.65 620 3600.5 790 4600.4 900 5300.35 950 5600.32 990 580Zones1‐3SHGCIncrementalWindowCostsSHGC DoubleWide$ SingleWide$0.6‐‐ ‐‐0.5‐‐ ‐‐0.4‐‐ ‐‐0.3 520 3100.25 780 46015Strawman EEMCost:EnvelopeLeakageEnvelopeLeakage(50Pascal)IncrementalCostACH DoubleWide$ SingleWide$8‐‐ ‐‐7 130 705 390 2303 650 39016Strawman EEMCost:DuctLeakageDuctLeakageIncrementalCostDuctLeakageLimit(CFM25/100ft2CFA)DoubleWide$ SingleWide$12‐‐ ‐‐9‐‐ ‐‐8 290 2304 390 330