FutureFit on electrifying multi-family properties in California
FutureFit on electrifying multi-family properties in California
It’s no secret: multi-family buildings present a more complex electrification challenge. Meet the climate pioneer aiming to decarbonize 10,000 apartment buildings in California over the next decade.
Delivering a just energy transition, one multi-family building at a time, FutureFit Partners founder David Chanin set out to take on one of electrification’s biggest challenges: big residential decarbonization. For 300+ unit property managers, retrofits are tenth on the to-do list. But the positive climate impacts? Astronomical. On how WattCarbon partner FutureFit took on the big building problem, and came out winning, here’s the story.
The challenge
You can’t square a circle. You can’t unburn toast. You can’t catch the wind in a net. You can’t electrify a complex of multi-family apartments. Big building decarbonization entrepreneur, David Chanin, begs to differ.
The big idea
Housing justice is climate justice.
The threat multiplier of climate change means that the housing inequality gap is only widening, and with that, the intersectional issues across race, gender, economics, and class.
FutureFit Partners, a business accelerating the electrification of multifamily properties in California, wants to change that.
The facts?
Multi-family buildings present a more complex electrification challenge. Of the 128 million households in the US, 25% reside in multi-family buildings. 65% of those multi-family buildings are over 30 years old. And more widely, 20% of US GHG emissions stem from heating, cooling, and powering households.
The bigger the building, the older the building, the more inhabitants and stakeholders in a building: the harder the decarbonization fix.
Let’s break it down
“Hot water is hot water. No-one is inviting their friends over for dinner to look at their heat pump.” –David Chanin, FutureFit
In low-income, multi-family properties where there might be, say, 100+ people per building, outdated and complex systems mean replacing gas furnaces with heat pumps can become a serious headache.
Despite all the warnings to take on a more manageable piece of the electrification pie, Chanin was determined to square the circle, which if solved, would represent outsized emissions reductions and environmental justice impacts.
The solution
Helping landlords bring heat pumps up to the top of the priority list, up from eighth, ninth or tenth place, FutureFit guides multi-family properties from step one to total building electrification.
"We hear from landlords that installing heat pumps is often at the bottom of their to-do list," remarks Chanin. "That's where we come in. We don't just assist; we take charge from the very first step, guiding landlords through the entire process of transitioning to cleaner, more efficient systems."
Typically working on affordable apartment buildings containing anything between 50-300 units, these 2-3 story buildings are built from the 1950s onwards, and require a distinct set of expertise compared with single-occupant homes.
The opportunity is to create win-win-win projects for drastic fossil fuel emissions reductions, improved livability for tenants, and added investment value for property owners.
The complexity of electrifying multi-family properties
“It’s not as simple as trading in your gas car for an EV. Some multi-family buildings have outdated electrical systems, which triggers a snowball of challenges.” –David Chanin, FutureFit
Firstly, the projects involve multiple stakeholders, including building owners, property managers, tenants, general contractors, plumbers, electricians, painters, handymen/women, and incentive providers, each with their own priorities and concerns.
Time is a critical constraint, often sidelined compared to immediate tasks like tenant acquisition or property maintenance.
Additionally, the substantial costs associated with upgrading systems pose significant hurdles. For instance, property owners are faced with decisions like whether to invest thousands to run new electrical lines to support a heat pump, potentially triggering a costly service upgrade, or opt for a new fossil fuel boiler that can be installed tomorrow, no questions asked.
The choice between upfront costs and long-term benefits is a constant source of friction.
The importance of strategic funding
One of FutureFit's current undertakings involves replacing 200 gas hot water heaters across affordable housing buildings. Incentive programs might cover some costs, but the gap between paying contractors and receiving these funds poses a significant challenge. "This," Chanin acknowledges, "is where strategic funding becomes imperative."
Take, for instance, a 72-unit affordable housing project in Truckee, California. Updating its old fossil fuel burning heating system was a more complex challenge. Such large scale projects have a lot more upfront costs, making it hard to pencil out budgets if incentive funding doesn’t land until 6+ months later. This is where WattCarbon clean energy buyers can move the needle.
The end goal
FutureFit aims to not only reduce emissions but also to enhance tenant well-being and increase property value. It’s aiming to decarbonize 10,000 apartment buildings and offset a colossal 3.3 megatons of CO2 emissions over the next decade. That’s where WattCarbon and clean energy buyers come in, helping unlock billions to accelerate the clean energy transition.
The big decisions matter
By investing in distributed clean energy, you not only retire fossil fuel burning equipment, you reduce pollution for the lifetime of the new device (25+ years).
When you replace your gas furnace, you are not just committing to emissions reductions, you are committing to emissions eliminations, especially in California where the grid is relatively clean.
“With every new heat pump, impact compounds over time. It’s not just an emissions reduction, it’s an emissions elimination.” –David Chanin, FutureFit
If our polluted planet is an overflowing bathtub of emissions, swapping gas furnaces for heat pumps is like turning off the tap, while most carbon credit programs are grabbing towels to clean up the mess.
In California, replacing gas furnaces with heat pumps decreases building space lifetime heating operational emissions by 93% –RMI
The emissions reductions opportunities are astronomical; and most importantly, the climate justice impacts are outsized. More people of color and low-income families live in multi-family properties. Therefore your funding will go to ensuring clean energy is for everybody – not just those that can afford it.
What’s next?
What keeps the team at FutureFit motivated? For them, it's the tangible impact they make with every project.
"Replacing a hot water heater might seem routine, but it symbolizes progress," Chanin explained. "It's immediate gratification—a visible step towards a greener future."
Although there are no easy projects, they say it's deeply rewarding.
"Each furnace we replace is a commitment to emission reduction for decades to come," Chanin emphasizes. "These decisions matter—they're akin to compounding returns on our environmental investment."
FutureFit is more than just a clean energy company; it can ensure that building electrification is for everyone — one apartment building at a time.
Get involved
If you want to support FutureFit to decarbonize low income, multi-family properties, get in touch with WattCarbon to discuss vPPA opportunities. Pre-order EACs now on the WattCarbon Marketplace.