sustainable communities magazine sept/oct

Sustainable Communities

6i-2

TM

Refloating HousingForeclosure fixes progressAs delinquencies increase

Vol 1, No 5 • September/October 2011 • www.p4sc.org • $12

IN THIS ISSUE

CDFI’s gear up for $1 billion capital infusion .......................... p. 3

Homebuyers demand mixed-use, short commutes ................p. 10

Survey quantifies cities’ actions to be sustainable ................ p. 14

Special Report: Multifamily preservation & retrofits ........... .p. 28

It takes a village.But it starts with a plan.

SURVEYING THE LANDSCAPE #10

Landscape architecture

pLanning

urban design

it’s about taking a site and turning it into a place that expresses a unique

vision. designing a community that meets today’s needs while creating

a more sustainable tomorrow. exceptional place-making begins at sWa

group, where our long history of balancing the needs of habitat and

inhabitants informs a unique perspective. For an introduction to our

capabilities and award-winning portfolio, visit swagroup.com.

SANTALUz

San Diego County, California

Finalist for ULI Award for Excellence.

Developers: DMB Associates; Taylor

Woodrow Homes. SWA provided

master planning, site planning, grading

plans, and design guidelines for this

3,800-acre residential community.

Santaluz sensitively blends the built

and natural environments, placing

primary emphasis on the preservation

and enhancement of natural topogra-

phy and vegetation. The result is an

exceptionally livable community that

conserves water and other natural

resources.

SWA AD for Sustainable Communities-Santaluz.indd 1 4/20/11 1:42 PM

September/october 2011 • SuStainable CommunitieS 1

10 Smart Growth:A preference for smaller houses and a shorter commute, a mix of housing and businesses within an easy walk and near-by public transit are among the results revealed by the National Association of realtor’s survey of what American’s desire most in their neighborhoods and homes. Although, a single-family home is still the American dream, a smart-growth neighborhood is quickly becom-ing part of that dream.

14 Sustainability:When it comes to government takingaction to promote sustainability, Westernstates lead the way. According to asurvey by the International city/county management Association andArizona State University, that looked at 109 different sustainability actions (in 12 categories) local governments could take, from recycling to green building, Western states topped the list in 10 of the 12 categories.

18 Refloating Housing:State and local governments are work-ing hard to stabilize communities hit

hard by the foreclosure crisis. through the Neighborhood Stabilization program, a program that has received $6.9 billion in appropriations over the last several years, governments are purchasing, renovating and reselling foreclosed homes in order to address the neighbor-hood deterioration created by the large number of homes sitting abandoned and vacant.

28 Preservation: With new construction facing financial obstacles, preservation, renovation and retrofit of existing buildings is getting more attention for housing sponsors. In this article, we take a look at efforts to preserve and retrofit affordable multi-family properties across the nation.

38 GHG emission allowances:pioneering emission allowance auction system hits rough patch as one stateleaves the program and another state faces opposition to remaining involved.New Jersey emphasizes alternative energy development, including solar onbrownfields, and bans new coal-fired plants.

DePaRtmentS

2 Letter from the Editor

3 F inancing Sourceses cDFIs prepare for infusion

of capital from federal bond guarantee

4 Letter to the Editor Form-based codes, housing policy

6 Around the Nation

• colorado

• massachussetts • pennsylvania • New York

8 Green Building & Design

LA school campus breaks

new ground

Features

September/october 2011

28

10

18

14

contents

It takes a village.But it starts with a plan.

SURVEYING THE LANDSCAPE #10

Landscape architecture

pLanning

urban design

it’s about taking a site and turning it into a place that expresses a unique

vision. designing a community that meets today’s needs while creating

a more sustainable tomorrow. exceptional place-making begins at sWa

group, where our long history of balancing the needs of habitat and

inhabitants informs a unique perspective. For an introduction to our

capabilities and award-winning portfolio, visit swagroup.com.

SANTALUz

San Diego County, California

Finalist for ULI Award for Excellence.

Developers: DMB Associates; Taylor

Woodrow Homes. SWA provided

master planning, site planning, grading

plans, and design guidelines for this

3,800-acre residential community.

Santaluz sensitively blends the built

and natural environments, placing

primary emphasis on the preservation

and enhancement of natural topogra-

phy and vegetation. The result is an

exceptionally livable community that

conserves water and other natural

resources.

SWA AD for Sustainable Communities-Santaluz.indd 1 4/20/11 1:42 PM

8

3

SuStainable CommunitieS • September/october 20112

Letter from the editor

For the last two years, the U.S. government has done some-

thing shockingly out of character. It has taken its first tenta-

tive steps in decades to plan ahead and invest in the future of

our nation’s economic sustainability. but now, with short-term

thinking roaring back, those efforts are seriously threatened.

Leaders of the budget reduction hawks, like House major-

ity Leader eric cantor, are determined to kill almost all federal

investments in communities and the economy. While he’s con-

sidered extremist, he has set the tone in Washington. Despite

the obvious need for economic stimulus, his kind of thinking has

caught hold. the congressional “super committee” and the obama Administration are pre-

paring lists of budget items for elimination that will probably include sustainable communi-

ties planning grants and investments in environmental protection and green jobs.

In the first stimulus package during the last recession of the decade, there was a huge

infusion of funds to encourage energy retrofits and deal with the depressed housing market.

In his recent speech, president barack obama made it clear there will be no repeat or exten-

sion of the investments authorized by the American recovery and reinvestment Act.

there was not one word in the president’s speech about extending or increasing current

efforts to create green jobs in retrofitting existing buildings to be more efficient.

As for housing, the anchor weighing down our economy, obama made just one vague and

tepid promise to help “responsible homeowners” refinance their mortgages at interest rates that

are now near 4%. this is hardly enough to make a difference in the economy or to revive a hous-

ing market that is suffering from a succession of very foolish federal policy failures.

So, after a very brief flirtation with long-term thinking, we are right back into crisis mode.

once again, we will lurch from crisis to crisis, prioritizing a very small and very short-term

reduction in the budget deficit over long-term investments, and with no long-term strategies

to build sustainable local and national economies.

our leaders still don’t get it. While things like sustainable communities planning grants

do not help our budget woes now, they will save substantial amounts of money in the future.

With individual household income on the decline, and robust income growth unlikely for

years, it’s essential to pursue sustainable communities planning to help control our cost

of living. It’s essential to invest in housing rehab and energy efficiency to reduce future

expense. And to abandon federal leadership to control carbon emissions is to invite incalcu-

lable costs in just a decade or two.

I was hoping the recession would bring back some common sense to our leaders, includ-

ing the realization that sustainability is really not such a new concept. It’s what folks used

to mean when they said “a stitch in time saves nine” or when they quoted benjamin Frank-

lin’s aphorism: “a penny of prevention equals a pound of cure.”

Sadly, it has not happened. We are about to abandon our two-year flirtation with long-

term thinking and go back to the bad habits of previous decades.

We all have to fight back against short-term thinking and make the case with our elected

officials that benjamin Franklin was right. economic sustainability is not a left-wing, do-

gooder, socialist scheme. It’s good old-fashioned common sense.

Sustainable Communities Magazine

Editor and PublisherAndre Shashaty, [email protected]

Office & Member Services ManagerCarol Yee, [email protected]

Art DirectorLaura Williams, [email protected]

Advertising & Conference Sales ManagerWendy Chaney, [email protected]

Assistant EditorMegan Truxillo, [email protected]

Board of Directors Rev. Betty Pagett, Community

Acceptance Strategist

Todd Sears, Vice President of Finance, Herman & Kittle Properties

Patrick Sheridan, Senior Vice President for Housing Development,

Volunteers of America

Dianne Spaulding, Executive Director, Non-Profit Housing Association of

Northern California

Leadership Advisory Board Richard Baron, Chairman and CEO,

McCormack Baron Salazar

Doug Bibby, President, National Multi Housing Council

Christine Carr, ManagerCommunity Development Finance

Silicon Valley Bank

Henry Cisneros, Executive Chairman, CityView; former secretary, U.S. Dept of Housing and

Urban Development

F. Barton Harvey, Former chairman and CEO, Enterprise Community Partners

William C. Kelly, Jr., President, Stewards of Affordable Housing for the Future (SAHF)

Kerry Mazzoni, public policy consultant, former state legislator and former

California Secretary of Education

Nicolas P. Retsinas, Director, Joint Center for Housing Studies, Harvard University

Caleb Roope, President/CEO, The Pacific Companies Mitchell Silver, PP, AICP

DirectorDepartment of City Planning for Raleigh, N.C.

Sustainable Communities Magazine is published by Partnership for Sustainable Communities (“PSC”) is a private nonprofit organization incorporated in Califor-nia. It is not affiliated with the United States federal in-teragency “Partnership for Sustainable Communities,” which is a venture between HUD, DOT and EPA. PSC is not supported by government funding. It depends en-tirely on membership dues and charitable donations to cover its costs. To make a donation, go to www.p4sc.org

900 Fifth Ave, Suite 201, San Rafael, CA 94901 415 453 2100 ext 302 www.P4SC.org

By Andre Shashaty

Sustainable Communities

6i-2

TM

Vol 1, No 5 •September/October 2011 • www.p4sc.org

Printed on SFI Certified 10% Recylced Paper with vegetable and/or soy based inks.

At Least 30% Certified Forest Content

SFI-01042

Demand Economic Sustainability


Community lenders gear up for infusion Of low-cost capital for low-income areas

While congress prepares to

slash federal spending, com-

munity development financial

institutions are gearing up to start

using $1 billion a year in new financing

courtesy of the U.S. government.

It’s not a direct subsidy and in

theory, it won’t cost the U.S. trea-

sury more than administrative costs.

but the money will open doors for

hundreds of community-based lenders

and investors to finance low-income

housing, business development and

other projects that have few other

financing options.

the cDFI bond program, enacted

by the Small business Jobs Act of

2010 (public Law 111-240), will provide

long-term (up to 30 years), low cost

capital by virtue of a federal guaran-

tee on $1 billion a year in bond issues.

It is administered by the U.S. trea-

sury Department, which is scheduled

to issue rules governing the program

this fall. the taxable bond proceeds

are expected to start flowing in the

first half of 2012.

“the program is unprecedented in

terms of a new capital source being

available to community development

financial institutions,” said cathy

Dolan, chief operating officer of the

opportunity Finance Network. “We

think it could totally transform the

capitalization of cDFIs.”

the capital will be most welcome

for housing and community develop-

ment projects in small towns and rural

areas that have little or no access to

capital of any kind, let alone long-term

low-cost capital.

Although banks are subject to

investment requirements under the

community reinvestment Act, they

are only required to invest in their

retail service areas. As a result, com-

munity lending and investing tends to

be concentrated in major metro areas

served by a number of major banks.

the crA does little to stimulate lend-

ing in small towns and

rural areas without

many bank branches.

the details of how

the bond guarantee au-

thority will be adminis-

tered are not yet public.

but the statute calls for

a maximum of ten bond

issues per year, which

means a minimum size

per issue of $100 mil-

lion. It’s unclear how

the treasury Depart-

ment will decide which

cDFIs get to issue the

bonds but it will prob-

ably have a lot to do

with what they include

in the required “capital

distribution plan.”

the plan will describe how they

plan to use bond proceeds. Dolan said

it’s possible the rules will place some

restrictions on what projects can be

financed using the bonds, but the as-

sumption is most things cDFIs finance

now will be eligible. these include:

• Affordable housing

• Small business lending

• commercial re in low-income

communities

• community facilities

It is expected that the primary

buyer of the bonds will be the Federal

Financing bank, which means the

bonds are essentially private place-

ments with much lower issuance costs

than public bond issues entail.

While the bond money will be at

market rates of interest, the govern-

ment guarantee and the low costs

of issuance will mean cDFIs can get

rates lower than they would get from

any commercial bank, even in a major

metro areas. For cDFIs outside of

major urban areas it will be the only

▲ Library Square provides affordable senior housing

in Mandan, ND. It was financed by Community Housing

Capital, a CDFI that originates Interim Development

financing and Multifamily Permanent loans to the

NeighborWorks® network. —coNtiNuED oN pAGE 4

Cathy Dolan, COO of Opportunity

Finance Network

f inancing sources


f inancing sources

source of long-term, reasonably priced

capital.

Dolan said the bonds will likely

have yields “pretty close” to yields on

treasury bonds of similar maturities.

“It’s a once in a generation oppor-

tunity,” said Jack Gilbert, ceo of com-

munity Housing capital, a national

cDFI based in Decatur, Ga.

the bond proceeds will provide

cheaper, longer term and more flexible

money than the capital now available

to cDFIs. He expects loans made from

the bonds to have rates just 1/8th of a

percentage point over treasuries. this

compares to margins of three or four

points on the financing that is gener-

ally available now to most cDFIs.

the bond financing is expected to

provide financing for as long as 30

years, compared to the 5- to 7-year

terms that are typically available to

cDFIs from their traditional capital

sources, he added.

one major question mark is

whether the program rules will allow

issuance of bonds with maturities

of less than 30 years while retain-

ing the benefit of the full 30-year

guarantee period provided by the

statute. If a cDFI could issue ten-year

bonds without losing the value of the

remaining 20 years of the guarantee

period, it would allow for a lower cost

of funds on the shorter-term debt. It

also remains to be seen if the funds

can be used for general capitalization

of cDFI operations rather than only

for project-by-project, asset-based

lending.

the program has a risk-sharing

requirement. cDFIs that issue bonds

must take 3% risk share.

there are about 700 cDFIs with

about $30 billion in assets outstand-

ing. but only a handful of them are

large enough to manage a bond issue

of $100 million.

the bulk of the bond proceeds will

probably be used to finance pools of

loans originated by smaller cDFIs to

end users and/or loans to the cDFIs

themselves.

It’s likely that a large portion of

the bond proceeds will be used in

conjunction with another program

operated by cDFIs – the New markets

tax credit (Nmtc) program. the first

round of Nmtc deals are reaching

the point where the debt financing on

them is reaching maturity. With the

lousy economy and the tightness of

credit markets, it has become difficult

to find sources to refinance that debt.

the bond program will help solve that

problem, Dolan said. ❧

—coNtiNuED FRoM pAGE 3


Form-based codes

I was excited to see your cover-

age of the contra costa bArt Station

development and to see an image of

the buildout. I was dismayed, however,

to find that nowhere in the article was

reference made to the form-based code

(Fbc) used to determine the urban form.

the 6-day charrette that was mentioned

was part of the form-based coding pro-

cess. the plan gained support from the

many involved parties who had previ-

ously been at odds with one another

because a Fbc, by definition, assures a

predictable outcome.

Form based codes foster predict-

able built results and a high-quality

public realm by using physical form

(rather than separation of uses) as the

organizing principle for the code. they

are regulations, not mere guidelines.

they are adopted into city or county

law. Form-based codes are an alterna-

tive to conventional zoning.

Your readers will be better served if

they understand the value of form-

based coding as an effective tool for

place-making.

carol Wyantexecutive DirectorForm-based codes Institute

Housing errors costly

Your article about the negative con-

sequences of the government’s failure

to deal with the housing slump (“poli-

cymakers fiddle while housing burns,”

July/August, 2011) was informative but

did not go far enough. the U.S. govern-

ment has not just neglected housing. It

actually appears determined to make

things worse, not better.

the recent talk about eliminating

the home mortgage interest deduction

is terrible medicine for a sick hous-

ing market. Sure, it could be on the

table at some point, but discouraging

buyers by threatening a change in the

tax treatment of mortgage debt now

is moronic. All responsible parties

should rule it out, unequivocally and

immediately.

then, there’s the Federal Housing

Finance Agency’s decision to sue 17

mortgage originators for misrep-

resenting the quality of mortgage

securities they sold to Fannie mae and

Freddie mac. Add that one to the list

of legal battles that is prolonging the

uncertainty that is hampering a revival

of mortgage lending in this country.

besides, does the federal govern-

ment really think a judge will take pity

on Fannie and Freddie as if they were

poor widows who had no clue how to

evaluate a mortgage-backed security?

Sincerelyedward park, Jr.Arlington, Va.

Letters to the editor


1 Colorado

Fund helps preserve affordable transit-oriented housingA fund set up to purchase and preserve affordable transit-oriented housing acquired its fifth property in Denver.

the Urban Land conservancy (ULc), enterprise community partners, the city and county of Denver and other investors, created the fund to acquire and preserve land for workforce housing near light rail stops and high frequency bus routes.

the newly acquired property, Villa

toD Apartments is a mixed-use prop-erty located in the heart of the Santa Fe Arts District and includes 16 units of affordable apartments, four commercial office spaces and an auto body shop. built in the 1920s, the property is within five blocks of a light rail station.

With $15 million in capital, and an eventual goal of $25 million, the Fund hopes to create and preserve over 1,000 afford-able housing units near transit.

“the Fund answers a basic real estate conundrum: when the economy is bad, property

values are low and ripe for purchase, but access to capital is poor and affordable housing developers are scarce. Now is the opportune time to invest in real estate around proposed transit stations in order to capital-ize on current values and preserve affordable hous-ing,” says ULc.

the Villa toD Apartments currently serve households at or below 40 percent area

median income. the fund will

preserve the apartments as afford-able housing, following the toD Fund mandate that residential rates are at or below 60 percent area median income, with approximately 15 percent of units serving households at or below 30 percent area median income.

For more information on the fund visit http://www.urbanlandc.org.

2 massachusettes

boston’s bike Share Program attracts Record numbers in its First month According to the boston Globe, the success of boston’s bicycle-sharing sys-tem is surprising even its backers.

the Globe reports in its first month the program attracted over 2,300 annual subscribers, a number neither

Denver nor minneapolis’s bike sharing systems reached by their 7th month of operation.

“It’s been wildly successful,’’ said mary mcLaughlin, Hubway’s general manager. She initially hoped to sell 2,000 memberships by thanksgiving, shortly before the bicycles get taken in for winter, reported the Globe.

to take advantage of boston’s New balance Hubway bike share system,

around the nation

1

42

3

▲ Hubway bikes await riders at a docking

station in Boston.

▲ A pedestrian street in the vibrant Santa Fe Arts

District.


members pay $85 for a one-year membership, which allows them unlim-ited 30-minute trips between bike sta-tions; longer trips incur an additional charge. tourists and occasional riders can pay for a one-day or three-day pass.

Low-income boston residents can take advantage of an annual member-ship subsidized by the boston public Health commission. Subsidized mem-berships are only $15 for a year and include a free helmet.

presently there are 60 docking stations and 600 bikes available throughout the city. the program has plans to expand those numbers considerably.

the success of the program is good news to New York city, which launches its own bike share program next year. In the Northeast, Washing-ton D.c. operates the largest bike-share program with over 1,100 bikes and 110 stations.

For more information on New bal-ance Hubway visit www.thehubway.com.

3 Pennsylvaniaadvocates urge action to Save Foreclosure Relief Program

the Housing Alliance of pennsylva-nia is asking for individuals to sup-port pennsylvania’s Homeowners

emergency mortgage Assistance program (HemAp) by contacting state representatives and telling them to reinstate HemAp fund-ing.

HemAp, a state program ad-ministered by the pennsylvania Housing Finance Agency, provides loans to homeowners facing foreclosure due to circumstances beyond their control, such as job loss. Since its inception in 1983, HemAp has helped over 45,000 homeowners stay in their homes.

In June, the General Assembly and pennsylvania Governor tom corbett cut HemAp’s appropriation from $10.6 million to $2 million, which only provides enough funding to cover ongoing mortgage payments for exist-ing cases. HemAp stopped taking new applications on July 1.

the similar federal foreclosure relief program, the emergency Homeowners Loan program (eHLp), ends September 30th, leaving penn-sylvania homeowners facing foreclo-sure with nowhere to turn after the federal program ends.

“It’s not too late to get HemAp back. Let your legislators know that, while we understand the need for budget cuts, cutting HemAp now in the midst of a recession and foreclo-sure crisis makes no sense at all,” urges the Housing Alliance.

to learn more about HemAp visit www.housingalliancepa.org.

4 new York

$22 million investment in High efficiency Pre-fabricated building VentureGe energy Financial Services is lead-ing a $22 million investment in San Francisco-based project Frog, a maker of pre-fabricated energy efficient building kits. In addition to the invest-

ment, Ge has already begun construc-tion of a project Frog building at its corporate learning center in ossining, N.Y.

project Frog says its pre-fab kits improve traditional building con-struction methods by combining semi-custom designs with a pre-engineered kit of energy-efficient building components. this enables faster and cheaper construction of high-efficiency buildings, the com-pany says.

“We make the complicated and lengthy process of new construction faster and easier for our customers by providing a kit of high precision, sustainable parts that are optimized based on the structure’s size, use and location,” said project Frog ceo Ann Hand.

the company calculates its build-ings use at least 25 percent less en-ergy than the strictest building codes in the U.S.

project Frog kits are delivered to project sites ready for assembly, gen-erally taking between 6 and 12 months to assemble. completion of the project Frog building at Ge’s learning center in ossining is expected at the end of this year.

For more information on project Frog visit www.projectfrog.com. ❧

▲ Protestors rally to preserve HEMAP

funding.

▲ A Project Frog building in Oahu.

pH

ot

o: p

ro

Je

ct

Fr

oG

©


green BuiLding & design

los Angeles–A new school cam-pus here holds a special place in American history. Named after

former US attorney general and presi-dential candidate robert F. Kennedy, it is built on the site of the Ambassador Hotel, where Kennedy was assassinated

in 1968. It is also an example of innova-tive design that saves energy and im-proves indoor air quality.

the robert F. Kennedy Zone of choice comprises six new schools lo-cated at the former Ambassador Hotel site. It is reportedly the first campus in

california to fully employ a technology called thermal displacement ventilation (tDV) in which air is delivered from the lower portion of the walls, rather than from the ceiling. the upward flow of air results in not only a more energy ef-ficient form of air-cooling but also im-

School Campus Named for Kennedy Uses innovative design, technology

▲ The Robert F. Kennedy Zone of Choice comprises six new schools located at the former Ambassador Hotel site.

pH

ot

o: c

oU

rt

eSY

oF

He

LIp

Ho

to


proves air quality by reducing germs in the air, which in turn leads to fewer sick days for students and teachers.

Another energy efficient feature of the campus is a cen-tral plant heating/cooling sys-tem that provides chilled and hot water to all school build-ings. this central air condition-ing system saves energy use and reduces utility costs for the school district.

the full height glass curtain wall facade on the north face of the high school maximizes natural light in the classrooms, which also reduces energy costs without glare and signifi-cant heat gain. In addition to windows, all classrooms have occupancy sensors and day-light sensors to control light fixtures and further reduce energy consumption.

other sustainable design elements incorporated into the campus include: double and triple-glazed windows to

reduce heat load and urban traffic noise; reflective white roof-ing; drought-tolerant landscaping; low Voc emission interior materials; water saving plumbing fixtures; renewable materials

such as linoleum, rubber, and cork floor-ing; and photovoltaic panels in the rob-ert F. Kennedy Inspiration park.

the campus is located one block from a Los Angeles metro rail Station to encourage faculty and visitor use of mass transit.

the campus was designed by Gonza-lez Goodale Architects of pasadena, cA.

the building exceeds the strict envi-ronmental standards set by the collab-orative for High performance Schools (cHpS). cHpS is a self-certifying system designed for rating school buildings in terms of sustainability and construc-tion. the campus meets cHpS criteria in several categories including site selec-tion, water use, energy savings, sustain-able materials, and indoor environmen-tal quality. ❧

The full height glass

curtain wall facade on

the north face of the

high school (below)

maximizes natural light

in the classrooms, which

also reduces energy

costs without glare and

significant heat gain.

Designed by Gonzalez

Goodale Architects of

Pasadena, CA, the campus

features cutting edge

design (bottom).

the robert F. Kennedy Zone of choice comprises six new

schools located at the former Ambassador Hotel site that

are part of the pilot Schools Network. these include:

• Ambassador School of Global education, Grades K-5

• Ambassador School of Global Leadership, Grades 6-12

• Los Angeles High School of the Arts, Grades 9-12

• New open World Academy, Grades K-12

• School for the Visual Arts & Humanities, Grades 9-12

• UcLA community School, Grades K-12

A pilot School is an autonomous small school. pilot

Schools were established in 2007 as role models of ed-

ucational innovation, and as research and development

sites for effective teaching and learning in urban public

schools. While pilot Schools are part of the school district,

they have autonomy over budget, staffing, governance,

curriculum/assessment, and the school calendar.

this increased flexibility enables the school to further

meet the needs of students and parents. pilot Schools

are committed to the idea that student engagement and

achievement increase when schools are small, personal-

ized, mission-driven, and have autonomy over their re-

sources in exchange for increased accountability.

pH

ot

oS

: co

Ur

te

SY o

F m

AG

NU

S S

tAr

© (

Go

NZ

AL

eZ

Go

oD

AL

e A

rc

HIt

ec

tS

)

Pilot Schools explained

▲

results reveal a desire for smart growth

communities

2011 NAr community preference Survey

new survey by the NAtIoNAL ASSocIAtIoN oF reALtorS© (NAr) re-veals where most Americans would like to live — and it’s no big surprise. A single-family home on a large lot remains the American Dream.

but that’s just the first layer of the onion. As the 2011 community preference Survey peels away more layers, a host of less foreseen insights emerge — including the news that more people want to live in a neighborhood characterized by smart growth than one characterized by suburban sprawl.

that’s one of many thought-provoking findings contained in the survey of 2,071 adult Americans conducted for the NAr by belden, russonello and Stewart in Feb-ruary. other significant highlights include:

More people want to

live in a neighborhood

characterized by smart

growth.


a


>>

n While a majority of Americans rank space and privacy as their top priorities, a lengthy commute can sway them to consider smaller houses on smaller lots;

n Seven times more people say the neighborhood where a house is located is a bigger consideration in deciding where to live than the size of the house;

n two-thirds of Americans see being within easy walking distance of places in their community as an important factor in deciding where to live;

n Americans see preserving farms and open spaces as much more important than creating new develop-ments; and

n Improving public transportation is viewed as the best answer to traffic congestion by half the country.

All of those findings paint a picture of housing prefer-

ences that look a lot like smart growth — whether people call it that or not. Shyam Kannan, a principal with rcLco real estate Advisers and one of several experts who provided advice to NAr on the design of the survey, said the results show that when presented with options that reflect smart growth versus options that don’t, “more and more people choose smart growth.”

perhaps the most telling question asked people to choose between living in community A — all single-family homes on large lots, no sidewalks, little public transportation — and community b — a variety of housing and businesses, more sidewalks, nearby public transportation. people preferred community b — the neighborhood characterized by smart growth — over community A — the neighborhood character-ized by suburban sprawl — by a 56 to 43 percent margin.

0% 20% 40% 60% 80% 100%

0% 20% 40% 60% 80% 100%

commute timeLarger houses

and lots, longer

commute

Neighborhood

▲ Given the choice between a smaller house and lot with a commute of 20 minutes or less and a larger house and lot with a

commute of 40 minutes or more, respondents said smaller is better if it’s closer to work.

Size of house

▲ By a very large majority, respondents said the quality of a neighborhood was more important than the size of a house.

39%

59%

88%

12%

Smaller houses and lots

shorter commute

Size of the house


>>

0% 20% 40% 60% 80% 100%

mix of housing and business

▲ Most suburbs were designed to be exclusively residential, so you’d have to drive to stores and other businesses. But a majority

of resondents said they’d prefer to have business within walking distance.

mix of housing and

businesses within

an easy walk

40%

58%

the survey breaks down responses demographically. people between the ages of 18-29 and 60-plus chose the smart growth community more frequently than any other age group at 62 percent (18-29) and 58 percent (60-plus). these are telling statistics, as they are part of the nation’s two largest demographic waves — Generation Y and the baby boomers.

people earning $100,000-plus chose the smart growth community more frequently than any other income group (60%) followed closely by people earning $25,000 or less (59%). African Americans chose the smart growth community more than any other racial group (69%) followed by Latinos (58%) and whites (52%).

the strong preference for smart growth by Latinos is especially important, said Kannan, because immigrants are driving the country’s population growth and Latinos — many of whom are immigrants — are the nation’s fastest-growing ethnic population.

While 65 percent of single people chose the smart growth community, 52 percent of married people chose the sprawl community. recent homebuyers also chose the sprawl community more often (54%), but prospective homebuyers favored the smart growth community (57%). people from the Northeast chose the smart growth option more than any other region in the country (63%) followed by people from the midwest (57%).

Walking to restaurants, businesses, schools and other amenities was the most appealing feature of the smart growth community to 60 percent of all those who preferred that choice. It also was the most appealing feature of the smart growth community to 40 percent of those who pre-ferred the suburban sprawl choice.

that wasn’t the only survey question that revealed Americans are eager to stretch their legs. Sidewalks and

places to take walks ranked third among factors considered very important or at least somewhat important in deciding where to live. privacy from neighbors (45 percent very im-portant/87 percent at least somewhat important) was first, followed by living within a 30-minute commute to work (36 percent/78 percent) and having sidewalks/places to walk (31 percent/77 percent).

Another sign that walkability is important came when people were asked to choose between a community with a mix of housing/businesses within an easy walk and a community with houses only, where residents have to drive to businesses. people preferred the walkable community by a 58 percent to 40 percent margin. “You have so many amenities, restaurants, shops, friends nearby, culture,” said a survey respondent.

people were especially keen on walking to a grocery store (35 percent very important/40 percent somewhat impor-tant), pharmacy (24 percent/41 percent), hospital (25 per-cent/36 percent) and restaurants (18 percent/42 percent).

When asked to choose from a list of community needs, 46 percent of respondents cited having more shops or restaurants within an easy walk of home. that ranked it third behind providing better public transportation (51%) and of-fering more housing for people with low incomes (47%).

besides being the leading community need, better public transportation also was the preferred answer to reducing traffic congestion. An even 50 percent of the public favored that option compared to 30 percent who favored developing communities that require less driving and 18 percent who favored building new roads.

Nothing, however, eclipses the desire for a single-family detached home. that’s where 80 percent of people said they preferred to live — and where 70 percent already reside — when asked to choose between various housing types.

Houses only and

drive to businesses


0%

20%

40%

60%

80%

100%

▲ The survey asked respondents to choose between two kinds

of communities. Community A was described as all single-

family homes on large lots, with no sidewalks, and little public

transportation. Community B was described as having a variety

of housing and businesses, more sidewalks, and easy access to

public transportation.

A and b

most (59%) said they would be willing to accept a longer commute and forgo walking to shops and restaurants to live in a single-family home rather than an apartment or a townhome. Still, that leaves a sizable minority — 38 percent — who’d prefer an apartment or townhouse if it shortened their commute and enabled them to walk to shops and res-taurants.

that’s a significant number considering 80 percent of the country would otherwise prefer to live in a single-family home. Kannan believes it’s another indication that “the more information we give people about what smart growth looks like, the more likely they are to choose it.”

It’s also noteworthy that despite ranking privacy as the most important factor in deciding where to live, 59 percent of the public said they’d choose a smaller house on a smaller lot if their commutes were 20 minutes or less. “Quality of life is convenience for me,” said a survey respondent. “being able to walk to public transportation means I spend less time commuting. We could have a bigger house somewhere else, but it wouldn’t be worth it for me.”

on the other hand, walkability doesn’t transcend the desire for space even if it means living in a sprawl-oriented community. most people (61%) said they’d be willing to drive to schools, stores and restaurants in order to live in a house on a large lot rather than live in a house on a small lot that enabled them to walk to those destinations. “It doesn’t even have to be a larger house. I just want space between my

neighbors and me,” said a survey respondent.Nevertheless, a strong anti-sprawl sentiment emerged

when people were asked to prioritize a list of housing and community issues facing their state governments. preserv-ing farms and open spaces was the number one issue with 53 percent of the people saying it was a high or extremely high priority. creating new developments was dead last at 24 percent.

Kannan believes one of the most significant findings for real estate developers involves the tradeoff between size of house and the quality of the neighborhood. builders typically emphasize size and finishings much more than neighbor-hood when developing and marketing housing, he said, yet 88 percent of survey respondents said neighborhood mat-tered more than size of house in deciding where to live. And — based on their answers to numerous other questions — the kind of neighborhood they prefer includes a healthy dose of smart growth.

that puts real estate developers at the same crossroads as U.S. auto companies a few decades ago when they were painfully slow to respond to changing consumer demand for smaller and more fuel-efficient cars, said Kannan. “I don’t know if builders realize that this is their 1970s/1980s oil shortage ... and they can’t ignore the opportunity to change

their business model,” he said.

to view the survey in its entirety, please visit http://www.realtor.org/government_affairs/smart_growth/survey.

“Reprinted with permission from On Common Ground, Copy-right National Association of REALTORS®”

With budget battles raging in Washington, D.c. and many state capitols, the community sustainability movement faces severe setbacks.

If you care about making communities sustainable, now’s the time to act. take a moment now to become a member of partnership for Sustainable communities®. Go to www.p4sc.org and click on “become a member” in the green bar at top, or call 415-453-2100 x 302.

You pay just $99 for an entire year. You will be supporting a good cause, and you will receive these practical tools you can use immediately to advance your organization’s goals:

• receive six issues per year of Sustainable communities magazine, the only magazine focused on planning and community development with sustainability in mind.

• Get access to our unique, 24/7 online Land Use research Library

• Free access to premium content on our web site• A free listing in our membership directory and• A discount on our upcoming Leadership conference on

Affordable Housing preservation & resource efficiency.

Defend Sustainability: Join pSc today

Local governments in the western part of the country are the most likely to have taken concrete actions to make their communi-ties more sustainable, according to a survey

conducted by Arizona State University. Western com-munities are most active in regard to measures related to water, vehicles and lighting, transportation alterna-tives, and transportation improvements.

Local governments in different parts of the country vary in their likelihood of taking sustainability action. to some extent, there is a state effect as well. Lo-cal governments in states that have approved more climate change initiatives are more likely to have higher activity levels—in some cases because they are mandated to do so by the state.

For example, california, which according to a pew center report has the most state initiatives, also has the highest activity level among local governments, with an average adoption rating of 33%, according to the survey, which was conducted by the International city/county management Association. the primary drafter of the survey was James H. Svara of Arizona State University (ASU). Svara is a professor at ASU’s School of public Affairs and director of its center for Urban Innovation. A detailed report on the results ap-peared in the municipal Year book.

the survey asked about 109 different activities divided into 12 major categories. It used the re-sponses to derive an overall measure of a local gov-ernment’s activity level—a total sustainability action


Western states lead in adoption of 10 of 12 types of sustainability activities

14


>>

▲ Sustainable community garden,

Los Altos, CA

▲ The University of California, Riverside

will receive sustainability awards for its new

School of Medicine Research Building and a

student-led community garden initiative.

rating—based on the level of activity in those areas.Dividing the states into two groups according to the num-

ber of initiatives reveals a clear difference in overall adop-tion ratings related to the number of state initiatives:

• twenty-three states with 11 or fewer initiatives: rating of 14%

• twenty-six states with 12 or more initiatives: rating of 20%

the five states with the fewest state initiatives—five or fewer—tend to have low overall adoption ratings, but they vary from Alabama (9%), mississippi (10%), and South Dakota (11%) (ranks of 46, 45, and tied for 41, respectively, among the state overall adoption ratings), to tennessee at 13% (tied for 38) and Nebraska at 16% (tied for 26).

other states that have a high number of state initiatives are generally highly ranked but vary in their overall adop-tion ratings. Among the four states tied for second place below california with 19 state initiatives, the average ratings from the ASU survey are 22% for massachusetts and Wash-ington (tied for rank of 8), 19% for oregon (tied for 16), and 15% for New York (rank of 29).

regions, on the other hand, differentiate activity level to a greater extent. Local governments in the West have the highest average adoption ratings in 10 of the 12 activity areas.

the exceptions are recycling and land conservation, which are used most commonly in the Northeast. by a large

margin, local governments in the West (followed by those in the South) are most active in measures related to water, ve-hicles and lighting, transportation alternatives, and trans-portation improvements; promoting alternative sources of energy, although still uncommon, is also happening more in the West than in other regions.

the most commonly adopted steps to make a place more sustainable are:

residential recycling collectionInternal governmental recyclingconstruction of bike and walking trails recycling household hazardous waste and electronic equipment conducting energy audits and improving the efficiency of office lighting in government buildingspurchasing fuel-efficient vehiclesthe full report, including details on adoption of all 109

activities, can be downloaded from the web site of the partnership for Sustainable communities at www.p4sc.org/ASU-survey.

the Local Government Sustainability policies and pro-grams, 2010 survey was mailed in the summer of 2010 to all city-type governments with a population of 2,500 and above and to all counties with an appointed administrator/manager or elected executive. overall, 25% of local govern-ments responded.

Western states lead in adoption of 10 of 12 types of sustainability activities

▲ Bike to work day.


Greenhouse gas (GHG) reduction and

air quality

baseline GHG emissions of the local gov-

ernment

baseline GHG emissions of the commu-

nity

GHG reduction targets for local govern-

ment operations

GHG reduction targets for businesses

GHG reduction targets for multifamily

residences

GHG reduction targets for single-family

residences

Locally initiated air pollution measures to

reduce dust and particulate matter

plan for tree preservation and planting

Water quality

Actions to conserve the quantity of water

from aquifers

Use of grey-water and/or reclaimed-water

use systems

Sets limits on impervious surfaces on

• private property

Use water price structure to encourage

conservation

other incentives for water conservation

behaviors by city, residents and busi-

nesses

Recycling

Internal program that recycles paper and

plastic and glass in your local govern-

ment

community-wide recycling collection pro-

gram for paper and plastic and glass

for residential properties

community-wide recycling collection pro

gram for paper and plastic and glass

for commercial properties

recycling of household hazardous waste

recycling of household electronic equip-

ment (e-waste)

pay-As-You-throw (pAYt) program with

charges based on the amount of

waste discarded

community-wide collection of organic

material for composting

require minimum of 30% post-consumer

recycled content for everyday office

paper

Local government action to reduce the

use of plastic bags by grocery

or retail stores through restriction

Local government action to reduce the

use of plastic bags by grocery or retail

stores through incentive

restriction on purchase of bottled water

by the local government

Locate recycling containers close to re

fuse containers in public spaces such

as streets and parks

energy use in transportation and exte-

rior lighting

established a fuel efficiency target for

the government fleet of vehicles

Increased the purchase of fuel-efficient

vehicles

purchased hybrid electric vehicles

purchased vehicles that operate on com

pressed natural gas

Installed charging stations for electric

vehicles

Upgraded or retrofitted traffic signals to

improve efficiency

Upgraded or retrofitted streetlights and/

or and other exterior lighting to improve

efficiency

Upgraded or retrofitted facilities to high

er energy efficiency pumps in the water

or sewer systems

Utilize dark sky compliant outdoor light

fixtures

Reducing building energy use

conducted energy audits of government

buildings

Installed energy management systems to

control heating and cooling in buildings

established policy to only purchase en

ergy Star equipment when available

Upgraded or retrofitted facilities to high-

er energy-efficiency office lighting

Upgraded or retrofitted facilities to high-

er energy-efficiency heating and air

conditioning systems

established any energy reduction programs

targeted specifically to assist low-in-

come residents

established any energy reduction programs

targeted specifically to assist small

businesses

energy audit–individual residences

Weatherization–individual residences

Heating/air conditioning upgrades–indi

vidual residences

purchase of energy efficient appliances–

individual residences

energy audit–businesses

Weatherization–bus inesses

Heating/air conditioning upgrades–businesses

purchase of energy efficient appliances–

businesses

How Sustainable is Your community?

If you want to assess the sustainability of your community, get ready to gather a lot of information on a very wide-ranging list

of activities. making a city or county sustainable can involve up to 109 specific sustainability activities divided into 12 major

areas, according to James H. Svara of the School of public Affairs at Arizona State University (ASU).

the list was used for a survey of local governments in 2010. “It is the most comprehensive and well organized list

we have seen,” said Andre Shashaty, president of the partnership for Sustainable communities.

the list is reproduced here to help readers rate their community’s achievements and set an agenda for actions

they might consider taking in the future.

the survey of local governments was conducted by the International city/county management Assoc.


alternative energy generation

Installed solar panels on a government

facility

Installed a geothermal system

Generated electricity through munici-

pal operations such as refuse disposal,

wastewater treat ment, or landfill

Installation of solar equipment–individual

residences

Installation of solar equipment–businesses

transportation alternatives

Local government incentives for local

government employees to take mass

transit to work


government employees to carpool to

work


government employees to walk to work


government employees to bike to

work

If your local government offers employees

parking, do you charge market rates

for employee parking?

Is telework permitted for staff members

in your local government?

Do you have a specific target for the per-

centage of your government workforce

that will telework?

Does your local government use a com-

pressed workweek with offices closed

one day?

transportation improvements

expanded dedicated bike lanes on streets

Added biking and walking trails

Added bike parking facilities

expanded bus routes

requiring sidewalks in new development

Widened sidewalks

require charging stations for electric ve-

hicles

require bike storage facilities

require showers and changing facilities

for employees

operate a commuter rail system (subway or

streetcar)

Have a plan to create or expand the use of

subway or streetcars

established any transportation programs

targeted specifically to assist low-income

residents

building and land use regulations

require all new government construction

projects to be LeeD or energy

require all retrofit government projects

projects to be LeeD or energy Star

certified

permit higher density development near

public transit nodes

permit higher density development where

infrastructure is already in place (utilities

and transportation)

Incentives other than increased density

for new commercial development (in-

cluding multifamily residential) that are

LeeD certified or an equivalent

Incentives other than increased density

for new single-family residential be LeeD

certified or the equivalent

Apply LeeD Neighborhood Design stan-

dards

provide density incentives for “sustain-

able” development (such as energy

efficiency, recycling of materials, land

preservation, stormwater enhancement,

etc.)

provide tax incentives for “sustainable”

development (such as energy efficiency,

recycling of materials, land preservation,

storm water enhancement, etc.)

reduce fees for environmentally friendly

development

Fast track plan reviews and or inspections

for environmentally friendly development

residential zoning codes to permit solar

installations, wind power, or other re

newable energy production

residential zoning codes to permit high

er densities through ancillary dwellings

units or apartments

Zoning codes encourage more mixed-use

development

land conservation and development

rights

An active brownfields, vacant property, or

other program for revitalizing aban

doned or underutilized residential,

commercialor industrial lands and buildings

A land conservation program

A program for the purchase or transfer

of development rights to preserve

open space

A program for the purchase or transfer

of development rights to create more

efficient development

A program for the purchase or transfer of

development rights to preserve

historic property

Social inclusion

provide financial support/incentives for

affordable housing

provide supportive housing to people

with disabilities

provide housing options for the elderly

provide housing within your community

to homeless persons

provide access to information technology

for persons without connection to the

Internet

provide funding for pre-school education

provide after-school programs for children

report on community quality of life indi-

cators, such as education, cultural,-

diversity, and social well-being

local production and green purchasing

Local government action to use locally

produced material or products through

restriction


produced material or products through

incentive


grown produce through restriction


grown produce through incentive

Use of public land for community gardens

Support a local farmers’ market

education program in the local community

dealing with the environment and en-

ergy conservation

Green product purchasing policy in local

government.


ommunities coping with high numbers

of foreclosed homes are expected to

spend all of the $6.9 billion appropriated

by congress to deal with the properties.

residents in neighborhoods hard-hit

by the foreclosure crisis are just beginning to see the effects of the $ 6.9 billion

congress handed over to state and local governments through the U.S. Department of Housing

and Urban Development Neighborhood Stabilization program (NSp).

State and Local Governments Work to Spend $6.9 Billion, Hoping to Stem Neighborhood Deterioration caused by High Foreclosure Rates By Megan E. truxillo

pH

ot

oS

: co

Ur

te

SY c

ItY

oF

pH

oe

NIx

.

pH

ot

o: c

oU

rt

eSY

oF

He

LIp

Ho

to

▲ The Park Lee Apartments in Central Phoenix were renovated with NSP funds,

providing 400 units of affordable rental housing.

▲ The Park Lee Apartments before renovation.

Refloating HousingRefloating Housing

c


>>

to stem declining home values and neighborhood deterioration created by the large number of foreclosed and aban-doned properties sitting vacant, congress awarded the funds for state and local governments to rehabilitate, resell, or redevelop foreclosed homes.

congress first appropriated $4 billion for the NSp program under the Housing and economic recovery Act of 2008. the money went to every U.S. state, territory and selected local governments based on a formula that measured the need for as-sistance. each of the 50 states and puerto rico received a minimum of $19.6 million.

the program received another influx of funding in 2009 under the American re-covery and reinvestment Act, and again in 2010 under the Dodd-Frank Wall Street reform and consumer protection Act. In total, approximately $ 6.9 billion has been appropriated for the program.

NSp funds are expected to impact 100,000 foreclosed, abandoned and blighted properties across the nation, said mercedes márquez, assistant secretary for community planning at the U.S. Depart-ment of Housing and Urban Development. Already, more than 36,000 homes have been or are being purchased or rehabili-tated, reports HUD.

the challenge of Spending an influx of Money

one of the primary challenges facing grantees is spending the money con-gress appropriated. the first round of NSp grants specified that grantees must obligate all of the funds within 18 months and spend the money within four years. the second and third rounds have similar requirements.

For local governments who had never administered a HUD program, meeting the 18-month timeframe was a challenge.

“there was a lot of concern in the first round of grants that cities wouldn’t make the deadline,” said Sarah Greenberg, senior manager of community stabi-lization at NeighborWorks America, a non-profit that provides technical assistance on the NSp program. based on Greenberg’s experience, she estimates it took grant-

ees approximately 12 months to ramp up their system to administer the complex program.

Despite this early concern, however, HUD reports grantees were able to obligate 100 percent of the funds congress appropriated in the first round and have spent 71 percent of the funds.

According to Greenberg, expectations are high that

the goal of NSp is to reduce the number of foreclosure and aban-

doned properties throughout the country. to this end, state and local

grantees may use NSp funds to:

• establish financing mechanisms for purchase and redevelopment

of foreclosed homes and residential properties;

• purchase and rehabilitate homes and residential properties that

are abandoned or foreclosed;

• establish land banks for foreclosed homes;

• Demolish blighted structures; and

• redevelop demolished or vacant properties.

All activities funded by NSp must benefit low- and moderate-

income persons whose income does not exceed 120 percent of area

median income. In addition, at least 25 percent of the funds must be

used for the purchase and redevelopment of homes or multi-family

properties that will be used to house individuals and families whose

incomes are less than 50 percent of area median income.

Homebuyer Assistance programA major component of the NSp program is the Homebuyer Assis-

tance program. In order to prevent neighborhood deterioration from

properties sitting vacant and abandoned, NSp aims to get homeown-

ers into foreclosed and abandoned homes. Specifics vary from city to

city, but the general requirements are similar:

buyers must not presently own any real property or have any out-

standing mortgage obligations;

buyers must attend and complete an eight-hour home buyer edu-

cation class;

buyers must reside in the purchased property as their primary

residence; and

the total household gross income of all adults 18 years of age or

older who will be living in the home must be at or below 120 percent

of the area median income.

In addition to a below market purchase price, qualified buyers re-

ceive a grant or loan to pay for closing and down payment costs. the

money is then forgiven if the homeowners maintain the property as

their primary residence for a specified time, generally 5 to 10 years.

Program Specifics

▲ The Park Lee Apartments before renovation.


grantees will be able to spend all or most of the money by the deadlines.

to do so, grantees will need to increase the current level of spending to meet the 2013 spending deadline for the first round of grants and spend the money from the second and third rounds: according to the most recently released data only 20 percent of funds from the second round of grants has been spent and grantees have just begun to touch money from the third round.

unexpected Renovation costs

on the other hand, high costs to purchase and renovate have left many cities able to do less with the money than they initially planned. “An unpredictable market and com-petition with private investors adds another layer to the problem,” said Greenberg.

At the end of August, Los Angeles mayor Antonio Vil-laraigosa visited the first of seven homes the city pur-chased, renovated and sold to a qualified buyer under the NSp program.

Los Angeles is primarily utilizing its NSp money to purchase and renovate foreclosed homes in areas with the highest foreclosure rates, including South Los Angeles, the eastside and Northeast San Fernando Valley. the Depart-ment estimates it will be able to fix up and sell 1,100 houses and apartment buildings, initially it estimated it would be able to do 1,500.

According to Los Angeles Housing Department man-ager Douglas Guthrie, high renovation costs and the un-expected need to demolish entire buildings is the reason

for the initial overestimate.the city of modesto, ranking consis-

tently as one of the top cities for fore-closure rates, is under fire in part for perceived overspending on renovations. High cost appliances, above average spending on paint jobs and high cost roofing jobs are among the accusations.

In defense of grantees spending on renovation, Ascala Sisk, management consultant for community stabiliza-tion at NeighborWorks, points out that there is always a question about what standard should be used to decide what work is required in a property. but, she added, the NSp program is meant to help homebuyers succeed in home-ownership, and that means rehabbing homes to a condition where homeown-ers won’t incur immediate expenses.

many grantees are also adding energy efficient appliances and heating/cooling systems during renovation to

keep utility costs low for homeowners.Despite some challenges, in the end, Greenberg predicts

the program will be remembered for providing an infusion of money into neighborhoods at a time when it was desperately needed. “the amount of investment they are putting in is equal to what they have done in decades in two years,” she added.

implementation in phoenix

Facing some of the highest foreclosure rates in the country,

the city of phoenix received almost $116 million to imple-

ment its NSp program.

▲ A homebuyer shakes hands with his real estate agent in front of his home

purchased under Phoenix’s NSP Move-In-Ready program.

▲ Landscapers putting in drought resistant landscaping at a

single-family NSP home in Phoenix.

Refloating Housing

>>


the city dealt with many of the

same challenges that other grantees

faced implementing its program:

private competition, high foreclosure

rates and complex federal require-

ments.

“even when we were ready, we

were dealing with a whole real estate

industry that wasn’t ready. buying

foreclosed properties was tough, ev-

ery phase,” said Kate Krietor, deputy

director of community development

for the city of phoenix Neighborhood

Services Department.

Unlike many other grantees, which

have focused primarily on selling

move-in ready homes, phoenix split

its efforts between three different

programs:

• Homeownership assistance

Program: buyers can purchase

any foreclosed home within the

city of phoenix, receive credit

counseling and homebuyer education plus $15,000 in

closing cost and down payment assistance.

• move-in Ready (miR) Program: Newly renovated

foreclosed homes for sale by NSp developer partners;

improvements bring house up to housing quality

standards and feature energy-efficient systems. buy-

ers receive $15,000 in closing cost and down payment

assistance.

• Home improvement Program (HiP): buyers can

purchase a foreclosed home in need of repair within

program specific zip codes and will receive an ad-

ditional incentive of up to $40,000 in rehabilitation

funds depending on the condition of the foreclosed

home, to use in addition to the $15,000 for purchase

assistance.

Krietor attributes much of phoenix’s success with NSp to

the breadth of its program. “We didn’t know we were run-

ning a broader program than most cities until we were into

it. but it has been a blessing to be able to adapt to market

changes, opportunities and partner capacity,” she said.

Like other grantees, the phoenix NSp program faced

higher than expected renovation costs. However, said Jesse

Garcia, project manager for community development, city

of phoenix Neighborhood Services, these costs are nec-

essary for the NSp program to have a real impact at the

neighborhood level.

“costs have been higher than budgeted, “said Garcia.

“but we are going into target neighborhoods that weren’t

desirable even at the peak and trying to make the neighbor-

hood relevant again. more relevance means increased cost.”

Garcia also attributes the higher than expected costs to

the age and poor shape of many of the homes and complex-

es. there are “obsolete floor plans, unpermitted structures

and health and safety issues,” Garcia added.

In a city with hot weather year round, weatherization,

energy efficient cooling systems and low flow water fixtures

are a high priority for all renovations.

building on smart growth efforts already taking place

in phoenix, the NSp program targeted areas that provide

transportation options for residents. “All of our target areas

are strategically around transportation corridors and where

job centers are,” said Krietor, city of phoenix Neighborhood

Services Department.

phoenix boasts the following outcomes to date:

• 185 homebuyers have purchased foreclosed houses to

use as their primary residence, using NSp homeowner-

ship purchase assistance loans.

• 132 foreclosed homes have been purchased by NSp

developer partners for rehab and resale to program eli-

gible buyers. 24 homes have closed, 22 under contract.

• 6 multi-family properties have been purchased to re-

habilitated and provide 988 affordable rental units for

households at or below 50 percent of the area median

income.

• 20 blighted properties – including the blighted, 52-unit

multi-family Sunset manor complex (a property on the

city’s slum list for some time)– have been purchased for

demolition and redevelopment to revitalize and stabi-

lize target neighborhoods. ❧

▲ The Sunset Manor apartment complex before demolition. The City of Phoenix

purchased the crime-ridden Sunset Manor complex with NSP dollars, to ensure that

the blighted structure was demolished.


Refloating Housing

the highest rates of foreclosures and serious delin-

quencies on home mortgages are concentrated in

metro areas in two states, california and Florida,

plus a handful of metro areas outsides those states, most

notably Las Vegas.

but when you look at the increase in the rate of foreclo-

sures and serious delinquencies from march 2010 to march

2011, the fastest increases are occurring in a wide range of

areas from maine to Seattle, Wash. most of the metros with

the largest increases are in New York and New Jersey. the

Atlantic city, N.J., area tops the list with an increase from

14% in march 2010 to 15.9% in 2011. It is followed closely

by Vineland-millville-bridgeton, N.J., Kingston, N.Y. and

Lewiston-Auburn, maine. the Seattle metro area saw an

increase from 7.7% to 8.4%.

the list of the 25 metro areas with the largest increases

does not include a single city in california or Florida.

the serious delinquency information is an important

indication of current conditions in the housing market, but

now there’s also a way to project future trends. the source

of the data, Foreclosure-response.org, offers tools to help

assess the level of foreclosure risk in a community. one tool

is the site’s Foreclosure risk Scores — a composite measure

combining data on subprime lending, foreclosures, and

mortgage delinquencies. It also provides access to HmDA

data on high-cost loans.

Foreclosure-response.org is an online guide to

foreclosure prevention and neighborhood stabiliza-

tion developed and maintained by the center for

Housing policy, the Local Initiatives Support coali-

tion (LISc) and the Urban Institute.

LISc’s Foreclosure risk Scores identify the

relative risk of foreclosure and foreclosure-related

abandonment for each ZIp code within a state

or within a metropolitan area. Data for the three

individual components included in the scores

(subprime lending, mortgage delinquencies, and

foreclosures) may also be viewed separately. Data

is also available at the level of zip codes and census

tracts. Go to www.forecloseure-response.org/nsp.

htm.

Delinquencies rise againon a national basis, overall mortgage delinquen-

cies increased slightly between the first and second

quarters of this year, according to data from the

mortgage bankers Association (mbA). “it is clear

that the downward trend we saw through most of 2010 has

stopped. mortgage delinquencies are no longer improving

and are now showing some signs of worsening,” said Jay

brinkmann, mbA’s chief economist.

the delinquency rate for mortgage loans on one-to-

four-unit residential properties increased to a seasonally

Foreclosures accelerate in mid-Atlantic, NortheastData source tracks foreclosure rates,Helps forecast future loan troubles

▲ A foreclosure in Atlantic City, New Jersey.


TOP 25 METROPOLITAN AREAS BY GROWTH IN SERIOUS DELINQUENCY RATE, MARCH 2010 TO MARCH 2011

Rank Metropolitan Statistical Area Serious Delinquency Rate*

Year over Year Pct. Point Change

March 2010 March 2011

1 Atlantic City-Hammonton, NJ 1.9 14.0% 15.9%

2 Vineland-Millville-Bridgeton, NJ 1.7 18.0% 19.8%

3 Kingston, NY 1.5 12.3% 13.8%

4 Lewiston-Auburn, ME 1.4 9.7% 11.0%

5 Poughkeepsie-Newburgh-Middletown, NY 1.1 12.0% 13.1%

6 Decatur, IL 1.1 8.3% 9.4%

7 Elmira, NY 1.1 8.4% 9.4%

8 Trenton-Ewing, NJ 1.0 9.9% 10.8%

9 Lawton, OK 0.9 6.7% 7.7%

10 Rockford, IL 0.9 12.7% 13.6%

11 Bremerton-Silverdale, WA 0.8 6.2% 7.0%

12 Pittsfield, MA 0.8 9.0% 9.8%

13 Champaign-Urbana, IL 0.7 5.4% 6.2%

14 Seattle-Tacoma-Bellevue, WA 0.6 7.7% 8.4%

15 Ocean City, NJ 0.6 7.2% 7.9%

16 Eugene-Springfield, OR 0.6 5.7% 6.3%

17 Alexandria, LA 0.6 10.4% 11.0%

18 Binghamton, NY 0.6 8.0% 8.6%

19 Anderson, IN 0.6 10.8% 11.4%

20 Bangor, ME 0.6 8.8% 9.4%

21 Glens Falls, NY 0.6 11.0% 11.5%

22 Albany-Schenectady-Troy, NY 0.6 9.0% 9.6%

23 Wichita Falls, TX 0.5 7.3% 7.8%

24 Springfield, OH 0.5 10.4% 10.9%

25 Pine Bluff, AR 0.5 11.8% 12.3%

The table ranks the 25 U.S. metropolitan areas with the largest growth in the serious delinquency rate between March 2010

and March 2011. The serious delinquency rates in March 2010 and March 2011 are also shown. Source: Analysis of LPS Applied

Analytics data by Local Initiatives Support Corporation, tabulated by the Urban Institute>>


Refloating Housing

TOP 25 METROPOLITAN AREAS BY SERIOUS DELINQUENCY RATE, MARCH 2011

Rank Metropolitan Statistical AreaSerious Delinquency

Rate*90+ Days Delin-quency Rate

Foreclosure Rate

1 Miami-Fort Lauderdale-Pompano Beach, FL 23.6% 5.4% 18.2%

2 Las Vegas-Paradise, NV 21.9% 8.8% 13.1%

3 Palm Coast, FL 21.2% 4.4% 16.8%

4 Port St. Lucie, FL 21.1% 5.2% 15.9%

5 Cape Coral-Fort Myers, FL 20.8% 5.8% 15.1%

6 Orlando-Kissimmee, FL 20.3% 5.5% 14.8%

7 Vineland-Millville-Bridgeton, NJ 19.8% 6.2% 13.6%

8 Punta Gorda, FL 18.9% 4.7% 14.2%

9 Tampa-St. Petersburg-Clearwater, FL 18.9% 4.5% 14.4%

10 Lakeland-Winter Haven, FL 18.7% 5.3% 13.4%

11 Bradenton-Sarasota-Venice, FL 18.1% 4.0% 14.1%

12 Deltona-Daytona Beach-Ormond Beach, FL 17.9% 4.8% 13.1%

13 Naples-Marco Island, FL 16.8% 3.9% 12.9%

14 Ocala, FL 16.6% 4.4% 12.2%

15 Sebastian-Vero Beach, FL 16.4% 3.8% 12.6%

16 Palm Bay-Melbourne-Titusville, FL 15.9% 3.9% 12.0%

17 Atlantic City-Hammonton, NJ 15.9% 4.6% 11.3%

18 Jacksonville, FL 15.6% 4.8% 10.9%

19 Kankakee-Bradley, IL 15.2% 5.3% 9.9%

20 El Centro, CA 15.0% 7.9% 7.1%

21 Riverside-San Bernardino-Ontario, CA 14.6% 7.7% 6.8%

22 Youngstown-Warren-Boardman, OH-PA 14.2% 4.5% 9.7%

23 Memphis, TN-MS-AR 14.0% 6.3% 7.7%

24 Stockton, CA 13.8% 7.3% 6.5%

25 Kingston, NY 13.8% 5.6% 8.3%

The table ranks the 25 U.S. metropolitan areas with the highest serious delinquency rates in March 2011. Serious delinquency rate

is defined as the share of all first-lien mortgages in foreclosure or that were delinquent for more than 90 days. It also shows the

data for each type of loan separately. Source: Analysis of LPS Applied Analytics data by Local Initiatives Support Corporation,

tabulated by the Urban Institute.

>>


TOP 25 METROPOLITAN AREAS BY SERIOUS DELINQUENCY RATE, MARCH 2011

Rank Metropolitan Statistical AreaSerious Delinquency

Rate*90+ Days Delin-quency Rate

Foreclosure Rate

1 Miami-Fort Lauderdale-Pompano Beach, FL 23.6% 5.4% 18.2%

2 Las Vegas-Paradise, NV 21.9% 8.8% 13.1%

3 Palm Coast, FL 21.2% 4.4% 16.8%

4 Port St. Lucie, FL 21.1% 5.2% 15.9%

5 Cape Coral-Fort Myers, FL 20.8% 5.8% 15.1%

6 Orlando-Kissimmee, FL 20.3% 5.5% 14.8%

7 Vineland-Millville-Bridgeton, NJ 19.8% 6.2% 13.6%

8 Punta Gorda, FL 18.9% 4.7% 14.2%

9 Tampa-St. Petersburg-Clearwater, FL 18.9% 4.5% 14.4%

10 Lakeland-Winter Haven, FL 18.7% 5.3% 13.4%

11 Bradenton-Sarasota-Venice, FL 18.1% 4.0% 14.1%

12 Deltona-Daytona Beach-Ormond Beach, FL 17.9% 4.8% 13.1%

13 Naples-Marco Island, FL 16.8% 3.9% 12.9%

14 Ocala, FL 16.6% 4.4% 12.2%

15 Sebastian-Vero Beach, FL 16.4% 3.8% 12.6%

16 Palm Bay-Melbourne-Titusville, FL 15.9% 3.9% 12.0%

17 Atlantic City-Hammonton, NJ 15.9% 4.6% 11.3%

18 Jacksonville, FL 15.6% 4.8% 10.9%

19 Kankakee-Bradley, IL 15.2% 5.3% 9.9%

20 El Centro, CA 15.0% 7.9% 7.1%

21 Riverside-San Bernardino-Ontario, CA 14.6% 7.7% 6.8%

22 Youngstown-Warren-Boardman, OH-PA 14.2% 4.5% 9.7%

23 Memphis, TN-MS-AR 14.0% 6.3% 7.7%

24 Stockton, CA 13.8% 7.3% 6.5%

25 Kingston, NY 13.8% 5.6% 8.3%

adjusted rate of 8.44 percent of all loans outstanding as

of the end of the second quarter of 2011, an increase of 12

basis points from the first quarter of 2011, and a decrease of

141 basis points from one year ago, according to the mbA’s

National Delinquency Survey.

the combined percentage of loans in foreclosure or at

least one payment past due was 12.54 percent on a non-

seasonally adjusted basis, a 23 basis point increase from last

quarter, but 143 basis points lower than a year ago.

However, mbA disagrees with the contention that there

is a growing backlog of loans that are likely to be foreclosed

on soon. “the percentage of loans 90 days or more past

due continues to fall along with the foreclosure rate, and is

at the lowest point since the beginning of 2009. Were there

a growing backlog, we would expect to see the 90-plus day

delinquent category increasing,” the mbA said.

In other words, mbA is suggesting that the increase in

the overall delinquency rate is an indicator of temporary

problems due to the economic slump and will not result in a

surge in foreclosures. of course, there is no way to predict

if loans that are only slightly delinquent now will be brought

current or end up in foreclosure down the road.

“Looking across the nation, foreclosures continued to

be highly concentrated in just a few states, with five states

accounting for 52 percent of the foreclosure inventory in the

second quarter,” according to mbA. the single biggest factor

determining whether or not a state has a large backlog of

foreclosures is whether the state has a judicial foreclosure

system, meaning whether or not a foreclosure needs to go

through the courts, mbA said. of the 9 states whose per-

centage of loans in foreclosure is higher than the national

average, all but one has a judicial system of foreclosure,

mbA said.

mbA explained that the requirement for court proceed-

ings slows the foreclosure process down dramatically due to

the limited capacity of local court systems to hear cases.

mbA said it’s important to distinguish between the eco-

nomic impediments to resolution and the legal impediments

to resolution of delinquent mortgages in the discussion

about how to get the housing market back on track. ❧

Offices throughout California • visit www.bbklaw.com

Your Best legal resource for renewable energy solutions

EnvironmEntal ComplianCE • WatEr rights

pErmitting & land UsE • EnErgy ContraCts • FinanCing & invEstmEnt

SuStainable CommunitieS • September/october 201126Partnership forSUSTAINABLE COMMUNITIES®

Who Should Attend• Affordable housing

owners & asset managers

• Real estate consultants, lawyers, accountants• Financing providers• Energy and water efficiency experts• Utility company energy

efficiency staff• Renewable energy

experts• Property managers• Rehab contractors• Government energy

agency staff• Utility regulators

If you are involved with preservation and rehab of existing affordable housing, water and energy efficiency of older buildings, or alternative energy generation, then you should know about a groundbreaking new conference…

THE HOUSING PRESERVATION LEADERSHIP CONFERENCE:New tools for improving efficiency and maintaining affordability

Plan now to attend the first and only national conference that brings together the top experts and policy leaders on the overlapping challenges of affordable housing preserva-tion, making existing buildings more resource-efficient, and reducing Greenhouse Gas emissions. Join housing owners and dealmakers, energy and water efficiency experts, utility com-pany execs and energy program staff from across the country for in-depth coverage of key issues and trends. Sponsored by the Partnership for Sustainable Communities, this confer-ence offers a uniquely comprehensive program that is not available anywhere else.

Phot

o co

urte

sy o

f M

cCor

mac

k Bar

on S

alaz

ar a

nd

Sun

whe

el E

nerg

y Pa

rtne

rs.

All

righ

ts r

eser

ved.

You will learn about new opportunities and changing policies and programs that are critical to your mission and your financial success in challenging times, including:• Learn about fast-changing financial dynamics and technology• Master new methods of financing projects• Meet financing sources and experts• Help set policy direction and create new alliances for public policy & industry practice

Conference Content at a GlanceSeveral housing conferences have a session or two on energy retrofits or preservation, but this event goes beyond a quick overview. This is the only national program that goes into detail on the many changes in programs and policy initiatives dealing with existing afford-able housing. Attendees at the conference will benefit from three subject tracks of moderated panel discussions, great speakers, lively interaction and plenty of time for discussion on: • Preservation and recapitalization of at-risk affordable housing• Making and keeping affordable housing more energy and water efficient• Alternative energy generation for existing properties

The conference will also explore critical policy questions for the future at “New Connections, New Opportunities: The Affordability & Energy Efficiency Policy Roundtable”. This will be a high level discussion of federal and state policy issues in an attempt to identify best prac-tices, bring energy and housing folks together and set an agenda for further discussion, research and advocacy.

The Leadership Conference is sponsored by Partnership for Sustainable Communities, a nonprofit organization that works nationally to provide information and research on affordable housing and community develop-ment. The conference is chaired by Andre Shashaty, P4SC’s president. Shashaty is a writer, editor and publisher who has focused on housing and community development for 30 years. He was the founder and long-time editor and publisher of Affordable Housing Finance and Apart-ment Finance Today magazines and chaired their related conferences.

Conference Sponsors:

Reznick Groupis a top 20 nationalaccounting, tax and

business advisory firmwith exceptional depth ofknowledge in real estateand tax credit services.www.reznickgroup.com

Enterprise

Low-Income Investment Fund

National Housing Trust

On-Site Insight

Silicon Valley Bank

Stewards of Affordable Housing for the Future (SAHF)


ADAPT, SURVIVE & PROSPER: Tap the new momentum for preservation and resource efficiency

Partnership forSUSTAINABLE COMMUNITIES®

Arrange sponsorship for your �rm today!

Don’t miss this event.To be notified when the dates and location are set, and to receive full details on the

content, please send your contact

information to Carol Yee [email protected]. Or call 415-453-2100 ext. 302

• After ARRA: Coping with the loss of federal stimulus funds for energy retro fits, and evaluating the lessons learned from the infusion of funds. • Positive steps for preservation at HUD, including rule and handbook revisions to create incentives and remove obstacles.• Strategic advantages of preservation as a business strategy in a difficult develop ment climate• Financing preservation with FHA programs -- and how program rule changes are helping.• Making the numbers work for tax-exempt bonds and 4% tax credits for preservation• Recapitalizing and rehabbing older tax credit projects• Tenants’ role & rights: Managing reloca tion, avoiding displacement and enlist occupants in achieving your goals• Solving the data shortage and winning the battle to get lenders to underwrite energy savings.

These are just a few of the many topics that will be covered at our plenary and breakout sessions or our policy roundtable discussion:

• Aligning the benefits of efficiency: Utility allowances in subsidy programs and how they need to change • Best practices among state energy department programs and utility company programs; Why some states are going beyond rebates on utility bills • Finding standards for retrofits that achieve the right outcomes without breaking the bank• Green asset management: Using EPA’s Portfolio Manager and other tools to track and manage energy and water consump tion across a portfolio.• Public housing’s progress, and results from and potential of energy service companies and performance-based contracting• Financing options for alternative energy (Basic Introductory and Advanced sessions)• Solar Syndications: Using the new middlemen to sell energy and tax benefits

For information on becoming a sponsor contact:

Wendy Chaney: 216-906-7861, email [email protected]











Phot

o co

urte

sy o

f M

cCor

mac

k Bar

on S

alaz

ar a

nd

Sun

whe

el E

nerg

y Pa

rtne

rs.

All

righ

ts r

eser

ved.








Enterprise



On-Site Insight

Silicon Valley Bank














September/october 2011 • SuStainable CommunitieS 27Partnership forSUSTAINABLE COMMUNITIES®










Phot

o co

urte

sy o

f M

cCor

mac

k Bar

on S

alaz

ar a

nd

Sun

whe

el E

nerg

y Pa

rtne

rs.

All

righ

ts r

eser

ved.








Enterprise



On-Site Insight

Silicon Valley Bank
























Phot

o co

urte

sy o

f M

cCor

mac

k Bar

on S

alaz

ar a

nd

Sun

whe

el E

nerg

y Pa

rtne

rs.

All

righ

ts r

eser

ved.








Enterprise



On-Site Insight

Silicon Valley Bank















In terms of community sustainability, utilization of existing buildings is a far better bet than new construction. they are already located in developed areas near transportation and utility services. No new infrastructure development is required.

much of the federally assisted rental housing stock is located in neighborhoods with access to affordable trans-portation options. the National Housing trust said that 100,000 assisted units in 8 cities are within a half mile of existing or proposed rail stations.

reusing existing buildings is also far more resource-efficient than building new buildings, no matter how much “green” technology new projects might include or how many high-priced certifications they may obtain.

renovating an existing building consumes less energy than demolition and new construction. exist-ing buildings have embodied energy, that is, the energy required to derive, deliver, and install the raw materials

it takes to construct a building. the embodied energy lost when a building is demolished

is not easily replaced. It takes 65 years for a new energy efficient building to save the energy lost when demolishing an existing building, according to information provided by the National Housing trust, a national non-profit engaged in housing preservation through public policy advocacy, real estate development, and lending. (http://www.nhtinc.org/)

preserving and reusing all kinds of real estate makes good sense for communities concerned about sustainability from an environmental perspective. but for many develop-ers and governments, the highest priority goes to preserv-ing affordable housing. this is because it not only embodies the energy it took to build, but represents a substantial investment of taxpayer dollars in most cases. Affordable housing is also a critical resource that is not likely to be replaced as it is lost.

energy efficiency upgrades in affordable rental housing

Reuse of older buildings gets new priority;

Affordable housing preservation promoted

preservation and reuse of existing real estate assets, particularly rental

housing, has taken a back seat to new development in the movement to-

ward sustainability and social equity. but with new development activity

likely to remain at low levels for years to come, managing growth is fast becoming

less important than preserving existing assets in our communities.

&Rehab, PreservationRetrofits

By Andre Shashaty


>>

AFTER: The project looks completely different

after rehab, with a new entryway and extensive

work on common areas, systems and unit

interiors. It has 199 one-bedroom apartments

▲ BEFORE: Inglewood Meadows before

rehab was drab and rundown and at risk of

conversion to market-rate rental use due to

the approaching expiration of its federal rental

assistance contract

are a cost- effective approach to lower operating expenses, maintain affordability for low-income households, reduce carbon emissions, and create healthier, more comfortable living environments for low-income families.

HuD plays critical role the U.S. Department of Housing and Urban Develop-ment (HUD) oversees more than 22,000 privately owned multifamily properties, and more than 1.4 million assisted housing units. these homes were originally financed with FHA-insured or direct loans and many are supported with Section 8 or other rental assistance contracts.

HUD is actively working with private sector owners and investors to preserve the affordability and long-term vi-ability of multifamily housing. many HUD properties were financed 30 to 40 years ago. Housing subsidy contracts are expiring on thousands of privately owned multifamily properties with federally insured mortgages. the expiration of their contracts mean they are in danger of being con-

verted to market-rate use. they are also threatened by physical deterioration and obsolescence.

the california Housing partnership focuses on preservation of assisted housing in the Golden State. It says there are 150,000 apartment properties in the state that are subsidized and regulated by HUD, 18,700 subsidized by the US De-partment of Agriculture (USDA), 300,000

with Housing choice Vouchers funded by HUD through local housing authorities, and 44,000 public housing units, and 204,000 units that have received allocations of Low Income Housing tax credits (LIHtc).

the partnership estimates that 68,000 of these federally subsidized affordable apartments in california are at-risk of conversion to market rate in the next five years, with an ad-ditional 74,000 becoming at-risk in the following 15 years.

HUD is making important progress toward streamlining rules governing its programs to facilitate the preservation of more projects. At a recent conference on preserving at-risk housing, margaret Salazar, Senior Housing program Specialist from the office of multifamily Housing programs at HUD, outlined a series of administrative steps the agency was taking to remove roadblocks to preservation. She said HUD was planning rule changes to:

• Allow certain nonprofit owners of HUD-assisted proper-ties to receive modest distributions of cash from the properties they own.

Rehab, Preservation

▲


• Authorize certain nonprofit owners to receive mod-est proceeds from the sale of a property to a qualified preservation purchaser.

• Allow certain project owners to access residual receipts for project improvements including energy efficiency.

• make it easier to use Federal Housing Administration (FHA) mortgage insurance combined with Low Income Housing tax credits (LIHtc).

• make it easier for owners to use the LIHtc for the acquisition and rehab of older assisted housing.

utility programs hold promisethe preservation of federally assisted affordable housing faces significant hurdles, too. older projects often need a great deal of subsidy to allow them to be brought up to code and to ensure that they remain affordable to low-income people.

In the ongoing political struggle over the federal budget, funding for preservation is under very intense scrutiny. When congress returns to the task of how to cut spending this fall, many current housing assistance pro-grams will face cuts or elimination.

the biggest item in the HUD budget is money to fund Sec. 8 rental assistance contracts. the money has survived political battles in the past, but in today’s budget cutting frenzy, no one knows what might end up on the chopping block.

meanwhile, many state governments have already cut back on the programs they offer for affordable housing development and preserva-tion.

For preservation of projects that are in reason-able condition and do not require a deep subsidy to be affordable, there is good financial news. there are programs popping up in many states that rely on a funding source other than govern-ment: utility companies.

A majority of states implement utility-funded energy efficiency programs, often paid for through charges included in customer utility rates. these programs are a significant and grow-ing source of resources for residential energy retrofits that remain largely untapped by the

multifamily sector. Utility energy efficiency program budgets have

significantly increased since 2006 and could reach $12 billion nationwide by 2020.

If multifamily energy retrofits are to occur at scale, utili-ties will need to develop energy efficiency programs that address the unique nature of the multifamily sector, accord-

▲ AFTER: The $6.15 million spent on rehabilitating the project made it virtually

new except for the walls. Work included replacement of all building systems, cool

roof, low-e windows, boiler, chiller, HVAC, and all new Energy Star Appliances in all

units.

▲ BEFORE: Regency Towers, with 104 units, was built in 1997, and was

one of three Sec. 8 seniors housing projects acquired and rehabbed by

Thomas Safran & Associates

>>

>>

Rehab, Preservation & Retrofits


CWCAPITAL.COM

F a n n i e M a e – F r e d d i e M a c – F H ABridge – Conduit – Mezzanine – HUD – Fannie Mae – Freddie Mac

momentum

Moving forward. G e t t i n g i t d o n e .

For more information or to discuss your specific financing needs, contact:ELLEN KANTROWITZ | MANAGING DIRECTOR | FHA | 781.707.9309 | [email protected]

DONALD KING | MANAGING DIRECTOR | FANNIE MAE/FREDDIE MAC | 781.707.9494 | [email protected]

THANK YOU TO OUR CLIENTS & PARTNERS

$34,000,000Twenty One 01 on MarketDenver, COFreddie MacRefinance

$26,750,000Montierra ApartmentsOntario, CAFannie Mae DUSAcquisition

$19,975,000Springwater CrossingGresham, ORFHA 223(f)Refinance

$15,775,300The Metropolitan of BaltimoreBaltimore, MDFHA 223(a)(7)Refinance

$11,370,000Crossings at HillcroftHouston, TXFannie Mae DUSAcquisition

$10,470,000Crosswinds ApartmentsSt. Petersburg, FLFreddie MacAcquisition


▲ Meridian Manor is a 109 unit senior housing apartment building located in

the heart of Seattle’s Northgate neighborhood that was at risk of conversion to

market-rate rentals. The Seattle-based nonprofit developer Housing Resources

Group teamed up with Union Bank, the City of Seattle, HUD and other public

sector sources to acquire the property, renovate it, and provide long term

financing to preserve the affordability of these senior apartments.

>> ing to the National Housing trust. While nationwide data is unavailable, most utility-funded programs typically focus first on single-family and small rental properties rather than multifamily properties (5 units or more), the trust said.

In many states, utilities are partnering with state housing agencies and affordable housing owners to develop success-ful multifamily energy efficiency retrofit programs.

In california, affordable housing owners reacted en-thusiastically to the multifamily Affordable Solar Housing program (mASH), which provides financial assistance for

the installation of solar photovoltaic generating systems on low-income multifamily housing. mASH has two tracks. track 1 incentives provide fixed, upfront capacity-based incentives for solar pV systems that offset common area and tenant loads. the mASH track 1 incentive rates are $3.30 to $4.00 per watt. track 2 offers higher incentives to applicants who provide quantifiable “direct tenant benefits” (i.e. any operating costs savings from solar that are shared with their tenants).

the public Utilities commission oversees the utility-run program. It says 271 mASH track 1 projects are currently reserved, with capacity of more than 16.7 megawatts. other eligible projects are on waiting lists and will only be funded if a reserved project drops out. What’s old is new again

preserving older assisted housing is one of the most effec-tive ways to turn around a neighborhood and make a com-munity stronger and more energy efficient.

Just ask the mayor and the citizens of Inglewood, cali-fornia.

that’s the town most people never notice as they fly in or out of Los Angeles International Airport, which is located there. However, it’s home to 116,000 people. And several hundred of them lived in pretty rundown assisted housing

until thomas Safran & Associates (tSA) came along.

tSA is a developer and owner of afford-able housing. It owns and manages over 3,300 units of affordable rental housing in california.

tSA bought 8 older, federally-subsidized buildings in the LA area four years ago, two of which are located in Inglewood. they are Inglewood meadows with 199 units and regent plaza, with 104 units.

With great attention to quality, tSA did extensive rehab on both buildings, includ-ing new entries and high-quality landscap-ing that makes them look like new.

When the mayor of the city saw the good work tSA did on those properties, he asked the firm to buy and preserve a third Sec. 8 seniors housing project that was located across the street called regency towers. to help cover the cost of rehab, the city put up a $5 million loan on advanta-geous terms.

tSA is known for its focus on high quality design, provision of amenities for residents and very good management and tenant relations. “While building and man-aging profitable housing for our investors, our highest goal is to enhance the world

in which we live and to enrich the lives of the people who reside in our buildings,” said thomas Safran, the founder and principal.

Several of the properties tSA rehabbed were subject to Sec. 8 rental subsidy contracts from the federal government. tSA rehabbed all eight using an equity investment from Union bank, and debt financing from citibank. the five project-based Sec 8 contracts were expiring, and tSA got them renewed for 20 years, guaranteeing a stream of rental income.

residents pay 30% of income for rent. the maximum income to be eligible for either project for a one-person household is $35,880.

critical to the work of tSA and other rehabbers is the availability of federal housing tax credits. the credit

—coNtiNuED oN pAGE 37



owners of multifamily housing might feel like an unin-vited guest crashing the residential energy retrofit-ting party. billions of dollars in federal money is avail-

able for retrofitting housing, but in many states and cities, most or all the money goes to single-family homes.

bucking that trend is New York State, where a concerted effort is being made to steer a significant portion of Weath-erization Assistance program (WAp) funds to apartment buildings.

New York State Homes and community renewal (Hcr) is using WAp to help apartment owners save energy while also creating jobs for area businesses and a better quality of life for apartment residents who are predominantly low and moderate wage earners.

It is working with owners of affordable housing of all sizes, both subsidized and market-rate. one of the biggest participants is the community preservation corp. (cpc),

>>

new York invites multifamily properties to weatherization program participation

▲ The Civill Senior Housing in Coeymans, NY

which was awarded a $5 million grant to provide energy-sav-ing upgrades to over 1,200 affordable apartments in upstate New York.

It helps that the statewide administrator of WAp funds is the New York State Homes and community renewal (Hcr), said Duncan barrett, chief operating officer of omni Housing Development LLc and chairman of the New York State As-sociation for Affordable Housing (NYSAFAH), the trade asso-ciation for New York’s affordable housing industry statewide.

Hcr is also the tax credit allocating agency, a statewide pHA and the regulator of much of the state’s older afford-able multifamily stock, including an extensive portfolio of state-financed deals.

this helps compensate for the fact that a large propor-tion of local WAp subgrantees in New York and other states prefer to focus on single-family homes and avoid the com-plexity of multifamily.

one of the projects omni has retrofit using WAp money is the civill Senior Housing in coeymans, NY (pictured on this page). It consists of a single attached building with a three-story section built in 1873 (as a school) and a two-story section built in 1930 (as a gym). It was converted into 28 apartment units using the low-income housing tax credit program.

the project received $129,000 in WAp and about $20,000 in owner funding from the project’s replace-ment reserve account. the retrofit work included replacement of the boiler, hot water heater and light fixtures, new refrigerators and some infiltration work.

barrett said the process for obtain-ing the WAp grant and bidding out the retrofit work was cumbersome. However the efficiency measures WAp financed are projected to reduce oper-ating utility costs by $10,000 per year.


>>

chicago–Government and busi-

ness leaders here have long

understood the importance

of preserving market-rate affordable

apartments. Now they are taking

a new track in that effort, with a

program to make such properties

more energy efficient that could be

a great model for other cities and

the nation.

Launched in January 2008,

chicagoland energy Savers resulted

in completion of retrofits on 5,500

apartment units as of August 1,

2011. the community Investment

corp and cNt energy, a division

of the center for Neighborhood

technology, launched the energy

Savers program to help owners of

multifamily buildings control one of

the largest operating costs in their

buildings: utilities.

projects chosen to participate

receive free energy audits from

cNt and assistance with designing

energy retrofits. So far, the aver-

age annual savings on utility bills

is 30%.

originally funded by $3.25 million

from cIc, the John D. and catherine t.

macArthur Foundation and the Grand

Victoria Foundation, energy Savers

provides low-cost fixed-rate subordinate

financing through cIc to fund the retrofits

when needed.

Since the program began, 15,500

apartment units have been audited and

5,500 units retrofitted (numbers are as of

August 1, 2011). of the units retrofitted, ap-

proximately 1,500 units involving 64 loans

or grants totaling $4.1 million have been

processed through the cIc energy Savers

Fund; the remainder were self-financed

by owners. None of the cIc loans are in

default.

the average expenditure for energy

improvements has been $2,500 per unit.

For a typical 24-unit building, the annual

Energy Savers program increases Resources, Broadens Scope

▲ The heating bills for The Broadmoor, a 1922-vintage building located in the

North Side Chicago neighborhood of Rogers Park, are now 38% lower than before

its retrofit. “I think Energy Savers is a great incentive for people to upgrade their

buildings to a more efficient system, like we did at The Broadmoor, that otherwise

would not be affordable any other way,” said Louis Sopcic.

John Brauc owns this 26-unit

apartment building which provides

quality, affordable and energy-efficient

units at a desirable address in the

Chicago neighborhood of Logan Square.

Energy-related rehab work consisted

of new windows, high-efficiency hot

water tanks, six furnaces, water-

saving shower heads, thermal exterior

doors, and high-efficiency hallway light

fixtures and bulbs.


▲


—coNtiNuED oN pAGE 34

savings add up to $10,000 per year.

recently the capacity of the program increased in two

ways. First, its geographic reach now includes not just the

cIc northern Illinois service area of cook, Dupage, Lake,

mcHenry, Kane and Will counties, but also Kendall county

and the city of rockford; and the loan capital in the cIc’s

energy Savers Fund has increased by $7.5 million for the

next three years under an agreement with the macArthur

Foundation, chicago Department of environment, chicago

metropolitan Agency for planning, and pNc bank.

basic terms of the financing are as follows:

• term: 7 years, 7- to 15-year amortization

• Loan to Value ratio: Up to 90%, including first

mortgage

• Loan to cost ratio: Up to 100% of costs

• minimum Debt Service coverage: 1.15 on total debt

• Interest rate: 3% fixed

• Loan Fee: 3%

• construction interest: prime + 3%

cIc has continued making loans at a time when many

other banks have drastically reduced lending. In some cases,

cIc has also taken over the first mortgage, according to a

Do you offer products or services for energy retrofits, green management?

Reach an audience of building owners, asset managers, architects, engi-neers and property managers involved in making existing buildings more energy efficient, and managing them for maximum performance…

Communicate your marketing message to thousands of potential custom-ers in an attention-getting publication…

Introducing EFFICIENT BUILDINGS TODAY. This is the only magazine focused exclusively on the financial and business considerations of rehabbing and upgrading existing income-producing buildings for improved energy efficiency.

EBT does not cover home energy efficien-cy. It is written and edited for owners and managers of investment property and the professionals who advise them.

It covers rehab and preservation issues for affordable housing, market-rate housing, mixed-use, office, and retail properties.

To learn more or place your advertising, contact: Wendy Chaney at 216-906-7861 (Eastern time zone) Andre Shashaty at 415-453-2100 x 303 (Pacific zone)

Who should advertise in

EFFICIENT BUILDINGS TODAY?

This is the perfect editorial environ-ment for any company selling ser-vices or products intended to make buildings more efficient.

High-quality, original editorial at-tracts readership from the execu-tives who are buying products and services related to:

• Energy efficiency

• Water conservation

• Indoor air quality

• Renewable energy generation

• Reduced utility costs

• Financing

• Energy audits

• Green building

• Construction

• Asset management

• Property management

summary of the program prepared by the climate Leader-

ship Academy Network and the Institute for Sustainable

communities in partnership with Living cities

A key part of the appeal of the program to property own-

ers is the comprehensive one-stop assistance it offers. cIc

has many years of experience working with owners of small-

to mid-sized properties who are generally small operators

without a lot of financial or accounting sophistication.

owners who participate in the program receive an annual

performance report for at least two years, beginning one

year after project completion. the report uses pre- and post-

project utility bills to verify expected reductions in energy

use. If savings are significantly different than projected, pro-

gram staff members return to the site to diagnose why and

provide further recommendations (usually about operational

adjustments).

the program is one of the six key initiatives of a rental

Housing Action plan devised by the preservation compact.

Guided by ULI chicago with support from the John D. and

catherine t. macArthur Foundation, the compact aims to

preserve and improve 75,000 units of existing affordable

rental homes that might otherwise be lost to condominium

conversion, demolition, or rising costs.


pittsburgh–With the help of a new expedited process-ing program from the Federal Housing Administration (FHA), an abandoned school here has been converted

into highly efficient housing for seniors, including a substan-tial number of very affordable units.

the former South Hills High School in the mt. Washing-ton neighborhood here has been converted to 106 units of senior apartments – 84 units of which are affordable and 22 which are non-income restricted. the project also has about 12,000 square feet of commercial space on the ground floor.

the school sat vacant and in disrepair for 20 years until the Urban redevelopment Authority of pittsburgh (UrA) ap-

proached a.m. rodriguez Associates, inc. in 2005 to look into possible reuses of the building for senior housing. After 4 years of planning, designing and fund-raising the project began con-struction in June 2009, thanks to financial support from the states redevelopment Assistance capital program.

In 2005, the board of education spent $3.5 million, demolishing and abating parts of the building and repair-ing the roof on the school so that it could more easily be converted into the mixed-use facility that the mount Washington community envisioned. a.m. rodriguez As-sociates, inc. submitted a proposal to the pennsylvania Housing Finance Agency (pHFA) to rehabilitate the prop-

FHA mortgage insurance key factor in converting school to affordable housing

>>

▲ The former South Hills High School in Pittsburgh has been converted to 106 apartments using tax credits and FHA mortgage

insurance. >>



>> erty to the 106 units of senior apartments.the project was initially awarded tax credits in 2008

and then an additional allocation in 2009, for a total of $1.7 million in annual credits, the most pHFA had ever awarded to one project. pHFA also awarded the project $1.5 million of their pennHomeS soft funds, which is the maximum amount allowed per project.

one of the challenges of reusing large buildings for af-fordable housing is that the volume of space is often greater than typical new construction. In this case, the building has 155,000 square feet. It also has very large windows. With this challenge in mind, a.m. rodriguez Associates, inc., in collaboration with Sota construction Services applied to the pennsylvania energy Development Authority (peDA) and was awarded a $500,000 grant to install a 27kW photovoltaic Solar Array and 65kW co-generation turbine, both of which produce electricity on site and reduce utility bills by approx. $35,000/year. the developer estimated that the project is generating 30% to 40% of its electrical power on site and that this will reduce its carbon footprint substantially.

In addition to the co-generation turbine, a 2,000 gallon hot water storage tank was installed to capture heat from the turbine for use in generating hot water.

a.m. rodriguez Associates, inc., and, Sota construction Services, Inc., had completed several LeeD certified rehabili-tations in the past, but none of them included the alternative energy production strategies used at South Hills retirement residence. An efficient water-source heat pump system was installed which can also use the excess heat from the co-generation turbine so that the boilers are not needed during milder temperatures.

the building is projected to receive the LeeD for Homes Gold designation.

the FHA has tried to make it easier to use its mortgage insurance programs for projects with low-income housing tax credits by speeding up its processing time. this was the first project in the area to use the new expedited processing capability. “It was incredibly quick,” said barbara m. Sullivan, senior vice president of bellwether real estate capital, LLc, the originator of the FHA loan.

“We probably could not have done the deal without this expedited processing because of the deadlines under the tax credit program for when the project had to be placed in ser-vice,” said Victor rodriguez, senior vice president operations & administration for the development company. the equity investor in the project was John Hancock. ❧

program has two tracks, one that offers a 9% tax credit through a competitive process and one that offers a 4% tax credit as a routine offering to any eligible project that obtains an allocation of private activity tax-exempt bonds. the demand for 9% credit far exceeds the limited supply, while bonds and 4% credit are readily available in most states.

one of the most active investors in affordable housing in the west is Union bank. the institution sees preserva-tion of existing affordable housing as a crucial need for communities as well as an important business opportu-nity, said Annette billingsley, senior vice president and head of the community Development Finance (cDF) division.

the bank finances many of Safran’s projects. “You get a sense of the pride he takes in his work. He builds and manages to the highest standards, from bricks and mortar up to services he brings to residents,” said Johanna marie Gullick, vice president and Southern california market manager.

the bank’s appetite for equity investments in 4% or 9% tax credits generated by preservation projects is very strong, said billingsley.

After a slow down in the investment market in 2009, investor demand is very strong for 9% credits generated by projects in major cities like LA and San Francisco. this has pushed up the amount of equity that project sponsors can

raise. the high prices being paid have trickled down to 4% deals to some degree, she added.

the resurgence of investor interest in 4% credits is good news for developers doing preservation deals. In 2009, there were very few 4% transactions (or 9% deals for that matter). In 2010, the market improved. Now, there is strong demand for the equity generated by 4% deals, primarily for banks with investment mandates under the community reinvestment Act.

“In california, it’s a bank driven market, and the banks are driven by crA,” billingsley said.

to make preservation deals work, Sec 8 contract renew-als are critical since they obligate the government to pay the rent of eligible tenants, creating a stable source of cash flow. Actually, the Sec. 8 contract is a kind of source as it leverages permanent debt by providing additional revenue.

Some projects are feasible with just tax credits and rental subsidies, but others require additional soft loans to help cover higher aquisition and rehab costs.

regency towers was very cutting edge, said billingsley. Union bank retained a percentage of ownership in the prop-erty but syndicated a portion as well. one of its investors was Google. It was the first tax credit deal in which Google invested, billingsley added.

Union bank is actively involved in equity investing and debt financing for all kinds of affordable housing primarily on the West coast in california and the pacific Northwest. ❧

—coNtiNuED FRoM pAGE 32

The nation’s first system for controlling greenhouse gases (GHG) and financing energy ef-

ficiency through the auction of emission allowances faces serious challenges as it enters

its fourth year of operation.

the regional Greenhouse Gas Initiative (rGGI) was the first mandatory system in the

United States to require fossil fuel-based electricity generators to purchase emissions allow-

ances for every ton of greenhouse gas emitted. the program has achieved a great deal as it

completes its third year of operation, but it faces some major challenges too.

“rGGI harnesses the market’s capacity to search out the cheapest emissions reductions,

and rewards climate-friendly innovation in the electric power sector,” states the rGGI website.

participating states include connecticut, Delaware, maine, maryland, massachusetts, New

Hampshire, New Jersey, New York, rhode Island, and Vermont. However, New Jersey’s gover-

nor has announced that his state will leave the program.

In New Hampshire, the governor used his veto power to prevent the state from withdrawing

from the program.


pioneering mandatory emissions control program hits turbulence

pioneering mandatory emissions control program hits turbulence

GHG Emission Allowances:

New Hampshire governor vetoes withdrawal measure;New Jersey prioritizes incentives for wind, solar power


Gov. John Lynch said withdrawal would result in New

Hampshire ratepayers continuing to pay as much as $6 mil-

lion in additional electricity rates, while forfeiting more than

$12 million of funding annually. “Withdrawing from rGGI

would be a blow to our economy and to our state’s efforts

to become more energy efficient and energy independent,”

Lynch said.

According to an independent economic assessment of

the program conducted by the University of New Hamp-

shire, the cumulative impact of rGGI through the end of

2010 has been a cost of $11.7 million, and a benefit of $28.2

million in allowance revenue.

“through this initiative we have invested significantly

to help increase the energy efficiency of homes, public

buildings, and businesses. In many cases, these funds help

to leverage additional private resources to achieve even

greater benefits,” Governor Lynch wrote.

New Jersey withdrawsNew Jersey Gov. chris christie is one of the few repub-

lican office holders who publicly acknowledges that climate

change is a real concern and that human activity is at least

part of the problem.

but christie is prioritizing other approaches over partici-

pation in rGGI, which he described as a failed approach to

reducing greenhouse gases:

“First, rGGI allowances were never expensive enough to

change behavior as they were intended to and ultimately

fuel different choices. When rGGI began the industry

projected that the cost of allowances would eventually be

as high as twenty to thirty dollars a ton compared to the

current price of less than $2 per ton, at which point the cost

would have been sufficient to affect a decision of energy

producers to choose lower carbon fuels or more efficient

production technologies. this is not the case. It has not

happened.”

Second, Gov. christie argues, New Jersey’s carbon emis-

sions are already below the goals for 2020 set out in New

Jersey’s Global Warming response Act, the legislation that

permitted the state to participate in rGGI. He said this was

due to increased use of natural gas, and the decreased use

of coal.

third, given that New Jersey now has multiple laws that

provide significant market incentives for wind, solar, and

instate natural gas generation, Gov. christie claims that any

benefits that the rGGI tax may have had are now miniscule.

“Fourteen laws have been passed since the Global Warm-

ing response Act was passed authorizing us to join rGGI.

these fourteen laws all accomplish the goals of promoting

clean energy without the need to participate in rGGI at all,”

he stated.

At the same time that he announced the state’s withdraw

from rGGI, christie revealed a plan to ban new coal-based

generation of energy in New Jersey. “We will no longer ac-

cept coal as a new source of power in the state and we will

work to shut down older plants that emit high greenhouse

gases. We need to commit in New Jersey to making coal a

part of our past.”

christie said he would work to make New Jersey number

one in offshore wind production. He also announced an ef-

fort to expand development of solar energy generation on

brownfields and landfills.

Auctions lack biddersthe website Law & the environment confirms that rGGI

is not realizing very high demand for carbon dioxide allow-

ances. In its most recent auction, although the number of

bidders was up, the percentage of allowances purchased

was down. thirty-one bidders purchased just under 18% of

the 42,189,685 current compliance period allowances of-

fered for sale by the 10-state group (including New Jersey).

the previous low for demand for these allowances dates

from the last auction in June, where 25 bidders bought only

30% of the available allowances, also at the floor price of

$1.89.

Under rGGI, electric generators with over 25 megawatts

(mW) of fossil fuel-based capacity must purchase emis-

sions allowances for every ton of greenhouse gas emit-

ted. Generators that reduce emissions will be required to

purchase fewer allowances, and may sell surplus allowances

to generators less able to meet emission reduction targets.

rGGI thus harnesses the market’s capacity to search out

the cheapest emissions reductions, and rewards climate-

friendly innovation in the electric power sector, according to

the organization’s web site.

the inaugural auction of rGGI emissions allowances

was held in September 2008, and ongoing quarterly auc-

tions have raised hundreds of millions of dollars for states

to invest in clean energy programs. the majority of this

auction revenue is dedicated to energy efficiency programs

that save consumers money, reduce emissions, and deliver

economic benefits across the region.

one of rGGI’s most important design precedents is the

decision to auction allowances rather than give them away

for free, and to invest auction proceeds in energy efficiency.

emissions from power plants covered by the rGGI

program have declined significantly since the program was

established. In 2009 regional emissions fell 34% below the

ten-state cap, and in 2010 emissions were 27% below the

cap. the decline in emissions was principally caused by

reduced generation from fuel oil and coal, and increased

generation from natural gas, renewables, and nuclear, as

well as by investments in energy efficiency across the

region, rGGI said. ❧

Partnership for Sustainable Communities

Support Sustainable Communities & Get Valuable Membership Benefits

You are invited to become a charter member of the Partnership for Sustainable Communities (PSC) today. You will receive practical tools and information you can put to work immediately to help your organization and your community… Plus, You will be supporting our nonprofit organization’s work to make American communities more sustainable, inclusive, and economically strong and to encourage production of afford-able housing near jobs and transit.

Get membership for one year for just $99.

Your satisfaction is guaranteed. If you ever feel that the benefit is not worth the cost, we will happily refund 100% of your membership dues at anytime.

The Partnership for Sustainable Communities® is a nonprofit 501(c)(3) charitable organization exempt from taxation. Please consider making a donation in addition to the cost of membership. Contributions over the cost of membership are tax deductible to the extent allowable by law.

•Exclusive access to the latest research and

data on land use and development. Search or

browse our library of land use research from

leading universities, agencies and think tanks.

•Six issues per year of Sustainable

Communities magazine get in-depth

insights into the most important policy

changes in land use and sustainability.

•Network and promote your business with a

detailed listing on our web site, www.p4sc.org

•Receive news alerts by email so you are

always ahead of the game.

•Discount on registration for our conference,

“The Housing Preservation Leadership

Conference”.

YES, I want to become a member of PSC so I can support sustainable communities and receive valuable benefits that will help my organization.

q 1 -Year Membership $99 q Send Conference Information

q Check enclosed q VISA q Master Card q Amex q Bill me

Credit Card Number Expiration date Signature

E-mail: Phone:

Name & Title:

Organization:

Street address, City, State, Zip code:

Phone:

MEMBERSHIP ORDER FORM

Visit us online at www.p4sc.org

Return by fax to: 415 453-4200 or mail to: PSC, 900 Fifth Ave., Suite 201 San Rafael, CA 94901

For details on the benefits of membership, go to www.p4sc.org.

Or request a FREE membership information packet by calling 415-453-2100 x302.

Are you ready for changes in land use planning and real estate development that are reshaping our world?

Now there’s a magazine guaranteed to help you succeed in the new era of sustainable planning and community development. It’s called Sustainable Communities Magazine and you’re holding it in your hand.

Get the Next Best Thing to a Crystal BallCity after city is pursuing new approaches to compact, transit-oriented development that includes affordable housing near jobs to reduce greenhouse gas emissions and reverse the damaging effects of sprawl. Market demand is changing, too.

Unlock the secrets of success in this challenging new era with Sustainable Communities Magazine, the only publication focused on sustainable planning and community development.If you develop, design or finance real estate, you can’t afford to miss a single issue of Sustainable Communities Magazine.

• Getaclearerpictureofwheregrowth is going to occur, where you should acquire sites, and what kinds of projects to plan.

• Tapintonewpublicprivatepartnerships to win financial assistance, zoning concessions and exemptions from onerous environmental reviews.

• Learnhowtomakethenumberswork for green building and alternative energy generation, and how to choose the most cost effective products and techniques

• Findoutwhatfinancingisavailableformixed- use and infill construction

• Keepupwithchangingstateandlocalgreen building and sustainability requirements and priorities for funding

• Takeadvantageoftransit-oriented development opportunities and new incentives for affordable housing construction.

• Learnhowtoturnenvironmentalconcerns from a negative into a positive in the battle against NIMBYism.

If you want to get all the critical information you need in one succinct, readable and insightful package, there’s only one place to turn: Sustainable Communities magazine.

Don’t miss an issue: Join the Partnership for Sustainable Communities and you’ll receive all 6 issues.

CODE: SMN-11-1-R2 PUB/POST: StdSizedPubs PRODUCTION: D. Hanson LIVE: 7 in x 10 in

DESCRIPTION: Answers that Last; STD sized Pubs TRIM: 8.5 in x 11 in

Delivery Support: 212.237.7000 FILE: 05C-002000-04A-SMN-11-1R2-STD.indd SAP #: SMN.SMNCOR.11007.K.011 BLEED: 9 in x 11.5 in

siemens.com/answers

©Siem

ens A

G, 2011. A

ll Rig

hts R

eserved.

It’s why we’re designing our technology to last longer and use

fewer resources. It’s why we’re helping our customers reduce

their CO2 emissions. And it’s why we’re pioneering new answers

with one of the world’s largest environmental portfolios.

As a result, we were just named the best in our business

sector by the Dow Jones Sustainability Index. And recognized

as the top company overall by the Carbon Disclosure Project,

the world’s largest independent database of corporate climate change information.

Yet we’d never claim to have all the answers. That’s why we’re working with 190 countries. Thousands of cities. Tens of thousands of companies. In energy, industry and healthcare.

We’re working with the world today to create answers that last for the world of tomorrow.

The world of tomorrow needs answers that last.That’s why we’re building them today, with customers all over the world.

sustainable communities magazine sept/oct

Documents

sustainable communities6i

sustainable tomorrow

foreclosed homes

categories local governments

smart growth

site planning

smartgrowth neighborhood

mix of housing