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Home My WebLink About12-20-2007 Housing & Community Development Commission AGENDA HOUSING AND COMMUNITY DEVELOPMENT COMMISSION LOBBY CONFERENCE ROOM, CITY HALL THURSDAY, DECEMBER 20, 2007 6:30 P.M. 1. Call Meeting to Order 2. Approval of the November 15, 2007 Minutes 3. Public Comment of Items Not on the Agenda 4. Staff/Commission Comment 5. Low Income Housing Tax Credit Presentation by Bob Burns of Burns & Burns, LC 6. Discuss the Housing Trust Fund of Johnson County's Request to Submit a Letter of Support to the City Council 7. Discuss HCDC Communication and Recommendations to City Council 8. FY06 Project Updates: Downpayment Assistance and The Housing Fellowship - Affordable Rental Housing 9. Monitoring Reports . Visiting Nurse Association - Mental Health Home Visits (Drum) . Iowa Valley Habitat for Humanity - FY07 & FY08 Affordable Homeownership (Crane) . DVIP - Facility Rehabilitation (Shaw) 10.Adjournment ,~ ! -,...= -.....!t .....--... t~~!: ~~ ~~n~ --.. ,.. CITY OF IOWA CITY MEMORANDUM Date: To: From: December 14,2007 Housing & Community Development Commission (HCDC) Tracy Hightshoe, Associate Planner December Meeting Packet Re: Below is a brief description of the December agenda items. Low Income Housing Tax Credit Presentation Bob Burns of Burns and Burns, LC (www.burnshousing.com) will be present to provide information about the basics of the Low Income Housing Tax Credit Program. Housing Trust Fund of Johnson County - Letter of Support The HTFJC requested that the commission review the letter that was submitted to the Interim City Manager and to write a letter of support for their funding request. Please review the enclosed letter. HCDC Communication and Recommendations to City Council At the November meeting, commission members requested that this item be added to the agenda to discuss ways HCDC could review time sensitive information and to discuss how to submit recommendations to Planning and Zoning or City Council if needed. The commission will consider how best this can be done while following all City requirements regarding open meeting laws. FY06 Project Updates Staff will provide updates on two FY06 projects; the CDBG funded Downpayment Assistance Program and the HOME funded The Housing Fellowship - Affordable Rental project. Monitoring Reports · Visiting Nurse Association - Mental Health Home Visits (Drum) Contact Suellen Novotny (337.9686 x148) · Iowa Valley Habitat for Humanity - FY07 & 08 Affordable Homeownership (Crane) Contact Mark Patton (337.8949) . DVIP - Facility Rehabilitation (Shaw) Contact Kristie Fortmann-Doser (351.1042 x112) If you have any questions about these agenda items, or will be unable to attend, please contact me at 356-5230 or by email at tracy-hiqhtshoe@iowa-citY.orq. Happy Holidays! MINUTES PRELIMINARY HOUSING AND COMMUNITY DEVELOPMENT COMMISSION NOVEMBER 15, 2007 LOBBY CONFERENCE ROOM, CITY HALL Call to Order: Anthony called the meeting to order at 6:40 P.M. Members Present: Jerry Anthony, Brian Richman, Michael Shaw, Steve Crane, Andy Douglas, Charles Drum, Rebecca McMurray, Holly Jane Hart Members Absent: Marcy DeFrance Staff Present: Tracy Hightshoe Others Present: None RECOMMENDATIONS TO COUNCIL (become effective only after separate Council action): None. APPROVAL OF THE OCTOBER 18, 2007 MINUTES Anthony asked if anyone had any changes. It was noted that on page 3, the last paragraph, where it states, "Hightshoe stated that there is an existing policy. . . City within 90 funds..." This should be "90 days" instead. Anthony noted that on page 2, at the bottom, there is a typo with the "Fannie Mae and Freddie MAC" - it should be "Mac." MOTION: Shaw moved to accept the minutes as submitted; seconded by Crane. Motion carried 8-0. PUBLIC COMMENT OF ITEMS NOT ON THE AGENDA None. STAFF/COMMISSION COMMENT Shaw stated that he wanted to suggest that on the next agenda they have some discussion, or an update, on the status of Big Ten Housing. Anthony noted that P&Z rejected it, and last he heard, it was going to the City Council. Hightshoe stated she will check the status and email it to the commission members. Douglas asked if they couldn't form some type of subcommittee that would keep an eye on different housing and Planning and Zoning (P&Z) issues, and that could make Housing and Community Development Commission November 15,2007 Page 2 recommendations to the City, without having to wait to put on another month's agenda. Hightshoe noted that they could consider a procedure, but that a subcommittee would not be able to speak on behalf of the HCDC without a meeting. She stated a 24 hour public notice must be provided for the group to meet to make a motion to forward recommendations to Councilor P&Z. She will check on this to confirm. This started a brief discussion of how HCDC could, as a group, handle some of these issues. Communicating between commissions and boards was also discussed. Anthony noted that at the next meeting he would like to see more discussion on this issue. NEW BUSINESS - Discuss and Review FY09 CDBG/HOME Funding Process Timeline Hightshoe began the discussion, stating that they need to discuss the date timeline that has been laid out for the FY09 allocation process. Applications go out in December, and are due back January 23,2008. She reviewed the allocations timeline with the commission and responded to comments. Hightshoe asked that commission members let her know if the March dates will be a problem. The March meetings have been scheduled around the university's spring break so that more members and applicants will be able to attend. She also noted that these meetings would take place in Harvat Hall, and not the Senior Center or the Library. Hightshoe noted that the City Council votes on HCDC's recommendation the first part of May. Hightshoe continued to review the allocations timeline. When the commission forwards the recommendation to Council, she encourages that one or two members are present at the Council meeting in case there are any questions. NEW BUSINESS - Review and Approve FY09 CDBG/HOME Application Materials Hightshoe then addressed the application materials and guide that the members received for review. Two years ago, Hightshoe stated that they made significant changes to the application; however this year there was only one besides dates. Hightshoe stated that the only new thing for FY09 involves the location map for affordable housing projects that was completed based on the Scattered Site House Task Force recommendations. The Council has come to a consensus that owner-occupied housing projects can be located citywide without further Council review and approval. Rental housing projects in areas identified as not encouraged for affordable housing projects must receive Council approval. Members asked a few quick questions of Hightshoe regarding this process. Hightshoe reported that it is anticipated that funding will remain the same as last year. Hightshoe stated that last year they had $1.6 million available. Once all Council earmarks are removed there is an anticipated 961,700 available to allocate to HOME and CDBG eligible projects. As with last year, only approximately $14,000 will be available for allocation through HCDC for public services. $105,000 is allocated to the City's Aid-to- Agencies budget which provides funds for annual operating expenses to various human Housing and Community Development Commission November 15,2007 Page 3 service agencies. If we receive additional program income, HCDC may be able to increase the allocation for public services; however the City can't allocate more than 15% ofthe CDBG entitlement plus prior year program income for public services. This cap on public services is a CDBG program requirement. Hightshoe stated that funds will be allocated for economic development projects as the current fund balance is less than $250,000. Hightshoe estimated there will be a Council earmark of approximately $82,000 to the CDBG economic development fund. Hightshoe then stated that the allocation for the housing rehabilitation program is about $260,500. Based on the CITY STEPS priorities $584,000 would be available for allocation to housing projects and $369,000 for public facilities. Hightshoe noted that FY09 is the fourth year of our 5-year CITY STEPS plan. She shared a spreadsheet that identified how funds were allocated by CITY STEPS categories for fiscal years 06, 07 and 08, Members reviewed the chart and compared actual allocations to goal percentages based on the CITY STEPS categories: housing, public services, economic development, public facilities and administration. Hightshoe then covered the actual application, briefly pointing out the various sections. She noted that Part 6, on page 9, is the housing related item, which is basically a consensus of where the City Council stands on site location for rental and owner- occupied homes. The remainder of the packet includes the priorities for applicants to review and specific policies for various types of projects. Hightshoe noted that as updated information comes from HUD, the members will receive updated financial information as we work towards the March allocation meetings. MOTION: Drum moved to approve the FY09 CDBG/HOME Application Materials as presented; seconded by Douglas. Motion carried 8-0. OLD BUSINESS - Annual Review of the 2006-2010 Consolidated Plan (a.k.a. CITY STEPS) - Discussion and Consideration of Proposed Amendments Anthony noted that some time ago, a subcommittee was created to look at the 2006-2010 Consolidated Plan, to review this plan and suggest modifications, if any. Douglas is the chair of this subcommittee. Douglas referred to a handout that Hightshoe had given members. Douglas stated that the committee discussed whether to focus funding on particular categories, such as rental housing, during the upcoming allocation cycle and if changes were needed in CITY STEPS regarding priority level. Douglas stated that by focusing funds to a particular category, the City may make more of an impact than allocating small funds to several applicants. In terms of focusing funds on certain priorities, the committee met with a couple of council members and social service providers. At that point the understanding was that HCDC would not move to change priority levels this year due to time constraints; however input would be solicited from the community. Three geographic areas were Housing and Community Development Commission November 15,2007 Page 4 targeted for public input: Lakeside Apartments, Forest View Mobile Home Park and Pheasant Ridge Neighborhood Center. Douglas stated that numerous requests came out of these meetings, including one for an urgent care medical facility. Free Medical Clinic is not always open, and it can be difficult to obtain appointments, he stated. This was one need that was emphasized. Common requests from this year's meetings include more neighborhood facilities with youth programming, meeting space, affordable childcare and affordable rental and homeownership opportunities. A discussion ensued about the childcare needs, especially at Pheasant Ridge and Lakeside. A member noted that he believes the University is getting ready to open two urgent care-type facilities for walk- ins, and that Hy- V ee has been responding to urgent care needs, as well. Another member noted that some of the Hy- V ee clinics have closed. The conversation continued with Hightshoe responding to members questions about how the funding process takes place, the specific areas of concern for funding, and the various organizations that are a part of this whole process. Shaw asked questions about the income guidelines involved in the funding programs, and Hightshoe responded. He noted that the Hawkeye program will possibly be leaving some families without health coverage in February, and he wondered if HCDC could help in any way with individuals in those situations. Hightshoe stated an organization could apply for funds for this type of service; however there is only about $14,000 available in CDBG funds for public service applicants. The discussion turned to asking for feedback on what priorities could possibly be tweaked in CITY STEPS. There was a concern that when so many priorities are listed as "high," this basically renders the evaluation process almost meaningless. Anthony suggested that on page 10 of the draft, under "renter - small related", they change the priority need level from "H, H, L" to "H, H, H." Next, on page 11, Anthony noted that the top two categories (owner, small related cost burdened >30% and 50%) are "M, L, L" on both categories, and he suggested changing both to "H, H, M." Richman asked if someone could explain what "small related" and "large related" mean. Hightshoe responded, stating that "small related" means a household with 4 or less people related by marriage or blood; and then "large related" means 5 or more in the household, again having to be related. The discussion then turned to youth centers, on page 12. Member questioned since the acquisition of space for the UA Y youth center and the Four Oaks project, are youth centers still a high priority? Other items brought up were sidewalks and drainage. McMurray asked for some clarification on the sidewalks item. Hightshoe explained residents at Forest View Mobile Home Park were concerned that there is no sidewalk connection currently from Forest View to Foster Road. Residents felt this was a safety concern for their kids as the lighting is poor in this area as well. The road swerves and traffic entering on the bend can't see the kids coming down the road. Hightshoe noted that there were a few other areas of town that are considered low-to-moderate income neighborhoods without sidewalks. The final point discussed was under "Health Facilities," and should they raise the priority here, especially in light of the possible Housing and Community Development Commission November 15,2007 Page 5 influx from the Hawkeye program. Hightshoe noted that health services were a "high" priority. Discussed if a question of facilities or access (affordability) that prevents low- moderate income persons in need of health care. Member asked about the housing study that is being done. Hightshoe stated that the results from this housing study will be released on January 23,2008. Anthony noted that it might be a good idea to wait until this report is out, so they can then adjust their numbers accordingly with the more up-to-date information. Hightshoe explained that applications have to be approved very soon in order to hit all the allocation milestones. Hightshoe reviewed the time line with the commission. Anthony then pointed out on page 11 of the Priority Needs draft, that the priority levels are the same for "small related" and "large related," even though the dollars needed for the "small related" are ten times as much. He stated that he is conflicted about making any changes. This led to a discussion by members to review some of the various aspects of priority setting, as well as to look at the timeframe needed for applications, review, public comment, and Council approval. The consensus of the members was to wait until the housing study is released and reviewed to consider and recommend any change in priorities, especially for housing, Richman asked the chair if they could return to "Staff/Commission Comment" at this time. STAFF/COMMISSION COMMENT (cont.) Richman suggested that as the commission goes into the allocation process that possibly someone from legal explain conflict of interest issues to the commission and any other related issue that might arise during the allocation process. Hightshoe stated that in January, when they have the allocation orientation session, she will request legal to be present for that topic. MONITORING REPORTS - Extend the Dream Foundation - Operations (Hart) Hart noted that last year the Foundation was given $1,500. She gave a brief rundown of the organization, stating that they now have someone keeping track of their accounting with QuickBooks, and things are in order. MONITORING REPORTS - Local Foods Connection - Operations (McMurray) McMurray stated that Laura received money towards her salary, so McMurray asked her to give highlights of the year, and some info on what she has done. Laura reportedly told McMurray that she is delivering turkeys to 32 families this season. Planning for the next season is beginning now, as well. McMurray explained briefly how the farm program works, and stated that this program has gone on for five or six years now. Housing and Community Development Commission November 15,2007 Page 6 MONITORING REPORTS - Visiting Nurse Association - Mental Health Home Visits (Drum) No report. Drum requested to provide the report in December. MONITORING REPORTS - Aid to Agencies - ESI, MECCA, UA Y (Hart) Hart noted that she heard back from two of the agencies. In regards to VA Y, Hart stated that she met with Jim Swaim a few weeks ago. She briefly explained the wide variety of programs and services they provide. The Aid to Agency funds are guaranteed funds that they use for counseling programs, in which they served 2,300 youth in the last year. She also discussed some of the programs offered at City High, as an example. Hart then reported on Elder Services, stating that she spoke with David Purdy. They receive $59,800 from Aid to Agencies, and the funds are primarily used for case management. She briefly discussed ESI's goals, stating that they appear to be doing well. They help the elderly to stay in their home with supportive services. Hightshoe noted that MECCA uses the funds to pay for the medical director. ADJOURNMENT Richman moved to adjourn the meeting at 8:45 P.M., seconded by Crane. Motion carried 8-0. Housing Trust Fund of Johnson County 322 East Second Street Iowa City, IA 52240 Email: andy@htfjc.org Website: www.htfjc.org Office: 319.358.0212 Fax: 319.358.0053 HousIng 1rust Fund Johnson County Board of Directors Sally Stutsman, President Johnson Coun!} Board of S uperoisors Bob Dvorsky, Vice President State Senator, 15th District Ron Mavrias, S eeretaty Rural Advisory Committee Jake Young, Treasurer M.Gladrey & Pullen, ILP Jerry Anthony ,Universi!} of Iowa, Urban & Regional Planning Bob Burns, Burns & BurnJ, Lc.. Crissy Canganelli, Shelter House Amy Correia, Iowa Ci!} Councilor Maryann Dennis, Ex-oJIicio The Housing Fellowship Kirsten Frey, Kenne4J, Cruise, Prey and Gelner Steve Gordon, AM Management Ellen Habel, City of Coralville Steve Long, Iowa City Planning & Community Development Dee Miller, REI MAX Real Estate Centre Scott Schroeder, Iowa State Bank and Trust Jason Waldman, US Bank Dean Wheatley, City of North Liberty Larry Wilson, University of Iowa PM-Campus and Facilities Planning Staff Andy Johnson, Executive Director Dale Helling City of Iowa City 410 E. Washington Street Iowa City, Iowa 52240 November 1, 2007 Dear Mr. Helling, The mission of the Housing Trust Fund of Johnson County (HTFJC) is to promote and support affordable housing in Johnson County. HTFJC promotes affordable housing by providing opportunities for education and conversation about housing issues and the importance of housing to our local economy. We support affordable housing by providing a flexible source of funding to assist housing initiatives. The HTFJC Board of Directors invites the City ofIowa City, along with other local governments to invest in the mission of the Housing Trust Fund. In securing funding to support affordable housing, our first priority is to bring new funding into Johnson County. Since 2004, HTFJC has secured nearly $500,000 from the State Housing Trust Fund. (An application for FY08 has been submitted.) These funds have been supplemented by a HUD Economic Development grant of $99,200 and a Federal Home Loan Bank grant of$110,000 to assist rural homeowners with needed repairs. This year HTFJC has also secured a grant of state HOME funds of $243,000 for rental assistance for elderly and disabled residents on the Section 8 waiting list. HTFJC appreciates the support it has received from the City oflowa City to date. Iowa City helped secure our first grant from the State Housing Trust Fund and the City Council has supported our grant applications. The Trust Fund has partnered with the Housing Authority on several projects including last year's Housing Summit and City staff has been accessible and helpful with assistance and advice. We also appreciate the City's investment in an affordable housing market study for Iowa City and area communities. The results of this study will be very helpful in planning how to make strategic investments in housing initiatives to meet the area's most significant housing needs. After three years with funding and one staff member, the Trust Fund has begun to build a track record of successfully assisting in the creation and preservation of affordable housing in Johnson County. Completed projects include the construction of six affordable rental units, the rehabilitation of a rental duplex and the construction of four single family homes. Demographic information of these twelve homes includes: · Location: 2 communities, 6 neighborhoods · 22 children, 8 female head of household, 1 disabled, 9 extremely low income · Employment: Security guard, day care provider, hair stylist, hotel maintenance, manufacturing (temp.). · HTFJC funds awarded: $612,364 · Total project costs: $2.1 million Creating and preserving housing options in a healthy market requires significant resources. Small contributions, while welcome, unfortunately have limited impact. Last year, the Housing Trust Fund proposed that area governments invest $100,000 per year to support the creation and preservation of affordable housing through programs of the Housing Trust Fund. Divided on the basis of population, the following investments were suggested: Iowa City: $ 53,000 Coralville: $ 15,000 North Liberty: $ 8,000 Johnson County: $ 24,000 (Source: us Census Bureau, 2005 Population Estimates) We were pleased that Johnson County, Coralville and North Liberty chose to accept this invitation. These investments will help capitalize the fund and will be added to our revolving loan fund and were the primary source of local matching funds that enabled us to apply for a grant from the State Housing Trust Fund. This year, we are again inviting the local governments to consider investments at the same level. While many trust funds have dedicated sources of revenue to support their programs, HTFJC does not have stable, annual funding. This presents a challenge both to the Trust Fund as well as potential beneficiaries of our funds since successful housing initiatives require multiple layers of financing and several years of planning. As noted in "Affordable Housing in Iowa: Meeting New Challenges", a study of statewide housing needs by UI Professor Heather MacDonald: No matter the shape of the housing policy we develop, it will require one important thing: a stable commitment of resources that fits the real estate investment cycle rather than the election cycle. When programs wax and wane, they do more than cut off assistance for needy Iowans - they waste precious resources. HTFJC staff and volunteers have been at the forefront of efforts to secure stable funding for the State Housing Trust Fund, which would guarantee annual grants of at least $200,000. The ultimate success of the Housing Trust Fund of Johnson County will also require regular local support. Therefore, HTJFC is again requesting that the Johnson County Board of Supervisors and the city councils ofIowa City, Coralville and North Liberty include funding for HTFJC as a regular part of their budgeting process as described above. As we noted in our funding request last year, funding to the Trust Fund would yield community benefits, including: · With stable sources of revenue, HTFJC would be in a position to annually offer a mix of grants, forgivable loans and long term financing to support housing initiatives throughout Johnson County. · Community contributions would leverage additional public and private funds, bringing more revenue into Johnson County to support housing activity. The municipal and county contributions would be used as matching funds to support grant applications to the State Housing Trust Fund and other funding entities. Beyond requirements for local matching funds, the contributions themselves would be a significant indication of public support for the Trust Fund's mission. · The Housing Trust Fund will continue to partner with local government to bring stakeholders together to consider area housing needs and opportunities and to educate the public about the importance of housing for both economic and community development. · Trust Fund staff and volunteers will continue to educate state and national leaders on the benefits of housing investments so that existing funding sources are secure and new revenue streams may be identified. The Housing Trust Fund will provide contributing governments with quarterly reports regarding activities and investments. Annual, independent audits will continue to be done and audit reports provided to stakeholders. Monthly meetings of the Board of Directors are open to the public and Trust Fund files may be inspected at any time by representatives of funding entities. Thank you for consideration of this request to Iowa City to budget $53,000 to support the work of the Housing Trust Fund. Staff and members of the board are available to attend council work sessions to answer any questions you may have about this investment. As always, we welcome the opportunity to consider ways the Trust Fund can serve as a valuable partner to Iowa City. Yours truly, \~s\ Sally Stutsman, President \ , ) \ Senator Robert Dvorsky, President-elect c; \ \ Andy Johnson, Executive Director 1 Ii !I 11 I! Ii :l :~ H 11 :, I I H j il - - L_. When it comes to housing, affordable and sustainable can go togethel :ii . ~ i1 'It :1 .1 ;1 ~ ! iking Terrace Apart- ments, a low-income housing complex in rural Worthington, Minnesota, boasts some amenities. Thanks to an extensive renovation completed this summer, the four-building, 6o-unit development has a picnic area, a volleyball court, a full basket- ball court and better playground areas. But there's an invisible feature that residents like even better-low utility bills. Viking Terrace tenants' energy payments have de- creased by more than a third since the rehab, and they're saving on water bills, too. That's because Viking Terrace has gone green. The refurbished 30-year-old complex includes elements such as low-flow plumb- ing fIxtures, carpets made from recycled materials, energy-effIcient appliances and 48 DECEMBER 2007 GOVERNING o improved ventilation systems. All the new paints, sealants and adhesives are low in volatile organic compounds, or VOCs, which can cause health problems. And the buildings were reh'ofitted with a geother- mal heating and cooling system, greatly re- ducing monthly operating costs. Viking Terrace is just the latest sign that "affordable" and "sustainable" can go to- gether. It hasn't always been that way. The green-building movement, despite mak- ing signifIcant inroads in both public and plivate construction, has largely skipped the BY ZACH PATTON affordable-housing sector. The assumption always was that green came with too gold- plated a price tag for low-income housing. That's changing. Cities and states are be- ginning to focus on the long-term paybacks I I -~- of eco-fiiendly homes-particularly for the people who live in them. That's especially hlJe in Minnesota. Ear- lier this year, Minnesota became the fIrst state to require green construction for all new affordable housing built there. Making it mandatory, says Kasey Kier of the Minnesota Housing Finance Agency, shows a commit- ment to the notion that everyone should have access to green design-and the lower bills that come with it. "With operating costs rising and energy costs rising, it's some- thing we saw that we just had to do." Viking Terrace is one of the first prod- ucts of Minnesota's new mind set. It was a pilot project of a collaboration among the state, nonprofIt developers and Enterprise Community Partners, a national founda- tion that has backed affordable-housing de- velopment for 25 years. The initiative helped to green Viking Terrace by under- tj ",;;{. ."'.'4 . ."'"..T" '..'... ft - - --. .~... :~ r~Iit:.";~' <\l, '~iii 11': .'~, , ' t '. . ;\~, ~r'-'~ -- 1.Jl'-- '.._ iiJ l~ .Bl ,i.' ,', .~t D1' -1 lr.i',':';""l.f'" . '''-''.J''~'''' ~,~" ~. \:l~ . 'tJ~'l, ~~til:4 'f.I ~ ~rc' : ,.,. ~tt-~ " fl. ~,~. ~" ~ i~ ~ , :l'd \!~ {~' ,Ij'~ ~.1" ~~.' ",. '" writing the cost of the development's new geothermal system. Nudging Builders Green buildings have been catching on in the development industry for more than a decade. A lot of factors go into making a building green, but they generally break down into two categOlies. The fIrst is a low impact on the en- vironment, whicl1 can mean using recycled materials, re-using water or reducing con- struction waste, among other things.1l1e sec- ond is a positive impact on people, whicll gen- erally means improving indoor air quality or increasing reliance on natural lighting. Lately, green also is coming to encapsulate location, and the idea that building in a walkable, tran- sit-accessible place is something to strive for. The notion of applying green standards to housing, let alone affordable housing, is a rel- atively new idea. Only recently did the U.S. Green Building Council, whose "LEED" rat- ing system is the de facto standard for green building, develop a set of criteria for homes. The knock on green building is tllat going through all the hoops, including LEED's cer- tifIcation process, can add between 2 and 4 percent to a project's ptice tag. That's not a negligible factor, particularly in the realm of low-income housing, where developers are al- ways competing for limited funds. But the lingering disconnect between "green" and "affordable" runs deeper tl1an money. Developers who specialize in low- income housing are already accustomed to one set of rules and regulations, and going green would seem to add another. "It was like parallel universes," says Mary Jane Jagodzinski, a San Diego developer who has been involved with several green, low-in- come projects. "On tl1e one side, you had tl1e affordable-housing community, with its ~ I ' u ~ , .. I \ J ,t "J ),).. ., ;j '" :"ioi own issues, challenges and language. And then you had the energy folks, with their own issues, challenges and language." State and local governments are trying to nudge tl1e whole building industry toward green through a combina tion of incentives and mandates. In Chicago, for example, green projects are guaranteed an expedited permitting process. Developers in Arling- ton County, Virginia, are allowed a higher lot density for green projects. And Wash- ington, D.C., is the fIrst city to require green standards for all private construction, in- cluding residential projects. San Francisco has specifically targeted the affordable- housing sector by requiring all city-sup- ported low-income housing developments to meet certain green standards. At tl1e state level, most of the action is oc- curring through administration of tl1e Low Income Housing Tax Credit. That's the $5 GOVERNING DECEMBER 2007 49 !I I' i . i I; billion annual federal program that fi- nances almost all new and renovated rental properties for low-income people. Increas- ingly, slate housing finance agencies are adopting policies that either encourage or require developers to incorporate green- building practices in order to have a shot at winning tax-credit funds. Some 36 state agencies have added green policies to their LI HTC programs-28 in the past year alone. Some states have gone a step further. In additionlo Minnesota's ambitious goal. housing agencies in Maine and Washing- ton State essentially require green stan- Solara n 'I II " Poway, California Built: 2007, $16.2 million Units: 56 Monthly rent: $388-$1,075 Green features: )) Low-VOC paints, sealants and adhesives )) Low-flow water fixtures )) Energy Star appliances )) Fully powered by solar roof panels )) Cross-ventilation )) Playground equipment made with recycled tires and milk cartons )) Paths made from recycled glass :1 i :1 I " dards for all projects that receive state funds. The upshot of these state and local ac. tions, combined with similar new initia- tives at the federal level. is that it's a lot eas- ier being green. In some cases, it's really the only option developers have, says Madeline Fraser Cook, vice president of New Ecology Inc., a group that pushes for sustainable eco- nomic development in New England. "Once states included sustainability policies in their tax-credit programs, affordable.hous- ing developers started saying, 'We have no choice but to make these projects green, if we're going to be competitive,'" Cook says. "It's basically forcing the industry to change faster than it would have naturally." The industry also is getting a big green push from Enterprise Community Part- ners. Enterprise, a well-known player in the 17 cities where it does most of its work on affordable housing, is crusading to make II I I, 11 'I 50 DECEMBER 2007 GOVERNING greellll1ainstream. "Green Communities" is the group's five-year, $555 million com- milment to build more than 8,500 green homes for low-income people. Enterprise also worked with the U.S. Green Building Council to come up with a low.cost, low- hassle alternative to LEED for certifying af- fordable-housing projects. "G reenliving shouldn't be only for those who have the most money in our society," says Stockton Williams, managing director for Enterprise. "Especially because the ben- efits of this can make so much more of a difference for those people who have less. """" 'C ".I~'..._ ~ > Di!..... -. J ~ ~: 1Jt r~:U ~t~l ili" " ~,,'" ,'j ~~ , .If ,,/.t,,~ f;: <>J~ b'l .. ~:J~ ~"'t lit ::...7 ~;t:,,, ~ ~~,' m~f ~~-~::': . 1Jl ",i) ljIn .....!lv...','Il',,-t;. , ",":r:",., .~~ .," m.,~ '\;ii!'~ . eo' -. '.~r;jl1:1ll ,'lI'ttt}' .'-". . 'Jf:!"1l;y ",; ~ ~~, ,~ -~~T, j'" ;.}~,l; -, ~r:>l ,', '~';J <~i ..' - \~ ~- ,~' :~. :n~v;:;~'~ ~~-t~;! ~ ~.' ..,'tv. 1:~;, ;.. We want to really transform the affordable- housing field, to make 'green' and 'afford- able' one and the same." No New-House Smell In San Diego County, as in the rest of South- ern California, the farther inland you go from the Pacific Coast, the hotter it gets. So temperatures in Poway, an upscale subur- ban city about 20 miles from the beach, can run 20 degrees warmer than in towns on the coast. For residents, that means high air- conditioning bills. But not for the tenants of Solara, an apartment complex in the center of Poway that opened in March. Their en- ergy bills are significantly lower than their neighbors' across the street. In fact, the peo- ple who live in Solara don't pay a dime. The entire 56-unit complex is powered by solar panels on the buildings' roofs. Be- cause it's also energy efficient and incorpo- rates other green elements, Solara essen. tially powers itself. Its developers say Solara has the lowest carbon footprint of any apart- ment complex in California-95 percent lower than a conventionally powered project. Financed with the help of low-income hous- ing tax credits and loans from both the city of Poway and San Diego County, Solara is the most aggressively energy-efficient ex- ample of affordable housing in California and probably the entire nation. "We wanted to stay at the forefront of af- fordable housing,:' says Jagodzinski, whose nonprofit firm, Community I-Iousing- Works, developed Solara. "We were moti- vated to build green, and we assumed that all the other leading affordable-housing de- velopers were doing similar things. But about halfWay through the construction, we turned around and realized we were doing something groundbreaking, some- thing that hadn't been done elsewhere." Solara's environmental benefits are obvi- ous to anyone who sees the roofs. But Jagodzinski says it was something else that made a real impact on her when she first walked through the newly completed units there. "It struck me that there was no new- house smell." What she was noticing is that the usual odors of new construction-whidl some people falsely perceive as fresh and clean-don'tmaterialize when you use prod- ucts such as low-VOC paints and insulation that is low in chemicals. Solara typifies the idea that there's much .. ~ I II II I, 'I \i Ii I I I more to green building than being easy on the Earth. For advocates of green aITordable housing. the Elct that these structures are good (()I' the environment is almost a side benefit. They're simply better places to live. For one thing, utility bills are lower and more predictabk'. That's an especially help- ful benefit (or low-income [nnilies, which have been hit hard by the skyrocketing costs of energy. According to the American Gas Association, low-income families now spend a record 20 percent of their income 011 home energy payments. That represents a 33 percent increase since 1998. But green homes also are healthier T our a green affordable housing project at gavel ning.carn/xfras While there arc more Sobras and Viking Terraces to point to now than there were a fl'w years ago, af1ordable-hollsing develop- ers still face many challenges with building green. Contractors have en. trenched ways of operating, and those practices might not adapt easily to dif1erent materi. als and building processes. "That's still a challenge," says Madeline Fraser Cook. "Those guys who actually hold the hammers and nails-when you're asking them to change, you're asking them to change a lot." There are also lingering debates over !1 Ii ;\ ;i 'I II ;1 ." I' il :! ~ I III ! homes. The typical American home is filled with harmful chemicals, from the neuro- toxins in insulation to the formaldehyde in wood cabinets and finishes. In green build- ings, those materials are replaced with nat- ural versions that are less harmful. Addi- tionally, going green means improving ven- tilation. Indoor air is recycled more often, and airborne irritants don't sit stagnant in a sealed apartment. This, too, is an issue that disproportionately aITects low. income families, whose children suffer higher rates of asthma and other respiratory diseases than the rest of the population. 52 DECEMBER 2007 GOVERNING what materials pass muster as "green." Take 1100r coverings. A recycled-content carpet laid using low-VOC glue is a solid green option. But if your primary concern is health, no dust-catching carpet is as good an option as a smooth wood or tile l100r that can be wiped clean. The biggest obstacles are still ques- tions of money: Does it really cost more to build green? How much more? Is it worth it? Advocates say that green buildings don't have to cost any more up front than conventional projects. That may be true when developers and contractors who are experienced with green practices work to. gether. Most project teams aren't there yet. For the majority of housing developments right now, going green will add a few per- centage points to the up-flOnt cost. Over the lilc of the project, though, studies show that green affordable-housing proj- ects are actually more cost-er: fective than convent ional con- struction. Even the money challenge is becoming less of a problem than it used to be. Devel- opers are growing more amenable to "Iife- cycle" analyses that recognize the long-term Ixtras Viking Terrace Worthlngon. Minnesota Built: 1978 Green rehab: 2007, $4.67 million Units: 60 Monthly Rent: $298-$564 Green features: )) Low-VOC paints, sealants and adhesives )) Low-flow water fixtures )) Energy star appliances )) High-efficiency geothermal heating and cooling system )) Metal roofing )) Cement fiber siding )) Whole-unit ventilation system, including continuous ventilation of bathrooms )) Interior finish materials using recycled content value of green investments. Groups such as Enterprise are covering the added initial costs of eco-construction. And with the state and local policy changes, building green is quickly shifting from an added expense to simply pa1i of the cost of providing aITord- able housing. Governments are deciding that "aITordable housing" doesn't just mean "cheap." It means providing low-income families with a home that's healthy and easy on the wallet. Zach Patton can be reached at zpatto n@gaverninq.com