HomeMy WebLinkAbout12-20-2007 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
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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,
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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,
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Sally Stutsman, President
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Senator Robert Dvorsky, President-elect
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Andy Johnson, Executive Director
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When it comes to housing, affordable and sustainable can go togethel
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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
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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-
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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
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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
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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
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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
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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
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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.
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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
..
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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
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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