MHN Blog

The Residential Ripple Effect

The U.S. housing slump has had an obvious effect on residential construction-related industries. Just ask Home Depot, Sears or paint maker Sherwin-Williams -- they've all seen stock and/or profit decline this year due to it.

Rising home values increased personal wealth in recent years -- and now, some analysts worry a further decline in home prices will kill consumer spending and push the U.S. into a recession, according to David C. Wheelock, an economist at the Federal Reserve Bank of St. Louis.

The residential market has long been considered to have a key influence on the economy, and as it struggles, other areas generally unrelated to construction are beginning to feel the burn.

Some of the affected:

• Lending institutions. Capitol One last week announced it would cut 1,900 jobs and close its mortgage banking unit, GreenPoint, which has 31 locations in 19 states. Countrywide Financial Corp., the biggest U.S. mortgage lender, cut 500 jobs, according to the San Francisco Gate.

• Business spending. During the first part of the year, businesses let inventories run down and spent sparsely -- although things have picked up since, Crain's Chicago Business reports.

• Retail. One would expect retail to suffer, too -- since retail construction typically follows suit with residential as neighborhoods grow -- yet retail sales rose unexpectedly in July 0.3 percent. However, there are signs the growth may not continue: In California, one of the hardest-hit states in the housing slump, statewide retail employment dropped by 3,800 in July in part because consumer spending has decreased in light of residential value and construction declines.

Overall consumer spending makes up about two-thirds of economic growth, according to Chicago Business. So the July bump in spending gave many in the industry hope the economy would soon return to a more robust state.

In 2001, the booming telecommunications industry bust suddenly -- revenues grew at an annual rate of just 15 percent, compared to 34 percent the year before -- because of a decreased demand and an over-competitive market that led to price and operating cost pressure.

However, the telecommunications bubble bursting was also widely attributed in part to the sluggish economy that existed at the time -- whereas the housing slump emerged from a strong economy and slowly is dragging it down.

A high foreclosure rate, dramatically different property values and rising mortgage interest rates are cutting into personal wealth, and unless that cycle is stopped -- sooner, rather than later -- it seems the economy won't be able to catch a break until sometime next year.

Which industry will be affected next? Only time -- and the economy -- will tell.

A+ In Green Learning

Yesterday's Out and About blog touched on why universities are embracing green building. They aren't the only ones.

For some of the same -- and other unique -- reasons, many public grade schools throughout the country are also incorporating sustainability into their new construction plans.

Thus far, roughly 60 U.S. schools have been certified by the U.S. Green Building Council. Another 370 are on the way. The USGBC has also launched the "Green Schools Advocate" Program, which will train volunteers to urge state education and local school boards to make schools green.

As more U.S. cities and states encourage sustainability by either supporting or requiring green building, it makes sense that their education systems would follow suit.

But whereas green building often is encouraged primarily on the basis of its long-term financial benefits, green schools -- who also can benefit from a sustainability savings reduction over time -- are offering some additional positive effects of going green.

Take, for example, the program introduced in June at the U.S. Conference of Mayors, a 1,100-strong group. All conference attendees -- every last one -- voted to support a green schools resolution.

The resolution urges Congress to provide funding for K-12 green school demonstration projects and support new research funding to support the various benefits of making schools green. The proposal, sponsored by T.M. Franklin Cownie, Mayor of Des Moines, Iowa, lays out some clear green school benefits, including:

• Improved indoor air quality -- Studies have shown children are healthier and more productive as a result.

• Better health -- “Cleaner indoor air quality ... [has] been linked to lower asthma rates, fewer allergies, reduced absenteeism and increased teacher retention rates,” Cownie said.

• Cost reduction -- A recent study by Capital E researchers found that a typical green school costs two percent more to build, but would save $100,000 per year in energy costs alone -- enough to hire two new teachers, buy 500 new computers, or purchase 5,000 new textbooks, according to the U.S. Conference of Mayors.

Less expensive green schools can, by reducing operational costs, ease the financial burden on taxpayers, who fund local school systems via property taxes. That burden can be heavy: In New York state, which has the highest combined state and local tax in the nation -- 26 percent higher than the national average -- local property taxes were 49 percent over the national average in 2002, according to the Office of the New York State Comptroller.

Primary residential homeowners paid $9.5 billion in school property taxes in 2005. And yet, because school needs are growing, budgets proposed in May suggested increasing per-student spending by 6 percent -- twice the annual rate of inflation -- raising total property taxes in local districts by almost $700 million, according to the Business Council of New York State.

Schools embracing sustainability truly is good news for the economy -- and for the  construction industry: They are its largest sector. About $53 billion will be spent on school construction this year. (And, in a time when commercial construction is helping to offset the weak residential market, that's a good thing.)

Green building is expected to be 5 to 10 percent of that new building, according to the Council of Educational Facility Planners International.

The commitment to reducing energy, water and other costs is one shared by schools catering to older and younger students. And for similar reasons, couldn't green design improve productivity and reduce illness in office buildings? Couldn't it produce big savings in energy operating costs in 24-hour buildings, like police stations and hospitals?

Reducing energy costs isn't just an environmental argument -- it's a financial one, too. And that's important to remember, because while some may not support sustainability's conservational effects, every taxpayer wants to pay less on April 15.

College Life Involves More Green Principles; Yet Still, Many Naps

August means back-to-school time for thousands of college students across the country -- but they aren't the only ones hitting campus this fall.

Green design has made its way into college life, and green university dorms and buildings may be becoming one of the fastest growing sustainable building sectors. Already:

• More than 300 schools are Green Building Council members, according to the Houston Chronicle.

• As of April, more than 30 LEED registered campus projects were underway, according to Green Building Council data.

And with good reason: Wisely, the USGBC for years has actively recruited student involvement. In 2002, it founded the Emerging Green Builders program, a coalition of students and young professionals who work to spread the word about green building's potential.

By signing on these "future leaders," as the USGBC calls them, the organization is building enthusiasm and support in the industry early--before these students even hit the job market.

Other college kids, like Shyla Raghav, are starting their own programs. Raghav, who is involved in the statewide Green Campus Program, and a group of students spent 100 hours decking a standard UC Irvine dorm room out with hemp towels, organic cotton sheets and recycled train track bed frames as a green model for current students, the LA Times reported.

But Um, Who Wants to Pay for New-Fangled Design?

It's great that future generations may push for sustainability. But that's some time off, and today, green construction isn't cheap. Which can make it a hard sell.

Building green can add 5 percent to a budget's total (and a recent World Business Council for Sustainable Development study found most industry officials incorrectly estimate it to be much higher).

Take, for instance, the new Dudley H. Davis Center at The University of Vermont. Built with local and recycled materials and designed to reduce water and energy use, the center was the most expensive project UVM has ever taken on -- costing a whopping $61 million, the Burlington Free Press reported.

And yet, despite the added cost, many university administrations have gladly followed suit and built green, particularly with residence hall construction. This year, some of the new green dorms include:

• Rice University will get a new, five-story green residence hall with a green roof and motion detectors to turn lights on and off, saving energy. The dorm comes courtesy of a $30 million gift from former U.S. Energy Secretary Charles Duncan and his wife, Anne.

• Emory's new Turman Hall has flooring made of recycled carpet fiber, bamboo and reused auto glass. Turman also features light sensors that cut lights after 30 minutes of inactivity, pre-set room thermostats and water conservation toilets with two flushing options. A monitor in the lobby tracks energy use in the building for students to see.

• Pitzer College in Claremont has new dorms with garden rooftops and photovoltaic panels, and plans to eventually replace all dorms with green ones, the LA Times reports.

Surprisingly, Colleges Are OK with Absorbing the Cost

So why, if it's so pricey, is higher education embracing green building?

For one, cost may not be as much of an issue as it is for other construction projects.

While private universities may have a bit more budget leverage than state ones, many cities are passing incentives and mandates to encourage green building, making the decision easier for state universities. Michigan, Washington and Arizona are three which currently require or encourage government buildings to meet LEED standards.

In addition, some universities see green buildings as a selling point to students in the competitive collegiate market. UVM President Dan Fogel, who long campaigned to build the new green Davis Center, told the Burlington Free Press he wanted the center to nationally promote UVM as a green university and increase UVM's appeal to potential students.

Colleges -- Much Like College Loans -- Seem to Last Forever

But really, budgets and PR aside, green construction and design just makes sense for universities because of their expected longevity.

They're timeless, constant community structures. They plan to be educational learning centers for centuries: Many already have.

Well-designed sustainable buildings can help reduce the need for future renovations. And creating long-lasting buildings that add to (instead of taking from) the land a campus sits on -- and may have been on for 100 years or more -- will help protect the college's natural resources, from self-sustaining water supplies to the carefully-manicured grounds themselves.

Builders may hope the new homes they construct last as long; but in reality, as neighborhoods change, the chance they will be torn down, rebuilt or gutted is significant. Universities pride themselves on the appearance of tradition and history--and their shelf-life is infinite.

Green design may be a somewhat radical change for campuses -- especially those that are conservative and proud of their older, classically-designed buildings -- but it's one that can help them stay the same for decades to come.

Once Upon a Green Time

Energy costs were always my mother's main concern about owning a castle.

Not that my family ever really considered moving into one. Nevertheless, when reading stories to my sister and I about knights, damsels -- and everything that threatens knights and damsels -- she would always pause mid fairy tale and say, "Can you imagine how much it would cost to heat that thing?"

It added a somewhat practical element to bedtime story hour: But the woman had a point. Castles are drafty, and big.

Yet amazingly, my mother apparently was not the only one concerned with royal power costs. Behold the design for Castle House, a London skyscraper that includes a unique energy saving feature estimated to reduce residents' energy bills by up to 40 percent.

When built, it will have more than 300 apartments (less drafty than a stone castle, but still, large). The 43-story building will be targeted to young professionals and contains a combined heat and power plant, according to its developers.

But Castle House's most unique feature is its wind energy turbines. The structure is aerodynamically designed to channel wind to three nine-meter turbines on top of the building.

The turbines, sitting on the top 20 meters, will be able to produce enough electricity to light the whole building. All of it.

Castle House's developers -- Castle House Developments Limited, a joint venture involving the London developer Multiplex -- told London SE1 the roof would be a "highly visible representation of the building's green credentials."

And those turbines are indeed very visible: Some have criticized the building's design as a result (posts on one Web site called it a Norelco Razor).

Yet that's not likely to deter the developer, who from the start wanted the design to target getting an EcoHomes assessment rating of “excellent.” The design firm, after all, hired a green-minded architect -- Hamilton's, a 40-year-old, 200 strong firm. Its architects have designed schools, homes, offices and more.

"We have created a pioneering, landmark building of the highest quality, that will be the first of a cluster of towers that marks the new Elephant & Castle [neighborhood]," Multiplex director Richard Banks told London SE1. "The team has produced a striking building which will set the benchmark in design, quality and energy reduction for the future regeneration of the area. Hamilton's design is outstanding."

According to their company brochure, Hamilton considers sustainable building methods at "every opportunity."

"In addition to energy use, other significant aspects of sustainable design addressed in our work include water management, pollution, embodied energy, material specification, ecology, health and wellbeing, waste and construction impacts," the brochure says. "We believe the architect’s role is to understand these issues as fully as possible, and to develop a strategy that enables them to be integrated harmoniously into the overall project at all levels, from concept to detail."

Now true, the developer asked for green design -- but it takes a truly brave architect to design a structure that will alter the skyline with giant wind turbines.

As more and more green design features are becoming mainstream, society is bound to see -- and accept -- non-traditional design. But for those expecting a home with a white picket fence, a home with a plant-covered roof may still look out of place.

And that's just as true for UK citizens who expect their newest skyscraper to have an angular, shiny peak -- not a roof made of giant wind energy converters. One of green design's main challenges has always been its unusual appearance; what's good for the environment isn't always what's expected by the eye.

Still, the project has been called a catalyst for change and overhaul in the area. But it may do more than just encourage new development.

"Hamilton's has designed the building from the outside in and inside out to ensure [the sustainable] requirements were met," Banks said.

That's a system that makes sense. And when you put it that way, it's really kind of hard to compare Castle House a giant shaving device, isn't it?

Home Sweet Dirt and Straw Home

We all know what people in glass houses shouldn't throw -- stones. (Actually, it's probably not a good idea to throw anything if you live in an all-glass house.)

But what should people who live in straw houses abstain from doing?

Absolutely nothing, according to a new green building trend that is encouraging use of materials like straw, compressed dirt/rammed earth, an adobe straw mixture and aerated concrete blocks. (Lists of such materials can be found here, along with straw construction information.) Builders had in the past shied away from such materials because of fears they were highly flammable, not durable or just outdated.

Straw was a somewhat common building material in the late 1800s and early 1900s when Midwestern and other pioneers couldn't find timber, the Austin American-Statesman reports.

But the industry is now learning that some ancient building sources and techniques have very modern applications, for the following reasons:

• They're reasonable. Materials such as rammed earth are low-cost material alternatives with low embodied energy, according to Sustainable Sources' Sourcebook for Green  and Sustainable Building.

• They're energy savers. Architect Ben Obregon built his Austin, Texas home using rectangular straw bales for walls, which were covered with stucco outside the home and adobe plaster inside. He's reduced his monthly utility bill for the 2,135-foot home to $55, the Austin Statesman reported.

• They're actually quite safe. Scientific studies have proved that straw bale construction is actually very resistant to fire because of its tight packing, according to the Daily Green.

• They're in supply. One five-acre pit could supply earth walls for 5,000 homes, according to the Terra Firma Rammed Earth Builders company. However, suppliers and builders must be careful not to overharvest an area's rammed earth capabilities, or they'll be causing the same problem they're trying to solve.

So why aren't we all living in dirt- and straw-constructed houses? Permits can be hard to get because building codes rarely mention alternative building materials.

"Unfortunately, by not addressing specific earthen materials and construction techniques, codes restrict the use of these materials and types of construction, even those that may have a long history of success," Fred Webster, Ph.D., P.E., of Fred Webster Associates, known for its adobe building, wrote in an article on green building materials.

Insurance, as a result, can be hard to obtain for a rammed earth or adobe homeowner.

"Because of their standardizing Influence,   building codes are viewed by lending institutions as a rational and consistent   basis for judging the risk in lending mortgage or construction dollars," Webster says. 

And there are some viable insurance concerns. Water is a huge issue. A World Housing Encyclopedia report cited potential issues like roof leaks, which can cause major expenses if the soil crumbles.

Extra care must also be taken to waterproof the exterior walls, create roof overhangs and seal the doors and windows, the American-Statesman said.

But all homes pose risks, which is why insurance exists -- and the risk factor doesn't mean homes made with earthen materials are unrealistic housing options.

Are you hoping to reduce sound? Energy costs? Cut material costs? Examine the different building materials and determine which will work best for your construction. 

Also take note of where you live. If there are heavy rains, you may need to build on higher ground and/or add design elements that will keep the house as dry as possible.

And always, if you're considering building using rammed earth, straw or another sustainable material outside of the norm, talk to your local building department about the current codes and how you might obtain a permit.

This process might require educating them a bit, and may take some time, but always remember, communities are not averse to making building code changes. After all, if it's good enough for the Great Wall of China -- parts of it are made of rammed earth -- shouldn't it be good enough for your community?

Knowing the Cost and Effect of Green Building is Key

News last week that a recent study by the World Business Council for Sustainable Development (WBCSD) had found the industry perception of green building's costs and benefits was way off base was disheartening news to green enthusiasts.

The survey found that real estate and construction industry officials often misjudge the costs and benefits of building green. Their general estimations of what green building added to a project budget hovered around 17 percent (the true cost is just 5 percent); industry members also thought greenhouse gas emissions from construction were 19 percent of the world's total when they truly are 40 percent.

Yikes. It seemed like a setback for green building, which has enjoyed considerable positive press and word-of-mouth promotion this year.

But are things really all that bleak? There are a number of positive things going on in the green building world that would imply the construction industry is supporting green building:

• Green building is gaining political attention. NAHB testified in front of Congress in July to encourage green construction tax incentives and other programs that would encourage sustainable building. According to NAHB, more than 100,000 homes have been built and certified by voluntary, builder-supported green building programs around the U.S. since the mid-1990s.

• Home buyers are buying in to green building. A survey of more than 250 residential builders sponsored by Green Builder® Media and imrecommunications.com showed that buyers will to pay 11 to 25 percent for green building in new home construction, the Realty Times reported.

• Green construction is a healthy business. Industry expert Jerry Yudelson, principal at the green building consulting firm Yudelson Associates, said in March he expects the value of green building construction starts to exceed $30 billion this year, according to FM Link.

• And its future seems bright. LEED has begun creating several new programs to customize green building for different industries. Its core and shell accreditation program became available in July 2006; LEED for homes and LEED for neighborhood development are currently in the testing phase.

It's unclear how the industry perception of sustainable building's costs and effectiveness got so warped when there has been plenty of news to the contrary in 2007 -- but the WBCSD report, and others like it, should help to turn around any incorrect public perception.

Green building does add some cost to a project -- but it's dangerous to have industry experts overstating what that cost is.

Green building's perhaps biggest task is either bringing the cost of green construction down further or publicizing the over-time projected energy and other savings so widely that developers, architects and, ultimately, buyers will always weigh that factor in their decision to build green or not build green.

As David Duchovny, one of the celebrities mentioned in yesterday's green star supporters blog entry, told ecorazzi.com, "Unfortunately, you have to have the means to be green. That’s what has to change in this world. It should be cheaper to be green. I can afford to put solar energy in and I can afford to drive an electric car because I can also have a gas car if I need to drive more than eighty miles in a day. So that’s too bad.”

Wise words from a man who spent the greater part of the last decade saving the world from aliens. Maybe this time, Duchovny's insight will help save the world from itself.

The First Rule About Green Building is that We Always Talk About Green Building

BRAD PITT IS IN NEW ORLEANS! BRAD PITT IS IN NEW ORLEANS!

OMG! BRAD!!! PITT!!! NEW! ORLEANS!!!!!!

Such was the breathless, teenage girl-cadenced cry of the tabloids this week, as the Bran half of Brangelina rolled down south into the Big Easy. Numerous media outlets -- from People to the Associated Press -- covered the trip, publishing articles and photos of the "Fight Club" and Oceans Thirteen" star in New Orleans.

Was he partying in the French Quarter? Hanging out in the home he owns there? Reading Anne Rice books?

Nope. Pitt was in New Orleans on Tuesday touring a newly constructed green home (along with the "Today Show") in the city's Lower Ninth Ward.

The home was based on a winning design from a contest Pitt and the environmental organization Global Green USA created to encourage post Hurricane Katrina construction, AP reported.

The house features sustainable elements such as walls treated with a nontoxic mold and termite repellant, solar panels and energy-saving appliances, which were added in part to lower residents' electric and water bills. (Electric bills will be reduced by 75 percent and water will be cut 50 percent, according to Brad.)

It may not sound like the most wild New Orleans vacation, but Pitt's passion for architecture and building is well documented -- he's a fan of Frank Gehry in particular (photographers caught him shooting photos of the Gehry-designed Guggenheim museum in Spain earlier this summer on a trip the media wasn't invited to.).

In March 2005, Pitt appeared with Gehry at a forum in which it was announced he would be involved with Gehry's downtown LA revamp group, the Guardian reported. Pitt is also rumored to be involved in Gehry's UK redevelopment of the Hove seafront.

So perhaps Pitt's recent contest, tour and general green design support doesn't come as a huge surprise -- but lending some star power to the effort is undoubtedly appreciated. His trip to the construction site last week generated dozens of media articles about his presence -- and, in turn, the green design elements the new home features. Clever.

Celebs are often criticized for jumping on the cause bandwagon for press or other questionable reasons, but Pitt's green passion seems to run much deeper. (There's some "A River Runs Through It" joke in there, but we can't find it.)

And he isn't the only member of the Hollywood elite to say yes to going green.

Other high-power stars are finding that promoting green principles -- either through practice, in media projects or through other platforms -- is helping to bring widespread recognition of the benefits and need for sustainability.

And the list of sustainable stars might surprise you. Other celebs who are green fans include:

•    Former X-Files star David Duchovny has a solar-energy powered home, according to ecorazzi.com.

•    Robert Redford, a long-time environmental and outdoor conservation supporter, in April committed three hours a week of eco-programming on his Sundance channel, Grist reports.

•    Julia Louis-Dreyfus owns a green home; she and her husband renovated their Santa Barbara bungalow into a green design showroom, featuring rooftop solar panels, a natural ventilation system and insulation made of recycled newspaper, Grist reported.

•    Alanis Morissette heats her pool with solar panels, GreenBuilding.com reports.

•    And forget the Malibu beach house or designer sunglasses: The current Hollywood must-have is the electric car. Both Leonardo DiCaprio and Cameron Diaz are just two of the celebs who have had them for years. (Leonardo is, of course, a very vocal supporter of all environmental causes, and recently finished a documentary about the subject.)

People may groan when Oscar acceptance speeches turn into social diatribes (and often, I'm one of them -- I want tears, many tears, maybe with a touch of joyful hysteria), and there is reason to question why any public figure -- actor, musician or otherwise -- without background in a subject suddenly becomes any cause's biggest fan.

But we're looking at a society (Hollywood) in which money abounds and needs are constantly catered to (how many people do you see daily who have one or two personal assistants to help them organize their life -- especially when that life involves months off at a time?).

In that crazy, decadent, fun society, sacrifice usually isn't a word that comes into play often. (Which is why we love to read those gossip mags so much.) It's LA -- I've lived there. People will drive a block in their car because it's easier than walking. Almost every commercial building has valet parking as a result; and heat lamps, so you don't have to suffer a moment of discomfort should the temperature dip below 70 degrees while you wait for the valet to bring you your car back. (Because NOBODY should have to suffer that kind of indignity!)

So it is admirable to see that some major Hollywood stars have forgone Bentleys for a Prius, opted to emphasize homes with solar panels over infinity pools and, most of all, put their schedule where their mouth is and dedicated time to promoting green design. It's a trend that will, with luck, continue.

Now, if we could only get more of them to scrap the personal jets ...

Habitat for Humanity, Indeed

An interesting program designed by the Oak Ridge National Laboratory -- inspired by the goal of reaching zero energy, where a home would produce what it uses -- has outfitted five Habitat for Humanity homes in Tennessee with new renewable energy producing and energy-efficient technologies.

The homes, RenewableEnergyAccess.com reports, feature solar panels, geothermal heat pumps, heat pump water heaters, airtight walls and roofing panels and mechanical ventilation systems. They are co-funded by the U.S. Department of Energy (DOE) and the Tennessee Valley Authority.

Jeff Christian, a buildings technology researcher at Oak Ridge National Laboratory and coordinator of the Habitat for Humanity project, told the ORNL Review that he approached the Tennessee Valley Authority and Habitat for Humanity about creating something zero-energy and affordable -- and first suggested something small, like a carport.

"It was the Habitat coordinators themselves who said, 'The people we serve don't need carports—they need groceries and they need a decent house. Why don't we just make it part of one of the houses we build?'" he told the ORNL Review. "By June, we had a house."

More followed. According to Christian, Habitat homes are perfect for the program.

"You build something, you test and when you are done testing the home is turned over to a family in need, who gets an upgraded, affordable home out of the deal," he says. "The houses are small, they are simple, and they can be fairly easily replicated. The community, in essence, gives us a laboratory facility."

That's a clever idea, considering the project combines the needs of an organization who will be creating new construction homes (Habitat for Humanity) and allows the ORNL to test out new methods, while also testing out their affordability -- which will ultimately be a key factor in getting them into new homes outside of the test program. Everybody wins!

Christian hopes to bleed some of the findings into the private construction sector; the program is also hoping to reach zero-energy soon.

He also suggested to the ORNL Review that the following changes will help the mainstream zero energy cause:
•    Christian hopes the Tennessee Valley Authority will up its solar power buy-back rates to 20 to 25 cents per kilowatt hour. (It currently pays 15 cents kilowatt hour).

•    The cost of solar panels must come down.

•    Electrical appliance use must be managed somehow. Christian says appliances aren't the huge problem. It's cell phones, chargers, VCRs, plasma TVs and more that can add a 2,500 kilowatt hour demand per year to your household -- and it's growing at 3.5 percent a year.

This example is so mindblowing because of all developers, one could argue that sustainability is probably least important to Habitat. Their clients -- who help build the homes -- require housing. That's a basic need.

But Habitat for Humanity has taken the time to consider the impact green design could have on a homeowner and a community and added it to their construction "to do" list. In the midst of coordinating an all-volunteer construction crew and building deadlines, Habitat took the extra time to say, 'You know what, this can save the homeowner energy costs down the road and has a real benefit long-term to the environment.' Bravo.

Which begs the question: If Habitat for Humanity can adapt a program like this, why can't larger, for-profit builders?

Chicago Hopes Life Imitates Art

I watched Chicago's Cool Globes exhibit rise slowly over the past few months -- from its installation to being surrounded by gawking tourists -- because I run almost daily along the lakefront area where they're on display.

And, for weeks, I was confused. I didn't see any signs; I didn't see any articles about it; all I saw? Giant globes (whose bases I tripped over on a regular basis.)

Summer outdoor displays are a rich tradition in Chicago. Since the 1999 cow show, in which more than 300 life-sized decorated cow statues were placed downtown, we've had other giant art structures, including sofas. So when I saw the globes, I just assumed that was this a new summer public art display that was in a different part of the city.

But when I one day passed the composting globe, I started to put things together. This was no beautified bovine.

The Cool Globes exhibit is an extension of Mayor Daley's commitment to making Chicago as green as possible. Mayor Daley has already agreed to building “green” libraries, public schools and police stations; his green building agenda includes supporting the Chicago Center for Green Technology, which offers tours, workshops and other opportunities for people to learn about green building, and the creation of the GreenWorks Awards, a bi-annual award program that recognizes outstanding green buildings in Chicago.

But Cool Globes, on display from June to September, is the city's first public art project designed to inspire citizens to take action against global warming.

There are more than 100 globes in all, near the museums, Navy Pier and the lakefront. The globes were created by artists including Tom Van Sant and Jim Dine, using different materials to express concerns or solutions for global warming.

Take, for example, the first globe that I saw, which is actually enclosed in a giant white box. Tiny shutters can be lifted to see worms turning food waste into a rich soil nutrient--a little gross, but effective.

Others include the residential solar globe, which displays the variance in energy use around the world, and a sustainable building design globe, which includes green building materials.

To further the learning experience, the Cool Globes Web site offers a number of home improvement green tips for Chicagoans, including:

• Installing programmable thermostats to automatically adjust the heat or air conditioning can save you $100 a year on your energy bill.

• If each household in the U.S. replaced its existing appliances with the most efficient models available, we'd eliminate 175 million tons of carbon dioxide annually.

• A variety of environmentally friendly building materials are available for home improvements, including reclaimed wood, natural fiber cotton insulation and energy efficient ventilation.

But what is particularly admirable -- in addition to the undertaking a project of this size presents -- is that Cool Globes project organizers, recognizing that the globes' creation would have some effect on the environment, took things an extra step and attempted to be a carbon neutral project. They developed a "green tag" strategy of renewable energy certificates, investments to plant trees and plans to foster environmentally-friendly agricultural practices.

The more I researched, the more surprised I was. True, Chicago's commitment to green design has been traditionally strong. But there's a big difference between supporting new building initiatives and installing 100 giant educational orbs outside to educate citizens about the issue. (And by the way, there is another public art installation this summer on Michigan Avenue -- this was truly an extra effort.)

Hopefully the globes will serve as an important visual for those who pass by. And even if they don't, the globes will help increase environmental programming: They're set to be auctioned off on October 5 to benefit environmental education programs, including the expansion of Chicago Conservation Clubs in Chicago Public Schools.

The Cool Globes project is a unique endeavor, placed in one of the highest-volume tourist traffic areas in the city. And I'm curious to see what effect it will have. We can cry green design's benefits from the green rooftops, publish guidelines and start programs to encourage new green construction, but sometimes, a picture is worth a thousand words, isn't it?

Residential Industry Pushes "Pause" on the Condo Market

Although some reports have suggested condos are faring better than most residential projects in the housing slump, a recent Washington Post article says nearly 20,000 condo units in the past 12 months have been removed from the construction schedule in the DC area alone -- disheartening news.

Also discouraging: Developers have abandoned plans for 22 local condo projects, the Post reported.

That's not exclusive to Washington.

    * Charleston, S.C. has seen a number of housing projects stall. Housing 2000 Inc. put its 314-unit Daniel Island project on hold, partly due to market forces, president Fred Morgan told the Post and Courier.

        Another development planned for 400 Meeting St. was put on hold for a second time in March while its investors wait for a market turnaround, the Post and Courier reported. And the owner of Wild Dunes Resort has pushed the already-delayed second phase of its Village condominium project back to mid- to late 2008.

    * In Grand Haven, Mich., a proposed 170-unit residential development received a one-year deferment recently to begin construction, according to the Grand Haven Tribune. The Township Board approved a town Planning Committee decision to unanimously give the 67-acre project an extension, which the Watermark Place condo developer requested around the time the groundbreaking should have been taking place because of the slow real estate market.

        Another project -- a Grand Haven subdivision development -- was given an extension earlier this year. And the Ballpark Village project, slated to be a 1,200 condo development, has been converted into a hotel plan instead.

    * Two downtown San Diego condo projects have been put on hold; five projects with development permits are up for sale or recently sold.

What's going on?

Part of the problem is funding. Developers could get loans even during the real estate boom if they presold only a quarter of their units -- but when sales slowed and people backed out of contracts, banks raised that number to 50 percent to achieve funding, real estate lawyer Peter Antonoplos told the Post. Some lenders, he said, also want the developers to front more of their own money instead of relying heavily on investors.

Market hesitation is another issue. The last six months of industry reports have not been favorable -- and developers are rethinking proposed buildings planned more than a year ago. With sluggish condo sales -- nationwide, they're down 6.6 percent from 2006, according to the National Association of Realtors -- and buyers dropping out of deals, some developers are getting understandably jumpy.

And who wouldn't with news spreading about situations such as Florida's Costa Verano development? The project's developers said that as the market declined, some buyers walked away from their condo contracts -- and their 20 percent, six-figure deposits, Shorelines reported. (Costa Verano was able to resell the units, but some might not be so lucky.)

What's unclear is whether the projects being cancelled are ones that have truly been tested and aren't selling because price points are too high or market demand is too low -- or if developers are (and somewhat understandably) calling off new projects because of continued nervousness as the residential market continues to plummet.

The good news? Well, some projects are just being put on hold -- and many of the construction extensions being granted are just one year extensions, implying an underlying faith that industry will turn around in the next 12 months.

And some condo projects, such as an 83-unit building on New York City's Upper East side, which has already sold 30 percent within weeks of its approval, are rolling along. These strong sellers show hope for the industry.

But the bad? There's uncertainty. And it's likely to continue. How long the housing slump will last -- and how many ambitious projects that were announced in recent years it will swallow -- remains to be seen.

Retail's Hot Color This -- and Every -- Season: Green

I was reading an article in the Community Times today about a new shopping center in Maryland that will be built with green design when something caught my eye.

The actual project details weren't anything too out of the ordinary for green building -- the structure will include use of natural light, a high efficiency HVAC system and possibly a green roof.

What stuck out to me was one sentence -- "Eldersburg will get the first green shopping center in the mid-Atlantic region with the addition of Main Street Eldersburg, a 90,000-square-foot shopping center on 12.5 acres on Londontown Boulevard behind the Wal-Mart."

Really? The Mid-Atlantic region has no green shopping centers?

The article went on to say that, according to the U.S. Green Building Council's Web site, there are more than 150 LEED-certified buildings in Maryland, the majority of which are commercial offices or mixed-use buildings.

OK. But it got me to wondering: With all the hype about the public works sector of commercial building adapting green design policies -- thanks to the many cities who have signed on to using it -- and the increasing effort of the housing industry to go green, which receives a considerable amount of press, what about retail?

It maybe isn't as flashy a story as homes that break the style mold to incorporate ecology, or as headline-friendly as mayors demanding all new city buildings give back to the environment, but it turns out the retail industry has been -- rather quietly -- embracing green design for quite some time.

Which is a good thing. Retail sales are up -- from total sales of $298,986 in January to $343,880 in June, according to the U.S. Census Bureau. True, they've dipped over the year, notably from May to June, which may have hurt industry confidence, but things are on the upswing.

Take, for example, a recent CoStar report said that Phoenix was the nation's leader in retail construction, with 13.4 million retail square feet under construction; other areas on the list included California's Inland Empire, Chicago, Dallas/Fort Worth and Cleveland, according to the Arizona Republic.

Megaretailer JC Penney this week issued a positive earnings statement. Kohl's and Nordstrom also reported having a good quarter.

Not all retailers can say the same -- Wal-mart and Macy's did not fare as well -- but there is evidence the industry is keeping above water, and, as a whole, is backing sustainability. The EPA in 2006 released a list of its "Green Power Partners," retailers who had made the largest retail purchases of renewable energy. Topping the list: Whole Foods, which wasn't a huge surprise, followed by Starbucks. But other additions included Safeway, Staples. Liz Claiborne and FedEx Kinko's: big retailers.

And this isn't brand new. Consider the Retail Traffic magazine article back in 1999 that said green design's influence was already spreading through the retail community,  citing a collective feeling that "a cost-effective and energy-efficient holistic approach for new and renovated retail properties" just made sense.

So what's next? A little help is on the way to get more retailers on board. LEED currently has two retail rating systems in the pilot stage -- one for renovation and new construction and one for interiors -- which address lighting, sites, security, energy and water concerns. The retail systems came about because LEED got so many calls from concerned retailers, according an interview the retail program coordinator did in May with CoStar.

Testing is ongoing for the interior program. The public comment period for the New Construction system is over; now we await LEED's final draft.

Surely a set standard and checklist for the retail industry will encourage even more retailers -- large and small -- to operate using green methods, ask future landlords and developers to incorporate green building practices into new construction and maybe, just maybe, provide consumers with a new product: sustainability.

And that will be the best deal in the house.

Low Housing Starts Have a Mighty Big Ripple Effect

The Commerce Department released its report on housing starts and building permits in July today, and it isn't good news.

The report said that construction starts hit their lowest point in a decade in July, and that the year-and-a-half housing recession is nowhere near over. Construction is down 21 percent from July 2006; housing starts dropped even more than expected from June to July.

But that's not all. Things to note from the report, courtesy of Bloomberg:

• Construction of single-family homes fell 7.3 percent in July. Multifamily home starts decreased 1.6 percent.

• Regionally, construction starts fell 11 percent in South, 3.7 percent in the West and 1.3 percent in the Northeast. The Midwest was the sole exception, rising 2.6 percent.

• Future construction doesn't look much sunnier. Building permits fell 2.8 percent -- more than anticipated -- to their lowest rate since 1996.

• First-time unemployment insurance applications rose suddenly last week, according to the Labor Department. Initial claims rose 6,000 to 322,000 in the week ending Aug. 11, the highest in two months. Economists expected them to fall slightly. The unemployment rate is now at a six month high, according to RTT News.

• Globally, stock markets have fallen due to concern subprime mortgage defaults will bankrupt more lenders and destabilize the financial system.

It seems unthinkable that things can continue along this downward spiral, and yet, we keep getting news that the housing industry isn't merely stagnant, but rapidly declining.

So what's going on?

Many blamed subprime mortgage market issues and tighter reign over credit.

Toll Brothers Inc., the largest U.S. luxury-home builder, said Aug. 8 that third-quarter revenue dropped 21 percent as the new credit restrictions reduced the pool of potential buyers, Bloomberg reports.

"Even the most ambitious homebuilders will think twice about initiating new projects,'' Lindsey Piegza, an analyst at FTN Financial in New York, told Bloomberg. "Falling prices, sluggish demand and dwindling mortgage credit availability will continue to weigh heavily on residential construction."

Understandably. Bloomberg also noted that buyers are delaying purchases in hopes of further price declines, and tougher restrictions have shut some borrowers out of the mortgage market altogether. In addition, the ever-increasing amount of foreclosures will likely return properties to the market -- adding to the already large housing supply.

None of which makes developers or builders want to invest time or capital in new construction projects.

"It does look as if builders are throwing in the towel, especially in the South which is where the most difficult markets are," said Pierre Ellis, senior economist at Decision Economics in New York, told CNBC.

And, to add to the stress, with the recent stock market reaction, there's valid concern that the housing slump is really weighing on U.S. economic interests.

The Fed isn't ready to cut the interest rate. Fed policy makers conceded after their August 7 meeting that the housing decline (and related issues), or as they called it, "the downside risks to growth," have increased "somewhat" -- but the interest rate has not been changed, holding at 5.25 percent Reuters reported.

In addition, the Fed stressed that "the Committee's predominant policy concern remains the risk that inflation will fail to moderate as expected." With inflation as the priority, their position on the housing market appears to be just wait it out.

Yet the housing industry seems anything but calm. As RTT News pointed out, the lower-than-expected July results are expected to add to concerns.

"The housing starts number just adds fuel to the fire," Michael Darda, chief economist at MKM Partners in Greenwich, Connecticut, told CNBC. "You've got financial markets in panic."

And for that panic to subside, the financial market must gain faith in the housing industry again -- and  the housing industry, in turn, must regain faith in itself.

 

Condos May Not Be Selling, But They Aren't Losing Value

Yesterday's ruminations on condohotels inspired a new question: How are condo sales in general doing?

Interestingly enough, research on some major cities and areas showed that condo sales are indeed down -- but in many locations, condo prices are actually stable, or rising.

For example:

• Condo sales for the second quarter in Illinois were down 13.9 percent; however, median condo prices for the state were up 5 percent, to $223,000.

• Florida existing condo sales declined 25 percent in the second quarter of 2007, although the price of condos remained fairly stable at $208,400, according to the Florida Association of Realtors.

• Condo sales dropped 3.6 percent in Massachusetts but the median price increased 4.4 percent to $296,000, the Massachusetts Association of Realtors reported in June.

New York was one exception. The number of Manhattan apartment sales are currently at record levels, although listing inventory has fallen sharply, real estate appraiser and consultant Miller Samuel reports, due in part to continued demand and mortgage rates that remain low despite recent increases.

So why, if supply seems to be increasing, is demand increasing as well? (It challenges everything we remember from Economy 101!).

As a result of increased demand, condo price inflation since 2000 had by 2005 reached 57.9 percent -- exceeding conventional single-family home gains by almost three to one, according to "The State of the Nation's Housing: 2005" report by the Joint Center for Housing Studies at Harvard University.

Yet in many areas, condo sales may have fared better than single-family home sales because condos appeal to a different market. Condo seekers can include first-time buyers, urban dwellers who desire a home close to public transportation and other attractions, retirees looking to downsize and more.

In 2006, the number of married households --typically the largest homeowner group -- fell below the 50 percent level to 48 percent, according to the U.S. Census, which means more singles are making up the majority of housing consumers. Single female homebuyers increased from 14% in 1995 to 21% in 2005 alone, the National Association of Realtors reported.

For seniors, condos can offer easy maintenance and extra amenities like pools and gym that are expensive to add to a single-family home. The Joint Center for Housing Studies report said that condominium buyers tend to be older singles or empty-nesters with slightly higher incomes (although it noted that may reflect the fact nearly a quarter of all condominiums are located in the 20 highest-cost metropolitan areas of the country).

And, in non-metropolitan areas, it should be noted that condos are also traditionally less expensive than houses, giving them an extra push in the downtrodden economy.

Even with all these possibilities, the meteoric rise of the condo is still somewhat of a mystery. Have a theory on why? MHN Out and About wants to hear it: So post away.

What ever happened to the condohotel?

A recent article about Tampa's strong hotel market and declining condo starts brings a question to mind: What ever happened to the condohotel?

When residential real estate was on the upswing, high-end hotels were paired with condos in several projects, within the past several years when condohotels were a hot new real estate trend.

The condohotel concept involves selling a percentage of renovated or new hotel suites as residential units, offering amenities like hotel service and the ability to make money off your unit when not residing in it. The industry embraced the trend -- several high-profile projects, including the under-construction Trump International Hotel and Tower in Chicago were launched -- but with the decline of the residential market, some say condohotels have weathered the storm. Others insist condohotels have felt the sting of the industry slump.

Lodging Econometrics reports that there are 166 condo hotels in development throughout the U.S. According to a recent TheStreet.com article, approximately 60 condo hotels at various stages of development in Florida alone, and by 2008, there will be several hundred condo hotels in U.S. and around the world.

Joel Greene, president of the Miami-based Condo Hotel Center broker, said condohotels are at least 10% of every hotel project currently being built, TheStreet.com reported in July.

However, those new construction numbers don't mean the units are flying off the market. The same Joel Greene -- in the same month -- told the New York Times that his condohotel sales were down 30 to 40 percent in the past year.

The New York Times reported that there is some hope for condohotels -- a "second wave," if you will, that includes second- or even third-tier destinations. Niche locales including Biloxi, Miss., South Bend, Ind., which would allow alums to attend Notre Dame games, and Wisconsin Dells and Pigeon Forge, Tenn., where families could vacation, are the current hot spots.

Yet demand has fallen in more established condo-hotel markets like Orlando and Las Vegas, the Times reported. Several projects in those areas have been called off and sales are stagnant at others. The Times' example involved condo-hotel developer Robert Falor, whose combined Breakwater and Edison hotel projects in Miami Beach -- that would have carried Nicky Hilton's name -- went into bankruptcy in the last year.

I interviewed Falor about two years ago -- before the Breakwater -- about condohotels for a real estate magazine called Chicago Agent. He told me about one condohotel he'd renovated in which space was expected to sell for $750 a foot and sold for almost twice that.

“We felt it was a demand,” Falor said. “People told us it was crazy, it would never work in Chicago, Boston or D.C., yet we found a tremendous amount of demand.”

But that was 2005. Earlier this spring, Falor seemed to have felt the tide turned. “There’s no market for condo-hotels right now,” he told the Miami Herald. “We took advantage of what drove the highest values at the time.”

Which brings us back to Tampa, where things are looking rather bleak for the hospitality-home concept. When condo sales softened in Tampa Bay in early 2006, plans for several condohotels were stalled or cancelled, including the planned Waterfront Fairmont, the Tampa Tribune reported.

What's interesting, however, is that Tampa's hotel market has remained strong. About 20 new hotels are in various development stages in the area -- six are currently under construction with 12 more scheduled to break ground in the next year.

The Tampa Tribune cited rising room rates and hotels' strong profit potential as reasons banks are willing to get behind hotel projects in cities such as Tampa, which have strong convention and business trades.

In other words, demand. But that doesn't signal death for the condohotel. The secondary markets may not boast the glamour of South Beach, but they offer a viable use for a piece of property that will have value for years to come -- as a vacation spot, college football weekend home and more.

And, if the hotel market can stay strong -- note that rates are rising nationally -- that offers more reason for secondary-residence-seeking buyers to purchase a condohotel. The more guests that need rooms, the more condohotel owners will be able to rent out their condos.

Forget hoping for appreciation: an investment property that offers that fast a return is a find indeed.

Challenging the Windy City To Use Its Wind

Today's MHN Industry News postings included a story about a Chicago couple who recently renovated their house to include sustainable features -- and a little flair.

Frank and Lisa Mauceri will be running Frank's Smog Veil indie record label, which moved to Chicago about two years ago from Reno, out of their home in Chicago's Wicker Park neighborhood.

As with many Chicago two- and three-flats that are now living spaces, the Mauceri's building itself was a form of recycling; it had, in the 1880s, once been a tavern. Renovation plans included more material reuse,  grinding up old vinyl records with sledge hammers and blenders to use in the "new" flooring.

That's a stylish twist on recycling materials to use in home construction -- but the Mauceri home received a much more revolutionary addition during its redesign. The owners actually took the extra step to challenge local laws that, as a result of their redesign, have now become more green-friendly.

Chicago's CBS affiliate reported that the home may be the only type of its kind in the country, due in large part to the rooftop wind turbines, which can provide energy with winds as low as 5 mph. The city zoning code previously did not allow such turbines; but these silent models have inspired the city to change the code and publicly endorse turbine usage.

"Their project paved the way for other people to do the same thing," Green Projects Administrator Erik Olsen, who certified the project through Chicago's Green Permit building program, told the Chicago Tribune last year. "We basically went to the Department of Zoning and revised the code."

In fact, the revision was so successful that in the CBS news report, Executive Director of the Chicago Dept. of Construction and Permits Richard Rodriquez encouraged Chicagoans to "strongly consider" the technology.

The Mauceris figure the 10 megawatts of electricity generated annually will pay back the initial investment in seven and a half years -- but the investment was as much social as it was financial.

"My goal is to set an example for the music industry that you can maintain your business, even grow it, by instituting sustainable practices," Frank Mauceri told local Web site Gapers Block last year during construction.

The area is the perfect fit for a sustainably influenced record label headquarters; long known for its bohemian culture, Wicker Park is part artists' colony (thanks to the large artist studio in its center that began renting space for $1 a foot in 1985) and part residential investment oasis (the median value of single-family homes in the area rose 198 percent from 1990 to 2000).

Yet despite its hot real estate area tag, many locals are fiercely adamant about keeping the area diverse and full of independent retailers -- expressing dismay when Starbucks moved in back in 2001 and throwing bricks through the windows of the Real World house when filming began the same year.

Green design is not a far cry from the area's vegan coffeehouses and new solar-powered street signs, installed this summer to alert drivers as to whether or not a street has been swept and is safe to park on without fear of being towed. Still, the zoning laws needed to be changed.

The lesson learned: One homeowner can make a difference. When the Mauceris decided to add green design to their home/office during its renovation, they pushed the limits of what they anticipated was possible, and what the city did, too. As a result, Chicago homeowners can now explore adding wind turbine energy sources.

Green design has come a long way, but it is still a relatively new science to many. Cities are slowly beginning to accept and encourage its use, but the responsibility still in many cases lies on developers and project planners to request city ordinance revisions and work with the city officials as needed.

This is especially true in residential housing. Outside of large project LEED certification and similar programs -- and remember, the LEED for Homes pilot project doesn't even conclude until this fall; we're still waiting for the final system -- the rules are hazy at best.

And yet, as the Mauceris discovered, the possibilities are endless.

Construction Waste: Everyone's Problem Needs a Solution for Everyone

Wednesday's blog discussed construction site waste management issues -- and on the heels of that post comes news of an exemplary program in Canada that unites builders and local government to encourage responsible debris removal.

The need for reducing construction waste is not a new topic -- but it's one cities have faced repeatedly as construction boomed in recent years. Recycling can help. But how does a city encourage the private building sector to put forth the added time and effort to categorize and drop off materials in the midst of construction?

Several Canadian towns have a clever, yet simple idea -- make it easy for them.

In 1998, the towns of Banff and Canmore and the Municpal District of Bighorn formed a regional commission to deal with waste management issues within the Bow Valley region. It proved to be a match made in recycling heaven.

The Bow Valley Waste Management Commission (BVWMC), governed by a board of directors that includes an elected official from each of the three municipalities, set fairly simple original goals -- organizing and expanding regional programs and reducing duplication of services to save costs.

The commission has since been involved in a number of initiatives, including recycling education, school recycling programs and a demonstration composting program.

But the commission knew public education was only part of solving the problem. In an ambitious move, the committed actually purchased a local 80-acre landfill, which is continues to run. In addition, the committee created a location for collecting dry waste management that includes recycling capabilities for asphalt, concrete, scrap metal, kiln dried lumber and refrigerators.

Through its hands-on efforts, the committee has increased construction recycling from less than 14 percent to whopping more than 60 percent diversion. That's key for an area in which dry waste accounts for almost half of the total waste stream, the Rocky Mountain Outlook reports.

And the iniative continues. Most recently, the town of Banff's Banff Housing Corporation, a non-profit housing authority that constructs local properites, has voluntarily signed on for a new recycling program, encouraged by the BVWMC. The Banff Housing Corporation has agreed to initiate the use of large sturdy bags to sort metal, drywall and lumber scraps at its latest residential development site in Middle Springs this summer, the Outlook reports.

The bags are part of an ongoing effort in Banff to reduce overall landfill waste produced by new construction; but it is of note that Banff didn't just slap a must-recycle mandate on the project. Since Banff's construction sites are typically small, the bags provide a viable sorting solution that will take up less space than bins.

"One of the issues facing them is limited space on construction sites and the other issue is ease of disposal for small-scale development projects," Branff town planner Megan Squires told the Outlook. "We will explore opportunities to assist contractors to overcome barriers to on-site waste separation."

Bravo. Commissions and local authorities working with construction companies to find solutions that help reduce waste without interfering with production is a crucial step in getting builders to buy in to recycling program.

Now, it's true that this situation is unique in that the builder, Banff Housing Corporation, is connected to the city -- it is a non-profit organization and the town is its major shareholder -- and therefore more likely to agree with construction suggestions.

However, falling behind schedule is a problem for every construction site, and overtime costs and missed deadlines are something no non-profit wants to (or often can) deal with. The town worked with the builder to create a mutual solution for waste management; city connection aside, that's a lesson to be learned for all cities concerned with construction waste.

In fact, providing agreeable waste solutions will be even more urgent with private construction companies. With pressing concerns like site safety, keeping on budget and making a project's deadline, recycling may not be the first thing on a developer's mind.

But with the massive amount of waste construction sites can create -- construction and demolition waste totaled 4.1 million kilograms in 2006 in the Banff region -- Banff recognized the need for responsible waste removal, and it was willing to make things as simple as possible for builders in order to set its recycling program in motion. North American cities, take note.

Georgia Bank Gives Green a Thumbs Up

Savannah, Ga.'s United Community Bank recently announced a special financing program for green building projects. It's not the first bank to offer green incentives, but the bank's program itself -- and really, all programs like it -- is a nod to sustainable building.

Here's the deal: Property owners, qualified builders and general contractors can receive a 25 basis point reduction in construction financing for any commercial or residential project that achieves sustainable LEED (Leadership in Energy and Environmental Design) certification from the U.S. Green Building Council or EarthCraft certification from Southface Energy Institute.

“In the spirit of stewardship and sustainability, United Community Bank – Savannah wants to do its small part to promote a greener, a healthier approach to development, an approach that fosters better stewardship of our limited natural resources,” says United Community Bank – Savannah President, Mike Lee. “The longterm ‘greening’ of our communities must begin one person and one structure at a time. Through this special initiative we hope to motivate and facilitate green construction and help secure a healthier Savannah for decades to come.”

It is an admirable statement, considering it's coming from a bank, and not from an environmental group. Banks are, after all, businesses. Businesses that have a tremendous impact on the communities they serve, true. But at their core, businesses.

That's not to say banks don't have a heart. I've worked with a number of financial institutions in my career, editing publications and creating marketing programs, and many of them sponsored very benevolent educational and assistance programs. One bank spent months creating a program to reach out to its at-risk customers, people who had defaulted on their mortgage. The bank's marketing team spent weeks agonizing about the best, most sensitive and non-threatening way to reach those people with the intent of trying to work out a plan to save their homes.

But each of those type of projects had a strict budget. Each project's desired results, while in some ways philanthropic, were to keep customers, which at its most basic level, is a business decision. And it follows, then, that any bank offering sustainability incentives must see green building as a growing trend, capable of bringing in enough business that it made sense to align itself with the green community now. Banks are, after all, in business to make money.

That is not a bad thing. In fact, it is a great thing! If lending institutions are jumping aboard the green bandwagon, that's a more concrete sign that green makes sense. It's even more telling than the statements from numerous builders who stress long-term savings, or the cries of the environmental advocates who emphasize the need for sustainability, or even the ordinances passed by cities and businesses who voluntarily decide to build green.

Savannah currently has almost a half dozen major LEED projects under construction, including two loft structures, a youth shelter and a school. More than 30 homes are being planned for a community that will be built to EarthCraft energy specifications, and a historical home is being developed within the LEED for Homes pilot program. 

Although emotion clearly played a part in United Community Bank's decision, it stands to reason the bank saw green as a trend that has potential to increase even more. By creating these incentive programs, banks aren't just saying this could or should happen -- they are saying it will.

And they're putting their money behind it.

Mulch Ado About Something

Using sustainable materials during construction is a hot concept these days. From recycling wood, glass and other items to purchasing eco-safe alternatives to the usual supplies, builders are touting the long-term savings and positive environmental effects homeowners can receive from going green.

And yet, there is less discussion about the waste created by construction -- green or otherwise -- and the challenges disposing of said waste can pose.

Just ask Houston (the city, not Whitney.) Facing a proposed landfill increase and the recent demolition of several historical houses, Houston has realized making room for progress can also mean making a giant mess. A recent article in the Houston Chronicle cited EPA statistics that indicate residential demolitions sent 19.7 million tons of debris to landfills in the United States in 1998, the most recent year for which landfill statistics are available.

Throw all demolitions except for road and bridge debris in the mix and that number spirals to 136 million tons. The result? U.S. landfills receive an average of 2.8 pounds of demolition waste per day for every person, the Chronicle reported -- numbers which are most likely higher in the Houston area.

The article also said construction of a typical new 2,000-square-foot house produces another 8,000 pounds of debris. Historical homes like the ones in Houston typically produce more because construction may disturb mature trees, creating additional waste.

But the issue is about more than garbage piles. According to the EPA, whose Landfill Methane Outreach Program seeks to find alternative energy uses for landfill-produced gas, landfills contribute signficantly toward global warming via the release of carbon dioxide and methane, which is of particular concern because it is 21 times more effective at trapping heat in the atmosphere than carbon dioxide.

Clearly, reducing construction site waste needs to be a priority. Waste reduction initiatives include:

• The Canada Center for Mineral and Energy Technology (CANMET) Advanced Houses Program showed builders how to reduce waste by using recycled-content building materials and by practicing resource-efficient construction and demolition methods through its 1990s home building program. Homes built under this program were used as examples, sold and are now occupied by homeowners.

• Alameda County, Calif.'s Waste Management Authority joined with the Alameda County Source Reduction and Recycling Board to form the StopWaste.Org public agency. The agency is open to commercial and other partnerships and offers programs on green building, recycled product procurement and waste reduction. The agency has worked to develop local green building policies with member agencies and gave large- and medium-sized waste generators technical help to reduce waste.

• The Wisconsin Department of Natural Resources has published a five-page guide on removing debris, available for free on its Web site, containing recycling tips.

• PATH, a public-private partnership for advancing housing technology, has created a number of reports on  harvesting materials from buildings before demolition, construction recycling and disposing of residential construction waste.

• And cities such as Austin, Texas; San Francisco, California and Portland, Oregon, which requires projects of $50,000 and above to recycle job site waste, have initiated green building and deconstruction programs.

Garbage is an unavoidable byproduct of life -- especially where construction is concerned. As the need for new residence space increases, construction sites will continue to create waste. Hopefully, as the benefits of green building become more and more known and the process itself becomes more mainstream, responsible debris removal will be part of the package.

A Green Interior Design Scheme

I was flipping through my CB2 catalog the other day, admiring the comma-shaped plates, when I stumbled across a $50 corkboard. The price caught my eye. Fifty bucks? For something most often found in a dorm room?

But then, thanks to the product description, I realized why: It's sustainable. Under the heading "eco message," CB2 describes the product as a "recyclable, lightweight cork alternative" that "lives the green message." (It's made of charcoal polypropylene.) Ah ha. Well, OK, maybe that is worth a little more. But I was surprised to see CB2 thought so, too.

Which got me to wondering -- does CB2 now live the green message? I've been a fan of the Crate and Barrel offshoot for years, mostly because it's only two retail stores are in Chicago (New York is getting one this fall), which made browsing easy because I live in the Windy City, and also because CB2 for some reason always carries a large amount of orange-colored items, and I painted my apartment orange two years ago (it is not unlike living inside a giant yam, but I like it.)

As it turns out, not only has CB2 added green products to its shelves, its sister store, Crate and Barrel, has also. From an eco-travel book at CB2 to an entire furniture collection at Crate and Barrel, ecology appears to be making its way indoors via major retailers.

Crate and Barrel's Lockport Collection is made with sustainable materials, including a soy-based poly-foam that fills its cushions, and contains hardwood frames certified by the Sustainable Forestry Initiative and the Forest Stewardship Council. And it's practical, too: The couch is available in 18 color options, with washable slip covers.

Eco-friendly building materials such as energy-saving lights and formaldehyde-free cork flooring are well-known in the architectural community, but when it comes to decorating accents, it's a growing business:

• Pottery Barn sells bowls made of recycled glass.

• The Container Store sells newsprint bins made of recycled newspaper and storage boxes made from recycled fiberboard.

• Restoration Hardware has sustainable pool accessories, such as the chaise lounge made from Sustainably harvested Indonesian teak.

• Williams-Sonoma announced in November of last year that 95 percent of the paper used in its seven catalogs would come from sources certified by the Forest Stewardship Council.

Know of any other eco-friendly mass merchandised home items? Let us know. Out and About will be keeping a master list to post in a future blog -- so let us know what green items you have around your home!

Going Green is Trendy -- but is Green Design?

According to recent news, ecological concern is quite fashionable.

Sometimes literally. Newspapers and tabloids alike are buzzing about British designer Anya Hindmarch's eco-friendly shopping tote, a $15 canvas bag with "I'm Not a Plastic Bag" printed on the side that is sold in grocery stores, said to be the must-have bag this season. Twenty thousand were sold in a matter of hours when the bag went on sale in April in England, after women lined up at 2 a.m. for the store's 9 a.m. opening; near riots broke out in Taipei, Taiwan when the bag premiered in July. A mall had to be shut down in Hong Kong the same month because of bag crowds.

The limited-edition bag is an example of clever cause marketing, but it's also a strong indication that green's trendiness has hit a high note. The fact that Hindmarch could design something primarily for a practical environmental use -- according to Time, 88 million plastic bags are used per year in the U.S., and they can take 1,000 years to decompose -- that consumers elevated into a must-have social status marker (as so many purses are) shows how trendy aligning oneself with green design now is. (Because frankly, people aren't buying this thing to enhance their wardrobe -- the bag isn't anything much to look at. It, in fact, looks very much like what I used to carry my piano books in to lessons as a child.)

Just as many women feel wearing a designer Prada bag sends a message of style and class, swinging an "I'm Not a Plastic Bag" tote on your arm says I'm thoughtful, I'm conscientious, I'm in the know. (And clearly, I don't mind long lines.)

Yet fashion isn't the only world in which going green is becoming a sign of status. Magazines such as Vanity Fair and Fortune have published green issues in the past year; even the Vatican plans to offset its emissions, The Christian Science Monitor reports.

And then ... there is housing. Some industry analysts, including Harvey Bernstein, vice president of industry analytics and alliances of McGraw-Hill Construction, feel green design is about to become mainstream, New Jersey's The Record reports. Bernstein claimed the move is imminent in the June Residential Green Building SmartMarket Report, a joint National Association of Home Builders and McGraw-Hill study. (McGraw-Hill Construction also recently estimated green building will grow this year to a $12 billion industry.)

There are other signs in the industry that indicate green building is being embraced. For example, several companies have flourished in a down turned industry by focusing on green products, HGTVPro.com reports -- including Honeywell International, which expanded from foam insulation and rose 20 percent in 2006, and Georgia-Pacific Corp., who with paperless wallboard doubled sales in 2006.

Developers are also acknowledging green building. For the first time ever, this year's Southeast Builders Conference was held in mid-July in conjunction with the Florida Green Building Coalition's trade show and educational conference at the same Florida convention center, allowing the groups to intermingle and giving local builders greater exposure to green design, the Palm Beach Post reported.

And recently, the statements in the 2006 Green Building Update, written by Jerry Yudelson, P.E., LEED AP, principal with Yudelson Associates, gave the green industry a public boost. Yudelson estimated that U.S. Green Building Council's Leadership in Energy and Environmental Design for New Construction (LEED-NC)  registrations will more than double during the next four years, from 1,122 in 2006 to more than 2,400 in 2010, CENews.com reported.

Green construction may not be as trendy as the I'm Not a Plastic Bag tote (rare versions of which are selling for as much as $1,000 on eBay, incidentally), but it's picking up speed. And, as more cities encourage commercial use of green design and more homeowners learn its long-term cost benefits, sustainable design just may someday be the season's must-have construction site accessory.

Flush Your Way Into Green Design

Want to go green, but can't afford a complete home renovation?

A recent article in the Journal News offered some great tips for starting small -- by just making your bathroom green.

Sustainable design is all about attention to detail, and while that typically involves careful planning before construction, making the following small changes to your home bathroom -- yes, really, the bathroom -- can have a big effect. Some of the suggestions included:

• Toilets: Get a new one. Federal law in 1994 limited toilets to 1.6 gallons per flush; older ones can be 3.5 to 6 gallons (per flush).

• Cabinets: Look for wheatboard-made cabinets, made from wheat straw, which is much more green than particleboard. If you're making your own, look for wood with the Forest Stewardship Council logo, which means the wood has been certified and has come from sustainable forests.

• Flooring: Opt for natural products - cork, natural linoleum and bamboo. If you want tiles, try recycled glass or porcelain.

• Bathroom accessories: Try to use products containing recycled materials in them, such as paper toilet rolls or glass toothbrush holders. You can also try to locate toilet brushes with natural coir fiber from coconut shells.

• Cleaners: Wipe down using non-toxic or organic cleaning solutions. Look for organic certification, and check the label for natural ingredients.

Going green is a process -- and while the commercial and residential construction industry is tentatively embracing sustainability, homeowners aren't helpless. Making minor changes around the house can have a greater impact than you might imagine.

New Green Building Standard May Provide Sustainable Building Framework for Building Codes

A new green building standard backed by the U.S. Green Building Council (USGBC) is moving closer to approval -- and, unlike the voluntarily LEED (Leadership in Energy and Environmental Design) program, this new standard may eventually be required as a prerequisite for some new commercial buildings and major renovations.

Standard 189P (Standard for the Design of High-Performance Green Buildings Except Low-Rise Residential Buildings) could be the nation's first green principle to be included in building codes, if the standard's designers -- the American Society of Heating Refrigerating and Air-Conditioning Engineers (ASHRAE), Illuminating Engineering Society of North America (IESNA) and USGBC -- see their plan succeed.

Even if Standard 189P makes it, it doesn't mean LEED ratings will just go away.

"USGBC recognizes a need to reach beyond the market leaders served by LEED and partnering to develop a baseline standard will raise the entirety of the commercial building marketplace to a new level of resource efficiency," USGBC said on its Web site. "USGBC’s vision is to transform the way buildings and communities are designed, built and operated, enabling an environmentally and socially responsible, healthy and prosperous environment that improves the quality of life."

The standard is designed to correspond to ANSI/ASHRAE/IESNA Standard 90.1, developed in the 1970s and still used internationally today in building codes. Standard 189P's creators hope it can reduce energy costs and carbon emissions by at least 30% over Standard 90.1, according to the USGBC. Lighting and water efficiency, indoor air quality and building on a sustainable site are also be part of the proposed standard.

So where does it stand now? There are still a few hoops to jump through. The public can send comments to the committee until July 9 -- so if you've got something to say, say it now -- after which point they will be compiled and reviewed. The standard is expected to be published before the end of 2007.

And then ... its supporters will begin the task of getting the standard implemented, most likely by lobbying local and state jurisdictions to add it to building codes. In areas that add Standard 189P to the building code, green buildings could be required to meet the standard's specific requirements to receive a a Certificate of Occupancy.

The standard's creators have said they are working to keep its requirement list reasonable and economical to spur its acceptance. The cost factor is another thing to consider -- although it's unclear yet what, if any, costs will be associated with adding the standard to local building codes, it is possible it may be minimal (or non-existent) when compared with LEED certification, which can be expensive (an American Chemistry Council report prepared by the Northbridge Environmental Management Consultants found obtaining LEED certification can add 4 to 11 percent to a project's construction costs; for large projects, that can be tens of thousands of dollars).

But bargains aside, the real story is the standard's potential power. Standard 189P could have a major impact in cities like Chicago, where local governments have pledged all new county buildings will be LEED certified. With an already government-friendly attitude toward sustainability, convincing a city like Chicago to incorporate an eco-standard into its building code seems like a reasonable request -- and one that could create a green design push in the private sector.   

And from there? The solar-power-providing sky's the limit.

The Politics of Going Green

Green building is often thought of as a liberal issue -- lumped in with other environmental causes that democrats support.

And in some ways, that makes sense -- democrats are widely identified with ecological issues because the party for years has championed environmental reform (Al Gore's "An Inconvenient Truth" wasn't actually about things that are inconvenient, after all.)

But to call green building a liberal initiative is unfair -- and when it comes to widespread acceptance, it can be damaging. It's important to note several republicans also support green living.

Take, for example, Wisconsin Sen. Robert Cowles (R-Green Bay) and State Rep. Phil Montgomery (R-Ashwaubenon). The two successfully proposed an energy efficiency act in 2006 that will increase the amounts of renewable energy consumed in Wisconsin.

Some of Cowles' and Montgomery's suggestions included creating small-scale manure-to-energy devices, known as anaerobic digesters, and wind turbines -- which are very green indeed.

The bill was such a success that Cowles, a chairman of the Senate’s Committee on Energy, Utilities and Information Technology, was later honored by the Midwest Energy Efficiency Alliance (MEEA) for making energy efficiency a hallmark of his career as an elected official.

Cowles isn't the only conservative lauding the effects of sustainability. California's notably conservative (and muscular) governor Arnold Schwarzenegger is a huge green design enthusiast, calling for public buildings to be 20 percent more energy efficient by 2015 and encouraging the private sector to embrace the same principles.

Schwarzenegger also created a Green Action Team to implement green practices and increase energy efficiency in California.

It's true that Schwarzenegger is often said to be moderate in part because of his environmental views -- but that doesn't change the fact he ran, was elected and serves as a republican. Despite some left-leaning views, he has very much aligned himself with the Republican Party.

And Schwarzenegger put that relationship at risk in 2005 when he worked with dems to reduce greenhouse-gas emissions. Although some reports say relations are slightly strained between the governor and other republican politicians as a result, conservative voters still love him. A recent poll by the Public Policy Institute of California pegged his approval rating within the party at 75 percent, according to MediaNews.

Perhaps Schwarzenegger is just listening to his constituents. For the first time, a majority of Californians -- 54% -- say they think global warming poses a very serious threat to the state’s future economy and quality of life, according to a recent Public Policy Institute of California survey.

The point? Sustainability doesn't need to be a political issue. Green can be good, and if the Terminator can sell that message to his conservative party supporters, there's no reason other politicians -- of either party -- can't forget any connotations the word "green" can invoke and simply focus on the facts.