sc magazine, vol. 1, no. 2

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Sustainable Communities TM NMHC Predicts Rising Demand Rental Housing: Vol 1, No 2 March/April 2011 www.p4sc.org $12 IN THIS ISSUE California’s “anti-sprawl” planning process gets underway ................. p. 22 The battle over high-speed rail ........... p. 26 Regional Focus: North Carolina............ p. 34 Weatherization races the clock ................. p. 44

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Page 1: SC Magazine, Vol. 1, No. 2

Sustainable Communities

6i-2

TM

NMHC PredictsRising Demand

Rental Housing:

Vol 1, No 2 • March/April 2011 • www.p4sc.org • $12

IN THIS ISSUE

California’s “anti-sprawl” planning process gets underway . . . . . . . . . . . . . . . . . p. 22

The battle over high-speed rail . . . . . . . . . . . p. 26

Regional Focus: North Carolina . . . . . . . . . . . . p. 34

Weatherization races the clock . . . . . . . . . . . . . . . . . p. 44

Page 2: SC Magazine, Vol. 1, No. 2

High Stakes Land Use Decisions?Don’t make a move without consulting our database

When it comes to land use policies and project entitlements, you can’t afford to act without a firm command of the facts and precedents. Now you can get the information you need in one very user-friendly source. It’s the Land Use Research Library from the Partnership for Sustainable Communities.

Whether you are a developer, a city land use official, or an elected leader, PSC’s Land Use Research Library brings you instant access to hundreds of academic studies and surveys on:

• The impact of zoning policies • Housing cost trends and influences • Property values • The most effective economic development measures • Effects of various community development strategies • Economic contributions of inclusionary zoning and affordable housing development

The Library is a benefit of membership in

Partnership for Sustainable Communities.

Join Partnership for Sustainable Communities for just $79 and receive:

• Must-readreportingandanalysison the new land use policies, green building practices, and innovative development strategies that are remaking our cities and towns in Sustainable Communities maga-zine. Published six time per year, this is the only journal that brings together all the threads of change on land use, development, energy, and transit into one succinct, well-organized, highly readable package.

• Opportunitiestonetworkandpromote your organization in our MemberDirectory.

• Criticalnewsalertsinthesubjectareas of interest to you.

• Premiumwebsitecontentatnoextra cost (view an example here).

• DiscountedregistrationfortheSus-tainableDevelopmentConference

Join today and get the tools you need to make good land use decisions. You will also be supporting our advocacy work to advance the goal of sustainable commu-nities including policies that encourage the development of affordable housing near jobs and transit. Join today, and be part of the new era of sustainable plan-ning and development.

For more information, go to www.p4sc.org.

Or request a FREE membership information packet by calling

415-453-2100 x302.

Page 3: SC Magazine, Vol. 1, No. 2

March/april 2011 • SuStainable CommunitieS 1

14 multifamily making a Comeback:

Doug Bibby and the National Multi-housing council see a boom in apartment development coming in response to rising consumer demand.

20 Finance:The Obama administration’s plans to reform the housing finance system call for winding down Fannie Mae and Freddie Mac and cutting back Fha single-family programs. But Fha rental housing programs would be strengthened and expanded.

22 California: regional planning organizations hit high gear in public discussion of land use and transportation planning under the state’s “anti-sprawl” legislation (S.B. 375).

26 transportation & Development:

Federal funding for high speed rail development sparks debate. Find out why three governors rejected the federal money and what advocates and critics are saying about the issue.

37 Cities See High Value in “Complete Streets”

Find out how cities are making their streets much more vibrant and active without spending a lot or hurting traffic flow.

44 Financing energy efficiency:Time is running out for spending $5 bil-lion appropriated for the Weatherization assistance program. Will the money be spent before the March 2012 deadline? how much will go to improve the energy efficiency of multifamily housing? Find out with our in-depth report.

DepartmentS

2 Letter from the Editor

4 Letters to the Editor

5 New Directions

6 Around the Nation

• Florida • illinois • Oregon

• Georgia

8 Land Planning & Design

10 Green Building & Design Duany sees decline in strict green building standards

12 Urban Planning & Design apa president sets new direction

on the Cover:as president of the National Multi-hous-

ing council, Doug Bibby advocates in

Washington for rental housing, making a

strong case for the benefits to commu-

nity sustainability of properties like the

2400 M apartments in Washington, D.c.,

a project of Equity residential.

photo by Dennis Whitehead

Features

March/april 2011

2637

8

644

contents

Page 4: SC Magazine, Vol. 1, No. 2

SuStainable CommunitieS • March/april 20112

Letter from the editor

With the presidential election of 2012 entering its early

stages and budget battles raging in Washington, americans

must choose sides.

long-term thinking has never been popular in american

government, least of all if it promises to hurt the profits of any

entrenched interests.

The Obama administration challenged that paradigm. it won

federal appropriations to fund programs and investments that

will make our communities more sustainable over the long run.

a key part of its economic stimulus package was a renewed

investment in america’s passenger rail system and other intracity transit programs. Billions

of dollars were appropriated for these programs, including the beginnings of a high-speed

passenger rail network in california, New York, illinois and other major markets.

Now, with the economy recovering and the scent of political opportunity in the air, repub-

licans in the house are attacking on a broad front, targeting spending for grants for regional

planning, energy conservation, and community Development Block Grants, among other

domestic programs.

But the pivotal issue in the fast-escalating political warfare in Washington will be the

fight over what kind of wheels to subsidize: steel or rubber.

republicans in Washington and new republican governors in Florida, Ohio and Wisconsin

are trying to choke off proposed funding for passenger rail, especially the high-speed variety.

They have framed this in terms of deficit reduction. hogwash. They are quite happy to

spend billions on roads and bridges but would “zero out” trains and mass transit.

They ignore the near impossibility of spending enough on roads to serve an increasing

population without massive congestion, the wackiness of a gas tax frozen at 1993 levels and

the sheer insanity of depending so heavily on foreign oil. (We take for granted that they don’t

consider air pollution and greenhouse gas emissions to be a problem.)

The coming 20 months will have reverberations on our country for decades to come. if

republicans take the Senate or White house, they will finish what the house is starting now.

They will not just terminate Obama’s initial steps to reinvest for the long-term, they will wipe

out any sign that they ever existed.

We have to fight back, and we must fight especially hard on the threshold issue of trans-

portation. We must follow the lead of people like christine Kehoe, the california state senator

who represents San Diego.

Defying powerful political forces, Kehoe has introduced a bill (S.B. 468) that would require

mass transit to be improved in coastal communities before the state could add lanes to nearby

freeways.

if we follow Kehoe’s lead, the Obama initiatives will survive and our oil-addicted country

will be on a new path. if not, just imagine what the history books will say about the choices we

made in this pivotal decade.

Make your voice heard in the coming political battle. and if you are not already a member

of the partnership for Sustainable communities, please join today and help us make america

sustainable, one community at a time. learn more at www.p4sc.org.

America’s Choice Sustainable Communities Magazine

Editor and PublisherAndre Shashaty, [email protected]

Office & Member Services ManagerCarol Yee, [email protected]

Art DirectorKay Marshall, [email protected]

Advertising & Conference Sales ManagerWendy Chaney, [email protected]

Assistant EditorMegan Truxillo, [email protected]

Board of Directors Rev. Betty Pagett, Community

Acceptance Strategist

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

Patrick Sheridan, Senior Vice President for Housing Development,

Volunteers of America

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

Northern California

Leadership Advisory Board Richard Baron, Chairman and CEO,

McCormack Baron Salazar

Doug Bibby, President, National Multi Housing Council

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

Urban Development

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

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

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

California Secretary of Education

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

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

DirectorDepartment of City Planning for Raleigh, N.C.

Sustainable Communities Magazine is published by Partnership for Sustainable Communities (“PSC”) is a private nonprofit organization incorporated in Califor-nia. It is not affiliated with the United States federal in-teragency “Partnership for Sustainable Communities,” which is a venture between HUD, DOT and EPA. PSC is not supported by government funding. It depends entirely on membership dues and charitable donations to cover its costs. To make a donation, go to www.p4sc.org and click on the “donate now” button at the top of your screen in the green bar on the left. To join our cause, click on “become a member” also in the green bar.

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

Sustainable Communities

6i-2

TM

By Andre Shashaty

Vol 1, No 2 • March/April 2011 • www.p4sc.org

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

At Least 30% Certified Forest Content

SFI-01042

Page 5: SC Magazine, Vol. 1, No. 2

www.enterprisecommunity.org

LIHTC & New Markets Tax Credit Equity | Multifamily Mortgage FinancePredevelopment & Acquisition Loans | Public Policy | Technical AssistanceAsset Management | Housing Development | Capital Markets

Enterprise has proven that green methods and materials can signifi cantly

raise operating revenues by lowering energy and water consumption.

Building green also cuts greenhouse gas emissions and improves transit

access, creating healthier homes in pedestrian-friendly places. Tools like

the Enterprise Green Communities Funds make it possible.

TH I N K

RETHINK

Enterprise is committed to making all affordable homes green by 2020. Are you in?

THINK GREEN COMMUNITIES CAN’T BE AFFORDABLE? THINK AGAIN.

Enterprise-Green2011.indd 1 2/18/11 2:36 PM

Page 6: SC Magazine, Vol. 1, No. 2

SuStainable CommunitieS • March/april 20114

to the editor:

congratulations on publication of

the premier issue of Sustainable com-munities magazine. On behalf of the U.S.

Department of housing and Urban De-

velopment, i commend you and your col-

leagues for putting out a package of very

informative coverage on a wide range of

important issues related to sustainability.

There is a great deal happening here

at hUD to promote sustainability, and we

appreciate your coverage of our activi-

ties. however, the department and the

Obama administration are just start-

ing what is a very long and challenging

process. changing the approach and

focus of government takes hard work.

achieving coordination of federal trans-

portation, housing, development and

environmental programs in pursuit of

sustainability is a long-term project.

We must overcome many challenges,

including political opposition and budget-

ary constraints. We look to the partner-

ship for Sustainable communities as a

critical supporter of the federal govern-

ment’s interagency partnership. We wish

you good luck in attracting government

officials and real estate professionals to

join your organization.

Shelley poticha Director, Office of Sustainable housing and communities US Department of housing & Urban Development

to the editor:

as executive director of the Form-

Based codes institute (FBci) i joined the

partnership for Sustainable communities

as a member because i am impressed by

the quality and range of the articles in

this first issue. as you may know, FBci

is a not-for-profit organization whose

members are leading practitioners in

urban planning, design and law. in addi-

tion to our educational outreach through

courses, webinars, our website and annual

awards for well-crafted and adopted form-

based codes, our members also operate

much as a think tank - discussing how to

improve and further the practice of FBc.

as a leader in the movement to cre-

ate walkable, mixed-use and sustainable

places, our organization offers a wide

range of information on cutting edge

issues in urban design and regulation,

including sample form-based codes. i

invite your readers to visit our web site

at www.formbasedcodes.org/

i wish you success with your fine

publication.

carol Wyant, Executive DirectorForm-Based codes institute

Housing that makes sense.

Today and tomorrow.34NORTH

We believe that sustainable communities and sustainable business are one in the same.

That’s why for over 50 years we have supported sustainability by creating affordable housing opportunities, developing urban infill sites, rehabilitating historic buildings, and constructing LEED certified buildings.

At Herman & Kittle Properties, Inc., we create value through real estate.

Indianapolis, Indiana hermankittle.com 317.846.3111

LetterS to the editor

Page 7: SC Magazine, Vol. 1, No. 2

March/april 2011 • SuStainable CommunitieS 5

Census Shows population Growth Still Centered in Sun belt initial results from the 2010 census

show a continuation of a long-term

shift in the U.S. population from the

north central states to the Sun Belt.

The 2010 census revealed a total U.S.

population of 308,745,538 a 9.7% in-

crease from the population of about

281 million in 2000.

The fastest growing states, with

growth of over 20% since 2000, were

arizona, idaho, Nevada, Texas and Utah.

however, in arizona and Nevada,

the rate of growth actually slowed from

2000 to 2010 compared to the blister-

ing pace set in 1990 to 2000.

The only places that actually lost

population during the last ten years

were Michigan and puerto rico. howev-

er, the relative increases and decreases

in population are reflected in the ap-

portionment of seats in the house of

representatives.

States expected to lose one or more

seats in the house include illinois, iowa,

louisiana, Massachusetts, Michigan,

Missouri, New Jersey, New York, Ohio

and pennsylvania.

States expected to gain seats in the

house include arizona, Florida, Georgia,

Nevada, South carolina, Texas, Utah and

Washington.

The growth of the nation’s foreign-

born population is one of the most

important trends, according to find-

ings from the 2010 census and the

american community Survey. The data

shows that 38,500,000 people, or 12.5

percent of the population, were foreign

born in 2009.

The percentage of the population

that is foreign born has grown signifi-

cantly since the low point in the 1960s.

Much of the growth is attributable

to increases in the hispanic or latino

population. in california, for example,

this segment increased 37.6% over ten

years to 27.8% of the population, while

the non-hispanic, non-latino population

increased only 1.5% to 62.4% of the

state’s population.

affordable Housing Subsidies under Siege

Sponsors of subsidized housing are

still fighting hard in Washington, D.c. and

state capitols to try to fend off cuts in

government support. however, they are

also preparing for a worst-case scenario

in which funding cuts make new develop-

ment infeasible for some time.

Development of new affordable

housing has relied heavily on the use

of federal low-income housing tax cred-

its, which attract private equity invest-

ment to eligible projects. projects also

depend on “soft” secondary financing

and government grants. But state and

local budget problems are forcing se-

vere cutbacks.

in california, for example, Gov. Jerry

Brown has shut down most new state

funding for affordable housing. he also

proposed to close down the state’s re-

development agencies, a key source of

funding for affordable housing. at press

time, advocates were struggling to

preserve some redevelopment agency

funding for affordable housing but the

outlook was uncertain.

in Washington, the house of rep-

resentatives was seeking deep cuts in

federal housing and community devel-

opment programs, as well as elimination

of funding for regional planning grants

to promote sustainable communities.

The funding cuts are so severe

that some housing advocates fear a

long-term reduction in the capacity of

nonprofit community-based develop-

ment groups. Bigger organizations are

changing their focus from development

to acquisition of existing properties and

management of their current holdings.

There is a risk that layoffs and

shutdowns will lead to a reduction in

development capacity, making it harder

to restart affordable housing develop-

ment when government funding starts

to flow again. ❧

NeW direCt ioNS

Page 8: SC Magazine, Vol. 1, No. 2

SuStainable CommunitieS • March/april 20116

1 FloridaFloriDa lonG ranGe

tranSportation plan

CallS For HiGH-SpeeD rail

Despite Florida Governor rick Scott’s

concerns, far-sighted Floridians continue

to consider high-speed rail as an integral

piece of Florida’s transportation future.

a statewide high-speed rail system is

part of Florida’s recently released 2060

Florida Transportation plan, the state’s

long-range transportation plan.

The Florida Department of Trans-

portation, in conjunction with numerous

government, civic and private partners

developed the 2060 plan in a lengthy

year-long, public process. partners in-

cluded 1000 Friends of Florida, the U.S.

Department of Transportation and the

Florida league of cities.

The plan, setting out transporta-

tion policy and goals for the next 50

years, is the first of its kind in the state.

ambitious plans include developing and

operating a statewide high-speed and

intercity passenger rail system connect-

ing all regions of the state and linking to

public transportation systems in rural

and urban areas. The 2060 plan also

commits Florida to make transportation

decisions that support and enhance liv-

able communities.

“in a state like Florida, a narrow

peninsula with substantial wetland and

other undevelopable areas, develop-

ment of train-based alternative infra-

structures to roads and highways will

help to protect our environment and

concurrently will grow new economies,

better community patterns and likely

will be viewed as wise decision-making

by future generations,” said 1000

Friends of Florida, member of the 2060

plan Steering committee.

The 2060 plan, including its call for

high-speed rail, ties transportation to the

probable future development patterns in

the state:

“higher density, mixed use urban

development and rural employment

centers – connected with multimodal

transportation corridors and separated

by open spaces – will be a key emphasis

of development over the next 50 years.”

to view the 2060 Ftp in its

entirety visit http://2060ftp.org/.

2 illinoisaDVoCatinG For urban

aGriCulture in CHiCaGo

chicago residents may soon see

a renaissance in community garden-

ing and urban agriculture: New zoning

provisions, under consideration by the

chicago city council, would add com-

munity and commercial agriculture to

the zoning code, allowing these uses by

right in many parts of the city.

“For centuries, chicago’s fertile land

has been used to grow fresh produce

and create employment opportunities.

But today, city government stands in

the way of a renaissance of local food

production by limiting the size and

revenue potential of these enterprises,”

said new chicago Mayor rahm Emanuel

in support of the zoning.

Urban agriculture makes a vast

contribution to sustainable commu-

nity development, by greening often

blighted or vacant urban spaces, provid-

ing access to locally grown produce

and ensuring food security for many

low-income persons.

although not prohibited outright,

city zoning has stifled efforts by urban

agriculturalists by requiring exhaustive

red tape to open community gardens or

commercial farms and limiting the abil-

ity to sell produce directly to consum-

ers. When Growing home, a non-profit

organic farm, hatched plans to move

its operations into the city, it took two

years and designation as a “technical

institute” to fit within zoning laws.

AroUNd the NAtioN

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▲ Urban garden in Chicago

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March/april 2011 • SuStainable CommunitieS 7

Mayor Emanuel hopes the new

zoning will help provide fresh produce

to the 600,000 chicago residents who

live in neighborhoods that lack access

to fresh food.

For details on the proposed zoning

change see the advocates for urban

agriculture’s website at http://au-

achicago.wordpress.com.

3 oregonexpanSion oF eleCtriC

VeHiCle inFraStruCture

Electric vehicle (EV) infrastructure

is getting a boost in Oregon, where

San Francisco company EcOtality,

inc. began widespread installation of

residential EV chargers last month.

a massive roll out of residential

chargers is part of the company’s plan

to install over 1,100 public charging sta-

tions in the state, building a network of

chargers down the i-5 corridor.

“We expect most of our customers

to charge up their electric vehicles at

home so today’s residential charg-

ing station installation marks a major

milestone in putting in the necessary

infrastructure to support our EV-driving

customers,” said Joe Barra, director of

business model and program develop-

ment at pG&E.

The installation is part of the “EV

project,” a program to build EV infra-

structure in 18 cities nationwide. The

project is funded by the U.S. Depart-

ment of Energy through a federal

stimulus grant of $114.8 million, made

possible by the american recovery and

reinvestment act (arra).

For more information on the eV

project and eCotality chargers, visit

www.ecotality.com.

4 GeorgiaControVerSy in atlanta oVer

tranSportation SaleS tax

a proposed one-cent sales tax in-

crease to fund transportation projects

in atlanta has the public, and many in

government, up in arms.

The ballot measure, proposed for the

august 2012 election, will ask voters in

a 10-county atlanta region to approve a

one-cent sales tax increase to pay for the

construction and operation of a specific

list of transportation projects.

it isn’t the penny increase that has

citizens upset, but a perceived unfair-

ness in the distribution of transportation

taxes in the region and how transporta-

tion projects are chosen.

in two of the counties asked to vote

on the transportation tax, Fulton and

Dekalb, residents already pay a penny

more in sales tax than other counties to

fund Metro atlanta’s rapid Transit au-

thority, MarTa.

MarTa is the only major transit sys-

tem in the country that lacks dedicated

funding: it relies solely on the penny

taxes from these two counties for its op-

eration. a funding scheme, that has left

MarTa in financial straits.

last april, facing a $120 million

shortfall in revenue, MarTa employees

painted red Xs on 30% of the busses

serving the city, to represent the 30%

cut in service MarTa would need to en-

act to make up the shortfall.

in short, MarTa, along with the rest

of the transportation system in the state

sorely needs funding. But the referen-

dum expressly excludes funding from the

new tax going to MarTa, because the

tax is meant to fund new transit projects

outside of metro atlanta.

This has residents of Fulton and

Dekalb, already subsidizing MarTa to

the benefit of residents in other coun-

ties, unhappy with the new tax.

South Fulton commissioner William

Edwards said he’ll “absolutely” campaign

against the sales tax going on an august

2012 ballot, unless the legislature alters

the law. he wants lawmakers to rethink

having Fulton and DeKalb residents,

already paying a penny tax for MarTa,

paying the additional tax without reaping

the benefits of the additional funding.

MarTa General Manager Beverly

Scott predicts, without solid support in

atlanta, Fulton and DeKalb, the new sales

tax “is not happening, it won’t pass.”

One proposal for remedying the

law is to create a new regional transit

authority, vesting operation and funding

within one agency, as opposed to the

current multi-agency regime.

“We need a regional transit coordi-

nating agency to provide for greater ef-

ficiency, help prioritize our transit needs

and coordinate how we can best meet

those needs on a regional basis,” said

Norcross Mayor Bucky Johnson.

There are many supporters of such a

regional agency, including atlanta Mayor

Kasim reed, who has suggested the

need for regional transit legislation in

the past. ❧

▲ ECOtality charger installed in the

garage of an EV Project participant.

▲ Atlanta’s MARTA

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Page 10: SC Magazine, Vol. 1, No. 2

SuStainable CommunitieS • March/april 20118

GROUNDBREAKER:

LANd PLANNiNG & deSiGN

Construction Commences on Innovative Green Multifamily Building in British Columbia

taking advantage of the

many parks and public

facilities built for the

2010 Olympic Games, con-

struction has begun on a new

“green” multi-family building in

Vancouver, British columbia’s

False creek neighborhood. Slat-

ed for completion in July 2012,

the James at False creek is al-

ready 60 percent sold, accord-

ing to developers the cressey

Development Group.

With 155 units ranging from

553-1449 sq. ft., the James

boasts a number of innovative

features that make it a super-

green development. The archi-

tects, rafii architects of B.c.,

have won a number of awards for

their multi-family developments in

canada and the U.S.

brownfield redevelopment

The James development is part of

the larger brownfield redevelopment of

the False creek neighborhood that be-

gan in the 70’s. The James’s namesake,

James S. Doherty, was a well-respected

industrial figure in False creek.

Until the 50’s, the False creek neigh-

borhood was the industrial heart of Brit-

ish columbia, when industry left and the

area deteriorated. The city government,

with little public input, hatched a plan to

raze the brownfield site for freeway ex-

pansion. Fortunately, long-sighted activ-

ists fought the expansion, saving False

creek from a concrete future.

Through careful planning, False

creek became a vibrant mixed-use wa-

terfront community. Southeastern False

creek, home of the James, is the last

piece of the neighborhood to be devel-

oped. it received a boost in 2010, as the

host of the Olympic’s “athletes Village.”

Fully developed, Southeastern False

creek will house 16,000 residents.

low environmental impact Design

The James is following a leadership

in Environmental Design (lEED) silver

standard in its design and construction.

residences offer Energy Star rated

appliances, careful water efficiency

management indoor and out, and high

quality building envelope design to mini-

mize heating and cooling costs.

To keep electricity use to a mini-

mum, units are designed to maximize

the use of natural light, an important

feature in the often-overcast region.

Whenever possible, building supplies

are sourced locally and from recycled

materials. in addition, a minimum of 50

percent of construction waste will be

recycled. low-toxicity paints, sealants

and adhesives will be used throughout

the building.

To further minimize environmen-

tal impact, the Southeast False creek

Neighborhood Energy Utility (NEU)

generates the energy for the building.

By utilizing economies of scale, the

NEU can adapt to using a wide variety

of renewable “waste energy” options

that would otherwise not be available to

an individual building heating system:

NEU uses sewage heat recovery to sup-

ply approximately 70% of the annual

energy demand, eliminating 60% of the

carbon emissions associated with heat-

By Megan Truxillo

▲ The James rooftop deck

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March/april 2011 • SuStainable CommunitieS 9

▲ Front of the building showing the main tower and townhouses

ing buildings. You can learn more about the NEU on the city

of Vancouver’s website, www.vancouver.ca.

transportation & pedestrian oriented Development

cressey chose the Southeast False creek neighborhood,

in large part because of its close proximity to shops, restau-

rants and public transportation -- many of which, were built

for the 2010 Olympic Games.

Within walking distance of the development are multiple

grocery stores, restaurants and parks. The site also sits min-

utes from a streetcar, bus, aquabus and canada line stop,

connecting to downtown Vancouver, cambie village, the air-

port and B.c. suburbs. canada line is B.c.’s fully automated

rapid transit light rail system.

For residents that own cars, the garage offers electric

vehicle hookups. and to facilitate residents choosing to live

car-free, cOOp vehicles are provided.

Green Spacean innovative feature of the building is its massive 5,000

sq. ft. green roof. The roof, fully landscaped, will offer a chil-

dren’s play area, outdoor kitchen and community garden plots.

a large glass observatory will also make up a portion of the

roof, allowing residents to enjoy the roof during the winter

months.

For more information on the James, visit their website at

www.jamesliving.com. ❧

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SuStainable CommunitieS • March/april 201110

Charlotte, N.c.–Decrying the high

cost of “optimization” of devel-

opment in a lean time, andres

Duany called for a return to common

sense development principals that

harken back to the 19th century and

predicted declining use of the lEED

standards for building efficiency.

Speaking at the New partners for

Smart Growth conference here, Duany

took aim at one of the banes of the

modern developer’s existence—ex-

cessive regulation of development,

particularly the high cost of certifica-

tion of buildings under the U.S. Green

Building council’s lEED rating system.

The Miami-based new urbanist

architect said infrastructure and per-

mitting are “fantastically expensive.”

he blamed this primarily on “optimiza-

tion,” that is, the practice of imposing

increasingly detailed and strict regula-

tions in an effort to take development

from merely good to nearly perfect.

he took a swipe at city emergency

services officials for wanting too much

optimization of roads. But he saved

his strongest words for green building

certifiers.

he criticized green building stan-

dards that don’t give points for low

cost approaches like passive solar

heating, but encourage developers to

buy expensive windows to make sure

that “not an atom of air escapes.”

“Environmentalism got addicted to

optimization and we can’t afford it,”

Duany said.

“it’s absurd what you have to go

through to get lEED certified. it will

crash on its own. it already is.”

“it costs more to get a project certi-

fied under the lEED for neighborhoods

(lEED-ND) program than it does for me

to design it,” he said.

CAliFORNiA:

Duany Predicts Decline of LEED Standards

GreeN BUiLdiNG & deSiGN

Page 13: SC Magazine, Vol. 1, No. 2

March/april 2011 • SuStainable CommunitieS 11

international monetary Fund Headquarters in D.C., Gold leeD Certified

top 10 States for leeD Green buildings

Washington D.c. leads

the country, with 25.15

square feet of lEED-

certified commercial

and institutional green

building space per person,

according to the U.S. Green Building council’s

(USGBc) report. USGBc compiled the top 10 states

for lEED certified buildings per capita based on the

2010 census.

“Using per capita, versus the more traditional

numbers of projects, or pure square footage, is a

reminder to all of us that the people who live and

work, learn and play in buildings should be what we

care about most,” said Scot horst, USGBc senior

vice president of lEED. “2010 was a difficult year

for most of the building industry, but in many areas,

the hunger for sustainable development kept the

markets moving.”

The top states, including Washington D.C.:

• Washington D.C: 25.15 sq. ft. per person

• Nevada: 10.92 sq. ft.

• New Mexico: 6.35 sq. ft.

• New Hampshire: 4.49 sq. ft.

• Oregon: 4.07 sq. ft.

• South Carolina: 3.19 sq. ft

• Washington: 3.16 sq. ft.

• Illinois: 3.09 sq. ft.

• Arkansas: 2.9 sq. ft.

• Colorado: 2.85 sq. ft.

• Minnesota: 2.77 sq. ft.

Duany is a principal of the firm

Duany plater-Zyberk & company (DpZ),

and was co-founder of the congress

for New Urbanism with his partner

Elizabeth plater-Zyberk.

he called on the green building

movement to adopt a dual approach,

with one set of low tech standards and

one set of high tech standards.

“There are many low costs ways

to get 85% of the benefit of today’s

standards. We need $45 windows, not

$250 to $300 windows,” he said.

Duany half-jokingly called for

creation of a “lEED Brown” rating, in

addition to the current silver, gold and

Andres Duany is saying what many developers undoubtedly believe: The increasing demands of meeting lEED and other standards and certifications for green buildings has become way too expensive.

Duany believes current green building certifications are too focused on expensive, over-engineered measures and don’t give fair value to low-cost and traditional techniques, like those in evidence at Seaside, Florida, designed by Duany Plater-Zyberk & Co.

platinum ratings. he sug-

gested this could give builders

credit for using traditional but

low cost measures that are

not easy to quantify or certify.

he described these steps

as “the original green,” and

“what we did when we didn’t

have money.”

he said that high-density

development in urban loca-

tions which entails less reliance

on private cars should get a

free pass on any green build-

ing standards. “Don’t make

apartment dwellers install solar

power,” he said. They are doing

their part just by living densely

and driving less.”

he ridiculed the notion

that single-family homes

would ever lose popularity or

that they should be squeezed

out by public policy. But

he did suggest that they be

subject to more efficiency

requirements to compensate

for the inherent inefficiency of

this use of land.

Duany also had choice

words for government land

use and building officials.

in New Orleans, he said that

government standards for rebuilding

added costs that just about exactly

offset the amount of assistance the

government was going to provide, so

“no one can rebuild.”

What does Duany like these days?

“Slow development,” which he defined

as working up to appropriate density in

a gradual way, likening it to how towns

were developed in the 1800s. he spoke

of the benefits of one-floor retail, with

no housing above it, and of walk-up

apartments, both of which he said are

highly efficient. ❧

Page 14: SC Magazine, Vol. 1, No. 2

SuStainable CommunitieS • March/april 201112

When Mitchell J. Silver takes

over as president of the ameri-

can planning association this

spring, don’t be surprised if the planning

profession starts to enjoy a little higher

public profile.

During his two year term, Silver

wants to correct obsolete notions of

what planners do, including negative

views held by people who remember the

days of federal Urban renewal proj-

ects and controversial uses of eminent

domain powers for

commercial redevel-

opment.

he believes that

planning has evolved

and now encom-

passes many cutting

edge concerns like

environmental jus-

tice, new urbanism,

reduction of sprawl,

and most recently,

the idea of the “smart regions.”

Silver wants to explain the value of

planning in preserving communities for

future generations. “We are guardians

of the future. We must be concerned that

future generations have clean air, clean

water and a good economy.”

he said planners need to deal with

demographic trends, including the aging

of the Baby Boom generation and the

increase in the proportion of single-

person households. Nor can they ignore

climate change, aging infrastructure and

the globalization of the economy.

planners should think of themselves

as more than regulators implementing

codes. Silver believes planners should

be concerned with “the experience of

place.” he said, “we are not just plan-

ners or regulators, we’re experience

Blazing a New Trail for City PlannersSilver brings new agenda to presidency of apa

UrBAN & reGioNAL PLANNiNG

builders. We are in the business of creat-

ing great places.”

as planning director of raleigh, N.c.,

Silver has guided the city through a com-

prehensive planning process that tries

to maximize the economic returns from

creating great places.

Before moving south, he was deputy

director in the Office of planning in

Washington, D.c., and prior to that, he

held several high-level planning posts in

New York city.

Silver says the

biggest challenge for

planners now is to

adapt their ideas and

approaches to a new

generation. he be-

lieves that the Baby

Boom generation’s

influence is waning

and that the Millenni-

al generation should

figure much larger

in how we shape our cities. This is the

generation that is aged 15 to 28 today,

he said. They prefer an urban lifestyle,

they are environmentally conscious and

to a large extent, they are single, he

explained.

To this generation, place matters,

not just jobs, which represents a major

change from their parents, and especially

their grandparents. as Silver pointed out,

the Millennials are just as likely to choose

a community to live in based on its qual-

ity of life as on the availability of a job.

“We as policymakers had better

understand this market, because that’s

who we are planning for. if you want to

hold on to your young people, you better

be smart,” he said.

Silver believes that good planning

requires looking at land as a commu-

nity’s most important asset and making

the most of it. The first step is to do a

land capacity analysis and assess the

supply and demand balance. Then they

need to to maximize the return on that

asset by making strategic investments in

infrastructure.

“land has value, and you can steer

public invest to enhance land value to

help your tax base,” he said. rather than

have 150 acres of single-family homes,

you can have a few acres of high density

development that yields a higher return

on investment, he said.

Silver cautions that the idea of sus-

tainability should not be interpreted as

favoring urban areas over suburban or

rural areas. “While the United States will

continue to grow and urbanize, planners

must not forget that some people will

choose to remain in suburban and rural

areas for their own lifestyle choices.

planners and policy makers have figure

out how to connect these places and

their economies.”

as apa president, Silver will be rep-

resenting 43,000 members who live in

80 countries. “Those planners represent

communities of every type imaginable,”

he said.

“Too often, sustainability has been

mostly about the environment and the

economy (to a lesser extent) in urban-

ized areas, with equity a distant third. i

am concerned with how we can grow to

ensure that all communities (urban,

suburban and rural), protect the environ-

ment, better link our economies so we

can all prosper, and strive for improved

equity and fairness for all,” Silver said.

“That in my opinion should be the role

of sustaining communities. That is what i

will be spending the next two years talk-

ing about.” ❧

Mitchell J. Silver

Page 15: SC Magazine, Vol. 1, No. 2

March/april 2011 • SuStainable CommunitieS 13

The debate about climate change is over as far as planners in many U.S. cities are concerned. instead of being caught unprepared, cities and counties across the country are taking action to plan for the effects climate change may have on their regions.

In california, the county of San luis Obispo is leading the effort to quantify and

prepare for climatic impacts, hoping to avoid some of the estimated $300 mil-

lion to $3.9 billion climate change effects will cost the state annually, according

to U.c. Berkeley researchers.

armed with a hundred thousand dollar grant from the Kresge Foundation, the

non-profit local Government commission (lGc), in partnership with the National

center for conservation Science and policy and the county of San luis Obispo, is

undertaking an effort to explore strategies to address effects of climate change on

six key areas: water, health, infrastructure, agriculture, coastal marine and tourism.

lGc chose to work with San luis Obispo in part due to the local jurisdictions’

commitment to developing climate action plans. “We knew there was political

support and that’s really important. i

don’t think we would have pursued this

without local champions,” said Kate

Meis, project manager with the local

Government commission.

The first phase of the group’s work

entailed a detailed modeling of climate

change impacts on the region, includ-

ing expected temperature increase,

precipitation increase or decrease

and sea level rise. Under the models,

the expected future of the county

includes:

• hotter, drier, and longer summers;

• accelerating sea level rise;

• Eroding coastal bluffs;

• lower groundwater recharge

rates; and

• Stress to water and flood infra

structure.

Based on the result of the model-

ing, the group held workshops with the

public and local leaders to formulate

an adaptation planning strategy for the

county. The result of these workshops

is the integrated climate change ad-

aptation planning report, available on

lGc’s website, www.lgc.org.

adaptation strategies range from

reassessing coastal land use poli-

cies, to avoid building in areas under

threat of sea level rise, to bolstering

wildfire management planning in the

region and shoring up groundwater

supplies.

The group hopes that “by iden-

tifying and addressing underlying

vulnerabilities early, decision makers

in San luis Obispo can increase the

resilience of both the community and

the resources it depends on to climate

change.” ❧

Smart planning Helps Cities adapt to Climate Change

cO

Ur

TE

SY W

iKiM

ED

ia c

OM

MO

NS

.

Diablo Nuclear Power Plant, San luis Obispo County- the plant and the infrastructure upon which it depends are directly exposed to the impacts of coastal storms, flooding and erosion, which will be exacerbated by sea level rise.

CAliFORNiA

By MeganTruxillo

Page 16: SC Magazine, Vol. 1, No. 2

14

Housing Demand

When George W. Bush was president, homeownership rates

reached a record high of 69 percent, and everyone from the

White house to congress on down to local officials sucked

all the political advantage they could get from the growing

ranks of young homeowners. apartment operators wondered how it came

to pass that a young family could get a mortgage even if they could not

qualify for a lease. Single-family cul de sac subdivisions sprouted in outly-

ing areas of every U.S. city with a pulse.

What a difference a few million foreclosures makes. Today, the home-

ownership rate is dropping and rental housing is making a comeback that

could last for decades. it’s about time, according to apartment owners

and their association, the National Multi housing council (NMhc), which

has been arguing for years for government policies that value rental

housing.

“The single-family housing meltdown confirms that homeownership

alone is not sufficient to meet our housing and community needs,” said

Doug Bibby, NMhc president. “We need a more balanced housing policy—

and that policy needs to begin with ensuring a consistent and abundant

capital flow to rental housing.”

The shift toward rental housing dovetails perfectly with the prefer-

ence of many mayors and city planners to see growth channeled into

transit corridors and infill locations, as opposed to development of single-

family homes in subdivisions far from services or jobs.

“Not only do apartments offer housing to a wide range of households,”

66% of new households will rent, NMHC predictsAs new lifestyles tilt balance toward sustainability

SuStainable CommunitieS • March/april 2011

By ANDrE SHASHATy

Community facilty at Northpark Apartments in Burlingame, Calif., a property of Equity Residential

▲▲located within a short train or ferry ride from lower Manhattan, The Pier in

Jersey City, N.J., exemplifies the kinds of properties that Equity Residential develops: Close to transit and jobs and on infill site in existing urban areas.

>>

Page 17: SC Magazine, Vol. 1, No. 2

WWW.CWCAPITAL.COM

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

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

$388,080,000Douglas Emmett PortfolioSanta Monica & Brentwood, CAFannie Mae DUSRefinance

$89,967,300Archstone Olde TowneGaithersburg, MDFHA 221(d)(4)New Construction

$31,666,000Fay ApartmentsCincinnati, OHFHA 221(d)(4)Substantial Rehabilitation

$29,100,000Villas at CenterviewRaleigh, NCFreddie Mac CMERefinance

$19,088,000Residence at Little RiverHaverhill, MAFannie Mae DUSAcquisition

$11,700,000Rivers Edge/Camelot ApartmentsMadison, WIFreddie Mac CMEAcquisition

Page 18: SC Magazine, Vol. 1, No. 2

SuStainable CommunitieS • March/april 201116

said Bibby, “they can also help us meet

critical national goals like reducing green-

house gasses, growing more sustainably

and creating mixed-use, pedestrian-

friendly communities.”

NMhc says the nation is experienc-

ing a boom in renter households that will

continue for years to come. “We saw a

surge of 2.7 million renters from 2005 to

2007 alone,” Bibby said. “Between 2008

and 2015, nearly two-thirds of new house-

holds formed will be renters. That’s 6 mil-

lion new renter households,” he stated.

Homeownership Not a Can’t Miss Investment

This is partly because of a change in

attitudes about the financial benefits of

ownership. Until the recent spike in fore-

closures, a large percentage of home sales were premised on

the idea that buying was a financial investment, not just a way

to obtain shelter. That is shifting dramatically as more and

more households make housing choices based on lifestyle or

even environmental factors, and no longer assume that own-

ing is a good investment.

These housing choices are largely a function of changing

demographics, according to NMhc. The aging members of

the Baby Boomer generation are increasingly opting to trade

in their suburban houses for apartments as they age and

their children move away from home, NMhc said. according

to census data, 75 percent of all seniors will change housing

type between ages 65 and 80.

a more powerful force for rental demand is the Echo

Boomers, that is, the children of the baby boomers. By 2015,

there will be 67 million people aged 20-34 years of age, the

prime years for renting.

“We have reason to believe

that this generation of young

people will rent for longer than

earlier generations,” said Bibby.

“Not only have they seen first-

hand that owning is not a can’t-

miss investment, they’ve also

learned through the recession

that they need to be more mobile

to respond to changing economic

opportunities and not be bur-

dened by owning a house.”

immigration is another fac-

tor driving future rental demand

because immigrants rent for a

long time after arriving in the

U.S. Eighty-two percent of im-

migrants who have been here for

five years or less rent, and 71%

of those here for 10 years or less rent, according to Bibby.

Demographic ChangeThanks to an enormous wave of immigration in the 1990s

— the largest ever — one in five heads of U.S. households is now

either foreign born or the native-born child of an immigrant.

There is also a dramatic change in what constitutes the “typi-

cal” american household. “For generations, married couples with

children dominated our housing markets and they caused the

suburbs to grow explosively. But now they are less than 22% of

households and that number is falling. By 2030, nearly three-

quarters of our households will be childless,” Bibby said.

“in fact, between 2000 and 2040, fully 86% of our house-

hold growth will be households without children,” Bibby said.

“That’s a profound change that has serious implications for

the kind of housing we need. Our future society will be domi-

▲ NMHC President Doug Bibby

DeClininG Home oWnerSHip rateS uS HouSeHolD GroWtH projeCtionS

>>

ph

OT

O: D

EN

NiS

Wh

iTE

hE

aD

Page 19: SC Magazine, Vol. 1, No. 2

March/april 2011 • SuStainable CommunitieS 17

nated by single people, unrelated

people living together, couples

without children and empty nest-

ers, and these households are much

more likely to choose the flexibility,

convenience and superior locations

offered by rental housing.”

To meet this future demand

requires a fundamental re-thinking

in how we approach housing in this

country. To meet emerging housing

demands, half of all new homes built

between now and 2030 will have to

be rental units, according to profes-

sor arthur “chris” Nelson, director

of Metropolitan research at the Uni-

versity of Utah.

The multifamily industry will

have to get busy to meet that projected demand. New

apartment construction set an all-time post-World War ii low

in 2009 at 97,000 new starts. construction levels in 2010

were predicted to be even lower. “at the current rates of

starts and completions, we’re not even building enough to

replace the units that are lost every year to old age,” accord-

ing to NMhc.

If It’s Not Broke, Don’t Fix itironically, most casual observers see the current oversup-

ply of vacant single-family houses because of the foreclosure

crisis, and assume that the U.S. has a housing glut. That’s not

true, Bibby said. “We do indeed have a glut of single-family

houses, but on the apartment side we are heading toward a

shortage as early as 2012. The shortage of affordable rental

units is particularly acute.”

NMhc is calling for federal, state and local policies that

encourage the development of compact, sustainable housing

located near transportation and employment centers. Bibby

lauded the efforts of hUD and other federal agencies to co-

ordinate housing and transportation to give americans more

affordable housing near jobs and transit.

Bibby said that the Obama administration’s proposal for

changes to Fannie Mae and Freddie Mac single-family finance

programs appears to move government policy away from an

overreliance on homeownership. But he expressed concern

about the plan’s lack of specificity about the future of Fannie

and Freddie multifamily finance programs. (For details, see

separate story.)

“We urge policymakers to be very cautious and not cause

unintended consequences by trying to solve a problem that

doesn’t exist in Fannie’s and Freddie’s multifamily business,”

Bibby said. “Their multifamily programs are not broken.

They have default rates of less than one percent and they

actually produce net revenue (profits)

for the U.S. government. They pose

no risk to the taxpayer. But they—and

the nation’s supply of workforce rental

housing—stand at risk of becoming a

collateral victim of the single-family

meltdown.”

“Over the past 40 years, there have

been numerous occasions when the

private sector has been unable or un-

willing to finance multifamily loans,” he

continued. “a federally backed second-

ary market with an explicit federal gov-

ernment guarantee is absolutely critical

to our industry’s continued health.”

Without the two federal mortgage

firms, from 2008 through 2010, there

would have been widespread foreclo-

sures of otherwise performing apartment properties because

owners would have had no capital source to refinance matur-

ing mortgages, according to NMhc.

Bibby said that 90% of apartment loans purchased by

Fannie and Freddie are for properties targeted to people earn-

ing the median income. “Fannie and Freddie’s multifamily

lending is the government’s most efficient way of producing

workforce housing,” he said. ❧

CHanGinG DemanD,HouSeHolD CompoSition

FHa inSureS larGeSt “Green” renoVation

The largest “green” transaction done with Federal

Housing Administration insurance was closed recently

by CWCapital LLC, a full-service, national lender to

the multifamily and healthcare real estate industries.

The loan was for $36 million to finance renovation of

The Fay Apartments in Cincinnati, Ohio.

The loan will support a 30-month renovation of

the Fay Apartments between October 2010 and March

2013. Details of the renovation project include the de-

molition of 17 buildings, reducing the number of units

to 703, and the implementation of “green” features for

all units, such as energy efficient windows and doors,

eco-friendly carpet and new HVAC systems.

The loan represents both the FHA’s largest Mark-

to-Market transaction as well as its largest “green”

transaction closed to date, according to CWCapital.

To complete the financing, CW worked collaboratively

with Cincinnati-based CMC Mortgage Services Inc.,

who had initiated the finance project before enlist-

ing CW to complete the deal and assume servicing

responsibilities upon the loan’s closing.

Page 20: SC Magazine, Vol. 1, No. 2

SuStainable CommunitieS • March/april 201118

energy and water-efficient buildings and sustainable de-

velopment practices are rapidly becoming standard pro-

cedure among leading providers of apartments

“We are very focused on sustainability,” said alan

George, chief investment officer and executive vice presi-

dent of Equity residential. “Sustainability is the right thing

to do, and it’s also a way of increasing the profitability of our

company,” said George.

The chicago-based, publicly traded company owns 470

apartment properties with 130,000 units. Equity is making

sustainability a factor in all of its major decisions, and that’s

been very well received by employees and customers alike,

George said.

in southern california, SarES•rEGiS Group is pursuing

sustainability and green building, both for its apartment

properties as well as its commercial real estate ventures.

“Before there was even a notion of passing S.B. 375 (califor-

nia’s anti-sprawl legislation) we always targeted transporta-

tion corridors and infill locations,” said Mike Winter, senior

vice president in the company’s Multifamily Development

Division. it calls itself “the largest privately held developer

of green apartments in Southern california.“

▲ Pool and spa area at The Crossing Apartments in Anaheim, Calif., developed by SARES•REGiS Group. The new apartment community boasts in its marketing of using recycled materials, offering a healthful indoor environment and its location on a sustainable site. Quoting from its promotional material for leasing: “Being eco-friendly is a no-brainer at The Crossing. We built in some incredible and innovative green perks for you to enjoy without even lifting a finger (how cool is that!)”

apartment Firms embrace Sustainability, Green building

replacing Light BulbsEquity’s vast portfolio requires lots

of lighting, so it has realized substantial

reductions in energy use simply by re-

placing incandescent bulbs with lED or

fluorescent lights.

For the lighting in common areas and

health clubs at its properties, it is install-

ing occupancy sensors and daylight sen-

sors to reduce energy use when there’s

natural light or no one in the space.

“lED technology is fabulous,” George

said. “The fixtures last for 20 to 30 years,

eliminating the need to stock replace-

ments and the cost of labor to change

bulbs. plus, they produce better light

quality and use less power.”

Equity is planning its first round of so-

lar energy installations this year, includ-

ing photovoltaic and thermal hot water

systems. Two are in New Jersey and one

is in northern california. George said New Jersey and northern

california are two areas where solar makes the most sense be-

cause of rebate programs and the high cost of electricity. Other

installations are slated for properties in southern california and

the phoenix area.

The primary application for solar is for common area utili-

ties, as well as at properties where there is master project-wide

metering as opposed to individual meters in each unit.

like other apartment owners, Equity is debating what to do

about energy saving measures for individually metered units,

where savings accrue to the tenants, not the owner.

Still, he said the firm is making in-unit upgrades that benefit

tenants. as part of its routine upgrades, it is now installing dual

flush toilets, and programmable thermostats. “residents will

give you credit for that in some way,” he said. “You can’t quan-

tify it, but it’s the right thing to do.”

The firm helps tenants be mobile without owning cars by

operating Zipcar car sharing programs at some of its properties.

The firm expects to acquire properties with a total value of

around $1 billion in 2011. it looks for large projects in urban areas

that are near services and transportation. Years ago, Equity fo-

cused on garden apartments that were more isolated in subur-

ban areas but has since sold most of those assets, George said.

Page 21: SC Magazine, Vol. 1, No. 2

March/april 2011 • SuStainable CommunitieS 19

California GreeningSarES•rEGiS Group sees the incor-

poration of green building standards

into state and local building codes as

a positive development, according to

Winter. The changes mean that private,

third-party certifications may no longer

be needed for new projects, which can

reduce the company’s cost for consul-

tants and certification fees.

Given the difficulty in getting debt fi-

nancing these days, he said it’s prudent to

reduce the “soft cost of being green.” The

costs associated with getting a green cer-

tification from a private agency have been

as high as $100,000, he said.

The company owns or manages

16,180 rental apartments and 15 million

square feet of office and industrial space. it has more than 4

million square feet of commercial and industrial space in

the entitlement process and 1,962 residential units in pre-

construction and development.

Winter said the firm does not see much potential in in-

stalling solar panels, partly because it doesn’t project an

adequate savings in utility costs to justify the cost, but also

because low-rise structures often don’t have enough roof

space to accommodate solar.

The company spends a great deal of staff time de-

veloping designs and going through

checklists to see what features and

new technology makes the most sense.

For example, new water-saving toilets,

faucets and shower heads get tested by

staff members or in construction trailers

to see if they are good enough to be put

in a new project.

lenders are not particularly impressed

by green features, focusing instead on a

project’s financial feasibility. But the firm’s

institutional investors like the green quali-

ties of its buildings, Winter said.

in addition to energy and water-effi-

cient construction, the firm is making a

major push to develop infill projects near

jobs and transit.

in 2010, it opened Westgate apartments

in pasadena, a “green” transit-oriented

community of 480 apartment homes.

located in pasadena’s historic district and two blocks from

the Del Mar Station of the Metro Gold line, Westgate offers a

clubhouse, resort-style pool and spa, five themed courtyards

and a fitness center. SarES•rEGiS developed it in a joint

venture with Equity residential.

From a planning, design and sustainability perspective,

this development is transformational,” said Winter.

Winter said new residents at Westgate are attracted by

the combination of the property’s greenness as well as its

easy access to transportation corridors,

key job centers, shopping, dining and en-

tertainment. “it adds up to create a text-

book example for the new-era of modern

urban planning and design,” he said.

in addition to Metro Gold line rail

service, additional transit services serv-

ing Westgate residents include MTa

Metro Bus lines with routes through-

out los angeles county, the pasa-

dena arTS Bus System and Foothill

Transit. There are 174 bicycle parking

spaces clustered near elevator lobbies

throughout the subterranean garage.

The development has two dedicated

charging stations for electric vehicles.

Westgate pasadena is SarES•rEGiS

Group’s second smoke-free, transit-

oriented community. it also opened

The crossing in anaheim, a community

of 312 apartments that received lEED

Gold rating from the U.S. Green Build-

ing council. ❧

▲ alan George, chief investment officer and executive vice president of equity residential

Defend Sustainablity: Join PSCWith budget battles raging in Washington, D.c. and many state capitols,

the community sustainability movement faces severe setbacks.

if you care about making communities sustainable, now’s the time

to act. Take a moment now to become a member of partnership for

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member” in the green bar at top, or call 415-453-2100 x 302.

You pay just $79 for an entire year. You will be supporting a good

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• Free access to premium content on our web site,

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• a 25% discount on The San Francisco conference on Sustainable

housing and community Development” slated for Sept. 19-20

Page 22: SC Magazine, Vol. 1, No. 2

SuStainable CommunitieS • March/april 201120

Congress created Fannie Mae and Freddie Mac to make

sure there was enough liquidity in the banking industry

to provide a steady supply of mortgage lending at reasonable

rates and terms. Now, in the aftermath of the mortgage melt-

down, with the two agencies guaranteeing 90% of all home

loans, the Obama administration wants the government to

reduce its financial support for the mortgage market.

To make a long story very short, the administration is

engaging congress in a political dance that will probably end

with Fannie and Freddie closing their doors in several years,

and the federal government limiting its role to that of a guar-

antor of pools of home mortgages, rather than its current role

as a buyer and securitizer of individual loans.

The impact of the changes could be profound. Most ana-

lysts agree that home loans with fixed interest rates and long

terms will be harder to get and more expensive. That will

mean a reduction in the number of households that can buy

homes and an increase in the number who must rent.

There is some prospect that the changes will steer resi-

dential development back toward rental homes at higher

densities than the single-family subdivisions that sprouted up

during the last wave of easy mortgage money.

The biggest unanswered question is whether households

denied the safety of long-term fixed rate loans will once again

find a ready supply of short-term, adjustable rate loans – the

exact same kind of financing that caused the nation’s foreclo-

sure crisis in the first place. The Obama plan talks in general

terms about preventing predatory lending and requiring more

“transparency” in how private market players do business,

but it falls far short of a detailed plan with a clear chance of

controlling the mortgage market.

The long and very uncertain process of revamping the

federal government’s role in housing finance began in Febru-

ary, when the Obama administration released its 32-page

report to congress on “reforming america’s housing Finance

Market.”

The Obama proposal is very general, but it sets a clear

direction: Federal backing for home loans is going to be cut

back, but federal support for financing apartments will con-

tinue and might even be increased.

The administration wants to wind down Fannie Mae and

Freddie Mac and shrink the government’s current footprint in

housing finance on “a responsible timeline,” which could be

as long as ten years. The republican leaders in congress say

they want to do many of the exact same things, but faster.

They want to phase out Fannie and Freddie in four years.

currently, the U.S. government guarantees more than

nine out of every 10 new mortgages. Both Obama and the

republicans say they want to bring the private sector back as

the primary source of mortgage credit and make it bear the

burden for losses.

What will be put in place after Fannie and Freddie are

Pulling the Plug on Homeownership’s Life Support

END OF AN ERA:

by andre Shashaty

Fannie Mae headquarters

Page 23: SC Magazine, Vol. 1, No. 2

March/april 2011 • SuStainable CommunitieS 21

wound down? The report offers three possible scenarios.

One assumes that home loans will be entirely a private sector

business with no federal backing. One assumes the market

will be private, unless there’s a major credit market crisis re-

quiring emergency federal intervention.

The third option is some sort of mechanism in which the

federal government will insure pools of loans to make an

active mortgage securitization market possible. This is the

option that allows some hope for continued availability of

long-term fixed rate mortgages on a significant scale at a rea-

sonable cost and is considered most likely to be enacted,

The Obama report is vague as to timing, but it is ex-

pected to move this year

to reduce the number of

loans eligible for purchase

by Fannie and Freddie, and

to jack up the pricing for

such loans. The plan also

calls for increasing required

down payments so that any

mortgage that Fannie Mae

and Freddie Mac guarantee

eventually has at least a 10

percent down payment.

The administration pro-

poses to make changes to

Fha single-family programs

to ensure that, as Fan-

nie Mae and Freddie Mac

shrink, the private sector – not Fha – picks up their market

share. The administration will do that by increasing mortgage

insurance premiums and reducing the maximum mortgage

amounts Fha can insure.

Financing ApartmentsThe Obama report takes care to exempt financing for

apartments from the end game for Fannie and Freddie. But

even there, it hedges quite a bit. “Fannie Mae and Freddie

Mac developed expertise in profitably providing financing to

the middle of the rental market, where housing is generally

affordable to moderate-income families. as we wind down

Fannie Mae and Freddie Mac, it will be critical to find ways to

maintain funding to this segment of the market.”

Does that mean Fannie and Freddie will continue to exist

and continue to do multifamily finance or that some other

federal program will fill the gap that will be left when they are

“wound down?” No one knows.

The report is clear about the need for strong multifamily

programs within the Federal housing administration (Fha). it

promises an effort to “explore ways to provide greater sup-

port for rental housing.” it hints at the idea that Fha might

absorb Fannie and Freddie’s multifamily staff, saying “one op-

tion would be to do so by expanding Fha’s capacity to support

lending to the multifamily market. Key to this would be utiliz-

ing existing multifamily expertise so that Fha and other enti-

ties continue the industry’s current best practices and retain

valuable human capital.”

it goes on to suggest some possible “reforms,” such as risk-

sharing with private lenders, to reduce the risk to Fha and the

taxpayer, and programs dedicated to “hard-to-reach property

segments, including the smaller properties.”

it remains to be seen whether the administration is just

recycling old ideas or whether it really intends to make sig-

nificant new efforts in these areas. The Mortgage Bankers

association of america and

many other policy analysts

believe Fha needs to be

more autonomous to be

more effective at innovation.

One long-standing proposal

is to make it a government-

owned corporation, free

from the staffing and bud-

geting constraints of the

federal government.

What’s missing from

the Obama proposal is any

specific effort to steer the

mortgage market toward

a more supportive role in

encouraging community sus-

tainability. There’s been lots of talk about the need for a “loca-

tion efficient mortgage,” that is, a type of loan that is under-

written to reflect the benefits of buying a house close to one’s

job to reduce commuting time and costs. But the closest this

report comes to suggesting any effort to innovate is this: “We

must design access and affordability policies that are better

targeted and focused on providing support that is financially

sustainable for families and communities.”

The Obama administration had a great opportunity to

start a discussion about how mortgage finance practices, in-

cluding Fha programs, can help lead to land use patterns and

development practices that are economically and environ-

mentally more sustainable. One can only hope that the report

is just an opening gambit, and that the administration will

soon put forward more specific ideas and policy proposals.

Some critics are much tougher on the administration. as

one very well-informed observer of the finance scene put it,

the reduction in government backing for home loans will put

home buyers at the mercy of private lenders moreso than

they have been for many years. They are handing the entire

home finance system over to the same folks who screwed

home buyers in the first place – the banks. “it’s stunning,” this

observer said. ❧

Page 24: SC Magazine, Vol. 1, No. 2

SuStainable CommunitieS • March/april 201122

CAliFORNiA VS. SPRAWl:

the battle begins

For a preview of the challenges faced by the 18 Metropoli-

tan planning Organizations (MpOs) across the state of

california in implementing Senate Bill 375, the state’s so-

called “anti-sprawl” law, look no further than the association

of Bay area Government’s (aBaG’s) “initial Vision Scenario.”

Two years ahead of the due date for the Bay area’s final

2050 regional Transportation plan, scheduled for april 2013,

the initial Vision Scenario is a first-shot at identifying how,

through land use and transportation planning, the Bay area

will accommodate a growing population while reducing green-

house gas emissions from cars and light trucks.

“The release of the initial Vision Scenario provides a start-

ing point for conversations with local governments and Bay

area residents about where new development should occur,

and how new long-term transportation investments can serve

this new growth,” said aBaG in a press release.

The Vision Scenario demonstrates just how

hard it will be to turn a meticulous planning pro-

cess into results, in the form of reductions in per

capita emissions from use of private vehicles.

aBaG candidly admits to two fundamental

challenges for the region. First, the scenario’s

projected impact on how much people drive is

insufficient to achieve the state-mandated 15

percent per capita greenhouse gas reduction by

2035. Secondly, the scenario assumes a function-

ing, and even expanded transportation system, at

the same time pointing out that the current Bay

area transportation system is unsustainable, with

operators unable to afford continuation of ser-

vices at the current level.

in Southern california, public transit is a relatively new in-

novation, and the Southern california association of Govern-

ments (ScaG) is not relying too heavily on it to meet its GhG

reduction goals. a massive expansion of the region’s commut-

er light-rail and subways is one element, but ScaG is also pur-

suing compact land use and development strategies, as well

as ideas for making it more costly to drive private vehicles.

confronting the economics of driving and parking private

cars is absolutely essential to meeting the goals of S.B. 375,

said hasan ikhrata, executive director of ScaG. “You can have

a fantasy plan, that’s one way to do it. The law allows you to

do it. But we don’t want that,” said ikhrata. “We will meet the

state GhG reduction goals.”

ikhrata knows that congestion pricing and other measures

to make it more costly to drive are a “hard sell” for the politi-

cians that run the cities in the region, but he promises that

ScaG will “put them on the table.”

San Diego, the first california region scheduled to complete

a Sustainable communities Strategy in October of this year,

adopted a preliminary plan for further developing its 2050 re-

gional Transportation plan and Sustainable communities Strat-

egy last October. The “hybrid scenario” emphasizes transit,

rail/freight and highway improvements, as opposed to focusing

Planners confront the puzzle of how to grow sustainablyas first specifics emerge from state’s ‘anti-sprawl’ law

Hasan ikhrata, SCaG executive director

mike mcKeever, SaCoG chief executive officer

ezra rapport, abaG executive director

Page 25: SC Magazine, Vol. 1, No. 2

March/april 2011 • SuStainable CommunitieS 23

efforts in one area. Unlike aBaG’s Vision Scenario, the “hybrid

scenario” is projected to achieve the state mandated 13 percent

reduction by 2035, and actually surpass it by 5 percent.

Accommodating a Growing PopulationThe San Francisco Bay area is expected to grow by over

two million people by the year 2035. assuming a strong

economy, the scenario estimates an additional 1.2 million jobs

by 2035 and the need for 903,000 more housing units than

currently are available.

To accommodate this growth, “the initial Vision Scenario

makes the most of the Bay area’s existing infrastructure,”

explained MTc planning Director Doug Kimsey. “it projects

that 97 percent of all new households will be accommodated

in already urbanized areas, and particularly in cities where

residents have access to frequent public transit service. Un-

der this scenario, 70 percent of the growth, or 632,100 new

households, will go into places that have been designated

‘close to transit’ by local jurisdictions.”

Specifically, aBaG forecasts 32 percent of the new growth

will occur in San Jose, San Francisco and Oakland. With 17

percent occurring in medium-sized cities like Fremont, Santa

rosa, Berkeley, hayward, concord and Santa clara.

The scenario does meet affordable housing targets, ac-

a primer on Sb 375 SB 375, passed in 2008, aims to reduce

greenhouse gas emissions from vehicles by

coordinating land use, transportation and

affordable housing planning. The law is part of

California’s efforts to meet its AB 32 greenhouse

gas reduction requirements: A law that requires

California to reduce GHG emissions to 1990 levels

by 2020. Here is how it works:

emissions targets: The California Air

resources Board sets greenhouse gas emissions

reductions targets from vehicles for each of the 18

Metropolitan Planning Organizations (MPOs) in the

state. The targets range from a 7-8% reduction by

2020 to a 13-16% reduction by 2035.

Sustainable Communities Strategies: These

emissions reduction targets shape Sustainable

Communities Strategies that all 18 California

regions must prepare. The SCS must show how

each region will reach emissions reductions

targets by putting housing, stores, jobs and transit

closer together, reducing sprawl and vehicle miles

travelled (VMT).

regional transportation plans: The Sustainable

Communities Strategy will be part of the next round

of federal regional Transportation Plans. Herein lies

the power of SB 375: money. Federal regulations

require that regional Transportation Plans be

internally consistent—so the funding outlined in a

plan must be consistent with the plan’s Sustainable

Communities Strategy. That is, transportation

funding will have to be designed to achieve GHG

reduction goals.

regional Housing needs allocations: SB 375

also affects the process by which regions ask

local jurisdictions to plan for housing. Each region

must plan to provide enough housing to match

anticipated population and job growth in the

area, and in all economic brackets. Based on the

projected need for additional housing, jurisdictions

must re-zone to allow for housing projects to meet

the future need.

CeQa Streamlining: There will be some

relief from California Environmental Quality Act

requirements for projects that are consistent with

the region’s Sustainable Communities Strategy.

>>

Page 26: SC Magazine, Vol. 1, No. 2

SuStainable CommunitieS • March/april 201124

commodating all the projected housing need by income level.

reducing Greenhouse Gas Emissions

The scenario only results in a 12 percent reduction in

greenhouse gas emissions from cars and light trucks by 2035.

This falls short of the state-mandated 15 percent reduction in

greenhouse gas emissions. it also assumes expanded public

transportation.

So, although slating only 3 percent of growth for green-

fields is a start, over the next two years aBaG and MTc will

need to come up with additional strategies to reduce green-

house gas emissions in the area. For the full text of the initial

Vision Scenario visit www.onebayarea.org.

Southern California’s ApproachScaG is the nation’s largest metropolitan planning organi-

zation, representing six counties, 190 cities and more than 19

million residents.

like other MpOs, ScaG is working hard to gather public

As California regional planners gear up to start writ-

ing the Sustainable Communities Strategies required

under Senate Bill 375, the public is getting its say.

Surveys, hearings, workshops and other consulta-

tions are underway throughout the state.

Conducting SurveysThe region with the earliest deadline to complete

its strategy is the area served by the San Diego as-

sociation of Governments (SaNDaG). in a survey of

1,200 residents of the 18-city region, SaNDaG asked

the public to weigh in on development of the 2050

regional Transportation plan. The survey revealed that

36% of residents ranked public transit as the highest

priority for future improvement and investment, fol-

lowed by 31% for major roads and 29% for freeways

and highways.

The three factors that respondents felt should car-

ry the most weight when policymakers are developing

transportation policies and plans are:

• reducing traffic congestion (74% extremely or

very important);

• Ensuring that the transportation system supports

the needs of the local economy (73%); and

• improving the safety of the transportation system

(64%).

reducing Vmt & GHG emissions: among all

residents surveyed, 63% stated that they were aware

of the new legislative requirements pertaining to GhG

emission reductions from cars and trucks, whereas

36% confided that they were not aware of the new

requirements and 1% were unsure.

When presented with 10 different strategies for re-

ducing GhG emissions from cars and trucks, residents

of the San Diego region were most supportive of the

following:

• Making road improvements that reduce bottlenecks

and improve traffic flow (88%);

• Expanding programs that encourage telecommuting

and flexible work hours (87%),;

• improving the transit system so that it attracts more

riders (84%); and

• concentrating new housing near existing employ-

ment centers and areas that are well-served by tran-

sit (82%).

Overall, less than one-third of respondents support-

ed fee-based strategies to reduce driving, including

establishing parking fees in urban and commercial cen-

ters (30% support), increasing the gas tax (24%), or

Citizens Weigh in on How to implement ‘anti-Sprawl’ law

—CONTINUED ON PAGE 40

State Sen. Christine Kehoe (D-San Diego) has introduced Senate Bill 468, which would require completion of existing mass transit projects and setting aside funding to improve local roads before any freeway expansion projects could occur in coastal

cities. The bill is rare in its simplicity. The bill would apply statewide, but

it takes dead aim at a proposed I-5 expan-sion in San Diego County from La Jolla to Oceanside, estimated to cost $4.5 billion and adding up to six new lanes to the already eight-lane highway. The expansion project already underwent a lengthy public comment period, drawing

thousands of comments from interested cities, environmental groups and citizens critical to the expansion.

Many comments echoed the sentiment in Kehoe’s bill: limited transportation dollars should fund public transit not more roads. Others expressed concern over the environmental implications of the project, including the health impacts on citizens living near the freeway.

“There are better ways to move people through coastal com-munities than by only widening freeways,” said Kehoe. “Improved transit service costs less, lowers pollution, and reduces conges-tion. Better transit should precede freeway expansion.”

California Senator Fights Freeway Expansion

>>

Page 27: SC Magazine, Vol. 1, No. 2

March/april 2011 • SuStainable CommunitieS 25

establishing a new fee on miles driven per vehicle (21%).

personal behavioral Changes: approximately half

(51%) of San Diego residents indicated that, realistically,

they are willing to reduce the amount that they drive dur-

ing the next six months. approximately 45% indicated

that they were not willing to make this change, whereas

2% indicated that it depended on other factors and 1%

refused to answer the question.

Holding Public Hearingsin addition to opinion surveys, regional planners are

hitting the road to conduct public hearings. The associa-

tion of Bay area Governments (aBaG), which handles

planning for the 9 counties and 101 cities around San Fran-

cisco Bay, is planning extensive public consultations over

the next two years.

in March, aBaG released its initial Vision Scenario,

which identifies “growth opportunity areas” in the re-

gion. The purpose is to start a dialog about where growth

should occur.

at a recent hearing before the Transportation author-

ity of Marin county (TaM), aBaG officials talked about the

steps they are taking to write a Sustainable communities

Strategy for the region. They fielded a wide range of ques-

tions and heard a cross section of viewpoints.

a recurring theme from the county officials and advo-

cates present was the challenge of providing work force

housing near jobs.

an opponent of affordable housing said aBaG should

not require her town to zone for more high-density hous-

ing projects. She said the town does not have sufficient

city staff or sufficient infrastructure to meet regional

housing needs allocations assigned by aBaG.

a supporter of affordable housing development re-

ferred to the “environmental injustice” caused by the lack

of housing for low-income people. he said more housing

must be provided in the county.

Under S.B. 375, transportation planning is linked more

closely to planning for affordable housing. aBaG, like oth-

er regional planning organizations, makes regional hous-

ing needs allocations for each community in the region.

The allocations now in force are for housing elements for

2007 to 2014. The next set of allocations, and the first that

are required to dovetail with the S.B. 375 panning, will be

for 2014 to 2022.

One commenter talked about rising gas prices and how

it was getting harder for Marin county employers to count

on workers driving in from outlying areas in the east and

north parts of the region. “Dispersing population in an era

of rising gas prices no longer is a workable strategy,” he

said, calling on aBaG to look at housing and transporta-

tion costs together.

Looking at PrecedentsSB 375 created a state-mandated approach to plan-

ning for specific state-determined GhG emission reduction

goals. it also linked transportation and housing planning.

But planning organizations in metro areas, including San

Francisco, generally have done previous plans that looked

at land use and ways to reduce greenhouse gas emissions.

at the Marin county hearing, the most recent San Fran-

cisco area transportation plan was called into question.

in 2009, the Metropolitan Transportation commission

(MTc) adopted the Transportation 2035 plan for the San

Francisco Bay area, which specifies how some $226 billion

in anticipated federal, state and local transportation funds

will be spent in the nine-county Bay area over 25 years.

The plan included a program of incentives for cities

and counties to promote future growth near transit in

already urbanized portions of the area. it also included a

Transportation climate action campaign to reduce trans-

portation-related greenhouse gas emissions.

The plan called for expanding carpool lanes into a re-

gional Express lane Network that continues to grant car-

poolers and buses free access to the lanes but permits solo

drivers to pay to use available space in the carpool lanes for

a price. The goal was to use the money to finance comple-

tion of the planned express lane network sooner and fund

other mobility improvements like more express bus and rail

services in the region’s most heavily traveled corridors.

Citizens Weigh in on How to implement ‘anti-Sprawl’ law

▲ michael rex comments at hearing

—CONTINUED ON PAGE 40

Page 28: SC Magazine, Vol. 1, No. 2

SuStainable CommunitieS • March/april 201126

the U.S. has lagged behind other developed nations on

high-speed rail for years, and now it is falling behind

developing nations as well. a new crop of republican

governors and the GOp leadership in the house of represen-

tatives wants to keep it that way.

Newly elected republican governors in Florida, Ohio and

Wisconsin have loudly rejected federal funding for high-

speed rail that was included in the american recovery and reinvestment act of 2009 (arra). The money earmarked

for those states will be spent in regions that want the proj-

ects.

The house republicans now want to block Obama admin-

istration requests for $1 billion per year in additional funding

for its ambitious rail development plan. if they succeed, the

states that have accepted the arra funding could find it

very hard to proceed with their plans.

The Obama plan looked at the $8 billion provided in

the arra as a down payment “to jump-start a potential

world-class passenger rail system and sets the direction of

transportation policy for the future.”

“high-speed rail will modernize america’s valuable trans-

portation network, while reinvigorating the manufacturing

sector and putting people back to work in good-paying jobs,”

said Transportation Secretary ray lahood.

The administration sees high-speed rail as the key to

providing transportation for a growing population without

massive congestion on our roads, and with less pollution.

republicans and the Tea party activists who drive re-

publican positions are in a budget cutting frenzy, at least

when it comes to domestic programs supported by the Obama

administration.

But the governors who have rejected rail funding are slight-

ly more pragmatic, saying there are too many unknowns and

too many risks in the projects pursued by their predecessors.

according to the columbus Dispatch, Ohio Governor John

Kasich believes “there are too many unanswered questions

about how many people would ride the train, how fast it would

go and how much it would cost the state at a time when it

is facing an $8 billion budget shortfall -- and that he has his

own job-creation agenda to pursue.”

Kasich told the feds he would rather use the federal

funds approved for Ohio’s cleveland to columbus to cincin-

nati rail line for freight rail or highway infrastructure. his

request was rejected.

in Florida, incoming Governor rick Scott rejected federal

funding for a line from Tampa to Orlando primarily because

republicans take the offensive against high-speed rail—Governors’ rejection of grants triggers spirited debate

Federal Funding For High Speed rail Development

ph

OT

O: c

OU

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ESY

aM

Tr

aK

Page 29: SC Magazine, Vol. 1, No. 2

March/april 2011 • SuStainable CommunitieS 27

of concerns about the state’s liability for costs not covered

by federal funds.

ironically, the move came just a few weeks after the state

adopted a 50-year transportation plan calling for high-speed

rail (see around the Nation).

Wisconsin’s new governor, Scott Walker, is getting media

attention for trying to curtail

state workers’ bargaining

rights. But he also rejected

previously approved federal

money for passenger rail ser-

vice from Madison to Milwau-

kee to chicago. his position on

high-speed rail is simple: the

republican Governors Who rejected Federal Funds for High Speed rail

Scott Walker — Wi rick Scott — Fl john Kasich — oH

tion of the money rejected by Florida, Ohio and Wisconsin.

Other states are actively working on longer term plans for

high-speed rail.

as california Governor Jerry Brown put it:

“high speed rail is a clean, fast, accessible alternative to

air transportation and long in-state automobile trips. This

will create jobs and bring our communities closer together.

as our airports and highways become more crowded, the

need for high speed rail becomes even more acute.”

The debate over the Obama plan illuminated some deep-

seated positions on both sides of the discussion. pro-rail

groups focus almost entirely on perceived benefits of man-

aging congestion and pollution. Opponents hammer away at

the probability the projects will have construction cost over-

runs and that operational budget will run deficits. They do

not want taxpayers to be burdened with those costs.

The following excerpts from various articles and blogs

will give readers a taste of the arguments pro and con for

high-speed rail.

U.S. Dept of Transportation Secretary ray LaHood

excerpts from his statement announcing the $8

billion investment in passenger rail.

With this historic $8 billion investment by president

Obama, we are jump-starting american high-Speed rail.

The bulk of the awards go to new, large-scale high-speed

rail programs. in total, 31 states and the District of columbia

will receive awards. in addition to 13 corridor investments, we

are also awarding several grants for improvement projects

and planning. These efforts on existing routes and emerging

corridors will lay the groundwork for future high-speed and

intercity rail development.

We will make passenger rail more efficient, providing bet-

ter service in travel markets across the country.

• high-speed rail travel offers competitive door-to-door

trip times

rail money should be used for roads and bridges for vehicle

traffic.

“i believe it is a grave mistake for the federal government

to insist on building an unwanted passenger rail system at a

time when our roads and bridges are literally crumbling,” he

wrote in a letter to lahood.

Meanwhile california, illinois, Washington, Oregon, North

carolina, Vermont, Missouri and New York are forging ahead

with plans for high-speed rail and will absorb the realloca- >>

Page 30: SC Magazine, Vol. 1, No. 2

SuStainable CommunitieS • March/april 201128

• it reduces congestion on key routes between cities

• it reduces transportation emissions

• and, most of all, it creates the jobs of the future, the

jobs america needs right now

i am very proud of what our transportation infrastructure

helps us achieve every day. Moving hundreds of millions of

people and millions of tons of goods from place to place. it’s

amazing.

But it’s not good enough. it’s the infrastructure of a previ-

ous century, one with plentiful energy and no sense of the

role carbon emissions play in our health and the health of our

planet. and it’s not adequate for the growth of our nation’s

population, its commerce, its mobility.

We need an expansive, safe and energy efficient rail trans-

portation network. We need to generate economic develop-

ment. We need to reposition our infrastructure for the 21st

century.

We’re connecting cities that are too close for efficient air

travel but--with the highways connecting these cities nearly

choked beyond capacity--too far for productive road travel.

cities like St. louis and chicago.

We know that people already want to travel between these

cities; we’re here to begin making that downtown-to-down-

town travel significantly easier, faster, and more productive.

as i’ve mentioned on this blog before we received many

more applications than we had funds to distribute. States and

regions and communities across the United States are clam-

oring for high-speed service.

But some areas are just not ready. in some areas, invest-

ments to lay the groundwork for increasing the speed and

reliability of current service have been deferred and deferred.

Today we’re fixing that. We’ve made awards to states to

improve existing track, repair tunnels and bridges, and

increase the speeds of lines already serving passen-

gers.

We can’t just put faster trains on old tracks and

send them across bridges that need repairs. So, with

these targeted investments, passengers will see many

benefits in the near term.

high-speed rail corridors will offer competitive

door-to-door trip times. From los angeles to San

Francisco, a 2-hour 40-minute comfortable ride from

city center to city center will replace a 6-hour trek of

fighting traffic to get out of one downtown and fighting

traffic to get into another.

high-speed rail will create jobs now and for the

foreseeable future. We have commitments from over

30 companies in the rail business to create or expand

U.S. rail manufacturing should they be awarded con-

tracts for portions of this money. These companies

know high-speed rail, and they could become partners

to those awarded rail grants.

What kind of jobs? planning rail networks; designing, pro-

ducing, and laying miles and miles of track; building, installing,

maintaining, and operating equipment; constructing or up-

grading stations, tunnels, and bridges; operating the routes.

it’s pretty clear we’re talking about a lot of jobs--tens of

thousands. and let’s be clear about this: that $8 billion will do

its job-creation work right here in america.

high-speed rail reduces oil use and the environmental

costs of the mobility we prize so dearly. i’m an old-fashioned

guy who grew up in the Midwest--i love cars. But let’s be re-

alistic; cars are the least efficient method of travel we have,

even with our fuel-economy standards. rail ridership takes

cars off the road.

The interstate highway system that we take for granted

today did not materialize overnight. it has taken over a half-

century, and we’re still building onto the network.

But, the point is that today we can take it for granted. Our

highways take us where we need to go, and the nationwide

coast-to-coast system has been a model for the rest of the

world.

and president Obama’s vision for high-speed rail mirrors

that of president Eisenhower, the father of that interstate

highway system.

Florida Governor rick Scott: Statement on why he rejected federal high-speed rail funds

after thoughtful consideration, Governor rick Scott

informed u.S. transportation Secretary ray laHood of

Florida’s decision to reject president obama’s tampa to

orlando high-speed rail project. >>

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▲ California High-Speed rail

Page 31: SC Magazine, Vol. 1, No. 2

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Page 32: SC Magazine, Vol. 1, No. 2

30 SuStainable CommunitieS • March/april 2011

My decision to reject the project comes down to three

main economic realities:

• First – capital cost overruns from the project could put

Florida taxpayers on the hook for an additional $3 billion.

• Second – ridership and revenue projections are histori-

cally overly-optimistic and would likely result in ongoing sub-

sidies that state taxpayers would have to incur. (from $300

million – $575 million over 10 years)

• Finally – if the project becomes too costly for taxpayers

and is shut down, the state would have to return the $2.4 bil-

lion in federal funds to D.c.

The truth is that this project would be far too costly to tax-

payers and i believe the risk far outweighs the benefits.

historical data shows capital cost overruns are pervasive

in 9 out of 10 high-speed rail projects and that 2/3 of those

projects inflated ridership projections by an average of 65

percent of actual patronage.

it is projected that 3.07 million people will use the train an-

nually. Keep in mind that amtrak’s acela train in Washington,

D.c., Boston, philadelphia, New York and Baltimore only had

3.2 million riders in 2010. and that market’s population is 8

times the size of the Tampa/Orlando market.

president Obama’s high-speed rail program is not the an-

swer to Florida’s economic recovery.

We must make investments in areas where we will get a

return for the shareholders – Florida’s taxpayers.

rather than investing in a high-risk rail project, we should

be focusing on improving our ports, rail and highway infra-

structure to be in a position to attract the increased shipping

that will result when the panama canal is expanded when the

free trade agreements with colombia and panama are ratified

and with the expansion of the economies of central and South

america.

it is absolutely critical that we make smart investments

with taxpayer dollars, whether state or federal, and i believe

our state will be better served by spending these funds on

projects that will benefit Florida and not turn into a spending

boondoggle.

reaction to Gov. Scott’s decision to reject federal funding

andy Kunz, president of the u.S. High Speed rail

association in Washington, D.C.

as the leading organization advancing high-speed rail in

america, the US high Speed rail association must respond

to Governor rick Scott’s unfortunate decision to cancel the

Tampa to Orlando high-speed rail project. in making his deci-

sion, Scott relied on a controversial report on the Tampa-to-

Orlando project published in January by the libertarian rea-

son Foundation. a key adviser was robert poole, a founder

and transportation director of the reason Foundation, and

member of Scott’s economic transition team.

The reason Foundation is by no means an unbiased orga-

nization, as it receives funding from major conservative and

corporate donors including oil and highway interests, and

it’s consistently opposed to high-speed rail as a transporta-

tion alternative. Scott cited figures and projections pulled

directly from the reason Foundation report, using its false

comparisons with other rail projects to justify his decision.

Scott said, “capital cost overruns … could put Florida

taxpayers on the hook for an additional $3 billion,” but

he provided no evidence for this astounding number that

more than doubles the capital costs. The number is from

the reason Foundation report, a comparison with the esti-

mated cost per mile to build a segment of california’s high-

speed line, which is 111 percent higher than the cost per

mile to build the Tampa-to-Orlando line.

however, the building costs of the two projects are

hardly comparable because the california project has dif-

ficult right-of-way, land-use and terrain issues. The Tampa-

to-Orlando line has a long-established right of way on the

interstate 4 median with accommodations for high-speed

rail that have made it the most cost-effective and viable

project in the nation.

Scott also stated that “ridership and revenue projec-

tions are historically overly optimistic and would likely

result in ongoing subsidies that state taxpayers would have

to incur.” he again relies on the reason Foundation report,

which compares the annual ridership projection of 3.07 mil-

lion with amtrak’s acela train, serving only 3.2 million per

year in the Northeast corridor, with a total population eight

times larger than the Tampa-Orlando market.

This is another false comparison because amtrak’s total

ridership in the Northeast corridor is more than 12 million

per year, and additional ridership is constrained by commuter

trains in the corridor with an annual ridership of 250 million.

▲ Demonstrators in Florida showed support and opposition to a proposed high speed rail line from Tampa to Orlando.

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March/april 2011 • SuStainable CommunitieS 31

The Tampa-to-Orlando line would run on dedicated tracks with

fewer constraints and road crossings, allowing for faster and

more-frequent service. The ridership projections are based on

traffic congestion on i-4 and central Florida as a unique tour-

ist destination with 50 million tourists per year.

it is interesting to note another conclusion of the reason

Foundation report that, if the Tampa-to-Orlando project

were to move forward, the state should ensure that the

builder and operator would be financially responsible for all

cost overruns and revenue shortages. The business consor-

tiums vying for the project were prepared to do just that,

ensuring that Florida taxpayers would not be liable for any

future costs for building and operating the system. Scott

canceled the project before fielding business proposals and

dealt a major setback to what would have been the nation’s

first true high-speed rail line.

Today’s headlines illustrate the importance of reducing our

dependence on unstable foreign oil supplies, with oil prices

at about $100 per barrel and forecasts of $5 per gallon for

gasoline in the near future. Under that scenario, the Tampa-

to-Orlando high-speed rail line would be a great alternative

to driving on i-4 and would provide a model for america of

energy-efficient transportation for the 21st century.

Florida Sierra Club

Gov. Scott’s rejection of federal high speed rail funding is

a tragic loss for our state’s economy, especially our tourism

industry, and our environment, but a win for Big Oil.

Sierra club Florida regrets that Governor Scott has said

“no” to bringing 21st century transportation alternatives to

our state. This decision maintains Florida’s addiction to oil

and sends jobs to other states that will gladly accept our

share of high-speed rail funds.

Floridians lack transportation choices leaving us to

drive our cars and burn oil and pollute our air. currently

we have congested highways, dirty air and a need to

protect our coasts from oil drilling. Sierra club Florida

believes that now is the time to invest in and build the

foundation for a transportation system that helps move us

beyond oil. high Speed rail would have created jobs and

provided Florida with an oil free transportation option.

Governor Scott’s “NO” today means no jobs, no growth,

and no movement away from our state’s addiction to oil.

While Governor Scott expresses a concern for the oper-

ating expenses of high Speed rail, this decision ignores the

on-going boondoggle of spending billions of our tax dollars

on ever-expanding roads. in some parts of our state, roads

cannot be expanded any further to accommodate growth

and seasonal tourism traffic.

Despite this tremendous disappointment, Sierra club Flor-

ida will continue the fight for the clean transportation choices

that our state needs. Governor Scott has just done all in his

power to take away an important choice that would have put

Fl in the lead. it’s now up to Floridians to work together at

the local and regional level to rise to this challenge.

Illinois Transportation Secretary Gary Hannig

excerpts of press release, December 2010 about the

signing of a public-private partnership agreement on

high-speed rail development to bring illinois “one giant

step closer to achieving high-speed passenger service

between Chicago and St. louis by 2014.”

“clearly, the leadership, perseverance and commitment

of Governor Quinn, Senator Durbin, and our private sector

partners, has vaulted illinois into the lead on the devel-

opment of high-speed rail,” Secretary hannig said. “This

announcement is about more than just an historic achieve-

ment for illinois and the Midwest. it is a celebration of the

kind of partnership and vision that is creating jobs now and

providing needed access to a crucial regional transporta-

tion alternative.”

in September 2010, Governor Quinn announced that

illinois had become the first state in the nation to begin

high-speed rail construction through an initial agreement to

upgrade 90 miles of track between alton and lincoln. With

the full cooperative agreement now in place, construction will

continue in early spring from just south of lincoln to Dwight.

This phase of work is expected to conclude next fall.

The next step would then be the installation of new, en-

hanced grade crossing warning protection. The public can

expect to enjoy its first taste of 110 mile-per-hour train service

when a 20-mile segment between Dwight and pontiac is com-

pleted in 2012. procurement of new cars and locomotives, as

well as station upgrades, will be other facets of the project

completed under the cooperative agreement. >>

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Page 34: SC Magazine, Vol. 1, No. 2

SuStainable CommunitieS • March/april 201132

“it’s a wonderful day for illinoisans as we celebrate a mile-

stone achievement towards becoming the first state in the

nation to bring high-speed rail to fruition,” Governor pat Quinn

said. “We applaud the cooperation and hard work of all partici-

pating agencies to bring high-speed rail service, thousands of

jobs, and economic growth to communities across the state.”

“i’m proud that illinois continues to lead the country in its

pursuit of high-speed rail service. This agreement marks one

more milestone in our quest to make safe, reliable, high-speed

rail service a reality in just a handful of years,” said U.S. Sena-

tor Dick Durbin. “

The cooperative agreement also outlines current plans

for 110-mph high-speed rail service upon the completion of

the construction that began in September. The agreement

calls for a total of five daily round trips between chicago and

St. louis, including three daily high-speed round trips in the

initial 2014 schedule — and confirms on-time performance

expectations of at least 80 percent for the service. Expected

reductions in travel time of as much as 48 minutes between

chicago and St. louis are also noted in the agreement, short-

ening the trip between the two cities to as little as 4 hours,

32 minutes. amtrak operates passenger rail service along the

route in cooperation with Union pacific, which owns the track.

in January 2010, the Obama administration awarded il-

linois more than $1.2 billion in federal stimulus funds for high-

speed passenger rail projects, including corridor improve-

ments on illinois’ signature route: chicago to St. louis.

Ohio’s Outgoing Governor reacts to rejection of Funds

Outgoing Democrat Gov. Ted Strickland said: “Today is

one of the saddest days during my four years as governor

because i see jobs leaving Ohio, i see resources leaving

Ohio, i see vital infrastructure leaving Ohio. and i see

other states being enriched by resources that would oth-

erwise have created thousands of new jobs, revitalized our

cities and helped keep our young people in Ohio. i can’t

understand the logic of giving up these vital, job-creating

resources to california and other states at a time when so

many Ohioans need jobs.”

rail Written off as “romantic Notion”

excerpts from Wall Street journal op/ed by Wendell

Cox, principal of Demographia, a consulting firm based in

St. louis. He served on the amtrak reform Council from

1999-2002 and is co-author with joseph Vranich of the

2008 reason Foundation study. “the California High

Speed rail proposal: a Due Diligence report.”

On Thursday the Obama administration awarded $8 billion

in stimulus funds to plan and build high-speed rail projects in

california and Florida, and for other routine passenger-rail

projects masquerading as high-speed rail. This is a political

plum to the states that will receive the money.

it is also a dream come true for fans of bullet trains in

Japan and Europe and the faster, greenhouse gas-belching

Mag-lev (magnetic levitation) lines. But this is not money

well spent.

Supporters say high-speed rail is a cost-effective, “green”

solution to airport and highway congestion. in reality, it is

costly to build and operate and has a negligible impact on

highway and airport traffic. high-speed rail is driven by little

more than a romantic notion to confer a European ambiance

on american cities.

proponents also claim that high-speed rail is profit-

able, but this too is off the mark. internationally, only

two segments have ever broken even: Tokyo to Osaka

and paris to lyon.

ridership in these markets has been bolstered by high

gasoline prices and one-way highway tolls of $40 and $100,

respectively. These and other foreign routes have attracted

much of their ridership from a strong core of rail passengers

that does not exist in the U.S. ❧

For more information:

Midwest High Speed rail:

www.connectthemidwest.com

US High Speed rail Association:

www.ushsr.com

reason Foundation, lobbies against high-speed rail:

http://reason.org

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▲ the train depot in lincoln, illinois, will eventually see 18 passenger trains per day.

>>

Page 35: SC Magazine, Vol. 1, No. 2

March/april 2011 • SuStainable CommunitieS 33

“New opportunities to build lasting value” is the theme of the first annual San Francisco

conference on Sustainable housing and com-

munity Development, which will take place Sep-

tember 19-20, 2011.

“it’s been a challenging time for real estate

developers and city officials. Money has been

tight, and for affordable housing, resources have

diminished dramatically, “ said andre Shashaty,

conference chairman. “But this is also a time of

exciting changes in how we plan and develop our

communities – a time when we must look to the

future and forge new paths to healthier commu-

nities and a healthier environment.”

The conference combines high-level policy

discussions on new directions in policy and new

strategies for developers with nuts and bolts

sessions on getting deals done, including using

new models of public-private cooperation.

The big story in california is how to move

from the bold environmental visions of a.B. 32

and S.B. 375 to a workable strategy for more

compact development, including location of

housing affordable to all income groups closer

to job centers. Find out how planners, city of-

ficials and developers are working together to

realize the three goals of

• Environmental protection through reduction

of private vehicle usage and green house gas

emissions

• Economic development, including jobs and

more efficient use of government resources

• Equity for all income and ethnic groups

The conference is sponsored by the partner-

ship for Sustainable communities, a nonprofit

group dedicated to helping city planners and

development officials work with private real

estate interests to advance smart growth and

sustainable development.

cosponsoring is reznick Group, a top 20

national accounting, tax and business advisory

firm. Well known for our depth of knowledge

in real estate and tax credit services, we also

serve a wide range of industries that include

government, healthcare/long-term care, finan-

cial services, nonprofits, professional services,

renewable energy and technology.

Other sponsors include:

• low-income investment Fund

• local Government commission

• Nonprofit housing asssociation of Northern

california

Sustainable Housing & CD ConferenceSet for September 19-20 in San Francisco

• New directions in urban and regional planning and what they mean for developers

• Mixing uses to achieve sustainabil-ity, focusing on retail and housing (market-rate and affordable)

• implementation of new green build-ing standards including calGreen

• Financing green building and retrofits and renewable energy for homes

• New land use and zoning issues for affordable housing developers

• affordable housing weatherization and retrofits, including state and federal funding programs

• New opportunities for commercial

and mixed-use developments on infill locations

• assessing the potential and risks of transit-oriented development, includ-ing the challenges of preserving housing affordability while increas-ing density

• Strategies for coping with NiMBY and for winning entitlements

• The Green Financing Update: a re-view of sources & methods of financ-ing and equity syndication trends

• Energy and water-efficient building techniques and certifications

• renewable energy generation

• Winning zoning, design and parking concessions

The San Francisco Conference on Sustainable Housing and Community Development brings together policymakers and practitioners to explore

The preliminary line up of speakers includes:

• ophelia basgal, regional administrator, U.S. Dept. of housing & Urban Development

• Dana bourland Vice president of Green initiatives Enterprise community partners, inc.

• Cathy Creswell, acting director, ca Dept of housing & community Development

• Gary Downs, Nixon peabody

• Hasan ikhrata, Executive Director, Southern california association of Governments

• tim Kemper, regional Managing principal, reznick Group

• David reznick, principal and chairman, reznick Group

Save the Date: September 19-20, 2011and plan now to come to downtown San Francisco, ca

For details, go to www.p4sc.org/sfconference Or call 415-453-2100 x 302.To register now, send an email to [email protected] and put “conference” in the subject line. Or call 415-453-2100 ext 302.

Page 36: SC Magazine, Vol. 1, No. 2

phOTO: JM TUrEr, cOUrTESY WiKiMEDia

Focus on North Carolina

raleigh

planners

serve up

higher-density

solutions to

challenges

of growing

population,

limited land

raleigh, N.c.–if you haven’t been to North carolina lately, you might not recognize

it. New data from the 2010 U.S. census shows that North carolina’s population

swelled 18.5 percent over the last decade, making it the sixth fastest growing

state. in contrast, the total population of the United States grew at only 9.7 percent dur-

ing the same period. The state is home to 9.5 million people, putting it among the na-

tion’s ten most populous states.

To accommodate the growth, the state’s cities and towns are carefully planning land

use, zoning and public facilities investing. Even more noteworthy is the fact that they are

coordinating their efforts through the newly created statewide Sustainable communities

Task Force.

here in the state capital, a new comprehensive plan for the next 20 years was re-

cently adopted with the hope of redirecting a growth pattern that had earned the city

the nickname “sprawleigh.” The city now has over 400,000 people, and expects to add

120,000 households or 250,000 people by that year.

“We realized sprawl was not sustainable,” said Mitchell Silver, planning director. “We

realized we needed a new way to deal with growth so we had a serious conversation with

our residents.”

For one thing, projected increases in vehicle traffic would be difficult to accommo-

date, and most roads would need to be widened if the previous patterns of development

continued.

The city also had to look at demographics changes. The most fundamental trend is

Page 37: SC Magazine, Vol. 1, No. 2

March/april 2011 • SuStainable CommunitieS 35

the increase in single households.

By 2020 singles will surpass families. By 2050, the

overwhelming majority of households will be single. and

that will lead to a substantial oversupply of single-family

homes. Other factors include the rising price of gasoline

and the potential for water shortages, Silver said.

The first step in writing the 2030 comprehensive plan

was to analyze the city’s land capacity. The city has about

20,000 acres of developable land, not counting redevelop-

ment sites. To get the most out of that land, the plan calls

for increased density. it identifies 8 growth centers and

12 growth corridors. The plan envisions 60% to 70% of all

new growth is to be in designated centers, with only 30%

in suburbs.

Density is a key method for keeping the tax base

stable, Silver said. it would take 600 homes on 150 acres

to equal the tax value of one high rise downtown, Silver

said. a downtown high rise on 3 acres generates enough

taxes to pay off the required infrastructure in 3 years, for

an annual return on investment of 33%. “if you don’t sup-

port downtown development, you are really saying ‘raise

my taxes,’” he said.

The 2030 plan was adopted in 2009. The zoning and

design code changes to implement the plan are under

discussion this year. city leaders are trying to put a half-

cent referendum before voters for development of mass

transit.

Silver acknowledges that there is sometimes resis-

tance to high-density development. To win support, he ad-

vises focusing on how a proposed project will look and how it

will fit into a neighborhood. his strategy is to mitigate density

by careful handling of building frontages, heights and transi-

tions to lower-density areas. “height is the key, along with the

transition to neighborhood, so the surrounding blocks are not

overwhelmed,” he said.

raleigh has a hybrid zoning code, which combines elements

of form-based code with traditional zones for various uses.

By frontage, Silver means how the first 100 feet of a

parcel will be treated, as well as parking minimums and

maximums.

in corridors with higher density, the city wants more

public transit, more pedestrians and fewer huge parking

lots in front of big boxes. One idea is to allow retailers to

take corners of their large parking lots and use them for

separate retail or mixed-use structures closer to the street

frontage.

along with the comprehensive plan, the city is also com-

mitted to sustainability. it defines that as including three

fundamental principles: economic strength, environmental

stewardship, and social equity. according to the city, “a

sustainable community is a thriving community; one that

provides opportunity for all residents, cares for the environ-

ment, and has long-term vision for a prosperous future.”

Sustainable raleigh was created to provide guidance

FACTS AT A GlANCE: raleigh, N.C.

raleigh is the capital of North carolina, and the

largest city in the state’s research triangle, also

known as raleigh-Durham and commonly referred to

as simply “the triangle.” The region is home to North

carolina State University, Duke University, and the

University of North carolina at chapel hill.

The U.S. census Bureau reported raleigh’s 2010

population at 403,892. This reflects 46.3 percent

population growth over the past decade.

raleigh remains the second largest city in North

carolina. charlotte is the largest city.

http://www.raleighnc.gov/

a shopper enjoys the pedestrian-friendly

shopping on lassiter mill road at north Hills.

>>

Page 38: SC Magazine, Vol. 1, No. 2

SuStainable CommunitieS • March/april 201136

for policy development and goal setting for

the city of raleigh based on these principles.

The organization partners with local busi-

nesses, universities, civic, and non-profit

organizations to build relationships, and work

collaboratively with all departments within

the city of raleigh in its mission to become a

leader in sustainability.

North hills – a Walkable Mixed-Use community

North hills is a successful infill

redevelopment project that exemplifies many

of the goals for raleigh’s 2030 plan. in the

first phase, a deteriorating enclosed shopping mall was

transformed into a bustling mixed-use center. The site was a

brownfield, and remediation is nearly complete, according to

Kane realty corporation, the developer.

North hills now features 100 acres of thriving mixed-use

development. retail, dining, apartments, condos, townhomes

and single-family residences are anchored by a luxury hotel,

class-a office space and a 14-screen movie complex. Future

plans include a continuing care retirement community and

another hotel; construction will begin in the fall of 2011.

The development has 900,000 sq. ft. of retail, 700 resi-

dential units (all rental), 229 hotel rooms and 450,000 feet of

office space.

The most recently completed phase was park & Mar-

ket, which opened in 2010. park & Market is luxury apart-

ments above storefront shopping and restaurants with a

harris Teeter grocery store. also completed in 2010 is the

captrust Tower at North hills, class a office space with

amenities and fine dining on the ground floor. This was a

joint project with Kane realty corporation and Duke realty

corporation. ❧

a key part of the movement toward more sustainable

communities is regional cooperation and collaboration.

This means overcoming the tendency of local

governments to compete with each other to attract

employers and residents.

The North carolina General assembly chose to

encourage cooperation by establishing a Sustainable

communities Task Force within the Department of

Environment and Natural resources.

North carolina is now “the latest state to recognize

the connections between cross-agency governance at the

state level, coordination with stakeholders at the local

level, and sustainable communities on the ground.”

The task force’s design makes the connection between

land use patterns and a range of sustainability challenges.

Members include appointees from the North carolina

Departments of commerce, Environment and Natural

resources, Transportation, administration, health and

human Services and the housing Finance agency,

as well as representatives from the North carolina

american planning association, county government,

city government, a regional collaborative organization,

a sustainability nonprofit, the building industry and the

banking industry.

With $250,000 in state funding, the 13-member task

force is charged with:

• promoting regional sustainability partnerships

• providing technical assistance to state agencies, local

government, regional collaborations, and nonprofits

• indentifying and pursuing sustainable development

funding

• Making recommendations for sustainable

development policies and program appropriations to

Governor Bev perdue, members of her cabinet, and

the General assembly

• Distributing task force grants to regional sustainable

development partnerships

• Developing a common local government sustainable

practices scoring system

• pursuing opportunities for coordination among state

agencies and reduced overlap in the responsibilities

of regional entities

New task force encourages regional cooperation

▲ North Hills area in Raleigh offers a mix of uses in a walkable urban

setting, just the kind of development the city wants to see more of.

>>

Page 39: SC Magazine, Vol. 1, No. 2

March/april 2011 • SuStainable CommunitieS 37

In a city where people love cars and car racing, you wouldn’t

think the idea of pedestrian- and bicyclist-friendly “complete

streets” would go over very big. But the city of charlotte has

been putting its streets on “road diets” with great success.

There is a commitment by the city to use transportation

investments not only for mobility, but to create great places.

For many years now, the city has looked at streets as more

than just a way to get cars from one place to another.

“as our director says 13% of all land in charlotte is made

of public streets, so we have an opportunity through streets

to create a great public realm,” said Dan Gallagher, aicp,

transportation planning manager for the city.

car racing is very popular in charlotte, and in 2010, NaS-

car opened its racing hall of Fame right downtown. it used to

be that people liked to drive down city streets fast as well, but

the city’s transportation department is ending that practice

one road at a time.

East Boulevardremake

On East Boulevard, driv-

ers used to exceed the speed

limit routinely. Neighborhood

residents felt like the four-

lane road was a barrier that

they dare not cross on foot,

forcing them to drive short

distances from one side of

the district to the other.

input from residents and

business owners resulted in

a transformative vision for

this major cross-town street

to become a more neigh-

borhood friendly complete

street.

“it was considered a di-

vider of [the] neighborhood,

people did not want to cross

it, and that was a problem.

people told us they wanted to

walk to [the] park or elementary school,” said Gallagher. The

city responded.

instead of two lanes in each direction, the road was reduced

to one lane in each direction, with a new center turn lane, plus

bike lanes, and parking. The city installed pedestrian refuge

medians with landscaping at each intersection. as opposed to

a continuous median, the pedestrian refuge medians make it

easier to cross the street without blocking left turn access to

driveways.

it also used “pedestrian bulbouts,” which extend the

corner sidewalk at an intersection to reduce the crossing

distance for pedestrians.

Gallagher says the revamped street can accommodate the

same traffic volume it did before but at lower speeds, since

there is no passing. in addition to making the street easier to

cross and allowing bicycle use, the change is also expected to

reduce accidents.

Cities Get High returns From low Cost upgrades

STREET WiSE:

phOTO: paTricK SchNEiDEr phOTOGraphY, cOUrTESY OF ViSiT charlOTTE

Page 40: SC Magazine, Vol. 1, No. 2

SuStainable CommunitieS • March/april 201138

The city has completed 19 road diets

and has 9 more on the books.

Economy “Complete Street”

charlotte has some advantages over

other cities in its ability to innovate. it is

a fast growth city with a strong revenue

base, so it has not had to cut back on

staffing and can still afford capital im-

provements.

East Boulevard involved substantial

capital improvements, and the actual road-

work cost about $800,000 for one mile.

There is, however, an economy ver-

sion of the road diet. in fact, many road

diets involve nothing more than recon-

figuring the lanes through restriping as

part of routine resurfacing projects.

Unlike more extensive streetscape

projects, street conversions transform

a street through new lane markings alone. While the actual

curb-to-curb road width does not change, the new lane lines

can transform a street to accommodate more users without

adding to the cost of normal resurfacing.

Typically, the city takes a road from four travel lanes for

cars to three travel lanes for cars, and adds two bike lanes. This

makes it easier for motorists and cyclists to share the road, as

well as protecting pedestrians by providing a buffer space be-

tween roads and sidewalks.

The additional 4 to 5 feet of buffer between walkers and

cars makes a difference, Gallagher said. it makes pedestrians

more comfortable and more likely to walk, he said.

Gallagher’s department takes a very methodical approach

to road upgrades, conducting surveys and consulting neigh-

borhood residents on its design ideas. it has found that the

street layout preferred by most residents, includes a planting

strips between the sidewalk and travel lane.

Charlotte’s Urban Street Design Guidelines

The changes on East Boulevard reflect a philosophy ad-

opted by the city nearly ten years ago in its Urban Street De-

sign Guidelines. The guidelines state the city’s belief that the

safety, convenience, and comfort of cyclists, pedestrians, tran-

sit users, motorists, and the surrounding community, will all be

considered equally when planning and designing streets.

To accomplish this, street planning and design must be a

group process to adequately reflect the varied perspectives of

the street’s users. Simply put, the traditional method of plan-

ning and designing streets only to increase vehicle capacity is

increasingly at odds with other, emerging objectives to create

more and better land use and transportation choices.

While increased connectivity should encourage travel by

non-auto modes, all five street types are also explicitly ex-

pected to provide, in some form, for all modes. There is a shift

in modal emphasis among the street types, with the parkway

▲ East Boulevard

Where streets are complete

According to the National Complete Streets Coali-

tion, 203 U.S. jurisdictions have adopted policies or

have made written commitment to do so. Among

the places with some form of complete streets

policy are the states of Oregon, California, Illinois,

North Carolina, Minnesota, Connecticut and Florida.

The City of Santa Barbara, California calls for

“achieving equality of convenience and choice” for

pedestrians, bicyclists, transit users and drivers.

Columbia, Missouri adopted new street standards

to encourage healthy bicycling and walking. And

the regional body that allocates federal transporta-

tion dollars around Columbus, Ohio has directed

all projects provide for people on foot, bicycle and

public transportation.

The coalition has produced a map that shows

where policy change is happening. It can be found

at http://www.completestreets.org/complete-

streets-fundamentals/complete-streets-atlas/

The coalition’s web address is http://www.com-

pletestreets.org/.

Page 41: SC Magazine, Vol. 1, No. 2

March/april 2011 • SuStainable CommunitieS 39

having the strongest automobile

emphasis and the Main Street

having the strongest pedestrian

emphasis. Boulevards, avenues

and local Streets are expected

to provide some balance among

the modes.

Buffalo Leads New york Cities on Complete Streets

can economically-challenged

rust belt cities gain by redesign-

ing streets to provide more than

a fast route for cars? Yes, ac-

cording to Demone a. Smith, a

member of the common council

in Buffalo, N.Y.

at his behest, the council

voted to create a new complete

Streets coordinator position, to

be shared by the city’s Office of

Strategic planning (“OSp”) and

Dept. of public Works (“DpW”).

This new staff position will be charged with implement-

ing the city’s complete Streets policy, which was adopted in

2008, and regularly interacting with and reporting progress

to the city’s Bicycle pedestrian advisory Board.

Buffalo’s adoption of a complete streets policy put it ahead

of other New York State jurisdictions in remaking its road-

ways, according to the Tri-State Transportation campaign,

which works to create more sustainable, equitable and transit

friendly communities in downstate New York, New Jersey,

connecticut and beyond.

The first fruits of the policy were realized when Buffalo

rebuilt the 700 block of Main Street, the design included a me-

dian strip, bike lanes, new street trees, and a switch from one-

way to two-way traffic, according to the campaign.

For more info, visit the Tri-State Transportation campaign

at http://www.tstc.org/. ❧

The N.c. Board of Transportation has strongly

demonstrated its commitment to improving condi-

tions for bicycling and walking in North carolina by

passing a resolution to make bicycling and walking a

critical part of the state’s transportation system.

although the department incorporated bicycle

and pedestrian elements — including bike lanes and

sidewalks — into many of its highway projects prior

to September 8, 2000, this resolution exemplifies

the department’s dedication to integrating these ele-

ments into its long-range transportation system.

it also acknowledges the benefits that bicycling

and walking offer: cleaner air, reduced congestion,

more livable communities, more efficient use of road

space and resources and healthier people.

The resolution also encourages cities and towns

across the state to make bicycling and pedestrian

improvements an integral part of their transportation

planning and programming.

The N.c. Board of Transportation approved this

policy at the July 2009 board meeting. The policy

requires planners and designers to consider and in-

corporate multimodal alternatives in the design and

improvement of all transportation projects within a

growth area of a municipality unless certain circum-

stances exist.

The board has had increasingly detailed policies to

encourage bicycle use on the state’s roads since 1978.

north Carolina goes from good roads to “complete streets”

▲ la Jolla Blvd. in the Bird Rock neighborhood of San Diego was taken from five lanes down

to two lanes to help create a more successful retail area. The city conducted an extensive

public input process with help from consultant Dan Burden, founder of the The Walkable and

livable Communities institute (www.walklive.org) The roadway design took out 4 signals

and one four-way stop, replacing these with 5 roundabouts. Today pedestrians only cross

12-14 feet, with low vehicle speeds, versus 78 feet with signal designs. Retail life is now

prospering, and there is no traffic being deflected into the neighborhood.

Page 42: SC Magazine, Vol. 1, No. 2

SuStainable CommunitieS • March/april 201140

Urban agriculture is turning vacant land into fertile ground for community transformation. Glean useful lessons from this powerful movement taking root across America.

Available at APAPlanningBooks.com

Are community farms and gardens planting the seeds for healthier cities?

Credit: Adam Golfer

Urban Agriculture: Growing Healthy, Sustainable Places Kimberley Hodgson, aicp; Marcia Caton Campbell; and Martin Bailkey2010 | 148 pp. APA Planning Advisory Service $60 (paperback) | PAS subscribers $30

APA_SustainableComm_0311.indd 1 2/28/11 1:23:23 PM

CALiforNiA VS. SPrAWL: the BAttLe BeGiNS

—FrOM PAGE 24

—FrOM PAGE 25

input on how to make the region more sustainable. it has held

workshops throughout the region. it recently sent a survey to

18,000 residents in the six county region. hoping for at least a

10% response, results will come out this summer.

The region has something no other region can boast – a

public transit war chest. a recently approved sale tax mea-

sure will generate $40 billion for transportation improve-

ments, of which $30 billion is earmarked for transit.

The money will expand a network of light rail, commuter

rail and subways that did not exist at all before 1990.

however, ScaG is not looking to transit as the primary tool

CHiPPiNG AWAY AT SPRAWl

If you fly into Los Angeles

at night, look to the east as

you approach the airport in

Inglewood. That “carpet of

lights” that goes on and on

is the second district of LA

County. It’s one of the most

vivid examples of low-rise

sprawl in the region, but Su-

pervisor Mark ridley-Thomas

wants to change that.

The supervisor knows that

the expansion of public transit throughout the region

represents a great opportunity to create new neigh-

borhood centers. But he sees the potential not just of

physical focal points but creation at the same time of

civic and social centers for a stronger community.

With sprawl, you tend not to have a strong civic,

social, and political infrastructure, said Dan rosenfeld,

a top aide to ridley-Thomas.

rosenfeld is quick to point out that low-density

single-family neighborhoods are important and will

still dominate the district. rather, he is looking at

increasing density at the intersections of major thor-

oughfares, primarily for neighborhood centers, with

buildings of about 7 stories, with only a few going as

tall as 20 stories.

He said buildings that up to 85 feet tall are not

likely to overwhelm nearby single-family housing.

rosenfeld and the supervisor want to see a height

limit and limits on the amount of parking that’s pro-

vided in new development to discourage the distortion

in transportation choices caused by free or subsidized

parking.

They also want to see conversion of commercial

space to mixed use, generally with housing on top of

ground floor retail.

“The MTc plan is a failure,” according to Michael rex, a

Marin county architect and advocate for improved transporta-

tion options. Speaking at the TaM meeting, he said the plan

ignored the preference of the public for more rail travel op-

tions and focused on “tweaking” the region’s freeway system.

MTc did an extensive public outreach survey in preparation

of creating their 2035 plan, rex said. 65% of respondents said

extending rail lines should be a high priority. Only 38% replied

that improving freeway performance should be a high priority.

rex pointed to two charts from the MTc’s own report on

the projected impact of implementing the plan.

MTc’s objective in the earlier 2005 plan was to reduce

vehicle miles travelled (VMT) per capita from 20 miles per

day to 18 miles per day. if MTc’s 2009 transportation plan

for 2035 plan is implemented, VMT will actually increase to

21 miles per day, worse than today and barely a fraction less

than what the current trend projects without the plan.

regarding delays due to traffic congestion, rex said, the

2005 plan’s objective was to reduce delays from 37 to 32

hours per year, but after implementing the 2035 plan, they

project we’ll end up being delayed longer, about 47 hours

per year. That’s better than the 73 hours of delay the current

trend could produce without MTc’s 2035 plan, but still signifi-

cantly worse than today, rex said.

“it seems to me that a plan that projects spending $226

billion that results in more vehicular miles traveled and worse

delays than we’re experiencing now is a failed plan,” rex said.

he said MTc needs to start over to create a better plan as

part of the S.B. 375 process. The question that no one can an-

swer is whether better solutions can be found under S.B. 375

than what regional planners came up with before the “anti-

sprawl” movement became enshrined in state law. ❧

for reducing the region’s carbon emissions. it sees land use

and development patterns as at least equally as important.

The problem with transit is that it’s too expensive com-

pared to driving. The answer is to change that equation, ac-

cording to ikhrata.

“We are not charging the real cost of using our cars. i can

park for $5 for all day in downtown los angeles. it’s ridiculous,“

he said.

ikhrata went on to point out the biggest challenge of all

facing ScaG, aBaG and other MpOs: What assumptions to

make about “externalities” that are beyond the control of

planners and elected officials alike.

For the S.B. 375 process, all the planning requires taking

educated guesses about population growth and job creation.

it also requires projections about the future cost of gasoline.

“When gas hits $5 or $6 per gallon, it will be a different

discussion,” said ikhrata. For its planning, ScaG is assuming

gas will cost $5.50 per gallon by 2020 in today’s dollars. ❧

Page 43: SC Magazine, Vol. 1, No. 2

Urban agriculture is turning vacant land into fertile ground for community transformation. Glean useful lessons from this powerful movement taking root across America.

Available at APAPlanningBooks.com

Are community farms and gardens planting the seeds for healthier cities?

Credit: Adam Golfer

Urban Agriculture: Growing Healthy, Sustainable Places Kimberley Hodgson, aicp; Marcia Caton Campbell; and Martin Bailkey2010 | 148 pp. APA Planning Advisory Service $60 (paperback) | PAS subscribers $30

APA_SustainableComm_0311.indd 1 2/28/11 1:23:23 PM

Page 44: SC Magazine, Vol. 1, No. 2

SuStainable CommunitieS • March/april 201142

Cities have many reasons for want-

ing to encourage more compact

land use patterns and more use

of transit, including the reduction of

greenhouse gases. But many are most

concerned with economics.

“The economic prospects for com-

munities will start to distinguish between

those that are petroleum dependent and

those that are less so,” said James char-

lier president of charlier associates, inc.

(cai) a transportation planning firm based

in Boulder, colorado.

Many cities want to reduce their

vulnerability to the economic risk of

unpredictable and potentially very steep

increases in gasoline prices.

“For most of my clients, the story is

not climate change, its economics,” said

charlier.

Cost of Gas Drives Housing Choice

“Their ability to impact climate change

is miniscule. however, their relative com-

petitiveness in their region is something

they can do something about,” he said.

The current fluctuations in oil and gas

prices are only a precursor of things to

come, according to charlier. he believes

that “we are very close to being maxed

out in our ability to deliver oil to market.

Demand is right up against supply capa-

bility.”

The supply of oil and the cost of gas

will affect everyone who has to drive a lot

to get to work or school or services, but it

will affect lower-income people the most.

communities that are dependent on

by andre Shashaty

Cities See economic risk of Failure to Develop transit options

Page 45: SC Magazine, Vol. 1, No. 2

March/april 2011 • SuStainable CommunitieS 43

private cars won’t have the adaptability that more urban places do, he said. Job

formation will gravitate toward the places that offer transportation options, he said.

The demand for gas is dependent on how much americans drive, which is

measured by vehicle miles travelled or VMT. During the recession VMT has de-

clined on a per capita basis.

Tract-Housing “Nauseates” Millenialshowever, due to population growth, VMT is still rising overall. Factor in the

Graphs compiled by James Charlier of Charlier Associates, inc. show that vehicle miles travelled declined during the recession and have just begun to inch back up. Gas price increases are likely to contribute to an ongoing decrease in vehicle miles travelled on a per capita basis. However, population growth will mean the nation as a whole will continue to drive more. Another graph shows that domestic oil production, even with the addition of drilling in the Arctic, is projected to remain steady, while oil use for transportation is expected to keep rising rapidly, even with increases in Corporate Average Fuel Economy (CAFE) standards. looking back to 1955, Charlier’s data shows that vehicle miles travelled in the US have increased at a much faster rate than our population.

demand from the developing countries

like china, and the currently known

reserves of oil might last less than

40 years, he said. New supplies can

be developed but they will be very

expensive.

charlier believes city governments

understand these trends, and are

responding by encouraging walkable

mixed use, transit-served urbanism.

another powerful influence is the

changing preferences of the new gen-

eration of young adults, often called

Millenials, charlier said. This genera-

tion is choosing a different, less car-

dependent lifestyle. Or, as charlier put

it so succinctly, “the idea of a three-

bedroom tract house in the suburbs is

nauseating to most kids.”

They are driving less than other gen-

erations, and are less interested in even

having a driver’s license, he added.

“people want to be less car de-

pendent,” he said. “That’s why hous-

ing prices in transit-served areas are

skyrocketing and prices in edge cities

have cratered,” he said. ❧

Page 46: SC Magazine, Vol. 1, No. 2

With just about a year left to spend around $2.5

billion in remaining economic stimulus funds,

1,000 state and local administrating agencies

are pushing hard to meet goals for retrofitting homes

and apartments to save energy. They know the stakes

go way beyond just how much they can save low-income

families on utility bills.

in the current politically charged atmosphere, noth-

ing would please critics of federal spending on economic

stimulus more than failure to spend all the money by the

March 2012 deadline. On the other hand,

government watchdogs and cautious

housing and environmental groups are

concerned that the money will be spent

in a rush, accomplishing far too little in

the effort to cut energy use from millions

of aging single- and multifamily homes.

The federal Weatherization assis-

tance program (Wap) received an infu-

sion of just under $5 billion as part of the

2009 american recovery and reinvest-

ment act (arra) stimulus program. The

money has to be completely obligated by September 30,

2010 and spent by the end of March 2012.

Success in spending the Wap money has been care-

fully watched, largely because it represents a one-time

cash infusion to upgrade the nation’s housing stock.

after the money is gone, the most the Department of

Energy (DOE) can hope for is $320 million per year.

That’s what the Obama administration is seeking from

congress. The house of representatives has voted to

appropriate nothing for the program.

The program began in 1976 for weatherizing single-

family homes. Even though it has been allowable to do

multifamily projects since 1985, that authority has not

been widely used by local sub recipients. Until now.

With pressure on to get the money out, more states

are working to start or accelerate programs aimed at

apartments occupied by low-income households.

at press time, states had only spent about half the

stimulus money, so they will have to hustle to avoid

sending money back to the U.S. Treasury. DOE is say-

ing it expects to spend 95 percent of the money by the

deadline based on current rate of spending and pro-

duction of weatherized units. it has an official goal of

591,000 units, but is hoping to hit 700,000. it expects

DOE targets apartments for 20% of production as spending deadline nears

Green building gets all the media attention but cutting

greenhouse gas emissions from structures depends also on

retrofitting existing buildings. Is the $5 billion provided in

the 2009 economic stimulus package making a dent in the

problem of inefficient buildings? Sustainable Communities

magazine takes an in-depth look at the successes and fail-

ures of the Weatherization Assistance Program (WAP), espe-

cially in regard to multifamily housing.

multifamily Weatherization Hits High Gear

Weatherization technicians repair and seal around windows

SuStainable CommunitieS • March/april 201144

Page 47: SC Magazine, Vol. 1, No. 2

March/april 2011 • SuStainable CommunitieS 45

that 20% of those will be in multifamily properties. (See chart

for state-by-state breakdown of spending.)

in addition to weatherized units, DOE says it is also creating

a new generation of “clean energy workers” and is employing

more than 15,000 workers nationwide.

DOE said weatherization assistance reduces energy con-

sumption for low-income families on average 35 percent, sav-

ing families on average more than $400 on their heating and

cooling bills in the first year alone. Nationwide, the weatheriza-

tion of 300,000 homes was complete as of January, saving an

estimated $161 million in energy costs in just the first year.

One of the biggest complaints against the program is the

failure to use the funds to retrofit significant numbers of feder-

ally assisted apartments. a report from National consumer

law center lambastes hUD and DOE for not doing a better job

to coordinate their policies to facilitate more work on assisted

housing. (See box for details.)

a handful of states moved quickly to take a proactive ap-

proach to using the funds for multifamily, according to the lo-

cal initiatives Support corp (liSc). This includes Florida which

allocated 20% for apartments, rhode island, which allocated

33% and New York, which created a 12% setaside. Other states

that have tried to encourage use of the program for apart-

ments include Ohio, Oregon, pennsylvania, Texas and Washing-

ton.

Now, more states are joining the effort to get apartments

into the mix, according to Doug Gurkin of Edgewater Group En-

ergy Solutions (EGES), based in Spicewood, Texas. These states

include South carolina, Georgia, Florida and Michigan, he said.

One of the states just getting into the multifamily weath-

erization business is Michigan, where clEaresult, an energy

consulting firm, has a state contract to work with the state’s 30

community action agencies to get 3,000 apartments weather-

ized within a year. Gurkin weatherized a 160-unit property in

holt, Mich., as prototype to help train the staffers implementing

the effort.

in california, however, low-income housing advocates are

disappointed by the programs’ track record. at press time in

mid-March, Wap money had been used for only 6,568 multi-

family units – of which only 368 are units from projects on the

official DOE list of hUD or USDa-assisted properties, according

to the state Department of community Services & Develop-

ment. There are about 90,000 units of federally assisted rental

housing in the state.

Making Strides for Multisin most years, 6 to 10% of Wap production is for units in

multifamily buildings. DOE started pushing to do more mul-

tifamily units in 2009, when it entered a memorandum of

understanding with the Department of housing and Urban

Development. Since then, DOE says it has more than doubled

multifamily as a percentage of its production, said Bob adams,

a supervisor at DOE overseeing the program.

“We feel confident we will surpass 20% of all production be-

ing for multifamily in the current program year,” he said.

DOE has been criticized for not doing enough to advance

the state of the art in multifamily weatherization. But adams

said it is taking important steps in that direction, directing a

great deal of training and technical assistance at helping pro-

gram subrecipients get up to speed on multifamily.

it is also creating a multifamily energy audit tool that will

work for not just Wap-eligible units but all multifamily units.

The work is being done by lawrence Berkeley National labora-

tory and Oak ridge National laboratory. it will have different

modules for different housing types and variations for different

regions.

DOE is also starting to put together guidelines on how to do

▲ Weatherization technician drilling siding for sidewall insulation

▲ Crew installing a solar panel for a solar hot water system

>>

Page 48: SC Magazine, Vol. 1, No. 2

SuStainable CommunitieS • March/april 201146

weatherization for apartments, including work specifications

and technical reference standards.

he added that DOE is also trying to figure out a way to

overcome obstacles to use of the program on housing financed

with low-income housing tax credits.

DOE sets the general direction and issues regulations, but

the program distributes money by formula to 59 grantees,

which in turn distribute it to community action agencies, non-

profits and units of local government.

Some states have given their housing finance agency pri-

mary responsibility for the program but there is a great deal of

variation in which state agency is in charge.

The program is undergoing its first national evaluation in

two decades. DOE is also spot checking 30,000 units to make

sure the work is being done well.

Helping Owners Access WAP The increasing effort to spend Wap funds for multifam-

ily could help states get the money out in time. it also

presents a great opportunity for owners of properties oc-

cupied by tenants earning less than 200% of the federal

poverty level, or about $44,100 for a family of four. That’s

the maximum a household can earn and still be eligible for

a weatherization grant.

“With all the differences in the implementation of Wap,

one thing remains constant; this is an incredible opportunity

for low-income and workforce rental housing to become more

▲ Mick Hayes, intake specialist for Edgewater, talks with

managers at CopperTree Apartments in Houston, which was

weatherized with federal funds.

To improve the state of the art

in building retrofits, DOE awarded

grants for innovation in 2010. An

award of a Weatherization Innovation

Pilot Program grant of $2.59 mil-

lion went to Stewards of Affordable

Housing for the Future (SAHF) for a

demonstration that would leverage

the grant three to one with other

funds to retrofit 2,500 affordable

apartments at a cost of $3,000-

$4,000 each. rick Samson, who

heads SAHF’s energy division, notes

that “the power of the demonstra-

tion is twofold. It would bring energy

performance contracting into the

private affordable housing sector and

it would do so largely with borrowed

funds, making it widely replicable in

the assisted housing portfolio.”

There will be a mixture of fam-

ily and senior properties in perhaps

five or six states, all owned or

controlled by SAHF members, who

are national nonprofit developers.

SAHF is in the final stages of project

selection. Typically all units are as-

sisted under section 8 or a project

rental assistance contract (PrAC)

and in projects that HUD has certi-

fied as being eligible or that owners

will certify under a process recently

released by HUD.

innovative approaches being tested

FACTS AT A GlANCE: Weatherization

Program was created in 1976 and was expanded to include apartments in 1985.

An energy audit is done to determine the scope of work for each unit.

The grant covers 100% of the cost of eligible improvements.

Maximum grant: $6,500 per unit, plus money to address health and safety risks.

Common areas are not covered.

Usually, master-metered projects can be weatherized if the owner can demonstrate that the cost savings goes to tenants through a reduction of rent.

The program can be used for building-wide improvements, like new central heating, if at least 66% of the units are occupied by eligible low-income households.

>>

Page 49: SC Magazine, Vol. 1, No. 2

March/april 2011 • SuStainable CommunitieS 47

energy efficient,” said Doug Gurkin of EGES.

in an effort to utilize Wap funds for his own apartment

properties, Gurkin realized how complicated the application

process was for multifamily. Now he has completed weather-

ization for several of his own properties and is working as a

facilitator for other property owners who need helping making

sense of the program.

as DOE acknowledges, only a few states have solid ex-

perience making the program work for multifamily. Even

in those states, it is still cumbersome, generally requiring

evaluation of tenant eligibility and potential improvements

on a unit-by-unit basis.

Sub-recipients are responsible for allocating the Wap funds

at the local level, and have substantial discretion in how they

operate and what they require of applicants.

There has been some effort at the federal level to stream-

line use of the program for federally assisted apartments for

low-income families. The U.S. Department of housing and

Urban Development (hUD) and the U.S. Department of agri-

culture (USDa) have provided the Department of Energy a list

of properties occupied by residents that automatically qualify

by income.

Gurkin’s firm has now helped owners of 4,000 units

complete weatherization, and has 30,000 more units in

the pipeline. he is now working with owners in arizona,

Florida, Georgia, South carolina, North carolina, Virginia,

Maryland, pennsylvania, New York State, Ohio, indiana,

illinois, Missouri, Oklahoma, Tennessee, Washington, Min-

nesota and Nebraska.

Gurkin said it is important to note that the tenant is the

applicant for this program, not the owner. income information

must be gathered for each tenant on properties not on the

hUD or USDa lists. Therefore, unless a majority percentage

of tenants agree to provide the required documentation, local

sub-recipients cannot perform under the program. Edgewater

has perfected a system for getting tenants involved and doing

the necessary income and utility spending checks.

in Texas weatherization of multifamily properties is pay-

ing off for tenants, said connie Gray, housing and Energy

Director for programs for human Services, inc. in Orange

Texas, which is east of houston and just a short drive to the

Gulf coast.

“Through Wap and the federal low income home En-

ergy assistance program (lihEap), low-income apartment

residents receiving weatherization measures are no longer

having to choose between keeping their loved ones cool or

warm, or utilizing their money towards food, medicine or even

clothing instead.”

She said weatherization is reducing their cooling and heat-

ing bills and keeping their families healthier and more comfort-

able while conserving energy at the same time. There is a sav-

ings of 25-30% in tenant electric bills, which is a huge recurring

benefit.

Gurkin’s clients are seeing an average expenditure of

$5,900 per apartment.

Federally Assisted Housing Wastes Energy, Money, report Says

The Department of housing and Urban Development

(hUD) should be able to save $1 billion per year off the energy

bills for apartments it owns, according to a new report, “Up

the chimney: how hUD’s inaction costs Taxpayers Millions

and Drives Up Utility Bills for low-income Families.”

“in the long run, hUD should be able to reduce its energy

bill by 20%—representing $1 billion in savings that could be

redirected to high-priority investments in the affordable hous-

ing stock,” said the report by charlie harak, Senior attorney

for the Energy project at the National consumer law center

▲ New HVAC units for individual apartments and units yet to

be replaced at CopperTree Apartments

▲ Charlie Harak

ph

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Page 50: SC Magazine, Vol. 1, No. 2

SuStainable CommunitieS • March/april 201148

(Nclc), where he focuses on is-

sues of concern to low-income

energy consumers.

The report states that hUD

provides housing assistance for

more than 3 million american

families, 1.3 million living in hous-

ing directly owned by public

housing authorities (“phas”) and

2 million living in privately owned

housing where the owner or ten-

ant receives rental assistance

from hUD.

Many of the buildings are

poorly insulated and stocked with

antiquated appliances that are in

need of replacement and upgrad-

ing, says the report.

hUD’s annual energy bill for

its housing programs easily ex-

ceeds $5 billion. Yet in its most

recent report on the topic to congress, it reported shaving off

only $33 million of that multi-billion dollar bill, 2/3 of 1%.

“clearly, hUD can do better for the taxpayers, for the low-

income families it houses, and for our warming planet,” the

report states. it summarizes the impacts of hUD’s failures to

improve the projects as follows:

“Whether the housing authority pays some or all of the

energy bills, taxpayers lose because money that could be more

productively spent on needed capital repairs is being wasted

on inefficient consumption of energy. Where the tenants pay

the energy bills, they run the risk of having their utilities being

terminated for non-payment and living without heat, air- con-

ditioning or electricity—and even being evicted—because the

energy bills are unaffordable. and regardless of who pays the

bills, we all lose because our dependence on fossil fuels which

contribute to greenhouse gas emissions and other environmen-

tal and public health problems is exacerbated.”

The report does give hUD

credit for making “some good

initial steps” with funding made

available under the american

recovery and reinvestment act

(“arra”), but it adds, the fund-

ing is time-limited.

This paper explores the many

ways in which hUD can do bet-

ter, most of them “free” in the

sense that they require no addi-

tional appropriations to hUD by

congress—although leadership

from hUD as well as technical

assistance to subsidized housing

owners will surely be required.

Seven “free” ways to reduce

hUD’s energy bill are delineated,

including:

1. Tapping more effectively into

the estimated $4.5 billion utility companies and energy

efficiency program administrators spend each year on en-

ergy efficiency so that a proportionate share of the fund-

ing reaches low-income, multifamily housing;

2. providing ongoing support to subsidized housing owners

that will allow them to coordinate better with the existing

low- income Weatherization assistance pro-gram (“Wap”)

which pays for insulation and other energy-efficiency re-

lated investments in low-income housing;

3. Better coordination between Wap and hUD’s community

Development Block Grant (“cDBG”) program so that ener-

gy efficiency investments can be more easily piggybacked

on work already being done on the home through cDBG;

4. providing assistance to smaller housing authorities so they

can utilize “energy performance contracts” that are now

almost exclusively used by large, well-staffed housing au-

thorities to improve their energy efficiency;

5. Facilitating greater use of energy efficient “utility allow-

ances,” thereby providing better incentives for housing

authorities and private, subsidized owners to invest in

energy efficiency;

6. collecting much better data on energy usage in hUD-

subsidized housing; and

7. Setting and attaining energy savings targets for hUD’s

housing stock.

The paper also recommends that hUD set up an Office

of Energy Efficiency to help 3,300 housing authorities and

many thousands more of subsidized owners achieve the

maximum energy efficiency savings that are feasible and

provide tenant education on energy conservation. ❧

Alaska

California

District of Columbia

Illinois

Kansas

Nevada

New Jersey

New york

Ohio

Oregon

Texas

Virginia

Washington

Wisconsin

WHERE YOUR STATE STANDS

According to DOE, states where more than 20% of

the weatherized units are in multifamily properties

(or will be soon) include the following:

>>

Page 51: SC Magazine, Vol. 1, No. 2

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