Sustainable Communities magazine Spring 2012 by Partnership for Sustainable Communitites

Sustainable Communities

Vol 2, No 2 • Spring 2012 • www.p4sc.org • $12

LA’s New Paradigm: The End of Sprawl?

IN THIS ISSUE

LA’s New Paradigm: The End of Sprawl?................................. p. 12 Glenn Becerra, Sustainability Leader....................................... p. 16 Seattle leads on green buildings............................................. p. 18 Christie bucks GOP in NJ.......................................................... p. 26

Commited to quality housing Committed to improving communities

Sustainable S Communities C

Letter from the editor

Vol 2, No 2 • Spring 2012 • www.p4sc.org

Making our investment count

Sustainable Communities Magazine 6i-2

By Andre Shashaty

hen you add up all the money and effort being spent on the new wave of regional planning across the country, it probably has a total cost north of $1 billion. So it’s the perfect time to put forth a simple list of “do’s” and “don’ts” to help make sure that our communities receive a decent return on that investment. As regular readers of this column know, I support the goals of the Sustainable Communities Planning Grants handed out by the Department of Housing and Urban Development (HUD) and I think Congress should continue to fund the program. I also strongly support efforts in California and other states to encourage localities to adopt land use and transportation plans that recognize the need to reduce sprawl, low-occupancy car trips and carbon emissions. But I know that planning is hard to do effectively, especially when it involves inter-governmental cooperation and coordination. There has always been opposition to land use planning, and it only seems to be getting stronger. Today’s planners face a convergence of opposing forces: • Opposition to the idea of climate change and the limits it implies are needed on where and how we live. • Resistance to even the suggestion that we make fewer low-occupancy car trips • Strong lobbying by the fossil fuels industry • Negative views of public transit, and • Fear of higher density development and mixed income housing. In California, opposition to state-mandated regional sustainable communities strategies has come from two fronts: Tea party activists who hate ‘big’ government of all kinds and ostensibly ‘liberal’ property owners in affluent communities that oppose increases in density, and strongly dislike multifamily housing. Both groups hate the notion of increasing use of public transportation, a key tenet of the current planning process. Back in northeastern Ohio, where I grew up, officials engaged in a HUD-funded regional planning effort face a different problem: Almost no one believes that this latest stab at regional strategizing will yield any concrete results. Throughout the region’s 30-plus years of economic decline, they have seen false start after false start on long-term, regional economic cooperation. This time, there’s a greater focus on sustainability, but that means nothing to the average voter. They want to know there’s a reasonable chance of it producing concrete benefits in a reasonable time frame, and the only metric that matters is jobs. Planners can’t change that context, but they can avoid some of the most common mistakes I have seen in recent planning efforts by following this simple list of Do’s and Don’ts: n Do invest in the groundwork of explaining the benefits of planning for regular citizens. n Do show that regional planning respects local autonomy and self-governance n Do reassure people that encouraging density and transit does not mean they will have to give up their cars or their lawns. n Don’t lose sight of the trees for the forest (or, don’t ignore short-term results) n Don’t ask for public input that you don’t really want. n Don’t mention the United Nations or any of its pronouncements on climate change or sustainability. That’s just for starters. For more details, go to www.p4sc.org

Editor and Publisher Andre Shashaty Office & Member Services Director Carol Yee Art Director Kay Marshall Advertising & Conference Sales Manager Wendy Chaney Associate Editor Christopher Roche Board of Directors Rev. Betty Pagett, Community Acceptance Strategist Patrick Sheridan, Senior Vice President for Housing Development, Volunteers of America Leadership Advisory Board Richard Baron, Chairman and CEO, McCormack Baron Salazar Doug Bibby, President, National Multi Housing Council Christine Carr Manager, Community Development Finance Silicone Valley Bank Henry Cisneros, Executive Chairman, CityView; former secretary, U.S. Dept of Housing and Urban Development F. Barton Harvey, Former chairman and CEO, Enterprise Community Partners William C. Kelly, Jr., President, Stewards of Affordable Housing for the Future (SAHF) Kerry Mazzoni, Public policy consultant, former state legislator and former California Secretary of Education Nicolas P. Retsinas, Director, Joint Center for Housing Studies, Harvard University Caleb Roope, President/CEO, The Pacific Companies Mitchell Silver, PP, AICP Director Department 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 California. It is not affiliated with the United States federal interagency “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.

914 Mission Ave, Suite 4A, San Rafael, CA 94901 415 453 2100 ext 302 www.P4SC.org

NeW direCtioNS

U.S. cities lag behind in climate adaptation

ies have to do with increases in storm water runoff and how to manage it. Of the respondents, 65% said they were concerned about higher storm runoff.

Methodology: A survey was sent to communities that are members of ICLEI-Local Governments for Sustainability. A total of 468 cities (44%) completed the 40-question survey, with the majority of respondents being from the U.S since this is where ICLEI has the largest membership. The survey asked respondents

SuStainable CommunitieS â&#x20AC;˘ SPRING 2012

about changes in natural hazards, temperature, precipitation, and sea level rise they have noted or experienced in the past five years, relative to historical trends. A total of 372 survey respondents, or 79%, report some changes in these categories. The most common observation, reported by 81% of the cities, is an increase in natural hazards. Within this category, 41% report an increased intensity in storms, followed by 31% noting longer periods of drought. Flooding also is a major concern, with 13% of the cities reporting coastal flooding and 30% reporting inland flooding. â?§

City leaders gather to discuss adaptation to climate change Municipal leaders from across the world gathered in Bonn, Germany, recently to attend the Third Global Forum on Urban Resilience and Adaptation. Sponsored by ICLEI, the event covered a wide range of topics related to preparing for and adapting to climate change. In 2010, ICLEI introduced a process for climate adaptation planning, similar to its process for climate change mitigation (ICLEI 2011). The five milestones of ICLEIâ&#x20AC;&#x2122;s climate adaptation planning process, listed below, illustrate the broad scope and comprehensive nature of city climate adaptation plans. They are as follows: 1. Conduct a climate resiliency study 2. Set preparedness goals

4. Publish and implement the climate preparedness plan

3. Develop a climate preparedness plan

5. Monitor and reevaluate resiliency

PHOTO: WIKIMEDIA COMMONS

ities in the United States lag behind those in the rest of the world in planning how they will adapt to climate change, according to a new report from the Massachusetts Institute of Technology (MIT). The university summarized the results of a global survey of cities in the report titled Progress and Challenges in Urban Climate Adaptation Planning. The survey was conducted in collaboration with ICLEI-Local Governments for Sustainability. The report provides insight into how cities around the world are preparing for the impact of climate change. Results of the survey of 468 cities that are members of ICLEI showed that nearly half of survey respondents report impacts they attribute to changes in temperature, precipitation, sea level, or natural hazards that they attribute to climate change. Approximately 27% of cities in the U.S. are conducting climate risk and vulnerability assessments (or have completed one) and 59% are engaged in climate adaptation planning. Despite these high rates overall, the U.S. has the lowest percentage of cities engaged in assessments and planning relative to other regions, according to the report. Those cities that report that they are taking action are largely in the early preparation stages. Overall, few cities have engaged the federal government, although many are coordinating with other cities. Sixty-eight percent of cities worldwide report that they are pursuing adaptation planning, with Latin American and Canadian cities having the highest rates of engagement (95% and 92% respectively) and the U.S. having the lowest (59%), the report said. The impacts that most concern cit-

Specialists in Affordable Housing Lending At Silicon Valley Bank we pride ourselves on providing financial solutions to not only the businesses in the communities we serve but to the people of our communities too. Silicon Valley Bank’s Community Development Finance Practice is committed to serving the needs of our communities’ housing and community development organizations. We provide a consistent and dependable source of financing for projects.

Christine Carr, Manager, Community Development Finance 555 Mission Street, Suite 900, San Francisco, California 94105 Phone 415. 764.3124 Email ccarr@svb.com

svb.com

©2012 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of FDIC and Federal Reserve System. SVB>, SVB>Find a way, SVB Financial Group, and Silicon Valley Bank are registered trademarks. B-12-12026. Rev. 02-24-12.

A r o U N d t h e N At i o N

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Cincinnati

Studying Form baSed development Code In an attempt to revitalize its downtown, Cincinnati is studying the implications of adopting a form-based development code that will offer developers and businesses alike much more flexibility as the City attempts to redefine itself. Form-based codes are exactly that, a set of parameters and guidelines that allow neighborhoods to create their own form and design style based on PHOTO: WIKIMEDIA COMMONS

look rather than land use. Typical zoning codes that are present in nearly every municipality across the U.S. outline a detailed set of criteria that

SuStainable CommunitieS • SPRING 2012

defines the use restrictions for certain areas. This type of planning has created great places, but form-based code is by far the more aggressive approach to reshaping neighborhoods as it aligns incentives and mitigates risk by focusing on compatible design rather than land use. Cincinnati’s proposed code, which they hope to have approved by the end of 2012, will have three aims: enhancing walkability, strengthening economy and reinforcing character. Aside from those broad aims, the specifics of the code are incredibly lenient and to be determined primarily by the stakeholders in each neighborhood. City officials and other prominent community members have recently taken trips to Nashville, TN to observe what the adoption of a similar formbased code has done for their City. In meeting with City staff and members of the public, the feedback has been extremely positive and the results speak for themselves. With such broad aims and a great urban foundation to build upon, if this code is passed later this year keep an eye on Cincinnati. For more information visit www. cincinnati-oh.gov.

dallas

City puSheS tranSit oriented development City Hall is committed to making transit oriented development around their DART system a reality. While the intended investment near the City’s main southerly serving transit service has not occurred as planned, City officials are not willing to count it out just yet and they are reaching out to the public for a little help. By engaging the public and listening to what they would like to see in terms of improving their transit hubs, the City is taking initiative in making development in these areas more attractive. On top of their proactive community engagement, the City will using a Department of Housing and Urban Development Community Challenge Grant to lure new residential and commercial development. The goal of this program, commonly known as DallasTOD, is to create safe, attractive and thriving community centers that offer a range of affordable housing options for current and future residents and improved access to transit. “Dallas TOD is an integral part of my GrowSouth comprehensive strategy to build a foundation for sustainable growth in Southern Dallas” said Mayor Mike Rawlings, “I believe that it will help jumpstart growth in these key areas within the next three years.” For more information on DallasTOD and to learn how you can get involved, visit www.dallastod.com.

new Jersey

Creating SuStainable CommunitieS one proJeCt at a time Sustainable Jersey, a certification program for municipalities that want to go green, has partnered with the PSEG Foundation, the charitable arm of the New Jersey utility, to provide grant

massachusetts

aFFordable houSing inveStment StrengthenS Community The state has awarded $105 million in affordable housing resources and tax credits to support the construction of 2,196 affordable units across the state. The investment was made up of more than $23 million in federal lowincome housing tax credits; $20 million in state low-income housing tax credits;

and $61 million in state and federal housing program subsidies. In a recent press release, Gov. Deval Patrick stated that, “Creating affordable housing helps to generate jobs, grow local businesses and strengthen our communities. Government’s role is to help people help themselves, and investing in affordable housing will build a better Commonwealth for generations to come.” By fighting for this funding and invigorating the local economies with the creation of construction jobs and the positive economic externalities associated with an increased affordable housing supply, the Massachusetts administration is setting a great example for the rest of the country. To see a complete list of the projects that were awarded funding, visit www. mass.gov.

new york City

Citi bike Share program to launCh thiS Summer Finding a way to interject a bike sharing program as a partial solution to big city transit woes has been all the rage over the last several years. Citi Bike, the looming NYC Bike Share program, is scheduled to roll out this summer with a phased expansion that will eventually build a network of 10,000 bikes located at 600 docking stations throughout the city. This audacious system was privately financed by a $41 million, 5-year investment from Citi and a $6.5 million sponsorship from MasterCard, according to Transportation Nation. Initially the plan was to roll out the program in one massive installation, seeing as users will benefit the most when the entire network is developed, but as roadblocks occurred the new plan split the system into 5 phases. The initial phase will include everything south of Central Park in Manhattan and will eventually reach into the Upper East & West Sides as well

PHOTO: ©THE CITY OF NEW YORK

money for local projects that would otherwise go unfunded. The goal is to make New Jersey towns, “more livable, environmentally friendly and prosperous.” Being the first state in the nation to have a comprehensive sustainability program, New Jersey’s progressive stance on these issues is the driving force behind this meaningful local investment vehicle. Throughout 2012, the Sustainable Jersey Small Grant Program will award 4 - $20,000 grants, 8 - $10,000 grants, and 20 - $2,000 grants which are intended to support New Jersey municipalities participating in their certification program to institute greening and sustainability initiatives within their communities and better the quality of life for their residents. This money will go towards projects such as electric vehicle charging stations, school food composting centers and community gardens. According to their website, these sustainability projects will serve as practical models for the rest of State while making measurable contributions toward the long-term goal of a sustainable New Jersey. Since its inception in 2009, the grant program has awarded $595,000 towards the completion of such projects. Grant applications for the current cycle are due July 15, 2012. For more information regarding future grant cycles and how to get involved, visit www.sustainablejersey.com.

as much of Brooklyn. Perhaps the most amazing feat that NYC has pulled off is that this transportation system was cost-free to the City’s residents. “We’re getting an entirely new transportation network without spending any taxpayer money,” Michael Bloomberg, the Mayor of NYC said at a recent press conference. “Who thought that could be done?” The program will be maintained by Alta, an international bike share company based in Portland. The bikes themselves will be docked throughout the City and riders can rent the bikes on a one-time or monthly-subscription basis. This system will revolutionize the way New Yorkers get around and will hopefully set a positive precedent for other large cities to adopt similar programs. To learn more about the Citi Bike program, visit Citi Bike program.

boulder

taking energy poliCy to the people Similar to many other municipalities across the country, Boulder has been working on a forward-looking energy policy. Unlike many of those same municipalities, Boulder is taking an aggressive approach to reduce its dependence on non-sustainable energy sources. Late last year the City’s 97,000 residents rallied to vote against Xcel Energy, their local utility provider, and “condemn” their electrical business within the City limits. In an attempt to advance their 70% renewable energy —continued on pAge 32

SPRING 2012 • SuStainable CommunitieS

CommUNity pLANNiNg

Green infrastructure for sustainable cities By Gary Moll

ost cities have a valuable green resource that is visible when you drive down the street, but invisible when public policy decisions are made. Now more communities are assessing their “green infrastructure” and taking a hard look at its tangible values. Trees, shrubs, and green spaces form a natural system almost everyone likes intuitively, but when it comes to the growth and development tradeoff, decision makers have a lot of engineering quality data describing the gray infrastructure and very little data of any kind about the green infrastructure. Given these facts, it is not surprising that cities have been slowly losing valuable green infrastructure for decades and that changing this dynamic is fundamental in planning sustainable cities. We all know that a city with a lot of trees is a better place to live than one without because trees do good things like clean and cool the air and water, but how does that abstract notion stack up against the value of a convenient new strip mall? The answer is that for most cities, it doesn’t carry much weight when land use decisions are made. I believe that cities must consider the facts about the value of the green vs. the value of the gray infrastructure. One of the biggest steps a community can take in the direction of sustainability is to officially acknowledge the potential of their green infrastructure by spatially mapping their tree canopy so that the gray and green infrastructure can interact as one in the cities Geographic Information System. Trees and concrete are the yin and yang of city infrastructure, they interact in a way that results in very tangible benefits for the city, and this synergistic interaction is central to the concept of sustainability. An accurate and inexpensive digital

model the green resources in an urban area can be produced from aerial photography. The process starts with National Agricultural Imagery Program (NAIP). This is high-resolution imagery, with national coverage that is available free of charge. The image can be converted into land cover data by the Global Ecosystem Center (GEC) that is ready for use in a city’s GIS system. The cost to do this has fallen dramatically in the past few years.

SuStainable CommunitieS • SPRING 2012

The process can generate savings that will easily pay for the costs. For example, an average city will identify opportunities to save about $60,000 per square mile in storm water management alone through this process. To learn more about this sustainability opportunity, go to www.systemecology.org. Gary Moll is President & System Ecologist at the Global Ecosystem Center in Washington, DC. ❧

Who’S doing What With hud planning money Over the last two years, HUD has awarded 152 sustainable communities planning grants, totaling $240 million that have in turn secured almost $253 million in private investment and commitments from local partners. Here is a list of the winners of 2011 Sustainable Communities Planning Grants. East Arkansas Planning and Development District Metroplan Metropolitan Transportation Commission Denver Regional Council of Governments East Central Florida Regional Planning Council Fremont County Idaho Flint Hills Regional Council, Inc. Regional Economic Area Partnership Baltimore Metropolitan Council Tri-County Regional Planning Commission Northwest Michigan Council of Governments Opportunity Link, Inc. Cape Fear Council of Governments Centralina Council of Governments Omaha-Council Bluffs Metropolitan Area Planning Agency (MAPA) Nashua Regional Planning Commission Rutgers, The State University of New Jersey Doña Ana County City of Henderson on behalf of the SNRPC Adirondack Gateway Council Inc Niagara Frontier Transportation Authority Rural Economic Area Partnership Investment Fund County of Erie Pennsylvania Lehigh Valley Economic Development Corporation State of Rhode Island Shelby County Government Heart of Texas Council of Governments Northwest Regional Planning Commission Two Rivers-Ottauquechee Regional Commission

AR AR CA CO FL ID KS KS MD MI MI MT NC NC/SC NE/IA NH NJ NM NV NY NY ND PA PA RI TN/MS/AR TX VT VT

$2,600,000 $1,400,000 $4,991,336 $4,500,000 $2,400,000 $1,500,000 $1,980,000 $1,500,000 $3,503,677 $3,000,000 $660,000 $1,500,000 $1,130,000 $4,907,544 $2,045,000 $3,369,648 $5,000,000 $2,000,000 $3,488,000 $750,000 $2,000,000 $1,500,000 $1,800,000 $3,400,000 $1,934,961 $2,619,999 $660,000 $480,000 $540,000

AffordABLe hoUSiNg

Developers get new debt financing help for affordable housing tax credit projects

evelopers of affordable apartments using the federal housing tax credit have begged the Federal Housing Administration to offer reasonably timely and not-overlyonerous underwriting for guaranteed loans on their projects. Now the FHA is testing a program that would provide more insured 35-year fixed-rate financing for more projects. FHA’s new Multifamily Low Income Housing Tax Credit Pilot Program will

allow borrowers to benefit from accelerated processing and low interest rates. The rate was below 4% for 3035 year fixed rate money in May. The Pilot will be conducted initially in the Boston, Chicago, Detroit and Los Angeles FHA Hubs. These offices will process loan applications for all of their associated program centers. The first phase of the Pilot will apply to the following three types of financing transactions:

houSing taX Credit pilot program : SeleCted lenderS AGM Financial Services, Inc. Berkadia Commercial Mortgage, LLC CBRE HMF, Inc. CWCapital, LLC Developers Mortgage Corporation Draper and Kramer Commercial Mortgage Company Enterprise Community Investment, Inc. Forest City Capital Corporation Gershman Mortgage Lancaster Pollard Mortgage Company Love Funding Oak Grove Capital Oppenheimer Multifamily Housing & Healthcare Finance Corporation P/R Mortgage & Investment Corporation PNC Real Estate Prudential Huntoon Paige Associates, LLC Red Mortgage Capital, LLC Rockport Mortgage Corporation StJames Capital, LLC Wells Fargo Multifamily Capital

SuStainable CommunitieS • SPRING 2012

• Permanent financing for recently constructed or substantially rehabilitated projects processed under a waiver of the 3-year rule • Acquisition and/or refinance and moderate rehabilitation of properties with at least 90% of the units supported by project based rental assistance • Permanent financing and moderate rehabilitation of stabilized tax credit projects that are being resyndicated

Potential benefits of this program include: • Targeted processing timeframes of 60-90 days with closings in 90120 days (previously times could stretch to 12 months or longer) • Moderate rehabilitation of up to $40,000/unit in hard costs, an increase from $15,000 per unit. • The legal requirement to pay prevailing area wages for projects (Davis Bacon) does not apply, which is a divergence from the FHA Sec. 221(d)(4) program. The Pilot program will modify elements of the existing FHA 223(f) program for use specifically with affordable projects, whose substantial rehab costs previously had triggered the requirement that loans be processed pursuant to lengthier and more cumbersome FHA 221(d)(4) program guidelines, according to the Affordable Housing Group or Red Mortgage Capital, LLC. The firm is one of the participating lenders. Since many affordable projects must

be completed within limited timeframes, the FHA 221(d)(4) simply was not compatible as a viable option for a number of projects, said Tracy W. Peters, Senior Managing Director of the group. Red is one of the country’s most active FHA lenders, having extensive market rate and affordable housing experience. The firm has underwritten and closed approximately 539 FHA insured loans ($3.4 billion) since April 2002 and currently is the nation’s leading FHA MAP lender by closings ($640 million) based on HUD’s Fiscal Mid-Year data reports. “The HUD 223(f) program currently provides access to some of the best and most efficient financing

terms available, including long term, fixed rate loans at below 4.0%. This pilot expands this attractive financing to moderate rehabilitation tax credit properties; a segment that can benefit

significantly from this program,” said Nick Gesue, chief credit officer and senior vice president with Lancaster Pollard, one of the lenders selected to participate in the program. ❧

new Jersey makes bold moves on siting projects The state of New Jersey is taking on the very important but very controversial issue of how sites for affordable housing are selected with some bold new policy proposals. The state is looking to increase the construction of affordable units in high achieving school districts and limit further development in areas already containing large amounts of federal and state financed low and moderate income housing. That means putting more projects in the suburbs, an idea that is certain to meet with strong opposition from local property owners. —continued on pAge 32

In the Lead with LEEDs Investing in homes that benefit families and the environment

Photo by Sally Painter

SPRING 2012 • SuStainable CommunitieS

Leaders in Sustainability The Partnership for Sustainable Communities welcomes the following new organizational members, and applauds them for making American communities more environmentally, socially and economically sustainable.

With offices throughout California and in Washington D.C., the law firm of Best Best & Krieger is a leader in sustainability related legal services. Founded 120 years ago, we know California, federal and state laws and the regulators and stakeholders who implement and influence them. Our multi-disciplinary “Green Team” attorneys have in-depth expertise in green building law, and land use planning, water law, environmental laws including NEPA and CEQA, government relations and contracts for renewable energy and other sustainable projects. BB&K embraces the pressing need to enhance community sustainability by assisting public and private sector clients in creating and complying with regulatory standards and incentives.

BRIDGE Housing Corporation, the leading nonprofit developer of affordable housing in California, creates and manages a range of high-quality, affordable homes for working families and seniors. Since it was founded in 1983, BRIDGE has participated in the development of over 14,000 homes serving more than 37,000 Californians. For more information, visit www. bridgehousing.com.

Burbank Housing is a local non-profit organization dedicated to increasing the supply of housing in Sonoma County, so that low-income people of all ages, backgrounds and special needs will have a better opportunity to live in decent and affordable housing.

City Real Estate Advisors, Inc., (“CREA”) is a full service LIHTC Syndicator with tax credit equity financing in excess of $1 billion for 180+ transactions since inception. Formed in 2001, by Jeffrey A. Whiting, CREA is committed to the clients we serve; developers, borrowers and investors alike. CREA was founded on the Real Estate First philosophy that behind every exceptional real estate investment is fundamentally sound real estate. Our team pledges to provide innovative real estate investment solutions by applying our five corporate tenets of Trust, Respect, Integrity, Attitude and Commitment to every facet of our business. We have expanded nationally, headquartered in Indianapolis, IN with offices in Boston, MA, Austin, TX and Portland, OR.

Dominion Due Diligence Group (D3G), is headquartered in Richmond, Virginia. D3G, established in 1994 by

Robert E. Hazelton, provides full-service environmental and engineering real estate due diligence nationwide. D3G’s third party reporting is used for HUD-FHA, Fannie Mae, Freddie Mac, conventional lending and property transactions. D3G’s services focus on affordable housing, elderly care facilities and historical rehabilitations. D3G is currently the largest due-diligence consulting firm in the nation specializing in HUD-insured commercial loans for multifamily and elderly care housing. Our services include: Capital Needs Assessments, Environmental Site Assessments, Energy Audits, as well as Architectural Review and Cost Estimations.

Forest City Enterprises, Inc. is an owner, developer and manager of a diverse portfolio of premier real estate property located throughout the United States. Forest City operates under three strategic business units: • The Commercial Group is Forest City’s largest business unit - with 96 retail, office, arena, hotel and mixed-use properties. • The Residential Group owns and/or manages rental units in urban and suburban apartment communities, adaptive re-use, supported living properties and military housing. • The Land Development Group works with major corporations and individual landowners in developing master-planned communities and land for residential, commercial and industrial use.

The Partnership for Sustainable Communities is a nonprofit educational and advocacy organization. We depend on members to advance our mission. For more information, go to www.p4sc.org, or call 415-453-2100 x 303

Organizations that support and work for healthy, successful communities

Gateway Planning provides town design, implementation and economic development services to both publicand private-sector clients. We work with communities, local governments, state agencies, universities and developers to facilitate growth in mixed-use, pedestrian-friendly patterns. We focus on mixing of housing types, neighborhood retail, pocket parks, community schools, great civic spaces and transportation choice, integrated by streets designed for both cars and people. Through master plans for downtowns, urban cores, neighborhoods, universities and fast-growing suburban growth corridors, we bring plans to life with form-based urban codes that both elevate quality of life and harness the market’s ability to deliver profitable, sustainable neighborhoods.

Gubb & Barshay LLP, established by Natalie Gubb and Scott Barshay in 1993, is widely-known as one of the top law firms specializing in the field of affordable housing. Based in San Francisco, California, the firm is recognized nationally for its expertise in the low income housing tax credit program and in other affordable housing finance programs.

The Lincoln Institute of Land Policy is a leading resource for key issues concerning the use, regulation, and taxation of land. Providing highquality education and research, the Institute strives to improve public dialogue and decisions about land policy. As a private operating foundation whose origins date to 1946, the Institute seeks to inform decision making through education, research, policy evaluation, demonstration projects,and the dissemination of information, policy analysis, and data through our publications, Web site,

and other media. By bringing together scholars,practitioners, public officials, policy makers, journalists, and involved citizens, the Lincoln Institute integrates theory and practice and provides a non partisan forum for multidisciplinary perspectives on public policy concerning land, both in the U.S.and internationally.

McCormack Baron Salazar is the nation’s leading for-profit developer of economically integrated urban neighborhoods. The company’s communities are known for offering quality, affordable housing and fostering economic opportunities for residents and neighborhoods. Since 1973, McCormack Baron Salazar has been a pioneer in community development and urban revitalization, with over $2.5 billion invested in 149 projects in 36 cities and more than 16,000 units of attractive, high quality housing in urban areas.

The Non-Profit Housing Association of Northern California (NPH) is the collective voice of those who support, build and finance affordable housing. NPH promotes the proven methods of the non-profit sector and focuses government policy on housing solutions for lower income people who suffer disproportionately from the housing crisis. Founded in 1979, the mission of NPH is to advance affordable housing as the foundation for thriving individuals, families and neighborhoods. Through NPH, the affordable housing field amplifies its voice to promote innovative housing solutions at the local, state, and federal level.

A healthy community begins at home. REACH’s mission is to provide quality, affordable housing for individuals, families and communities to thrive.

Since 1982, REACH has pioneered affordable housing and supportive programs that address complex challenges facing communities. REACH has gained local, state and national acclaim for innovation and responsiveness to difficult urban issues. Our portfolio of over 1,400 units includes new and renovated plexes, apartment buildings and mixed-use developments are across the Portland metropolitan area. REACH also offers a comprehensive Resident Services Program, as well as the Community Builders Program, a free home repair service available to senior and disabled homeowners, as well as families suffering from home environmental health hazards. More info at http://reachcdc.org

SARES•REGIS Group of Irvine, Calif., is one of the leading developers and managers of commercial and residential real estate in the western United States. SARES•REGIS Group has a combined portfolio of property and fee-based assets under management valued at more than $4 billion, including 15 million square feet of commercial and industrial space and more than 13,000 rental apartments. Since its inception, the company has acquired or developed approximately 44 million square feet of commercial properties and 20,000 multifamily and residential housing units.

Since 1896, Volunteers of America has believed that a safe and affordable home is the foundation for selfsufficiency. Our nationwide portfolio includes large urban complexes and small rural developments, ranging from emergency shelter and transitional housing to permanent housing for seniors, families and special needs individuals, many who are among our most vulnerable citizens. Visit www.VolunteersofAmerica.org to learn more about our housing initiatives and expertise.

New Paradigm Hits The Land of Sprawl

pponents of sustainable planning and reduced dependence on private car trips must hate what’s happening in Southern California. With a surprising degree of unanimity, the six counties, 191 cities, and 18 million residents in the region that invented jammed freeways are charting a new course for growth intended to end 60 years of sprawl. The regional representatives on the Southern California Associations of Governments (SCAG) unanimously adopted the region’s first Sustainable Communities Strategy, which is intended to bring land use planning into line with the latest plan for spending local, state, and federal transportation funding. The 2012 – 2035 Regional Transportation Plan and Sustainable Communities Strategy (RTP/SCS), which is pending final approval by the California Air Resources Board and the federal government, will lead to a 9 percent percapita reduction in greenhouse gas emissions by 2020 and a 16 percent reduction by 2035, while also accommodating an anticipated 4 million additional Southern California residents during that period. The amazing part of the story is how SCAG arrived at a plan that apparently is palatable to the region’s hugely diverse political interests and politicians as well as its business and environmental leaders. At press time, none of the many interest groups in the region had filed a lawsuit to challenge the plan.

Billions to be invested The plan identifies $525 billion in investments over the next 23 years, including a connected network of express high-occupancy toll lanes, closures of critical gaps in the region’s highway network, system wide Metrolink improvements (including extensions in Riverside County), and various strategies to improve and facilitate goods movement. In addition, the plan calls for expansion of “active transportation,” including a regional bike route network and more walking paths. The plan reflects the fact that Southern California citizens, businesses and governments know their economic well being depends on overcoming sprawl and congestion, said Hasan Ikhrata, executive director of the Southern California Association of Governments. SCAG President Glen Becerra said the region was

Southern California adopts sustainable communities plan; leaders ask state, feds to resolve transportation funding

SPRING 2012 â&#x20AC;˘ SuStainable CommunitieS

PHOTO: LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY

▲ Los Angeles Metro light rail station

ready for the kind of planning reflected in the SCS. This country was built on the mindset that we should be able to drive anywhere at any time we want, and Southern Californians have been making longer and longer commutes for years. But residents of the region have had enough of congestion, and hope the ongoing expansion of subways, light rail and bus service envisioned in the plan will help alleviate it. “Traffic congestion has followed hasan ikhrata, SCag us out into the suburbs. The SCS is executive director about protecting quality of life as we plan for the future. The plan is about easing congestion,” he said. The plan reflects changing demographics and market demand for higher-density housing, shorter commute times and more transit options, he added. “Market forces in Southern California have a lot to do with why this plan has been accepted by conservative board members,” said Ikhrata. “In the last ten years, the kind of housing the region is providing was 70% multi-family and 30% single family. Previously, it was the opposite,” he said. Critics like to accuse planners who promote density and transit as declaring “war on suburbia.” Ikhrata responds by citing the increasing popularity of urban living, especially for the young and elderly.

land uSe StrategieS required by State laW The Sustainable Communities Strategy just adopted for Southern California is one of many such regional plans being written by planning organizations throughout California. The plans are required under Senate Bill 375, which passed in October 2008. It is intended to help reduce greenhouse gas emissions by requiring that regions plan for more compact growth and reduction of car and truck trips. It requires that regional planning agencies assign housing production targets that are consistent with regional sustainability and transportation plans. It requires that those sustainability and transportation plans set specific targets for reducing greenhouse gas emissions. All 18 California regions must prepare a Sustainable Communities Strategy through their Metropolitan Planning Organizations. Each region must show how it will reach emissions reductions targets by putting housing, stores, jobs, and transit closer together. The first regional planning organization to produce

SuStainable CommunitieS • SPRING 2012

a Sustainable Communities Strategy was the The San Diego Association of Governments. That plan has been challenged in court by the Sierra Club and other environmental groups who say it puts too much emphasis on highways and not enough on public transportation. Links: http://www.sandag.org/ http://www.p4sc.org/san-diego-adopts-sustainable-communities-strategy In the San Francisco area, the Bay Area Association of Governments has also run into serious headwinds with its planning process. Most of the opposition comes from opponents of high-density development and skeptics about the feasibility of increasing public transit use. Links: Bay Area Association of Governments

PHOTO: LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY

Total Jobs (Millions)

“Those who write that this is war on suburbia have not been to Southern California in the last ten years,” he said. “Downtown Los Angeles has 75,000 residents. That did not exist ten years ago. In Pasadena, he said. 17% of households have no car, thanks largely to high-density residential development around the light rail station. Changing demographics explain the change in market demand, he added. A growing number of senior citizens don’t want to maintain houses and yards. Young people increasingly reject suburban lifestyles, he added. The RTP/SCS will incentivize builders and local governments to move quickly in the direction the market is pointing, Ikhrata said. It encourages them to expedite what’s happening and make sure it’s done well, he said. The plan is the guiding document for the allocation of billions of dollars in transportation funds. SCAG and the region’s transportation commissions will now direct the flow of   transportation funding to projects that consistent with Increasing share of jobs will beare within high quality the plan.transit areas. SCAG is emphasizing the economic benefits of the plan. 8 Ikhrata said the planned investment in transportation “will yield a huge economic return.” It will facilitate creation of an 6 average of 174,500 jobs across the region, he said. annual The land use portion of the plan sets the goal that over half of new homes and jobs should be within walking dis4 tance of transit. In 2008, 40% of all housing was near high 62%be near quality transit. By 2035, 51% of all housing units will 2 transit. 49% In 2008, 49% of all jobs were near high quality transit. By 2035, 62% of all jobs will be near transit 0 By 2020, 48% of2008 all new housing units will be 2035 multifamily (townhomes, condos and apartments). In 2035, that percentage will increase to 68%. The emphasis on density and proximity to transit is

 By 2035, there are fewer drive-alone trips and more trips taken by biking, walking, transit and HOV. Change in mode share relative to 2005

20% 15% 10% 5% 0% Drive Alone -5% -10%

HOV

Public Transit

Bike/Walk

3/21/2012

▲ Los Angeles Metro light rail

expected to yield a decline of 7% in the number of “drivealone” car trips taken in 2035 in the region compared to 2005. The goals is to see a 15% increase in the number of trips taken on public transit.

implementation requires funding It took more than two years for SCAG to come up with the plan. Now comes the hard part: Convincing state and national politicians to provide sufficient financing to implement the plan. Ikhrata believes the key to attracting funding is a regional approach. “The more we can show that a dollar spent in Riverside County, for instance, will have a benefit elsewhere in 29 region, the greater our chances will be to secure funding,” the he said. The region has a good start on financing transit expansion thanks to Los Angeles County voters, who approved a sales tax measure to financing public transit expansion several years ago. But even the best laid plans for transportation depend on sustained and predictable state and federal funding, which Congress does not seem inclined to provide in the politically chaotic year. Ikrhata notee that the Congressional Budget Office projects that the federal highway trust fund would be empty by the 2014 fiscal year. The fund finances road and highway projects from federal gas tax proceeds, and as people drive less and buy more fuel-efficient cars, those proceeds have diminished. The Regional Transportation Plan/Sustainable Communities Strategy proposes a range of funding options, including working with Congress and the state legislature to replace the gas tax with a vehicle30 mileage user fee by 2025. ❧

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LeAderS for SuSTAiNAbiLiTy

becerra takes charge of SoCal’s sustainability plan

len Becerra may be the perfect man to usher in a new era higher density, less car-dependent living in Southern California. A Republican from the suburban community of Simi Valley, Becerra does his share of commuting by car and enjoys living in a low-density neighborhood of single-family homes. But the incoming president of the Southern California Associations of Governments (SCAG) is also looking ahead to the future of a region that needs to accommodate population growth and changing demographics without aggravating a serious problem with traffic congestion. He takes over the leadership role of the regional planning agency just as it starts implementing its newly adopted Sustainable Communities Strategy. His task is to maintain the consensus of the disparate groups that came together to formulate the plan as local jurisdictions and agencies try to find the resources and political resolve to implement it. (He takes over the presidency from Pam O’Connor, a Santa Monica City Council member, who oversaw the final stages of drafting the plan.) He says that the Sustainable Communities Strategy shows that people of all political stripes can collaborate and find agreement on policy. “There is no place more diverse than Southern California, and for us to be able to come together and put forward a plan is remarkable,” Becerra said. How did SCAG get the plan adopted in such a diverse region? “We collaborated with all stakeholders and partners -- environmental, business, and labor groups, and local governments. We respected all stakeholders and took their input seriously. We tried to craft a plan that showed we respected their input.” Governments throughout the region have been working toward higher density and less sprawl for years, assisted by SCAG through its Compass Blueprint program, he said. “Our region has been talking about this for a long time.” The business community fully embraced this plan, including manufacturers and homebuilders, Becerra said. He praised local governments for their ability to cooperate. “We did it not through partisan alliances and ideologies and ramming all or nothing solutions down the opposition’s throats…,” he said. “We did it through compromise and found out that we have much more in common than we thought going in. We did it the way local governments have always done it – by listening to opposing

SuStainable CommunitieS • SPRING 2012

“there is no place more diverse than Southern california, and for us to be able to come together and put forward a plan is remarkable.” —Glenn Becerra SCAG incoming president

viewpoints and putting into motion things that work.” Becerra has kind words for environmentalist, business leaders and local elected officials, all of whom collaborated in getting the plan adopted. He even says nice things about the Tea Party representatives who have spoken out against planning of just about any kind -- and disrupted a few regional planning meetings up and down the state. But don’t get him started on the political leaders in California’s capital or the U.S. Congress. In his first speech as president, Becerra trashed the California state legislature in Sacramento and noted that local governments have to make up for the failures of state government. He criticized both state and national leaders for failing to give the region any clarity about transportation funding in the future. (As background, the federal government has not passed a six-year transportation reauthorization bill for years. In Sacramento, budget politics are a mess, resulting in gridlock and very short-term fixes to get from year to year.) Becerra blasted the feds for “putting more responsibility on us at local level with fewer resources.” A federal transportation bill is critical. “We at SCAG very much look forward to the day Congress can pass a transportation reauthorization bill. It’s critical that they do this. Nothing is going to happen until that happens.” Becerra is a member of the city council and has previously served as Mayor Pro Tem for the City of Simi Valley, which is located in Ventura County, 37 miles northwest of downtown Los Angeles. He had been on SCAG’s Regional Council for ten years. ❧

Sf bay Area moves forward on planning The San Francisco Bay Area has settled on a key component of its Sustainable Communities Strategy or what it has given the rather bland title of “Plan Bay Area.” The Metropolitan Transportation Commission (MTC) and the Association of Bay Area Governments (ABAG) voted to adopt the Plan Bay Area Preferred Land Use Scenario and Transportation Investment Strategy this month. Plan Bay Area will be the region’s 25-year guide to jobs, population and housing distribution, as well as transportation investments. California’s Sustainable Communities and Climate Protection Act (SB 375) requires that each of the state’s 18 Metropolitan Planning Organizations – and in the Bay Area specifically MTC and ABAG – develop a long-range plan to reduce per-capita greenhouse gas emissions from

cars and light trucks. The Bay Area is required to reduce emissions by 7 percent by 2020 and by 15 percent by 2035. SB 375 also requires the plan to house 100 percent of the region’s projected population growth, without displacing current low-income residents. “We are making great strides toward adopting a long-range plan that links local aspirations for community development with regional objectives, particularly a strong regional economy,” said ABAG President Mark Luce. In December 2012, the agencies expect to release the draft Plan Bay Area, which will be followed by public hearings and workshops throughout the region in January through March 2013. MTC and ABAG are due to adopt the final Plan Bay Area and certify the final EIR in April 2013. ❧

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green buildings Seattle pioneers new tools to encourage efficient buildings By Andre Shashaty Manager, a free and secure online tool. The law applies to buildings 10,000 square feet or greater (including multifamily buildings of five or more units). The city’s desired outcomes include lowering energy costs to owners and tenants, reducing greenhouse gas impacts, and creating job opportunities. Benchmarking is a first step towards lowering energy costs and staying competitive, Sugimura says. The ordinance has three components: benchmarking the building(s), annual reporting to the City of Seattle, and providing an energy disclosure report, upon request, to tenants, buyers or other qualified parties. Sugimura said some owners of large office buildings are very supportive of the law but that smaller owners worry it will end up costing them money. The city is taking a gradual approach and working to help educate and assist smaller owners about how to comply, she said.

RENDERING: COURTESY RUNBERG ARCHITECTURE GROUP

Seattle–Many cities are trying to encourage increased efficiency of buildings, but if you are looking for fresh and far-reaching policy ideas, come to the Emerald City. The city is attacking the problem of inefficient buildings on many fronts, Diane Sugimura told me recently. She heads the Dept. of Planning and Development and works with the city’s Office of Sustainability on green building policy and programs. The city is in the early stages of enforcing a law requiring building owners to conduct annual energy performance tracking. It is also working with the National Trust for Historic Preservation on an outcomes-based approach that is more flexible for older buildings than a prescriptive code. The Energy Benchmarking and Reporting program (Ordinance 12322) requires commercial and multifamily building owners in Seattle to conduct annual energy performance tracking through the U.S. EPA’s ENERGY STAR® Portfolio

▲ Supply Laundry building will undergo substantial rehabilitation

SuStainable CommunitieS • SPRING 2012

RENDERING: COURTESY RUNBERG ARCHITECTURE GROUP

▲ The rehab project is part of the redevelopment of the entire block

Under a recently approved deadline extension, owners have until at least October 1, 2012 to comply with the energy benchmarking and reporting program. In response to public input that more assistance and time is needed to comply, the city is evaluating the program and considering staggered reporting deadlines based on building size. Seattle has had a stringent energy code for years. The idea of benchmarking is to let the real estate market decide how to value energy efficiency. Under this law, and similar ones in New York and a few other cities, space users can get objective data on efficiency and use that to help decide where to rent space.

Measuring performance Sugimura says the next frontier of efficiency is to find a workable way to regulate buildings based on performance, not how they are built or how closely they comply with a proscriptive code. As Sugimura explained it, the best code language cannot keep up with fast-changing technology in the building sciences and energy efficiency. In addition, the goal of the code is to get better performance, so it would be more effective to look at performance rather than code compliance, especially for existing buildings.

The city is working with the National Trust for Historic Preservation on Preservation Green Lab, which is intended to pioneer policy solutions that make it easier to reuse diane Sugimura, Seattle and improve the efficiency department of planning and development director of older and historic buildings. It seeks to minimize carbon impacts from the built environment while encouraging building reuse. Through its Older Building Performance Program, the Green Lab is undertaking three pilot projects that will encourage and facilitate reuse and retrofit of older buildings – especially smaller commercial, mixed-use, and multifamily buildings that are typically overlooked by the current retrofit market, said Ric Cochrane, project manager, Preservation Green Lab. The lab is developing an Outcome-Based Energy Code framework that would provide regulatory flexibility and enables innovation in greening older buildings. “What’s mandated by proscriptive codes can really detract from the economic value of a historic building,” said Patrice Frey, director of sustainability for the trust. For

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>> 19

elements of program

example, a code will typically require that brick walls be insulated, which eliminates the economic value of this historic feature. What’s more, even after an owner has applied insulation, there’s still no certainty that it will result in the desired energy performance, she added. “The Outcomes-Based Code program is intended to help make sure that money is spent on measures that make the most sense for purposes of energy efficiency as well as maximizing the economic value of buildings,” she added.

In addition to the outcome-based code, other key components of Project Green Lab’s Older Building Performance Program are • District Energy: The lab is looking at the old urban practice of sharing heat and power generation as a way to make it easier and more affordable for older neighborhoods to move to cleaner sources of energy. • Valuing Building Reuse: New research explores the environmental value of reusing buildings rather than demolishing them to replace with new construction. • being developed in partnership with the New Buildings Institute will provide customized guidance for retrofits of smaller commercial structures to achieve energy savings of 50 percent or greater.

Laundry test case One of the buildings in the outcome-based energy code demonstration is The Supply Laundry Building, a former industrial warehouse in South Lake Union that is the center of a full-block redevelopment plan. The project is a gut rehab, which triggers energy code for new construction. The project team is seeking some departures from current code while maintaining historic character and still pursuing an ambitious performance target. The code flexibility allows the owner to invest in only those strategies most suited to the combined objectives of preservation and performance. Owned by Vulcan Real Estate and at the heart of Seattle’s Cascade Neighborhood, the structure was built in multiple phases from 1906 to 1952, and continuously operated as a commercial laundry until 2000. The building has been vacant for more than a decade. Supply Laundry was designated a city landmark in 2005. The Supply Laundry owner and design team have embraced the outcome-based energy code demonstration, setting an energy target of 30 percent better than the stringent Seattle Energy Code for new buildings, and 70 percent better than an average US building for the given use type. The design includes variances from the Seattle Energy

greening the botanical gardens Pittsburgh, Pa.–One of the greenest buildings in town is also one of the most efficient. The Phipps Conservatory and Botanical Gardens is about to open the doors to the Center for Sustainable Landscapes (CSL), which it says is designed to meet the world’s highest sustainable building and landscape standards. This new 24,350-square-foot education, research and garden space is poised to revolutionize the way that built and natural environments interact, inspiring change for many generations to come, according to the organization. It said the building is participating in the Living Building Challenge of the International Living Future Institute™.

SuStainable CommunitieS • SPRING 2012

Code that allow the owner to tailor energy efficiency measures to the building’s unique context, while maintaining valuable historic character and optimizing investments. The building will rely on a passive, hybrid heating, ventilation and cooling (HVAC) system – in short, relying on occupants to regulate temperature and ventilation by opening and closing windows, augmented by automated lighting, thermal controls, and airsource heat pumps for supplemental heating and cooling. About 80% of the exterior masonry walls will be insulated, allowing preservation of some exposed brick in select common areas and around the main entrance to retain some of the historic character of the building. The biggest challenge in using an outcome-based system is the measurement and verification of actual performance after the rehab work is done. To facilitate accurate measurement and verification, Supply Laundry will include metering equipment for all building energy systems, and the owner is adopting lease provisions that guide tenant improvements, require monitoring and automation, and allow access to data for individual tenant spaces. Frey says the trust will take what it learns in Seattle and use it to encourage similar innovations in other cities. It is looking for other communities that may want to participate by staring similar pilot programs. Members of the project team include: • • • • • •

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City encourages living buildings toxic free, net zero building nears completion; owner plans for 250 years of use, education By Andre Shashaty eattle – Platinum shmatinum. When The Bullitt Center opens here later this year, it will blow buildings receiving the highest level of certification from the US Green Building Council right out of the recycled grey water. The 6-story, 50,000 sq. ft. building will not only house the Bullitt Foundation, it will be its primary research project and teaching tool on green building. The goal: To show the world how to create a “living building,” that is, a structure that has as little negative impact on the natural environment as a grove of fir trees. The building is so cutting edge that few commercial builders would try to emulate it right now. But that doesn’t bother Denis Hayes, president and CEO of the Bullitt Foundation. His organization is looking years and even decades into the future, when the area’s hydro▲ rendering of bullitt Center electric power and clean water won’t be example of what’s possible when a team of people come toas inexpensive as they are now. That’s gether to advance uncommon wisdom. Features shaping the why the foundation is spending big money on one of the Bullitt Center include the following: few solar PV arrays in the area and may be the only comThe lower floor of the building, fronting 15th Avenue and mercial building owner to make their building “net zero McGilvra Place, will house the Center for Energy & Urban water,” meaning all its needs will be met with rainwater Ecology. Programmed by nonprofit and public agency partharvesting and greywater recycling. And that’s just for ners, including the University of Washington’s College of starters. Built Environments, the Center will feature an open resource It is expected to use half the energy that a LEED Platilibrary, classrooms, exhibition space and a research laboranum Building would typically use, and less than one-third the tory dedicated to the training of pioneers who will lead our energy that would be required for a building in compliance green economy. with the Seattle Energy Code. Bullitt believes solar is going to become one of the principal sources of power for the world and wanted to create teaching by building a prototype to show local builders and power suppliers how to do it right. Working out the mechanics of selling surplus From building design and the interactive resource center power to the grid will be one challenge. to the new community green-space, the Bullitt Center will be The building is one of several structures being developed a place for people to gather and learn about green building through Seattle’s Living Building Challenge. and urban sustainability. And it will serve as a highly visible As the first urban in-fill commercial building that is seek-

SuStainable CommunitieS • SPRING 2012

RENDERING: COURTESY MILLER HULL PARTNERSHIP

▲ rendering of bullitt Center

PHOTO: JOHN STAMET

ing Living Building certification, the Bullitt Center is pushing the leading edge of performance-based design. Net-zero energy, net-zero water, onsite treatment of sewage and exclusion of toxic materials are just some reasons the Bullitt Center is innovative. The Living Building Challenge consists of seven performance areas (Site, Water, Energy, Health, Materials, Equity and Beauty) that are subdivided into twenty “imperatives”. In return for pushing the envelope on efficiency, building owners selected for the program are given increased flexibil-

▲ South side of bullitt Center on e. Pike Street

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ity in regard to code compliance, building height and other design and land use issues. The city of Seattle exempted the Bullitt project from almost every requirement except safety and fire provisions. The building was allowed to exceed the local height limits by 10 feet. It did not use that allowance for another floor but to make floors deeper and windows taller to let in more daylight. Hayes said another big benefit was being allowed to put in whatever windows the foundation chose, as long as they had an energy use model that showed they were more efficient than code required. Seattle has one of the most stringent energy codes in the U.S. The building boasts net-zero energy use with 100% onsite renewable energy generation from the latest photovoltaic technology. It has onsite waste management. It offers a safe, naturally day-lit and ventilated work environment. It will use native plant restoration, bio-swales and pervious pavement. Plus, stormwater runoff will be retained onsite, reducing pollutants that endanger the health of Puget Sound. It uses ground source heat exchangers, radiant heating/ cooling and a heat recovery air system. It uses night flush and operable windows for natural ventilation. One of the biggest challenges was to avoid using any building material that contain toxins, or that are manufactured in a way that creates toxic waste, Hayes said. It will not use any materials or components that contain PVC, cadmium, lead, mercury and hormone-mimicking substances.

Commercial developer tries ‘living building’ Stone34 is the first-market rate project to participate in the City of Seattle’s Living Building Pilot Program. The five-story, 120,000-square-foot building at 3400 Stone Way North will be the new headquarters for Brooks Sports’. Skanska USA Commercial Development is the developer. LMN is the architect, Swift & Co. is the landscape architect and Skanska USA Building is the general contractor. The project is scheduled for completion in the fall of 2013. Stone34 is expected to use 75 percent less energy than a typical building, and capture and treat nearly all of the water it will use. Details are on the project website: stonethirtyfour.com It will have ground-floor retail and four levels of office. Underground parking will hold 216 vehicles, with some charging stations for electric vehicles.

SuStainable CommunitieS • SPRING 2012

PHOTO: COURTESY MILLER HULL PARTNERSHIP

▲ bullitt Center Madison Street entrance

The main roadblock to making buildings last longer and consume less is not technical but financial. Very few banks, if any, will lend the extra money it takes to make a building more efficient or durable. This project cost $30 million or about $265 per square foot. US Bank provided a loan for 50% of the project cost. It also received a New Markets Tax Credit and an alternative energy tax credit. The foundation is not overly concerned about the shortterm economic performance of the property. It is doing a different cost benefit analysis over a much longer useful building life than any other building owner – 250 years. “We don’t have any doubt that climate change is real and that there should be cost on carbon, and if the government does not set one, we think there should be a shadow price” Hayes said. “We see a time when there will be no new reservoirs, and new buildings will have to rely on cisterns and rainwater harvest.” Bullitt Foundation makes grants throughout the Pacific Northwest for groups that are trying to change land development and architecture to make the built environment function more like the natural environment, Hayes said. “Our vision is that mankind’s buildings should be no more deleterious than Douglas fir forest,” Hayes said. “We believe that human beings are bound by same principals of ecology as all other beings.” The design team included The Miller Hull Partnership, Point32, Schuchart Construction & PAE Consulting Engineers. ❧

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New Jersey pushes solar, wind power Republican governor bucks party’s Washington leaders, Makes big bet on development of green energy sources

The governor has until 2014, when his term ends, to show New Jersey voters that renewable energy makes sense in today’s rough economic times. He also has the opportunity to show his fellow Republicans and other skeptics that a proactive policy on these issues is a political winner. While few Republican leaders in Congress will acknowledge that climate change is a real concern and that human activity is part of the problem, Christie does. While none of the Congressional leadership will say a word against fossil fuels, Christie is reducing the use of coal and the production of oil and gas in his state.

taking ‘realistic’ approach The state has a renewable energy portfolio standard of 22.5% of energy from renewable sources by 2021, which is down from the previous level, but still among the highest renewable energy standards in the country, according to the governor’s office. Gov. Christie’s final 2011 Energy Master Plan

PHOTO: WIKIMEDIA COMMONS, ANDY DINGLEY

n most states, developing solar and other alternative energy sources makes economic and environmental sense. But in New Jersey, it takes on a much more political aspect. If Gov. Chris Christie succeeds in his ambitious plans to make his state a national leader in renewables, it could usher in a new era of Republican leadership on energy. The governor draws fire from environmentalists for cutting back the state’s renewable energy portfolio standard and ending his state’s participation in a regional greenhouse gas emission management scheme. But Christie will tell you he’s just being pragmatic. And the fact is, that may be exactly what he needs to do to succeed as a national political leader at time when progressive policies on energy are just not popular in Washington, D.C. Christie could have been a top contender for the GOP presidential nomination this year, and is likely to come up again on any short list of candidates for the party’s future presidential bids. So it’s all the more striking that he is betting so much of his political capital on renewable energy as both an economic development initiative and an environmental solution.

SuStainable CommunitieS • SPRING 2012

(EMP) puts a strong emphasis on natural gas as well as renewables. “This governor has taken these issues seriously. He recognizes that climate change is real and is a problem that needs to be addressed,” said Bob Martin, the state’s commissioner of environmental protection. Martin was a policy advisor to Christie during his 2009 campaign and helped shape his energy and environmental policies. A former partner at Accenture LLP, the world’s largest business and technology consulting firm, he is implementing an ambitious program of energy development that is turning landfills into “renewable energy parks” and is working to put the state at the forefront in offshore wind energy generation. State policies to encourage solar energy have already brought results, Martin told Susstainable Communities magazine. “We are second on residential installations after California. On the commercial side, we are

PHOTO: THOMAS SHANAHAN, NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION

▲ bob Martin, New Jersey Commissioner of environmental protection

number one in solar installations,” he said. The state is turning lemons into lemonade by redeveloping old landfills as energy generation facilities, calling them “renewable energy parks.” There are hundreds of old landfills in NJ, and the state is working with local authorities to make them available to build solar farms. At some locations, energy is also being generated from the methane gas generated by the landfills themselves.

Make good use of brownfields

PHOTOS: PPL RENEWABLE ENERGY

▲ Pennsauken renewable energy Park generates power for the adjacent Aluminum Shapes, a manufacturing firm.

▲ The energy park was built by PPL renewable energy on a landfill, and is owned by the Pollution Control financing Authority of Camden County

In the case of older landfills that were not subject to stringent environmental regulations, the state is getting both new solar power as well as bringing the facilities up to today’s’ environmental standards. There are six operating Solar Farms on landfills with 18 megawatts of installed capacity. There are 24 more proposed on landfills or brownfields with potential capacity of 73 megawatts. The Pennsauken Renewable Energy Park generates power for the adjacent Aluminum Shapes, a manufacturing firm that proudly brags about its use of clean energy. The energy park was built by PPL Renewable Energy on a landfill, and is owned by the Pollution Control Financing Authority of Camden County. “The sun doesn’t shine any brighter here than in any other state. What drives it is a strong commitment from the state to makes things happen. That is what NJ is demonstrating. Any state can do it, but NJ has made commitment to make it happen,” Martin said. New Jersey’s Clean Energy Program was established in 2001.

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>> “the future for new Jersey is in green energy and already we’ve put in place policies to broaden our access to renewable sources of energy, cleaner natural gas generation and ending our reliance on coal (for electrical power) generation.” —Governor Chris Christie

That year there were only six solar installations in the state. Since that time, New Jersey has established a model program and an integrated approach to solar development that includes: • A strong Renewable Portfolio Standard (RPS) with a dedicated carve-out for solar generated electricity that has helped create sustainable demand and investor confidence in the market.

• Excellent interconnection and net metering standards that have made it easier for projects to connect to the distribution system and be compensated for their contribution. • A financing model that provides Solar Renewable Energy Credits (SRECs) and additional long term financing for those who invest in solar. For approved new solar projects, SRECs are generated

beTTiNg oN THe wiNd Races is on to build first uS offshore turbines New Jersey may not be the first state to build an offshore wind turbine, but what it may lack in speed it makes up for with the scope of its vision. New Jersey wants to lead the nation in production of energy from offshore wind turbines, but it isn’t stopping there. It also wants to be the primary supplier and servicer for wind energy production throughout the Northeast. “We want to do everything – offering the full supply chain of building turbines, to putting them together, and ultimately, ships and crews to install and maintain them. We have the necessary port facilities, a highly skilled workforce and a central location,” said Bob Martin, the state’s commissioner of environmental protection. It plans to create a comprehensive infrastructure for construction and shipping of the components for wind farms 13 to 20 miles off the cost. With other states close behind, and at least one claiming to be ahead in this new energy frontier, New Jersey is hoping to start construction on its first offshore wind farm in 2014. The state is encouraging development of a new

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port facility in Paulsboro. The new Paulsboro marine terminal on the Delaware River is directly across from Philadelphia International Airport. Eleven private offshore wind developers have expressed interest in developing wind farms totaling more than 12,000 megawatts off New Jersey’s coastline, said Department of Environmental Protection spokesman Larry Ragonese. But who will generate the first power from wind on the high seas? New Jersey is probably the longshot there. Cape Wind near Cape Cod is widely reported to be at the front of the pack. But more recently, news reports say Spain’s Gamesa Corp may beat it with a 479 foot-high prototype wind turbine three miles off the Virginia coast in the lower Chesapeake Bay. There is also a report that Texas, a nationwide leader in landbased wind generation, is moving to install a turbine in the Gulf of Mexico off Galveston. Offshore wind turbines are a common sight in Europe. The United Kingdom claims to be number one in the world for offshore wind power generation having overtaken Denmark in 2008.

once the solar project has been authorized to be energized by the Electric Distribution Company (EDC). Each time a solar installation generates 1,000 kilowatt-hours (kWh) of electricity, an SREC is earned. Solar project owners report the energy production to the SREC Tracking System. This reporting allows SREC’s to be placed in the customer’s electronic account. SRECs can then be sold on the SREC Tracking System, providing revenue for the first 15 years of the project’s life. Electricity suppliers, the primary purchasers of SRECs, are required to pay a Solar Alternative Compliance Payment (SACP) if they do not meet the requirements of New Jersey’s Solar RPS. One way they can meet the RPS requirements is by purchasing SRECs. As SRECs are traded in a competitive market, the price may vary significantly. The actual price of an SREC during a trading period can and will fluctuate depending on supply and demand. One of the biggest challenges is the drop in the market price of solar renewable energy certificates (SRECs), the main financial incentive for solar installations. The 2011 Energy Master Plan includes a number of propos-

opposing view Gov. Christie’s new energy plan came in for criticism from the Democratic chair of the State Assembly Environment Committee. Chairman John F. McKeon (D-Essex) said “The previous Energy Master Plan which included New Jersey as a John F. mckeon member of the Regional Greenhouse Gas Initiative created thousands of good paying jobs as it moved us toward a renewable energy future. The current plan is regressive, shortsighted and will promulgate our reliance on fossil fuels.”

als to the incentives to encourage continued growth of the solar industry, including giving priority for approval to solar —continued on pAge 31

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SPRING 2012 • SuStainable CommunitieS

master planned development employs “smart grid” to power homes, businesses

new community that promises to be a model for sustainability has unveiled a miniature electrical distribution system which it describes as the first “smart” grid in the nation. Mesa del Sol is a master planned community in the southern part of Albuquerque. Plans call for a 12,900-acre mixeduse district that combines job creation and sustainable urban community planning. The project began selling homes recently. In years to come, Forest City Covington, the developer, says the community will feature over 37,500 homes. “We have three great builders and 17 unique floor plans for a range of budgets and lifestyles. Our homes are the most energy and water efficient, and we have developed a community, a neighborhood, and a lifestyle for our residents, said Chris Anderson, Vice President of Development for Mesa del Sol. The three homebuilders are Pulte Homes, Rachel Matthew Homes and RayLee Homes The project boasts high efficiency buildings but is also working to solve the problems of renewable power generation, storage and distribution. It recently unveiled a new “Smart Grid System” that will work with a solar storage facility to “overcome the challenges presented by the intermittency associated with renewable energy sources.” The newly installed microgrid uses on-site solar, fuel cell, natural gas and back-up battery storage to power the 78,000 square foot Aperture Center, an office and retail complex that links the commercial and residential portions of the community. The Aperture Center requires 400 kilowatts of electricity during its peak times. The smart grid will manage energy generation sources, the electrical grid and energy storage sources in a sustainable way. To meet the Aperture Cen-

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ter’s needs, NEDO installed a 50 kilowatt solar photovoltaic system, an 80 kilowatt fuel cell, a 240 kilowatt natural gas powered generator and a 160 kilowatt/hour battery storage system as well as a state-of-the-art building energy management system and sensors for controlling energy use inside the building. “The new smart grid has a building management system that is automated and manages the electric supply and distribution between our on-site generation sources, energy storage and PNM’s power grid,” explained Manny Barerra, Mesa del Sol’s Director of Engineering. Integration of renewable energy sources such as solar and wind energy into the power grid pose challenges to the power grid as it is today, due to their intermittent nature (i.e. when the sun goes down, there is no solar power; when the wind stops blowing there is no wind energy). Controlling demand in response to availability of energy, presents one possible way to integrate more renewable energy into the grid while maintaining reliability, according to the developer.

project objective With the objective of increasing renewables and enhancing energy efficiency, the project plans to demonstrate (1) a smart building with the ability to provide demand response (absorption of fluctuation of solar power and islanding capability in the case of emergencies), (2) control of a distribution feeder with high solar penetration using batteries and demand response, and (3) a smart house as a constituting

element of a smart community (solar generation forecast and demand response using demand response signals). Mesa del Sol is a 12,900-acre mixed-use district located on Albuquerque’s south mesa. By combining job creation and sustainable urban community planning, Mesa del Sol will reflect a balance of environmental resources, economic objectives and social amenities in a community that is forwardlooking with a highly defined sense of place. Mesa del Sol is a model sustainable community with plans to incorporate 18 million square feet of office, industrial, and retail space with 4,400 acres for residential development of 37,000 homes and supporting retail use. Mesa Del Sol incentivizes builders to exceed sustainability goals, and the master-plan includes the development of a solar-ready strategy for both residential and commercial elements and all commercial buildings are expected to be LEED Certified.

Forest City Covington is collaboration between Forest City Enterprises, Inc., an NYSE-listed national real estate company and Covington Capital, which own more than 9 million square feet of commercial/industrial space and is actively developing more than 17,000 acres of land in the Western United States. Partnering with Mesa del Sol on the Smart Grid is Japan’s New Energy and Industrial Technology Development Organization (NEDO), PNM, Sandia National Laboratories, The University of New Mexico and 9 Major Japanese companies including Shimizu Corporation. NEDO is investing $22 million in the smart grid. In addition to funding to construct the system, NEDO will monitor and test the system for the next two years. Once complete, the entire project will be turned over to the University of New Mexico’s Center for Emerging Energy Technologies for continued research and smart grid development. ❧

NeW jerSey pUSheS SoLAr, WiNd poWer —FRoM pAge 29, neW JeRSey

projects that offer a “dual benefit” of reduced energy costs for businesses and local governments, providing revenue for job creation and tax reduction. While it encourages renewable energy, New Jersey is discouraging use of fossil fuels. “We will no longer accept coal as a new source of power in the state and we will work to shut down older plants that emit high greenhouse gases,” Christie said. “We need to commit in New Jersey to making coal a part of our past.” The number of coal-fired plans is shrinking, with encouragement from the state. Several plants will be converted to burn natural gas, Martin said. Does Gov. Christie worry that he is out of step with Republicans in the US Congress, who disparage Obama Administration attempts to encourage renewable energy development and continue to support the oil and coal industries? Not according to Martin. “This is a governor who looks at facts, science and data, and wants to do right thing based on that. He makes deci-

sions based on facts and science not on politics. ‘Do the right thing.’ Those are the instructions I got from him.” While Christie has acknowledged his concern about global warming, he is even more focused on the economic benefits of solar and wind power development. Martin and Christie have high hopes that alternative energy generation will create thousands of jobs in coming decades. The solar jobs are already starting to appear in large numbers, and wind power could eventually match the solar job creation. “Gov. Christie has always said we can protect the environment and grow the economy at the same time. He puts a high value on quality of life and sees clean water, air and land as a key part of that,” Martin said. “Sustainability and quality of life are woven throughout the state strategic plan.” In a state where tourism is a major industry, thanks largely to miles of beautiful beaches, the state doesn’t want anything other than clean wind energy offshore. Christie has banned offshore drilling for oil. He will not allow any liquid natural gas facilities to be built. ❧

SPRING 2012 • SuStainable CommunitieS

AffordABLe hoUSiNg —FRoM pAge 9

It also is moving to encourage the development of mixed income properties and inclusion of housing units for homeless families in new developments. “My administration is committed to expanding housing options for our most vulnerable citizens as part of our longterm, comprehensive plan to combat homelessness,” said Governor Chris Christie. “I’m particularly pleased that the New Jersey Housing and Mortgage Finance Agency has been able to identify and implement changes that will address the issue of chronic homelessness and provide incentives to build mixed income housing developments.” New Jersey Housing and Mortgage Finance Agency (HMFA) has put forth new allocation criteria for the Low Income Housing Tax Credit Program to implement these priorities. Executive Director Anthony Marchetta said the details include: • Setting a cap to ensure wider geographic distribution

of housing available to low-income families throughout New Jersey; • Discouraging a concentration of poverty in any one area or region of the state by limiting the number of low and moderate income units in communities where there are already a high number of affordable housing units; and • Direct 40 percent of all awards to urban target areas to guarantee urban project development. The rule also proposes incentives to locate developments proximate to areas of high job growth and excellent schools. “The changes will create opportunities for children to flourish in high achieving schools while greatly expanding parents’ ability to find employment proximate to their residence” explained Acting DCA Commissioner Richard E. Constable, III, who is Chair of the HMFA Board and Co-chair of the Interagency Council on Homelessness. ❧

AroUNd the NAtioN —FRoM pAge 5

agenda (they currently run on 11% renewables), the City is attempting to assume control of the investor-owned utility. According to a recent Forbes article, there are several roadblocks still preventing Boulder from gaining control of the utility company, and any one of them could be fatal to the deal. From an undervalued offering price to being able to offer the same rates for the electrical service, Boulder and its residents certainly have their work cut out for them. All this considered, the City also rejected an offer from Xcel to buy into a new wind project that would have allowed the City to achieve their 70% renewable goal in 2013, so they can pursue their own agenda. By bringing all of the information to the public through a series of community brainstorming sessions that will go on throughout the remainder of this year, the municipality hopes they can lay the foundation for a landmark takeover of Xcel and push forward to meet their admirable policy goals. For more information on Boulder’s Energy Future plan, visit www.boulderenergyfuture.com.

As new urbanism begins to penetrate the sprawling suburban era subdivisions, commuter trains are making a comeback. In Rhode Island, the Massachusetts Bay Transportation Authority recently extended its Providence/Stoughton commuter line south from Providence. It serves local commuters to Providence and Boston, Massachusetts. The new station has a park and ride garage and is part of a $336 million project that includes the new T. F. Green Airport station Traveling by rail will take travelers from Wickford Junction to Providence in about 35 minutes and to Boston in less than two hours. Driving these routes at peak travel times often takes considerably longer. Meanwhile, the Rhode Island Public Transit Authority (RIPTA) has been quite progressive in its attempts to incentivize people to ditch their cars altogether for rail and bus commuting. By producing a new schedule with rail and bus services running contiguously, patrons now have more flexibility and access. RIPTA is also working on a Transportation Improvement Program that could expand the system significantly with new

rhode island

advanCing Commuter rail patronage

SuStainable CommunitieS • SPRING 2012

stations and service lines over the next several years. To get more information regarding RIPTA plans for expansion, visit www.ripta.com. ❧