Week of March 21, 2005
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Headlines At a Glance
 
  • Need a Building? Just Add Water
  • Hometown Democracy Initiative on Development Axed by High Court, 4-3
  • Trust Would Aid Housing Developers
  • Luxe Logs; They Look Rustic Enough, But These Rough-Hewn Cabins Pamper the Outdoorsy Elite
  • Basements Are Back
  • ‘Green’ Dwelling Not Just a Dream
  • Owens Corning Fiber Glass Certified as Industry’s Highest Level of Recycled Content
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  • Introduction to Lighting Automation for the Home
  • Tax Credit/Bond Projects Exempt From California Prevailing-Wage Laws
  • The Home Front: The Hotel Spa Goes Home
  • Real Estate’s Foreign Affair
  • Endangered Toad Costs May Hop Up
  • Arnold’s Housing Fix
  • Seeing Green in Brownfields
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    Need a Building? Just Add Water

    As an emergency shelter alternative to tents, which provide poor protection, and prefabricated buildings that are expensive to transport, two engineers working on their master’s degrees at the Royal College of Art in London have come up with a “building in a bag.” Erecting the “Concrete Canvas” structure entails adding water to a sack of cement-impregnated fabric and inflating it with air. The volume of the sack controls the water-to-cement ratio, eliminating the need for water measurement. The Nissen hut-shaped shelter is dry and ready to use in about 12 hours. The inventors said they thought of the approach after hearing about inflatable structures that are built around broken gas pipes to carry out repairs. “This gave us the idea of making a giant concrete eggshell for a shelter, using inflation to optimize the structure for a compressive load,” said co-inventor Peter Brewin. “Eggs are entirely compressive structures with enormous strength for a very thin wall.” A bag weighing about 500 pounds inflates into a structure with 172 square feet and would cost about $7,700. Full-scale production of the shelter is being planned. (www.wired.com)
    Wired News (3/15/05); Rowan Hooper

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    Hometown Democracy Initiative on Development Axed by High Court, 4-3

    A “Hometown Democracy” growth control measure in Florida that would have required voter approval for changes to the development plans of cities and counties won’t go before the electorate next year. The state’s Supreme Court has found that the summary of the measure that would have appeared on the ballot “misstates the substance of the amendment.” At the time of the ruling, organizers had collected only about 60,000 of the half-million verified signatures necessary to put the amendment on the ballot. Supporters of the amendment could rewrite their proposal and start over. (www.sun-sentinel.com)
    Sun-Sentinel (3/17/05); Jackie Hallifax, Associated Press

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    Trust Would Aid Housing Developers

    Katherine Miller, the head of the New Mexico Mortgage Finance Authority, has proposed setting up a housing trust fund that would provide gap financing for affordable housing developers in smaller communities. “This would be where the banks are not inclined to loan,” Miller said. “Mainly, it would help defray the risks of affordable housing development and lower costs by having a below-market interest rate.” Bills have been introduced in the state’s House and Senate to establish a trust fund, which she hopes would be funded at about $20 million. Another legislative proposal would establish 50% state tax credits for donations to affordable housing by individuals or businesses. Smaller communities that don’t have access to production builders who can lower their building costs through high volume “have trouble attracting people who will do 10-20 homes for affordable housing,” she said. “There’s not enough incentive.” New Mexico Gov. Bill Richardson has set a goal of increasing the state’s homeownership rate, currently 70.3%, to 75% in 10 years, and Miller said she would like to see it at 80%. (www.abqtrib.com)
    Albuquerque Tribune (3/17/05); Nancy Salem

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    Luxe Logs; They Look Rustic Enough, But These Rough-Hewn Cabins Pamper the Outdoorsy Elite

    In its winter newsletter mailed to 2.2 million customers, Orvis, the Vermont-based outdoor gear and accessories retailer, has teamed up with Rocky Mountain Log Homes to offer a line of log homes, which can be seen at www.orvisloghomes.com. “The models are all different,” says project manager Jon Sellers. “It’s an open, relaxing type of house so the family can all get together. And it’s very outdoorsy, with big patios and screened porches to lure everybody outside.” The six models range from the Battenkill with 1,539 square feet and a $551,490 turnkey price to the Rogue, with 3,944 square feet and a $1.15 million price tag. “It’s a booming industry,” says Eric Fulton of NAHB’s Log Homes Council. About 400 U.S. manufacturers are building roughly 25,000 log homes a year. So far, Orvis has sold two of its homes. (www.philly.com)
    Philadelphia Inquirer (3/18/05); Art Carey

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    Basements Are Back

    There is a growing trend in fixed-up basements, or “upscale downstairs,” according to NAHB researcher Gopal Ahluwalia. In middle Tennessee, “People are finishing out their basements to a much higher level than in the past,” says David Crane, president of Crane Builders. “Before, it was, ‘Can you make this room so we can use it for a pool table or ping-pong table?’ Now they are creating elaborate rooms with wet bars, media centers and guest suites. A lot of family life has moved to the basement area.” New building technologies are helping to keep these lower levels dry and builders are finding ways to let in as much natural light as possible. “Even in the stairway leading down to the basement, we look for opportunity to get natural light to the stairs,” says Danny Lane, of Southern Land Co. “Usually the back yard is at the lower level and we try to incorporate that outdoor feeling inside with big doors and windows.” And ceilings are being lifted to nine feet or higher in Crane’s homes. Only about 25% of Southern Land home owners finish their basement at the time of construction, and Crane says most of his company’s basement remodeling is for the second or third owner of the home. (www.tennessean.com)
    Tennessean (3/13/05); Joanne Mamenta

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    ‘Green’ Dwelling Not Just a Dream

    With the goal of demonstrating that “going green is doable,” the recent purchaser of a $356,000, 90-year-old bungalow in the Roland Park section of Baltimore has installed a recycled wood pellet stove for heating that cost $3,500 but only needs about $100-$300 worth of pellets for an entire winter. EcoStar tiles that help radiate solar heat to warm the home’s southern side cost about $17,000, and a gray water system and composting toilet cost another $15,000. In the meantime, the state of Maryland is promoting sustainable architecture in the Baltimore area through public-private partnerships and tax policies. Ground has been broken on an environmentally friendly 102-unit seniors apartment complex in Woodstock featuring solar-heated water, energy-efficient heating and cooling, drought-resistant landscaping, a comprehensive recycling program and recycled building materials. Also, the Maryland Energy Administration is working with the Department of Natural Resources and TerraLogos to develop a green template for renovating low-income rowhouses in Baltimore. The Green Building Initiative, a non-profit education project providing support for NAHB’s green building programs, has identified Baltimore as one of its 2005 target markets, according to Richard Dooley, an environmental analyst and land use planner at the NAHB Research Center. (www.baltimoresun.com)
    Baltimore Sun (3/13/05); Margo Stack

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    Owens Corning Fiber Glass Certified as Industry’s Highest Level of Recycled Content

    At the NAHB Green Building Conference in Atlanta, Owens Corning announced that its line of fiber glass insulation products has been certified by Scientific Certification Systems to contain an average of 35% recycled content, an increase of 5% over its prior certification. The certification applies to the manufacturer’s signature PINK fiber glass insulation and its commercial fiberglass products. Owens Corning enhanced its manufacturing process to utilize more waste glass from additional sources. Owens-Corning is a member of the National Council of the Housing Industry — the Supplier 100 of NAHB.(www.azom.com)
    Azom.com (3/16/05)

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    Introduction to Lighting Automation for the Home

    According to NAHB and a CEA State of the Builder Technology Market Study, about 7.4% of the new homes scheduled for construction last year featured automated lighting controls, up from 1.1% in 2003. Lifestyle is a primary selling point for consumers. “With automated lighting control, a home owner can activate exterior and interior entryway lighting from the safety of a car using a remote control,” said Mark Cerasuolo, director of brand development for Leviton Manufacturing Company. “He or she can go away on vacation and schedule some lighting to automatically turn on and off to make the home appear to be occupied. During an emergency, lighting can automatically activate to light a path out of the house. It can be programmed for child comfort based on children’s schedules.” Of the homes with automated lighting, 30% of the systems are tied into the security system and 8% into the home theatre system. Automated lighting control is especially useful for larger rooms with multiple light fixtures and types, but it can be desirable in homes that are as small as 2,000 square feet. (www.aboutlightingcontrols.org)
    Lighting Controls Association (February 2005), Craig DiLouie

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    Tax Credit/Bond Projects Exempt From California Prevailing-Wage Laws

    As the result of a ruling last month by the California Department of Industrial Relations on a senior affordable housing project in San Marcos, affordable projects in the state using low income housing tax credits and tax-exempt bonds but no other subsidy do not have to pay the prevailing wage to construction crews. The difference can amount to as much as 30% of the entire construction contract and as much as 20% of the entire project cost, according to an attorney involved in the senior housing case. However, the matter could be headed for the courts, and if the ruling were overturned, developers would have to pay prevailing wages retroactively. On March 4, the California Tax Credit Allocation Committee released a memo stating that applications for credits must still factor in the payment of prevailing wages when computing project costs. (www.affordablehousingfinance.com)
    Affordable Housing Finance (March 7, 2005); Cynthia Bartlett Hunter

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    The Home Front: The Hotel Spa Goes Home

    Many owners of high-end homes are returning from vacation with pictures and plans of hotel spas they would like to recreate in their own home. Business revenue in resort and day spas reached $11.2 billion in 2003, more than doubling from $5 billion in 1999, according to the International Spa Association. During that same period, the average size of a new home increased 5% and spending on bathroom renovations doubled to $7.5 billion, according to NAHB. One home owner who was inspired by his travels to Europe to put in a big spa with Roman style columns and slate floors found that once the waterfall, steam shower and sauna were finished, at a cost of $60,000, his plumbing didn’t provide enough pressure. Upgrading his water pump and holding tank so that his waterfall will be more than a “faucet in the middle of the wall” will cost another $1,000. Traditionally, home buyers recover most of the expense of their copycat spa bathroom renovations. (www.wsj.com)
    wall street journal (3/11/05); Conor Dougherty

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    Real Estate’s Foreign Affair

    A weak dollar is making it possible for many Europeans to own a second home in such locations as Florida, New York, Chicago and Colorado ski resorts. The euro has risen more than 50% against the dollar in the last three years. Although there are no statistics on foreign purchases of residential real estate in the U.S., the majority of pre-sales for the first two phases of a six-phase luxury condominium hotel in Lake Buena Vista, Fla., have been to buyers from the U.K, Ireland and Europe. Sales have been 71% international; in the past, 20% international has been more typical. Pam Gilhooly and her sister Valerie King, from Edinburgh, Scotland, recently bought a four-bedroom home in Orlando for $214,000 that they say would have cost close to $1 million back home. In addition to a weak dollar, cheap airfares are also helping to fuel purchases from overseas. (www.realestatejournal.com)
    Wall Street Journal Online (3/14/05); Ray A. Smith and Ryan Chittum

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    Endangered Toad Costs May Hop Up

    California’s real estate industry could end up paying about $937 million of the $1 billion cost of protecting the endangered arroyo toad, according to the U.S. Fish and Wildlife Service. The Service had originally proposed establishing nearly 500,000 acres as critical habitat for the toad, but has reduced its latest proposal to less than 100,000 acres from Santa Barbara County to San Diego County. About half of the land is privately owned. Excluded from the new proposal include areas that have been found to be too dry for tadpoles, private lands covered by conservation agreements and the Army’s Fort Hunter Liggett in Monterey County, which has been excluded under national security provisions of the Endangered Species Act. The government’s cost analysis includes purchasing land for toad habitat, delays in getting development projects through environmental regulations and altering construction projects to minimize harm to the nocturnal toads. (www.dailynews.com)
    Los Angeles Daily News (3/12/05); Jim Skeen

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    Arnold’s Housing Fix

    Although the details are still being worked out, California Governor Arnold Schwarzenegger plans to back a package of bills to change parts of the California Environmental Quality Act and related issues to spur badly needed housing construction. Discussions so far emphasize having cities and counties do more planning for housing upfront and limit the attacks that can be waged on individual projects that meet those plans. With 500,000 new residents expected in the state each year, planners, city officials, environmentalists and builders concur that something must be done to better accommodate growth. “This is the first time since I’ve been in the state that you have a governor, executive leadership, saying, I want to deal with these processes. That’s a real breakthrough,” said Mark A. Pisano, executive director of the Southern California Association of Governments. He said that a better way of planning is needed; in its State of the Region report his agency gives Southern California near-failing grades in transportation, housing and other quality-of-life issues. (www.dailynews.com)
    Los Angeles Daily News (3/12/05); Lisa Mascaro

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    Seeing Green in Brownfields

    Old industrial brownfield sites are attracting major residential developers to Philadelphia and some of its older suburbs, including K. Hovnanian, Pulte and Westrum. Granor Price is currently developing 18 acres of the Schuylkill riverfront in Royersford that is the former site of the Anchor Glass Co. “The factories will never come back,” says borough manager Bob Umstead, a lifelong resident who remembers when they were in operation. “The empty land isn’t doing us any good, but 300 units of housing certainly will.” Enacted in 1995, Pennsylvania’s brownfields law has flexible cleanup standards and offers a release of future liability to the owner of a brownfield site once one of those remediation standards has been met. Since April, the EPA has accepted the state’s liability release actions as its own. A developer typically can be building on a brownfield site in a year or so once the remedial plan is in place and has been approved. By comparison, the approval process for developing what little empty land remains available can take four years in Pennsylvania and five in New Jersey. (www.philly.com)
    Philadelphia Inquirer (3/13/05); Alan J. Heavens

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