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Week of March 22, 2004

Front Page

President's Message

* For Working Families, Affordable Housing Is in Short Supply

Housing Forum

* It’s Not Easy Building Green

Housing and Economics

* Escalation Clause From NAHB Provides Insurance Against Rising Materials Prices
* Weather Cools Down Home Starts a Bit in February
* Builders See Strong and Steady Single-Family Market in March

Legal Issues

* NAHB Fights for Reasonably Priced Flood Insurance

Green Building

* Leaders in Green Building Helping to Develop Guidelines
* Awards Recognize the Best and the Brightest in Resource-Efficient Home Building
* Interior Clay Finish Chosen for National Green Building Award

Multifamily

* New Mailbox Regulations Still Raise Some Concerns
* Pillars Awards Showcase the Best in Apartments and Condos
* Apartment Management Sessions Offered at Multi Housing World

Small Builders and Remodelers

* To Do or Not to Do…Handyman Service

Seniors Housing

* Show Your Prospects (and Their Guests) That They Have Arrived
* Creating Service, Success and Lifestyle Communities Among Topics at Seniors Symposium

Member Dividends

* The Best Paying Non-Job I Ever Had

Women's Council

* Marketing Yourself: Be Prepared for the Interview

Housing Finance

* Bank Listing Service Potentially Worthwhile Resource for Projects in New England

Labor

* NAHB Members Help Students Finance Their Education

Building Products

* New Treated Wood Windows Resist Decay and Termites

Builder's Engineer

* Joe Drut’s Meltdown

Building News Coast To Coast

Association News & Events

* Share Your Knowledge and Expertise
* Sign Up for the Legislative Conference and Make Housing a Priority in Congress
* Calendar of Events

NBN Back Issues

 

It’s Not Easy Building Green

By Dave Porter

In this age of global warming, deforestation and overflowing landfills, many of us are taking a hard look at the part we play in conserving natural resources. That’s why green building is becoming the rage. But as home builders, how do you make educated choices about your green or sustainable building and marketing practices? Here are some helpful suggestions.

What Is Green? Various definitions are creating a problem. There does not seem to be one definition for green construction and, therefore, builders, appraisers, lenders, county officials, trades people, real estate agents (and lest we forget) consumers, all seem to have different perceptions about what it means.

To be truly built-green, a project needs to include many components: site selection, design (this is often undervalued, because green construction starts with green design), air quality, durability of construction, natural light use, water conservation (inside and outside the home), natural landscaping, job site waste reduction and recycling, recycled products in construction, alternative building components, energy saving appliances and lighting, energy alternatives (such as solar) and of course, robust insulation.

Other considerations include the size of the home and its use of space and impact on the land. The next stages of green include zero net energy homes that can sell energy back to the utilities by producing green power by harnessing such natural elements as the wind and sun.


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The Green Tower of Babble is another problem. Scores of special interest groups, each with a green message, add to the confusion. Each group wants a bit of your time and a bit of your wallet!

Everyone has heard of ENERGY STAR® and that they certify appliances. They also certify homes. But energy savings is only one (albeit very critical) part of the green puzzle. In Washington’s King and Snohomish Counties, the charge is being led by the Master Builders’ “Built Green Program” and in Portland, OR, it’s the “Earth Advantage” program. These programs advocate current green components and the willingness to incorporate smart ideas from other groups (a kind of sub-branding of products, techniques and standards, like incorporating ENERGY STAR appliances and their practices.)

Building an authoritative and clear educational program about green building is paramount for all concerned.

Green Can Be Costly. This is perhaps one of the biggest consumer concerns and often the biggest myth. Some of the added costs for a green-built house are real, but many are not.

Paying for upgraded appliances, insulation, HERS (Home Energy Rating System) testing — all add up. HERS testing is important because it validates that a home is indeed energy efficient, but requiring every similar home to be tested layers costs.

A compromise on verification is needed to insure quality but manage cost impacts. For some, this will still work against home affordability. On the other hand, some buyers are willing to pay more than we’d expect. They know they will save on utility costs and there is a quality-of-life factor.

In a study conducted by David Johnston, “The State of Green Building 2001,” buyers said that they were prepared to spend more on green features than builders expected, an indication that the builders were probably leaving profits on the table.

Industry partners are also an important cost-saving resource. They can help with marketing and in some cases financial incentives for consumers. Lenders such as Countrywide Home Loans are offering, in targeted areas, closing cost reductions when buyers buy built-green homes.

Token greening (a.k.a. "green washing") can be another major issue when dealing with green construction. Some builders will throw down carpet from recycled plastic bottles and slap up a recycled product logo on the kitchen counters. Consumers will see through the "green wash" very quickly. Buyers see the value of healthy living and durability of construction and they are more environmentally educated than any other generation.

Government Forced Green Is Not the Solution. As counties and cities increasingly begin to see that there is a benefit to green building, it needs to be emphasized that encouraging green is a far more productive approach than controlling green. It’s too early in the green revolution for cities and counties to mandate green building standards. Let the Green Built or Earth Advantage (or similar) programs have a chance to succeed.

If consumers drive the market demand for green, then builders will see the advantage in attracting purchasers, while realizing the profit potentials from green.

Regulators (“sticks”) requiring green can lead to adversity for both builders and their customers. Collaboration, on the other hand, creates a synergy that produces stellar results. The private sector can “own” and promote green. Cities and counties should challenge builders and developers to increase their output of built-green homes. If builders don’t embrace the cause over a reasonable period of time (say two to five years), then perhaps some formal ordinances might be appropriate.

A great example of how the private sector is stepping up to the plate is a new alliance between the City of Issaquah and Port Blakely Communities. They are partnering in establishing ways to create green communities. It’s a promising collaboration. Builders in Issaquah Highlands will be green builders. They are planning for all of the builders going forward in that development to build to a three-star, built-green standard. This effort will incluce a turbo-charged, built-green demonstration home.

In the definition of green at the beginning of this article, the individual home site was listed as a piece to building green. In the Issaquah Highlands instance, it’s exciting that the entire development will be green.

The challenge is there for home builders both large and small as well as the industry at large to find ways to champion green. The legacy is ours to build, and the time is now.

Dave Porter is first vice president in the Pacific Northwest for Countrywide Home Loans — National Builder Division. He is a national speaker and writer. Contact him by e-mail or call 888-877-4879.


Go Green in 2005

Mark your calendars now for the seventh annual National Green Building Conference. Next year’s conference will be in Atlanta March 6-8.
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