SOLARA: Affordable Housing asGreen Sustainable Development Anne Wilson Vice President Real Estate Development Community HousingWorks North Caroline Affordable Housing Conference October 16, 2007
Community HousingWorks A San Diego non-profit that helps people and neighborhoods move up in the world by providing a full range of housing options combined with training and support. 25 years history in San Diego Home Ownership Center; 17 as Multi-Family Developer 1550 apartment homes; 29 complexes What do we do? • Build and own beautiful affordable apartments • Provide unique first-time homebuyer loans • Provide support and training that strengthens communities and helps families build a wealthier future Nationally and locally recognized designs: AIA; Fannie Mae Maxwell Foundation; Urban Land Institute; Pacific Coast Builders Conference NeighborWorks America Charter Member
Community HousingWorks • Award winning affordable housing • 29 affordable rental communities across San Diego County • Homes for over 1,600 families
SOLARA is Green and Sustainable • Not just photovoltaic electricity/Solar Power • Five elements make a project “green” • Energy Efficiency - Reduce energy demand by 60-70%, • Renewable(s) – Energy Supply - use renewable energy to supply balance of demand • Water Efficiency • Recycled / Recyclable Materials • Indoor Air Quality (IAQ)
SOLARA • Completed March 2007 • Poway, CA inland approx 20 miles (hot) • Mixed use master plan includes 2,100 SF office • Physical: • 56 units (1, 2, 3 bedroom), family units • 2 story wood (no elevators) • 2,100 sf Community Center • 90 parking spaces (w 56 carports) • 22 DU/Acres • 142 Kilowatts from PV (100%) • Affordable Housing- LIHTC restricted (55 yrs) • 30%-60% AMI (approx low $15k – mid $40k) • Rents - $388 - $1,075/mo (includes all utilities)
Barriers Technical – how to do it? Who to trust? Finance – where to find additional funds New technology Concerns: Permits and Approvals Construction –GC, Arch, Subs Utility Companies More work, new complexities, potential delays?
SOLARA = lots of challenges, little time • Time – City needed us to break ground in less than 12 month from submission of design concept! • Site - flood plain, adjacent to FEMA floodway greenbelt; expensive sitework to level site and increase density (425’ long, 8’ high retaining wall) • Team – selected prior, no one experienced with “green” • Costs– 2004/2005 high cost period in SD/USA • No model – no “LEED” guidelines for low rise residential
Technically – You can do it- we did! • Decision to build Green Fall 2004 • Started Grading Oct 2005 • LIHTC allocation Jan 07 • Completed April 2007 under budget, on time How did we do it? • Mary Jane Jagodzinski, Sr Proj. Mgr provided strong leadership • Supportive City staff • Green Consultant • Luck
SOLARA Green Elements: Photovoltaic Example: Daytime and PV feeding the SDGE grid Meters run backwards and forwards!
SOLARA Photovoltaic Cost (approx) $1,103,000 Sources CEC Rebates (State) $409,000 Tax Credit Basis Boost (State) 405,000 Investment Tax Credit (30%) (Fed) 208,000 Perm Mortgage (project based UA) 81,000 Total Sources $1,103,000
SOLARA: Project Finance(prevailing wage) Loan (soft): City of Poway $ 775,000 Loan (soft): San Diego County HOME 1,000,000 Loan: Union Bank of California 2,370,000 Rebate: CEC’s ERP 409,000 Misc. Reimb / Interest 152,000 Equity: Business Tax Credits: NEF 208,000 LIH Tax Credits (9%): NEF 11,266,000 TOTAL $16,180,000 (excludes $2.2 m for land, 99-yr ground lease w/ Poway Redev.Agency)
CA Green Initiatives • CA Tax Credit Agency: -5% basis boost for PV -4% basis boost for energy efficiency/Green -Note: 9% deals pay for PV 100%; 4% doesn’t • California Energy Commission/Public Utility Commission -Rebates New Construction (decrease as more built) -Grants to Nonprofits to provide TA, training, modeling
CA – High Energy Efficiency Standards • California’s Energy code- “Title 24” since 1974 • Perspective: If CA not changed code in 1974, would need 1 nuclear plant every 8 miles between San Diego and San Francisco! • Per Capita Energy use in CA – lowest in US, level • SOLARA exceeded CA Title 24 by >42% (2001) • SOLARA exceeded national IBC ASHRAE 2001 standards by 80%!
SOLARA: Green, Sustainable, Smart Growth • Not Just photovoltaic electricity • What 5 elements make a project “green”? • Energy Efficiency - Reduce energy demand by 60-70%, use renewable energy to supply balance of demand • Renewable(s) – Energy Supply • Water Efficiency • Recycled / Recyclable Materials • Indoor Air Quality (IAQ)
SOLARA: Green, Sustainable, 360’ • Smart Growth - location matters • Building Envelope, orientation on site • Maintenance Plans and Training Manuals • Prop Mgmt Staff Training • Resident Training and Buy In • Resident Services Program curriculum, outreach and education (Enterprise $) • Public Art & Education
What Do Developers Need? • Successful examples • Education and Technical Assistance – to developers, public jurisdictions and depts • State & Local Agency Coordination and Support • Utility Company commitment and attention -state action helps; utilities heavily regulated • Funding for Capital Costs – Policy changes
Policy Needs - Funding • State and Local Gov must support PV and Green - Rebates work best • Federal ITC – excellent, preserve • Local Gov - Expedite permits and review process • Utility Companies – create incentive & expedite programs • Requires state by state policy changes (federal Section 42 incentives?)