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The end is near. Seriously.
April 28th, 2009 8:48 PM

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The end is near.

When exactly, is hard to predict. It is also hard to predict what that end will look like. However, it is hard to escape the sense that some things will change forever. But what? Will law and order, if you can call this that, descend into chaos? Will nations withdraw from the global economy and seek self-sufficiency and protectionism? Will complex monetary systems that allow insider manipulation be replaced by barter? Will Brad and Angelina ever tie the knot? These are the great questions of our time.

Now, I bring up Brad and Angie, not to name drop or be forever connected to them on the Internet, but because whenever I see a picture of them, and you can’t not, I always imagine an infant wailing in the background. In fact, everywhere I go I’m tripping over strollers, dodging toddlers, and trying to escape the ear piercing shrieks of a full-on baby boom. It turns out 2007 was a year on par with the fifties, which illustrates an important point…life goes on.

From Bristol Palin to Nadya Suleman, there are a lot of women of child bearing age. According to the US Census Bureau, “…the Nation’s population is projected to increase to 392 million by 2050 — more than a 50 percent increase from the 1990 population size.”

And, what do growing families need? Take Nadya Suleman for example, she’s unemployed, but when her brood swelled to fourteen, she went out and bought a bigger house.

The population growth of the United States will, as it frequently has in the past, snap up all surplus housing that currently exists in growing regions. When that happens, prices will rise and builders will have sufficient incentive to return to the market in some, but not all regions. But first, selling prices must rise to the level that returns the cost of construction and a profit worthy of taking the risk.

America has a lot of problems to solve and only time will tell if we made the right choices. And, while some of us are totally paralyzed waiting for the next dispatch of really bad news, others must get on with their plans. The summer buying season is fast approaching and buyers continue to wrestle with uncertainty.

It’s no secret that qualified potential buyers are sitting on the sidelines waiting for some indication that real estate prices are at, or near, their bottom. While increasing sales prices are an obvious sign, buyers who have a strong desire for a wide selection at the best possible prices will need to act before that occurs.

For many potential buyers, it isn’t so much about getting the lowest possible price as it is feeling secure that they made a wise investment. If they plan to stay for 10 years, it matters less what happens in the next two years to sales prices than it does where they spend those two years. There are real and tangible benefits to owning where one lives. One we keep overlooking is satisfaction. I love my home, and I love owning it and doing what I want with it.

Even so, most potential buyers will need some assurances that things won’t fall much further. And, their will be signs. In the fall of 2005, with inventory low and prices at an all time high, I advised listeners of my radio program that if they intended to cash out, now was the time. I told them that we were short of houses and they could get top dollar with a quick sale. While I did not say that we had reached the absolute summit of sales prices, I knew we were close.

In finding bottom, here are some things to consider:

1. Local employment

One of the factors affecting the selling price of real estate is local employment.

At first, all the talk of the housing crisis was about over-leveraged consumers. But, we have now moved to a more critical phase. If you do not have a job and you have little to no savings, you can’t make a mortgage payment, period.

Nor do I believe that housing brought down the economy. It’s the other way around. Housing is benign. People buy houses, start families, and trade up when they are employed. And, because jobs are disappearing so fast, even those untouched by job losses are fearful they could be next.

What brought down the economy was fraud. Massive waves of, as yet not fully disclosed, fraud did this to us. ENRON, WorldCom, AIG, Tyco, Halliburton, Arthur Anderson, Madoff, the legal fraud perpetrated by greedy CEOs; fraud by their accounting firms, loan fraud by sophisticated organized crime from both in and outside the country, fraud by elected and appointed officials, and a bunch of garden variety fraud by small timers brought down the economy. It was a whole sale looting. They got a lot of our money and they burned through our prosperity like drunken whores, and now we are forced to bail them out. But, this too shall pass.

When the job trend reverses, when we begin to create a few hundred thousand jobs over a few months, an enormous pent up demand will return to a limited selection of good housing stock. At the moment, one in seven of the nation’s houses is vacant. Many are in various stages of disrepair, functionally obsolete, or located in the wrong place.

Unemployment filings will likely continue to fluctuate for a while and are sometimes more indicative of changing industry dynamics than the actual employment health of a local community. If your region is anticipating stimulus funds or has modern growth industries that will be developing jobs of the future, your employment picture should start to improve.

Local communities’ recovery time will vary, reflecting employment conditions. Some will never recover at all. Apparently, there is no bottom in Detroit where reports have surfaced of homes selling for as little as a dollar. But, Detroit has been in decline for decades. In the 70’s, so many Detroiters moved to Windsor, Ontario that there was a common bumper sticker which read, “Will the last person leaving Detroit please turn out the lights.”

Detroit has been losing jobs for a very long time, and the recent woes of the American automobile industry do not bode well for the future. But, in other places, where contemporary industry is growing, like Seattle-Tacoma or the Silicon Valley, the bottom is closer.

2. Return to historical baseline of sales

To understand the market dynamic, it is important to understand “normal” for your community. Every month, a finite number of residential real estate transactions occur. In a down market, the number might be as few as half the number of sales during a boom market. But over time, it tends to average out.

Determine a monthly baseline of sales for your community. Obtain a history of sales activity for the past ten years. This will give you a measure that includes sufficient market ups and downs.

In a recovering market, there will be a return to the historical baseline of monthly sales activity.

3. Reduction of available inventory

Just as there are historical baselines for sales activities, there are also similar baselines of available property offered through builders, the MLS, and occasionally, private sellers. Simply tracking the number of listings through the MLS will give you a clear picture of the direction of inventory.

Knowing the baseline of sales activity, you can determine how many months of available inventory are currently in the local market. If inventory is shrinking, the bottom is near.

4. Relationship to cost of new construction

In many communities, sales prices are actually below replacement cost. And, that in itself suggests the bottom is near. If builders cannot recoup their costs and make a profit commensurate with the risk, they will cease building until sales prices begin to rise. Recognizing that prices are actually starting to rise and that resale inventory is shrinking, pent-up demand will pour back into the market and here we go again. Remember, all the people not buying these days will combine with normal baseline demand and overwhelm the market.

5. Hidden price stabilization

Recent reports of sales prices often seem to assert that these sales prices are representative of the value of housing in general. First, that’s just what sold that month. Since distressed properties make up much of the market, it stands to reason that those prices would reflect smaller square footage and a discount equivalent to the cost of rehabilitation.

Some homes are more desirable than others. What about those homes with extra features or those located in good school districts? Are their prices holding? If so, your community may be on its way to recovery.

For potential buyers, finding bottom is less important than knowing that it is near. While it is impossible, given our unprecedented circumstances, for anyone to say for certain when prices will begin to rise in each community, the buyer who knows the signs of recovery will already be settled into the opportunity of a lifetime. In growing communities, housing must and will return to the cost of replacement or new construction.

Posted by Eric Nichols on April 28th, 2009 8:48 PMPost a Comment (0)

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Give yourself some of the stimulus plan and bailout money
April 22nd, 2009 9:12 AM

It seems like there's a bailout for everyone these days -- except perhaps you.  Rather than wait for one to fall into your lap, why not create your own?  You can do it; there are enough resources out there that you can put together a your own bailout plan.

Sometimes the solution can be as simple as pinpointing one or two areas where you're having trouble.  There are remedies if you know where to look and aren't afraid to ask for help.

Here are a few common problem areas where you can concentrate your efforts:

Food and groceries

When it comes to keeping food on the table, "a lot of people need help," says Ross Fraser, media relations manager for Feeding America (formerly America's Second Harvest), which helps to supply most of the nation's food banks.  So don't feel embarrassed asking for help, he says.  Instead, "Get back on your feet, and then you can pay it back in kind," says Fraser.

Here's how to find a local food pantry: visit FeedingAmerica.org or call the group toll-free at (800) 771-2303.  Ask for the closest food bank (these are the large food collection groups located in your region or metro area).  Call that food bank and ask for your local food pantries, which are the small local sites that actually distribute food to individuals.  The staff at the food bank can also give you information about upcoming food giveaways, Fraser says.

While food bank donations are up slightly, the need for food is up dramatically, says Fraser.  Make sure to call ahead because some areas could have two-hour lines and food shortages.  You might also want to inquire about food stamps, says Fraser.  Income requirements vary from state to state, but the food bank or food pantry can brief you on qualification guidelines and tell you which state office you need to contact.

Mortgages

People having trouble making home payments should first call their lender, many of whom have pledged to help homeowners in financial trouble.  Depending on your needs, you might ask to renegotiate your terms or simply add a couple of payments to the end of your loan.

Contact the company currently servicing your loan.  The department you want will typically have a name like "loss mitigation," "foreclosure avoidance," or "home preservation" and be a part of the company's mortgage division, says Allen Fishbein, director of housing and credit policy for the Consumer Federation of America.

Alternatively, you might have access to a nonprofit housing counselor who will negotiate for you.  Many are funded by or work with local governments.  Call your local city, county or state government for a referral or contact NeighborWorks America, says Ira Rheingold, executive director of the National Association of Consumer Advocates.  You can also find a certified housing counselor through the nonprofit National Foundation for Credit Counseling at HousingHelpNow.org.  The Department of Housing and Urban Development, or HUD, can also be of assistance.  Try finding a HUD-certified housing counselor on hud.gov or by calling 800-569-4287.

This assistance should be provided by a legitimate nonprofit, not a business masquerading as one.  No one should charge you for these services.  When working out a solution, make sure it will work long-term, says Rheingold.  If your payment has escalated beyond your means, a discount for a month or two won't solve your problem.

If you're a veteran or have a VA loan, you can get some help from the U.S. Department of Veterans Affairs which can negotiate with your loan servicers to set up a workable arrangement.  For vets with non-VA loans, the department can't negotiate directly but will coach homeowners by telling them who to contact and what to say to get what they need, says Steve Westerfeld, spokesman for the U.S. Department of Veterans Affairs.  Call: (877) 827-3702.  All services are free of charge.

Health insurance

For kids only: Investigate the State Children's Health Insurance Program, or SCHIP.  Administered by the states, it's a federal program that provides low-cost insurance for children.  Find out more by contacting your state insurance department.

No insurance: Consider a high-deductible, "catastrophic" policy with a health savings account, or HSA.  How it works: You purchase a plan with very high deductible but low premiums.  It is paired with a savings account that allows you to bank pre-tax dollars to use for your deductible or other qualified health expenses.  If you don't use the money, it stays in your account for whenever you need it.

Caveat: Not all high-deductible plans are equal, and not all low-premium plans offer the same coverage.  Read the fine print and have an agent answer all of your questions before you buy.

Denied coverage: First, find out why you've been denied.  If there was erroneous information on your medical records (or even correct information that only tells part of the story), getting the records amended could solve the problem.  Discuss the problem with your doctor or the insurance administrator at your doctor's office to identify any possible misinformation in your file.  Georgetown University's Center on Medical rights and Privacy maintains a Web site that will help you correct your records.  

You can also try a different carrier that may have more lenient underwriting regarding your condition.  If you were denied because of serious health problems, consider buying coverage through a spouse's group health plan.  While you pay all or part of the premium, it's usually cheaper and you can't be denied coverage.  Alternatively, investigate your state's high-risk pool.  Set up for people who can't get conventional insurance (and in some areas subsidized by the insurance industry), this will allow you to get coverage without excluding your health problems or paying exorbitant premiums.

Caveat: It's not super cheap and, in some states, pools are closed or having waiting lists.  Visit your state insurance department or call for details.

Don't have insurance due to job loss: If a spouse's plan is not an option, take another look at your former employer's group plan.  Thanks to the stimulus plan, this option just became 65 percent less expensive, and you may have a chance at enrolling.

How this works: the Consolidated Omnibus Budget Reconciliation Act, or COBRA, allows you to stay on your company insurance, generally for up to nine months, as long as you pay 35 percent of the premiums.  Prior to the economic stimulus package, employees had to sign up to remain on the group health plan within roughly 60 days of leaving the company and shoulder the full cost of the premiums.  Therefore, if you took advantage of COBRA, you should see your premium drop 65 percent starting in March.  If you were dismissed after Sept. 1, 2008, and didn't take COBRA coverage, you have another chance.  Moreover, your premiums will reflect the new 65 percent discount.  Government agencies are still ironing out just how long workers who initially passed on COBRA will have to apply, so to be safe, get your paperwork in place within 60 days of the stimulus bill's Feb. 17 signing date.

Caveat: COBRA usually only applies to companies with 20 or more employees, plus the company still has to be operating and offering group insurance.  Also, after nine months, you can continue COBRA for an additional nine months, but must pay the full premium.  Contact your employer or the insurance company to get the forms.  Your employer should provide them.  If you get the runaround, call your state labor department.

Car payments

Getting behind on payments doesn't have to mean losing the car.

First, decide if it's a need or a want.  If you don't need that second car, it may be able to help free up money for other bills.  If getting rid of the car isn't an option, there are other solutions out there.

With a lease: Tally up the cost of getting out of the lease.  Then call the leasing agency to learn if it's willing to renegotiate, says Jack Gillis, director of public affairs for the Consumer Federation of America and author of "The Car Book."  Realistically, it may or may not work, depending on the value of the car and how anxious the agency is to keep you in it, he says.

With a loan: Here you're in a better position when it comes to renegotiating your loan, especially if you owe more than the car is worth, says Gillis.  If the loan company takes back the car, they take a loss.  So it's to the company's advantage to keep you in the car.  However, if your credit is still decent -- even if it's slightly tarnished -- it might be smarter to refinance the loan at a better rate.  Try a few credit unions first, says Remar Sutton, president of the Consumer Task Force for Automotive Issues, and the founder of FoolProofMe.org.  Since most of the credit unions bypassed the subprime lending meltdown, "that means credit unions aggressively are looking for people to lend money to," he says.  The average person will save about $2,000 by refinancing a car loan, according to numbers from FoolProofMe.org.

If you just need help with one payment, you might be able to get an extension, says Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling.  You cover just the interest, instead of the whole payment, and the loan company tacks the difference onto the end of your loan.  However, most companies limit this practice to once or twice annually, she says.

Job loss

If you were fired or laid off, you're likely eligible for unemployment benefits.  Get the details through your state employment office.  Many unemployment offices also have job leads, and information on training programs.

To polish your job seeking skills, visit the library or hit the Internet.

Small bills

Sometimes being able to pay the little bills can make a big difference.  If you need help with a power or water bill, there are usually a couple of resources you can tap.

Utilities: First, call the utility company.  Sometimes you can arrange to pay the bill a month or so late.  The company might also have a program for people who need help with bills.  In addition, representatives may be able to direct you to community resources.

Utilities and other bills: In about 80 percent of the U.S., dialing 211 will connect you to a local agency that can put you in touch with resources in your community, says Linda Daily, director of 2-1-1 for United Way of America.  The 211 service "will act as triage" to help locate other resources in the community that can help, says Daily.  If your area doesn't have 211 services or your phone carrier blocks it, go online to 211.org for local-dial numbers and information on options, she says.  Or visit the United Way at LiveUnited.org.

 

 

 

 


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Posted by Eric Nichols on April 22nd, 2009 9:12 AMPost a Comment (0)

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Challenges clients face in todays market
April 17th, 2009 11:18 AM

Todays customers are under closer scrutiny by banks than ever before. Credit scores, debt levels and reserves are much more critical.

For customers with less then perfect credit, I at times work with them to raise their scores. Sometimes it is a short process and sometimes takes a little longer. If the client is close to what they need, score wise then we do a review of their credit and look for mistakes. The next step is to review the items lowering the score and see if we can eliminate any of them. Some of the actual credit agencies we work with have programs in place to help clients credit scores. Sometimes this can make the difference in getting a better rate, sometimes it can make the purchase happen when it otherwise would not have.

 

Tomorrow lets talk about debt levels..............

Posted by Eric Nichols on April 17th, 2009 11:18 AMPost a Comment (0)

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Building green in Eugene and elsewhere
April 15th, 2009 9:48 PM

Buildings account for one-sixth of the world's fresh water withdrawals, one-quarter of its wood harvest, and two-fifths of its material and energy flows (Roodman and Lenssen, 1995).  Building "green" is an opportunity to use our resources efficiently while creating healthier buildings that improve human health, build a better environment, and provide cost savings.

What Makes a Building Green?

A green building, also known as a sustainable building, is a structure that is designed, built, renovated, operated, or reused in an ecological and resource-efficient manner. Green buildings are designed to meet certain objectives such as protecting occupant health; improving employee productivity; using energy, water, and other resources more efficiently; and reducing the overall impact to the environment.

What Are the Economic Benefits of Green Buildings?

A green building may cost more up front, but saves through lower operating costs over the life of the building. The green building approach applies a project life cycle cost analysis for determining the appropriate up-front expenditure.  This analytical method calculates costs over the useful life of the asset.

These and other cost savings can only be fully realized when they are incorporated at the project's conceptual design phase with the assistance of an integrated team of professionals. The integrated systems approach ensures that the building is designed as one system rather than a collection of stand-alone systems.

Some benefits, such as improving occupant health, comfort, productivity, reducing pollution and  landfill waste are not easily quantified. Consequently, they are not adequately considered in cost analysis. For this reason, consider setting aside a small portion of the building budget to cover differential costs associated with less tangible green building benefits or to cover the cost of researching and analyzing green building options.

Even with a tight budget, many green building measures can be incorporated with minimal or zero increased up-front costs and they can yield enormous savings (Environmental Building News, 1999).

What Are the Elements of Green Buildings?

Below is a sampling of green building practices.

Siting

  • Start by selecting a site well suited to take advantage of mass transit. 
  • Protect and retain existing landscaping and natural features. Select plants that have low water and pesticide needs, and generate minimum plant trimmings. Use compost and mulches. This will save water and time.
  • Recycled content paving materials, furnishings, and mulches help close the recycling loop.

Energy Efficiency

Most buildings can reach energy efficiency levels far beyond California Title 24 standards, yet most only strive to meet the standard. It is reasonable to strive for 40 percent less energy than Title 24 standards. The following strategies contribute to this goal.

  • Passive design strategies can dramatically affect building energy performance. These measures include building shape and orientation, passive solar design, and the use of natural lighting. 
  • Develop strategies to provide natural lighting. Studies have shown that it has a positive impact on productivity and well being.
  • Install high-efficiency lighting systems with advanced lighting controls. Include motion sensors tied to dimmable lighting controls. Task lighting reduces general overhead light levels.
  • Use a properly sized and energy-efficient heat/cooling system in conjunction with a thermally efficient building shell. Maximize light colors for roofing and wall finish materials; install high R-value wall and ceiling insulation; and use minimal glass on east and west exposures.
  • Minimize the electric loads from lighting, equipment, and appliances.
  • Consider alternative energy sources such as photovoltaics and fuel cells that are now available in new products and applications. Renewable energy sources provide a great symbol of emerging technologies for the future.
  • Computer modeling is an extremely useful tool in optimizing design of electrical and mechanical systems and the building shell.

Materials Efficiency

  • Select sustainable construction materials and products by evaluating several characteristics such as reused and recycled content, zero or low off gassing of harmful air emissions, zero or low toxicity, sustainably harvested materials, high recyclability, durability, longevity, and local production.  Such products promote resource conservation and efficiency.  Using recycled-content products also helps develop markets for recycled materials that are being diverted from California's landfills, as mandated by the Integrated Waste Management Act.
  • Use dimensional planning and other material efficiency strategies.  These strategies reduce the amount of building materials needed and cut construction costs.   For example, design rooms on 4-foot multiples to conform to standard-sized wallboard and plywood sheets. 
  • Reuse and recycle construction and demolition materials.  For example, using inert demolition materials as a base course for a parking lot keeps materials out of landfills and costs less. 
  • Require plans for managing materials through deconstruction, demolition, and construction. 
  • Design with adequate space to facilitate recycling collection and to incorporate a solid waste management program that prevents waste generation.

Water Efficiency

  • Design for dual plumbing to use recycled water for toilet flushing or a gray water system that recovers rainwater or other nonpotable water for site irrigation.
  • Minimize wastewater by using ultra low-flush toilets, low-flow shower heads, and other water conserving fixtures.
  • Use recirculating systems for centralized hot water distribution.
  • Install point-of-use hot water heating systems for more distant locations.
  • Use a water budget approach that schedules irrigation using the California Irrigation Management Information System data for landscaping.
  • Meter the landscape separately from buildings. Use micro-irrigation (which excludes sprinklers and high-pressure sprayers) to supply water in nonturf areas.
  • Use state-of-the-art irrigation controllers and self-closing nozzles on hoses.

Occupant Health and Safety

Recent studies reveal that buildings with good overall environmental quality can reduce the rate of respiratory disease, allergy, asthma, sick building symptoms, and enhance worker performance.  The potential financial benefits of improving indoor environments exceed costs by a factor of 8 and 14 (Fisk and Rosenfeld, 1998).

Choose construction materials and interior finish products with zero or low emissions to improve indoor air quality.  Many building materials and cleaning/maintenance products emit toxic gases, such as volatile organic compounds (VOC) and formaldehyde. These gases can have a detrimental impact on occupants' health and productivity.

Provide adequate ventilation and a high-efficiency, in-duct filtration system. Heating and cooling systems that ensure adequate ventilation and proper filtration can have a dramatic and positive impact on indoor air quality.

Prevent indoor microbial contamination through selection of materials resistant to microbial growth, provide effective drainage from the roof and surrounding landscape, install adequate ventilation in bathrooms, allow proper drainage of air-conditioning coils, and design other building systems to control humidity.

Building Operation and Maintenance

Green building measures cannot achieve their goals unless they work as intended. Building commissioning includes testing and adjusting the mechanical, electrical, and plumbing systems to ensure that all equipment meets design criteria. It also includes instructing the staff on the operation and maintenance of equipment.

Over time, building performance can be assured through measurement, adjustment, and upgrading. Proper maintenance ensures that a building continues to perform as designed and commissioned.

City of San Diego's Ridgehaven Green Building

At a glance, the Ridgehaven Building appears identical to its neighbor. In 1996, however, the 73,000 sq ft. Ridgehaven Building was completely renovated with many cost-effective sustainable performance methodologies and technologies. As a result, the Ridgehaven Building now uses 65 percent less total energy than its nearly identical neighbor, yielding a saving of more than $70,000 in annual utility costs. This equates to $1 per sq ft. in annual savings. Even more important, the building occupants love its light and "healthy" atmosphere, boosting their productivity (Gottfried, 1999).

Steps to Ensure Success

  • Establish a vision that embraces sustainable principles and an integrated design approach.
  • Develop a clear statement of the project's vision, goals, design criteria, and priorities.
  • Develop a project budget that covers green building measures.  Allocate contingencies for additional research and analysis of specific options.  Seek sponsorship or grant opportunities.
  • Seek advice of a design professional with green building experience.
  • Select a design and construction team that is committed to the project vision. Modify the RFQ/RFP selection process to ensure the contractors have appropriate qualifications to identify, select, and implement an integrated system of green building measures.
  • Develop a project schedule that allows for systems testing and commissioning.
  • Develop contract plans and specifications to ensure that the building design is at a suitable level of building performance.
  • Create effective incentives and oversight.

For More Information

Buildings account for one-sixth of the world's fresh water withdrawals, one-quarter of its wood harvest, and two-fifths of its material and energy flows (Roodman and Lenssen, 1995).  Building "green" is an opportunity to use our resources efficiently while creating healthier buildings that improve human health, build a better environment, and provide cost savings.

What Makes a Building Green?

A green building, also known as a sustainable building, is a structure that is designed, built, renovated, operated, or reused in an ecological and resource-efficient manner. Green buildings are designed to meet certain objectives such as protecting occupant health; improving employee productivity; using energy, water, and other resources more efficiently; and reducing the overall impact to the environment.

What Are the Economic Benefits of Green Buildings?

A green building may cost more up front, but saves through lower operating costs over the life of the building. The green building approach applies a project life cycle cost analysis for determining the appropriate up-front expenditure.  This analytical method calculates costs over the useful life of the asset.

These and other cost savings can only be fully realized when they are incorporated at the project's conceptual design phase with the assistance of an integrated team of professionals. The integrated systems approach ensures that the building is designed as one system rather than a collection of stand-alone systems.

Some benefits, such as improving occupant health, comfort, productivity, reducing pollution and  landfill waste are not easily quantified. Consequently, they are not adequately considered in cost analysis. For this reason, consider setting aside a small portion of the building budget to cover differential costs associated with less tangible green building benefits or to cover the cost of researching and analyzing green building options.

Even with a tight budget, many green building measures can be incorporated with minimal or zero increased up-front costs and they can yield enormous savings (Environmental Building News, 1999).

What Are the Elements of Green Buildings?

Below is a sampling of green building practices.

Siting

  • Start by selecting a site well suited to take advantage of mass transit. 
  • Protect and retain existing landscaping and natural features. Select plants that have low water and pesticide needs, and generate minimum plant trimmings. Use compost and mulches. This will save water and time.
  • Recycled content paving materials, furnishings, and mulches help close the recycling loop.

Energy Efficiency

Most buildings can reach energy efficiency levels far beyond California Title 24 standards, yet most only strive to meet the standard. It is reasonable to strive for 40 percent less energy than Title 24 standards. The following strategies contribute to this goal.

  • Passive design strategies can dramatically affect building energy performance. These measures include building shape and orientation, passive solar design, and the use of natural lighting. 
  • Develop strategies to provide natural lighting. Studies have shown that it has a positive impact on productivity and well being.
  • Install high-efficiency lighting systems with advanced lighting controls. Include motion sensors tied to dimmable lighting controls. Task lighting reduces general overhead light levels.
  • Use a properly sized and energy-efficient heat/cooling system in conjunction with a thermally efficient building shell. Maximize light colors for roofing and wall finish materials; install high R-value wall and ceiling insulation; and use minimal glass on east and west exposures.
  • Minimize the electric loads from lighting, equipment, and appliances.
  • Consider alternative energy sources such as photovoltaics and fuel cells that are now available in new products and applications. Renewable energy sources provide a great symbol of emerging technologies for the future.
  • Computer modeling is an extremely useful tool in optimizing design of electrical and mechanical systems and the building shell.

Materials Efficiency

  • Select sustainable construction materials and products by evaluating several characteristics such as reused and recycled content, zero or low off gassing of harmful air emissions, zero or low toxicity, sustainably harvested materials, high recyclability, durability, longevity, and local production.  Such products promote resource conservation and efficiency.  Using recycled-content products also helps develop markets for recycled materials that are being diverted from California's landfills, as mandated by the Integrated Waste Management Act.
  • Use dimensional planning and other material efficiency strategies.  These strategies reduce the amount of building materials needed and cut construction costs.   For example, design rooms on 4-foot multiples to conform to standard-sized wallboard and plywood sheets. 
  • Reuse and recycle construction and demolition materials.  For example, using inert demolition materials as a base course for a parking lot keeps materials out of landfills and costs less. 
  • Require plans for managing materials through deconstruction, demolition, and construction. 
  • Design with adequate space to facilitate recycling collection and to incorporate a solid waste management program that prevents waste generation.

Water Efficiency

  • Design for dual plumbing to use recycled water for toilet flushing or a gray water system that recovers rainwater or other nonpotable water for site irrigation.
  • Minimize wastewater by using ultra low-flush toilets, low-flow shower heads, and other water conserving fixtures.
  • Use recirculating systems for centralized hot water distribution.
  • Install point-of-use hot water heating systems for more distant locations.
  • Use a water budget approach that schedules irrigation using the California Irrigation Management Information System data for landscaping.
  • Meter the landscape separately from buildings. Use micro-irrigation (which excludes sprinklers and high-pressure sprayers) to supply water in nonturf areas.
  • Use state-of-the-art irrigation controllers and self-closing nozzles on hoses.

Occupant Health and Safety

Recent studies reveal that buildings with good overall environmental quality can reduce the rate of respiratory disease, allergy, asthma, sick building symptoms, and enhance worker performance.  The potential financial benefits of improving indoor environments exceed costs by a factor of 8 and 14 (Fisk and Rosenfeld, 1998).

Choose construction materials and interior finish products with zero or low emissions to improve indoor air quality.  Many building materials and cleaning/maintenance products emit toxic gases, such as volatile organic compounds (VOC) and formaldehyde. These gases can have a detrimental impact on occupants' health and productivity.

Provide adequate ventilation and a high-efficiency, in-duct filtration system. Heating and cooling systems that ensure adequate ventilation and proper filtration can have a dramatic and positive impact on indoor air quality.

Prevent indoor microbial contamination through selection of materials resistant to microbial growth, provide effective drainage from the roof and surrounding landscape, install adequate ventilation in bathrooms, allow proper drainage of air-conditioning coils, and design other building systems to control humidity.

Building Operation and Maintenance

Green building measures cannot achieve their goals unless they work as intended. Building commissioning includes testing and adjusting the mechanical, electrical, and plumbing systems to ensure that all equipment meets design criteria. It also includes instructing the staff on the operation and maintenance of equipment.

Over time, building performance can be assured through measurement, adjustment, and upgrading. Proper maintenance ensures that a building continues to perform as designed and commissioned.

City of San Diego's Ridgehaven Green Building

At a glance, the Ridgehaven Building appears identical to its neighbor. In 1996, however, the 73,000 sq ft. Ridgehaven Building was completely renovated with many cost-effective sustainable performance methodologies and technologies. As a result, the Ridgehaven Building now uses 65 percent less total energy than its nearly identical neighbor, yielding a saving of more than $70,000 in annual utility costs. This equates to $1 per sq ft. in annual savings. Even more important, the building occupants love its light and "healthy" atmosphere, boosting their productivity (Gottfried, 1999).

Steps to Ensure Success

  • Establish a vision that embraces sustainable principles and an integrated design approach.
  • Develop a clear statement of the project's vision, goals, design criteria, and priorities.
  • Develop a project budget that covers green building measures.  Allocate contingencies for additional research and analysis of specific options.  Seek sponsorship or grant opportunities.
  • Seek advice of a design professional with green building experience.
  • Select a design and construction team that is committed to the project vision. Modify the RFQ/RFP selection process to ensure the contractors have appropriate qualifications to identify, select, and implement an integrated system of green building measures.
  • Develop a project schedule that allows for systems testing and commissioning.
  • Develop contract plans and specifications to ensure that the building design is at a suitable level of building performance.
  • Create effective incentives and oversight.

For More Information

What Makes a Building Green?

A green building, also known as a sustainable building, is a structure that is designed, built, renovated, operated, or reused in an ecological and resource-efficient manner. Green buildings are designed to meet certain objectives such as protecting occupant health; improving employee productivity; using energy, water, and other resources more efficiently; and reducing the overall impact to the environment.

What Are the Economic Benefits of Green Buildings?

A green building may cost more up front, but saves through lower operating costs over the life of the building. The green building approach applies a project life cycle cost analysis for determining the appropriate up-front expenditure.  This analytical method calculates costs over the useful life of the asset.

These and other cost savings can only be fully realized when they are incorporated at the project's conceptual design phase with the assistance of an integrated team of professionals. The integrated systems approach ensures that the building is designed as one system rather than a collection of stand-alone systems.

Some benefits, such as improving occupant health, comfort, productivity, reducing pollution and  landfill waste are not easily quantified. Consequently, they are not adequately considered in cost analysis. For this reason, consider setting aside a small portion of the building budget to cover differential costs associated with less tangible green building benefits or to cover the cost of researching and analyzing green building options.

Even with a tight budget, many green building measures can be incorporated with minimal or zero increased up-front costs and they can yield enormous savings (Environmental Building News, 1999).

What Are the Elements of Green Buildings?

Below is a sampling of green building practices.

Siting

  • Start by selecting a site well suited to take advantage of mass transit. 
  • Protect and retain existing landscaping and natural features. Select plants that have low water and pesticide needs, and generate minimum plant trimmings. Use compost and mulches. This will save water and time.
  • Recycled content paving materials, furnishings, and mulches help close the recycling loop.

Energy Efficiency

Most buildings can reach energy efficiency levels far beyond California Title 24 standards, yet most only strive to meet the standard. It is reasonable to strive for 40 percent less energy than Title 24 standards. The following strategies contribute to this goal.

  • Passive design strategies can dramatically affect building energy performance. These measures include building shape and orientation, passive solar design, and the use of natural lighting. 
  • Develop strategies to provide natural lighting. Studies have shown that it has a positive impact on productivity and well being.
  • Install high-efficiency lighting systems with advanced lighting controls. Include motion sensors tied to dimmable lighting controls. Task lighting reduces general overhead light levels.
  • Use a properly sized and energy-efficient heat/cooling system in conjunction with a thermally efficient building shell. Maximize light colors for roofing and wall finish materials; install high R-value wall and ceiling insulation; and use minimal glass on east and west exposures.
  • Minimize the electric loads from lighting, equipment, and appliances.
  • Consider alternative energy sources such as photovoltaics and fuel cells that are now available in new products and applications. Renewable energy sources provide a great symbol of emerging technologies for the future.
  • Computer modeling is an extremely useful tool in optimizing design of electrical and mechanical systems and the building shell.

Materials Efficiency

  • Select sustainable construction materials and products by evaluating several characteristics such as reused and recycled content, zero or low off gassing of harmful air emissions, zero or low toxicity, sustainably harvested materials, high recyclability, durability, longevity, and local production.  Such products promote resource conservation and efficiency.  Using recycled-content products also helps develop markets for recycled materials that are being diverted from California's landfills, as mandated by the Integrated Waste Management Act.
  • Use dimensional planning and other material efficiency strategies.  These strategies reduce the amount of building materials needed and cut construction costs.   For example, design rooms on 4-foot multiples to conform to standard-sized wallboard and plywood sheets. 
  • Reuse and recycle construction and demolition materials.  For example, using inert demolition materials as a base course for a parking lot keeps materials out of landfills and costs less. 
  • Require plans for managing materials through deconstruction, demolition, and construction. 
  • Design with adequate space to facilitate recycling collection and to incorporate a solid waste management program that prevents waste generation.

Water Efficiency

  • Design for dual plumbing to use recycled water for toilet flushing or a gray water system that recovers rainwater or other nonpotable water for site irrigation.
  • Minimize wastewater by using ultra low-flush toilets, low-flow shower heads, and other water conserving fixtures.
  • Use recirculating systems for centralized hot water distribution.
  • Install point-of-use hot water heating systems for more distant locations.
  • Use a water budget approach that schedules irrigation using the California Irrigation Management Information System data for landscaping.
  • Meter the landscape separately from buildings. Use micro-irrigation (which excludes sprinklers and high-pressure sprayers) to supply water in nonturf areas.
  • Use state-of-the-art irrigation controllers and self-closing nozzles on hoses.

Occupant Health and Safety

Recent studies reveal that buildings with good overall environmental quality can reduce the rate of respiratory disease, allergy, asthma, sick building symptoms, and enhance worker performance.  The potential financial benefits of improving indoor environments exceed costs by a factor of 8 and 14 (Fisk and Rosenfeld, 1998).

Choose construction materials and interior finish products with zero or low emissions to improve indoor air quality.  Many building materials and cleaning/maintenance products emit toxic gases, such as volatile organic compounds (VOC) and formaldehyde. These gases can have a detrimental impact on occupants' health and productivity.

Provide adequate ventilation and a high-efficiency, in-duct filtration system. Heating and cooling systems that ensure adequate ventilation and proper filtration can have a dramatic and positive impact on indoor air quality.

Prevent indoor microbial contamination through selection of materials resistant to microbial growth, provide effective drainage from the roof and surrounding landscape, install adequate ventilation in bathrooms, allow proper drainage of air-conditioning coils, and design other building systems to control humidity.

Building Operation and Maintenance

Green building measures cannot achieve their goals unless they work as intended. Building commissioning includes testing and adjusting the mechanical, electrical, and plumbing systems to ensure that all equipment meets design criteria. It also includes instructing the staff on the operation and maintenance of equipment.

Over time, building performance can be assured through measurement, adjustment, and upgrading. Proper maintenance ensures that a building continues to perform as designed and commissioned.

City of San Diego's Ridgehaven Green Building

At a glance, the Ridgehaven Building appears identical to its neighbor. In 1996, however, the 73,000 sq ft. Ridgehaven Building was completely renovated with many cost-effective sustainable performance methodologies and technologies. As a result, the Ridgehaven Building now uses 65 percent less total energy than its nearly identical neighbor, yielding a saving of more than $70,000 in annual utility costs. This equates to $1 per sq ft. in annual savings. Even more important, the building occupants love its light and "healthy" atmosphere, boosting their productivity (Gottfried, 1999).

Posted by Eric Nichols on April 15th, 2009 9:48 PMPost a Comment (0)

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What if A Eugene Oregon Starbucks switched to LED lighting?
April 12th, 2009 7:54 AM
What if Starbucks switched to LED Lighting?

What if a Eugene Starbucks switched to LED Lighting?



In a recurring post we plan to do, analyzing the impact of large chain stores on the environment, I thought I’d start off with analyzing how much energy and money my local Starbucks could save by switching over to LED lighting.

In Summary:

56 bulbs running at 17 hours a day (6am - 11pm):

Total Cost to convert to LED:$5,620

1st Year Savings in Electricity and Bulb Costs: $3372.14

Total Time to Payback: 1.7 years

Total Savings over 8 Years (LED’s last 50,000 hours): $26,347.56

Number of Years until LED’s need to be replaced: 8.1

Total CO2 emissions reduced over 8.1 years: 200,880 lbs.

What if ALL the Starbucks Stores in the US (11,434) switched over to LED lighting:

They would save $38,557,099.98 PER YEAR in electricity and bulb costs and reduce CO2 emissions by about 285,000,000 lbs. PER YEAR.

Anyone work at Starbucks? What an impact Starbucks could have both on the world and on their bottom line…

Big thanks to Eternal LEDS for their input

Posted by Eric Nichols on April 12th, 2009 7:54 AMPost a Comment (0)

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Live Enthusiastically!
April 10th, 2009 6:53 PM

Enthusiasm is contagious! It’s attractive. Enthusiasm makes people want to be around you, to buy from you, and to be led by you.

How can you stay enthusiastic? By telling yourself what you like about what you’re doing.

Actions create momentum. Motion creates emotion. Reinforce that momentum by sharing your enthusiasm with others.

We become what we think about most. Our thoughts become our words and our words become our actions. Whether intended or not, our actions lead to results.

So what we focus on, and who we associate with, matters.

Enjoy your weekend and make a difference in someones life!

Posted by Eric Nichols on April 10th, 2009 6:53 PMPost a Comment (0)

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