August 2008


CARBON OFFSETS FOR GREEN AFFORDABLE HOMES
Enterprise Green Communities Offset Fund Launches

Albuquerque’s Silver Gardens is the nation’s first affordable housing development to tap the booming voluntary carbon offsets market through the Enterprise Green Communities Offset Fund™. This first-of-its-kind transaction allows the development to make additional investments in energy efficiency. And that means an even smaller carbon footprint.  

“The Enterprise Green Communities Offset Fund is the first national opportunity for individuals and organizations to offset their carbon footprint by directly supporting green affordable homes for families in our own communities in this country,” said Dana Bourland, senior director of Enterprise’s Green Communities initiative. “The Fund’s first offset purchase is supporting a leading example of green affordable development in Silver Gardens.”

The market for organizations and individuals seeking to voluntarily offset their carbon footprint is booming. It is up 240 percent from 2006 to 2007 to $330 million worldwide, according to a recent report by Ecosystem Marketplace and New Carbon Finance. Despite the growing interest in carbon offsetting in the U.S., there are relatively few opportunities to support carbon reducing projects in this country that create tangible social as well as environmental benefits. Read more.

GREEN MAKES HISTORY:
Sweeping Green Housing Bill Advances in Congress

Wentworth Commons in Chicago.

Green affordable housing took a huge step forward with the passage of the Green Resources for Energy Efficient Neighborhoods (GREEN) Act. Passed by the House Financial Services Committee, it is the most comprehensive green building bill ever passed by a congressional committee.

The bill transforms federally assisted affordable housing. It will raise the bar on performance and generate billions of dollars in funding for green affordable development. Enterprise worked closely with Rep. Ed Perlmutter (Colo.) to develop and strengthen the bill and rally broad-based support (PDF, 13K) from leading housing and green groups.

“In order to save green, we must go GREEN,” said Perlmutter after the bill’s passage. “I am honored to work with Enterprise Community Partners on this important legislation, and in moving our neighborhoods to healthier, sustainable, affordable living.” 

The GREEN Act’s major provisions will:

  • Increase green building and energy efficiency requirements in federally assisted housing
  • Authorize block grants, loan funds and rental subsidies for green residential development and rehabilitation
  • Encourage Fannie Mae and Freddie Mac to finance more energy efficient mortgages
  • Direct the Federal Housing Administration to insure $1 billion worth of energy efficient homes
  • Provide resources for community-based organizations to create green affordable developments

Financial Services Committee Chairman Barney Frank (Mass.) has expressed his desire for the full House to pass the bill this year. Work is underway on a Senate version of the bill.

HEAT vs. EAT:
Home Heating Costs to Rise by Nearly 70 Percent this Year

A recent editorial in the Seattle Post-Intelligencer discusses how ever-increasing home energy costs will hit hardest for the nation’s poorest families. Stockton Williams, senior vice president and chief strategy officer for Enterprise Community Partners, writes about families who often face desperate choices to “heat or eat,” spending six times more of their income on utilities than middle- and upper-income families. Read the article. (PDF, 25K)

NEW RULES BOOST EFFICIENCY:
IRS Makes it Easier for Building Owners to Go Green

The Internal Revenue Service has released final regulations that remove a major disincentive to owners of affordable rental properties who want to make their buildings more energy and water efficient. Owners of properties assisted with Low-Income Housing Tax Credits can now use a range of options to determine the amount for resident utilities they must deduct from their residents’ rent payments. Read Utility Allowance Regulations Update. (PDF, 61K)

Under current regulations, owners must rely on an obsolete methodology that often results in utility allowances that are much higher than actual utility costs for residents. More accurate utility allowances will create opportunities for owners to leverage additional cash flow from rents to support energy retrofit improvements and resident services programs.

In response to recommendations by Enterprise and other housing groups, the new regulations provide several new options for determining more accurate utility allowances such as:

Later this summer, Enterprise will host an online briefing on the regulations and how to use them. Enterprise also is creating tools to help developers, owners and residents fully realize the potential benefits of the regulations.

LEADING BY EXAMPLE
Ohio Green Communities Funds 1,000 More Green Homes

Tremont Point in Cleveland.

The Ohio Green Communities initiative has announced funding opportunities to create more than 1,000 environmentally responsive homes in 16 developments for low-income and special needs families.

“Since we started Ohio Green Communities in 2006, the number of projects awarded tax credits by the Ohio Housing Finance Agency have tripled,” said Mark McDermott, central region vice-president and homeownership project director of Enterprise Community Partners. “Our partnership is making a mark on Ohio that is sustainable, energy efficient and designed for people who can benefit most from cost-effective.”

Ohio Green Communities is a collaboration between Enterprise, the Ohio Housing Finance Agency (OHFA), the Ohio Capital Corporation for Housing (OCCH) and the National City Community Development Corporation (NCCDC).

“We are pleased to collaborate on this initiative that will bring an efficient and healthier home environment to Ohio’s low-income families,” said Doug Garver, executive director of OHFA. “Providing the means for affordable, sustainable housing is and will continue to be a priority for OHFA.”

The agency awarded both Low-Income Housing Tax Credits and almost $3 million in extra grant funds to the projects. Of the 16 properties, eight were also awarded special grants from Enterprise Green Communities, OCCH and NCCDC, for approximately $50,000 each to further the efforts of environmental sustainability.

Meanwhile, Cleveland Mayor Frank Jackson announced $ 4.6 million in funding for 10 green developments through the city’s Housing Trust Fund. The mayor’s initiative is the first step in his commitment to make all affordable housing in Cleveland environmentally sustainable, using the Green Communities Criteria as a primary benchmark.

GREEN EARNS GREEN IN NEW YORK
Use of Green Communities Criteria Results in Substantial New Funds

David and Joyce Dinkins Gardens in Harlem.

New York Gov. David Paterson announced the availability of $137 million to help build and preserve 6,415 affordable homes. These funds are thanks to New York’s adoption and use of the Enterprise Green Communities Criteria.

Enterprise’s New York City office helped the state’s Division of Housing and Community Renewal and the city’s Department of Housing Preservation and Development adopt much of the criteria. As a result, extra points are available in the 2008 Low-Income Housing Tax Credit applications for projects meeting the Green Communities Criteria. 

In addition, the state recently produced a series of public service announcements highlighting the importance of affordable housing. The spots feature celebrities Mo Vaughn, Tiki Barber and actor, director, producer and Enterprise Trustee Edward Norton. Watch the PSAs.

BALANCE IS KEY:
Environmental and Affordable Housing Organizations Weigh in on Appliance Standards

Enterprise, the Natural Resources Defense Council and the National Consumer Law Center made recommendations to the U.S. Department of Energy (PDF, 45K) about proposed rules for energy conservation in central air conditioners and heat pumps. The organizations urged the DoE to accurately assess regional standards, fix the proposed rating method and consider the true costs of peak demand to ensure the rules are responsive to low-income consumer needs.

GREEN COMMUNITIES SPOTLIGHT:
Austin’s Skyline Terrace Provides Affordable Efficiency Apartments

Skyline Terrance in Austin.

Skyline Terrace is a substantial rehabilitation of a 100-unit former hotel that now provides one-bedroom efficiency apartments for low-income adults and individuals at risk of homelessness. Among the many green features are solar thermal and electric roofing systems to reduce gas and electric bills, and solar window films to reduce solar gain. Foundation Communities is the developer and on-site services provider. Read the profile. (PDF, 160K)