Building green
Buyers are demanding homes that leave smaller energy footprints, and developers are paying heed
Thursday, January 10, 2008
DANA TIMS
The Oregonian
As homebuilder Randy Sebastian thumbed through the official guide to the 1993 Street of Dreams recently, taking his own stroll down memory lane, he came across an item that made his jaw drop.
"It referenced green building practices," said Sebastian, founder of Renaissance Development, whose local projects include developments in the Cedar Mill and Cooper Mountain areas. "I had no idea the term has been around that long."
But what was in its faddish infancy nearly 15 years ago is now geared for prime time.
Led by Sebastian, Legend Homes of Tigard, Arbor Custom Homes of Beaverton and other industry innovators, the compendium of construction techniques and materials huddled under the green building umbrella is finally starting to unfurl.
"Notions that houses should be efficient, environmentally friendly and built on principles of sustainability are really gaining traction," said Sebastian, who estimated that fully 80 percent of his buyers today care passionately about how green their new home is. "And it's absolutely clear that things are going to continue in that direction."
Some crucial underpinnings of the residential construction industry -- most notably lenders, insurers and appraisers -- have yet to catch up with consumer demand when it comes to green construction.
But with the creeping advent of so-called green mortgages, along with early indications that appraisers are increasingly paying attention to what's taking shape on the ground, many industry analysts say it's only a matter of time before the move toward green construction remakes the entire residential landscape.
Already, seminars on green building are among the most popular offerings of the Homebuilders Association of Metropolitan Portland, an industry advocate based in Lake Oswego. Dozens of area builders have taken the opportunity to gain familiarity with varying levels of green-building certification.
Real estate agents, too, are grasping the need to be on top of the trend. In February, the Regional Multiple Listing Service, the region's most authoritative source of information on homes sales, incorporated the leading green-building programs into its searchable database of listings.
In addition, nearly 300 real estate agents, one of whom traveled last week from Maryland just for the course, have graduated from a two-day green-building seminar Earth Advantage offers. The Tigard nonprofit agency now serves as the primary certifier of green-building programs for a seven-state area.
"We're not to a fully sustainable home yet," said Randy Hansell, Earth Advantage's senior green building consultant. "That's still quite a ways away. But we're moving closer and closer to it. What we know for sure is that you're going to see a dramatic shift in the way we live and build in the next 10 to 15 years."
It's easy being green
New standards for the building industry mirror packages offered by pioneering builders in that both have varying shades of green. Levels of certification range from the federal government's Energy Star program, which delves into energy-efficiency designs, heating/cooling systems and high-grade appliances, all the way to the LEED for Homes Gold Standard.
Attaining the latter requires accumulating points outlined in a thick three-ring binder. The Portland area has only one LEED (the acronym stands for Leadership in Energy and Environmental Design) Gold Standard-certified stand-alone residence -- designed, owned and occupied by architects Brian and Melody Emerick.
"We wanted to delve into green on the deepest level," said Brian Emerick, talking about the couple's recently completed house on forested property in Southwest Portland. "It turned out to be a very exciting experience."
Factors contributing to the gold rating included everything from "holistic" considerations -- such as limiting developed areas to 5,000 square feet of the 45,000-square-foot lot and catching all roof run-off water in an on-property bioswale -- to nuts-and-bolts items: high-efficiency windows, furnace and appliances; low-flow shower heads and toilets; kiln-dried lumber to reduce moisture levels in wood; and wider-placed studs that cut the total amount of wood in the house by 10 percent. About 80 percent of the construction waste was recycled.
Emerick said the couple haven't lived in the house long enough to calculate how much money those combined measures are saving.
"But I can tell you that it's considerably easier to heat than the 1910 house we moved out of," he said, laughing. "Now, when the wind blows, it doesn't suck all the heat out."
At the emerging Villebois residential development in western Wilsonville, a pronounced green streak is credited with persuading the nation's top food and fitness magazine to build its 2008 "FitHouse" in Oregon for the first time.
Arbor Custom Homes is building the two-story, 3,800-square-foot house, which will be open for public tours for three months beginning in June. After that, it will be sold, like the other Earth Advantage-certified houses Arbor is building at Villebois, to a private buyer.
Brad Hosmar, Arbor's product development director, said going green does, indeed, save money. A family of four, for instance, can save as many as 80 gallons of water daily simply by using low-flow shower heads. High-efficiency appliances and heating/cooling systems could save upwards of $400 annually.
But the real push behind green these days isn't so much monetary, he said, as it is consumer demand.
"People appreciate recouping their initial investment," Hosmar said. "But they also enjoy having a healthier indoor living situation and doing something respectful of the environment."
Jim Chapman, president of Legend Homes and Matrix Development, is finding the same thing at his company's developments, all of which are now built to Earth Advantage green standards.
"It's definitely becoming market-driven," he said. "Buyers hear about green-building standards and they ask about it. If a builder doesn't know what they are talking about, they're going to leave."
Lenders lag
Still unclear is how much the other players in the home-building industry will recognize all that budding greenery.
The notion of green mortgages, for example, has barely made a dent in the $10 trillion U.S. mortgage industry. The idea is that lenders would knock off a quarter-point or so from a standard 30-year mortgage out of recognition of a structure's energy efficiency and durability.
Jonathan Logan, founder of Better World Mortgage in Portland, said there are only a few pilot programs, run by lenders and aimed only in part at houses that are decidedly green.
"Lenders haven't caught up as much as one would hope," he said. "But Portland is really the center of the country, along with Colorado and California, for green building. If it's going to be done, it's probably going to be done here."
Signs of change, though slow, may be on the horizon. Kimberly Allen, senior escrow office in Ticor Title's Hollywood office in Portland, closed a Veterans Administration loan recently that authorized an additional $6,000 in the lending limit if the buyers agreed to install energy-efficient appliances and new heating and cooling systems.
"Practices still aren't where we would like to see them," Allen said, "but we're definitely moving forward."
It may simply take time to establish a track record before green construction translates into real-world calculations such as appraisals, said Victor Wandtke, of Accurate Appraisal Service in Portland.
"The green trend is new enough that there aren't enough sales out there to really get in and see what happens as far as value," he said. "A lot of people still won't recognize the value of various green amenities the way they would a new kitchen or bathroom. The truth is that people can be liberal all the way around, but still very conservative in buying a house."
He added, "When we have eight to 10 of them sold in different ways -- new construction, resales -- we'll get a better feel for what it is. But right now, it's kind of a newbie."
Green building practices were considered novel 15 years ago as well, Renaissance Development's Sebastian pointed out.
"And if you think a lot has changed since then," he said, "just wait a few years."
Dana Tims: 503-294-5973;
danatims@news.oregonian.com
http://www.oregonlive.com/metrowest/...570.xml&coll=7