$2 Million Grant for Affordable Zero Energy Housing Village
Bold stimulus and green building plans associated with AB32 are moving from the drawing board to the construction site.
West Village Community Partnership received a $2 million grant from the California Energy Commission for the study and development of advanced energy strategies for a 220-acre, 4,000 student and faculty housing development for UC Davis. The grant award came under the CEC’s Public Interest Energy Research (PIER) Program for Renewable-Based Energy Secure Communities (RESCO).
The grant essentially funds a living laboratory type of study of different energy applications to be designed for and installed in the community.
The developer and UC Davis will be studying how to put together an optimal mix of renewable technologies for the project — including creative financing structures to overcome the first-cost barrier for ultra-efficient green design as well as documenting resident behaviour; whether they actually save or waste more energy in this type of development. Since the project will be built in several phases, the developer will have a chance to improve each new phase’s energy delivery plans, based upon what is learned by studying prior phases.
I love the intersection of the real estate story with the AB32/2030 Challenge issues– they’re already putting together a mixed use addressing pent up demand in the student and faculty housing market in that area. UC Davis ground leases the land to the developer. His focus will be on getting the project financed, built and sold (and paying ground rent of some amount, of course). The project was reportedly already sustainably designed before the grant was awarded. Now grant money will pay for the advanced energy requirements and “study” (read: actually do) the creative financing.
We also point out that one word is missing from both the story and the project website:Â “LEED”. As much as the sustainability of the development is being touted, there is no mention of the design guidelines adhering to any particular third-party rating system, like LEED.
And what about the sustainability objectives?
- Housing units are to be sold at below market prices to attract top talent and students to the University.
- On-site renewable power generation.
- Strong focus on alternative transportation: bicycling and biking will be preferred mode of transport to campus for residents.
- Community layout takes advantage of sun and natural breezes.
- Landscaping is integrated with storm-water systems to cleanse run-off and create habitat areas
The energy strategies to be included are path-breaking for a development of this size. Those to be included and studied with grant funding are:
- energy-efficiency measures in building design (passive and active)
- demand response
- distributed solar photovoltaic to create electricity from the sun
- distributed solar thermal on homes to pre-heat water
- biogas coupled with fuel cell to generate electricity
- advanced energy storage using modern battery techniques
- smartgrid technology to efficiently manage energy supplies
Photo credit: Flickr / Shazari - Eggheads
Friday Photo - Green Finance Upgrades Opportunities
Property owners are very focused on getting stimulus (or any!) dollars to pay for energy efficiency retrofits and weatherization projects. And accompanying those applications are the green jobs expectations of many individuals.
This is the 23 July scene at a Los Angeles green jobs fair for energy efficiency and weatherization, in full swing, courtesy of Life.com.
Approximately $40 billion from American Recovery and Reinvestment Act funds were allocated to green collar jobs in energy efficiency, weatherization and renewable energy.
Many real estate professionals I know are not so sure how these funds will actually improve conditions in real estate finance and investment, due to the underlying weakness in market fundamentals, and the credit markets in particular. They point out that an upside down loan on an energy efficient property is still, well — upside down.
And will directing short term government funding towards retrofitting real estate improve life for those green collar job holders?
The green finance angle for energy efficiency retrofits appears to be one of ‘upgrading relative competitiveness’ for those concerned. That is, upgrading energy performance and job skills to create relatively more competitive properties and workers. A kick start as opposed to a final solution.
Nonetheless, given what we all know now about the financial meltdown and its effects on real estate, a green financial kick start on those two fronts — albeit experimental — provides at least an opportunity to improve the status quo beyond what we would otherwise be able to do.
The rest of the heavy lifting still remains on our shoulders.
