On December 18th, the Austin City Council voted to approve the first tax increment reinvestment zone in an East Austin area that uses land trusts for development purposes. A land trust is a private, non-profit organization that protects certain areas from over development. The goal is to preserve the natural habitat of the land trust area. In Austin, this approval is intended to create affordable housing and to redirect tax revenue from the protected land.
The Texas Legislature passed The Homestead Preservation Act in 2007 to protect those living in the designated areas from increasing taxes. This also included the tax increment reinvestment zones to filter financing to an area that may otherwise not be viewed as suitable for development or in need of redevelopment. The area in Austin that has been zoned is in need of redevelopment, and the land trust in place will assure no excess growth. Tax Increment Financing (TIF) is also in place for this area, if approved by Travis County. This allows the city to use tax revenue as part of the financing available for development. This type of financing has been helpful in many cities nationwide in encouraging the better development in otherwise overlooked areas. TIF helps to offset costs for builders so it can bring more bids to the table.
Austin continues to look for ways to increase the use of land in the city. This area between I-35 and Airport Road has been in need of redevelopment for some time, and the city is hopeful that with approval, it can finally be put to good use.
While there has been a recent surge in residential green building, many seem to have forgotten the number of retail buildings in a community. Within the last year or so, that way of thinking has been reduced dramatically as retailers begin to see the need for more energy efficient buildings. It may be the reduced cost that using energy efficient and sustainable materials that first got the attention of retail developers, but the important fact here is that new retail buildings are being added with green in mind.
Many large developers have been recognized with LEED (Leadership in Energy and Environmental Design) certifications on new construction projects. There are plans for several Wal-Mart stores to be built using recycled and recyclable materials with an included emphasis on energy saving options after completion. These buildings also include solar panels and skylights for energy and to disperse light more efficiently. The goal of these stores is to decrease energy usage and greenhouse gas emissions, as well as solid waste through increased recycling. Other large retailers have also built LEED-certified stores in several areas. Even smaller developments, such as banks, have been included on the certified list.
While a complete LEED certification program for retailers has not yet been released, many large retailers have taken the steps necessary to reduce their environmental impacts. As more energy efficient recourses and technologies are introduced, these retailers will most likely continue the lean toward green. Not only does a green building reduce energy usage, it also saves money, which every retailer looks forward to.
Good morning everyone! I hope that your holidays are going great and that you’re having a wonderful time with your friends and family. I hope this message finds you and yours in good spirits and good health!
Your friend,
Joe
The recent mortgage crisis and ensuing credit crunch has reached another milestone. As of December 18th, the rate for a 30-year fixed mortgage fell to 5.19%. This is the lowest rate on record since 1971 when records for rates began being surveyed. Just the week before, the average rate was 5.47% and last year at this time the rate was 6.14%. The dropping rates further show all too well the current economic state, especially in regard to real estate.
Austin has been a city that has managed to keep out of the national economic hardships very well. The city has never gone through a huge jump in property values, so when the real estate market began to falter, Austin had nowhere to fall. Home sales remained steady, if a bit slowed. Austin has not been hit nearly as hard as comparable cities nationwide. The city has been deemed a recession-proof city by Forbes online. While current market news does show for sale homes on the market for longer times, they are still selling. Those who have the credit available to purchase a new home are looking for places where the economy is still strong. Austin is at the head of this list. Unemployment here still remains low, despite the national rate increase. Companies are still looking to Austin for expansion, bringing more jobs to the area.
While the nation looks for more ways to help the economic structure of the country, Austin continues to lead the way. More mixed use properties are under development, creating more working and living space in the much desired downtown area. Home buyers are looking for a place that will be worth the investment, and Austin is certainly proving to be it.
Q: What’s the difference between a mortgagees policy and a lender’s policy?
A: There is no difference. Essentially a policy provided to a lender insures the validity and priority of the lien insured. In Texas, that is now called a Loan Policy. Prior to 2008, the Texas form was called a Mortgagee Policy of Title Insurance. The form and name were changed in 2008 by the Texas Department of Insurance that promulgates all title insurance forms used in Texas, so that the coverage and name more closely tract those forms widely used across the United States called the ALTA (stands for American Land Title Association) policies. The Loan Policy is often issued simultaneously with an Owner’s Policy when the transaction is a purchase. Issued simultaneously in the same transaction, the premium (charge) for the Loan Policy and Owner’s Policy is greatly reduced and is always the “best deal” for the consumer.
The Leadership in Energy and Environmental Design, or LEED, was created to set up guidelines for green building. The program offers certification based on how energy efficient a home is, both during construction, and after a family moves in. In the last year, LEED has begun to include large retail buildings on its list, and several developers have received certification. The trend toward green building with a goal of certification has many retail developers wondering if it is necessary.
The recent trend toward going green has been ongoing for the last several years, though only recently have retailers begun receiving LEED certification. Perhaps the first thing that retail developers look for are ways to save money. This can lead to a more environmentally friendly construction site and more energy efficient technologies being used after completion. More retailers are choosing solar power and changing to newer fluorescent bulbs that use much less energy. Since the LEED requirements for retailers is still in the works, there are no specific guidelines as of yet to follow for certification. At this time, there is no date when established protocol will be available. Stores can be considered based on a cleaner construction zone, the use of more sustainable or recycled materials, and energy efficiency upon completion.
The major retailers currently topping the list of LEED certifications got there mostly through good financial planning. Since more energy efficient usage generally means less money spent in the long run, most new developments are including green options for this reason. Whether or not the retailer is recognized with an LEED certification, the benefits of greener retail developments far outweigh any additional upfront costs.
Austin’s Green Building Program has many suggestions for both homeowners and builders to keep the environment healthy. The group finds eco-friendly products and services and recommends their usage to residents. In some cases, the use of these energy efficient resources can earn a rebate from the City of Austin. There are more benefits than just that, however. Saving money is another benefit we love to see.
One of the most wasted resources we have is water. Without realizing it, thousands of gallons are lost every day by leaving the water running or not fixing leaky faucets. Inefficient irrigation systems also use more water than necessary for lawns. The Green Building Program has several suggestions that will decrease water usage, and therefore spending. Always check appliances for energy efficiency and water usage before purchasing. Switch to low flow toilets and showers that reduce usage. Front loading washing machines use less water and less energy than top loading machines. If you must have a dishwasher, look for one that uses a no-heat drying option, as it will also decrease energy usage.
Small changes in daily life can also help conserve water. Fix any leaky faucets and whenever possible check the pipes in the home as well. Use your water bill as a means to determine if there are any problems. If you notice a jump in usage, check it out. Use a rainwater catchment irrigation system for lawn care. This will bring rain down from your roof to water the lawn, as opposed to using sprinklers. Being eco-friendly usually also means saving money.
For the last several years, builders nationwide have noticed a trend where bigger is better. Those who have been able to build a home from scratch have selected larger homes than needed. In today’s greener world, this theory has been downsized and home buyers are recognizing the benefits of building a home that suits their needs. As a leader in the green building movement, Austin builders have also taken a step toward this notion.
More homes are being designed with open floor plans in order to efficiently use all space in a home. Hallways are being reduced or removed altogether. Many Austin builders can boast that not a square foot is wasted. The benefits of this downsizing and more efficient use of space is the overall cost of living. Homes that are designed to meet the family’s needs are easier to cool, use less energy, and cost less to maintain. In addition, many homeowners are selecting more energy efficient appliances and less water consuming fixtures. Altogether, a home built to size can save money from construction to everyday living. Open floor plans also allow for better cross ventilation, which will reduce energy usage and cost.
With many builders in Austin to choose from, a buyer can select which design will best suit their specific needs and not have to worry as much about environmental damage. Using all the living space as just that will help to keep the home energy efficient. It is not the size of the home that makes it grand, but how it can reduce harmful environmental impacts.
Austin is a city that has done well throughout the mortgage crisis. Builders here are still in demand, and many have chosen green methods to build a home. One of the highest energy uses after a home is complete is the air conditioning unit. Since Austin has mild temperatures year round, some residents use their cooling systems often. It is important to make sure the unit fits the property and is maintained well. Another way to reduce usage is to build the home with the idea of cross ventilation in mind.
By using cross ventilation, humid air can be removed by the placement of widows throughout the house. First, determine which way the house can be built so that less heat will enter. Keep the attic cool by using lighter color shingles and reflective heat barriers. Place windows in such a way that the natural wind will come through on one side of the building. Since heat rises and looks for cooler air, it will naturally go across to another open window and back outside. Ceiling fans can also help to move the air along, using much less energy than running an AC unit. With cross ventilation, it is possible to remove the humidity from the air, making it more comfortable.
The main goal for any green home is to reduce the amount of energy used for everyday activities. The less usage there is the more money will be saved. Of course, the hottest days will still require the help of an air conditioner, but imagine how many days in Austin when a little breeze can make all the difference.
Many home builders in Austin have embraced green building in new home construction. There is more of a focus on keeping energy use down and environmental impacts at a minimum. This is evident in the design and construction of homes. Renewable resources are increasingly being used. The natural surroundings of Austin are being considered when a build site is selected. Even recycled materials are increasingly being used during construction.
Renewable resources, such as bamboo flooring, are being used more often. Fiber-cement siding is durable and flame retardant, as is medium density fiberboard for interior trimming. Money can be saved by using concrete as a floor foundation and recycled hardwood floors will not hold dust or mold as carpeting would. If a homeowner prefers carpets, look for natural fibers. Builders are using more recycled materials than before, and are usually able to find it locally, which will also bring down cost. Building materials themselves should be handled and disposed of properly. Try to avoid using pressure treated wood or other materials with ozone-depleting chemicals. Whenever possible, maintain the local vegetation and trees surrounding the build site, as this can act as a natural drainage system.
A green construction site will reduce harmful environmental impacts. By using renewable resources or recycled materials, there is less to end up at the landfill. Unnecessary solvents should be avoided for personal and environmental health. Since so many Austin-based builders have educated themselves on green design and construction, finding one to suit your needs will not be too difficult.
