Austin Real Estate Blog

Living green these days is becoming the norm. Austin has been a city that has embraced the concept of conservation and living green. Many local builders now offer green alternatives for building materials as well as appliances. In keeping with this attitude, new Austin business resident FTL Solar has announced $15 million in investments for PowerMods, a 20×20 tent-like structure run strictly on solar power. The company has stated its goal for the year is $40 million in investments.

The PowerMod can be used in a variety of ways, including as disaster relief shelters and remote medical stations. The military has also found uses for these structures. Each module can be used alone, or combined with hundreds of others. The power generated can either be stored for future use, or can be used to run computers, lights and radios for varying times. Last week, the company also introduced the PromoMod, which has a secondary purpose of advertising. FTL is hoping these tents will be used at outdoor fairs and markets as a way for businesses to promote themselves while caring for the environment. Formerly headquartered in New York, the company moved to Austin last month.

FTL continues to receive grants from various sources. With a specific goal in sight, the company hopes to bring relief to many with these environmentally friendly modules. The company was formed two years ago as an offshoot of FTL Design Engineering Studio as a way of promoting green living. Austin is the perfect city for the company to reach its funding goal.

The real estate appraiser may have another criterion on his or her list to evaluate when assessing a property. The new criterion is something near and dear to Austin developers, construction firms, and city governments: the green building thing.

At the end of June, 2008, a number of real estate appraisers from all over the US convened in Austin to learn how environmentally conscious building materials can change the value of a property. The week long seminar was run by the Appraisal Institute out of Chicago. It focused on green building in the commercial property field and there are plans in the making to hold another that focuses on residential properties in the near future.

The seminar examined sustainable elements in building and where to set the bar for putting a value on green building elements with few guidelines to go by. As green building becomes more popular and even mandated in some regions, a new set of criteria and valuation has to be development. As Jim Amorin, president-elect of the Austin regional Appraisal Institute stated, “we have been actively developing coursework to help our members understand how green is going to impact the properties we are appraising.”

Appraisers will have to start looking at such features as highly efficient heating and air conditioning systems, alternate uses of energy, water savings, and energy saving lighting and fixtures as factors that will effect the value of a property. But there remain questions for future consideration - how will the investment in green building pay off in the long run, how to create a reliable way to value green buildings with so little data to go on, and what green building elements add the most value to a building? Questions that will need answers soon.

Everywhere you look, people are talking about going “green,” but what exactly does this mean? As the environmentally friendly building trend grows, more builders are offering “green” options to their customers. As many homeowners are unsure what they need to make their homes more energy efficient, groups such as Austin Energy have offered tips as to what should be used or added to a home when building or remodeling to meet these green standards.

When building a new home, plans for going green start with things as basic as the positioning of the structure. An east-west axis will reduce energy usage, on its own. Choice of materials and features also plays a role in the energy rating of a home. Use spray foam insulation, rather than standard fiberglass and choose energy efficient doors and windows.

When purchasing a cooling system for a new home or as a replacement, be sure that the model is energy efficient. Lighting should be fluorescent, particularly in high use areas. Add ceiling fans to common rooms, bedrooms, baths and kitchens. Choose a light color for the exterior of the home and have interior rooms painted colors that make the best use of natural light. Experts also suggest that the structure of the home be built from sustainable materials to further help the environment.

Though many of these building choices are more expensive initially, the energy savings and environmental impact is well worth the expense. Even if going completely green is not financially possible, even the smallest improvements will be a help to your personal energy usage and to the environment.

Austin residents Bruce Weatherford and Adam Toguchi have recently completed a major remodeling project to their home and have consequently received Austin’s highest possible rating for energy efficiency. After expanding the existing structure and adding a second floor, their home has gone from 850 square feet to 1850 square feet, more than doubling in size.

The pair chose to use the suggestions of Austin Energy when completing their remodel and added as many energy efficient and sustainable features as possible in both the old and new sections of the home. Though the cost of the remodel was higher, they have already seen the benefits in their utility bills, which have not changed even with more than doubling the size of their home.

Included in the upgrades that they purchased, Weatherford and Toguchi chose to use foam spray insulation, which has been a major factor in the reduced energy costs. Their designer found ways to include a large number of windows, and even a glass wall, while maintaining a high rate of efficiency. All involved in the project hope that the aesthetics of the home prove to would-be remodelers that choosing to use green resources can lead to a beautiful, as well as efficient home.

Those who are interested in finding out more about what it takes to have a home with a high energy rating can visit the Austin Energy website for more information on the project. Information on rebate plans and free materials is also available on the site.

More than thirty years after the first big environmental movement began, big cities are finally starting to smarten up about sustainable and ecologically friendly improvements in services, construction, and planning. Austin is usually the model city held up to these standards, but other cities are starting to gain ground in the green movement. Notable among these cities is Dallas.

Once known as the worse offender of urban sprawl, Dallas city officials have stepped forward with a bold plan to engage the residents in revisiting city planning, revitalization, transportation, and housing. Called forward Dallas!, the city council has adopted a comprehensive plan to address issues of sprawl, pollution, crime, and land use.

The plan calls for stabilizing residential neighborhoods, while addressing growth and increasing housing needs. Public transportation is an issue as gas prices rise and congestion on existing infrastructure becomes a concern. Development around DART stations is supported as well as small business development, retail growth, and other business recruitment and retention. City officials are actively seeking public input on these issues through workshops held around the city. Participants are invited to share ideas about where growth should occur, what areas should be left as open space, where to make improvements on roads and transportation, as well as myriad other urban concerns.

Dallas has also adopted the ambitious Green Dallas Program, aiming for a goal of obtaining 40 percent of its energy from renewable sources in 2008. City government passed an ordinance in spring 2008 mandating green-building standards for new construction and improvements in energy efficiency for existing buildings. Dallas had an existing green standard for city-owned building under the Leadership in Energy and Environmental Design (LEED) silver standard; this ordinance adds private developments and residential properties to the standard.

Construction began in February 2008 on two luxury apartment complexes in the North Austin area, both constructed by the Texas division of Alliance Residential Company: Alliance Communities. Broadstone Travesia will be a 396 unit, built next to Travesia Corporate Park and Broadstone Grand Avenue, a 280 unit complex, will be build near Round Rock on the Grand Avenue Parkway.

The Travesia complex is scheduled for completion by mid-2009. Rents on the one-, two-, and three-bedroom apartments will range from $785 to $1,465 per month. It will be located across from La Frontera, a mixed-use development containing retail and office space, residential areas, and financial institutions.

The Grand Avenue project is also expected to be completed in 2009, offering one-, two-, and three-bedroom units ranging in rent from $760 to $1,430 per month. The apartment complex will be located at the northeast area where Grand Avenue and Interstate Highway 35 intersect.

Construction financing for the Travesia apartments is being provided by Guaranty Bank, while Bank of America is providing the financing for the Grand Avenue project.

This new construction is indicative of the Austin area’s healthy and growing economy. Austin continues to attract major corporations to locate their headquarters in the area, and has been a leader in a new growth industry - “green” jobs and construction. As concerns over global climate change and warming grow, Austin stands ready to answer with alternative energy sources and sustainable landscaping, reusing waste water to irrigate lawns and plantings, designing new buildings with existing energy sources - natural sunlight and warmth, as well as cooling - in mind.

The new apartment complexes will provide housing for an expected influx of workers in the north Austin area.

At Dell’s headquarters in Austin, Texas, the goal is to be carbon neutral by the end of 2008. The 2.1 million square foot campus is already powered 100 percent by renewable energy sources: 40 percent landfill generated methane gas from Waste Management’s Austin Community Landfill gas to energy plant and 60 percent wind generated power from TXU Energy’s wind farm.

Dell is concentrating green efforts toward increasing the percentage of renewable energy use from 8 to 17 percent, replacing lighting and air conditioning with more energy efficient units, and using 100 percent renewable energy sources at their Idaho plant - 97 percent wind and 3 percent solar power.

Additional environmental efforts on Dell’s part include a Plant A Tree Program - in which they plant a tree for a small additional fee on every purchase made - a free computer recycling program, and products which are ranked among the most energy efficient lap- and desktops on the market today. The OptiPlex 755, Inspiron 531, Latitude D630, and the PowerEdge product line combine to save customers more than $2 billion and over 22 million tons of carbon dioxide.

These energy initiatives are expected to save Dell almost $2 million in annual operating costs and cut carbon dioxide emissions by nearly 12,000 tons per year. Renewable energy costs are also not as subjected to the whims of the market, thereby keeping the company’s energy budget under control.

Dell had announced their intention to go carbon neutral in September of 2007 and they are well on their way to meeting this goal by the end of 2008. As Paul Bell, president of Dell, says, “it’s time for our industry to take a lead role in creating a clean energy future.”

With all the excitement and innovation in building environmentally friendly facilities, even the US Army is getting into the act. Fort Hood aims to be the first Army base to construct a building to comply with the US Green Building Council’s Leadership in Energy and Environmental Design (LEED) rating system.

In order to meet LEED’s sustainable standards, buildings are required to use 30 percent less energy and 20 percent less water than a comparable but non-green building. The building must also meet standards set by the American Society of Heating, Refrigerating and Air Conditioning Engineers (ASHRAE) for improvements in indoor air quality.

Fort Hood has already instituted an Environmental Management System (EMS), which includes educating the installation’s solders, families, and other base personnel in reducing waste and energy use while improving the quality of life. In fact, Fort Hood has already introduced recycling and reuse strategies that have saved 3 million gallons of water and a million gallons of hazardous waste.

Everyone on base is expected to be responsible for complying with the standards enacted by the US Army Environmental Command (USAEC). The USAEC provides initiatives for Army installations’ efforts to “go green” through its Secretary of the Army Environmental Awards. The competition for this prestigious award is fierce and Fort Hood was among the 2007 winners for its improvements in the environmental quality on base.

The move toward environmentally friendly building is not only the result of global concerns about climate change and rising pollution levels, but a response to a directive from USAEC mandating all new vertical building construction to achieve at least a silver level LEED standard. The buildings must meet requirements set by LEED for sustainability, energy efficiency, and air quality. Fort Hood wants to be the first to build one.

There are plenty of reasons for you to choose green alternatives when building, not the least of which are the health of the planet and the health of you. But perhaps, so far, that hasn’t been enough to truly motivate you; perhaps you need a little more incentive. Well, the state of Texas has provided you with just that, an incentive - a tax incentive to be exact.

Property owners with solar, wind or biomass power sources installed on-site are eligible for a 100-percent property tax exemption on the appraised value of the device. Installers, along with the manufacturers and sellers, are eligible for a franchise tax exemption. Corporations with said devices can deduct the item’s cost or take ten-percent of it from the company’s income. With solar, wind or biomass power sources installed, companies are also eligible for economic development credits. And that’s just for power sources. There are other incentives for other eco-friendly additions.

The next time you decide to make a change to your home or company, think green and you’ll save green. Invest in alternate energy sources and power-saving materials., and take the natural route - the one that won’t deplete the Earth. You’ll be ensuring that you, your home and your wallet are sustained longer.

For more information on tax incentives in your area, call the Comptroller of Public Account, Tax Policy Division.