This newsletter continues our exploration of the financial aspects of building sustainably by highlighting strategies that owners of projects going through the Sustainable Building Program have employed to reduce
the cost of their new homes. The following case studies show approaches such as: building smaller, doing work yourself, joining a buying club and being your own general contractor as ways of cutting costs to meet budgetary constraints or to allow for more funding to go toward sustainability features.
Home Costs in Flagstaff
As has been the case for years, the current cost of housing in our community has surpassed the average citizen's ability to afford it. This can be shown by looking at Census figures for cost of housing and income in Flagstaff.
A general rule of thumb put forth by financial experts is that housing expenses should constitute no more than 30% of a household's income. With a median value of owner-occupied housing in Flagstaff of $296,700 and therefore a median mortgage of about $1830/month, the income necessary for buying that median home if the rule of thumb is followed is $6100/month. Contrast this with the actual median household income of $4313/month and you can see why affordable housing has become such an issue in our area. One of the factors impacting cost of homes is that only 45.4% of housing in Flagstaff is owner-occupied, the rest being rental units or second homes, making the pool of housing for Flagstaff residents, smaller.
Federal and state housing assistance is available to those making 80% or less of median income, which is calculated out to be $35,200 for a single person and $50,250 for a family of 4. We will explore how some affordable housing organizations in Flagstaff are implementing strategic sustainability measures in their new builds to improve affordability in the long run while staying within budget, in an upcoming newsletter.
With affordability issues being what they are, homeowners have gotten creative to meet their housing needs while staying within their budgets and still meeting their sustainability goals.
Case Study 1- Lucky Dragons Ranch
This project combined a number of strategies to keep it affordable. First, it is built on land near Valle that is less costly than land in and around Flagstaff. Second, it is small, only 500 sf. Finally the owner built it herself with help from from friends and family and a contractor when necessary.
When Veronica Gocs set out to build her home near Valle, her primary goals were sustainability and not to have a mortgage when she was finished. She didn't have any construction experience, but still planned to build most of it herself. She already owned the land near Valle, which was much more affordable ($45k/40 acres) than parcels closer to town. After exploring different types of construction, she had decided on strawbale because it lent itself to owner-builder construction. She took a workshop in this construction approach, and did a lot of research. She also hired Ed Dunn of Solar Design and Construction to design the structure, bringing his strawbale expertise into the project.
If you choose to build your own home, Veronica has these recommendations to share based on her experience:
Start planning five years before you begin construction and start saving at that time as well.
Double your cost estimate.
Budget for mistakes.
Get in shape!
Learn about code.
Think ahead as many steps as you can.
Network with neighbors, owner-builders and with the Sustainable Building Program. She was able to borrow tools this way, find help for particular tasks, as well as find salvaged materials.
Figure out cash flow. She said that Home Depot's credit card was very helpful; she was able to use it in a way that she was always able to make payments on purchases before she had to pay any interest.
Know where to get loans in the event that you need them.
When she began the project, she was just planning for space for herself so the footprint of the home is small, just 500 square feet.: a main room, kitchen and bathroom. Now that space needs to accommodate two, due to her recent marriage, but that seems to be working out just fine.
The total cost of this project was $80,000 including a 750 square foot shed, but not including the land. She didn't work for a year, except on the project. Since the project is off-grid, the infrastructure is a cost to consider. The solar PV and wastewater systems cost $18,000. While this cost is a large percent of the total budget, she is quick to point out that they now have no utility bills at all. No mortgage and no utility bills means they don't have to work as much so there doesn't need to be a commute to Flagstaff every day of the week. And they saved enough in the process that they're planning a trip to Italy when they're finished!
Case Study 2 - Baderville Small House
The approach Claudine Taillac took with building her new home, the Baderville Small House, was to hire a builder, but to build small and simple, a quality over quantity approach. She wanted the home to reflect her value system which weighted sustainability over material things.
She learned from her sister that it is possible to live well in a small house and when she talked to Ian Hublitz of Green Mountain Construction about building small, he was very supportive of the idea. She said they both were not building to impress anyone. Initially, she planned to build a 1100 sf home, but in working with Ian they determined that if she brought the size down to 800 square feet or less, she would be able to afford the solar PV system she wanted. The home ended up with a 720-square foot footprint and 150 square feet of loft space. The addition of the loft to the floor plan gave her a space to accommodate guests. She's had up to 5 guests stay with her, with three in the loft and two on a foldout couch in the living area.
Claudine wanted to heat with wood, and with the house as small as it is, the addition of a mini-split heat pump powered by the solar PV was enough to provide the needed heat as well as meet code.
The most cost-effective approach to the design was to make the building a simple rectangle, so they made it look more appealing by adding a porch and deck with details like corbels.They chose the dimensions for the home with the standard dimensions of lumber in mind so there would be less waste.
Another point Claudine made was that she has a very active lifestyle with little time for cleaning. With the small size it takes a lot less time to keep her home clean, especially with her Rumba robot that takes care of the floors!
Building small and simple on this project allowed for:
installation of a more durable metal roof
installation of a solar PV system that provides for 100% of the electrical needs
nicer finishes, including a hardwood floor
higher quality mechanical systems like the high-efficiency on-demand electric boiler and mini-split
Claudine is very happy with her new home and the choices she made. As the property has a well, she has no utility bills, with the exception of filling the small propane tank used for the gas stove every 2 or 3 years.
Case Study 3- The Eccleston Residence
While the total cost of the Ecclestons' home might put it out of reach of many Flagstaff residents, the project does showcase a variety of cost-saving methods that allowed for more sustainable features to be installed.
The primary cost-savings strategy the Ecclestons' used was to be their own general contractor for the project. Bobby Eccleston said that the cost of building his home was 24.9% less than what it appraised for, coming in at a savings almost exactly the 25% given by the book How to Be Your Own House Contractor .
Other tips they have for increased cost savings are:
Take advantage of incentives. Bobby said he was able to afford solar PV based on the tax credit he received for his solar thermal system the previous year. This tax credit can be received for any system that brings in solar energy- plumbing, radiant heat, thermal mass, or tanks. He got a $1000 state tax credit and 30% federal one that he carried over to apply to his following year's taxes.
Another tip Bobby had was in finding financing, which can be difficult for owner builders. He recommended working with Owner Builder Loans LLC. Not only did they provide the financing, but also tools for the owner-builder including the above-mentioned book, a checklist for the process and budgeting for each of the phases with corresponding inspections. Construction loan interest rates are higher, so it is important to be organized and complete the project quickly for the best affordability.
Living in an RV during construction also helped them achieve significant savings. They had to get approval to do this through the Home Owners Association for the subdivision, and the City of Flagstaff codes allowed for it. For this purpose, they purchased a 1973 RV which they resold when the home was complete. Not only did they save on rent by taking this approach, it was also helpful to be on site to oversee the project.
Though it is not for everyone, Bobby Eccleston said that joining the buying club, Direct Buy, also helped them achieve significant savings. Specific items like flooring, plumbing fixtures and lighting were available through the buying club at about a 30% discount.
Along the lines of the buying club, having an account with a local building supplier like HomCo, also brings significant savings. Developing relationships with the supplier can be helpful when you are looking for specific materials or for being made aware of discounted materials.
Savings the Ecclestons achieved through these measures allowed them to have more funds available for the many sustainable features they incorporated in their project including solar thermal and PV, rainwater harvesting and a greywater system,
Join Willow Bend for a Science Saturday that is all about renewable energy! Design and build your own wind turbine, play with solar powered devices, create "sun" art, generate your own energy with our "power" bike, enjoy delicious solar oven s'mores, and more!
This event is FREE and open to the public. No need to RSVP, you are welcome to join anytime between 9am-1pm.
2019 Flagstaff Youth Climate Summit
Are you involved in sustainability initiatives and climate action in your neighborhood, school, or community group? Are you interested in getting involved?
Get out your calendars! The 2nd Annual Flagstaff Youth Climate Summit will be held on April 16, 2019 at The Arboretum at Flagstaff. The Summit has expanded into a collaborative event with the Arboretum and Willow Bend Environmental Education Center and will feature three challenges: the Climate Action Challenge, the KidWind Challenge, and the Solar Structure Challenge. Each challenge is open to youth in grades 4-12 who form teams of 2-5 individuals and have an adult mentor. Teams can include youth from public schools, private schools, homeschool groups, afterschool groups, and community organizations (recreation or neighborhood centers, Boys and Girls Club, Big Brothers Big Sisters, Scout troops, etc). All teams who attend the Summit will compete for prizes and awards, attend workshops, and learn about climate action and sustainability in Flagstaff.
Space for the Summit is limited so sign your team up now! For more information see the website.
Renewable Energy
March 1st, 1 - 2 pm
Join Willow Bend on a walk through of the Materials Recovery Facility (Recycling Center) to learn more about recycling. The tour is offered every first Friday of the month (except holidays) on Earth Day, during the Flagstaff Science Festival, or by appointment. Meet us at the facility at 1800 E. Butler Ave, Flagstaff, AZ 86001 (at the northeast corner of Butler and Babbitt) at 1pm on tour days. Tour lasts 1 hour. Thanks to support from the City of Flagstaff, we offer these public MRF tours!
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