In this issue... Local Organizations Building
Affordability and Sustainability
This newsletter concludes our exploration of the financial aspects of building sustainably. The series aimed to show that while adding sustainable features to a project can add cost, there are financial benefits to these investments in the long run. It also showed
strategies homeowners, designers, builders and organizations can take to reduce project costs so that sustainability goals can be met within a budget.
This edition highlights the great work organizations in Flagstaff and Williams are doing to provide affordable housing that also has sustainability as a main goal. A big thank you to Eric Wolverton, Executive Director of Habitat for Humanity of Northern Arizona, Francis Mazza of Williams Area Habitat for Humanity, Devonna McLaughlin, Chief Executive Officer of Housing Solutions Northern Arizona (HSNA), Greg Pishkur, Construction Manager of AHC Construction, a subsidiary of HSNA, Duffie Westheimer of the Townsite Community Land Trust and Steve Dohse and Shelley Smithson of Sabé Homes for taking the time to share how their organizations improve the sustainability of their projects while maintaining a focus on affordability.
Housing Solutions Northern Arizona (HSNA)-
HSNA began as a grassroots community advocacy group, the Affordable Housing Coalition, in 1990. They have since expanded to offer several programs that help residents in Northern Arizona access homes they can afford. Their programs include: foreclosure prevention, credit counseling and a pre-purchase assistance program through which they have helped 375 families and individuals purchase their first home. This program is available to residents in Yavapai, Mohave and Coconino Counties and there is a specific one for City of Flagstaff employees that is within city limits. There are different sources of funding for this program (WISH, Community Development Block Grants, the City of Flagstaff) and the requirements for eligibility vary depending on the funding source.
HSNA also builds housing through their subsidiary, AHC Construction. Before the recession, mortgages were easier to qualify for and there was grant funding available to build homes that could then be sold to qualifying candidates at a below-market rate. Grants for that work have since dried up and now funding has shifted to development of affordable rental units. HSNA currently has 22 rental units in the community as well
as an additional 24 at Sharon Manor, which provides transitional housing for homeless victims of domestic violence. Three of HSNA's units are leased to Catholic Charities for housing formerly homeless families. Currently, all the organization's units are occupied, and the waiting list is also full at 150 families. An expansion of Sharon Manor that will add an additional 8 units is in the planning phase.
In all the work they do, HSNA strives to be thoughtful and conscientious, providing homes that are livable, durable and sustainable. The homes are a good size with an open floor plan, and provide all amenities including laundry facilities. Their homes are built to last, with durable materials and construction that incorporate the latest technologies. Due to financial constraints, HSNA focuses on cost-effective sustainability measures including building on infill lots and adding south glass and orienting the buildings to take advantage of passive solar design. They also install energy efficient appliances, low flow fixtures and above code insulation and windows. Greg Pishkur, the Construction Manager for AHC said he looks for small ways to save, such as spending time researching the most cost-effective efficient appliances. He noted that some appliances meet Energy Star efficiency criteria though they have not been through the certification process; he will purchase these units if they are cheaper than an Energy Star model.
AHC Construction also contracts with projects outside of HSNA. These projects are market rate and any profit from them goes back to HSNA. The O’Leary Suites project we recently certified at the Platinum level was built by AHC Construction.
Sabé Homes
Sustainable. Attainable. Beautiful. Empowering.
One of the foundational goals of Sabé Homes, a local development company, is the creation of more affordable housing options in Northern Arizona. Co-founder Steve Dohse was previously a general contractor, building several spec homes in the Christmas Tree Estates subdivision. He became increasingly concerned about the cost of housing in Flagstaff and the inability of the average resident to afford it. Steve teamed up with Shelley Smithson and Scott Moore, who brought an interest in sustainability to the firm. Sabé stands for Sustainable, Attainable, Beautiful and Empowering; the company combines the cost savings of manufactured housing with design principles, systems and features that increase their sustainability.
Manufactured housing has a reputation for being cheap. But what if you could retain the advantages of this type of housing while also improving on the durability, efficiency and aesthetics of the homes? The benefits of factory-built housing are significant. On average, the cost of a manufactured home is about half that of a site-built house of the
same size. Production building in the controlled environment of a factory means the units are built in about a fifth of the time and 1/3 less construction waste is produced per unit than for similar site-built projects. The Sabé team visited the Cavco™ Industries factory where several homes they have worked with have been built and were
impressed with the operation. As a contractor, Steve said that the uniformity of the process and controlled environment of the factory leads to a more uniform and tightly put-together product than what he saw in standard construction. Sabé starts with these benefits and builds on them, offering 2 x 6 framing, above-code insulation and windows, higher efficiency mechanical systems, passive solar features, Energy Star appliances and outdoor spaces like decks that provide more living space and add to the aesthetics of the projects. Sabé is beginning to work with a new company, Clayton Homes, that offers some Energy Star-certified home models, expanding Sabé Home’s sustainable home offerings.
Smaller size is another contributing factor to the affordability and sustainability of some of the units that Sabé offers. The (big) TINY house project the Sustainable Building Program just certified is a very livable 2-bedroom of only 587 square feet. This unit was designed by Sabé with the manufacturer, Cavco™ Industries, to include passive solar
aspects. Sabé sees this unit as a great stand-alone affordable unit to put on any lot, or to be used as an accessory dwelling unit, increasing density in neighborhoods and providing further affordable housing for family members or as a rental unit. Their retail business can provide these units complete with installation and a deck for $82,500.
Through its work with manufactured home companies, Sabé Homes is acting as an agent of change, pressing them to include greater sustainability in their units by showing that there is a growing market for homes that are both affordable as well as sustainable.
Townsite Community Land Trust (TCLT)
Promoting historic preservation and community investment with permanently affordable owner-occupied homes
Community Land Trusts are a method being utilized across the country for creating permanently affordable housing in areas where the cost of land is high. With this approach, land is held in trust, often by a nonprofit or governmental organization which retains title to the land but doesn't own the building(s) on the property. (Click here for more information on land trusts). This takes the cost of the land, and its market-driven value, out of the cost of home ownership.
Townsite Community Land Trust, a 501(c)(3) non-profit organization in Flagstaff, exclusively holds historic properties as a way of preserving this vital component of community character. It currently has two properties in Flagstaff. At purchase, buyers of their homes sign a legally binding Ground Lease allowing the homeowners exclusive use of the lot the house is on. This lease also gives TCLT the right to buy the home back, should it be sold, and to manage the resale in order to preserve the community investment.
For Duffie Westheimer, one of the founders of TCLT, the land trust model is not only a way to maintain affordability of the properties, it is a way to permanently preserve the small number of historic homes we have in our community. She sees maintaining historic buildings as key to preserving community character which in turn is central to a sense
of place. Historic places connect us to the history of our area, make our community distinct and help to give us a sense of identity. Community character is a public good that belongs to everyone; it makes sense that properties contributing to it are held in trust by a community organization, outside of market forces, so they are protected and locals can continue to afford them.
Sustainability is a third aspect of TCLT’s work. Their first project was the Four Square Historic Project, a historic renovation of four small 1920’s homes that were donated to the organization. The homes were completely restored and rehabilitated while retaining their historic features. These homes were awarded Advanced Plus certification by CCSBP for their wide range of sustainable features including small footprints, great community connectivity, improved insulation, high-efficiency mechanical systems, whole-building ventilation, low-VOC finishes and reclaimed fixtures in addition to reclamation of the buildings themselves. While some of these features added cost to the project, Duffie noted that during the renovation was the most cost-effective time to do that work. The added energy efficiency will lower utility bills contributing to long-term affordability for the owners.
In addition to taking the land out of the cost equation of owning the home, there are other ways TCLT's approach adds to affordability. They are committed to selling their homes at 25% below market value. Doing this removes the need for the new owner to have private mortgage insurance. The Community land trust also pays for the taxes on the land, and
the taxes on the home are 40% less because the homes are owner-occupied and are on the register at the State Historic Preservation Office. Additionally, TCLT selects home buyers through their own process so no realtor fees are added.
TCLT has begun work on renovating their second project and is always looking for other historic properties to include in their trust.
Habitat for Humanity-
Habitat for Humanity is a nonprofit organization that helps families build or improve places to call home.
Habitat for Humanity (HFH) was founded in 1976. While President Jimmy Carter and his wife Rosalynn have brought notoriety to the organization, it was actually founded by another couple, Millard and Linda Fuller. HFH has grown to an international organization that operates in over 1400 communities in 70 countries. Habitat homeowners help build their own homes with the help of volunteers and pay an affordable mortgage.
Williams Area Habitat for Humanity was founded in 1996 and has built 5 homes since then. The construction of its first two homes was achieved exclusively through donations. As it takes time to raise donations, they are now taking a different approach. Their current model is to utilize the USDA 502 Rural Residential Direct Loan Program for the funding, with Williams Area HFH working as the developer. This loan program helps low-
and very-low income families in federally identified rural areas obtain decent housing. The loan is a zero-down-payment, 33-38 year loan for which the interest rate is set based on a family’s income. HFH selects families that are qualified borrowers through this program and then acts as the developer of their home project. There are a number of cost saving strategies that HFH implements
in construction. First, the family participates in building their home. This reduces the total cost while providing a sense of ownership and greater knowledge of the home. Families with two adults must complete at least $500 of "sweat equity." As a nonprofit, the organization is also able to achieve a significant cost savings through donations. They work with local contractors who will sometimes donate their labor or offer it at a reduced cost. Companies like Home Depot also donate materials, fixtures and appliances. On all three of the last builds, Williams Area Habitat was able to get free paint and appliances through a partnership between the international HFH and companies like Whirlpool and Valspar. Volunteers are the final piece in reducing the cost of Williams Area HFH homes to up to 40% less than market value. Habitat projects involve anyone who wants to help, from skilled craftsmen to beginners who are eager to learn.
Habitat for Humanity strives to build homes that are energy-efficient, healthy and sustainable. The international organization has developed a “Sustainable Construction Standards Manual” which states that Habitat affiliates are required to build to the minimum energy, water, materials and healthy indoor air quality and durability standards that are detailed in the manual. Williams Area HFH has consistently been awarded Intermediate certification through CCSBP for its moderate-sized homes with sustainable features such as spray foam insulation in the lid, rigid insulation on the exterior, high-efficiency mechanical systems and above-code air sealing and windows.
Habitat for Humanity of Northern Arizona
Eric Wolverton, Executive Director of Habitat for Humanity of Northern Arizona, likes to say that Habitat provides “a hand up rather than a hand out.” As with their Williams counterpart, HFH of Northern Arizona partners with homeowners in building their homes with the help of volunteers when possible. Where HFH of Northern Arizona differs, is in how they approach funding their projects.
In Flagstaff, HFH Northern Arizona has partnered with the City of Flagstaff’s Community Land Trust Program on the Izabel Homes Project. The Flagstaff Community Land Trust holds the land for this project in trust to preserve the affordability of the homes on it. As with the Townsite Community
Land Trust, the land has a renewable 99-year lease, and only the homes can be bought and sold, thereby taking the cost of the land out of the cost of ownership. Eric sees no drawbacks to this model. Only two of the seventeen homes that have been built have been resold by the original owner. Land trusts work well when a home buyer is looking to stay, rather than to make a profit on their home.
When a home is sold by an Izabel Project homeowner, they receive 25% of any increased appraised value from the sale of the home. Homes in the development are three bedroom/2 bathroom and the typical mortgage payment is $750-800. HFH Northern Arizona acts as the lending bank for these projects and provides mortgages at zero percent interest. One of the goals of Habitat NAZ is to build and finance enough homes such that the mortgage payments coming in can be used to fund further construction projects.
HFH Northern Arizona strives to build safe, comfortable, reliable housing that is as sustainable as possible. They partner with contractors who share in this vision. Building to a higher-than-minimum standard with a greater upfront investment gives the homeowner a more durable and affordable product in the long term. The last Izabel Homes Project CCSBP certified achieved Advanced certification. Its sustainable features include the Zip System, an integral sheathing and air barrier system, spray foam in the walls and lid, a 96%-efficient furnace, performance testing, above-code windows and low flow fixtures.
Another key part of the funding strategy for HFH Northern Arizona is the ReStore. The ReStore, located at 2016 N. Fourth St., is a great resource for recycling in Flagstaff and it helps support Habitat’s operations. The store accepts donations of new and gently used furniture, large appliances and building tools and materials and then sells them to the public at a fraction of what the item would
cost new. The proceeds from the store go to support Habitat operations. Their current goal is to meet all administrative costs for the affiliate through proceeds from the store, and they are close to reaching it! Join their Smart Shopper newsletter for updates on available ReStore items.
Housing Solutions Northern Arizona, Townsite Community Land Trust, Williams Area Habitat for Humanity and Habitat for Humanity Northern Arizona are all nonprofit organizations; donations to them are tax deductible.
Announcements
2019 Season Sunday Market
May 5-October 20 8am-noon
211 W Aspen Ave
City Hall Parking Lot
Summer Plant Sale
July 13th
Summer is our favorite time of year in Flagstaff! The summer plant sale includes hundreds of native plants (grown by us) for purchase, live music, food for sale, garden tours and the beautiful Flagstaff weather. ENTRY IS FREE TO ALL! Members preview 9am-11am | General public 11am-3pm.
Science Saturday
It's a Bug Life
July 6th, 9 am - 1 pm
Join Willow Bend and NAU Merriam Powell Center for Environmental Research for a creepy crawly Science Saturday.
We will have hundreds of arthropod samples on display, including butterflies and native bees. Design your own super bug, view insects under a microscope, learn about native plants that support pollinators, and more!
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