The sandy-colored doors in Tom Guerin’s office are made from old wooden beams from an abandoned warehouse in New Orleans. Across town, Guerin’s building a home that uses a restored lantern from a street corner in London.
He uses low-emission paints in the homes that he builds, and mixes excess paints together to form a neutral color that he donates to other groups. He uses porous concrete so water can filter into the ground, and “smart” meters are sophisticated enough to detect the amount of energy used by a toaster.
And that’s not the half of it.
Guerin, managing partner of Siegen 7 Developments, is on a mission to make homes that are gentle on the earth. In building homes that are sustainable and energy-efficient, he is part of Baton Rouge’s small, but growing, green residential movement. And while saving the world is rarely the intent of prospective homebuyers, saving money on utility bills is being used by green builders, who want to stand out in a slow-moving market.
“Our builders are trying to attract people with green, energy-efficient and safe practices,” says Lynda Evans, president of the Capital Region Builders Association. “Energy efficiency is such a huge thing right now, and it’s something everyone wants.”
The market continues to favor buyers. And with foreclosures, an abundance of inventory and low prices, it’s tough to stand out. It’s especially difficult for people who build houses above $250,000. But Guerin and a growing segment are marketing themselves?in an untapped market of green builders.
Is it working? Guerin says he feels blessed that he has never felt the sting of the economic downturn. He’s got 19 projects on the table, 75% of which will be informed by green practices.
For certain, there’s a learning curve for builders and buyers, not to mention mortgage lenders and appraisers. “Going green” is such a popular phrase that it’s begun to lose clarity and impact. Consumers apply the concept to their recycling programs, grocery bags and transportation. While many commercial and public buildings already are adhering to the well-known LEED standards, Louisiana lags in green residential building.
“You see more and more of the LEED-certified stuff being put out for bid—just about 50% of stuff we see now is in that direction,” says Brian Monk, Block Builders’ operations manager. “I’m not sure when or where, but before too long, everything that’s government-financed will have to be green- or LEED-certified.”
There are a handful of different rankings, but the most accepted residential standard has become green certification from the National Association of Home Builders, which, like LEED, uses bronze, silver and gold distinctions. The certification awards points for factors that include energy-efficient appliances and HVAC units, insulation, use of recycled materials, construction waste, positioning of the home relative to the sun and water usage.
“There’s also an emerald standard, but you don’t hear much about it because it’s basically unattainable unless you’re very, very wealthy,” says Mike Jordan, a home inspector and green verifier.
The only house in the Capital Region with an official green certification is the Children’s Miracle Mansion, which boasts a silver rating and was raffled for charity. That house became Louisiana’s 10th to receive the independent verification; the other certified homes primarily are in New Orleans.
“You’ll see several start jumping on the bandwagon soon,” Jordan says. “But it’s been a very slow process in our market to get it rolling, whereas in other parts of the country they are doing this by the hundreds.”
Jordan says some homebuilders have been trending toward green principles, but haven’t sought the certification because of a lack of education. But, he suggests, they learn more about certification because it can be a powerful marketing tool.
Roy Domangue agrees. “Consumers [now] are a lot more educated,” he says. “They come into a house and ask to see the electricity bills for the last 18 months. They’re looking for someone who can build on that level, and when consumers start asking for it more, then builders will really start to come around.”
Domangue, who heads Wooden Creations, is the builder behind LSU AgCenter’s acclaimed green facility, LaHouse. He hopes to change perceptions with his ambitious project called “Going Up, Going Green,” which consists of three adjacent homes he’s building in Gonzales, all 1,912 square feet and with the same blueprints. One house will be bronze, one will be silver and one will be gold; the current building code is below bronze level.
The homes will be completed by September, but much of the interior will be left unfinished so other homebuilders and industry specialists can tour the homes and see the different aspects of each house. The homes won’t be put on the market until fall 2011, after they have been displayed and studied. The hope is that more builders will pick up some of the principles, and lenders and appraisers will become more familiar with the differences to promote more accurate valuation.
“We’re going to showcase three levels of cabinets, three levels of countertops, three kinds of windows and air conditioners,” Jordan says.
The homes, he says, ultimately will provide a controlled environment in which to compare electricity bills; many builders speculate a silver-certified house can cut about 25% of usage. He estimates the silver-certified home costs about $4,000 more than the bronze, and the gold-certified home costs about $6,000 more than the silver.
The price point can be an issue for many buyers, who correctly associate green building with an increase in cost. But many ingredients of a green-certified house offer thousands of dollars of tax rebates for consumers and even adjusted mortgage loans, not to mention the savings from lower utility bills. The Children’s Miracle Mansion’s first electricity bill was $73, which is more than impressive for a 2,300-square-foot home that had hundreds of visitors during its tour, Jordan says.
Domangue says 2010 has been one of his busiest years. In the past, he’s averaged 13 to 15 homes per year, and utilized one framing crew. This year, however, his workload required the addition of a second framing crew, and he expects work to increase by 50%.
But it’s not just about gaining a competitive edge, Domangue says; it’s about preparing for the inevitable. If federal cap-and-trade legislation receives approval, homebuilding regulations could be adjusted so that many of the silver-certification requirements are written into the code. That could be a tough adjustment for many builders whose work currently falls below those standards.
“A lot of old-school builders think this is just a phase and not worth their time,” Guerin says. “I just don’t think they understand the passion and purpose behind the intent, which is to pay attention to our carbon footprint on the planet. Years ago, it was just about improved insulation or different kinds of windows. But this isn’t just a piece now. This is about the whole product.”
