Photo courtesy of The Andrew

New York State has a new ‘greenest’ multifamily building, but don’t bother to go to the USGBC website for details.  The Andrew, located in Rego Park, Queens, is a 50-unit rental building developed by the Bluestone Organization (BO). A decision was made by the developers to skip the USGBC loop and seek certification solely from the New York States Energy Research Development Agency (NYSERDA).  

Reasons given for the snub ranged from the expense involved to dissatisfaction with the growing perception that LEED certified buildings do not always perform as certified after the ribbon cutting. Although the developer had sought other LEED certifications on prior projects, it may also be that NYSERDA’s high standards are so well-respected a second certification was unnecessary.   

In the USGBC LEED program’s defense, on-going operations will always be the responsibility of the owner/operator.  If management elects not to follow the systems’ maintenance recommendations,  even the best design and construction practices can become irrelevant. Certainly we can acknowledge that the USGBC birthed the modern green certification movement and deserves the bulk of the credit for pushing these sustainable values into the mainstream. 

On the other hand, critics hold the U.S. Green Building Council has relied heavily on outside experts and volunteers and may lack sufficient safeguards in its process. To some this may seem like blasphemy until one learns why the Andrew multifamiily project set a new bar.  A recent post in yournabe.com quoted NYSERDA’s Luke Falk as stating: 

“This building [the Andrew] is about 25 times more efficient than code.” 

To evaluate this jaw-dropper, it is important to consider that ‘code’ building is actually the lowest legal standard of construction. In fact, some local building codes have only been in effect since the late 1960’s. Their purpose was to set the lowest building  standard at which an occupant could expect reasonable health and safety. In essence, ’code’ means that under normal circumstances the walls and the roof won’t collapse or the air quality won’t injure those occupying the structure. Earthquake, ventilation and flood standards are still in the process of being developed and incorporated into many local building codes, particularly with regard to remodeling existing construction.   

The reason all this matters is that standard building code is what we use to compare new building performance.  Because of the perceived benefit to the public, multifamily buildings are in a different category from single-family housing and subject to greater building department scrutiny, particularly in major cities. 

According to Bluestone Organization, after a year of operation, the Andrew’s average annual heating costs per unit were below $200.  Specializing in the multifamily Affordable Housing category, developer Lou Bluestone has been incorporating green features into his buildings for over 11 years.  He focuses on the core and the shell and ventilation that preserves and enhances indoor environmental quality. One innovation is that each apartment is air sealed and ventilated separately rather than through a central building ventilation system. 

Bluestone is adventurous in design and has been willing to experiment and the innovation is paying off.  A sampling of construction materials and feature choices in this project are: 

• 5 kw micro-cogeneration units for heating hot water and common area electricity 
• Low and no-VOC materials for better indoor air quality
• Panelized wall systems and prefabricated bathroom modules (to speed construction)
• Insulated concrete forms (ICF) to construct the wall systems (super insulated walls with almost no thermal breaks)

ICF construction is generally used in smaller complexes under three stories, but engineers credit the use with creating most of the building’s high efficiency. Other Bluestone projects incorporate green roofs and landscaped play areas with the latest slated for a 10,000 sq.ft. rooftop greenhouse. It will be used for growing hydroponically produced fruits and vegetables as an urban farm. 

As New York City has the most concentrated building density of any U.S. City, it is not surprising that it created its own green building certification program. NYSERDA co-partners with Steven Winter Associates, a top green engineering consulting firm which maintains a pristine reputation in the field.  The agency manages the review program and Steven Winter monitors compliance, which combined provide a strong check and balance process that appears to attract sustainable developers. 

There are currently ten multi-family buildings in the 4-year-old program, but the Andrew is by far the most energy efficient per the certification’s results. Forty of these units are categorized as affordable housing in Queens, New York and residents must qualify based on income. Households earning up to 80 percent of the area median income ($61,440 for a family of four in 2010) can rent a studio for $1275, a one-bedroom for $1525 and a two bedroom for $1995. Ten units are reserved at market rate for families earning more than 130 percent of the area median income, which was $99,840 in 2010. The property is located at 65-54 Austin Street in the Rego Park neighborhood of Queens, New York City, New York. 

New York City’s Department of Housing Preservation and Development (HPD) also has new procedures for developers with regard to HPD funds and green affordable  housing and guarantees. Beginning in 2011, any HPD-related projects will have to be certified by Enterprise Green Communities through its on-line site. HPD and the Community Preservation Corporation (CPC) also jointly launched NYC Green House, an online resource guide for multifamily property owners that assists those interested in going green.  HPD Commissioner Rafael E. Cestero stated: 

“Our data proves that rising utility costs contribute heavily to the rise in the cost of living and renting in New York City. This new educational program will help building owners identify the measures they can take to ensure their buildings operate more efficiently, keeping costs down, reducing their overhead and keeping their buildings more affordable for the people that live in them. And by going greener and following the simple advice we have put up on the website and in the collateral educational material, owners will also be helping the environment.” 

Although apartment building stagnated temporarily during the financial crisis, large owner/developers are back in. Bloomberg BusinessWeek recently reported that: 

“Starts on multifamily homes, including townhouses and apartments, jumped 78 percent in January from the previous month to an annual pace of 183,000, the highest since February 2009, the Commerce Department said Feb. 16. Work on single-family houses decreased 1 percent.” 

As multifamily has continued to out perform most other aspects of the economy with capitalization rates ranging from 4 to 5 percent for Class A buildings, the biggest investors are again choosing construction over the purchase of existing buildings. As building purchase prices will reflect the improved profitability, concerns over the risks of development and lease-up are diminished. Another appealing benefit of new construction is the ability to reduce and even eliminate utility costs with innovative green construction techniques like those employed at New Haven’s 360 State Street. Developer Bruce Becker installed a 400 kW fuel cell in his mixed use development that produces all the energy needed for 500 units in its residential tower. 

It is likely there will be many new buildings started in the hottest markets, which include Washington, D.C., San Francisco, Los Angeles and most recently Seattle. With the increasing demand for rental housing and multifamily operations again enjoying profitability, concerns about over-building are not likely to cloud sector attitudes for at least five to seven years. 

Articles of Interest: 

UTC’s Fuel Cell Miracle Breakthrough 

Living the Platinum Dream: 360 State Street 

Investing in Green Property Improvements