Santa Monica Property Blog

LOS ANGELES REAL ESTATE SNAPSHOT – SEPTEMBER 2010

By Jodi Summers

So, do you want the good news or the band news when it comes to the local residential housing market? Start with the bad, the end to the $8,000 federal tax credit incentive for buying home has ended, and hopefully, anyone who wanted in on the tax discounts got a chance to take advantage of them. That’s why when the credit expired; home sales in Southern California (houses, townhomes and condominiums) fell by 21.4% compared with the previous year. The good news? The median sales price for a home in Los Angeles County increased by +5.6%.

“The fallout from the first-time home-buyers credit continues, but in a perverse way, this is a good thing,” Dan Greenhaus, chief economic strategist for Miller Tabak + Co., notes. “Investors are getting their first ‘organic’ look at the housing market in nearly one year.”

People are buying in the good areas. SoCal zip codes in the top one-third of the housing market (obviously Santa Monica falls into that group); accounted for 30.8% of existing single-family house sales last month, up from 30.4% in June and 27.7% a year ago. Over the last decade those higher-end areas have contributed a monthly average of 33.3% of regional sales. Their contribution to overall sales hit a low of 21.0% in January 2009.

High-end sales would be stronger if adjustable-rate mortgages (ARMs) and “jumbo” loans were easier to obtain. Adjustable rate mortgages have become much more difficult to obtain the credit crunch hit three years ago, and since fixed rate mortgages have come down so impressively.

Last month ARMs represented 6.1% of all purchase loans, down from 6.7% in June but up from 3.4% in July 2009. Over the past decade, a monthly average of nearly 40% of all home purchase loans have been ARMs.

Overall, a total of 18,946 new and resale homes were sold in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties in July. That was down 20.6% from 23,871 in June, and down 21.4% from 24,104 for July 2009, according to MDA DataQuick of San Diego.

“It appears some of the sales that normally would have occurred in July were instead tugged into June or even May as buyers tried to take advantage of the expiring tax credits. Some of last month’s underlying technical numbers were largely flat, indicating that the market is treading water,” said John Walsh, MDA DataQuick president.

People are all in a panic because the 21.4% sales drop for residential real estate reeks of foreboding. Yes, this was the steepest year-over-year decline for Southland sales since March 2008, when sales fell 41.4%, but, let’s put it in perspective, the market lost momentum after the federal tax credit incentive expired and we are being pelted with ominous news about an unsteady economic recovery, if you were buying a home and haven’t yet, what’s the hurry? Join the legions of prospective buyers and wait-and-see, while prices continue their upward cycle.

“We do expect some sideways buying and selling to kick in, especially among homeowners who have owned for more than seven years and didn’t take out equity during the frenzy,” concludes Walsh.” You may have to ‘discount’ your self-perceived home value, but if the person you’re buying from has to do the same thing, it doesn’t matter. And you may get a spectacularly low mortgage rate.”

We’re working our way into an election, things will get better, it’s on the political agenda, and that’s why those are the sidelines have decided to wait and see.

We’re here to help you with industrial properties. Please contact Jodi Summers - jodi@jodisummers.com or 310.392.1211, and let us move forward together.

**

http://www.laedc.org/eedge/index.html#3

http://www.dqnews.com/Articles/2010/News/California/Southern-CA/RRSCA100817.aspx

http://latimesblogs.latimes.com/money_co/2010/08/sales-.html

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http://www.flickr.com/photos/jodisummers/4817707380/in/set-72157624556255322/

http://www.socalmultiunitrealestateblog.com/?p=715

GLOBAL DEMOGRAPHICS ARE SHAPING REAL ESTATE TRENDS

GLOBAL DEMOGRAPHICS ARE SHAPING REAL ESTATE TRENDS

Edited by Jodi Summers

Global Demographics: Shaping Real Estate’s Future offers recent research from the Urban Land Institute about the effect of global demographic change on real estate.

“Over the next 20 years, demographic megatrends — and their variations by continent — present the real estate industry with tremendous opportunity to not only grow, but to better serve the people real estate is designed for,” said David Jacobstein, senior advisor to co-sponsor Deloitte LLP ’s Real Estate practice. “Mature economies — especially growing ones — offer attractive investment opportunities, but emerging markets require vast quantities of infrastructure, as well as residential, retail, office, and hotel properties to support their burgeoning populations.”

Findings from the report include:

Aging

The aging of the world’s population is arguably the single most dramatic demographic trend today, with three key trends emerging:

v In 2006, almost 500 million people worldwide were 65 and older.

v By 2030, individuals 65 and older are projected to increase to 1 billion — equaling one out of every eight people on earth.

v The most rapid increases in the 65-and-older population are occurring in developing countries, which will see a jump of 140 percent by 2030.

Real estate implications

v Retirement housing is the primary real estate beneficiary of global aging, with the U.S. senior housing industry set to benefit from the opportunity to produce new products.

v Rapid consolidation of senior housing operators will result in more professional and cost-effective management.

v Investor interest will continue to grow because economic cycles have little effect on dementia and nursing care facilities.

v There is increased demand for affordable senior housing and senior housing options in ethnic communities.

Urbanization

As of 2007, 3.3 billion people — half of the world’s population — live in urban areas. With that number expected to increase to 60 percent by 2030, five key trends are emerging:

v One billion people live in slums, with 90 percent of this population occurring in developing countries.

v At least 133 million city dwellers in the developing world lack durable housing.

v Twenty percent of urban dwellers in emerging nations are overcrowded, with more than three people per bedroom.

v Only two-thirds of the world’s urban population has access to tap water, with only 46 percent having access in their homes.

v More than 25 percent of the world’s urban population lacks adequate sanitation.

Real estate implications of these urbanization trends include:

v Investing in infrastructure — whether new or established — is essential to the viability of long-term commercial real estate projects. Privatization of infrastructure through public/private partnerships with investment funds are becoming increasingly important, with notable examples occurring in the United States, Spain and France.

v Better land use controls should be implemented to prevent high-density, informal communities from developing and reduce outward urban sprawl because both trends present difficulties to residents in terms of infrastructure, safety and lifestyle.

v There is increased demand for housing and retail as a result of a growing workforce.

v In stagnant or shrinking populations, new construction must be viewed as replacement properties — even if that entails older building demolition to maintain vacancy rates — as has occurred in continental Europe.

v Emerging markets can leap from traditional, organic models to contemporary multi-use projects and residential communities if ground level infrastructure is established.

v The lack of mortgage availability in the emerging market is the greatest limitation on new development.

http://www.reuters.com/article/pressRelease/idUS187513+12-Jun-2008+BW2008061

http://www.topnews.in/health/regions/united-kingdom?page=26

http://totallycebu.com/aging-lecture

http://www.flickr.com/photos/lwr/165513789/

LOS ANGELES COUNTY PROFILE

Edited by Jodi Summers

For all of you factoid junkies, here is some really interesting information about Los Angeles County compiled by the Los Angeles Economic Development Corporation-

• Los Angeles County (Los Angeles-Long Beach-Glendale Metro Division) covers 4,084 square miles, and had a January 1, 2008 population of 10,363,800 residents; an increase of 844,500 persons since 2000. The County’s population would make it the eighth largest state in the nation, just behind Ohio and ahead of Michigan. (California Department of Finance)

• A quick demographic profile of Los Angeles County indicates that: 47.3% of the population is Hispanic, 28.8% white non-Hispanic, 14.4% Asian-Pacific Islander, and 9.6% black. About 75% of the population has a high school diploma or more, while 28% has a bachelor’s degree or more. (American Community Survey 2007)

• Los Angeles County has a diverse economic base (based on the concept of “industry clusters”). Measured by 2007 employment, the leading industries are: 1.) tourism and hospitality with 456,000 workers; 2.) professional and business services with 288,000 workers; 3.) direct international trade with 281,000 workers; 4.) entertainment (motion picture/TV production) with 244,000 workers; and 5.) wholesale trade and logistics with 199,000 workers.

• The “new economy” of Los Angeles County is largely technology driven. This cluster includes bio-medical, digital information technology, and environmental technology, all of which build on the vibrant technological research capabilities of the County. Another key driver is creativity. There is a growing fusion between technology and creativity such as in video games and film production.

• Los Angeles is the largest manufacturing center in the U.S., employing 376,500 workers in 2007. The most important sectors are: apparel with 56,700 workers; fabricated metals with 49,100 workers; food products with 43,000 workers; aerospace products & parts with 38,100 workers; and search, detection & navigation products with 26,987 workers.

• International trade is a major driver of the area’s economy. The Los Angeles Customs District— which includes the ports of Long Beach and Los Angeles, Port Hueneme, and Los Angeles International Airport—is the nation’s largest. The value of two-way trade passing through Los Angeles totaled $357.3 billion in 2008, compared with $353.4 billion for second-place New York. Major investments are under way to expand the ports, LAX airport and related transportation facilities in Los Angeles County.

• Higher and specialized education is a strength of Los Angeles County, with 112 public and private colleges and universities. These range from UCLA, USC, California Institute of Technology, and the Claremont Colleges to top-rated specialized institutions, like the California Institute for the Arts, the Art Center College of Design, the Fashion Institute of Design and Merchandising, and the Otis College of Art. Medical education is also a strong point; Los Angeles has two each of medical schools, dental schools, and eye institutes, plus specialized research and treatment facilities like the City of Hope. The County’s community colleges offer many innovative programs, including culinary arts, fashion design, multimedia, and computer assisted design and manufacturing.

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http://www.laedc.org/reports/LA%20County%20Profile.pdf

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SANTA MONICA REAL ESTATE SNAPSHOT – AUGUST 2010

By Jodi Summers

First the big picture, then Santa Monica. The Los Angeles Economic Development Corporation reports that home sales in Southern California (houses, townhomes and condominiums) rose in June to 23,871 units (new and resale homes), edging up by +2.6% compared to June of 2009. On a month-over basis, June sales rose by +7.2% and were the strongest since July 2009 when 24,104 homes were sold.

Analyzing two years of supply and demand in Santa Monica, Clarus Market Metrics calculates that comparing July 2008 vs. July 2010, the number of for sale properties is up 7%, while the number of sold properties is up 19%.

In June, the median price in Los Angeles County increased by +4.7% to $335,000 and sales ticked up by +2.8%.

In Santa Monica, contrasting July 2008 vs. July 2010, the median price of for sale properties is down 10% to $ 899,000 and the median price of sold properties is up 5% to $942,000.

Southern California’s housing market is still troubled, but compared with last year, there has been a great deal of improvement. Prices and sales have been trending up the last several months, but much of that may be attributable to investors and government support. Investors accounted for 19.7% of the homes sold in June.

Locally, the strengthening market means the months’ supply of inventory is down to 4.6 months from 5 months two years ago. (Experts say 3.7 months is parity.)

“It is clear that investors are back in the market,” notes Robert Leveen, a senior vice president of Lee & Associates investment services group. “There is significant activity around any REO property. Buyers assume that the lender is motivated to sell at any price. There is sufficient demand in the marketplace and although there are discounts,

certain product will trade with multiple offers, and the discount is not as steep as many buyers would want.”

More money was spent buying homes in June than in the past two years. Still, mortgage financing (or the lack thereof) remains a pressing issue, but seems to be relaxing in Santa Monica. Brad Blackwell, a national mortgage sales manager at Wells Fargo Home Mortgage notes that, to write a jumbo loan in the coastal areas of Los Angeles and Orange counties, the lender is currently asking for a 20% down payment or that percentage of equity, down from 25% last year.

According to author E. Scott Reckard in ‘The jumbo mortgage market is beginning to thaw,’ “The reason: Wells believes high-end home prices are stabilizing in those coastal counties. But the bank still requires higher down payments in the Inland Empire and other battered housing markets such as Florida, Nevada and Arizona, where prices for jumbo-size homes don’t appear to be stabilizing”

The continued slowdown in the real estate market has been attributed to the fact that jumbo loans remain much harder to get than before the recession. Currently, borrowers typically must have a credit score of at least 700, compared with boom-era minimums in the 600s.

Another sign of the easing credit market is the increasing availability of “stated income” loans – but unlike the phat times, borrowers are asking for at least a 40% down payment.

We’re here to help you with residential properties. Please contact Jodi Summers -jodi@jodisummers.com or 310.392.1211 and let us move forward together.

**

http://www.laedc.org/eedge/index.html#5

http://www.globest.com/news/1704_1704/losangeles/300864-1.html?ET=globest:e22790:277110a:&st=email

http://southorangecounty.wordpress.com/2010/02/25/the-jumbo-mortgage-market-is-beginning-to-thaw/

http://www.santamonicapropertyblog.com/?p=2127

https://www.terradatum.com/

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http://www.brownstoner.com/brownstoner/archives/mortgage-1008-2.jpg

LOS ANGELES IS AWARDED $30 MILLION FOR RETROFITTING REAL ESTATE

By Jodi Summers

All the banter that Los Angeles mayor, Antonio Villiarigosa has been causing in Washington with his green / energy saving ideas for Los Angeles are paying off. Recently, Vice President Biden announced that Los Angeles County was awarded $30 million to “ramp-up” energy efficiency building retrofits.

Los Angeles was one of 25 communities selected to receive a slice of $452 million in Recovery Act funding under the Department of Energy’s Retrofit Ramp-Up Initiative. The initiative promotes the concept that communities, governments, private sector companies and non-profit organizations will work together on pioneering and innovative programs for concentrated and broad-based retrofit projects.

A simple example of how the Retrofit Ramp-Up Initiative would work would be to have the same construction crew upgrade all the homes on the same block at the same time. The White House notes that this way of doing business, “…Saves contractors time and money. They can pass the savings on to their customers. And it’s just a much more efficient way to operate.”

Biden said the program, part of $80 billion in the Recovery Act for a clean energy economy, will help consumers save money on their energy bills, lower greenhouse gas emissions and create green jobs.

The models created through this program are expected to save households and businesses about a $100 million annually in utility bills, while leveraging private sector resources, to create what funding recipients estimate at about 30,000 jobs across the country during the next three years.

“Investing in retrofits is a triple win,” Vice President Biden observed, adding the program will result in retrofits for hundreds of thousands of U.S. homes and businesses over the next three years.

“This initiative will help overcome the barriers to making energy efficiency easy and accessible to all – inconvenience, lack of information, and lack of financing,” said Energy Secretary Steven Chu. “Block by block, neighborhood by neighborhood, we will make our communities more energy efficient and help families save money. At the same time, we’ll create thousands of jobs and strengthen our economy.”

In addition to the $452 million Recovery Act investment, the 25 projects will leverage an estimated $2.8 billion from other sources over the next 3 years to retrofit hundreds of thousands of homes and businesses across the country. The government noted gleefully, that the program funding was eight times oversubscribed, with more than $3.5 billion in applications received for the just over $450 million in Recovery Act funds available, (kind of like applying for UCLA). That puts it in course for additional investment in energy-saving and job-creating projects like these nationwide.

Retrofit Ramp-Up Awards

The following governments and non-profit organizations have been selected for Retrofit Ramp-Up awards. These projects are planned to begin in fall 2010. Final award amounts are subject to negotiation:

Austin, Texas - $10 million

Boulder County, Colorado - $25 million

Camden, New Jersey - $5 million

Chicago Metropolitan Agency for Planning - $25 million

Greater Cincinnati Energy Alliance, Ohio - $17 million

Greensboro, North Carolina - $5 million

Indianapolis, Indiana - $10 million

Kansas City, Missouri - $20 million

Los Angeles County, California - $30 million

Lowell, Massachusetts - $5 million

State of Maine - $30 million

State of Maryland - $20 million

State of Michigan - $30 million

State of Missouri - $5 million

Omaha, Nebraska - $10 million

State of New Hampshire - $10 million

New York State Research and Development Authority - $40 million

Philadelphia, Pennsylvania - $25 million

Phoenix, Arizona - $25 million

Portland, Oregon - $20 million

San Antonio, Texas - $10 million

Seattle, Washington - $20 million

Southeast Energy Efficiency Alliance - $20 million

Toledo-Lucas County Port Authority, Ohio - $15 million

Wisconsin Energy Conservation Corporation - $20 million

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http://www.energy.gov/news/8870.htm

http://www.whitehouse.gov/the-press-office/vice-president-biden-kicks-five-days-earth-day-activities-with-announcement-major-n

http://content.usatoday.com/communities/greenhouse/post/2010/04/white-house-awards-452-million-to-retrofit-homes-businesses/1

http://www.inhabitat.com/wp-content/uploads/2010/02/Smart-Grid-Obama.jpg

THE GOVERNMENT HAS $72 BILLION FOR GREEN REAL ESTATE

By Jodi Summers

Experts have calculated that the Obama administration has put together more than 30 programs worth $72 billion that can be used to increase energy efficiency in commercial buildings and multifamily housing.

“The Obama Administration has tremendous, untapped opportunities to use legal tools already at its disposal to enhance the energy efficiency and sustainability of the nation’s multifamily and commercial buildings — all without seeking new funds or authority from Congress,” observes a report prepared by Van Ness Feldman. “All told, the programs identified in this report have the potential to directly provide or facilitate over $72 billion in funding or loan guarantees, and can leverage hundreds of billions of dollars in private investment through instruments such as mortgage insurance and regulation of the real estate lending market.”

Titled “Using Executive Authority to Achieve Greener Buildings: A Guide for Policymakers to Enhance Sustainability and Efficiency in Multifamily Housing and Commercial Buildings,” the legal analysis, suggests several ways the Obama administration can use existing programs to enhance building efficiency:

* Reforming appraisal and underwriting practices at Fannie Mae and Freddie Mac Greening federal banking regulations

* Promoting flexible FHA insurance products

* Integrating energy efficiency and sustainability criteria into competitive grants and funding formulas

* Strengthening minimum property standards for federal housing and economic development programs to reflect energy efficiency and sustainability standards

* Improving performance standards applicable to federal buildings and leases

* Refining guidance applicable to the energy efficient commercial buildings tax deduction and the national historic preservation tax credit

* Using SBA funding mechanisms to support small business energy efficiency investments

* Streamlining Title 17 loan guarantees to make them suitable for buildings

“As an early adopter of green buildings and the LEED green building certification system, the federal government has been a leader in bringing green buildings to cities and towns across America,” said Roger Platt, the USGBC’s senior vice president of Global Policy & Law declared. “This new report unveils an even larger opportunity for the Obama Administration to increase our nation’s energy efficiency, while creating thousands of jobs and saving taxpayers money.”

**

http://www.usgbc.org/government

http://www.greenbiz.com/news/2010/04/30/obama-already-has-72b-tap-green-buildings-study-says

http://www.boulderindependentbusiness.org/wordpress/wp-content/uploads/2009/02/namaste_obama_0093.jpg

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SANTA MONICA REAL ESTATE SNAPSHOT – JUNE 2010

by Jodi Summers

Congratulations to us! Experts across the board say our home values may have hit bottom. As you know, the U.S. housing rebound has depended upon where you live. This map shows the year-over-year change in home prices for the 20 metro areas covered by the Index…and Los Angeles made the top 5!

San Francisco, one of the nation’s priciest markets, posted the largest gain — 16.2% over the past year. San Diego (10.8% ), Cleveland (6.7% ), Minneapolis (6.5% ), L.A. (6% ), and D.C. (5.6% ) also posted significant gains.

The Case-Shiller Home Price Index Housing prices concludes that prices have held up better in wealthier and more productive regions with a well-educated (122 colleges + universities in L.A. County), multicultural population; offering professional (medical) and creative work (entertainment), and high-tech industry (aerospace), and higher levels of amenity . Housing prices have fallen further in blue-collar locations with lower wages and skills, lower levels of amenity and openness. Expect to see great values in Appalachia going forward.

Zillow agrees, nothing that the Los Angeles, San Diego, San Francisco, Santa Barbara and Ventura metro areas have seen month-over-month appreciation for at least the past 10 months - each appears to have hit a low point in April or May of 2009.

"It's a very positive sign that several large markets have hit what appears to be a tentative bottom
in  home values," observed Zillow's chief economist, Stan Humphries. "While this is no guarantee
that home values there will not fall again, it is more likely than not that they will remain above their
lowest point last year." 

In Santa Monica, comparing May-08 vs. May-10, the median price of for sale properties is down
8%, and the median price of sold properties is down 22%. With the mean price dropping from
$2,352,500 to $1,835,000, it a buyer’s market.  If you evaluate May-08 vs. May-10, you'll notice,
the number of under contract properties is up 17%. 

And, although the sales volume remains unchanged, the average amount of days on the market
for a single family home in Santa Monica from May-08 vs. May-10 is down 34% 

Indeed our market has hit bottom, and now is a great time to buy. If you need help, contact us.
 Jodi@jodisummers.com. We look forward to working with you.

**

http://www.laedc.org/eedge/index.html#1

http://www.theatlantic.com/national/archive/2010/05/housing-prices-and-the-great-reset/57287/

http://www.creativeclass.com/creative_class/_wordpress/wp-content/uploads/2010/05/YearOverYear.jpg

http://www.inman.com/news/2010/05/10/real-estate-bottom-reached-in-some-california-markets

https://www.terradatum.com/agentmetricsonline/report_chart_view.td

http://www.dqnews.com/Articles/2010/News/California/HighEndSales/MDCA100204.aspx

SANTA MONICA PROPERTY SNAPSHOT – MAY 2010

By Jodi Summers

As the new homebuyer’s tax credit era draws to an end, it may go down in history as a concept that revived the residential housing market. Lawrence Yun, chief economist for the group, said the federal tax credit that was to expire at the end of this month had been a “resounding success.”

To keep the momentum rolling, California is now offering a statewide credit, for as much as $10,000 for first-time buyers and those purchasing newly built homes, still a weak point in the market. But for the most part, the downward spiral of 2008-2009 has ended, and now, in the L.A. area, home sales and prices are in a slow rise up from the bottom. Around Southern California, DataQuick news reports that, “The market is still tilted toward low-cost distress sales, but not by as much as previously.”

In Santa Monica, comparing prices over the past two years, the median sold price is up 12%, with the current average selling price $ 910,000.

“I’m fairly sanguine, frankly,” said Michael D. Larson, a housing and interest-rate analyst with Weiss Research. “While the credit expires April 30, more forces are at work here. Home prices are now reasonable in many parts of the country, and financing costs remain low.”

“It’s a reflection of just how grim things got, that we’ve now had almost two years of sales gains and we’re still 18% below the sales average. The market won’t rebalance until mortgage lending patterns normalize, and that’s just not happening yet. Some of the best deals out there right now are happening when the buyer comes in with cash,” said John Walsh, MDA DataQuick president.

Locally, for the past two years, the number of for sale properties is up 10% and the number of sold properties has not changed.

Last month sales of homes priced at $500,000 or more made up 19.4% of all Southland transactions, compared with 18.5% in February and 14.9% in March 2009. Over the past five years, $500,000-plus deals averaged 35% of monthly sales, while over the past 10 years they averaged 26% of all transactions…and that would be why the average months supply of inventory in Santa Monica is down -2.7% to just over four months – 3.7 months is parity in the marketplace.

Absentee buyers – mostly investors and some second-home purchasers – bought 21.3% of the homes sold in March. Buyers who appeared to have paid all cash – meaning there was no indication that a corresponding purchase loan was recorded – accounted for 27.1% of March sales. In February it was a revised 30.0% – an all-time high. The 22-year monthly average for Southland homes purchased with cash is 13.8%.

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http://www.dqnews.com/Articles/2010/News/California/Southern-CA/RRSCA100413.aspx

http://www.ktla.com/news/landing/ktla-socal-home-sales,0,849872.story

https://www.terradatum.com/agentmetricsonline/agentmetrics_online.td

http://www.latimes.com/business/la-fi-home-sales-20100428,0,7766448.story

http://latimesblogs.latimes.com/money_co/2010/04/us-sales-of-previously-owned-homes-rise-68-in-march.html

https://www.terradatum.com/agentmetricsonline/agentmetrics_online.td?__m_sid=121

GLOBAL EDGE TOP 10 BUSINESS DESTINATIONS

GLOBAL EDGE TOP 10 BUSINESS DESTINATIONS

edited by Jodi Summers

Global Property Guide has put together a list of the most attractive

property investment destinations across the world. Their research team

has ranked 77 of the world’s largest cities according to the average

gross rental yields.

The top 10 destinations are dominated by Asian cities, with Jakarta,

Kuala Lumpur and Manila all making the list.

http://www.globaledge.co.uk/news/top-10-best-investment-destinations-35909

CALGREEN – > CALIFORNIA NOW HAS THE COUNTRY’S GREENEST BUILDING STANDARD

By Jodi Summers

Bravo to us! California has adopted the greenest building standards in the United States…and the world.

The new code, called Calgreen, goes into effect next January 2011. It requires all builders to:

v Install plumbing that cuts indoor water use.

Mary Nichols, chairwoman of the California Air Resources Board, said the new building code would require developers to slash water use in their buildings by 20%, using more efficient toilets, shower heads and faucets.

v Divert 50 percent of construction waste from landfills to recycling.

v Use low-pollutant paints, carpets and floorings

v Buildings will be given certificates of occupancy occupied only after strict energy standards were verified.

In addition, for non residential buildings:

v Install separate water meters for different uses.

v Mandates the inspection of energy systems by local officials to ensure that heaters, air conditioners and other mechanical equipment in nonresidential buildings are working efficiently.

v It allows local jurisdictions, such as Los Angeles and San Francisco, to retain their stricter existing green building standards, or adopt more stringent versions of the state code if they choose.

“California should be proud… These are simple, cost-effective green practices. …” notes Tom Sheehy, acting secretary of the state Consumer Services Agency and chair of the California Building Standards Commission, which approved the standards. “This is (something) no other state in the country has done - integrating green construction practices into the very fabric of the construction code.”

While California’s largest metropolitan areas have adopted their own green building standards, these new regulations will be particularly useful for smaller jurisdictions that have been unable to develop their own green construction guidelines.

This is a positive alternative to LEED construction standards. Sites Sandra Boyle, an executive vice president of Glenborough, a developer, “The cost for owners to go through this rating system is astronomical — in a very challenging commercial real estate market.”

“You will have a whole bunch of cities that never would have included this in their building doing it, and doing it in a way that won’t kill the economy,” observes Matthew Hargrove, a vice president with the California Business Properties Association. “Outside the coastal areas it will be helpful - like in West Sacramento, where they looked into creating a green building code but balked because it’s cumbersome to develop and they didn’t have the resources.”

Buildings currently account for about one-quarter of the state’s total greenhouse gas emissions. These new standards are applauded as an important step in helping California meet its goal in reducing the state’s greenhouse gas emissions by 30 percent by 2020.

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http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2010/01/13/MNDR1BH9SA.DTL#ixzz0dJ9grkaW

http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2010/01/13/MNDR1BH9SA.DTL

http://www.latimes.com/business/la-fi-green-building11-2010jan11,0,1841989.story

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