Monday, February 26, 2007

Will green roofs be the next hot trend?

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NORTH PALM BEACH, Fla. – Feb. 26, 2007 – If the term “green roof” evokes an image of a few potted plants arranged tastefully on the top of a building, then the time seems ripe to rethink that definition. Green roofs may be the next hot trend to cool down the urban landscape and lower the cost of controlling temperatures in the average suburban home.
Green roofs are generally categorized by one of two forms. Extensive green roofs, also known as eco-roofs or low-profile roofs, are made with a few thin layers of soil, are lightweight, relatively less expensive, and require very little maintenance. Extensive green roofs are the correct choice, the experts say, when the primary desire is for an ecological cover with limited human access.
Intensive or high-profile green roofs, on the other hand, look like traditional roof gardens because a much wider variety of plant material is usually included. They have soil depths ranging from 8 to 12 inches, with growth that can extend upward of 15 feet. They can include such architectural features as waterfalls, ponds and gazebos. Their construction and maintenance is much more costly.
New to the U.S.
Tristan Roberts, an executive with BuildingGreen in Brattleboro, Vt., says that while interest in green roofs within the U.S. has only taken root in the past decade, green roofs as a phenomenon have a long history.
“They go back for hundreds, if not thousands, of years,” he says, “as sod houses in this country and as living roofs in Europe. The modern equivalent has been around for quite a few decades and is much more prevalent in Europe, particularly Germany.”
BuildingGreen, which bills itself as an independent operation dedicated to distributing information to building-industry professionals and policymakers, sees green roofs as one way to improve the environmental performance and reduce the adverse impacts of traditional buildings.
Bill Retzlaff, chairman of environmental sciences at Southern Illinois University-Edwardsville and coordinator of the research co-operative Green Roof Environmental Evaluation Network, or G.R.E.E.N., says the green-roof industry in the U.S. is very new. “While Europeans have been doing them for a long time, our climate is different, so there’s not much useful data on their performance here.”
The G.R.E.E.N. co-operative was established two years ago to evaluate green-roof technology in the Midwest, says Retzlaff. In addition to the university, members include several commercial suppliers and Greenroofs.com, an international resource and online information portal for the green-roof industry.
“Our longest-running project has been on the ground since September 2005,” says Retzlaff. “We now have seven specific green-roof projects at our field site. We’re evaluating storm-water runoff and temperatures, comparing those results with the results we get with a flat membrane roof.”
While green roofs don’t necessarily require a lot of care, it’s a misconception to suppose that they will just take care of themselves. G.R.E.E.N. researchers are working with systems that don’t require a lot of maintenance, but there’s no such thing as a no-maintenance green roof.
“You must water them for the first 10 weeks or so,” Retzlaff says. “They have to get established, just like any other garden. And at minimum, you need to add some plants, fertilize and weed a couple of times a year.”
Before establishing a green roof, consumers need to have some sense of what they want from it beyond the vague notion that they’re good for the environment.
“Everything from roof materials to plant varieties has to be picked for the issue you want to address – storm-water retention, more green space or thermal control,” says Retzlaff. “Every green roof provides some of each of these things, but to decide you want a green roof because it’s a good thing is not enough.”
Benefits of lofty gardens
For example, Retzlaff cites a green roof in St. Louis on the seventh floor of a children’s hospital that has a pond and large walkways.
“It costs $200,000 a year to maintain,” he says. “But the benefit is that when those children go through those double-glass doors leading to the green roof, they can forget everything inside.”
Retzlaff says Ford Motor Co. has a 10-acre extensive green roof in Dearborn, Mich., that remains the largest in the U.S. “It has a 2-inch depth, so they have to irrigate it. They catch storm water in retention ponds and irrigate with that.”
In Chicago, the mayor is interested in lowering the urban center’s heat-island effects that drive up temperatures. “He has been told by various research facilities that if about 65 percent of downtown buildings had green roofs, that would lower the heat by about 10 degrees,” says Retzlaff. “So the city issues grants to offset the costs of installation and will fast-track building permits if a green roof is included.”
Retzlaff expects G.R.E.E.N. to become a resource for would-be green-roofers around the country. “Eventually people will be able to contact us to find out exactly what growing medium and plants are best for their climate and purpose.”
BuildingGreen’s Roberts says he sees more incentives – and so more green roofs – for commercial buildings than homes right now, but there are several benefits that could make them appealing to homeowners. They include increased insulation and the fact that the additional garden materials make a roof more durable.
“For homeowners, a green roof on a low slope or flat roof can extend the life of that roof many years by shielding it from rain water and ultraviolet sun rays, which degrade roofing materials,” says Roberts. Green roofs also filter out some air pollutants, he adds.
Green roof solutions
In addition to collecting storm water, reducing urban heat and acting as insulation to cool down a building or home’s occupants, green roofs are seen by advocates as opportunities to increase food production, beautify cities and provide sound insulation by absorbing, reflecting or deflecting noise by machinery, planes and traffic.
For the average homeowner concerned with rising energy costs, it’s likely the insulation qualities of green roofs would prove most appealing.
Dennis Yanez, national marketing manager for Chicago’s American Hydrotech, says his company offers waterproofing and all the components for garden-roof assembly, including Styrofoam, soil and plants. American Hydrotech also offers a single-source warranty, which Yanez says is unique in the industry. Clients are primarily architects and developers.
“We have not done a lot in the consumer market,” Yanez says. “We do have some homes that have our systems in them, but they’re all higher-end, in the 7,000- to 10,000-square-foot range.”
That’s because a homeowner who wants a green roof, Yanez says, would have to start by hiring an engineer or architect to design it. He estimates the price of building a green roof from “the high teens to the low $20s” per square foot.
Greenroofs.com estimates costs at $9 to $25 per square foot for extensive green roofs and $25 to $40 or more for the intensive variety.
“We’ve seen they have a growing appeal,” Yanez says. “In general, sustainability and green building has taken off in the past five or six years. Putting together buildings that disrupt the environment as little as possible is becoming a real concern.”
© 2007 Bankrate.com, Bankrate Inc. All rights reserved.

Related Topics: Development, Environment

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Monday, February 19, 2007

U.S. Market A World Favorite

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MILWAUKEE, Wis. – Feb. 19, 2007 – Foreign investors prefer America's real estate market most in the whole world, University of Wisconsin-Madison research shows. The U.S. was the top choice of 63 percent of respondents in a 2007 survey of Association of Foreign Investors in Real Estate members by the UW-Madison Center for Real Estate. But association members, whose global holdings total $601 billion, are eyeing India as a close second for plunking their money into, researchers found. A third hotspot: China.
"Our members are taking advantage of some of the opportunities inherent in emerging markets," association chairman Mark Preston said in the group's January/February newsletter.
Preston called the findings of his group's 15th annual attitude survey "the most global viewpoint our members have ever expressed."
UW Madison professor Francois Ortalo-Magne, who authored the survey report, said the global investors he polled are largely involved in office and retail property deals, not housing.
"But apartments are becoming more in favor. Last year, they ranked multifamily (housing) fifth in interest and this year, it's up to number two," Ortalo-Magne said. "But there are a number of very wealthy people who are active in housing markets all over the world."
Other research findings:
• Germans are the biggest investors in U.S. properties, lately joined by Austrians and Middle Easterners.
• Favorite cities: London, New York City (retaking U.S. primacy for the first time since Sept. 11), Paris, Washington, D.C., and Tokyo.
• Most investment portfolios are heavily weighted with holdings in the U.S, western Europe and the United Kingdom.

Friday, February 16, 2007

Insurance companies exempt from U.S. antitrust regulations

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WASHINGTON – Feb. 16, 2007 – True or false: U.S. antitrust laws apply to Realtors but not the insurance industry. Answer: True. Federal oversight does not apply to insurers’ anti-competitive conduct, such as price-fixing, agreements not to pay and market allocations.
But yesterday, the U.S. House and Senate introduced bills to change that status, led by Senate Minority Whip Trent Lott (R-Miss.), who lost a home in Hurricane Katrina, turning him into a stalwart critic of insurance industry policies. Lott also remains embroiled in a lawsuit against State Farm over hurricane damage.
“After Hurricane Katrina we learned a lot of lessons,” says Lott, noting that he found out “to my absolute horror that the insurance industry is not covered by the antitrust laws. … This is wrong and the Senate, in a bipartisan way, should, and I believe will, correct it.”
Senate Judiciary Committee Chairman Patrick Leahy (D-Vt.) and Sen. Arlen Specter (R-Pa.) joined Lott in introducing the bill. In the House, Rep. Gene Taylor (D-Miss.), Rep. Pete DeFazio (D-Ore.), Rep. Bobby Jinda (R-La.), Rep. Walter Jones (R-N.C.) and others introduced a similar bill. Taylor, who also lost a home to Hurricane Katrina, says, “The insurance industry is the only industry exempt from the laws intended to protect consumers.”
The bill has strong support among other influential lawmakers too, including Senate Majority Leader Harry Reid (D-Nev.) In a statement, Reid echoed the thoughts of many lawmakers: “If insurers around the country are operating in an honest and appropriate way, they should not object to being answerable under the same federal antitrust laws as virtually all other businesses.”
The bills, called the Insurance Industry Competition Act of 2007, would empower the U.S. Justice Department and Federal Trade Commission to oversee some insurance industry operations, though individual states would continue to regulate the industry.
The insurance industry opposes bill, pushing for a global look at the way individual states operate rather than a change in federal oversight. “The problem is hurricanes, not insurance companies,” says Dennis Kelly, a spokesman for the American Insurance Association.
Lawmakers have harsh words for the insurance industry, however. Taylor calls State Farm’s recent announcement to pull out of Louisiana a “marketing gimmick.” He says the company is “winking at its competitors” and that they’ll probably start writing policies again in a few months – but at much higher rates.
“I personally believe that the Big Three insurers said, ‘Let’s don’t pay claims’ after Katrina,’” Taylor says. “It’s wrong. Unfortunately, it’s legal. But it ought to be illegal.”
Source: McClatchy Newspapers, Maria Recio

Wednesday, February 14, 2007

Florida Officials call for multi-state insurance catastrophe fund.

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TALLAHASSEE, Fla. – Feb. 14, 2007 – Frustrated by inaction in Washington, Florida officials this week are asking other states to join them in setting up an insurance catastrophe fund.If established, a multi-state fund would bail out regions hit by cataclysmic disasters such as hurricanes, earthquakes, flooding and even terrorism.But unlike a national fund - which Congress has balked at creating - it wouldn’t rely on the financial backing of the federal government. Only interested states would participate.“We hear so much about the hurricanes in Florida, but we know there’s potential for a $400 billion loss in California due to an earthquake, and a $250 billion massacre if an earthquake strikes along the New Madrid fault (in the Midwest),” Florida Insurance Commissioner Kevin McCarty said Tuesday.McCarty and Florida’s chief financial officer, Alex Sink, head to Atlanta this week to host a meeting on multi-state catastrophe funds during a National Association of Insurance Commissioners’ conference. Sink said she was in favor of creating a regional fund that would help coastal states.“Hurricanes will not wait for the federal government to get a national catastrophe fund up and running,” said Sink, a Democrat. “It’s up to the coastal states to work together to ensure citizens have access to affordable hurricane insurance.”Aides to McCarty say the effort to start up multi-state funds was not a sign they were giving up on the idea of a national catastrophe fund. They say both are desirable.“If another state gets hit with a Katrina-like hurricane, there’s a limit to what the (insurance) industry can pay, a limit to what any state can handle, and (federal) taxpayers are going to pay the rest,” said Bob Lotane, a spokesman for McCarty’s office. “We believe pre-funding for a storm is going to be cheaper for everyone.”The lobbying effort comes as Florida Gov. Charlie Crist and legislative leaders begin pushing for a federal response to the catastrophe risk. Crist, a Republican, plans to lobby his peers on a national catastrophe fund during the National Governors Association meeting in Washington this month, while the speaker of the state’s House of Representatives, Marco Rubio, and state Senate President Ken Pruitt, both also Republicans, are organizing a federal/state summit with the catastrophe fund issue at the top of the agenda.State Sen. Steve Geller is urging Florida officials to pressure presidential candidates seeking early support in the state to commit to backing a national catastrophe fund. Geller is skeptical that states can agree on details to put multi-state catastrophe funds into action.“I don’t object to what (McCarty) is trying,” Geller said. “ It’s noble but unattainable. I just think there’s a little desperation in that we can’t get this (national catastrophe fund), so let’s get that (multi-state compact) instead.”

Monday, February 12, 2007

Commercial Real Estate Booms Worldwide

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NEW YORK – Feb. 12, 2007 – Worldwide investment in commercial real estate rose by 33 percent last year to a record $645 billion, according to Cushman & Wakefield Inc., a real estate adviser and research company.
About $256 billion, or almost 40 percent of all commercial real estate deals last year, were transactions in North America. That compares with $295 billion, or almost 46 percent, in Europe; and $94 billion, or almost 15 percent, in Asia.
Foreign investment in European and Asian commercial real estate continues to grow. Non-domestic investors account for 48 percent of European real estate deals last year, up from 40 percent the previous year. Foreign investment in Asia increased to 32 percent last year from 28 percent.
In the United States, foreign investment has declined to 5.4 percent, down from 10.2 percent the previous year, primarily because of the decline in the value of the dollar.
Source: The Wall Street Journal Asia, Sara Seddon Kilbinger (02/07/07)

Thursday, February 8, 2007

Emergency Insurance Ruling Looks to be Retroactive

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Emergency insurance ruling looks to be retroactive
TALLAHASSEE, Fla. – Feb. 8, 2007 – An emergency rule issued last week that freezes homeowner insurance rates and prevents policy cancellations or non-renewals through May 1 looks be to retroactive, halting previously announced plans by some insurers to pare the number of policies on their books.
Most immediately affected is Allstate Floridian, which had announced in early January that it would begin non-renewing 106,000 policies by April 1.
Late Wednesday, the Office of Insurance Regulation issued letters clarifying the emergency rule that was signed by Gov. Charlie Crist and approved by the Florida Cabinet.
The OIR letters state no rate hikes, policy cancellations or non-renewals are allowed during the 90-day period ending May 1. Actions announced before the rule and effective during the freeze period, like Allstate’s, are also barred.
The letters also say insurers aren’t allowed to issue new cancellations or non-renewals until they make new rates taking into consideration how much they will lower rates after buying lower-cost reinsurance from the Florida Hurricane Catastrophe Fund. The lower-cost reinsurance was made available through a massive insurance reform bill passed by the state Legislature during a special session last month.
One company, American Strategic Insurance in St. Petersburg, has gone ahead with this filing. It will lower its hurricane base rates “a uniform 20 percent,” resulting in a statewide average drop of 11.5 percent. That’s because the company saved $27.4 million on its reinsurance expense after it bought its coverage from the catastrophe fund for the coming hurricane season.
In its filing, the firm said if regulators expand the catastrophe fund by an additional $4 billion, its savings would grow to $31.5 million and allow for an additional 1.8 percent cut in its rates.
American Strategic has 151,000 policies in Florida. It wants to implement the rate cut as soon as March 1. “We are getting inundated with phone calls from policyholders asking when their rates will be reduced,” said Kevin Milkey, American Strategic’s executive vice president in the filing.
Allstate, in the meantime, is wrestling with the impact of the emergency rule.
Ryan Priest, an Allstate spokesman, said the firm is still trying to figure out the full meaning of the rule and OIR’s clarifications.
“We fully intend to fully comply with the rule signed by the governor and OIR,” said Priest.
The company had no immediate answer on what will happen to policyholders like Irving and Willa Ingwer, who received a non-renewal notice on their condo policy effective April 1. The couple is wondering whether Allstate will have to renew their policy for another year.
“We’re trying to figure out what it means for these policies,” added Priest.
The new insurance law also nips Allstate’s non-renewal plans in another way. It doesn’t allow policy cancellations or non-renewals during the hurricane season. This provision hampers Allstate’s most recent slate of non-renewals as the 120,000 policy non-renewals it began in November. Those non-renewals were announced by the company last May.
Allstate has arranged for Royal Palm Insurance, a newly formed company, to offer its policyholders new coverage as the policies came up for non-renewals.
In another insurance development, a class-action lawsuit was filed in Miami-Dade Circuit Court against Citizens Property Insurance, alleging the state-run insurer failed to properly adjust claims for window damage from Hurricane Wilma.
The suit claims that Citizens ignored building code provisions that require damaged or destroyed windows be replaced by impact-resistant windows or regular windows and hurricane shutters.
Paul Berger, the Boca Raton attorney who filed the lawsuit, said Citizens’ policyholders in Miami-Dade and Broward counties were underpaid because the company only paid to replace their damaged windows with simple glass. These homeowners are now at risk should another major storm strike South Florida, he added.
Rocky Scott, Citizens’ spokesman, said the company couldn’t comment on the lawsuit because it still hasn’t been served.
© 2007 Miami Herald, Beatrice E. Garcia.

Survey Finds that Condo Buyers want Lifestyle as much as Real Estate

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Survey finds that condo buyers want lifestyle as much as real estate
ORLANDO, Fla. – Feb. 8, 2007 – Nearly half of all condo buyers choose their new home without considering any other style of housing, according to a new survey by the National Association of Home Builders (NAHB). The survey found that a majority of condo buyers want a lifestyle as much as a home.
With lifestyle and affordability the top factors driving condo sales, most industry experts expect the condo market – which had reached nearly half of all multifamily starts in 2005 – to stabilize at a healthy and sustainable 30 percent of the approximately 350,000 multifamily units produced annually.
According to the survey, two groups of condo buyers drive the condo market: young, well-paid professional singles or couples who want to own their first home close to urban amenities; and older households who want to remain in the suburbs but shed the maintenance burden of a house. Both groups expect their condos to appreciate in value.
“The core buyers for our product are single, without children, who want a lifestyle that allows them to enjoy the amenities inherent in a downtown environment,” says Judd Bobilin, executive vice president and chief development officer of the Atlanta-based Novare Group, which currently has more than 5,000 condo units in development.
Bobilin noted that buyer traffic at his properties is comparable to the traffic the company saw in 2004, with sales continuing to average about five units per month. He also noted that the number of out-of-state purchasers at his properties has dropped to about 20 percent or less, an indication that buyers – not speculators – are currently driving today’s sales.
Bobilin’s customers, like the participants in the NAHB survey, identified price and location as the top two factors in their decision to buy a particular property, followed by size, desirable neighborhood and investment potential.
“This is the first research study that probes the question of where condo buyers buy, why they buy there, and what amenities they look for to complement their new lifestyle choice,” says Gopal Ahluwalia, NAHB’s staff vice president for research.
For the survey, NAHB used a random sample of 1,008 households that had purchased condos in the past, balanced among the four geographical regions of the country, representing the low, middle and high ends of the market.
© 2007 FLORIDA ASSOCIATION OF REALTORS®

Thursday, February 1, 2007

FHA

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A New Orleans lawyer sought an FHA loan for a client who lost his house in
Hurricane Katrina and wanted to rebuild. He was told the loan would be
granted if he could prove satisfactory title to the parcel of property
being offered as collateral. The title to the property dated back to
1803, which took the Lawyer three months to track down.


After sending the information to the FHA, he received the following
reply:


(Actual letter excerpt) "Upon review of your letter adjoining your
client's loan application, we note that the request is supported by an
Abstract of Title. While we compliment the able manner in which you have
prepared and presented the application, we must point out that you have
only cleared title to the proposed collateral property back to 1803.
Before final approval can be accorded, it will be necessary to clear the
title back to its origin."


Annoyed, the lawyer responded as follows:


(Actual letter excerpt) "Your letter regarding title in Case No. 189156
has been received. I note that you wish to have title extended further
than the 194 years covered by the present application. I was unaware that
any educated person in this country, particularly those working in the
property area, would not know that Louisiana was purchased, by the U.S.,
from France in 1803, the year of origin identified in our application.


For the edification of uninformed FHA bureaucrats, the title to the land
prior to U.S. ownership was obtained from France, which had acquired it by
Right of Conquest from Spain. The land came into the possession of Spain
by Right of Discovery made in the year 1492 by a sea captain named
Christopher Columbus, who had been granted the Privilege of seeking a new
route to India by the Spanish monarch, Isabella.


The good queen, Isabella, being a pious woman and almost as careful about
titles as the FHA, took the precaution of securing the blessing of the
Pope before she sold her jewels to finance Columbus ' expedition. Now the
Pope, as I sure you may know, is the emissary of God, and God, it is
commonly accepted, created this world. Therefore, I believe it is safe to
presume that God also made that part of the world called Louisiana. God,
therefore, would be the owner of origin and His origins date back to
before the beginning of time, the world as we know it AND the FHA. I hope
you find God's original claim to be satisfactory. Now, may we have our
damn loan?"



He got the loan.