Historic preservation as economic stimulous

Congressman Mike Turner, Co-Chair of the Congressional Historic Preservation Caucus, has introduced legislation to encourage homeowners to preserve homes of historical significance across the country. The Historic Homeownership Revitalization Act (H.R. 2555) extends the tax credit currently in effect for commercial property owners to families living in historic homes. This legislation encourages the maintenance and rehabilitation of buildings which exemplify the culture and heritage of our communities. Furthermore, the Act incentivizes new construction on historic buildings; creating jobs.

“Across the country there are a number of communities with aging homes, with homeowners unable to keep up with their maintenance. Extension of this tax credit ensures that the history of our neighborhoods and nation remain intact for future generations,” said Turner.

The Historic Homeownership Revitalization Act would create a 20 percent tax credit — up to $60,000 — for homeowners who make expenditures to rehabilitate certified historic structures (listed in the National Register and is located in a registered historic district) in a way consistent with the historic character of the home and neighborhood in which the home is located.

Given the current mood in Washington, this bill has a snowballs chance….. of passing.  If it were to pass, it would provide excellent, labor intensive, and much needed economic stimulus and provide re-investment in housing which has suffered from neglect in the Great Recession.

 

Donovan Rypkema Provides Compelling Statistics on the Economic Benefits of Historic Preservation

Don Nelson reports that real estate and economic development consultant Donovan Rypkema’s recent presentation on the value of historic preservation was even better than expected.  Rypkema delivered his talk April 15 at the University of Georgia Chapel as part of the Preservation BBQ hosted by the Sigma Pi Kappa Honor Society and UGA’s College of Environment and Design.

Donovan Rypkema details historic preservation economic benefits: complelling studies and statistics

The guest speaker included some information from a recent report, “Good News in Tough Times: Historic Preservation and the Georgia Economy,” which Rypkema’s Washington, D.C.-based consulting firm, PlaceEconomics, conducted, but he also presented data from around the country on how historic preservation affected local economies.

For a summary of the talk by Donovan Rypkema, with many compelling and useful statistics, please click the link here to the column by Don Nelson’.

Madison & Dane County Market Housing Forecast: New Home Starts Down; Fewer People Move from Rentals to Owner Occupied; Rentals Up

Lakewood Gardens, Madison: A Mix of Investor Owned Rentals and Owner Occupied Condos

Looking over the housing market currently some major long term trends are evident.  While some of my evidence is based on national stats, I believe it applies here in Madison and Dane County.

First, new construction starts are greatly reduced from the peak of the market.  There is so much existing inventory.   In many cases, you can buy a 3 to 5 year old home for less than what the first occupants paid for it.  Furthermore,  the lack of good paying jobs, even in Dane County, has significantly reduced the total number of households as people have doubled up, meaning many housing units are vacant.

Second, discussions earlier this week indicate that many people who might be moving from rental housing to owner occupied housing in Dane County are staying in rental housing.  Earlier this week, the rental agent for a major rental firm with many town houses and high credit standards for tenants, said that in 13 years in the business she has never had so many tenants renew their lease. Often her company’s rentals are a stepping stone to home ownership and they lose many tenants every spring.  Not this year. National information suggests that both young people and seniors are appreciating the flexibility of renting in a market where homes and condos cannot be readily resold as personal needs change.

The demand for rental housing is growing.  I anticipate that more modest homes will be bought by long-term investors acquiring rental property.  Additionally, rental apartments should do well in the coming decade as people must rent or prefer to rent over buy. This is a result of major economic changes resulting from the Great Recession as well as a shift in American cultural values.

Though many have pointed out that owner occupied housing is far more affordable now than it has been in many years, in my view, this is not enough to offset economic, social and cultural factors in favor of rental housing.

Third, rising gas prices are going to push down demand for ex-urban housing (that is housing in rural areas for people whose work and recreation is oriented around an urban center) while supporting demand for housing close to metropolitan centers with their employment and recreational opportunities.  In Dane County, we will see less Madison oriented people pushing out into the countryside to live.  If nothing else, this bodes well for the preservation of green space and farmland and sustainable compact development. Details below.

Home starts down
Nationally, new home construction took a sharp dive in February, according to a Commerce Department report released today.  Housing starts, the number of new homes being built, fell 22.5% to an annual rate of 479,000 in February, down from a revised 618,000 in January.  Economists had expected the figure to fall to 545,000 housing starts in February.  The number of permits for future housing construction fell to an annual rate of 517,000 last month, down 8.2% from a revised 563,000 in January, the Commerce Department said. Economists had expected 565,000 building permits.  Both permits and new construction remain more than 20% below their prior-year levels.  One key impediment to the sector’s recovery is a vast backlog of unsold inventory, while a shaky job market has also made consumers reluctant to embark on any major new financial commitments. Making matters worse, a glut of foreclosures, stalled in recent months by revelations of improper loan documentation, is depressing the market. These trends apply in Madison and Dane County.

CNBC’s Olick – apartment REITs
While Diana Olick of CNBC  writes in regard to Real Estate Investment Trusts (REITs), the trends apply to all rental housing, including those using the federal and state historic rehabilitation tax credit. “With all the turmoil and unknown in the markets, investors today may be searching for a safe-haven. U.S. real estate wouldn’t exactly sit at the top of the list for most, given the still uncertain state of the housing and credit markets, but there is one sector that seems to have fundamentals and sentiment on its side: Apartments.  We’re in Boston, MA today for day two of the Spring Realty Check: Opportunity Knocks. Boston is home to Avalon Bay, one of the largest apartment REITs in the nation. It’s revenues were up 8% year over and shares are up 34% from a year ago. It’s the upside to the downturn in housing. Many people who lost their homes to foreclosure have been forced to the rental market, others who are unable to get a mortgage are doing the same, and still others who would have headed toward home ownership have been scared away from the market by still falling prices. In turn, apartment vacancies are down, rents are up and REITs are reaping the rewards.

Historic Craftsman Style Rental Unit in Madison

We interviewed a young couple in Boston, fiancées, and I think their insights are indicative of so many around the country.  ‘A lot of people are scared to buy just because if they have to move or things change, you lose money on the house and you might not be able to sell it. In my mind it’s just easier and more safe to rent.’  ‘I think more and more people are going to go away from buying and start renting more just because it’s convenient. It’s a no brainer to rent, especially when you’re young and you want to live in the city.’  The story appears to be the same in most cities around the country. Even though affordability is very high, renting just seems like the safer bet for many on the fence. The big question of course is whether this is a temporary phenomenon or not? One important fundamental of note: There is very little multi-family supply, as new construction essentially ground to a halt during the housing crash. It is just now starting up again, but there will be at least a two year lag time before that new supply comes to market.”

The Deficit Commission Could Have a Major Impact on Historic Preservation

Alexander Balloon, in his blog posted yesterday provides a thoughtful and detailed analysis of the potential effects of President Obama’s Deficit Commission’s plan on historic preservation.

I have mixed feelings about the elimination of all earmarks.  Often they involve favors for special interests, and closed door horse trading.  Many of these earmarks have benefited historic preservation, urban revitalization and heritage tourism projects.

The proposal to sell excess federal property is one we need to watch closely.  The federal government is the largest owner of historic properties in the nation and any transfered to private ownership need to be preserved in the process.

The commission proposes reduction in funding for the National Park Service and Smithsonian Institution.  The National Park Service has been woefully underfunded for years, and an observant visitor to  most National Parks sees once outstanding infrastructure crumbling from lack of maintenance.  I agree with Alexander Balloon that giving maintenance of existing facilities and assets over building more would be an excellent policy change.

Changes in the tax code that eliminated the Federal Rehabilitation Tax Credit would eliminate what has been the nation’s most effective historic preservation tool and an exceptionally cost-effective effective community revitalization program.

For many more details on how the deficit reduction proposals would affect the Main Street Program and Community Development Block Grants, point your browser to Alexander Balloon’s blog.

Looking Beyond Madison

For me the provocative news article of the day, is the continuing growth–right through the Great Recession–of the new knowledge based economies and associated lifestyles (with a bit of help from an energy boom) in the cities of the Great Plains, such as Fargo, Bismark, Des Moines and Omaha. The article by Joel Kotkin is titled the “The Great Great Plains: How heartland cities like Fargo and Omaha became the nation’s new boomtowns.”
I am a huge fan of both the work of Richard Florida and his work on the Creative Class and what makes cities and housing work, and Rebecca Ryan with her addition of a generational perspective through Next Generation Consulting.
However, I wonder if we who live in Madison may tend to look at the world through a particular lense and miss the strengths of communities that do not look, feel and act like ours.  We might do well take off our Madison perspective for a fresh look around us.

Foreclosures Sell at 30% Discount

According to Chris McLaughlin, in a recent e-newsletter, measured nationally, “foreclosures accounted for a third of all sales — and sold at a nearly 30% discount — during the first three months of 2010. According to a new report from RealtyTrac, the marketer of foreclosed properties, 31% of all sales were foreclosures. And homebuyers purchasing those properties paid a whopping 27% less, on average, compared to sales of non-distressed homes. These foreclosure sales include properties sold in short sales or after a bank repossession, known as REOs in industry terms. It does not include transfers from borrowers to banks, as in a sheriff’s auction. Foreclosures have become a dominant feature of many real estate markets, finding willing buyers among young bargain hunters and savvy housing market veterans. Foreclosure sales were highest, expectedly in the bubble states of Nevada, Massachusetts, Rhode Island and Florida. Lenders have been trying to manage their inventories of foreclosed homes to prevent them from flooding the market and dragging down prices. The impact of foreclosure sales on the home sales market can have a depreciating effect on the entire inventory out there.”

In Dane County there are roughly 180 foreclosures filed per month.  These properties do sell at a discount, though probably not at a 30% discount.  Some properties, following a cleaning, are move-in ready.  Others reflect the distress of the last owner and require significant repairs, work the lender generally is not willing to undertake.  Nevertheless, check out www.GeoffreyHomes.com for Dane County foreclosures.

Wisconsin Awards $360 Million Affordable Housing Tax Credits

June 18, 2010

by Wisconsin RealEstateRama

MILWAUKEE, WI – June 18, 2010 – (RealEstateRama) — Governor Jim Doyle today awarded $360 million in Affordable Housing Tax Credits to fund affordable housing project developments across the state of Wisconsin and create approximately 2,300 construction jobs. The tax credits, which are distributed through the Wisconsin Housing and Economic Development Authority (WHEDA), will move forward 38 developments that will create 2,000 units of affordable rental housing. The credits are worth $36 million this year, and $360 million over their 10-year lifespan. Many of these tax credits will be used to revitalize older neighborhoods of Milwaukee.

For details go to Wisconsin RealEstateRama

Donovan Rypkema Takes Obama Administration to Task: Stimulus Spending vs. Save America’s Treasures

The many diverse projects scattered across the country might make the Save America’s Treasures program look like pork barrel spending by members of Congress.  Donovan Rypkema, the nation’s foremost authority on the economics of historic preservation has taken the Obama administration to task for killing the program without undertaking the most basic analysis of the program’s impact.  Historic preservation has been documented as creating jobs at roughly one-twentieth for every one created by the stimulus plan.  In this case the Obama administration, like so many of those now holding public office seems more concerned about political posture than facts and effective governance.

“Between 1999 and 2009, the Save America’s Treasures program allocated around $220 million dollars for the restoration of nearly 900 historic structures, many of them National Historic Landmarks. This investment by the SAT program generated in excess of $330 million from other sources. This work meant 16,012 jobs (a job being one full time equivalent job for one year…the same way they are counting jobs for the Stimulus Program). The cost per job created? $13,780.

This compares with the White House announcement that the Stimulus Package is creating one job for every $248,000. Whose program is helping the economy?

If there was such a thing as shame left in Washington the White House should be ashamed to be throwing away a program that creates 18 times as many jobs per expenditure than does their own Stimulus Plan; ashamed to be so inattentive they the couldn’t be troubled to do a couple of hours of work before they dumped a program; but mostly ashamed of kicking around a constituency group because they were deemed to be too weak and small to defend themselves.”

For a series of articles on this topic.

Donovan Rypkema Defends Save America’s Treasures Program

Donovan Rypkema’s blog provides an extensive discussion of the Obama Administration’s cutting of the Save America’s Treasures program.  Few are as well qualified as Donovan Rypkema to defend the program on economic policy grounds.  Rypkema also summarizes other attacks on historic preservation around the country, motivated by political ideological posturing.

“And if the White House action were the only bad news we could attribute it to some idiot in OMB who deserves a trip to the woodshed. But in the legislature in Arizona a Republican State senator has introduced a bill to end property tax reductions for historic houses. In Indiana a Republican state legislator is angry because CVS was denied permission to demolish a historic church in her district so she is proposing to emasculate the Indianapolis Preservation Commission. In Missouri, Iowa and elsewhere reducing the effectiveness of state historic tax credits is high on legislative agendas. In Washington the state Main Street program is proposed to be zeroed out. A new city council in Poughkeepsie, New York repealed the historic preservation ordinance just passed by the previous council.”

What is the value of historic preservation tax credit eligibility?

Appraiser Vernon Martin asks an excellent question:

“I’m asked to estimate the “as is” value for an abandoned movie theater that just got conditional approval from the National Parks Service for “historic preservation certification”, which is the first step towards eventually gaining a historic preservation tax credit.

The document basically says that the proposed rehab would meet the Secretary of Interior’s guidelines for qualifying rehabilitation if certain conditions are met, and the conditions appear to be reasonable.

Is the market paying a premium for a “historic preservation certification” prior to the actual granting of a tax credit? Is there any market value to just having the conditional approval? The property owner insists that this conditional approval provides substantial value.”

Tax Credits for Replacing Heating and Cooling Systems

By: Suzanne Cosgrove

Published: September 21, 2009

By HouseLogic of the National Association of Realtors

Upgrading to an energy-efficient heating and cooling system can save hundreds on your utility bills and earn you a tax credit worth as much as $1,500.

Progress	$ E K
Save Money	Med $200/yr (energy bills)
Effort	Low 1 day (install)
Investment	Med $3,500 (HE furnace)

Do you qualify?

• Your HVAC system is at least 10 years old.
• You install a qualifying replacement in 2009 or 2010.
• You haven’t maxed out the energy tax credit on other upgrades.

The federal energy tax credit is based on 30% of the cost of an eligible HVAC system, including installation charges. Image: Bryant

Replacing an aging heating and cooling system can save you money over time. According to Energy Star, a federal program that promotes energy efficiency, about half of what the average household spends on energy bills goes toward heating and cooling.

Upgrading your heating, ventilation, and air conditioning (HVAC) to energy-efficient units can cut utility costs by about 20%, or $200 annually, on average. A tax credit for heating and cooling systems can make the project more affordable.

This type of home improvement doesn’t come cheap. Prices vary widely based on where you live, unit specifications, and the condition of your home, but figure a high-efficiency furnace will start at around $3,500, including installation, estimates Corbett Lunsford, executive director of Chicago-based Green Dream Group. A standard furnace may cost $2,400. To help offset the price difference, the IRS allows a tax credit worth up to $1,500 on eligible HVAC systems put into service during 2009 or 2010. Consult a tax adviser.

Pay attention to efficiency ratings

To earn an Energy Star rating, furnaces must be more efficient than standard units, with annual fuel utilization efficiency ratings, or AFUE, of 85% for oil furnaces and 90% for gas furnaces. The Energy Star seal of approval alone isn’t enough to garner the federal tax credit. Credit-eligible gas furnaces (either natural gas or propane) must have AFUE ratings of 95% or greater; oil furnaces, 90%. A boiler must have an AFUE of 90%.

Heating by burning a fuel is inherently inefficient. Simply put, high-efficiency furnaces have components that are better designed to get more heat out of the combustion process, Lunsford says. You’ll need to hire an HVAC contractor to calculate the size of the equipment needed for your home. Beware bidders who take a one-size-furnace-fits-all approach. Air source heat pumps and advanced main circulating fans can also qualify for the $1,500 tax credit.

Technically, a homeowner could replace either a furnace or a central air-conditioning unit and be eligible for the tax credit. Practically speaking, you probably will have to replace both for the A/C to qualify, says Enesta Jones, a spokeswoman for the U.S. Environmental Protection Agency. Most homes have split systems made up of an outdoor condenser and compressor that are connected to an indoor air handler that’s part of the furnace. Split systems must have a SEER rating of at least 16 and an EER rating of at least 13. The higher the rating, the more energy efficient the unit. A package A/C system, which houses all of its components outdoors, requires lower ratings.

HVAC’s value goes beyond savings

It typically takes about a decade’s worth of energy savings to recoup the investment in a new HVAC system, Lunsford says, though that time frame can vary greatly depending on how much fuel prices fluctuate. Less apparent in dollar terms are increasing the comfort level in your home and lowering your household’s drain on non-renewable fossil fuels. Then there’s the effect on your home’s value when it comes time to sell.

You’re going to enhance a home’s salability by moving to a more energy-efficient heating and cooling system, says Frank Lesh, president of Home Sweet Home Inspection Co. in Indian Head Park, Ill. That doesn’t mean adding a $5,000 furnace will add $5,000 to the sale price. Rather, potential buyers are less likely to push for repairs or negotiate a credit if the HVAC is in good shape. Evaluate systems older than 10 years for possible replacement.

But before you do, conduct a wider energy audit of your home. Lunsford, also manager of consumer education for the U.S. Green Building Council’s Chicago Chapter, says he rarely recommends replacing a furnace as the first step in making a home more energy efficient. Instead, start by sealing it against air leaks. Do-it-yourself caulking and weather-stripping help, as does adding insulation in the attic. Professional air sealing, which is more effective, can cost as much as $5,000 for a large house, he says. The payoff: Energy costs should go down, and you might be able to get by with a smaller HVAC system.

Getting tax credit for your upgrades

The federal energy tax credit is based on 30% of the cost of an eligible HVAC system. Installation charges count too. A $5,000 bill would max out the credit. You’ll need to owe more in taxes than you’re trying to claim in credits to qualify. Use IRS Form 5695. Save receipts for your records, as well as manufacturers’ certification statements. If part of a new HVAC system qualifies for the credit but another part doesn’t, ask the contractor to itemize the receipt.

The tax credit is aggregated for all qualifying energy upgrades—insulation, roofs, windows, and so on—so you can’t claim separate $1,500 credits for each project. Only improvements to your existing primary residence count. New homes and second homes are excluded.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.

Suzanne Cosgrove, who spent nine years as an editor at the Chicago Tribune, has written for a number of business and real estate publications. She has a 90-year-old house and a long list of home-improvement projects.

“Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.”

Tax Tips for Homeowners Looking Ahead to 2010 Returns

By: Mike DeSenne

Published: February 22, 2010

By HouseLogic of the National Association of Realtors

From energy tax credits to vacation home deductions, check out these tax tips for homeowners looking ahead to 2010 returns.

If you believe your real estate assessment is too high, you can always appeal it and possibly save on your property tax bill. Image: Tetra Images/Getty Images

Tax planning for homeowners should start well in advance of the April 15 filing deadline each year. If you delay until the last minute, it might be too late to maximize tax credits and tax deductions. These tax tips for homeowners looking ahead to 2010 returns explain some of the things you can do now that’ll pay off later on your 1040.

Take a day to formulate a tax plan for the year. Depending on your circumstances, you might want to take advantage of energy tax credits or max out your vacation home deductions. The “What’s New in 2010” section of IRS Publication 17 offers a sneak peek at tax changes that might affect homeowners.

Claim remaining energy tax credits

It’s time to get cracking if you didn’t exhaust your full allotment of residential energy tax credits during 2009. Although tax credits for big projects like residential wind turbines and solar energy systems have no upper limit and are good through 2016, energy tax credits capped at $1,500 expire at the end of 2010. Eligible capped projects include new windows and doors, insulation, roofing, water heaters, HVAC, and biomass stoves.

Here’s how it works with capped federal credits: You can earn energy tax credits worth 30% of the cost of qualifying improvements, but the total tax credits can’t exceed $1,500 combined for 2009 and 2010. So if you only took, say, $700 worth of capped energy credits on your 2009 tax return, you’re still due for another $800 in credits in 2010. Some projects include the cost of installation—a furnace, for example—while others, such as insulation, are limited to the cost of materials.

Max out tax benefits of a vacation home

Use a vacation home wisely, and it’ll provide a break from taxes as well as the hustle and bustle of everyday life. The rules on tax deductions for vacation homes can get a bit tricky, but understanding and adhering to them can yield many happy tax returns.

If your vacation home is truly a vacation home meant for your personal enjoyment, as opposed to a rental-only income property, you can usually deduct mortgage interest and real estate taxes, just as you would on your main home. You can even rent out the home for up to 14 days during the year without getting taxed on the rental income. Not bad.

Now, let’s say you want to rent out your vacation home for more than 14 days in 2010, but also use it yourself from time to time. To maximize the tax benefits, you need to keep tabs on how many days you use your vacation home. By restricting your annual personal use to fewer than 15 days (or 10% of total rental days, whichever is greater), you can treat your vacation home as a rental-only income property for tax purposes.

Why is that a big deal? In addition to mortgage interest and real estate taxes, rental-only income properties are eligible for a slew of other tax deductions for everything from utilities and condo fees to housecleaning and repairs. Deductions are limited once personal use exceeds 14 days (or 10% of total rental days), so get out your calendar now to strategically plot your vacations.

Take advantage of tax breaks for the military

In salute to members of the armed forces serving overseas who want to purchase a home, the IRS is extending a lucrative tax perk for military personnel. If you spent at least 90 days abroad performing qualified duty between Jan. 1, 2009, and April 30, 2010, you have an extra year to earn a homebuyer tax credit. In addition to uniformed service members, workers in the Foreign Service and in the intelligence community are eligible.

Thanks to this extension of the homebuyer tax credit, qualifying military personnel have until April 30, 2011, to sign a contract on a new home. The deal must close before July 1, 2011. Just like non-military buyers, first-time homebuyers can earn a tax credit worth up to $8,000, and longtime homeowners can earn a credit of up to $6,500. The same income restrictions and $800,000 cap on home prices apply.

Military personnel can also get a break if official duty calls and they’re forced to move for an extended period. Normally, the homebuyer tax credit needs to be repaid if you sell your home within three years, but this requirement is waived for uniformed service members, Foreign Service workers, and intelligence community personnel. The new extended duty posting doesn’t need to be overseas, but it must be at least 50 miles from your principal residence.

Challenge your real estate assessment

You can’t do much about the rate at which your home is taxed, but you can try to do something about how your home is valued for taxation purposes in 2010. The process varies depending where you live, but in general local governments conduct a periodic real estate assessment to determine how much your home is worth. That real estate assessment figure is used to calculate your property tax bill.

You can usually appeal your real estate assessment if you think it’s too high. Contact your local assessor’s office to find out the procedure, and be prepared to do some research. There’s often no charge to request a review of your assessment.

Look for errors. You probably received an assessment letter in the mail, and many local governments provide the information online as well. Make sure the number of bedrooms and bathrooms is accurate, and the lot size is correct. Also check the assessed value of comparable homes in your area. If they’re being assessed for less than your home, you might have a case for relief.

Even if your assessment is accurate and comparable homes are being taxed at the same rate, there might be another route to tax savings. Ask your assessor’s office about available property tax exemptions. Local governments often give breaks to seniors, veterans, and the disabled, among others.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice; tax laws may vary by jurisdiction.

Mike DeSenne is Online Managing Editor for taxes, finances, and insurance at HouseLogic.com, and the former Executive Editor of SmartMoney.com. He likes to do his taxes by hand, much to the dismay of his accountant.

“Visit Houselogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.”

Morgan Greenseth on the Future of Shopping Malls

As retail vacancies grow ever more conspicious, even around Madison, Wisconsin, a provocative essay by Morgan Greenseth, “The Future of  Shopping Malls: An Image Essay” is worth visiting.  She begins:

“Mall culture in the United States — at least as we know it — is coming to an end. This trend is likely to continue, as the U.S. economic downturn causes people to reduce their trips to stores and to shop less, forcing more shops to close and leaving malls deserted.

According to an article that ran in The Economist at the end of 2007:

In the past half century … [malls] have transformed shopping habits, urban economies and teenage speech. America now has some 1,100 enclosed shopping malls, according to the International Council of Shopping Centres. Clones have appeared from Chennai to Martinique. Yet the mall’s story is far from triumphal. Invented by a European socialist who hated cars and came to deride his own creation, it has a murky future. While malls continue to multiply outside America, they are gradually dying in the country that pioneered them.”

For the complete article with numerous illustrations click here.

Save Those Historic Windows & Save Energy

“Consider it this way: If you had a beautiful piece of art that was custom designed, crafted by hand, made from native old-growth wood, and imbued with clues to its age and crafting traditions, would you throw the authentic piece in the dumpster if a simulated plastic version suddenly became available?

Seems ridiculous, right? However, this is precisely what people all over the country are doing when they rip out their historic wood windows and replace them with new windows.”

For an extensive guide to historic windows and many aspects of energy efficiency in older buildings, visit www.Preservationnation.org/weatherization.

Another great resource, relevant to Wisconsin is the Michigan State Historic Preservation Office blog site.

Home Energy Efficiency Program for Middle Class?

Home energy efficiency program coming? According to Chris McLaughlin, in his daily web newsletter (source of most of this article), “the federal government is expected to unveil a new program in the next couple of months–that if approved– may reimburse homeowners for up to half the cost of making their homes more efficient. Homeowners will get the most return for the money in simple upgrades like caulking the windows, putting insulation in the attic, and changing the light bulbs – not new windows, refrigerators or dishwashers. A complete energy retrofit – which could include caulking and insulation as well as new windows, appliances and boiler, could slice a home’s energy consumption in half, according to Lane Burt, manager of building energy policy at Natural Resources Defense Council. But getting all that work done might run into the tens of thousands of dollars. And any new federal program–which is still being drafted and is not guaranteed to become law— would cap the government reimbursements at $12,000, said Burt. The original proposal, which called for $23 billion to be spent on energy retrofits, was estimated to create over half a million jobs, according to CleanEdison, an association of green building professionals. Those familiar with the proposal say the final bill may set aside $10 billion for energy retrofits. Still, it’s a lot more than is currently being done; while some states have reimbursement programs, there is no federal plan.”

“The original stimulus bill contained $5 billion for low income homeowners and money to retrofit federal buildings, but nothing for middle income Americans. The new proposal has no income restriction. But in addition to creating jobs and saving consumers money, it also lays the framework for an energy efficient economy and achieving the 80% reduction in greenhouse gases most scientists say is necessary to avoid the worst impacts of global warming.”

A letter to National Trust for Historic Preservation members from President Richard Moe, reported that the National Trust is working hard to assure that energy efficiency programs protect historic fabric, not destroy it. Thoughtfully reusing existing historic buildings are one of the most effective ways to save energy and reduce carbon dioxide emissions.  In particular, the National Trust is working to protect historic windows, often critical to the historic character of a building and which can be at least as energy efficient as new windows, if repaired and used with storm windows.