In Miles of Alleys, Chicago Finds Its Next Environmental Frontier - NY Times

November 26, 2007

In Miles of Alleys, Chicago Finds Its Next Environmental Frontier

Published: November 26, 2007

CHICAGO, Nov. 25 — If this were any other city, perhaps it would not matter what kind of roadway was underfoot in the back alleys around town. But with nearly 2,000 miles of small service streets bisecting blocks from the North Side to the South Side, Chicago is the alley capital of America. In its alleys, city officials say, it has the paved equivalent of five midsize airports.

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Peter Wynn Thompson for The New York Times

Permeable surfaces to reduce runoff are a feature of the refurbished alleys.

Peter Wynn Thompson for The New York Times

Judy King says the cost of the alleys needs to be weighed against other environmental alternatives.

Part of the landscape since the city began, the alleys, mostly home to garbage bins and garages, make for cleaner and less congested main streets. But Chicago’s distinction is not without disadvantages: Imagine having a duplicate set of streets, in miniature, to maintain that are prone to flooding and to dumping runoff into a strained sewer system.

What is an old, alley-laden city to do?

Chicago has decided to retrofit its alleys with environmentally sustainable road-building materials under its Green Alley initiative, something experts say is among the most ambitious public street makeover plans in the country. In a larger sense, the city is rethinking the way it paves things.

In a green alley, water is allowed to penetrate the soil through the pavement itself, which consists of the relatively new but little-used technology of permeable concrete or porous asphalt. Then the water, filtered through stone beds under the permeable surface layer, recharges the underground water table instead of ending up as polluted runoff in rivers and streams.

Some of that water may even end up back in Lake Michigan, from which Chicago takes a billion gallons a year.

“The question is, if you’ve got to resurface an alley anyway, can you make it do more for you?” said Janet Attarian, the project’s director.

The new pavements are also designed to reflect heat from the sun instead of absorbing it, helping the city stay cool on hot days. They also stay warmer on cold days. The green alleys are given new kinds of lighting that conserve energy and reduce glare, city officials said, and are made with recycled materials.

The city will have completed 46 green alleys by the end of the year, and it has deemed the models so attractive that now every alley it refurbishes will be a green alley.

“It is now business as usual,” Ms. Attarian said.

But all these improvements come with a cost, and some people around Chicago have begun to wonder if a city that hardly recycles its trash and has a hard time keeping its trains and buses running should be spending money on fancy alleys.

Judy King, putting all her household refuse into one bag on Tuesday and tossing it into a bin in a green alley, said: “How do you decide where your priorities are? It’s a hard one. I’m bothered that there isn’t more recycling.”

The city has lately begun having serious talks about a comprehensive recycling program to replace the uneven guidelines now in place. But beyond recycling, it has a vast array of “green initiatives” that put it at the forefront of environmentally conscious cities.

This month, the city has begun two programs with financing from the Clinton Foundation intended to help owners of homes and businesses to modernize old, leaky buildings to reduce energy consumption.

The city also has an expedited permitting process for builders who use green techniques. Its garbage trucks and street sweepers have emission-control devices. In recent years, it has installed rooftop gardens to collect rainwater, planted a half-million new trees and created more than 200 acres of parks and open spaces intended to clean the air and add bits of beauty.

As for the alleys, the city says the cost of construction is offset by what it would have paid for maintenance and sewer improvements for the old ones.

The new alleys will require maintenance, too, so their pores do not get clogged, but, Ms. Attarian said, “I think they’re pretty price competitive.”

The city pays about $45 a cubic yard for permeable concrete, about $100 less than it did a year ago when concrete plants were just revving up production of the new material, but beyond that is the added expense of the stone filtration layer beneath the concrete. Ms. Attarian said ordinary concrete costs $50 or more a cubic yard. The products look pretty much the same.

With its history of heavy industry and bare-knuckled reputation, Chicago may not seem like the most likely city to exhibit environmental friendliness.

But Mayor Richard M. Daley has said that he wants to make Chicago a green model for the country. A few years ago, he was derided as a tree-hugger; now, other mayors are copying him. “Global warming is not a question,” Mr. Daley said in a recent press release. “How we deal with it is.”

Martin C. Pedersen, the executive editor of Metropolis, a magazine about urban living, said, “Recycling programs are all well and good, but the things that really move public policy and the industry are things like taxes and the building code.”

Mr. Pedersen said Mr. Daley had “made adjustments to both to encourage green building, and that’s a big deal.”

In the past several years, Chicago has also has built 90 miles of landscaped medians and refurbished more than 100 miles of streetscapes.

Michael David Martin, an associate professor and associate chairman of the Department of Landscape Architecture at Iowa State University, specializes in the study of alleys and neighborhoods. Mr. Martin praised what he called “more thoughtful alley design.”

“The alley is not only functional,” he said, “but an educational green landscape that is helping a city experiment with design and different ways to handle water.”

New State Law Requires Installation of Carbon Monoxide Detectors In All Residential Units

 

In 2006, the IL General Assembly passed a new law which requires the placement of Carbon Monoxide Detectors in residences.  This law is effective January 1, 2008.

 

This new law mandates that every dwelling unit must be equipped with at least one

approved carbon monoxide alarm in operating condition within 15 feet of every room used for sleeping purposes.  A dwelling unit, defined as a room or suite of rooms used for human habitation, would include a single family residence as well as each living unit of a multiple family residence and each living unit in a mixed use building.

 

The law does exempt several situations 1) residential units that are in buildings that do not rely on combustion of fossil fuel for heat, ventilation or hot water; and 2) residential units that are not connected in any way to a garage; and 3) residential units that are not sufficiently close to any ventilated source of carbon monoxide.  Building that have electric heat are also exempt.

 

Willful failure to install a detector is a Class B misdemeanor.  Tampering with, or removing, destroying, disconnecting an alarm (except in inspection or maintenance) is a Class A misdemeanor.

Economists: Mortgage problems not fatal for housing market

November 13, 2007

Tuesday, November 13, 2007

By Glenn Roberts Jr. Inman News

LAS VEGAS — The slumping housing market should turn around in 2008 or 2009, the current and former chief economists for the National Association of Realtors trade group said today during a presentation at an annual conference.

Housing markets in Arizona, California, Florida and Nevada were among the hardest hit in the country by the downturn, NAR Chief Economist Lawrence Yun said, noting that some local markets have performed well despite the national trends. Markets such as Salt Lake City; Salem, Ore.; Allentown, Pa.; Seattle; Raleigh, N.C; Albuquerque, N.M.; Buffalo, N.Y., and San Antonio, Texas, have experienced “robust home-price appreciation,” Yun said, counter to the national trend. He also singled out several housing markets that can be considered underpriced, among them Lexington, Ky.; Nashville; Pittsburgh; and Denver, and noted that job growth in Wichita, Kan., makes that market right for a real estate boom.

While NAR’s projection that the U.S. median existing-home price will drop about 1.5 percent this year compared to last year — the first such drop since the Great Depression, Yun said that drop is not alarming given the huge run-up in prices leading to that drop. “Significant? I would say not, but it’s factual.” The economy, while not robust, is not in a depression, he said. The association projects the median price to remain flat in 2008. “This is a small, minor adjustment after a strong run-up in housing prices,” he said. Some high-priced markets, such as San Francisco and New York, where home prices appear to be out of whack with typical income levels for the area, may actually be “superstar cities,” Yun said. These so-called superstar markets, he said, “can maintain, for whatever reason, that premium above the rest of the market.”

It remains to be seen whether markets like Seattle, in the shadow of tech giant Microsoft, and internationally popular Miami may also emerge in this superstar category as markets that seem to defy statistical gravity. Also, he said that the Northeast region, which was one of the first to experience the market downturn, may be on its way out, according to housing data.

Wall Street has been coming clean about the extent of its losses related to the mess in the subprime mortgage market, he said, and that is a necessary step for the market’s turnaround. He also said that he believes talk of the “credit crunch” is overblown, as many buyers are still able to obtain mortgage financing and are moving toward more conventional types of loans. There are still problems, he noted, with obtaining jumbo loans in high-cost markets such as California, and NAR has been lobbying to increase the dollar amount for conforming loans, which would assist some buyers who do not currently qualify for conventional loans and cannot afford jumbo loans. The housing market in 2007 will compare to 2002 in terms of sales, though the volume of sales are expected to be about 1.9 million less this year than they were in 2005, Yun said. This drop in sales, he said, cannot be attributed “to just purely the subprime market disappearing,” he said, and there are other factors such as buyer fear and uncertainty that also must be factored in.

John Tuccillo, a real estate consultant who served as NAR chief economist from 1987-97, said he is less optimistic about the market recovery than Yun, who estimates that things will begin to turn around next year. Tuccillo said that his expectations are for a recovery in late 2008 or possibly 2009. “I see $100 a barrel for oil,” he said. “I see a dollar that is falling like a stone relative to other currencies. The U.S. is forced to borrow up to $400 billion a year from foreign creditors. And that adds up to a slowing economy to me; it adds up to higher interest rates.”

But, like Yun, Tuccillo said that local markets matter more than the national market to real estate professionals. There are some key indicators that can help real estate professionals identify when their local markets are going to turn around, he said, including a drop in new listings, a drop in the days on market, and a rise in the sale price of homes relative to the listing price. “When you begin to see the number of new listings begin to go down, that’s stage one of the recovery,” Tuccillo said.

While some are blaming Wall Street and Fannie Mae and Freddie Mac for the severity of the housing market’s problems, Tuccillo said that mortgage brokers and Realtors should also take a look in the mirror. “How many of you are getting back with the client and taking responsibility for getting them into a bad loan,” he said. There is “moral hazard” built into the system real estate transactions, he said. “Everybody forgot about risk. The system stinks … because at the front-end of the market, people close the loans and walk away with no responsibility and pocket their checks.” When the audience applauded, he added, “Why are you clapping? I’m including you.”

Tuccillo also discussed demographic trends for the next market cycle, and said that real estate professionals are going to need to step up their game to appeal to Generation X and Generation Y buyers. Web sites such as craigslist.org, if they gain more market traction, threaten to take more transactions away from Realtors, he said. “The issue here is getting into and understanding new technologies and new channels of communication. They will become an increasing part of your life. Tinkering with your Web site is not going to do it.” He also said, “You have to make sure that everything you do, everything your agents do, has to be about the customer and not about them.” And consumers are seeking “world-class” service, convenience and efficiency, he said.

Meanwhile, NAR announced today that its Pending Home Sales Index, a forward-looking indicator based on purchase contracts signed in September, rose 0.2 percent from August to September. The latest index is now at 85.7, up from 85.5 in August. An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined in the index and the first of five consecutive record years for existing-home sales. The PHSI in the Midwest rose 5.4 percent in September to 82.3 but is 14.4 percent below a year ago. In the South, the index increased 1.5 percent to 99.3 but is 19.7 percent lower than September 2006. The index in the West slipped 0.1 percent in September to 80.5 and is 25.6 percent below a year ago. In the Northeast, the index dropped 10.1 percent in September to 69.5 and is 23.1 percent below September 2006.

***

A Fresh Perspective

November 12, 2007

 

by Darlene Little  

In a time when there seems to be so much negativity surrounding the realm of real estate, it’s time to start focusing on the positive.

 

National media reports rarely reflect the actual activity in Chicago’s downtown and other urban residential areas.  Despite the jaundiced reports we are hearing lately regarding the market, home ownership is down only 1.2% from its record high in 2004 of 69.3%. 

 

Right now, mortgage rates are especially attractive by historical standards.  At 6.5%, these low rates are driving business.  When priced properly, properties are selling.  For buyers in particular, favorable property pricing and good interest rates represent real value and create exceptional opportunities for the smart investor.  If you are looking to buy and have 5% or more on a down payment, NOW is a great time to buy.

 

At Rubloff, we can guide you through each step of buying or selling your home, from alpha to omega.  Rubloff is teamed with Wells Fargo Home Mortgage to offer you the most competitive rates and programs available.  We have an onsite expert at each of our office locations and usually can approve your application in less than 30 minutes.

 

If you have any questions regarding interest rates, the market, or real estate in general, please do not hesitate to call or email me.  I would be more than happy to counsel with you.

Rubloff Podcast

November 9, 2007
Rubloff Podcast - Residential Porperties

Rubloff is proud to announce the release of our first podcast! We are discussing the residential property market with your host Mark Pullinger. This episode features Howard Weinstein, co-owner of Rubloff, and Jim Kinney, President of Rubloff Residential Properties.

Discussion topics include:

  • The state of the market
  • Is there a bubble that will burst?
  • Trends and thoughts on the Chicago residential Real Estate Market.

Your link to the pod cast: http://rublogg.com/podcast/Rubloff_residential_properties_podcast_01.mp3

Bill Clinton: Green buildings key to fighting climate change

November 7, 2007 3:06 PM PST

CHICAGO–Fighting climate change requires making the nation’s homes, offices, and schools healthier and more energy efficient, former president Bill Clinton told thousands attending the Greenbuild conference on Wednesday. Sweeping efforts to reduce the carbon footprints of buildings, which emit three-quarters of most cities’ greenhouse gases, can measurably benefit the environment, he said.

Making buildings greener is key to fighting climate change, Clinton told a packed audience.

Making buildings greener is key to fighting climate change, Clinton told a packed audience.

(Credit: Gregory Wenzel)

“The sale’s been made,” Clinton said. “Otherwise Al Gore wouldn’t have gotten the Nobel Prize. Now what we have to do is…to prove that this is not a big bottle of castor oil that we’re being asked to drink.”

To that end, the Clinton Climate Initiative has been engaging businesses and leaders of 40 cities to plot ways to reduce carbon emissions. The project launched in August 2006 as part of the William J. Clinton Foundation.

“This is the biggest economic opportunity that our country has had to mobilize and democratize economic opportunity since World War II,” he said.

In partnership with Clinton’s effort, GE Real Estate announced on Wednesday that it will “green” all of its operations, which comprise $72 billion worth of assets and 385 million square feet of property in 31 countries.

Clinton also announced efforts to help make the nation’s schools more sustainable by retrofitting existing buildings to use less energy and fewer hazardous materials. A quarter of American students attend school in dangerous buildings, but renovations can save money and create long-term health and educational benefits, he said.

Clinton noted the efforts of Arne Duncan, CEO of the Chicago Public Schools, and other school leaders from around the country who joined him onstage. Chicago is retrofitting all of its schools to attain certification through Leadership in Energy and Environmental Design (LEED). LEED ratings are run by the nonprofit U.S. Green Building Council, which produces Greenbuild. Other speakers lauding the benefits of sustainable design noted that there are more LEED-certified prisons than schools.

Audience members swarmed Clinton as he left the stage.

Audience members swarmed Clinton as he left the stage.

(Credit: Gregory Wenzel)

Clinton insisted that the United States and emerging superpowers should embrace a successor to the Kyoto Protocol by 2010. Clinton blamed the failure of Kyoto in the United States on both Congress and the Bush administration.

“If the coming giants India and China and those coming behind them–Vietnam Ukraine, all these emerging countries–if they insist on the old industrial society’s patterns of energy use, it is true that the most calamitous consequences of climate change will occur,” he said.

“We have no idea what we can do in terms of reducing greenhouse gases because we just got started.”

Pappas Says Mortgage Companies Try to Frighten Homeowners into Sending Bills to Them

Mortgage companies must pay property taxes out of escrow accounts on time whether or not they have the original bill, Cook County Treasurer Maria Pappas said today.

COOK COUNTY TREASURER 11/7/2007
Mortgage companies must pay property taxes out of escrow accounts on time whether or not they have the original bill, Cook County Treasurer Maria Pappas said today.Pappas said some mortgage companies are trying to get homeowners to send them bills which her office mailed to the owners. The companies are trying to avoid paying a $5 electronic duplicate-bill fee imposed by a recently enacted Cook County ordinance, she said.

“The companies are suggesting that if property owners do not send them their bill, the companies may not be able to pay their taxes on time and the owners then might face late-payment penalties,” Pappas said. “This is misleading.”

Federal law holds mortgage lenders – not homeowners – responsible for late penalties made from escrow accounts.

Pappas gave this sequence of events:

  • In October, the County Board approved a $5 electronic duplicate bill fee.
  • At the beginning of November, Pappas’ office mailed bills for the second installment of tax year 2006 with a Dec. 3 due date.
  • Almost immediately, mortgage companies mailed letters to their escrow clients requesting the bills.

Since 2003, mortgage companies have made more than 600,000 electronic payments per installment to the Treasurer’s Office without bills, Pappas said.

“The mortgage companies know that they still can make electronic payments without an original bill,” Pappas said.

http://www.cookcountytreasurer.com/NewsDetail.aspx?ntopicid=383