CM Real Estate Development (CMRED) is a rehab and redevelopment company based in Chicago that focuses on redeveloping high-quality, single-family homes and bungalows in Chicago's western suburbs while maintaining a strong commitment to green standards and environmentally-sound construction practices. CMRED's renovations preserve historic features like wood work and wood doors while modernizing the homes with green features, such as low flow plumbing, energy efficient appliances and HVAC systems. The company reuses building materials and utilizes local recyclers that recycle up to 95% of the waste generated during reconstruction. The homes are priced affordably with selling prices in the low-to-mid $100,000's.
Chris McAuliffe is a speaker for the U.S. Green Building Council-Illinois and an expert on green development, environmentally friendly construction, and local, state, and federal tax incentives for green homes. We spoke to Chris as he was finishing a green rehab on a vintage brick bungalow that is slated to be the first National Association of Home Builders (NAHB) Green-Certified rehab in Illinois. The rehab was financed by Green Choice Bank, the Midwest's first community bank dedicated to a more sustainable world with values that enhance environmental, social, and financial well-being.
How many rehab projects have you done so far?
The current one is the sixth house. We now have a team in place so every house will be either NAHB or LEED Certified. The first five were a work-in-progress, although we were tuned in to energy efficiency, but they did not get third-party certification. Our current rehab will be certified under the NAHB Green Building Program and be the first NAHB-certified rehab in Illinois. Our HERS [Home Energy Rating System] rater just did a blower door test and identified areas that needed some work on the energy efficiency. We are adding some extra insulation and so forth to get the level of certification we need. The house will certainly be one of the most energy efficient ones in the area.
The NAHB green certification seems to be taking off relatively slowly in the single family residential market. Even LEED for Homes does not really seem to be exploding in residential sector compared to commercial. What is your perception of that?
Originally, I called NAHB to see who else in Illinois had gotten a green rehab designation to get advice and they said there were not any homes rehabbed under their program yet. The NAHB had a total of 16 new construction certifications in Illinois, but no rehabs were done under the program. It think it is important, whether it be NAHB or LEED or having energy efficiency measured via a HERS rating -I feel it is important to have a third-party certification of some sort to verify claims by the builder. It is critical to have this credibility.
Is the NABH certification making your new rehab more expensive than the other homes you renovated?
The price of $129,000 for the new home we just renovated is the same price as other homes that are selling or were sold on that block. We can buy homes from estate sales or REOs so you can build green into your cost structure and get a certified energy- efficient home for a price that a vast amount of homeowners can afford.
Tell me a bit about the process and features of the green bungalow project you're finishing now.
We used no-VOC paints, a soy-based, all-natural paint and varnish remover, installed a tankless water heater, Low-flow faucets, FSC-certified kitchen cabinets, ENERGY STAR-rated appliances, and low-water landscape plantings
And you're working with the Green Choice Bank to help fiance your green rehab projects.
The bank opened in February 2011. It does environmentally-conscious and socially-conscious lending. They lend locally and support green entrepreneurs and builders. They focus on environmentally sustainable projects. The loan officers are LEED accredited. The founders purchased the existing bank called Family Federal Savings of Illinois and changed its mission. They are opening a new branch at the Green Exchange Building in Chicago that has a green tenant focus. Our new Mayor Emanuel just did a press conference at the Green Exchange Building with Green Choice bank and talked about the Green Exchange and incentives offered to get green projects off the ground. Having a bank like this to work with is a weight off my shoulders. Before, I was working on my own. To have financing in this lending climate and to have them get the green focus is so invaluable. It is nice to have bank that understands green building and supports you.
Do you plan to add renewable options to your rehabs in the future?
Yes, this is in the works-certainly rainwater-collecting and some solar systems on the roof. These are two things to focus on with the next properties.
So how green is Chicago compared to other cites?
Well, maybe we are a little ahead of the curve. Our last Mayor Daley was very into green and the city mandated a lot of green initiatives and building practices. I am very involved in the USGBC chapter here. We have a really great chapter. We have more LEED-certified buildings than anywhere in the U.S. We also have lots of open space here, especially on the waterfront, and when it comes to that kind of planning, Chicago is very livable. When the city provides leadership, it really helps.
Paul McGinniss, "The Green Advocate," is a columnist for www.newyorkhousemagazine.com. You can read more about green building and the sustainability movement on his blog: www.thenewyorkgreenadvocate.blogspot.com. Paul is also active in the green real estate movement and works in New York as a real estate broker and green building and renovation consultant: www.paulemcginniss.com
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