Urban Development & Finance Blog

Scott Chaplan Leads Capacity Building Series

noreply@blogger.com (Urban Development & Finance) — Tue, 05 May 2009 13:11:00 +0000

Scott Chaplan, Executive Chair of the Urban Group of Companies, was a featured speaker at "The How To's of Faith and Community-Based Non Profit Development & Management" lecture held at the Federal Reserve Bank of San Francisco Los Angeles Branch. The event was presented by the Levital Network Education Foundation and took place on Thursday, April 30 in dowtown Los Angeles.

Mr. Chaplan, an active faith based and non-profit practitioner who serves on numerous boards of such groups in Los Angeles, has spent 15 years building the Urban Group of Companies into a diversified equity investment and services company with 104 employees and over 40 properties within 5 states. Urban companies that directly serve the faith-based and non-profit spaces include Urban Seminars and Urban Consulting.

Mr. Chaplan, a lawyer by training, was a panelist for the first seminar, "Non-Profit Development - Understanding the Procedure, Purpose & Principles" on which he spoke of the legal purposes for incorporating a non-profit organization, whether sacred or secular, and the procedures and principles that should guide an organization through the process. He brings a wealth of knowledge and expertise to the discussion, having helped form and having served on the founding boards of directors of several secular and faith-based non-profit organizations.

Green Jobs for a Green Economy

noreply@blogger.com (Urban Development & Finance) — Wed, 11 Mar 2009 19:07:00 +0000

The US Green Building Council has a great resource for understanding and enhancing the creation of jobs through sustainable building, especially the LEED Program. Check it out here, and at the Green Economic Recovery Resources page

- Norris Lozano

The second bottom line at work: Green Jobs in California

noreply@blogger.com (Urban Development & Finance) — Wed, 04 Mar 2009 14:05:00 +0000

This story in the Sacramento Bee highlights the importance of developing the green economy in California. A huge wind farm in Solano County was just unveiled last Thursday. Shiloh II will has the capacity to deliver 150 megawatts of electricity through its 75 massive GE wind turbines, each of which is 30 stories tall and can generate 2 megawatts of power per day. The Bee story was a bit about renewable power and a lot about the power of the green economy to renew lives.

An interesting side story to the launch of the wind farm was that renewable power was also used to power the event. Take a look at this news footage (and here) and note first that the stories feature those who were laid off in the finance and real estate industries, and were able to find work in renewable energy.

In the first, note where each of the interviews takes place: in front of Mobile Solar Power Systems(TM) that were provided by Pure Power Distribution of Santa Monica, another example of the green economy putting people to work.

New Markets Tax Credits

noreply@blogger.com (Urban Development & Finance) — Sun, 08 Feb 2009 13:52:00 +0000

Now that the NOAA (Notice of Allocation Availability) has been published for the seventh annual round of the New Markets Tax Credits program, we and our tax credit industry colleagues share optimism amidst concern in the current economic environment. Tax credit investors require profits to claim the credits, and profits at many of the industry's biggest investors have fallen precipitously. Some of the biggest industry participants are out of the market altogether.

We are encouraged, however, to see that the 2008 allocation round may be enhanced retroactively by $1.5 billion, and the 2009 round may be enhanced by $1.5 billion as well. �This demonstrates the government's confidence in the program, in which Community Development Entities have raised $12.6 billion in equity since its inception in 2002.�

We support the NMTC program wholeheartedly, as even a relatively moderate allocation (by program standards) of $11 million in NMTCs has proven to be strong fertilizer for projects in some of the most economically underserved areas of South Los Angeles, namely the Bethany Square project. Bethany Square and other projects in the immediate area will only succeed with the kind of private investment enhancement that NMTCs provide.�

Green Jobs Create Economic Energy

noreply@blogger.com (Urban Development & Finance) — Thu, 18 Dec 2008 13:40:00 +0000

In a recent story, "Up on the Roof, New Jobs in Solar Power", the New York Times reports strong economic activity in the renewable energy sector. And despite the downturn, many in the industry predict continued growth.�

Barry Cinammon, CEO of Akeena in California, anticipates that his solar business "will increase 40 percent from last year."

This anecdotal evidence corroborates what The Solar Energy Industries Association reports in its "Blueprint for Job Creation and Economic Security", (updated December 11, 2008) which outlines how the solar industry, in particular, has the potential to create "more jobs, per Megawatt, than any other source of energy."

The jobs potential for renewable power industries is especially strong in the inner city, according to Van Jones�of the Ella Baker Center who, along with Majora Carter of the Majora Carter Group�has started an organization called Green for All.�

Green For All is a strong proponent of "green collar jobs" which can be channeled and encouraged in the inner city, which has a disproportionately high unemployment rate - and therefore a high number of trainable men and women who are ready to work in all facets of growing renewable energy industries - manufacture, installation, design, sales, leasing, you name it.

Check out the Green Jobs Guidebook that was created in collaboration between the Environmental Defense Fund and the Ella Baker Center.

�- - Norris Lozano

Governor Schwarzenegger sets Renewable Portfolio Standard target

noreply@blogger.com (Urban Development & Finance) — Wed, 19 Nov 2008 17:27:00 +0000

We commend California Governor Schwarzenegger for his effort to streamline the permitting process for renewable energy solutions in California. Last week, the Governor signed Executive Order S-14-08 to "compel the California Energy Commission and the Department of Fish and Game to work more closely on dealing with conflicts between renewable energy developers and environmentalists over building power plants and transmission lines." The story was reported across the state and the nation, as it also raises the requirement for utilities to provide 33 percent of utilities' electrical power to come from renewable sources by 2030. The current law requires 20 percent by 2010. With this new law, California jumps further to the fore in the renewable energy field which, by many predictions, has the potential to generate thousands of new "green collar" jobs in the United States.

- Norris Lozano

Heal the Bay, South LA

noreply@blogger.com (Urban Development & Finance) — Tue, 14 Oct 2008 00:37:00 +0000

Heal the Bay is an organization I have been interested in for some time. It was founded on the simple premise that Santa Monica Bay, which in 1985 was suffering from some of the highest levels of contamination found anywhere among US coastal waters, represented the health of the entire ecosystem of the area. Heal the Bay, Heal our City, is the underlying message. They have a great website, a huge membership, and do excellent research and community outreach.

On its website, Heal the Bay highlights a positive development from the LA City Council earlier this month. City Council has passed three far-reaching ordinances: Low Impact Development, Green Building and Drought Tolerant Landscaping. In the context of Heal the Bay, these new ordinances pull our work at Urban Development & Finance into sharp focus.

Quoting the site, the ordinances rule that:

+ All new developments must install smart irrigation controllers for landscape irrigation
+ In 2010 all buildings above 10,000 square feet and greater must be LEED certified those developments above 25,000 square feet or higher than 75 feet must receive LEED Silver certification
+ All new developments must consume at least 15% less energy than required by 2005 state efficiency standards
+ A minimum of 75% of total landscaped area shall be plants that are drought-tolerant. Only 25% of the landscaped area can be turf.

Our goals for two significant projects in South LA (Montclair West Adams and Bethany Square) are to exceed these standards. And when we do, we hope the effects are felt all the way to the Coast.

- Norris Lozano

From the ashes... a solar tax credit bill

noreply@blogger.com (Urban Development & Finance) — Fri, 03 Oct 2008 19:46:00 +0000

It's been one of the wildest months in financial history, and watching the Energy Improvement and Extension Act of 2008 go down in flames was one among many shocks. The benefits that can pour forth from these stimulus programs are extraordinary in any market conditions, not the least of which are a great leap forward in America's technology leadership, "green collar" jobs, a reduction in emissions, and reduced dependency on foreign oil.

So it was a surprise and relief to see the bill come back to life as part of the $700 billion relief package, passed by Congress and signed by the President this week. Many of us who are involved in green buildings and renewable energy development are looking forward utilizing these important tools to help create a triple bottom line opportunity within all of this economic turmoil.

-Norris Lozano

Senate votes to extend Solar, R + D credits

noreply@blogger.com (Urban Development & Finance) — Wed, 24 Sep 2008 12:32:00 +0000

I am excited to report that the $17 billion Energy Improvement and Extension Act of 2008 has been passed by the US Senate by a vote of 93-2. The House still has to approve the renewable energy credits portion of the bill. Reuters reports that the White House said Tuesday morning that it will sign the legislation.

The Act, part of a major tax relief bill, extends investment tax credits for the solar power industry for 8 years until 2016. The Act also benefits homeowners who install solar or wind systems on their homes, eliminates�the $2000 cap on residential systems, and allows utilities to utilize the commercial credit.�

Also, the Act allows those taxpayers who trigger AMT to take the solar credit. The Tax Policy Center estimates that roughly one in three tax payers could trigger AMT by 2010.

�� -Norris Lozano

Read an article on the Senate action�here.

Light It Up

noreply@blogger.com (Urban Development & Finance) — Tue, 16 Sep 2008 16:09:00 +0000

As many are aware, deployment of new technologies for production of renewable energy is potentially the largest economic opportunity in the United States. The triple bottom line benefits for US business owners, workers, homeowners, school children, etc. are extraordinary. �An article that appeared in the Wall Street Journal online�expands on this compelling foundation: extension of the Solar Investment Tax Credit is estimated to produce more than 1.2 million employment opportunities, including 440,000 permanent jobs, and $232 billion in investment in the US alone.�We urge members of Congress to pass this critical legislation without delay.

�� - Norris Lozano

Proverb

noreply@blogger.com (Urban Development & Finance) — Thu, 04 Sep 2008 21:33:00 +0000

Here's a proverb I like:

"When the sun comes up, the gazelle wakes up knowing that it must outrun the fastest lion or it will be eaten. The lion knows it must outrun the slowest gazelle or it will starve.

So it doesn't matter whether you're a gazelle or a lion, when the sun comes up, you'd better be running"

�� -Norris Lozano

ecoAmerica Ranks Green Colleges

noreply@blogger.com (Urban Development & Finance) — Mon, 01 Sep 2008 16:53:00 +0000

It's been a great pleasure and honor for me to serve on the board of ecoAmerica, a non-profit that helps connect relevant environmental concepts and actions with Americans' everyday concerns. Two recent successes by the group are noteworthy: the GreenCareers program and the Princeton Review's Green Ratings initiative. GreenCareers represents a partnership between MonsterTRAK, Environmental Defense and ecoAmerica, and delivers the first environmentally responsible recruitment website for college students and recent graduates, to help students secure jobs with companies that positively impact the environment. The Green Ratings initiative rates each of the colleges shown in The Best 368 Colleges, 2009 Edition, based on its environmental performance. 11 of the 369 colleges reviewed received a 99 point rating (out of 100) - what's even more gratifying is that these schools are diverse geographically, in size and educational focus. The movement toward environmental sustainability on college campuses is diverse, vibrant and one hopes, a new source of pride and inspiration for young people.

�� -Norris Lozano

Lozano Lauds Housing Bill

noreply@blogger.com (Urban Development & Finance) — Thu, 21 Aug 2008 01:22:00 +0000

I spoke recently with Norris Lozano, CEO of Urban Development & Finance, about the potential impact of the�Housing and Economic Recovery Act of 2008. Here is a portion of his response:

Lozano: I am not a partisan of one particular party; I am only interested in sustainable development in low-income communities. Which is why I applaud all members of Congress who worked together to pass the Housing and Economic Recovery Act of 2008, especially the enhancements to the Low Income Housing Tax Credit (LIHTC) program. People who live and work in South Los Angeles will benefit from this important legislation.

"It is absolutely critical to use all possible tools to encourage private investment in urban neighborhoods in need. Tax credits such as LIHTC and New Markets Tax Credits�are great examples. When used effectively, they can be structured to produce a triple bottom line: economic incentive (first bottom line) which in turn generates social benefits (second bottom line) in low-income communities - jobs, new construction, parks, schools, healthcare facilities��- and also allow cost-savings which open the door to investment in sustainable design. I've worked hard to bring these benefits to projects in Portland, Los Angeles, Chicago, New Orleans, and New York City.

"It is important for Congress to move quickly to pass HR 6049 Energy and Tax Extenders Act of 2008, which will continue to stimulate investment in renewable energy."

�� -Christopher Smith

LEED in LA

noreply@blogger.com (Urban Development & Finance) — Mon, 18 Aug 2008 01:23:00 +0000

This spring, the City Council of Los Angeles passed Municipal Codes 16.10 and 16.11, effectively requiring that all buildings of at least 50,000 square feet or 50 units to follow LEED greenbuilding standards, with a goal of reducing carbon emissions in the city by more than 80,000 tons by 2012.�

Urban Development & Finance, LLC applauds this courageous action, as it will lead to more environmentally responsible building activity in LA, and a higher quality of life for people who live, work and play in these structures. As most in our industry know, LEED stands for Leadership in Energy and Environmental Design, and is the de facto standard for energy efficient, ecologically sensitive design and construction in the United States. The benefits of greenbuilding�(.pdf) are well-documented and include better indoor air quality, savings of energy and natural resources, worker productivity, increased sales, higher test scores in schools.

We support this action as it is in line with our mission and values as a triple bottom line development and financial services firm. In the past 4 years, I have had to good fortune to lead teams in structuring and providing key financing for over $650 million in greenbuildings in Portland and Los Angeles, including the Gerding Theater at the Armory, the first building in Oregon, and the first building on the National Register of Historic Places, to achieve a LEED Platinum rating. Seven commercial projects in all, comprising 10 buildings. In addition, over the past year, I started a solar power initiative that has already borne fruit utilizing tax credits and other financial instruments to bring plentiful, renewable power to large scale facilities.�

We look forward to exceeding the Los Angeles LEED requirements on each project we finance and develop here in Los Angeles. Our first two large scale developments, Bethany Square and Montclair West Adams, are both targeting LEED Gold, and are planned to include Senior Affordable Housing over commercial and community space. Both of these projects are located in extremely economically distressed areas. As in the past, we will continue to structure tax credits, and other sources of public and private financing to provide triple bottom line benefits to investors, the communities, and the environment.

�� - Norris Lozano

Bill Hayward's Leadership

noreply@blogger.com (Urban Development & Finance) — Thu, 14 Aug 2008 16:12:00 +0000

I read this week in the Monterey County Herald that the Monterey County Business Council has granted its first Green Public Public-Private Partnership Award to Hayward Corporation and The Sustainability Academy for the EnviroSmart Program, which identifies environmentally preferred building materials. This award is a great honor for Bill Hayward and his company, and offers but a glimpse into what Bill has accomplished in the areas of sustainable forestry, greenbuilding, and sustainable product development over the past 15 years. As head of a California lumber company, Bill easily could have paid lip service to the environment while relocating operations to areas where ecological concerns are lower. But Bill is a Californian, and a man of deep personal commitment (that his title includes Chief Sustainability Officer�is telling). He says, "We recognize the opportunity, accept the responsibility, and will lead the journey to environmental stewardship." Chairman of the Board of the Forest Stewardship Council - US Division, and creator of several lines of sustainably produce products, Bill has also built the first LEED Gold truss manufacturing facility. Hayward walks the walk from FSC products to green building results. Congratulations on the recognition from the business community, Bill.

�� - Norris Lozano

NH&RA follow-up

noreply@blogger.com (Urban Development & Finance) — Fri, 25 Jul 2008 19:41:00 +0000

The NH&RA Conference was a tremendous success from my perspective, and I commend Peter Bell and Thom Amdur for the excellent coordination of panelists, guests, and the Santa Fe setting - well done!�

I was particularly inspired by John Clawson and the work he's doing in the San Francisco Bay Area with structuring financially complex, highly environmentally sustainable projects.

I had the interesting experience of learning more from my panel than I brought to the table. Greg Doran was great as always, and Herb Stevens really sets the bar as far as I'm concerned. The enthusiasm with which he speaks about issues of new markets tax credits, deal structuring - and now Energy Tax Credits - is fun to be around.

My presentation is here for those who might be interested.

- Norris Lozano

/NH%26RA_7_Final.pdf

Leveraging New Markets Tax Credits for Land Acquisition & Predevelopment Costs

noreply@blogger.com (Urban Development & Finance) — Wed, 23 Jul 2008 00:28:00 +0000

The National Housing & Rehabilitation Association is holding its Summer Institute in Santa Fe this week, which will give me a great opportunity to talk about three important issues: urban development, sustainability, and how to pay for both.

I'll be speaking on a panel entitled, "Leveraging New Markets Tax Credits for Land Acquisition & Predevelopment Costs" with two colleagues whom I respect a great deal: Herb Stevens and Greg Doran of Nixon Peabody.

The Bethany Square project's acquisition and predevelopment expenses were partially financed utilizing an $11 million allocation of New Markets Tax Credits. The project, which we will discuss on the panel, is located in one of the most economically underserved neighborhoods in South Los Angeles (perhaps the US), about a mile from where the 1992 riots began. As many know, there has been no meaningful mixed-use development in the area in decades.

The project has the strong support of the Community Redevelopment Agency, the City Council, and is featured in the South Los Angeles 5-Year Plan, which is signed by the political leadership of the City of LA.

A key facet of our plan is to develop the project to LEED standards. For the last 6 years I led a team that structured and closed over $650 million in green buildings up to LEED Platinum - so we know how to do this, and we know how to finance it.

Which is where these topics - urban development and sustainable design - come together. Developing sustainable mixed-use real estate projects generates tax credits and other subsidy that help push the green features to higher and better levels. The benefits to investors, owners, tenants and users are broad and long lasting. Win - win - win - win.

I am looking forward to seeing colleagues and industry friends at this conference - there's much to be done together.

- Norris Lozano