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Older homes at The Cliffs at Glassy in South Carolina may soon join newer ones in being environmentally up to date. Developers at the Cliffs Communities have joined a small but growing group that promotes green construction.


    Many of us building our dream homes in the coming years will be looking to include environmentally and financially sound materials and systems.  Our objectives, though, may run up against developers stuck in the old way of building houses.
    A friend of Golf Community Reviews found this out the hard way recently. (I'm not using his real name or that of the community in question since the issues could be resolved in the coming months.)  A few years ago, Jay and his wife Kate bought a nice golf course lot in the community of Analog Mountain.  They had always intended to build as "green" a house as possible, including environmentally neutral materials throughout.  Recently, they

Some "preferred" builders are actually mandatory to use."

decided that, even though they are both still working, they would build the home at Analog and use it as a vacation place for themselves and their children until retirement time, when they would move there full time.  Jay is a golfer, and Analog has a terrific 27-hole layout.
    Then the couple ran up against a brick wall, in a manner of speaking (most of the homes in Analog are brick).  The developer provided them with the list of its preferred builders, just a half dozen, one of the shorter lists I've encountered.  Other communities maintain lists of up to 20 or more, if they have any such list at all.  To make matters worse for Jay and Kate, Analog's "preferred" actually means mandatory.  You must choose from among the limited number of builders on Analog's list.   
    Developers will tell you that they rely on a preferred list to ensure control of the building designs and exterior materials, to keep the architectural style of homes pure and indigenous.  That is a bit misleading since virtually all communities maintain architectural review boards (ARBs) for such purposes.  These boards comprise homeowners as well as the developer's representatives.  The more likely explanation is that developers can control the contractors' pricing by restricting choice; the builders are virtually guaranteed work throughout the
"If developers don't start building green, they will be out of business in five years." -- Adam Ney

year, in exchange for which they offer sharper pricing which the developer can tout in marketing materials.  That works in theory but, as Jay and Kate found out, not in practice if you want to build a green home.
    The couple interviewed the six preferred builders at Analog. They were surprised to learn that none of them had ever built even a partially green home.  A few said they would be happy to build the home but they would have to charge Jay and Kate a premium to call in more experienced green sub-contractors.  As you can imagine, the couple wasn't thrilled to learn their builders would be learning on the job and being paid extra by Jay and Kate for the training.
    Adam Ney thinks such contractors are way behind the times.  Adam is co-founder of AuctoVerno, LLC, a green-building marketing services firm in Connecticut and promoter of sustainable construction.
    "Residential green construction is gaining momentum," Adam says. "[Developers] think the cost is way too high, but it is not so and there is a ton of low hanging fruit...like eco-friendly paints, [which] are the same price as traditional paints.  And while most developers think that going green will cost anywhere from 15-20% more than the traditional spec, the World Business Council on Sustainable Development released a report recently that says the upfront costs are really 5%."
    Adam adds that the payback for an owner of a green house is 16 to 24 months, and that Moore's Law -- every 18 months technology costs are cut in half -- points the way to much more affordable green materials in the next few years.
    Jay and Kate's initial pleas to the developer to bring in the couple's own green-savvy builder have been rejected.  Although they have contemplated legal action, they know that even if they win the battle, they could face obstacles ahead from the developer and, potentially, their neighbors who might thumb their noses at the prospect of solar panels and other architectural details at odds with current community standards.  That would be no way to start a life in a new place.  A little patience may be on their side as developers catch up with more and more of their customers.
    Indeed, a few golf course communities, like The Cliffs in the Carolinas, have extended their efforts beyond the Audobon friendly practices on their golf courses to green construction of their homes.  Adam Ney thinks more and more communities will join them.
    "If developers don't start building green," says Adam, "they will be out of business in five years because every development around them will be green."
    If you are interested in learning more about green building, visit the AuctorVerno web site at BuildingCTGreen.com.

     My brother Bob, a financial manager and strategist, has identified eerie similarities between the swirling steroids controversy and the state of the U.S. economy.  After reading a note he sent me the other day (see below), I recalled the story of Lyle Alzado, former Oakland Raiders football great.  Alzado met a horrible demise in 1992 after years of rampant steroids use, which he chronicled in Sports Illustrated a few months before

Paulson, Bernanke, Clemens, Bonds...it's all the same thing.

his death.  "It wasn't worth it," he wrote of his decades long use of performance enhancers. "If you're on steroids or human growth hormone, stop.  I should have."
    Paulson, Bernanke and the other managers of the U.S. economy might also heed Alzado's advice.  With only the lightest of editing, I outline Bob's thoughts below:

    The human body has natural limits, natural ups and downs. The use of steroids is always going to lead to blowback because it interferes with the body's natural rhythms in a fundamentally unhealthy way.  Steroids aren't about improving nutrition or enhancing the immune system; they're about goosing performance.
    The economy too displays natural cycles and rhythms, the dominant one being the business cycle.  But about 15 years back, Alan Greenspan and the financial leaders of our country started messing seriously with the natural cycles of the economy in a bid to alleviate us of any economic pain -- i.e. recession -- in much the same way steroids are supposed to alleviate physical pain, speed "recovery" after workout, improve peak performance...even the vocabulary is similar.
    Cue the Moral Hazard, the Federal Reserve's message to take all the risk we want because, if the shit hits
Bonds hit the wall, just as the economy is doing after one-too-many goosings.

the fan, the Fed will spread the risks and bail us out.  Those of us who are more responsible are effectively taxed to help pay for everyone else's foolishness.
    Cue also the dot-com bubble, cue the breakneck lowering of rates 2000-2002 -- a bone-headed decision which led to the real estate bubble and bust -- and cue the sub-prime debacle leading to another round of interest rate cuts and phony bailouts which will just deepen and prolong the pain.  Barry Bonds was not faking when he complained about how hard it was to get out of bed in the morning in the last few years.  And his home run production plummeted after a certain point.  He hit the wall, just as the economy is doing after one-too-many goosings and a natural "aging" of the expansion.  We should not feel too sorry for Barry, but the long-term effects of steroid usage can be pretty nasty.  
    Henry Paulson, Ben Bernanke, Roger Clemens, Barry Bonds...it's all the same thing; manipulation and denial with the aim of the enrichment of the powerful (individuals and institutions) and screw the rest of us.  And the SEC has simply looked on until it's too late, as has professional baseball.
    Clearly the man in the street is responsible for taking on all the debt that was pushed like a drug.  But the economic "leadership", unaccompanied by any sense of a moral compass, has played a major role in putting us here.