CEO of affordable housing nonprofit cherishes beating the odds

EAH Housing CEO Mary Murtagh

In an industry in which five out of every six projects never get off the ground, Mary Murtagh still loves her job and can laugh about it.

“Affordable housing is Murphy’s Law incarnate,” says Ms. Murtagh, who has been with the affordable housing organization EAH Housing for over twenty five years. “Anything that can go wrong will go wrong.”

Mary Murtagh on the balcony of one of EAH’s affordable apartments.

 

As its president and CEO, Ms. Murtagh is the force behind EAH, which has built or renovated nearly 1,400 units of housing in the North Bay, and over 5,000 total in 12 counties and two states- California and Hawaii during her tenure with the San Rafael-based nonprofit. The agency is Marin County’s largest affordable builder, and second-largest in the North Bay to Burbank Housing.

The nonprofit EAH used to be known as Ecumenical Association for Housing, owing to its faith-based roots. The company employs about 350 people, the majority of whom work in Marin County.

Ms. Murtagh grew up in rural New Hampshire, near Dartmouth College. She’s a self-described former hippie, who now loves to build infill developments that are good for the environment. She has an undergraduate degree in art history and philosophy from Wellesley College in Massachusetts, and a master’s in architecture from the Massachusetts Institute of Technology. Those degrees, she said, did not prepare her for what she would encounter at a job with the Los Angeles Redevelopment Agency where she grew interested in real estate development – specifically finance.

“Up until then you can kind of picture me as a totally naive rube wandering around with my mouth open,” she said. “The first time I went to New York though, I thought the whole thing was a terrible mistake and a terrible thing to do to the planet. And when I finally started studying real estate finance, it suddenly all became clear … I started to understand the city and urban economics.”

In Los Angeles, Ms. Murtagh became what she says was the translator between the real estate office at the Redevelopment Agency and the Office of Housing and Urban Development in Washington. And when the first grant she ever wrote – to expand a Pep Boys in inner city Los Angeles – was funded, Ms. Murtagh said she felt like she was empowered to effect change.

Ms. Murtagh moved to San Francisco in 1984 and worked for a political consulting and market research company. While there she helped orchestrate the approvals for the renovation of the Arlington Hotel, a residence for recovering alcoholics still viewed as a model development in San Francisco’s Tenderloin district.

In 1986, she was hired to direct EAH, an affordable housing organization that at that time was licking its wounds from two money-losing projects and considering getting out of the building business altogether.

EAH Housing CEO Mary Murtagh celebrates the opening of the largest affordable housing solar installation in the nation.

“Obviously, that was a serious issue but I said to them, ‘If you don’t want to build anything, don’t hire me. That would be a mistake for both of us because I love to build things,'” she said. “The smell of sawdust is what makes my day. That and curing concrete.”

Ms. Murtagh set out to make her first big project at the head of the organization a success. She negotiated for two acres on Corte Madera Creek and you can hear the pride in her voice today when she talks about it.

She said 760 people applied for residency in the 28-unit development that turned out “beautifully.”

“Opponents compared it to the Exxon Valdez during the hearings,” she laughs. “And I was getting my feet wet and finding out what opposition meant in Marin County.”

Setbacks are a fact of life when it comes to building almost any kind of housing, including affordable units.

“You have five deals fall through for every one that ever sticks. Maybe more,” she says. “I don’t try and think about that ratio. It’s too discouraging.”

She said in her over 20 years with EAH, affordable housing hasn’t gotten any easier. Getting the approvals is still just as difficult. Opposition is as vocal, if not more. Funding is hard to coordinate and unexpected things change.

CEO Mary Murtagh accepts an award on behalf of EAH Housing.

And just when she says she feels like she’s “trying to sweep the ocean back with a broom,” something encouraging will happen, like the passage Proposition 1C, which opened up $2.9 billion for affordable housing.

Ms. Murtagh said her future attention will be on continuing to strive for a permanent state funding source and more partnerships with private developers.

EAH Housing announces Shelter Hill is going green

EAH Housing recently announced extensive energy upgrades to Shelter Hill to make the complex more sustainable.

Affordable housing is going green as solar retrofitting and other efficient technologies are being utilized in the refurbishing of a complex in Mill Valley. Shelter Hill, a 75-unit housing complex in Mill Valley managed by EAH Housing, is going solar starting this month. The solar installation will provide predictable energy bills and reduce the utility costs paid by the residents each month.
The complex, which hosts four four-bedroom, 40 three-bedroom and 27 two-bedroom apartments, also includes a community room with a kitchen, a computer learning center and outdoor play areas for kids.
Of the 275 to 300 residents who call Shelter Hills home, many are lower income or living on fixed incomes. Reducing the ever rising energy costs will provide a welcome reduction of out of pocketing heating, cooling and electrical costs, EAH officials said.
Built in 1975 and in need of a redo both aesthetically and to bring the property up to modern standards, the planned greening of the complex was something EAH was very interested in.
“It is a mission of our company. We want to make the units green as we can as well as the common areas as it benefits everybody,” EAH project manager Dave Egan said.
The upgrades will include a new solar electricity system, which will be installed by Berkeley’s Sun Light & Power. It is made up of 138 Trina 280W solar modules on the roofs of the buildings.
The cost of green rehab pays for itself in utility savings while reducing energy usage by 25 percent for the entire property. Each unit will be installed with hydronic heating and cooling systems, energy efficient double glazed windows, low flow water usage toilets and new refrigerators.
Sun Light & Power has installed solar electricity as well as solar hot water systems at other EAH Housing communities. The company recently completed its largest affordable housing solar installation Crescent Park in Richmond.
“Shelter Hill was a property built in the mid 1970s in southern Marin. It has been operating as affordable housing ever since. Now it is time to refresh the property to bring it up to modern standard,” Egan said.
The property will also be getting other upgrades as part of the redo which will consist of the installation of energy efficient appliances, high-efficiency water heaters, dual-pane windows, water-saving fixtures and native-plant landscaping. Over half of EAH properties have been retrofitted with green technologies and the other half have received energy use audits.

This article originally appeared in the Mill Valley Herald.

Solar’s Year of Action in the US

Utah, USA – May 9 was a big day for the solar industry. Forget big — huge. It’s a rare occasion when the most powerful person in the world takes to the bully pulpit to sing the virtues of a particular industry, and even rarer when that praise is backed up by action and dollars. But that’s precisely the gift that advocates of the U.S. solar industry were given when President Obama announced a massive, $2 billion federal funding package in combination with executive orders and hundreds of private and public sector commitments to drive forward one of the most rapidly growing renewable energy industries in the nation.
Breaking Down the Plan
The President’s five-point plan will be bolstered by executive actions that will drive investments in solar energy upgrades for government and private sector buildings, improve appliance efficiency standards, strengthen commercial building codes, encourage innovative financing, and create jobs by developing a skilled solar workforce.
In answer to the call — and in answer to the increasing demand for more widespread availability and improved affordability for solar energy — more than 300 organizations across the private and public sectors have announced commitments that fall in lockstep with the President’s vision to make 2014 “a year of action” for solar. The organizations include affordable housing developers, rural electric cooperatives, state and local governments, and a variety of retailers in the commercial sector. In combination with a number of stated administration initiatives, the commitments made will result in the deployment of over 850 MW of solar energy. They will also result in investments in energy efficiency that will decrease carbon pollution significantly, save billions per year on energy bills, and ready tens of thousands of prospective job seekers for careers in the solar industry.
Rhone Resch, President and CEO of the Solar Energy Industries Association (SEIA), called Obama’s announcement “the most significant speech the President has ever made about solar” and said it would go a long way toward educating the public about the many successes of the industry and how corporations around the country are embracing it.
Resch added that he believes the projected 850 MW of solar deployment that will result from the President’s announcement is just the tip of the iceberg. “These are programs that will have multiplying effects and could result in literally tens of gigawatts of solar deployment,” Resch said. “The list of companies is going to grow massively. The amount of commitments will also continue to grow.”
Minh Le, director of the Department of Energy’s SunShot Initiative, said the large number of announced private sector commitments — including those from corporate giants like Walmart, The Home Depot, Apple and Google — are crucial to demonstrating that solar investment has come of age as an energy alternative that makes strong business sense.

“This really highlights the underlying premise of the SunShot Initiative,” Le said. “When the initiative was launched, we posited that in order for solar to be a pervasive part of our nation’s electricity supply, it has to make economic sense. We’re seeing that now. We’re seeing businesses make those commitments to use more clean energy. Likewise, we’re seeing more homeowners make those commitments.”

Tackling Increased Solar Deployment through Innovative Financing
In the President’s speech, he announced that five leading financial institutions — Citi, Goldman Sachs, Boston Community Capital, and the Clean Energy Finance and Investment Authority of Connecticut — have committed to large-scale investments and the development of innovative lending programs to further solar deployment. Boston Community Capital and Connecticut’s Clean Energy Finance and Investment Authority will each focus on funding and developing solar projects in their respective states, while Citi and Goldman Sachs have said they will focus their efforts on nationwide solar investments through certain financing mechanisms and the formation of partnerships with private and public entities.

Walmart and SunEdison completed the installation of new solar power panels on the Walmart store in Kapolei, HI. Walmart is one of the of the many commercial sector leaders that made solar commitments as part of Obama’s Year of Action solar speech. Credit: Walmart.

But it’s the inroads being made on the federal side that Resch believes could prove the most impactful when it comes to fostering exponential growth for the U.S. solar industry. This includes building on the proven success of the Defense Department’s renewables program by enabling the General Services Administration (GSA) — which owns and operates all federal government facilities — to take advantage of innovative financing options that will lower energy costs and increase renewable energy production through the sharing of resources.
“What this means is third-party ownership,” Resch said. “This would allow the biggest energy consumer in the world to be able to use some of the more innovative financing techniques developed in the solar industry to deploy literally gigawatts of solar on government-owned facilities throughout the country — from federal courts, to VA hospitals, to post offices. The list goes on. Literally every county in the country has some type of federal facility. That alone is a very important piece.”
Additionally, it was announced that the Treasury Department and the Internal Revenue Service will work to clarify the manner in which certain investment rules apply to renewable energy installations, and specifically to real estate investment trusts (REITs).
“The Treasury Department and the IRS will be considering how to update rules and how they treat REITs,” Resch said. “This is massive, because if you open up the REIT structure of financing for third-party ownership, it could be the Holy Grail for financing solar projects around the country.”
Le said further discussions exploring new solar financing models were held at the recent SunShot Grand Challenge Summit. He pointed to a keynote speech by Billy Parish, founder and president of solar project finance company Mosaic, as indication that creative discussions surrounding the development of innovative financing options abound. “Parish announced a new program that Mosaic will be taking on which will make it as cheap, or cheaper, for consumers to get solar loans as an alternative to relying on solar leasing,” Le said. “This is one of many really exciting opportunities that will be forthcoming in the next few years.”
Bringing the Economic Benefits of Solar to the Underprivileged
Another important component of President Obama’s far-reaching solar plan focuses on lowering out-of-pocket energy costs for American families and businesses. To jumpstart those efforts, the administration has called upon a number of leaders in multifamily affordable housing to look to increased solar deployment with the intent of not only lowering bills for tenants, but also to bring much need economic boosts to low income communities.
EAH Housing, a nonprofit housing development and management corporation, is among more than two dozen multifamily affordable housing leaders who have made commitments to expand the use of solar in their properties. Currently, 37 EAH Housing properties have 2.3 MW of installed solar capacity and two more projects are expected to be completed in 2014. In coming years, EAH Housing has expects to add 10 MW of solar capacity in its effort to provide 10 percent of the White House’s Climate Action Plan goal of 100 MW of installed capacity at federally subsidized housing.
“Solar has become a key tool in our strategy to support our residents and affordable housing communities,” said Laura Hall, COO for EAH Housing. “By upgrading existing communities, we can extend the long-term affordability of a property for the benefit of working families, their children and a growing senior constituency.

Solar is a feature on some of EAH Housing Units at the Avena Bella Development in Turlock, California. Credit: EAH Housing.

Hall said the energy savings achieved through solar investments allow more resources to be applied to enriching the lives of low-income housing residents. She added that EAH Housing communities feature “resource coordination services that connect residents to local services in the form of afterschool activities, nutrition programs, resume development and on-site tech lounges.” The company’s net energy savings are expected to increase annually, reaching $18 million over 25 years.
In addition to encouraging affordable housing leaders to make use of solar technology to power their multifamily dwellings, it was also announced that Fannie Mae has joined forces with the U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) to provide financing that would enable property owners to make energy-saving enhancements.
Promoting Job Growth through the Building of a Skilled Solar Workforce
One of the key implications of the President’s “Year of Action” announcement can be summed up in a single, powerful word: jobs. In specific, and of utmost appeal to American workers suffering the ill effects of stateside jobs migrating to other countries, are the creation of jobs that cannot be outsourced. This consists not only of hands-on solar installation employment opportunities that will come as a result of increased solar deployment throughout the U.S., but also those that will result from planned training programs offered by community colleges across the nation.
With the stated aim of helping 50,000 workers enter the solar industry by the year 2020 — and building on the SunShot Initiative’s track record of having trained 22,000 people for solar industry jobs in the last four years alone — the Department of Energy’s Solar Instructor Training Network (SITN) has committedto supporting increased availability for training programs on community college campuses.
Newly participating community colleges include San Francisco City College, Oglala Lakota Community College, Kankakee Community College, St. Phillips College, Forsyth Technical Community College, and Greenfield Community College. These five add to the nearly 400 existing community colleges in 49 states that already work with the SITN to provide instructor training and courseware to students interested in pursuing careers in the solar field.
Le said training focuses not only on providing the skills necessary to be able to perform solar installations, but also encompasses training in related fields. “We’re moving beyond typical solar installer training programs to include training in other related fields, such as real estate appraisal,” Le said. He pointed to recent reports that found homes with solar installations selling for more than their equivalent counterparts as evidence of the importance of a more well-rounded approach to solar education. Le said coursework would also be made available to local government code officials responsible for permitting solar systems, so that they will have a better understanding about the intricacies of residential PV systems.
“This announcement recognizes that solar is one of the fastest growing sources of new jobs in this country,” Resch said. “Last year, the solar industry increased employment by 20 percent. We now have 145,000 people employed in the industry and that number is going to continue to grow by 20 to 40 percent per year. We need more people to become trained. That means creating opportunities for those who are unemployed, those in other industries that have struggled, and perhaps most importantly creating job opportunities for our returning troops.”
This post is excerpted from an article that originally appeared on Light Beam Electric. To read the full article click here.

Living Green at Crescent Park

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CRESCENT PARK built in 1968 in Richmond, California has a total of 378 rental units in 24 residential buildings. The 25-acre complex also includes a resource center, maintenance building and several laundry facilities spread throughout the property. Its rooftops hold the nation’s largest affordable-housing solar installation, with approximately 900 kilowatts (kW) of capacity. The $8 million photovoltaic (PV) system is designed to provide 60 to 80 percent of the community’s electrical needs and is anticipated to replace the generation of roughly 14,000 tons of CO2 emissions over its lifetime.

By the close of this year, Crescent Park will achieve almost 20 percent of the city of Richmond’s goal of 5 megawatts (MW) of power from solar energy by 2010. (Richmond is expected to achieve that goal this November — much earlier than anticipated.) EAH Housing, a nonprofit affordable housing company, has owned and managed the property since 1994. In 2005, EAH began planning for an energy retrofit that would include improved insulation, upgrades to windows, new appliances (including furnaces and water heaters), new roofs, new interior flooring and light fixtures outfitted with compact fluorescent lamps.

Crescent Park in Richmond, CA recently underwent a major solar retrofit by EAH Housing

At the start of the project, EAH Housing asked the design team to reduce electrical operating costs by using solar energy. Okamoto Saijo Architecture retained High Sun Engineering to conduct a feasibility analysis and prepare the design, which was customized to Crescent Park’s existing buildings Crescent Park posed some unique design challenges. Twelve of the apartment buildings are designed with a crescent shape — hence the name — with 14 townhouse units arranged around courtyards forming an open circle. This means that the roof of each unit has a different orientation relative to the sun. In assessing the power potential, the design team had to take a separate solar reading for each of the units. Other challenges included tree shading, structural limitations of the existing buildings, existing electrical service equipment and interconnection with Pacific Gas & Electric (PG&E) for such a large cumulative system. In the end, the team decided to connect each building’s PV system to the existing electrical service equipment via a line-side tap. This avoided the expense not only of installing new electrical service equipment, but also of associated upgrades to the entire utility infrastructure. Approval of this approach was closely vetted, with city building officials and PG&E as active participants.

The renovation, budgeted at approximately $50 million including a new multicultural family resource center and upgraded computer center, was phased over a 25-month period, during which the complex remained occupied.The contractor received three vacant buildings to renovate at a time, staggered one month apart, giving workers approximately 12 weeks

to renovate each building inside and out and install the PV system. EAH Housing and its partners worked closely with the Crescent Park Resident Council to relocate residents within the complex efficiently and comfortably. Buildings were vacated on a scheduled and orderly basis with minimal disruption to residents’ lives.The financing of the project included a sale by its previous owner to an EAH Housing-controlled limited partnership which involved —

• Tax-exempt and taxable bonds issued by the city of Richmond and privately placed with Union Bank of California ;

• Four percent tax credit-based equity syndication through National Equity Fund Inc.

• Seller take-back promissory note financing, to permit the entire appraised value of the property to be considered for acquisition basis purposes

• California Solar Initiative rebates

• U.S. Department of Housing and Urban Development-authorized use of residual receipts to be used to pay for a portion of the construction/rehabilitation costs.

All of the bonds, both the taxable and tax- exempt, were issued by the city of Richmond. Pre-development financing from several sources was repaid at the time of the close of sale to the new owner. “EAH Housing accomplished this without any new subsidy loans from any source,” said Matt Steinle, EAH vice president for real estate development, who structured the transaction. The PV contractor provided a fixed cost for the modules and maintained a delivery schedule spanning two years. It also required flexibility on the owner’s part to work through challenges associated with the general under-supply of solar panels in the marketplace, in order to ensure timely delivery of the panels and CSI rebates. Fortunately, EAH Housing maintained a good relationship with general contractor West Coast Contractors and subcontractor Sun Light

& Power, allowing it to keep the schedule flexible. The PV portion of the renovation is fully paid for via —

•More than $1.7 million in California Public Utility Commission rebates, under the CSI program;

• Renewable energy credits;

• Low-income housing tax credits;

• The reduction in owner-paid electricity costs for this master-metered complex by almost $154,000 per year.

This budget reduction permitted almost $3 million more in bond-financed permanent debt to be supported. Although there are limitations to the benefit of the renewable energy tax credits in low-income housing tax credit and tax-exempt private bond financing, the true value is largely realized by the owner’s ability to claim the entirety of tax credit at the time the PV system is placed in service.

To see the full article, click here.

Drake’s Way first affordable development to be LEED certified

Residents have views of Mt. Tam from Drake's Way, by EAH Housing.

On May 4th, 2011, the U.S. Green Building Council (USGBC) officially designated Drake’s Way with the prestigious Leadership in Energy and Environmental Design (LEED) for Homes Silver certification; making Drake’s Way the first affordable housing community in Marin County to be LEED certified.

Since it first opened, Drake’s Way has been a model of sustainability. The property’s central location in Marin County facilitates a car-free lifestyle by allowing residents to live within walking distance of retail centers, a grocery store, and office buildings as well as public transportation and bicycle routes.

Built by EAH housing and located in Larkspur, CA the property offers sweeping views of Mt. Tamalpais and the San Francisco Bay. To help preserve the natural beauty of the property’s surroundings, EAH Housing donated nearly half of their parcel to the city of Larkspur to be used as an undeveloped hiking and wildlife area.

Encircled by fields of native wildflowers, Drake’s Way is landscaped entirely with drought resistant plants and was built with 80 percent recycled construction materials. The community room, computer lab, and management offices at Drake’s Way are 100% Solar powered and the entire property features some of the latest designs in energy efficiency for water heaters, insulation, ducts, and other building components.

Drake’s Way provides homes for low income working families who would otherwise not be able to afford housing in Marin County’s high-end real estate market. Like many other EAH Housing properties, Drake’s Way allows people to live close to their jobs, avoid lengthy commutes, and spend more time with their families, all while creating a net benefit for the environment.

EAH Housing recently launched the Building Sustainable Communities Initiative (BSCI), a company wide effort to “green” the entire EAH portfolio. 30 properties have already received green upgrades and the rest of the EAH portfolio will undergo similar renovations in the coming years.

LEED is an internationally recognized green building certification system that judges the overall environmental impact of a property by evaluating criteria such as energy savings, water efficiency, carbon dioxide emissions, and stewardship of natural resources. The prestigious LEED designation is considered to be one of the most stringent rating systems for green building. LEED criteria are set and evaluated publically by the approximately 20,000 member organizations that make up the USGBC.

EAH Housing invests millions for a sustainable future

Solar panels help residents of affordable housing save money on utilities at EAH Housing properties.

EAH Housing launched a company-wide proposal called the Building Sustainable Communities Initiative to ensure that all aspects of the organization, from property management to real estate development, reflect a commitment to sustainability.
The inaugural phase of the Building Sustainable Communities Initiative emphasizes environmental stewardship. To-date EAH Housing has conducted green retrofits on 30 properties. In total, more than 1,000 units received weatherization upgrades, energy efficient lights and appliances, drought resistant native plant landscaping, and solar panel installation.
This phase of the initiative also supported the EAH Housing Real Estate Management and Operations staff as they began implementation of the Green Operations and Maintenance Best Practices Manual. The manual is a comprehensive approach to green management that is shared as a model with other nonprofits.
Earlier this year, the California Sustainability Alliance recognized EAH Housing for their green programs, awarding the company an Honorable Mention in the 2011 California Sustainability Alliance Annual Showcase. EAH was also designated an official Bay Area Green Business , joining over 2,000 other companies and public agencies in the San Francisco Bay Area who have been recognized by the Association of Bay Area Governments for their commitment to sustainability.
“We operate with the belief that every action can have a positive impact on the community, and on our world. The reach of this impact is wider than simply choosing green cleaning materials or replacing lights,” said Laura Hall, Chief Operating Officer at EAH Housing. “It’s our vision, guided by our mission to create communities that are sustainable on all levels.”
EAH Housing has maximized leveraging opportunities from grants, loans, rebate programs, donations, and resources within the company to invest $4.5 million in green programs. Grant support was provided by the Marin Community Foundation, Enterprise Community Partners, the Contra Costa County Neighborhood Grants, Union Bank, Bank of America, and the Wells Fargo Foundation.
“We are impressed by the commitment and drive that has moved EAH Housing forward so profoundly and so quickly, especially in these challenging times,” said Walker Wells, Director of Global Green’s Green Urbanism Program. “This level of commitment illustrates just how vital sustainable efforts are, not only for our planet, but for investing in the economy and the future we all share.”
EAH Housing has in its portfolio, the first and only LEED certified affordable housing community in Marin County, CA. The development, called Drake’s Way, features a number of sustainable elements in its design and construction including a solar powered community room, recycled building materials, and native plant landscaping, which earned the property its prestigious LEED Silver rating. Drake’s Way keeps cars off the road and promotes healthy lifestyles by allowing residents to live within walking distance of public transit, shops, offices, entertainment, parks, and a child care center.
Another one of its properties in Turlock, CA called Avena Bella was just awarded a LEED Gold certification. Avena Bella incorporates solar power, energy-efficient heat pumps for heating and cooling, and a continuously running energy recovery ventilation system brings in fresh, filtered outside air. A storm water retention system captures all rainwater on site. With the exception of some fruit trees, the landscaping at Avena Bella features all California native plants.
In 2006, before the BSCI was formally launched, EAH Housing carried out its first major solar project. Partnering with the Berkeley based Sun Light and Power, EAH installed a photovoltaic (PV) system at the housing community Crescent Park, in Richmond, CA. The PV system provides nearly a megawatt of clean energy, covering 60 to 80 percent of the community’s electrical needs. With 378 rental units running mostly on solar power, Crescent Park is the largest solar powered affordable housing community in the country. The $8 million dollar PV system will replace an estimated 14,000 tons of CO2 emissions that conventional electricity would have generated.
“We have another 41 properties in line, ready to shine more renewable energy into 7 counties,” said Mary Murtagh, President and CEO. “It’s not just new developments that can help us build a new future; it’s using what we already have in a smart way.”
Building Sustainable Communities Initiative will, in time, see the greening of all EAH Housing properties. “We have long believed that all affordable housing is green,” said Ms. Murtagh. “With this initiative, EAH Housing is reaffirming our commitment to create communities that can thrive, for their residents, and for our world.”