Adaptive Reuse and Redevelopment - Topics to be Discussed

During this course... REAE 5316 - Adaptive Reuse and Redevelopment...as part of my degree plan for my MSRE in Real Estate - Sustainability through UTA... i will be researching various topics related to adaptive reuse.  This course examines tools and techniques associated with the market and financial feasibility analysis of adaptively reusing and redeveloping existing properties into economically viable commercial investment real estate. 

Topics Covered:

1.    Historic Preservation Tax Credits

2.    New Market Tax Credits

3.    Community Development Entities

4.    Rehabilitation Tax Credits

5.    Low Income Housing Tax Credits

6.    Community Development Block Grants

7.    Mortgage Guarantee Programs (through HUD)

8.    Tax Increment Financing

9.    Building Code in relationship to Adaptive Reuse

10.  Superfund and Brownfield Grants (EPA)

11.  Pedestrian Oriented Development

12.  Transit Oriented Development

Mortgage Guarantee Programs (through HUD) - ADAPT AND REUSE TOPIC

The U.S. Federal Housing Administration (FHA) was created  in 1934 to provide mortgage insurance on loans made by FHA-approved lenders.  It insures mortgages on single family and multifamily homes including manufactured homes and hospitals. The FHA was created to provide a national insurance program against home default and cuts the default risk lenders face with higher risk buyers who can only afford to make down payments under 20 percent.

The insurance was funded from the proceeds of a fixed premium charged on unpaid loan balances, and those revenues were used to buy Treasury securities as a way to cover future mortgage defaults.  The most common programs are  Fannie Mae, Freddie Mac, Ginnie Mae or VA guaranteed loans.  

There are many additional loan programs that are not commonly known also administered by different offices in HUD :

Office of Sustainable Housing and Communities (launched in February, 2010)

Supports the construction and rehabilitation of green affordable housing, recognizing that affordable homes should be located close to transportation, jobs, and schools and designed to maximize health and environmental benefits.

HUD-DOE Weatherization Partnership
Streamlines the program requirements for public housing, assisted multifamily, or Low Income Housing Tax Credit projects to receive DOE weatherization funds.

Energy Performance Contracting

EPCs provide financing for Public Housing Authorities to implement energy conservation measures through the operating subsidy and energy cost savings.

HOPE VI/Choice Neighborhoods

Choice Neighborhoods, the successor to HOPE VI, provides grants to transform distressed neighborhoods and federally-assisted public housing projects into viable and sustainable mixed-income communities.

Public Housing Capital Fund
Provides funds annually for the development, financing, and modernization of public housing developments.

Office of Native American Programs
Specifically for Alaskan and American Indians families and tribes - Section 184 Indian Home Loan Guarantee Program.

Energy Innovation Fund
Provided a total of $25 million in grants to be used for energy efficiency upgrades of multifamily properties.

Green Retrofit Program
While the Recovery Act funding for the Green Retrofit Program runs out in Fiscal Year 2012, the Department will have financed nearly 20,000 energy and green retrofits under the program.

Office of Housing - Programs for Single-Family Property Owners

203(k) Rehabilitation Program
This purchase-rehab mortgage product provides a single loan to finance the acquisition and rehabilitation, including energy efficiency improvements, of a one- to four-family home.

Energy Efficient Mortgages
Enables single-family homebuyers and homeowners to finance the cost of adding energy efficient features as part of their FHA-insured mortgage.

PowerSaver Home Improvement Loans
PowerSaver provides FHA-insured loans up to $25,000 to make energy-efficiency improvements to a single-family home.

http://portal.hud.gov/hudportal/HUD?src=/buying/loans

http://portal.hud.gov/hudportal/HUD?src=/program_offices/sustainable_housing_communities/sustainable_housing_initiative

www.hud.gov/offices/cfo/reports/2011/cjs/fha_fund_2011.pdf

www.freddiemac.com/sell/expmkts/hudind.html

http://archives.hud.gov/pubs/ProgOfHUD06.pdf

http://www.alaskausamortgage.com/programs/hud.asp

Tax Increment Financing - ADAPT AND REUSE TOPIC

Kessler Theater

Tax Increment Financing (TIF) is a program used by city's to finance new public improvements on existing properties to improve future tax values and improve the neighborhood.  Designated areas targeted for improvement are selected and by using future tax increases from tax revenues generated by higher future property values after improvements are completed.

Commerce Street Lofts

Funds  from these tax gains are appropriated for TIF infrastructure improvements. TIF improvements include sidewalks, utilities, landscaping, environmental remediation, and restoration of historic facades. 

TIF funds are primarily for public improvements, but can be used for a variety of administrative costs. Dallas mainly uses the TIF program to promote development in under utilized and vacant areas and to promote public investment in older areas that need to be redeveloped.

Dallas area projects include the Kessler Theater, Belmont hotel and the Commerce Street Lofts

Belmont Hotel

City of Dallas TIF Districts

http://www.dallasnews.com/opinion/editorials/20120325-editorial-expand-arena-tif-to-west-dallas.ece
http://www.dallas-ecodev.org/incentives/tifs-pids/
http://www.dallas-ecodev.org/wp-content/uploads/2012/04/TIF_QA.pdf
http://www.icsc.org/government/CDFA.pdf

Superfund and Brownfield Grants (EPA)

Superfund & Brownfield Grants:  These grants consist of federal government assistance to states and communities in cleaning up sites potentiallt contaminated.

Brownfield sites -  are real property affected by the potential presence of environmental contamination
Superfund sites- abandoned industrial areas that have experienced active dumping of dangerous chemicals in the past. 
The enactment of the Small Business Liability Relief and Brownfields Revitalization Act in 2002 authorized Congress to give the EPA authorization to oversee the distribution of these grants and the clean up.

Superfunds Regions in U.S.

www.epa.gov/superfund/sites

https://en.wikipedia.org/wiki/Superfund

www.usmayors.org/brownfields/library/Brownfields_Redevelopment.pdf

Transit Oriented Development

Transit Oriented Developments (TOD) are compact high density, mixed use developments located near a central transit mode. Dallas has created the Transit Oriented Development (TOD) TIF District to encourage pedestrian friendly developments near the DART  Rail stations.  The first project was the Mockingbird Station located at Mockingbird Lane and Central Expressway and it is said to has been very successful. This development  project won the developer the Urban Land Institute’s Global Award for Excellence.

Even so there are critics regarding how accessible the living spaces are to the transit system.  The following blog consideres Dallas'  TOD as a failed promise.

Transit-oriented development: a failed promise? 

http://shar.es/60Zuc via @dallasnews

Mockingbird Station

Dallas created the TOD in 2008 to encourage  pedestrian friendly transit oriented developments adjacent to DART light rail stations. The four sub-districts within the District:  Lovers Lane/Mockingbird station area, Cedars West, Lancaster Corridor area, and Cedar Crest area. Recently a study was released reporting case studies of the best practices  in the U.S.:   A New Paradigm: Strategies for Revitalizing Dallas’ Distressed Neighborhoods is a report that includes example project concepts for the Lancaster Corridor, South Dallas / Fair Park, and Five Points neighborhoods.

The overall goal of the TOD is to add sustainable density to accommodate expected growth, improves mobility, improves energy efficiency and provides new retail, entertainment and employment for Dallas neighborhoods.   Regardless if it is considered a fail... it is a great step in the right direction.  It will take time for Dallas residents to adapt to a rail system...but offering it as an option is a good start. 

http://dallastod.com/

http://www.dart.org/economicdevelopment/DARTTODGuidelines2008.pdf

http://www.dallas-ecodev.org/redevelopment/tod/

U.S. Post Office and Court House 400 N. Ervay - site visit

400 NORTH ERVAY

The first stop we made during our site visits in my REAE 5316 Adaptive Reuse course was to the old U.S. Post office in Downtown Dallas.   The U.S. Post Office and Court House on 400 N. Ervay has a long history.  This building was opened in November 1930 as the largest Federal building in the South, replacing the old Federal Building a few blocks away.

The beautiful architecture included intricate lighting in the main lobby with a southwestern design, brass post office boxes, decorative panels and terra cotta flooring.

This building is now being reused as luxury living space ...the remodel and revitalization of this old building will ensure its use for many more years to come.

REAE 5316 ADAPTIVE USE & REUSE -Site VISITS

10/27/12 - This Saturday I started a new class... REAE 5316 - Adaptive Reuse & redevelopment.    This class was a nice change from all the finance classes we have been taking.   We discussed older buildings throughout the City and the creative ways they were being reused.  

Adaptive reuse is a process that adapts an old site or building for a purpose other than which it was built or designed for while preserving the buildings historic features.   Adaptive reuse is a key factor in land conservation and preservation and is being considered more and more by developers. 

After our discussion in class... we had the opportunity to visit several different sites and see different examples of  reused buildings.

The Bishop Arts District is a prime example of Adaptive reuse and development.   This entire little district is built in old re-used buildings.   We started at Gloria's restaurtant on Davist St.   This restaurant has resently remoldeled and moved into an old firestation.  The result was a beautiful and distinctive building.  They could not have achieved this look with a new building.

The many other shops in Bishop Arts are all creatively set into the old building and homes that were reused as either, boutiques, restaurants, bars and a variety of other different shops.

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Very sustainable... and  Adaptive reuse..... here they are capturing rain water to supply their window  box garden......

Cozy Cottage- Children's clothing store 

This little shop is built inside an old residence.  This older home has been remodeled into a cute little shop, the original front porch and columns make you feel right at home.