Issue No. 28 Fall 2007 Tools Home Tools for Housing and Economic Development
 
Raphael Herz



Renewable energy technologies and increased energy efficiency can contribute to the long-term economic stability of affordable housing, but we need to understand more about what approaches are the most cost effective and which are most likely to be accepted by the affordable-housing community.

 

Interview: Raphael Herz
Massachusetts Technology Collaborative

By David Parish

Raphael Herz directs the Green Affordable Housing Initiative for the Massachusetts Technology Collaborative (MTC). Established by the Massachusetts legislature in the early 1980s, the MTC is the state’s economic-development agency for the innovation economy and renewable energy. MTC operates as a catalyst at the intersection of industry, academia, and government to create new economic opportunity and a cleaner environment for Massachusetts.

What is the MTC Green Affordable Housing Initiative (GAHI)?
The GAHI is a $25 million commitment by MTC to affordable housing in Massachusetts. The initiative is designed to encourage the transformation of the financing, development, and operation of affordable housing through the inclusion of green design and renewable energy elements in affordable-housing developments throughout the Commonwealth.
 
Why did MTC decide to become involved with affordable housing in Massachusetts?
Massachusetts is the third most expensive state in which to buy a home, and nearly one in four renters pay over one-half of their income for housing. High home prices and dramatically rising housing costs have made the expansion and preservation of affordable housing a priority for the Commonwealth. However, we realize that there are many unanswered questions related to the application of green building and renewable energy technologies to affordable housing. We hope that the GAHI will lead to a broader acceptance of these technologies within the affordable-housing com-munity. Finding new ways to effectively manage residential energy costs and reduce the risk of conditions that threaten the health of residents of affordable housing clearly falls within MTC’s mission.

Who are your partners in the GAHI and how were they chosen?
MTC went through a formal process to arrive at a diverse and experienced group of affordable-housing funders and developers who can help us better understand the role that the application of renewable energy and green building techniques can play in the development and preservation of affordable housing. The partners are: Boston Community Capital, the Cape Light Compact, the City of Boston Department of Neighborhood Development, Mass-Housing, HAP, Inc., WinnDevelopment, the Massachusetts Department of Housing and Community Development, and the Massachusetts Energy Star Program.
 
What types of affordable housing will be supported under the GAHI?
The GAHI partners are involved in the full range of affordable housing, including single-family starter homes, condominiums, rental, and special-needs housing. 

Is the GAHI focused solely on providing renewable energy to affordable-housing developments?
No. Although at least 70 percent of the dollars committed will go to support the provision of renewable energy, funds may also be used to increase energy efficiency and promote more healthy residential environments.
 
What do you hope to learn and what do you see as the potential benefits of the GAHI?
For one thing, we hope to arrive at a much better understanding of the economics of renewable energy as it applies to affordable housing. We know that both high and volatile energy costs are significant issues for affordable-housing residents, managers, and owners. Renewable energy technologies and increased energy efficiency can contribute to the long-term economic stability of affordable housing, but we need to understand more about what approaches are the most cost effective and which are most likely to be accepted by the affordable-housing community.

We believe there are many potential benefits from the GAHI. Residents will have a more affordable, comfortable, and healthy living environment; the economics of affordable-housing development, ownership, and management should be improved; and the initiative should provide support to an important, emerging sector of the Massachusetts economy.

Although it isn’t specifically part of the GAHI, can you comment on the hydropower grant MTC provided to the Whitin Mill affordable-housing development featured in this issue of Tools?
In 2002, MTC awarded $20,000 to the Whitin Mill team to investigate the potential for onsite energy generation as a piece of the team’s ongoing, innovative green building work. The team’s energy experts determined that there is good potential for electricity generation through hydropower at the site. We made a subsequent award of $324,000 to provide financial support for the design, installation, and commissioning of the hydro system.

We believe that the Whitin Mill will serve as a beacon for future socially responsible, mixed-use construction and renovation projects through its energy-efficient design and construction, use of both solar and hydro electricity generation, and dedication to often under-funded sectors such as
affordable housing and healthcare for the disabled.

MTC has a variety of other programs designed to help communities and individuals with energy issues. Could you give us some examples and suggest where people might find additional information? 
MTC also offers renewable energy installation incentives through the Green Building & Infrastructure Small Renewables Initiative and Large Onsite Renewables Initiative. Further information on the GAHI and other MTC programs is available on our web site at www.mtpc.org. T