Colorado Court

Santa Monica, California

Project Type:Residential

Case No:C034023

Year:2004

SUMMARY

To address the city of Santa Monica’s affordable housing shortage, as well as the city’s commitment to sustainabledevelopment, the nonprofit Community Corporation of Santa Monica (CCSM) constructed Colorado Court. A five-storyapartment complex consisting of 44 studios, Colorado Court reserves all of its units for those earning between 35 and40 percent of the area median income. The 204 two-by-five-foot (0.61-by-1.52-meter) solar panels covering the frontand top of this apartment complex are among the more visible “green” building features that went into its design andconstruction.

FEATURES

204 two-by-five-foot (0.61-by-1.52-meter) photovoltaic cells boosted by a gas turbine generate electricity, allowing Colorado Court to produce as much energy as it consumes (up to 30 kilowatts).Qualified for LEED (Leadership in Energy and Environmental Design) certification, and currently pursuing a silver or gold rating.Served as a model for additional environmentally friendly affordable housing complexes throughout the city.Building’s location, orientation, and shape take advantage of prevailing winds and exposure to the sun toprovide ventilation and natural lighting.

Colorado Court

Santa Monica, California

Project Type: Residential

Subcategory: Multifamily

Volume 34 Number 23

October–December 2004

Case Number: C034023

PROJECT TYPE

To address the city of Santa Monica’s affordable housing shortage, as well as thecity’s commitment to sustainable development, the nonprofit CommunityCorporation of Santa Monica (CCSM) constructed Colorado Court. A five-storyapartment complex consisting of 44 studios, Colorado Court reserves all of itsunits for those earning between 35 and 40 percent of the area median income.The 204 two-by-five-foot (0.61-by-1.52-meter) solar panels covering the frontand top of this apartment complex are among the more visible “green” buildingfeatures that went into its design and construction.

SPECIAL FEATURES

204 two-by-five-foot (0.61-by-1.52-meter) photovoltaic cells boosted by a gas turbine generate electricity, allowing Colorado Court to produce as much energy as it consumes (up to 30 kilowatts).Qualified for LEED (Leadership in Energy and Environmental Design) certification, and currently pursuing a silver or gold rating.Served as a model for additional environmentally friendly affordable housing complexes throughout the city.Building’s location, orientation, and shape take advantage of prevailingwinds and exposure to the sun to provide ventilation and natural lighting.

DEVELOPER

Community Corporation of Santa Monica1423 Second Street, Suite BSanta Monica, California 90401310-394-8487Fax: 310-395-0220www.communitycorp.org

ARCHITECT

Pugh Scarpa KodamaBergamot Station2525 Michigan Avenue, Building F1Santa Monica, California 90404310-828-0226Fax: 310-453-9606www.pugh-scarpa.com

LANDSCAPE ARCHITECT

Dry Design, Inc.5727 Venice BoulevardLos Angeles, California 90019323-954-9084Fax: 323-954-9085www.drydesign.com

FUNDER/CONSULTANT

City of Santa Monica

Department of Housing and Redevelopment1685 Main StreetSanta Monica, California 90401310-458-8702http://santa-monica.org/housing/index.htm

California Department of Housing and Community Development1800 Third Street Post Office Box 952050 Sacramento, California 94252916-445-4782www.hcd.ca.gov

ENERGY CONSULTANT

John Ingersoll, P.E., LEEDTM 2.0 Accredited Professional, PhDHelios International, Inc.21315 Lighthill DriveTopanga, California 90290818-884-8782Fax: 818-884-7568

GENERAL DESCRIPTION

Colorado Court consists of three buildings connected by a series of exterior corridors. Adorned with blue photovoltaic cells along its front facade, Colorado Court is a demonstration project for the city of Santa Monica.

Due to its location on the Pacific Ocean and its experiences with water pollution, the city has a mission to managestormwater and conserve water. In addition, it is committed to the possibilities of green building and sustainabledevelopment. This commitment is discussed in detail along with various goals and objectives for making Santa Monicaa more environmentally friendly place in the city’s Sustainable City Plan. With Colorado Court, the city was able toshow how to incorporate alternative energy sources into new developments, while helping to meet low- andmoderate-income households’ need for shelter.

Colorado Court was developed by the Community Corporation of Santa Monica (CCSM), a local nonprofit developmentfirm whose sole mission is to create and manage affordable housing in the city. Since its inception in 1982, CCSM hasdeveloped and manages approximately 1,200 units in 80 properties in Santa Monica. Most of the nonprofit firm’sproperties have been renovations of existing buildings.

Housing built by CCSM is typically developed using one or more residual receipt loans from multiple sources, includingthe city of Santa Monica, tax credits from the California Tax Credit Allocation Committee, the California Department of Housing and Community Development (HCD), and/or bonds from the California Debt Limit Allocation Committee (CDLAC). Funded through developer fees from developments, CCSM has 30 full-time employees who coordinate development projects, in addition to accounting and property management.

THE SITE

Colorado Court is located at the eastern corner of the intersection of Fifth Street, which runs southeast-northwest,and Colorado Avenue, which runs southwest-northeast, in Santa Monica. It lies within three blocks of the Third StreetPromenade, a major retail destination for residents and tourists alike. Due to the complex’s proximity to downtown,residents have multiple transit options including the Santa Monica Big Blue Bus and the MTA Rapid Bus that connectsSanta Monica with downtown Los Angeles.

The properties surrounding Colorado Court are primarily commercial in nature. The developments to the north andwest of the site are more intensive and mixed-use in character, with a significant retail component in addition to moderate amounts of office space and housing. To the south and east of the site there are smaller businesses such as automobile repair and retail shops in single-use buildings. The site is also five blocks from the Pacific Ocean.

DEVELOPMENT PROCESS

Demand for affordable housing is high—not just in Santa Monica, but throughout the entire Los Angeles basin. CCSMtypically has 2,000 to 3,000 people on its waiting list for affordable housing units. As a result, market studies usuallyare not necessary for CCSM, but in many cases they do help refine the marketing of a product.

The highest level of housing demand is among households that require two to three bedrooms, and sometimes more.Thus, most of the products developed by CCSM have units larger than the 375-square-foot (34.8-square-meter) studio units that were developed at Colorado Court. However, significant demand was found to exist for studio unitsas well, and as a result, the project leased up quickly.

Prior to development, the city of Santa Monica owned the site and used it as part of a bus parking and storage facility.A smaller bus facility remains just to the southeast of the site. Following the ideas and objectives outlined in the cityof Santa Monica’s Sustainable City Plan, the city’s leadership determined that the site should be developed withaffordable housing, and that it should embrace green principles.

As the project evolved, the city decided that it should also be LEED (Leadership in Energy and Environmental Design)certified. The LEED certification program is a voluntary rating system through which buildings can be compared based on the degree to which they incorporate environmentally friendly design. Using a point system based on five criteria (indoor environmental quality, materials and resources, sustainable sites, water efficiency, and energy and atmosphere), LEED offers four levels of certification: certified, silver, gold, and platinum (the highest).

To meet its goal of environmentally friendly affordable housing, the city of Santa Monica issued a request forproposals (RFP) in 1998. CCSM was awarded the project and planning began that same year. Planning for ColoradoCourt—including applying for sources of funding—took two years. Construction took an additional two years,commencing in the fall of 2000 and ending in the spring of 2002.

Throughout the development process, the city of Santa Monica played a very strong role. With the city’s commitmentto green building and sustainable development, public approvals generally were not difficult to obtain. No variances or

conditional use permits were required to develop the property as affordable housing.

Neighborhood resistance to the project also was minimal. This was due in part to the surrounding neighborhood being largely commercial in nature, with very few other housing units located nearby.

FINANCING

Financing for Colorado Court came primarily from the city of Santa Monica and the state of California. However, this funding did not come without obstacles: the start of construction was delayed because CCSM was twice denied for low-income tax credits from the state of California Tax Credit Allocation Committee. CCSM finally obtained a $1.63 million loan from the California Housing and Community Development (HCD) Multifamily Housing Program, accounting for 28 percent of the development cost.

As mentioned previously, the city of Santa Monica was the other primary funder for Colorado Court. It provided aconstruction loan and a no-interest loan of just over $4 million, or 68 percent of the overall $5.87 million project cost.The loan is paid through residual receipts—which means if the property generates additional income, 50 percent of itgoes back to the city of Santa Monica to pay down the loan, and the loan will be forgiven if the property remainsaffordable for 80 years. Moreover, CCSM’s 87-year ground lease with the city of Santa Monica allows the firm to ownthe improvements to the property, but the land belongs to the city. In addition, as part of the agreement between thecity and CCSM, the city placed a permanent restriction on the site for affordable housing.

In addition to the funds supplied by the city and the state, the remaining development costs—about 4 to 5percent—came from the Federal Home Loan Bank (FHLB) Affordable Housing Program (AHP), a Bank of Americagrant, and rebates for green measures.

PLANNING, DESIGN, AND CONSTRUCTION

Designed by Pugh Scarpa Kodama of Santa Monica, the structure consists of three five-story towers linked byexterior, open-air corridors, or breezeways. While this design is relatively common among apartments in California,especially those designed before the advent of air conditioning, Colorado Court is distinctive for its eye-catching bluesolar panels. The structure contains 204 two-by-five-foot (0.61-by-1.52-meter) photovoltaic solar panels on the roofand on the front of the building’s southwest-facing facade.

The arrangement and siting of the buildings were intended to harness cooling ocean breezes and create a naturalventilation system. The siting also took into account the sun’s position so as to maximize exposure to the solar panelsand to provide natural lighting for the structure’s interior spaces. To achieve these goals, the three towers of thestructure are arranged from northeast to southwest, so that the units face northwest and southeast. Entrances tounits are on the southeast side of each building, with an additional small window on that side. A larger window islocated in the living area of each unit, and faces northwest. All windows are glazed to reduce heat gain. The alignmentof the buildings, combined with the window glazing, also maximizes energy efficiency, and thus reduces the demandfor heating and air conditioning.

Colorado Court is surrounded by a decorative iron fence, and has one automobile entrance and two securedpedestrian entrances—one on Fifth Street and the other on Colorado Avenue. The automobile entrance is via thealley, and parking for 20 cars and an enclosed bicycle storage area are provided on the ground level under thebuilding. According to CCSM, this amount of parking stalls has been adequate, since not all tenants own cars, andtransit options are nearby.

Colorado Court has a community room and common laundry room, both of which are located on the ground floor.Mailboxes are found in the laundry room. One elevator serves the building.

All 44 units are studios measuring about 375 square feet (34.8 square meters) in size. Ceiling heights of ten feet(3.05 meters), combined with the aforementioned natural ventilation and lighting, help to compensate for the units’small sizes.

ENVIRONMENTALLY FRIENDLY FEATURES

In keeping with the city of Santa Monica’s goals for sustainable development and green building practices, CCSMfocused on reducing and recycling waste while trying to construct for long-term maintenance. For example,long-lasting exterior finishes consisting of integral colored split-faced stucco and block were used and 73 percent ofthe on-site construction waste was recycled.

Inside Colorado Court, units have light fixtures that use energy-saving fluorescent bulbs as well as efficient refrigerators that do not use chlorofluorocarbons. Carpeting and insulation are made from recycled materials, woodwork is formaldehyde free, and all paints and sealants used are low in volatile organic compounds (VOCs) to improve indoor air quality.

To help protect water quality in the Santa Monica Harbor, Colorado Court captures nearly all the rain that falls on site,

using an in-ground filtration system. All stormwater on the site is directed to the alley, which has a permeable surfaceto allow rainwater to enter storage tanks. Water then percolates into the soil, where it is naturally filtered instead ofbeing channeled directly into the sewer system and then flushed into the nearby Pacific Ocean. Approximately 95percent of the property’s stormwater runoff is retained on site through this system, which also collects water from therest of the block. Also, by building the housing over the parking lot, CCSM was able to minimize the lot’s amount ofimpervious surfaces.

With a drip irrigation system and the use of drought-tolerant plants, Colorado Court’s landscaping also reflects anemphasis on sustainable and green development. All of the trees on site prior to construction were saved, andbecause most were located along the lot’s perimeter they did not substantially interfere with construction. Eventhough one tree shades a portion of the solar panels, it was left in place due to the development team’s commitmentto green principles. Only one tree, a mature pepper tree, had to be relocated.

The signature features of Colorado Court are its aforementioned photovoltaic panels and gas turbine, which supplythe building’s electricity. The gas turbine generates electricity during the morning and evening peak hours, and thephotovoltaic cells generate power (up to 30 kilowatts) during daylight hours, producing surplus energy that is soldback to the power grid.

The 28-kilowatt gas turbine uses a waste heat recovery system, which essentially captures heat from the exhaust ofthe turbine, to provide for all of the building’s domestic hot water and space heating needs. By generating power onsite and utilizing waste heat, the system has a conversion efficiency (a measure of how effectively fuel is transformedinto energy) of approximately 70 percent, whereas typical electricity delivered via the utility grid has an efficiency ofapproximately 30 percent. Using June 2001 energy rates as the baseline, the development team designed ColoradoCourt to produce an energy savings of up to $10,000 a year and supply almost 100 percent of the structure’selectrical needs.

Key to the development team’s goals for energy efficiency was net metering. Net metering is a means of selling theexcess energy generated on site by alternative energy sources to utility companies. CCSM and the city of SantaMonica intended for Colorado Court to sell its excess energy generated during the day to pay for energy consumed atnight. Before the project was constructed, the state of California had regulations that only allowed net metering forsystems generating a maximum of ten kilowatts. At 30 kilowatts, Colorado Court exceeded these maximums. To helpchange this law, the city successfully teamed up with state senator Sheila Kuehl to encourage the state assembly topass legislation allowing for net metering of projects generating up to one megawatt (1,000 kilowatts).

To the disappointment of CCSM, the new net metering regulation prohibits projects with two or more sources ofenergy from selling energy back to utility companies. Because Colorado Court has both the solar panels and the gas turbine generator, it is not eligible for the net metering program.

Nonetheless, the two combined systems produce more energy than is consumed. Excess energy does flow back to the grid, but CCSM does not recoup the financial benefit that net metering offers. It must also be noted that the gas turbine is far more effective if it runs at all hours. Thus, while both energy production systems are effective for conserving energy, they are better used separately, especially when net metering does not apply.

The additional cost of all the green measures, including photovoltaic cells and the gas turbine as well asconservation-based building materials, is approximately $500,000. This is included in the total construction cost of $4.82 million. The California Energy Commission provided a buydown of $123,000 of the overall $255,000 cost of the photovoltaic cell system, and the Southern California Gas Company gave a rebate of $17,800 on the $57,000 gas turbine. Half of the remaining costs were covered by the city of Santa Monica, and the other half by the Regional Energy Efficiency Initiative (a joint program of Southern California Edison, the California Energy Coalition, and the cities of Irvine and Santa Monica).

An energy consultant from Helios International, Inc., of Topanga, California, was hired to assist with theimplementation of the green features. Nonetheless, many contractors and the Santa Monica Building and Safety Department were unfamiliar with green technology and design, and therefore had a steep learning curve. This unfamiliarity caused delays in the construction of the project. CCSM had to work closely with these parties to resolve issues and keep the project moving ahead.

As a result of the inclusion of all the green measures, Colorado Court exceeds the city of Santa Monica’s GreenBuilding Design Guidelines and California’s Title 24 Energy Code, and qualifies for LEED certification. CCSM iscurrently in the process of applying for either a LEED silver or gold rating, but it is uncertain as to if and when suchstatus will be granted.

MARKETING, MANAGEMENT, TENANTS, AND PERFORMANCE

Colorado Court units are intended for tenants earning less than 40 percent of the area median income, with half (22) reserved for those earning less than 35 percent of the area median income. In 2004, the area median income was approximately $38,550 for a single-person household and $55,100 for a family of four. Given its affordability and environmental sensitivity, the project was fully occupied within three months of opening and there is currently a long

waiting list of people who would like to live there.

Not only have the siting and placement of Colorado Court been advantageous for generating natural ventilation andlighting, but they also have helped to market the building. Colorado Court’s location at the intersection of two of thecity’s busiest streets has placed this building in the public’s eye. Further, its unusual solar panel–covered facade andenvironmentally friendly design have made it the subject of many articles in newspapers such as the Los Angeles Times and the New York Times. Colorado Court has also received several awards, including the 2003 National American Institute of Architects Honor Award for Excellence in Building Design.

EXPERIENCE GAINED

After rent or mortgage payments, energy costs are among the highest expenses for most households. Pairingaffordable housing with green design, though uncommon, therefore seemed like a natural strategy for the city ofSanta Monica and CCSM. With nearly 100 percent of the project’s energy generated on site, this combination hasresulted in tangible benefits for both residents and CCSM.

CCSM had to be patient as its contractors faced some unexpected challenges in building green. It is important to findcontractors with some amount of experience in environmentally sensitive construction. The development team also believes that it is very important when working on environmentally friendly projects to plan ahead, and to specify material requirements upfront so as to save costs.

The dual energy system of solar panels and gas turbine has created many challenges. CCSM discovered that the gasturbine was much more efficient when allowed to run continuously, rather than only during the peak times and at night as originally planned. Further, the net metering laws prohibit the sale of energy from systems that use two or more energy sources, which means that Colorado Court cannot recoup any financial benefit from the excess energy it generates. As a result, if it were to build the project again, CCSM would choose either the gas turbine or the solar panels, but not both.

PROJECT DATA

LAND USE INFORMATION

Site area (acres/hectares): 0.31/0.125Percentage complete: 100Gross density (units per acre/hectare): 142/351Off-street parking spaces: 20

LAND USE PLAN

Use Acres/Hectares Percentage of Site

Buildings 0.20 67

Landscaping/open space 0.11 33

Total 0.31 100.0

RESIDENTIAL INFORMATION

Unit TypeNumber of Units

Area (Square Feet/Square Meters)

Percentage Leased Rental Prices

Studio 44 349–373/32.4–34.7 100 $337–$386

DEVELOPMENT COST INFORMATION

Site Acquisition Cost: $0 (long-term ground lease with city of Santa Monica)

Site Improvement Costs: $391,000Excavation/grading: $44,000Paving/curbs/sidewalks: $58,000Landscaping/irrigation: $42,000Fees/general conditions: $247,000Sewer/water/drainage: Stormwater retention system paid for by the city of Santa Monica

Construction Cost: $4,283,000

Soft Costs: $1,197,000Architecture/engineering: $252,000Project management: $95,000Marketing: $18,000Legal/accounting: $30,000Taxes/insurance: $42,000Title fees: $12,000Other (reserves): $178,000Other soft costs: $570,000

Total Development Cost: $5,871,000

DEVELOPMENT SCHEDULE

RFP issued by city of Santa Monica: 1998 Planning started: 1998Construction started: fall 2000Sales/leasing started: winter 2002Phase I completed: spring 2002Project completed: spring 2002

DIRECTIONS

From Los Angeles International Airport: Heading west, merge onto South Sepulveda Boulevard. Take a soft right onto Howard Hughes Parkway. The parkway will become a freeway onramp; use it to merge onto I-405 heading north. About four miles later, take the I-10 freeway west toward Santa Monica. Take the Fourth Street/Fifth Street exit (exit 1A) and keep right at the fork in the ramp. Take a soft left onto Fifth Street and follow it until it intersects with Colorado Avenue. Colorado Court will be on the eastern side of the street.

Driving time: 16 minutes in nonpeak traffic.

Sam Newberg, report authorJason Scully, editor, Development Case StudiesDavid James Rose, copy editorJoanne Nanez, online production manager

This Development Case Study is intended as a resource for subscribers in improving the quality of future projects. Data containedherein were made available by the project's development team and constitute a report on, not an endorsement of, the project byULI–the Urban Land Institute.

Copyright © 2004 by ULI–the Urban Land Institute

1025 Thomas Jefferson Street, N.W., Suite 500 West, Washington D.C. 20007-5201

Colorado Court is a five-story, 44-unit affordable housing project located in downtown Santa Monica, California. All of theunits are reserved for those earning less than 40 percent of the area median income.

The 204 two-by-five-foot (0.61-by-1.52-meter) solar panels on the front and top of Colorado Court are the most visible aspects of the project?s commitment to environmentally sustainable design. In addition, all of the units use

energy-efficient fluorescent lights and refrigerators that do not use chlorofluorocarbons. Also, the building was constructed using natural linoleum flooring, carpets made from recycled materials, recycled cellulose insulation,

formaldehyde-free woodwork, and low-VOC paints and sealants.

With the help of a gas-powered microturbine generator on the roof, Colorado Court generates as much electricity as it consumes (up to 30 kilowatts).

The project?s landscaping uses drought-tolerant plants and a drip irrigation system to help conserve water. An on-site stormwater runoff system collects and filters rainwater, thereby decreasing the amount of pollutants washed into the

Santa Monica Harbor when it rains.

Through its location, orientation, shape, and placement of windows, the designers of Colorado Court sought to use the prevailing winds and exposure to the sun to create a natural ventilation and lighting system.

Ground-floor site plan for Colorado Court.

Colorado Court plans showing the second and third floors.