Venture Aims to Bring Passive Houses to Cincinnati

Recently UrbanCincy contributor Timothy Broderick sat down with Ronald Vieira, founder of PassivHaus — a venture designed to shake up the region’s building industry by dramatically reducing buildings’ energy expenditures to discuss building Passive Houses in the Cincinnati region. The interview has been edited for clarity and length.

Who are you?

My name is Ronald Vieira. Graduated from Xavier class of 2016. Born and raised in Valencia, Venezuela, but Cincinnati is my hometown. I like that I come from here.

What’s your job?

I am doing research to figure out how to decrease the extra payment people have to pay to build a passive house (PH). And that research consists in building the first PH in Cincinnati. There are a few PHs in construction in Cincinnati currently, but none of them have been certified yet.

What’s a passive house?

A PH is a building standard, a series of building standards that, if followed properly, you will reduce up to 90% of your heating load of your house, building, whatever your facility is. Overall it reduces up to 75% of your overall energy consumption.

How does it achieve such efficiency?

The main principle is super insulation — or as they call it, continuous insulation — because the idea is to isolate as well as we can the inside temperature of the house from the outside environment. Whether the outside is hot or cold or mild or humid or not it’s just to preserve the indoor environment to the best of the indoor’s ability.

So you’re basically creating a very stabilized climate?

Mhmm. A good analogy is your skin, which are your “walls.” To stay warm when you go outdoors, you put a jacket on. Similarly, when you’re building a house, the plywood is the skeleton of the house and then you build another exterior wall and put a lot of isolating material, like foam, and then that’s your newer, thicker wall.

Then you look where house is more prone to exchange air with the outside, which is windows and doors. You have to have really high-efficiency building doors and windows. Twenty years ago, new houses had single pane windows. Now the standard is double paned windows, and for PHs the standard is triple-paned windows.

How do you keep the air from getting stale/moldy?

Since you basically don’t have any communication from inside air to outside air, the filtration system for a passive house is a little different. This is an add-on equipment that you put on top of your furnace which cleans the air and filters it way more than a standard house. A high-quality filter is super important to a PH because it is airtight and needs better quality air while still using a lot less energy.

The way you put it it sounds like this cool thing that everyone should be doing, but it can’t be that simple. What are the biggest barriers to wider implementation?

Let’s start with the cost, which is the easiest to explain. You need more material — two walls + filler, for example. Another cost driver is the talent to design these buildings. There were only a handful of certified PH buildings in the US in 2009. The materials and the talent sums up to a 10 to 20% more cost. Now, this is all weather sensitive. The larger the building is, and the colder the climate is, the less expensive it’s going to be. It’s easier to keep it cool in the summer. When I did market research in Cincinnati, I found that we won’t need to go over the 10% premium. This is the promise of my company in the first three years. Then, we are going to figure out how to build these houses at 0% extra at the end of the third year.

The second barrier is the learning curve. These houses use new material and new ideas that most builders and architects don’t know. However, if you have the same group of people who are building the first house and then the second house and the third, they will quickly learn the process. That’s what I’m going to do.

You, yourself, are still learning how to build a PH. How will you build the first one?

You just need a PH consultant, which is not hard to get. Paul Yankee is my mentor on PH design, and he is the owner and CFO of Green Buildings Consultants. He has been advising since Day 1.

Are you going to get certified?

Yes, not as a designer but as a builder. But my architects will be certified.

What’s your motivation behind this work?

Typically, I think a little bit more in the bigger picture than the smaller picture. When I graduated college, I wanted to do something that will significantly impact the life of people in the world. That’s where everything starts.

Why climate change and not global poverty or something like that?

I think it was the education I received. Venezuela is a developing country, so my mom’s side is very poor. All my life I had very personal contact with extreme poverty. I felt like I was more qualified to tackle a systemic, non-social challenge than a social challenge. Plus, climate change is science, and my first three years at Xavier were chemistry.

So climate change, turns out the largest emitter [in the United States] is residential living. Why aren’t people doing anything about this? That’s when the research starts: how do I get people to generate energy in a greener way, or how do I get these people to use their energy in more wisely.

This has to do with energy efficiency and energy generation. Energy generation is far more complex, and my technical ability is not there at all. But my ability to find out how to build buildings in a way that keeps energy and consumes a lot less energy — ok, now I can do that. Doing research on home energy efficiency is how I stumbled upon PHs.

Is this only for rich suburbanites? Can you build something in the city?

No. I’m currently looking at a lot close to downtown. Furthermore, anything and everything can be built passive. You can use any particular architecture style whether it is contemporary, whether it is a bungalow, whether it is classical, or civil war era. You can have any type of architecture built to PH principles.

Now what you’re getting at, renovating houses like in Over-the-Rhine, that’s the next big challenge for PH builders. It is possible, but it is just another design challenge because you have to deal with existing structures. For historic buildings, specifically those in OTR, those are going to have more aesthetic and cost challenges.

What’s your short-term goals?

The official mission is to accelerate the adaptation process of PH principles to home residential construction. And then we’ll send segue into commercial, and that means mixed, urban living. I have a particular affinity for urban spaces. I am from the most inner city you can ever be in Valencia. So that’s all I know, basically.

Endgame?

Getting a large organization — like 3CDC — in charge of redeveloping a lot of buildings, getting in with them — that’s the goal. But all my energy right now is focused on building that first house. Nothing more. Who knows from there.

If you’re interested in building your own passive house, visit Ronald’s website or shoot him an email at vieirarxu@gmail.com.

PHOTOS: Downtown Construction Boom Underway

With well over $2 billion in new construction projects underway in Cincinnati’s urban core it is not hard to miss with construction fencing, cranes and lifts working at full tilt all over downtown and Over the Rhine. Many new construction and building renovations are underway throughout downtown and Over-the-Rhine. This gallery features photos of 16 projects taken this month. If added up the projects in the photos below are just a fraction of overall development with just over $400 million in construction activity.

 

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Cincinnati Neighborhood Wins Major Preservation Award

In 2006, Over-the-Rhine was listed as one of America’s Most Endangered Places by the National Trust for Historic Preservation. Today that very same neighborhood is celebrated as a tale of monumental historic revitalization and revival. That effort was honored yesterday at an awards ceremony in Washington D.C.

At a reception that is part of National Historic Preservation Advocacy Week, representatives from the City of Cincinnati’s Zoning Department, Cincinnati Center City Development Corporation (3CDC) and the Over-the-Rhine Foundation were presented with the “Preservation’s Best” of 2016 award by the group.

The event is sponsored by Preservation Action, American Institute of Architects, National Trust for Historic Preservation, National Trust Community Investment Corporation, Unico, Inc., and Center for Community Progress and aims to highlight significant projects developed through federal incentives such as Historic Tax Credits.

“Through federal incentives like the Historic Tax Credit, historic preservation drives economic development and community revitalization across the nation by taking historically significant buildings that are dated and abandoned and turning them into viable community assets for a 21st century economy.” spokesperson Rob Naylor said in a statement.

On hand from Cincinnati to receive the award was Kevin Pape of the Over-the-Rhine Foundation, Zoning Administrator Matt Shad and Historic Conservator Beth Johnson from the city. West side Congressman Steve Chabot (R) also attended.

Naylor stated that the award, “highlights exemplary Historic Tax Credit projects that revitalize our cities and small towns and breathe new life into our communities. At a time when the future of the Historic Tax Credit is uncertain, these projects help to highlight the impact the program has had in communities across the country.”

Since 1981, federal tax credits have helped save over 377 buildings in Over-the-Rhine for a total of $267 million dollars. Despite losing 50% of its housing stock since the 1930’s the neighborhood is still considered the largest collection of 19th century Italianate architecture in the country and has been regarded  as “the coolest neighborhood in America.

Editors Note: Mr. Yung is a member of the Over-the-Rhine Foundation Board of Trustees.

New Development Adds Affordable Housing, Restaurant to Over-the-Rhine

Another development is coming to the Brewery District. The Historic Conservation Board approved a zoning variance that will bring fifty affordable housing units and a restaurant to several vacant buildings along the streetcar line.

Affordable housing in Over-the-Rhine (OTR) has received a lot of press recently. Freeport Row, the newly-christened Source 3 development at Liberty and Elm, was heavily criticized because it lacked any affordable housing. Most recent development has been market-rate or luxury apartments, despite the fact that OTR’s average median income was $14,517 in the 2010 census.

The fears aren’t unfounded; the neighborhood has lost affordable housing. Xavier Community Business Institute determined that OTR and Pendleton have lost 2,300 affordable housing units since 2002. This project — called Abington Flats — will help replenish that stock. Three different companies banded together to create Abington: 3CDC, Model Group, and Cornerstone Corporation Renter Equity. 3CDC is developing the commercial space, while the other two control the residential space. This project is part of a larger effort by the team to develop hundreds of affordable units in OTR.

Abington Flats consists of five buildings, the largest of which is 33 Green Street. Built in 1910, the four-story building features a commercial space on the ground floor with three floors of residential apartments above. Model Group Senior Project Manager Jennifer Walke said that all five buildings need “substantial rehab.” 33 Green Street will be 100 percent ADA accessible. The team is shooting for LEED Silver certification.

In an email to UrbanCincy, 3CDC Communications Manager Joe Rudemiller said that, depending on future tenants’ needs, there will be up to four retail or office space and up to two restaurants or bars.

Finding a restaurant or bar will be key to the project’s long-term financial viability. Tax credits fund a building’s development and construction; they don’t cover operating costs. Rent from below market-rate units might not cover its full cost. Rent paid by commercial tenants offsets this difference.

This is why investors rarely back affordable housing projects. It’s hard to profit. Plus, tenants with less financial security pose a greater risk to the owners. Cornerstone’s shared equity program strives to overcome this trend. Tenants can earn equity through timely rent payments and property maintenance. Build up enough equity and — after five years — it becomes cash. Abington Flats will use their system.

Total costs hover around $17 million — $13.8 million for the residential portion and $3 million for the commercial space. Several subsidies fueled the development, including Federal and State Historic Tax Credits and Low-Income Housing Tax Credits.

New Market Tax Credits Key to City’s Revival

Cincinnati’s development coffers got a little fatter last week, as $125 million in federal tax subsidies flooded into the city. These subsidies, called New Market Tax Credits (NMTCs), incentivize local investors to funnel capital into low-income communities and have essentially bankrolled Over-the-Rhine’s entire revitalization.

For example, Washington Park — perhaps the most emblematic example of OTR’s rebirth — received nearly $14 million in New Market Tax Credits (NMTC) from the Local Initiatives Support Coalition (LISC) to help support its reconstruction. Several ongoing developments have also received some or all of their funding through NMTCs, including the Market Square and Ziegler Park projects.

Ziegler Park Aerial

New Market Tax Credits helped transform parts of Over-the-Rhine like the reconstruction of Ziegler Park (Photo by Travis Estell)

Developers often balk at the prospect of developing low-income communities because they fear their investment will be wasted. NMTC are the federal government’s attempts to allay these concerns. Congress first authorized the subsidies through the Community Renewal Tax Relief Act of 2000. Over the past fifteen years, the bill’s success has earned it bipartisan support. According to the program’s 2016 report, the tax credits have created 750,000 jobs and invested over $75 billion to businesses and revitalization projects in communities with high rates of poverty and unemployment.

Less than 25 percent of the applications submitted each year are awarded, but three major Cincinnati developers beat the odds this year: Cincinnati Development Fund ($65 million), Uptown Consortium (45 million), and the Kroger Community Development Entity ($15 million).

To win an NMTC grant, a corporation — in federal parlance, Community Development Entities (CDE) — must lobby the U.S. Treasury’s Community Development Financial Institution (CDFI) Fund on behalf of private investors like the Cincinnati Center City Development Corporation (3CDC). If the CDFI approves the application, then the investors who pledged money to the CDE will receive a seven-year tax abatement to support development.

3CDC, in particular, has secured a eye-popping $238 million since the program’s inception. Without this capital, it’s unlikely that OTR would have changed as drastically as it has. The community was a no-brainer for NMTC-driven development due to its extreme poverty. The neighborhood’s median household income during the 2010 census was a paltry $14,517. Six years and billions of dollars have certainly improved its lot, but its average income still pales in comparison to the city’s 2015 median income, $56,826.

While OTR will likely continue to receive the majority of NMTC-driven development, other distressed neighborhoods are receiving attention. According to Director of Development Thea Munchel, the Walnut Hills Redevelopment Foundation expects approximately $6.5 million in NMTC Equity for its expected revitalization of Paramount Square. “It is too early to know who all will participate in the deal,” she said. “But Cincinnati Development Fund received a huge award and has indicated that they will contribute some into the project.”