By Audrey Henderson for Energy News Network.
Broadcast version by Terri Dee for Illinois News Connection reporting for the Solutions Journalism Network-Public News Service Collaboration

As low-income households face the dual burden of weather extremes and high energy costs, energy efficiency is an increasingly important strategy for both climate mitigation and lower utility bills.

Passive House standards - which create a building envelope so tight that central heating and cooling systems may not be needed at all - promise to dramatically slash energy costs, and are starting to appear in "stretch codes" for buildings, including in Massachusetts, Illinois, Washington and New York.

And while some builders are balking at the initial up-front cost, other developers are embracing passive house metrics as a solution for affordable multifamily housing.

"We're trying to make zero energy, high performing buildings that are healthy and low energy mainstream everywhere," said Katrin Klingenberg, co-founder and executive director of Passive House Institute-U.S., or Phius.

Klingenberg says the additional work needed to meet an aggressive efficiency standard, is, in the long run, not that expensive. Constructing a building to passive standards is initially only about 3%-5% more expensive than building a conventional single family home, or 0%-3% more for multifamily construction, according to Phius.

"This is not rocket science... We're just beefing up the envelope. We're doing all the good building science, we're doing all the healthy stuff. We're downsizing the [heating and cooling] system, and now we need someone to optimize that process," Klingenberg said.

Phius in practice and action

A Phius-certified building does not employ a conventional central heating and cooling system. Instead, it depends on an air-tight building envelope, highly efficient ventilation and strategically positioned, high-performance windows to exploit solar gain during both winter and summer and maximize indoor comfort.

The tight envelope for Phius buildings regulates indoor air temperature, which can be a literal lifesaver when power outages occur during extreme heat waves or cold snaps, said Doug Farr, founder and principal of architecture firm Farr Associates.

Farr pointed to the example of the Academy for Global Citizenship in Chicago, which was built to Phius standards.

"There was a really cold snap in January. Somehow the power went out [and the building] was without electricity for two or three days. And the internal temperature in the building dropped two degrees over three days."

Farr said that example shows a clear benefit to high efficiency that justifies the cost.

"You talk about the ultimate resilience where you're not going to die in a power outage either in the summer or the winter. You know, that's pretty valuable."

There is also a business case to be made for implementing Phius and other sustainability metrics into residential construction, such as lowered bills that can appeal to market-rate buyers and renters, and reduced long-term maintenance costs for building owners.

AJ Patton, founder and CEO of 548 Enterprise in Chicago, says in response to questions about how to convince developers to consider factors beyond the bottom line, simply, "they shouldn't."

Instead, he touts lower operating costs for energy-efficiency metrics rather than climate mitigation when he pitches his projects to his colleagues.

"I can't sell people on climate change anymore," he said. "If you don't believe by now, the good Lord will catch you when He catch you.

"But if I can sell you on lowering your operating expenses, if I can sell you on the marketability, on the fact that your tenants will have 30%, 40% lower individual expenses, that's a marketing angle from a developer owner, that's what I push on my contemporaries," Patton said. "And then that's when they say, 'if you're telling the truth, and if your construction costs are not more significant than mine, then I'm sold.'"

Phius principles can require specialized materials and building practices, Klingenberg said. But practitioners are working toward finding ways to manage costs by sourcing domestically available materials rather than relying on imports.

"The more experienced an architect [or developer] gets, they understand that they can replace these specialized components with more generic materials and you can get the same effect," Klingenberg said.

Patton is presently incorporating Phius principles as the lead developer for 3831 W Chicago Avenue, a mixed use development located on Chicago's West Side. The project, billed as the largest passive house design project in the city to date, will cover an entire city block, incorporating approximately 60 mixed-income residential units and 9,000 sq ft of commercial and community space.

Another project, Sendero Verde, located in the East Harlem neighborhood of New York City, is the largest certified passive-house building in the United States with 709 units. Completed in April, Sendero Verde is designed to provide cool conditions in the summer and warmth during the winter - a vast improvement for the low-income and formerly unhoused individuals and families who live there.

Barriers and potential solutions

Even without large upfront building cost premiums and with the increased impact of economies of scale, improved technology and materials, many developers still feel constrained to cut costs, Farr said.

"There's entire segments of the development spectrum in housing, even in multifamily housing in Chicago, where if you're a developer of rental housing time and again ... they feel like they have no choice but to keep things as the construction as cheap as possible because their competitors all do. And then, some architecture firms only work with those 'powerless' developers and they get code-compliant buildings."

But subsidies, such as federal low income housing credits, IRS tax breaks and resources from the Department of Energy also provide a means for developers to square the circle, especially for projects aimed toward very low-income residents.

Nonetheless, making the numbers work often requires taking a long-term view of development, according to Brian Nowak, principal at Sweetgrass Design Studio in Minnesota. Nowak was the designer for Hillcrest Village, an affordable housing development in Northfield that does not utilize Phius building metrics, but does incorporate net-zero energy usage standards.

"It's an investment over time, to build resilient, energy-efficient housing," he told the Energy News Network in June 2023.

"That should be everyone's goal. And if we don't, for example, it affects our school system. It affects the employers at Northfield having people that are readily available to come in and fill the jobs that are needed.

"That's a significant long-term benefit of a project like this. And that is not just your monthly rents on the building; it's the cost of the utilities as well. When those utilities include your electricity and your heating and cooling that's a really big deal."

Developers like Patton are determined to incorporate sustainability metrics into affordable housing and commercial developments both because it's good business and because it's the right thing to do.

"I'm not going to solve every issue. I'm going to focus on clean air, clean water, and lowering people's utility bills. That's my focus. I'm not going to design the greatest architectural building. I'm not even interested in hiring those type of architects.

"I had a lived experience of having my heat cut off in the middle of winter. I don't want that to ever happen to anybody I know ever again," Patton said. "So if I can lower somebody's cost of living, that's my sole focus. And there's been a boatload of buy-in from that, because those are historically [not] things [present] in the communities I invest in."


Audrey Henderson wrote this article for Energy News Network.


get more stories like this via email

April is Financial Literary Awareness Month and Hoosiers who are worried about inflation or watching their retirement account on the stock-market roller coaster may be wondering what they should do.

Many households are still recovering from the economic impact of the pandemic, according to the Indiana United Way.

Todd Christensen, education manager for the nonprofit Money Fit Financial, advised creating a spending plan and identifying priorities are good first steps. If you are considering buying a car or house, or taking a vacation, he noted a budget is about more than dollars and cents.

"Whatever it is that motivates you, set a purpose, is number one," Christensen recommended. "Number two is not to start adding income. That's usually where people start, but you've got to prioritize expenses. If you don't prioritize them, you will inevitably have to start eliminating expenses anyway. And you'll go with your emotions rather than with the rational part of your brain."

Christensen sees cash, credit cards and the popular "buy now, pay later" apps as convenient tools consumers often misuse. Convenience prompts human nature to kick in and encourage overspending. He suggested having two checking accounts, one for automatic bill payment and another for fun purchases, and a savings account for long and short-term goals.

Christensen supports teaching kids good money management habits before they earn spending cash as teens by mowing lawns, babysitting or doing chores. If they are not taught how to take care of small amounts of money as early as possible, he cautioned, they will be "terrible" with larger amounts as adults.

"By age two, children have been in their parents' arms going through a checkout stand enough times that they know that there's an exchange going on," Christensen observed. "They're learning that there's something magical about that plastic card or about the phone that they tap."

The Indiana Department of Education mandates all students in grades eight through 12 must have one semester of personal financial responsibility instruction, including lessons on debt management, savings, retirement and investment accounts.


get more stories like this via email

Washington is one of 25 states where people can use the online "IRS Direct File" system, to file their income-tax returns with the Internal Revenue Service. But the future of the program is at risk.

For years, taxpayers' advocates had pushed for a free, simple tax-filing option for people who don't need a third-party tax preparer. But the Trump administration has said Direct File may be a waste of IRS resources.

Casey Lantz, free tax preparation campaign coordinator with the United Way of King County, said it is time for people to voice their support for the program. She's used Direct File and says, since the program auto-fills tax information from forms like W-2s, filing her income taxes this year was the easiest it has ever been.

"I think it's exactly what people wish tax filing was like. And I think the only chance we have of stopping them from cutting it is if enough people say something," she explained.

Direct File guides users through simple questions in English or Spanish, and offers live chat support in both languages. People can check their eligibility and get more information online at 'DirectFile.IRS.gov.'

Adam Ruben, vice president of campaigns and political strategy with the Economic Security Project, said the process removes intermediary tax preparers and uses information the government already has to make it easier to file federal and state tax returns. Ruben explained Direct File is for people with straightforward tax situations, such as employees who get a W-2 from their employer.

"Direct File is not yet available for freelancers or gig workers, or people with complicated investments or who work across multiple states," he continued.

Lantz said even if you are not eligible for Direct File, you can still use it to file an income-tax extension by April 15.


get more stories like this via email

Pennsylvania is among a growing number of states offering residents access to the Internal Revenue Service's free tax filing system, Direct File.

The online tool was created to save people both time and money by allowing them to file directly with the IRS while removing the need for costly tax-preparation services.

Lucas DeBartolo of East Stroudsburg said using Direct File was easy and recommended it for people looking to take advantage of available tax credits.

"And it could be hundreds to thousands of dollars back in their pockets," he said, "and this software is really good at seeing what tax credits people qualify for."

It's estimated about 20% of eligible taxpayers don't claim the Earned Income Tax Credit. DeBartolo said using Direct File was quicker than other online tools he's used and appreciated his quick refund.

Americans on average spend at least 13 hours filing their taxes each year. Direct File cuts down on that time by autofilling information the government already has, allowing users to simply verify its accuracy.

Adam Ruben, vice president for campaigns and political strategy at the Economic Security Project, said the program is user-friendly with no hidden fees and is available in English or Spanish.

"If you get stuck, there's free live chat support in both languages," he said, "and importantly, unlike most other tax software, it will also help you file your state tax return for free."

Ruben said Direct File is not yet available for freelancers, gig workers, people with complicated investments or those who work across multiple states. He said people can check their eligibility and get more information at the IRS website.


get more stories like this via email