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The first hotel in San Francisco to be LEED-EB certified was the Orchard Hotel. Stefan Mühle, the general manager explained how the efficiency process developed, initially through a need to cut operating costs after the 9/11 attacks and the subsequent recession that dramatically reduced business and personal travel.

"After 9/11, we really looked into opportunities to reduce expenses."  Department managers got creative with solutions to save money.   The housekeeping department, for example, discovered cleaning products that are natural, less abrasive to the guest rooms, better for the environment and not any more expensive. In fact, if applied properly they would be less expensive. In maintenance, we found a rebate program with  the utility company (PG&E) that offered free light bulbs, if you discarded your old incandescent lamps and replaced them with compact fluorescents. Every department participated in this and slowly but surely, we started to go green."

"For five or six years we were just trying to save money."

For the hotel industry, cost cutting can lead naturally to green solutions. Since it's hard to raise rates, the best way to increase profit is to cut costs, but it must be done without harming the guest experience. Working with partners such as electric and water utilities was very important for the hotel.

The direct impetus for the LEED-EB certification was a new hotel, the Orchard Garden Hotel, built nearby in 2006 for the same owner. This hotel achieved LEED for New Construction basic certification, the first for a hotel in California. Then, according to Mühle, the owner said, "Now it really does make sense to get both hotels on the same pedestal and make sure that they all have the same types of certifications." In looking around for opportunities, the company came across LEED-EB as a way to certify the existing property.

While greening an existing hotel obviously requires an effort by a lot of people, including vendors, employees, management, and ownership, each successful project does require one person to say, "let's do it." In this case, it was the personal interest of the owner in creating a healthier property for guests and workers.

It's becoming more and more feasible to make positive ROI cases for green building and green operation strategies.  It saves money in the long term.  And incentives and rebates can make it cost effective upfront, as well.  Add to that the ability to leverage these operational cost savings with a marketing advantage to discriminating customers -- and every property that is added to a "green portfolio" makes the company stronger and more competitive.
According to the AARP, the lowest cost reverse mortgages are public loans.

The least expensive reverse mortgages are the ones offered by state or local governments. But these "public sector" loans generally can be used for only a specific purpose, like home repairs. Many are only available to persons with low to moderate incomes. But the low cost can make these loans very attractive.

Energy Efficiency and Weatherization

Remodeling projects or home maintenance projects of significant sizes, such as major plumbing upgrades, or energy efficient window replacement or a new roof, can warrant using equity in your home.   These major home renovations can improve the quality of life for a senior at the same time they reduce monthly energy bills and improve the value of the home. 

Deferred Payment Loans (DPLs)

Many local and some state government agencies offer "deferred payment loans" (DPLs) for repairing or improving your home. This type of reverse mortgage gives you a one-time, lump sum advance. No repayment is required for as long as you live in your home.

Property Tax Deferral (PTD)

Some state and local government agencies offer "property tax deferral" (PTD) loans. This type of public sector reverse mortgage generally provides annual loan advances that can be used only to pay your property taxes. No repayment is required for as long as you live in your home.

According to a 2007 AARP study, some type of PTD program is available in parts or all of the following states: Arizona, California, Colorado, Florida, Georgia, Idaho, Illinois, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, North Dakota, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, Wyoming, and the District of Columbia.

AARP does not endorse any reverse mortgage lender or product -- so do your homework and ask a trusted financal advisor for help in analyzing your situation and the reverse mortgages available to you.

Read more at AARP about Low-Cost Public Loans


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