By Aaron Fairchild

I am excited to share the most inspiring collaborative effort I have been a part of. Goodwill Baptist Church, an African American church in Seattle’s Central District, is hosting a conversation during their Sunday morning service to talk about their community development vision. Their approach and vision has opened my eyes in many ways. You see, I came to my work at Green Canopy through an earnest desire to help resolve the dichotomy between our civilization’s behavior and the environment upon which we rely. As I continue my journey, I become increasingly aware of the many issues facing our civilization. And the most significant of these, I believe, is our difficulty coming together to be whole.

To resolve the dichotomy of the civilized [world] and the wild [environment], we must first resolve to be whole.
- Gary Snyder

This is what people call for when explaining Black Lives Matter. Not that everybody else doesn’t matter, but that society is not whole until we collectively lift up Black lives and bring them into a shared wholeness of opportunity and prosperity. Lifting up the Black Church is a regenerative effort in many aspects. By helping to empower this community to develop their land, we help lift up a cornerstone of the African American culture and contribute to our collective wholeness! Learn more about the importance of the Black Church in the African American culture and why helping the Black Church is so important.
 
I would like to invite you to join this conversation during their normal Sunday service via a Facebook livestream, this Sunday, August 16th at 10am. I hope you can join me in this regenerative effort that expands outward beyond Goodwill Baptist Church. 

RSVP for the Livestream

The Goodwill Baptist Church Development Plan

In 2017 I had the pleasure of meeting Bishop Garry Tyson of Goodwill Baptist Church. He reached out to Green Canopy to discuss a property owned by the church. He shared with me that over the last decade, 12 Black churches in the Central District have felt forced to sell their land as victims of the ongoing epidemic of displacement. At our meeting Bishop Tyson invited me to join him on a journey of empowerment, collaboration and friendship that continues today with routine meetings to identify partners and iterate development approaches. 

Through a collaboration with the College of the Built Environment at the University of Washington, the Nehemiah Initiative, and Green Canopy; Goodwill Baptist has developed a generative approach to help build a more beloved community in the Central District. Goodwill Baptist will develop their property in three phases as an example of what we can accomplish working together. Phase One, at a high level, will focus on affordable housing for families in a deep green apartment building constructed on a their vacant, grass parking lot. Phases Two and Three will focus on sustainable mixed use and mixed income projects.

The development decisions for all three phases are led by the Church and African American led organizations, with the shared desire to hire second chance employees to construct these projects through the general contractor, Square Peg Developers and their partner WELD. Green Canopy will continue in support of Goodwill Baptist and the development team to help ensure the highest degree of quality and sustainability can be most cost-effectively achieved.
 
In order to advance the work of Phase One, the Goodwill Baptist’s development team, led by developer and property manager Urban Black and architect Donald King (members of the Nehemiah Initiative), need to complete the pre-development work. Until now, the work has been a labor of shared commitment. So, Goodwill Baptist Church is seeking charitable contributions to help raise a minimum of $50,000 to complete the pre-development work.
 
I would like to invite you to consider contributing to Goodwill Baptist’s Building Fund and joining us on Sunday’s livestream at 10am.

Contribute to the Building Fund

$50,000, a relatively minor sum, is necessary to fund the initial part of the pre-development work required to complete the community engagement, development plan and concept design. Once there, the church’s development team will continue to raise any additional funds needed to complete the full permit package and pay permitting fees. This will also allow serious conversations for construction and long-term financing to begin. A collective giving effort to help empower this community to develop their land is the first step toward building the broad base of support necessary to activate the Beloved Community of Reverend Dr. Martin Luther King’s vision for the Central District and our region.
 
Dr. King’s Beloved Community is a global vision of wholeness, in which all people can share in the wealth of the earth. In Dr. King’s vision of Beloved Community, poverty, hunger, and homelessness will not be tolerated because the structures of our collective human decency will not allow it. Racism and all forms of discrimination, bigotry, and prejudice will be replaced by an all-inclusive spirit of sisterhood and brotherhood; wholeness. Only through the wholeness a beloved community has to offer can the dichotomy of the civilized world and our environment be resolved. The approach that Bishop Tyson has taken is a restoration to wholeness; a beloved community development approach. Contribute and be a part of helping to midwife a future that generations to come will be grateful to inherit.   

Contribute to the Building Fund

RSVP for the Livestream

By Aaron Fairchild

In the heart of Ballard, arguably one of the region’s most opportunity rich communities, seven newly constructed, affordable homes will soon be available to rent for families earning 60% and 80% of the area median income. In partnership with many others, Green Canopy will complete these Net Zero Ready, all-electric, healthy, Built Green certified and affordable homes this summer.

At the front end of the COVID-19 pandemic the crossed the equinox and entered into spring and I wrote,

“As the earth crosses the threshold of equinox into spring, humanity finds itself awakening to the reality that society too is crossing a threshold.”

Shortly thereafter, in the fullness of springtime in bloom, much of America, and many parts around the world, experienced a secondary awakening, crossing yet another threshold. Mr. Floyd’s brutal passing was the moment the world recognizes as a threshold’s leading edge into new societal territory. The future our hearts know is possible, feels possible. The better version of our society and interactions feels possible. I am grateful for those in the streets protesting in favor of ushering in that better version of ourselves. They march for change and transformation, for justice, for equity, for the young, the old, for Black lives, for the left behind, marginalized and excluded; they march for humanity’s better version to bloom.

The work needed to realize this time’s greater purpose takes courage.

Indeed, we are all linked by our common humanity and feel that we must do something. In 2017 Green Canopy officially changed its mission to, We build homes, relationships, and businesses that help regenerate communities and environments. The journey since then has been filled with learning how to navigate rapidly changing markets, learning what regenerating communities requires, and learning how to cost effectively build the best-in-class housing that regenerative communities deserve. It has also been filled with attentive listening into new relationships and deepening existing ones. Through it all I have come to understand that for Green Canopy to realize its full potential, those relationships are the most critical component to our regenerative approach.

In this moment, can we let go of fear, listen and collectively focus on what action is needed to create more equitable, healthier, and resilient communities and relationships?

Taking the difficult yet necessary steps to explore the white supremist American culture begins with the listening and vulnerability required to let empathy flow in. From there a personal journey can begin. One that is full of exploration and learning the history that undergirds the present, and how we contribute to injustice and inequity. With lessons learned and relationships built throughout Green Canopy’s history, our team continues to learn and improve its ability to respond with compassion. May we prove ourselves worthy of this work, and may you hold Green Canopy accountable to the work our future requires. Below is but one example of this work.

Can we consider new and more equitable ways to provide for society’s basic needs such as, health, food, housing, education, security, and employment?

In the heart of Ballard, arguably one of the region’s most opportunity rich communities, seven newly constructed, affordable homes will soon be available to rent for families earning 60% and 80% of the area median income. In partnership with many others, Green Canopy will complete these Net Zero Ready, all-electric, healthy, Built Green certified and affordable homes this summer.

These homes were designed far beyond what the basic code requires to accommodate families; five of the units have three bedrooms, and two units have two bedrooms with garages. We are humbled to work with so many aligned partners on this project. The relationships required to produce deep green and affordable homes, utilizing a reverse displacement strategy into an existing community of opportunity, are many and worthy of note. Without the contribution of all of these people and organizations, this project would not have been possible.

With deep gratitude for the work require for change, we would like to thank:

• The Washington State Housing Finance Commission. This group of people deserves special recognition for seeing the vision and quickly organizing to ensure that these deep green units in the heart of Ballard can be offered to families at the 60% and 80% AMI levels. Thank you…you all are amazing!

• Russ Katz with Windermere Real Estate who initiated this project at the beginning – 7 new Net Zero Energy Ready homes were built in our community because of the opportunity you helped bring together.

• Julian Weber and the talented team at JWA, we appreciate the way you demonstrate your values through the innovation of your designs and your own Net Zero Energy office building!

• Malsam-Tsang Structural Engineering for your long-term partnership and consistent, thoughtful approach to structural design.

• The investors in Green Canopy’s Cedar Fund for championing a project at the intersection of your values.

• Urban Black and Kateesha Atterberry for your friendship, guidance and desire to collaborate on making these best-in-class homes available to families in need.

By Sam Lai

Taking Bold Action to Lead by Example: Jordan Morris on Living a Net Zero Energy Lifestyle

Transformation requires celebrated leaders in the community to not only lend their voices, but also to take actions in every day personal decisions, like buying a home. 

Not only are the Seattle Sounders FC committed to social justice and inclusion, they committed to carbon neutrality in 2019. Seattle Sounders FC partnered with Forterra to offset carbon emissions by planting trees along the Green-Duwamish River. This was bold and courageous action, making the Sounders the first, and only, carbon neutral professional sports franchise in US history.

Similarly, the Sounders’ star forward, Jordan Morris, has taken bold action to lead by example with a carbon-free lifestyle at home. Initially, when Jordan started his search for his new home, he was not looking to make a grandiose statement about the environment and climate change. He was looking for a comfortable, healthy, and beautiful place to call home. But when Jordan learned about the benefits of living in a certified 5-Star Built Green, Green Canopy Net Zero Energy home, he was compelled to share his story with others.  He understood that industry transformation requires higher-end market innovation to be validated by cultural leaders before innovation can make price points affordable.

Net Zero Energy homes are still extremely rare, even in the Pacific Northwest. Early adopters are required to make healthy, carbon free, Net Zero Energy lifestyles equitable and more affordable for all community members of all income levels, not just superstars.

For Jordan Morris, actions speak louder than words. He has already earned a reputation for putting his teammates first whether donning Sounders’ Rave Green or the US National stars and stripes. Off the field, Jordan is also building resilience in our environment and community.

Special thanks to the Van Wyck and Porter team for making this video possible.

To learn more about how Net Zero Energy lifestyles can also be affordable, read about the 7-unit affordable rowhouse in Ballard.

50th Earth Day
by Aaron Fairchild

The arrival of this Earth Day comes during a punctuated time of hardship and crisis felt across the Earth.  On the 50th anniversary of Earth Day, our connection to Earth and our celebration of life may perhaps feel stronger as a result.

With Earth Day occurring during a historic global crisis, it may help highlight our need to change to a society that is more just, equitable, and resilient.

Hopefully our collective attention will shift to areas of greatest need throughout society. To help those of greatest need in balance with all life on the planet is a tall and encompassing order that requires us to behave differently. And while change is difficult, in order to realize a better future for all, change is what is required.

To fully embrace the 50th anniversary of Earth Day and all that it stands for, there may be no better manner than to read the manifesto of change that helped to usher in the first Earth Day in 1970.

I came into my twenties reading the poet philosopher, Gary Snyder. One of the fondest memories of being with my father was when he and I sat on the edge of an alpine lake together and read Gary Snyder’s Pulitzer Prize winning book, Turtle Island. In the back of what is largely a book of poetry, he embedded a short essay as bedrock called, Four Changes. Written in the summer of 1969, Four Changes quickly became the environmental manifesto that helped to lift up Earth Day and all that it stands for. The manifesto calls us to a radical shift in thinking about our relationship with the planet in four critical areas: population, pollution, consumption, and the transformation of our society and ourselves. When I first read Four Changes, I found hidden truths to living harmoniously with the Earth that changed the course of my environmental thought and perspective.

At the 25-year mark of Earth Day, in 1995, Gary Snyder wrote, “The apprehension we felt in 1969 has not abated. It would be a fine thing to be able to say, ‘We were wrong. The natural world is no longer as threatened as we said then.’ One can take no pleasure, in this case, in having been on the right track… Naïve and utopian as some of it sounds now, I still stand by the basics of ‘Four Changes.’”

Six years later, shortly after the events of 9/11 I wondered if Gary Snyder had anything he could offer in the aftermath. I found a Berkley email address for him and wrote to Mr. Snyder. I shared that his writings had influenced my thinking and my relationship with my father and asked if he had any words of wisdom to offer in reflection on 9/11. A couple weeks went by and then, unexpectedly, I received a response: “This is what my friend Wendell Berry has to say about it.” He inserted a link, an early version of Mr. Berry’s essay, Thoughts in the Presence of Fear. Wendell Berry’s essay is another manifesto, a call to change. It also reveals hidden truths and changed my thoughts on environmentalism and social justice.  

Leading up to the 50th Earth Day, with COVID-19 as the backdrop, I reread both of these seminal essays. I inserted COVID-19 where appropriate and in this way their words become a manifesto for this moment as well. Rather conspicuously, neither writing points to saving the whales, or polar bears, or forests. They are not about environmental protection or preservation per say. They are short guidebooks on how to establish a more equitable and resilient economy and society. They point the direction toward environmental and social equity as a singular issue, not as separate issues to be addressed independent of each other. In this way addressing COVID-19 and its inequitable health and economic hardship is addressing changing climate. To meaningfully address climate change, we don’t need new technologies, we need new behavior, and social, political, and economic structural changes. We are witnessing this truth right now with the collapse of oil largely due to a lack of demand. Issues of resilience require holistic solutions that are politically, economically, socially, and environmentally intertwined.

On this Earth Day 2020, I stand by Four Changes and Thoughts in the Presence of Fear, and I am hopeful.

I am hopeful that through our collective work to address COVID-19 and the inequitable health and economic devastation created in its wake, we will also be holistically addressing the intertwined issues of resource scarcity, social equity, and climate change. At the center of 50 years of Earth Days, a turning has begun, and I am hopeful.

For more on hope, here is a short writing by another one of my heroes, Krista Tippet. On Hope.

Courage for a Time of Change
by Aaron Fairchild

As the earth crosses the threshold of equinox into spring, humanity finds itself awakening to the reality that society too is crossing a threshold. The encompassing crisis and the equinox hold similarities worth noting. During the equinox, the light from the sun shines equally upon everyone around the globe. The number of daylight hours and nighttime hours are equal across the planet, and equally felt by every living thing; a shared and beautiful solar rhythm experienced across the planet. The equinox and this crisis offer us an opportunity to reflect on our shared humanity.

It takes courage to believe that this half-lit time holds a greater purpose.

Indeed, we are all linked by the spread of the coronavirus – the natural world, and our global economy – the human world. Through this moment humanity is, at some level, coming into the awareness that the natural world impacts our collective ability to survive and thrive on the planet, and how we conduct our economy collectively impacts us as well. Fortunately, we are also becoming aware that we can rapidly adjust our lives and our organizations when motivated to do so.

In this moment, can we let go of fear and focus on what present action is needed to create more equitable and resilient societies, and healthier lives?

For starters, our communities have immediate needs for temporary health clinic facilities, quarantine and transitional housing, and access to food for those in need. Take a second to find your local food bank and make donations today. And as we continue traveling further into the crisis, needs will shift into recovery and renewal.

Is it possible to consider both the immediate needs, and the mid-to-longer term needs of renewal that our communities will face?

At this time, it is hard to consider much beyond the immediate. Everyone in my community is feeling the weight of this moment. Somewhere inside I feel the question, “Is it too soon to begin thinking about rebuilding and renewal when we aren’t even aware yet how much damage will be done?” I feel this question, but I also feel another, “How do we ensure a more equitable and resilient society emerges from the wreckage of this pandemic?” I can’t help but be curious about this already.

Given the burgeoning awareness of our interdependence, can we consider new ways to provide for society’s basic needs such as, health, food, housing, education, security, and employment?

At the very least, perhaps some of us, even within this uncertain moment, can begin the work of renewal to a more beautiful future our hearts know is possible. A future where social justice and environmental sustainability go hand in hand. A future where, regardless of income or social standing, everyone can live in a net positive energy house or apartment. A future where everyone can save and invest in positively impactful and regenerative companies while earning balanced and resilient returns on their savings. A future where our wildlands are preserved and restored for the benefit of all shared life on the planet.

It can take courage to look for purpose within uncertain times.

A blessing from John O’Donohue…

For Courage

When the light around you lessens
And your thoughts darken until
Your body feels fear turn
Cold as stone inside,

When you find yourself bereft
Of any belief in yourself
And all you unknowingly
Leaned on has fallen,

When one voice commands
Your whole heart,
And it is raven dark,

Steady yourself and see
That it is your own thinking
That darkens your world,

Search and you will find
A diamond-thought of light,

Know that you are not alone
And that this darkness has purpose;
Gradually it will school your eyes
To find the one gift your life requires
Hidden within this night-corner

Invoke the learning
Of every suffering
You have suffered.

Close your eyes.
Gather all the kindling
About your heart
To create one spark.
That is all you need
To nourish the flame
That will cleanse the dark
Of its weight of festered fear.

A new confidence will come alive
To urge you toward higher ground
Where your imagination
Will learn to engage difficulty
As its most rewarding threshold!

Perspective

We believe in a future where good homes are affordable, and our communities are vibrant and resilient.

As I sit down to type this, markets continue to gyrate and the outlook continues to change. Over the last few weeks, we have all received a flood of COVID-19-related emails and notifications. Throughout the world communities and companies are in crisis management, borders are closing, schools are closing, governments are offering assistance to keep communities safe. Simultaneously, oil prices have collapsed due to a price war within OPEC. It has been hard to find a moment of lasting calm within the news cycle to capture perspective and come to terms with what the virus and the deeper social and psychological infection caused by the pandemic actually mean for all of us.

From my vantage point at Green Canopy, three questions come to mind.

1) What are the underlying positive facts?

2) How is Green Canopy responding in the short-term?

3) What does the longer-term outlook hold?

The Silver Facts.

While the future outlook is uncertain, our past gives us some positive indications. There are silver linings within every storm. Real estate is not the cause, nor is it central to the recession like it was in 2008. There is significantly more equity in housing at this time than in 2008. Many corporations and venture capital firms are flush with cash. Monetary policy from the Federal Reserve has been swift and focused on propping up real estate as much as possible through low cost debt and quantitative easing. The President and Congress are working together to quickly craft a major stimulus package that would see government spending increase substantially. People are coming together and beginning to reimagine what a more resilient and vibrant future for our country and local communities will look like. Our desire for connection, love, and belonging is felt more during prolonged isolation and crisis. As we cross the threshold of equinox into spring and slowly emerge to the other side of this pandemic, greater empathy and stronger community connections will be possible.

What is Green Canopy doing in the short-term?

First, the Company is adhering to all applicable government recommendations and requiring our office team to work from home. Construction work on our projects continues unabated, with precautions,  at this time. Green Canopy will continue to track local, state and federal requirements and recommendations that impact onsite inspections, permitting timelines, and employers. The Green Canopy Team is doing its part to keep the virus from spreading.

Second, many of our more than 100 investment partners have chosen to invest with us because of our dedicated and thorough attention to risk management. The Company and its principals also invest significant capital alongside of our investors and provide personal and corporate guarantees to ensure that we are aligned in all that we do. Green Canopy was founded in the middle of the last recession and we know that proactive risk management practices are key to protecting and growing capital in times of uncertainty. We believe the choices we’ve made, such as investing in urban walkable locations, using low leverage, focusing on deep green, quality, and highly differentiated assets, and buying right, will pay off if fundamentals deteriorate during a recession. And then Amazon goes out to hire another 100,000 employees. While anything can happen in the region, real estate seems positioned to perform better than most other sectors given our regional need for housing is poised to increase. That said, Green Canopy is temporarily pausing on acquisitions and re-negotiating with sellers of properties in the pipeline.

Third, we will continue to raise as much capital in the Cedar Fund as possible in the months ahead so we can play offense when the time is right. The Cedar Fund was deliberately structured to be a resilient real estate fund capable of generating income regardless of the cycle. Our goal is to be positioned to take advantage of a new pricing environment so that we can deliver even more affordable, deep green, quality product while earning solid returns for investors. We believe there will be a return to a more value-oriented environment, but this won’t look anything close to 2008 given that both debt and equity players have been behaving reasonably responsible for the last decade. Given the need for housing, coupled with low interest rates, project starts occurring now or in the near future look well positioned for the cycle and should perform well once the short-term pause in regional economic activity runs its course.

What are the potential longer-term implications?

I expect we will see a dramatic increase in the need for affordable housing in walkable, urban markets. Windermere Real Estate’s Chief Economist, Matthew Gardner, produced a video last week with his view on the potential impact to the Seattle-area housing market. His opinion is that the market fundamentals of the region are sound, but the virus is likely to cause a slowdown in the next few months as many buyers choose to wait. However, based on the fundamentals, he expects the market to have a strong turn around once the virus concerns are effectively addressed.

Mr. Gardner’s view is encouraging for the mid-to-long-term outlook. However, no one, including Mr. Gardner, has experienced anything like this before. So, while his accent resounds with authority when he asserts the fundamentals may remain in place, as noted above, Green Canopy is actively preparing for a change to the fundamentals.

One change I anticipate is greater public- private partnerships; increased collaboration to deliver housing at the intersection of sustainability and affordability. The team at Green Canopy created a Theory of Change a few years ago and it continues to motivate and keep our work aligned. We believe in a future where net zero energy homes are the norm, that these homes are affordable, our wildlands are preserved, our communities are vibrant and resilient, and impact investors earn profits.

This moment offers our society the gift of transformation to a more equitable, sustainable and just society. Rather than fear the coming disruption, perhaps take heart in knowing that we are a community first and foremost and that collectively we can create massive and positive change in behavior when motivated to do so.

Finally, I would like to encourage all of you to join me in demonstrating kindness in all things during this time and to take two quick steps:

1. Ask the federal government to support measures for homelessness and housing in the upcoming emergency supplemental spending COVID-19 bill. As of now, there are no provisions to support people experiencing homelessness.

2. Sign on to the letter requesting an urgent, direct focus on people experiencing or at-risk of homelessness in the statewide COVID-19 response. 

In Community,
Aaron Fairchild 

Green Canopy is proud to be a driving force in the movement towards all-electric.

Green Canopy has been committed to addressing the challenges of climate change and resource scarcity in our urban infill communities since 2009. Homes and the built environment are responsible for 40% of the annual global carbon emissions, the leading source of climate change.

“Transforming the built environment towards greater sustainability is fundamental to our core beliefs. Building all-electric homes is a no-brainer. It is a key solution to reducing our dependence on fossil fuels. It creates healthier, safer communities, and eliminating gas pipes and air ducts reduces the cost to build,” says Aaron Fairchild, CEO.

One of Green Canopy’s all-electric townhomes across from the Ballard Locks

Photo of Green Canopy CEO Aaron Fairchild, by Grant Hindsley for The New York Times

Green Canopy has built and sold hundreds of homes; every one of them clean, all-electric. 

We choose to build this way because we believe business has a role to play in solving for our local housing and global climate crisis. Building all-electric releases the dependence on fracked gas and provides a healthier, more resilient future for our homeowners and our communities.

Dustin Van Wyck, Real Estate Broker with Van Wyck & Porter Real Estate shares that “since 2009, Green Canopy has been ahead of the curve serving as the leading advocate for adopting eco-friendly building trends across the Pacific Northwest. They build homes based on the understanding of how it can impact the present and future health of the environment, as well as the health of the people in our City.”

We are pleased to share The New York Times highlighted Green Canopy as a developer leading the charge towards building all-electric. Green Canopy is blazing a path for other developers to build all-electric, even before regulation is put in place.

The Seattle Times article “Natural gas industry’s $1 million PR campaign sets up fight over Northwest’s energy future” details the gas industry's campaign to fight local progress towards all-electric building proposals. "Natural gas is under an existential threat," the gas industry supporter proclaims.

The only existential crisis Green Canopy is aware of is a human one. Read more on why we believe all-electric is the future of homebuilding and why Green Canopy’s all-electric homes are healthier for the planet and for our homeowners.

While it’s clear the gas industry is preparing for a  lengthy battle to ensure the continued use of fracked gas, there is hope on the horizon. The Seattle Times article features Green Canopy co-founder Sam Lai showcasing one of Green Canopy’s hundreds of all-electric homes. “For electric systems to completely take over, there will need to be cultural change,” says Lai. As of 2018, more Seattle homes are being built with electric heat than not! Green Canopy has helped spearhead this transformation and will continue to advocate for the regulation needed to bring the percentage of clean all-electric homes to 100.

In the new year, Green Canopy has already brought the all-electric issue to our regional journals.

Aaron Fairchild, Green Canopy’s CEO continued the push with the opinion piece, “All-electric homes are a smart option” in the January edition of the Puget Sound Business Journal. “I’m convinced that clean, sustainable, fossil-fuel-free housing is the right path to sustainability in the face of both our housing crisis and our climate crisis,” says Fairchild.

Green Canopy will continue to build all-electric and advocate for the transition to the Clean Energy Future.

To be grateful is perhaps simply to be present and aware of all the beauty that surrounds us. In this present awareness we are gifted the opportunity to truly see each other and heartily engage in life. The recognition of the deep evergreen pattern in the cover of our forest canopy witnessed only through eyes that are open and attuned to looking, is perhaps the key ingredient of our thankfulness. To be alive and recognize that this privilege is special, breathes an enhanced vibrancy in all that we do! The recognition and awareness of our privileged aliveness is an expression of gratitude.

To express gratitude in no way diminishes the urgency or the importance of the work to address climate change and our social imbalances and injustices. 2019 was a stark year for those engaged in this work. The scientific community has once again shocked us with news that the 2030 climate goals will be even harder to attain as our issues seem to compound rather than abate. Our political leaders continue to blatantly demonstrate they actually believe that not everyone is equally deserving of opportunities enjoyed by an elite. However, hope abounds! Across this region and country there are many examples of teams like Green Canopy coming together to activate communities in response to these challenges, regardless of how daunting they are. A quote on hope, by Vaclav Havel, that I came across in 2019 eloquently captures an active and virtuous hope:

“Hope, in a deep and powerful sense, is not the same as joy that things are going well, but, rather, an ability to work for something that is good, not just because it stands a chance to succeed … The more unpropitious the situation in which we demonstrate hope, the deeper the hope is. Hope is definitely not the same thing as optimism. It is not the conviction that something will turn out well, but the certainty that something makes sense, regardless of how it turns out.”

— Vaclav Havel

So, as this year comes to a close, I would like to recognize the work that the Green Canopy Team engages in, day in and day out. With gratitude I recognize all of the partners, stakeholders, real estate agents, home buyers and sellers, collaborators, and friends of Green Canopy’s mission to build homes, relationships, and businesses that help regenerate communities and environments. There are many unsung, yet absolutely essential contributors engaged with certainty that this mission makes sense and the good work must be accomplished. I believe that upon reflection we all come to a shared the belief that keeping gratitude and hope in the forefront of thought, in all that we do, is essential to producing high-quality work imbued with love. Thank you for your collaboration!

If being alive is the primary privilege we all share, then to be alive and doing the good work to help regenerate communities and environments is to be doubly privileged. For this I share my gratitude for undertaking the work with so many fabulously smart and committed collaborators. Thank you! I look forward to continuing to express my gratitude within the communities Green Canopy serves throughout 2020 and beyond. Happy New Year!

Disrupting the Construction Industry –Why it Should Matter to You & How to Do it

If you have been engaged in construction, you’ve likely come across the 2017 McKinsey Global Institute report Reinventing construction: A route to higher productivity that identifies construction as the last lagging industry with an “intractable productivity problem.”  The report states that revolutionizing construction “can boost the sector’s value added by an estimated $1.6 trillion, adding about 2 percent to the global economy.”  

Green Canopy was founded out of the idea of disruption and it has been a core part of who we are and strive to become. One area ripe for disruptive innovation are the norms around cost overruns. Cost overruns of at least 10% have become standard in the industry.  Since 2014, Green Canopy has managed to disrupt the industry with an average construction variance of less than 3.5% -- this is nothing short of remarkable in the construction industry. Green Canopy’s platform for cost control - the project development platform - has been vital for this success.

The project development platform provides a critical lever for higher productivity in the industry. Green Canopy is furthering this imperative by using this platform to help others develop real estate projects more efficiently. The platform focuses on three key principals:

1. Create enabling processes that can be easily improved

2. Define control points within the development pathway

3. Vertically integrate when possible to bypass external bottlenecks
   

ENABLING PROCESSES:

Our process improvement systems are focused around the idea that inefficiency is best rooted out by those who are closest to the ground. Within our Quality Control, Inspection Checklists, Construction Packages, and streamlined Feasibility process, we seek to provide our team with the tools to leverage their expertise through defined processes that engage experts early while providing the right information at the right time.

For example, our Construction Package consists of everything that our construction managers will need to deliver a project on time and on budget. They are the final reviewer of this package and ensure that they have every piece of information needed in order to get started.

Every construction package contains:

• Full set of construction plans - detailed to the last finish screw

• Comprehensive construction schedules

• Each subcontract’s scope of work & purchase orders

Once the construction package is complete, the construction manager is enabled and empowered to provide the final review. Using a checklist approach, they check every aspect of the Construction Package, ensuring they have every piece of information needed in order to “push play, and go”.  Not only does this level of detail help control costs, but the process ensures the project can move smoothly and continuously.

CONTROL POINTS:

In addition to processes that enable our team members, we’ve also created defined waypoints throughout the project development pathway to provide oversight and clear points of control. These points allow our team to gather and confirm that a project has everything it needs in order to proceed into its next phase of development, from design to estimating to construction, and make critical decisions regarding the project such as budget limits, design aesthetic, and efficiency goals. Again, governed by a checklist approach, these waypoints create opportunities for oversight from our underwriting committee, led by our Board Chair Peter Orser, as well as any other internal stakeholders and clients who are involved in the project.

VERTICAL INTEGRATION:

Despite having the winds of economic recovery at our backs for some time, the construction industry is still feeling the pinch of a labor shortage. This constriction is not only felt by those who build our homes but also but by those who design and entitle our projects. In order to better navigate the constraints of constantly outsourcing our labor, we’ve made strategic decisions to vertically integrate the design and entitlement process, estimating and purchasing, as well as framing. Having a full team of architects, estimators, and framers in house provides us with a distinct advantage when it comes controlling our costs alongside our project delivery timelines. By having these experts in house, we are able to leverage their combined expertise to design cost efficient projects and take on opportunities like off-site panelized framing that allow us to deliver a better product in less time.

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While revolutionizing the construction industry will provide an economic boost to our economy, the reality is that without it, meeting the challenges of the housing crisis and future sustainability requirements will be difficult to meet. Our local think tank, Sightline, has completed some analysis on the cost of housing, using the example of an apartment. The author, Dan Bertolet, points out that “construction is the biggest single cost, consuming 39 percent of the rent check.” And, while we agree that developers have little control over the cost of labor and materials, using a checklist driven process platform can ensure tighter cost control.

Learn more about Green Canopy’s Developer Services.

We are proud to announce that Green Canopy is launching Real Estate Development Services! As an extension of Green Canopy’s existing work building its own deep green and Net Zero Energy projects, Green Canopy will now offer its development and general contracting services to third party investors, developers and investment property owners. Whether you are building a deep-green, affordable multi-unit project or investment property in Seattle or Portland, we are excited that Green Canopy can now help you remove uncertainty out of the development and construction process while delivering your projects on time and budget. The Green Canopy team has been informed by hundreds of projects since 2010, and with care we have packaged our collective learnings into a proprietary process management platform that offers the best in project and change management. The Green Canopy process is designed to help you mitigate risk, contain costs to allow for greater social, environmental and financial returns.

We look forward to working with you or anyone in your network that could use Green Canopy’s real estate development and construction services.

The Future of Homebuilding is here - And it’s Powered by 100% Clean Energy

An alarm was sounded again last week by young people around the world demanding action and change towards addressing our climate crisis. “Systems change not climate change,” marchers’ signs read – a call for not just individuals, but for governments and businesses to shift behaviors and policies. Although the streets have since been emptied of climate strikers, Green Canopy is still marching alongside many who are actively doing the hard work to bring about a new paradigm and new behaviors towards systems change.

One new behavior that we are excited about is Seattle City Council’s recent step towards passing legislation that would remove natural gas from new construction buildings in the city. Green Canopy fully supports this movement beyond fossil fuels, and we have been voluntarily been selling all-electric homes since the sale of our first home in 2010.

“We’re proud of our Seattle Council members for identifying that this is the right thing to do - and the market is ready for this as evidenced by the hundreds of electric homes that we have sold.”

— Aaron Fairchild, CEO

Why does Green Canopy choose to build all-electric homes?

We cannot continue to rely on fossil fuels
Fossil fuels, including coal, oil, and natural gas are currently the world's primary energy source – but they are finite resources and cause irreparable harm to the environment and our communities. According to the U.S. Energy Information Administration, the burning of fossil fuels was responsible for 76 percent of U.S. greenhouse gas emissions in 2017 — It is time to make the shift and build a clean energy future.  The gas we use to cook with and heat our homes is often fracked gas, a significant source of carbon and air pollution. When faced with the choice, building all-electric homes that run on 100% clean energy – sometimes even powered by the sun – is a no-brainer.

All-electric homes are better for your health
The dirty secret of the gas industry is that what is delivered to our homes to heat our homes and cook our food is toxic to our health and our children’s health. When heating our homes or cooking food for our children, we breath in toxins such as carbon monoxide and formaldehyde.  Studies show that this increases the risk of respiratory illness like asthma, especially in children. With our homeowners’ health in mind, we put induction cook stoves into all of our homes. While we know change is sometimes uncomfortable, induction takes advantage of the latest in technology to help you cook faster, with more precision, and the best yet – healthier.

More power costs less
We live in an advanced technological age where increasingly obsolete technology is being replaced by the latest and greatest. Appliances powered by natural gas are an inevitable relic of the past, especially as more powerful technologies already exist and are commonly used. The induction stoves and electric heat pumps in our homes are far more efficient than their gas counterparts, meaning they not only perform better, but save our homeowners money as well, allowing them to spend their money where they want to – not on their energy bills.

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Recently, we partnered with Climate Solutions and Van Wyck and Porter to showcase one of our latest all-electric homes. With pie in hand from 314 Pie, we gathered with our community to demonstrate the benefits of the technology, design, health, and comfort of our all-electric homes.

““We know seeing is believing and highlighting what’s already happening in all-electric home building makes it easier to scale and accelerate solutions to the problem of building emissions. Building emissions are a big focus in addressing climate change and it’s exciting to see how businesses like Green Canopy are leading the way in making all-electric buildings a more accessible reality for communities across Washington State”

— Stephanie Noren, Climate Solutions

Check out some of the photos from our event!

For Immediate Release

SEATTLE, WA & PORTLAND, OR (August 20, 2019) – Green Canopy Inc., announced today it has completed the initial closing of its Series D preferred equity raise. The company raised $5.13 million from 35 impact investors across the nation. Green Canopy is a mission-driven market leader in deep green, urban infill residential design, development, construction and fund management. The completion of Green Canopy’s Series D growth capital will scale the Company’s impact by unlocking $120 million in development capacity, and by leveraging the highly efficient Green Canopy Development and Design Platform to build residential and low to mid-rise apartments for aligned investors, developers and community partners.

“We are humbled and proud to be in community with over 70 investors who all share in the desire to see Green Canopy realize the financial and impact opportunity it was built to accomplish,” says Aaron Fairchild, CEO.

Green Canopy has successfully developed a specialized, integrated and scalable platform to develop, design, build, and bring to market deep green residential properties that help regenerate communities and environments in the urban infill neighborhoods of Seattle and Portland.

Peter Orser, Green Canopy Board Chair & former homebuilding executive, says, “We see a future that can deliver on a triple bottom line. With this team, mission and platform we believe the completion of the Series D preferred offering will enable Green Canopy to dream bigger and achieve heights the typical real estate company doesn’t even consider, much less include in their core values.”

DISCLAIMER: This is not an offering or solicitation of investment.

About Green Canopy
Green Canopy, Inc. and wholly owned subsidiaries Green Canopy Homes, LLC and Green Canopy Capital, LLC have offices and teams in Seattle and Portland. Green Canopy Homes began building in 2009 and has successfully sold over 165 third-party certified, deep green and net-zero energy homes earning over $125 million in gross revenues.

Green Canopy has successfully developed a best in class, specialized business model for urban infill development at scale. Development projects are built on small, medium and large, non-contiguous lots in walkable urban neighborhoods of opportunity. The Company has a vertically integrated process and established systems for acquisition, feasibility, design, estimating, construction project management, sales, owner services and fund management. Since inception the Green Canopy Team has focused on creating an authentic, disruptive and widely recognized brand.

The Company’s mission is to build homes, relationships and businesses that help regenerate communities and environments. By committing to the deep work of its mission, Green Canopy believes a future is possible where net zero energy homes are the norm, these good homes are affordable, wildlands are preserved, communities are resilient and vibrant because they are inclusive, and people who want to invest in that future earn profits. 

For more information contact:
Susan Fairchild, Director, Investor Relations & Impact
206.792.7280
susan@greencanopy.com

Contributed by Emily Butterfield and Ryan Nieto

For blackberry lovers, outdoor enthusiasts, and baseball fans, summer is a cherished time in the Pacific Northwest. It is also a time cherished by Green Canopy Net Zero Energy homeowners whose solar panels are performing at their highest potential. As the sunnier months are rolling through, some exciting trends are emerging regarding the energy that our homes consume and produce.

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The energy production of our three homes with solar panels was almost enough to offset the total consumption of all 15 homes combined!

We are currently tracking the energy data from 15 of our homes in Seattle and Portland, thanks to homeowners who have generously opted into sharing this information directly from their Sense home energy monitoring systems with us. Of these homes, 3 of them are currently producing solar power, and in June we found that the energy produced from their solar panels was almost enough to offset the total consumption of all 15 homes combined!

This is the idea of Net Zero Energy; some months will allow solar panels produce more energy than is consumed, like in the spring and summer, and some months energy consumption will surpass production. Over the course of the calendar year, it will balance out to be zero energy since the extra energy produced can be banked with the local utility as credit to offset the winter months when the sun is lower on the horizon and shining less.

The potential for net zero solar energy in the Pacific Northwest may seem far-fetched considering its reputation as a haven for clouds and rain. However, Western Washington and Oregon actually receive more solar energy than Germany – currently one of the leading producers of solar power despite their annual solar resources being comparable to that of Alaska. Our long summer days and mild climate allows solar panels to function at a higher level of efficiency than many regions. Plus, rain and clouds aren’t even all bad – energy is still produced on overcast days, and a regular shower cleans the panels.

As our tracking continues, we anticipate learning more from emerging trends, which will help us refine our processes in building highly energy efficient homes. Even though not all our homes produce solar energy, the tools and systems in place in every Green Canopy home allow them to consume significantly less than the average home, continuing the shift towards a carbon-free lifestyle and energy market. We hope to not only improve our systems, but with Sense, we seek to also empower homeowners with a better understanding of how their day-to-day habits connect to their energy usage, in turn helping them make informed decisions on the ways they live within their home.

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Green Canopy is humbled to be featured in a newly published Partnership Guide developed by Synergos.  Synergos is a global organization helping to solve complex issues around the world by advancing partnerships between government, business, and local communities. The Businesses as Bridging Leaders guide features case studies from companies including Green Canopy, Unilever, Danone USA, Cargill, Kering and JP Morgan Chase, on how to effectively collaborate with cross-sector partners for positive social impact.

We are thankful for our partnership with the Washington State Housing Finance Commission (WSHFC) as it has allowed us to bring 17% of our homes to market at more affordable and accessible prices compared to standard market rate homes.

By working in collaboration with our many stakeholders and partners we can continue to bring sustainable and healthy homes to market, and at the same time work towards greater market transformation. Our success depends on the commitment and mobilization of many, but especially our impact investors, our real estate agents, our building subcontractors, and our home buyers. Thank you!

We hope this guide serves as a tool for corporations to build stronger partnerships in order to meet the UN's Sustainable Development goals and raise the bar for cultivating trusted relationships.

“It’s sometimes easy to forget that all the small and seemingly insignificant tasks that we perform daily adds up to big change. Reading the Impact Report reminds me that we’re doing good work and adhering to our mission.”  - Green Canopy Employee

We know you believe transforming the built environment toward more sustainable and healthy housing can help ensure a better future. Thank you for being our partner!

Contributed by Emily Butterfield

We shape our buildings; thereafter they shape us.
- Winston Churchill

Certified Green homes are synonymous with sustainability, energy efficiency and a positive environmental impact, but did you know that living in a Green home is better for your health, too?   

Adhering to third party green building standards such as those set by Built Green in Seattle and Earth Advantage in Portland, helps ensure Green Canopy Homes are both better for the environment and better for our health.

We reduce common health hazards by paying close attention to how we build our homes and what we put in them.

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Eliminating Moisture

Here in the Pacific Northwest, we are no strangers to moisture and the issues that it can present. Water damage is often a result of inadequate construction, ranging from poor window installation, leaky roofs, and inadequate framing. Mold and mildew are common signs of moisture issues, and can be a significant trigger for allergies and rashes, making the home uncomfortable and sometimes unsafe to live in. To build a home that is well sealed, Green Canopy uses several weatherproofing methods – this allows for both protection from the elements as well as energy efficiency. One of these tools we use is Blueskin, a self-sealing barrier that we wrap around the exterior framing of our homes to keep out air and moisture. In addition to reducing the risk of moisture, it also prevents drafts from entering the home, improving both comfort and reduced energy costs.

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Improving Indoor Air Quality

Weatherproofing our homes creates a seal to keep unwanted elements out, but in turn also traps in the air in the home. Air quality has a huge impact on our health and comfort, whether it be from city pollution, seasonal allergies, or the annual forest fires we are beginning to become familiar with in the PNW. Since our homes are nearly airtight, Green Canopy incorporates energy efficient air systems called ERVs (energy recovery ventilators) in order to introduce fresh air into the home, filtered from outside pollutants and allergens, while also exhausting stale air. A recent study found that “inhabitants of energy-efficient, mechanically ventilated homes rated the quality of indoor air and climate significantly higher” than those living in standard homes.

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Reducing Exposure to Toxins

As homeowners are becoming more aware of the contaminants found in furniture, cleaning supplies, and other everyday objects, the demand for a healthier living space is increasing. By using zero-VOC (Volatile Organic Compounds) paint, adhesives, and finishes we ensure there is minimal off-gassing from the products that are installed within our homes. VOCs, noted by that familiar “new paint smell”, can cause dizziness and headaches. While most VOCs leave the paint as it dries, some paints release VOCs into homes for years. The toxicity of VOCs can cause both short and long term health effects. Green Canopy homes use paint that is VOC-free, and complies with environmental regulations and guidelines. We also make a deliberate decision to install non-gas appliances. Gas appliances like stoves, furnaces, and water heaters release toxic byproducts into a home including nitrogen dioxide, carbon monoxide, and formaldehyde. Our induction stoves eliminate the risk of fumes that gas stoves release while cooking, while additionally providing a quicker cook time and precise temperature control.

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Homes are the nexus of our lives. Green Canopy believes that living in a sustainable and healthy home will inspire our homeowners to embrace a sustainable and healthy lifestyle. To learn more about our theory of change and impact, check out our Impact Report.

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View the NODE Trillium Series in Dwell Magazine

The establishment of Seattle’s first-ever Affordable Middle-Income Housing Advisory Council was announced by Mayor Jenny Durkan in January, as the city seeks to address the growing need to help middle-income families find affordable homes.

Green Canopy CEO Aaron Fairchild serves as a council member, as the group seeks to close market gaps through investment tools and strategies, along with attracting capital investment to create more affordable homes for Seattle’s middle-income earners. 

 “I’m honored to continue advancing Green Canopy’s mission working alongside such an amazing brain trust assembled by our Mayor Jenny Durkan,” says Fairchild.

Market Review & Outlook

As a residential developer hyper-focused on the urban infill markets of Seattle and Portland, Green Canopy continuously evaluates, and buys and sells property. The company also keeps a finger on the pulse of housing research and media reports. Combining boots on the ground with a bird’s eye view, Green Canopy’s team compiled a 2019 Market Review and Outlook in offering a unique perspective on the transitioning regional housing market.  

Following three years of outsized growth, Seattle and Portland single family residential (SFR) home values peaked in May 2018. As home price growth overshot per capita income growth and interest rates ticked slightly higher, more sellers entered the market, but some buyers hit the pause button. Homes sales volume subsequently slowed, listing inventory rose and a sharp but fairly shallow price correction pushed regional home values back toward market equilibrium. Slower sales volumes persisted over the remainder of 2018 and sellers were increasingly forced to reduce prices to complete sales. As the dust settled, Seattle and Portland median home values finished the year a few percentage points higher compared to 2017.

Looking forward, strong local economic and demographic fundamentals support the case for low to moderate home appreciation rates throughout 2019 for the Seattle and Portland housing markets. Key supporting factors include:

• Continued regional net population growth

• Low unemployment, healthy per capita income levels and payroll growth

• Persistent multi-year constrained supply of home listings and new SFR housing starts

• Moderating acquisition and construction costs for homebuilders