By Economic Development Council

The Master Builders Association of King and Snohomish Counties (MBA) is the nation's oldest and largest local homebuilders association. The MBA serves every area of the residential homebuilding industry and the EDC was able to get the inside scoop from Shannon Affholter, Executive Director on the organization's services and long-term goals.

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It feels different here. We're at the office, talking shop. Moving past the acoustic guitar and AC/DC record (yes, record), you get a sense that these guys and gals are doing something cool and modern—so modern, in fact, that the industry has yet to catch up. It makes sense that there's a guitar in the office because this team strums to the tune of their own chords, setting new standards in homebuilding and daring anyone to do the same. Welcome to Green Canopy Homes.

BEATRICE (THEY NAME THEIR HOMES)

We're on the roof of "Beatrice" now, overlooking Lake Washington and Bellevue on one side, with a clear shot of the Smith Tower in Seattle on the other. But enough about the view—we're standing on top of building science. The guts of this home will soon be filled with enough gadgetry to wow even the most ardent tech geek, delivering cleaner air, more efficient heating, and an overall sense of innovative superiority.

Driven by the Built Green® checklists, along with meticulous Quality Control Inspection Checklists (QCIC) of their own, every Green Canopy job site is synchronized via iPads that deliver real-time project management tracking and communication. This process ensures that critical updates are made and that any mistakes don't happen twice. It's all about getting better here, from process to parts. Better homes lead to a better brand, which in turn provides validation for that tree logo on the front of each Green Canopy-certified home.

"That tree logo," by the way, is there for much more than feng shui. Turning residential homebuilding innovation into an industry strength is made possible by Value, Innovation, Beauty, and Efficiency, or VIBE, the way Green Canopy sees it. Their brand is secured—not grounded—by these four "roots," seen literally on the face of each home, welcoming owners and guests into the future of home living. And if a home doesn't meet the rigorous checklists, then it doesn't receive the logo. In other words, this brand delivers.

THE GENESIS OF BETTER BUILDING

Let's take a step back to a sleep-deprived evening in 2008. Owners Aaron Fairchild and Sam Lai had both recently welcomed their newborns, and through their giddiness came the idea for Green Canopy Homes. After trademarking their moniker, they went to work on answering a simple question: Are we making a difference? Heady question, but these guys wouldn't have it any other way. They're looking to create history.

Of course, history is defined by change and nobody knows that better than this crew. They don't throw history out, however; in fact, they embrace it in all its past beauty. Case in point; each project they take on comes with the name of an iconic and typically historical female figure. "Beatrice" is named after Beatrice Simms, founder of Seattle's chapter of Colored Women's Clubs. Each project's story continues long after the team leaves, too, as Lai envisions his future homeowners living, laughing, and growing up healthier and happier inside their Green Canopy home.

After a familial chat with the project managers, in conversation outside of Beatrice, Lai finishes his point on home efficiency by comparing vehicle MPGs to home efficiency ratings. "Hopefully my kids will think about their home MPGs in the same way (as their vehicles')," he says, almost as an afterthought. "I guarantee you they will," quips Fairchild, never one to miss a beat. The attention to detail is strong.

Those who know Aaron Fairchild may know his father, who knew everyone. Aaron worked at his father's bank from 1995 to 2008, refining his financing skills and using his area residential homebuilding experience to put investors in a place where they could succeed and do so without sacrificing values. One day, at the height of the financial crisis, Fairchild decided it was time to enter the real estate industry. Why? Human reasoning can be a tricky thing to grasp, but a simple analogy sums up his thought process: this was his chance to build something beautiful from the crash.

CHANGE WAS COMING

Of course, cultivating said change means planting the right seeds in the right place. In this case, it means building sustainability in the cultural center of the Northwest, the greater Seattle and Portland areas. Green Canopy has sprouted roots in some of the most visible and dense areas of the Puget Sound region, spanning a diverse price range. Built Green-certified homes, like the ones Green Canopy specializes in, now make up 57 percent of all residential homes built in the soil-rich Seattle area. The roots of change are spreading—must be all the rain.

BACK TO THE FUTURE

At the Earth 6 property in Delridge, consisting of six detached single-family units, Fairchild fervently points out features, describing the living area as "Volkswagen luxury," inside the well-sealed envelope construction of the home. Green Canopy projects that go on the market in the low $400,000 range, such as the Earth 6 units, contain features not typically found at that price, and both Fairchild and Lai are quick to point out that they have had help in being able to spread the technology around. In steps the Washington State Housing Finance Commission (WSHFC), without whom, Green Canopy would not have been able to build the Earth 6 homes the way they wanted to. The WSHFC has helped builders like Green Canopy deliver deep energy efficiency to homes of all shapes and sizes, allowing lower-end residences to experience the joy of high efficiency ERVs, eco panels, and 230 percent more efficient heat pumps creating compressed energy with the intensity of "high schoolers on the dance floor" (another Fairchild classic), just like they do inside million-dollar homes. In WSHFC, Green Canopy sees a like-minded ally, not afraid to think outside the box and take measurable risks to achieve their mission. In their own words, green innovation within the building industry typically "hasn't been a strength," though Fairchild and friends are working on that.

It helps, too, that everyone on the team actually talks the talk when it comes to living green. Lai literally lives and breathes his product, living in a home he collaboratively designed and built himself. Hanging around the crew, especially Lai and Fairchild, it becomes immediately apparent that they really do mean it when they say they want to change the residential homebuilding industry—whether everyone likes it or not.

Cue the chatter of neighbors opposed to modern "monstrosities" being erected in their neck of the woods. Fairchild combats allied neighborhood fronts by simply sitting residents down and talking to them like the people they are, and giving them some say in what they have to look at every day. The loudest typically direct the majority at these gatherings, Fairchild points out, so Green Canopy gives individuals the option to go online and fill out a survey on features like exterior color and roofline shape, which will then influence the design direction Green Canopy takes. The home is then built according to plan—with slight alternations to paint and slope.

When asked whether or not this is enough to satisfy opposed residents, Fairchild counters the clash with reason: "We hold meetings for existing residents even before buying the property, to talk with them and see if building there (in a particular neighborhood) would be a good fit in the first place. If we think it is not right for us, we explain that another builder will eventually buy this land, and they probably won't engage the community at all."

Fairchild also discusses obstacles within the rebuilding process, explaining why he and Green Canopy have moved away from full-gut remodel projects: Persistent frustrations with an elongated plans review process of remodel permits have in the past delayed projects to the point where they "just aren't worth the trouble," he says. Ever the mender, however, he has recently taken a seat on the MBA board, where he hopes to further influence political decision-makers in our region. By engaging the public and manning the front lines of influential industry committees to squash issues before they become problematic, Green Canopy is winning before nail one is hammered.

Inevitably, when one tours a Green Canopy home, the question arises: "Can you do this for us?" With a few more of those questions answered, things won't feel so different anymore.

Cue the guitar.

By MBAKS Content Strategist James Slone

The Black Homeownership Initiative is working to close the homeownership gap.

In 2021, the Coalition for More Housing Choices joined a network of associations and organizations to launch the Black Homeownership Initiative with the goal of closing the gap between Black and white homeownership rates in Washington state.

The Coalition—representing a spectrum of nonprofit, business, civic, and labor organizations, including MBAKS— came together to develop a plan to build enough homes to accommodate regional growth in a way that “benefits current residents” and offers affordable housing choices.

The Black Homeownership Initiative was a natural outgrowth of the Coalition’s approach to housing with its strong focus on equity, seeking to align “infrastructure development, housing production and preservation, and underwriting and lending” to double the Black homeownership rate in the state.

They have their work cut out for them.

Mind the Gap

A history of exclusionary housing policies has meant that people of color and other minorities have been denied the financial equity, stability, and peace of mind that comes with homeownership—the basic building block of the American dream. The Black community has been especially impacted.

According to the Urban Institute, Black homeownership in the U.S. has not increased since the 1960s. Indeed, it’s actually declined 5% since 2011 versus just 1% of white households. These days, affordable housing is scarce for everyone, but for Black households, it’s even more elusive.

The situation is especially dire here in our own backyard. The Seattle Times recently reported that just 34% of Black people statewide own homes (compared to 68% of whites). In Seattle, it’s an abysmal 26%.

It is hardly surprising to learn that the median net worth of Black households in Seattle is just $23,000, compared to $456,000 for white households. Economic inequality means Black households are likelier than whites to spend more than half their income on rent and debt (e.g., student loans).

And even when they can save, their chances of being denied a home loan are much greater. An analysis by Zillow found that Black applicants were denied mortgages at a rate 84% higher than white applicants in 2020.

How did it come to this?

Racism’s Self-Fulfilling Prophecy

Black and other non-white people were kept out of most Seattle neighborhoods in the early twentieth century through zoning and racially restrictive housing covenants. While the U.S. Supreme Court struck down the covenants in 1948, lenders and real estate companies continued to discriminate through “redlining,” a practice of designating communities of color “high risk of default.”

Redlined maps determined which neighborhoods received favorable mortgages, interest rates, and refinancing. The result? Homes in Black communities hemorrhaged value, decent loans became hard to come by, and predatory loans led to defaults. The stigma of redlining also led to a loss of jobs, resources, and investment in these communities as capital—and white residents—fled to the suburbs.

The 1968 Fair Housing Act made racial discrimination illegal, but the resulting gap persists—Black households have less intergenerational wealth to pass on or equity to invest in new housing. While gentrification displaces Black residents, single-family zoning means that more affordable types of housing cannot be built in threequarters of Seattle neighborhoods.

(See “Codifying Prejudice” in the fall 2020 issue of Master Builder.)

Mending the Gap

There are signs that things are changing. Perhaps the most prominent recent example is the Africatown Community Land Trust, which has created affordable housing and cultural spaces in the Central District to mitigate the effects of gentrification and underinvestment in the historic Black community. Another recent initiative spearheaded by the Seattle Foundation’s Civic Commons seeks to help 1,500 Black households become homeowners across the Puget Sound over the next five years.

MBAKS supports the Black Homeownership Initiative because closing the gap is a crucial part of solving the housing crisis in the Puget Sound region—which will need to accommodate 60,000 new residents a year—and because it’s the right thing to do.

The Housing Development Consortium (HDC), which encompasses all major nonprofit housing developers in King County, is a leading partner of the Initiative as part of its mission to “ensure that all people live with dignity in safe, healthy, and affordable homes within communities of opportunity.”

Patience Malaba, executive director of HDC, laid out the stakes last June. “We have decades of racial injustice and economic inequality that has consistently, persistently led to disparities in wealth, specifically for BIPOC [Black, Indigenous, and People of Color] communities and disproportionately for Black households. One of the foundational steps in America to build wealth is homeownership.”

MBAKS’ Senior Policy Analyst, Allison Butcher, agrees. “The association recognizes the need to address race-based housing policies of the past to create a more inclusive future for our region. Part of the solution is creating more attainable housing choices for more people close to jobs, transit, schools, healthcare, and other amenities.”

The Initiative’s plan includes seven interrelated strategies to bolster Black ownership. These include marketing and outreach, pre- and post-purchase counseling, purchase supports and tools, changes in policies and practices, support for existing Black homeowners, and housing production to increase affordable homes.

MBAKS’ role, says Butcher, is “advocacy to enable more infill and more affordable ‘missing middle’ housing.” MBAKS sees increasing housing supply of all types as a key strategy to lowering home prices and barrier of entry for Black households.

Only the Beginning

The Initiative is off to a great start, but there’s still much to be done.

Currently most of the focus is on increasing the supply of and access to affordable homeownership. Looking toward the future, Initiative partners and the HDC hope to develop a policy framework that can be used to monitor and evaluate their collective efforts to increase homeownership opportunities.

Meanwhile, a Washington State Department of Commerceled Homeownership Disparities Work Group has developed recommendations for reducing the gap for BIPOC communities that intersects with the Initiative’s work. The report includes specific statewide recommendations that could be actionable in late 2022 or during the 2023 legislative session, creating additional momentum.

These are heartening developments. Solving the ownership gap means ensuring that everyone can find a home of their own. But to be lasting, it must go beyond up-zoning and legalizing more housing types.

It requires acknowledging the long history of racial discrimination that has narrowed homeownership options for Black people and actively working to overcome its grim legacies. Acknowledging that the gap exists—and why it exists—is an important step.