14 May What is Deconstruction? Just Ask The ReUse People

from Kathy Robinson, Austin Area Manager of ReUse People of America

Deconstruction Gives Building Materials a Second Life and a Nice Tax Deduction for the Donor

If you’ve been in Austin for any length of time you’ve probably done at least one double take when driving through neighborhoods in the urban core. Where there was a house yesterday or the day before, now sits an empty lot with a demolition company sign prominently displayed near the street. Unfortunately, there’s not much we can do to save most of these houses other than voice our opposition at Historic Landmark Commission meetings in hopes the house will be deemed historically significant and declared an official City landmark. The reality is most of those demolition permits will be awarded, the houses will be knocked down, and most of the materials will end up in the landfill.  While some demolition contractors claim to salvage up to 50% of the materials from the buildings they smash, there is a new game in town offering a viable green alternative to traditional demolition, diverting up to 85% of materials from the landfills, creating more jobs in the local economy and, in most cases, saving the property owner money over demolition! 

The ReUse People of America is a nonprofit organization whose charter is to keep building materials out of the landfill and make them available for reuse.  We achieve this by facilitating deconstruction of buildings and salvage of the materials, and distributing them for reuse. For those who aren’t familiar with deconstruction, it is essentially the opposite of construction–the systematic and mostly manual process of dismantling a structure to reclaim the maximum amount of materials and components. Although The ReUse People is new to Austin, the organization has been fulfilling its mission in California for over 20 years and is now operating in 12 other states. Since 1993, The ReUse People has diverted over 350,000 tons of reusable materials from landfills. We have also trained over 500 unemployed, underemployed and disadvantaged workers.

My role as Austin Area Manager is to provide consulting and project coordination services for property owners who choose to deconstruct their buildings and donate the materials to us to receive a tax deduction. Yes, a tax deduction! Many people aren’t aware that by donating reclaimed materials to a nonprofit they can potentially gain a sizable tax deduction which typically more than offsets the additional cost of deconstruction. The program applies to major remodeling projects as well as complete tear-downs.

Deconstruction provides many benefits over traditional “smash-and-dash” demolition:

–      The owner saves money on disposal and overall project costs

–      Tons (literally) of debris are kept out of the landfill—we typically divert 75-85% of the materials from the waste stream

–      More small business development and employment opportunities are created

–      Last but not least, someone somewhere will benefit from the reusable materials

We began offering our services here in January and just launched our first deconstruction project at the end of April! To clarify, The ReUse People does not provide the actual deconstruction services (although they do in California); rather, we work in partnership with a deconstruction contractor who is skilled in taking buildings apart so as not to damage the materials. The owners of the property at 4604 Eilers Avenue purchased it with the intention of redeveloping the site but wanted to find a more environmentally responsible way to remove the circa 1960 house. After initially considering demolition, they discovered The Reuse People and wanted to learn more about our unique program. I assisted them in obtaining a cost estimate for the deconstruction from a local contractor and a preliminary range of value for the materials from several IRS-qualified appraisers. According to the IRS, any charitable donation of $5,000 or more requires an appraisal from an independent, third party appraiser. The appraisers will provide a preliminary range of value at no cost to the property owner. They can then use that information along with the cost of the work, to compare the net cost of deconstruction with demolition (consulting with their CPA if necessary) and determine which is more financially feasible. The appraiser’s fee is also tax deductible.

For the owners of the Eilers Avenue house, Luis and Elida Bonet, deconstruction made more economic sense but it was the environmental aspect that drove them to seek an alternative to demolition. Mr. Bonet says, “We felt like there had to be a better alternative to throwing away most, if not all, of these resources, especially since many were in good condition. We compared the cost of demolition with deconstruction and even though deconstruction is more expensive, we will actually save money by deconstructing and donating the materials thanks to the tax deduction. Additionally, our lot has many trees and demolition requires usage of heavy machinery which would affect the critical zones of very valuable and beautiful trees”.

Deconstruction and reuse of building materials fits well with the City’s goal to be a zero waste (90% diversion from landfills) community by 2040 or sooner. The City department, Austin Resource Recovery, is currently working on a Construction and Demolition Waste Diversion ordinance which is expected to go to City Council later this year. The department director, Bob Gedert, is pleased with and supportive of our program.

So, while we may not be able to stop the high volume of building turnover we’ve been seeing in the urban core (Farewell, Omelettry on Burnet Road, we will miss you), we can at least take heart that not all of those disappearing structures are destined for the landfill. But deconstruction is a relatively obscure concept in Austin, and our program is so new here– we can really use help in getting it more prominently on the radar. I’ve been reaching out to realtors, builders, architects, and neighborhood groups and would appreciate the green community’s support in spreading the word. My goal is to make deconstruction (and reuse) as much a household word as demolition—it will take time, but I have no doubt that eventually we will get there!