http://www.realestateappraisertips.info/ - Will Cap & Trade 'Green' Turn To RED For Home Appraisers?
Washington Appraiser, Dave Towne, Asks A Good Question Here!
At present, there are very few specifics known about the Waxman ‘Cap and Trade (Tax)' energy bill just passed by the House, that few of our Representatives actually read before voting. After all, it's about 1,500 pages of legalese.
But there is major concern that some provisions in the bill may impact the ability of homeowners to sell their property in the future unless certain ‘mandated' energy improvements are made prior to the sale.
This could directly impact your business, especially if fewer homes are sold due to their age, and the lack of updating by older age owners (that's a whole bunch of ‘us' by the way) who may not have the resources to improve the property....despite the so called ‘credit' in the bill.
Think about it for a moment. To improve the energy efficiency of a dwelling, windows and doors would have to be replaced/retrofitted, and insulation added or supplemented. These are expensive components that cost far more for most homes than the amount of credit granted per this bill.
More info as provided by the Appraisal Institute's Appraiser News Online of July 8, 2009:
Houses Passes Green Bill; Senate to Take Up Late July
In a 219 to 212 vote, the House of Representatives passed the American Clean Energy and Security Act of 2009, which includes green building incentives for both residential and commercial buildings across the country. The landmark energy and climate bill is now in front of the Senate for debate, and a vote is expected in late July. If enacted, the comprehensive bill is expected to create millions of clean energy-related jobs and to help increase the energy efficiency of existing residential and non-residential buildings.
Included in the bill is the Retrofit for Energy and Environmental Performance program, which includes retrofitting incentives for residential and commercial buildings. Under REEP, homeowners could [does not say they ‘will'] qualify for up to $3,000 in financial incentives for achieving a 10 to 20 percent increase in energy efficiency, with another $150 for every additional percentage point of energy savings achieved. Buildings on the National Register of Historic Places would be eligible for an additional 20 percent in financial incentives. [Since very little is yet known, the presumption is increased taxes and more gov't control to pay for this...are you really comfy with that?]
Another feature of the bill would establish national building codes for commercial real estate that would mandate energy improvements for existing structures. It also would provide businesses up to $2.50 per square foot for implementing major energy reduction enhancements.
"This bill recognizes that green building is a major part of the solution to our economic and energy challenges," said U.S. Green Building Council President and Chief Executive Officer Rick Fedrizzi. "With this federal commitment, green building can help propel the new green economy by creating enormous energy and cost savings for millions of Americans while accelerating unprecedented job creation."
In related news, the USGBC recently added a requirement for building owners pursuing Leadership in Energy and Efficient Design (LEED) certification. In a move to eliminate the gap between green-related design features and actual post-development performance and operations, the organization now will require building owners to provide operational performance data on a routine basis to maintain certification.
"We're convinced that ongoing monitoring and reporting of data is the single best way to drive higher building performance, because it will bring to light external issues such as occupant behavior or unanticipated building usage patterns, all key factors that influence performance," said USGBC Senior LEED Vice President Scot Horst.