The federal government's push for green, energy efficient homes is a strong indication of better financing, higher real estate value and faster sales, which is all good news for consumers and the housing industry.
To encourage energy conservation in housing, heftier real estate tax credits are being given for solar panels, solar water heaters, geothermal heat pumps, heavy-duty insulation, windows, air-conditioning and the like. However, this is just the beginning of unprecedented efforts by the federal government to increase green building.
At the Department of Housing and Urban Development (HUD), a new generation of energy-efficient mortgages is being introduced, commencing with FHA loans offering five percent larger mortgage amounts to people planning to make energy-efficient improvements on their properties.
Meanwhile, the U.S. House of Representatives has passed a massive energy- conservation and emissions-control bill that contains a whole subsection dedicated to creating incentives for building and financing more energy-efficient homes. Here are some of the key housing-related provisions included in the bill:
- The FHA is directed to insure a minimum of 50,000 new energy-efficient mortgages in the next three years. (An energy-efficient house is defined as one in which energy consumption is reduced by 20 percent after renovations.)
- To reward energy-conscious borrowers and builders, Fannie Mae and Freddie Mac would be directed to develop new mortgage products and more flexible underwriting guidelines.
- Real estate appraisers would be required to consider energy improvements and the money they save in determining the value of homes.
- State governments would ensure that homeowners who are no longer fully dependent on utility companies will not be denied property-hazard coverage by insurance companies.
Real estate investors have the opportunity to own a green home, save money and contribute to our nation's goal of reduced energy usage. Additionally, career-minded individuals can also benefit by obtaining the proper green training and assisting the growing number of green-conscious consumers.
Why not get your real estate license and take a Home Energy Survey Professional (HESP) course that prepares you for RESNET certification? Or, obtain your California contractor's license and complete qualifying education that prepares you for the LEED Green Associate certification exam. Your energy auditing background or knowledge of green building practices will be valuable to home owners seeking your advice – and the chance to benefit from one or more of these exciting, government incentives.
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