Green Home Certification Programs

Green Home Certification Programs

Posted on 13. Apr, 2010 by Kimberly Madrigal in Real-World Ideas

In most markets it may be difficult to justify the return on investment for green home certification for existing houses, but that doesn’t mean there isn’t something to be learned from these programs.  If it turns out the property owners are not interested in, here we will outline the big three national green certification standards.

National Green Building Standard provides certification through the National Association of Home Builders or NAHB.  With some restrictions, The Standard can be sought for additions and/or renovations to single family homes or conversions of non-residential structures to residential uses.  It requires accredited verification, offers four levels of green building and covers the following areas:

  • Lot Design, Preparation, and Development
  • Resource Efficiency
  • Energy Efficiency
  • Water Efficiency
  • Indoor Environmental Quality
  • Operation, Maintenance, and Building Owner Education

LEED for HOMES, offered through the US Green Building Council or USGBC, is another popular rating system; however, it requires, at minimum, a “gut rehab” in order to qualify for certification at one of four levels.

  • Innovation & Design Process
  • Location & Linkages
  • Sustainable Sites
  • Water Efficiency
  • Energy & Atmosphere
  • Materials & Resources
  • Indoor Environmental Quality
  • Awareness & Education

Home Performance with ENERGY STAR – while not currently a certification system – has become more robust in recent years and may provide a glimpse into the future of a national home rating system.  Using approved contractors, the program focuses on lowering utility bills, increasing comfort and reducing global warming through an emphasis on:

  • Whole-house Integrated Design
  • Air Sealing
  • Insulating
  • Heating and Cooling Effectively
  • Upgrading Lighting and Appliances

Each of these programs emphasizes an integrated design approach, energy efficiency and properly sized HVAC systems.  Although the government’s Energy Star program seems to omit water conservation, the Department of Energy is working through its many WaterSense ‘partners’ to standardize and increase the availability of water saving fixtures.

In the end, there is no one-size-fits-all answer as to whether or not property management professionals should recommend green home certification.  If the property owner is considering resale value in their calculations, of course, this would be a plus. If the property owners isn’t ready to make big improvements there are also some cheaper and easier ways to get started. It may still be worthwhile to consider following certification guidelines as part of an asset improvement effort, however, as they do improve quality of life for renters and reduce utility bills.

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2 Responses to “Green Home Certification Programs”

  1. Allison Ables

    21. Apr, 2010

    Hopefully the ROI on green buildings will increase at an exponential rate the next few years as the building materials become cheaper. With the high vacancy rates, I think it’s tough for any landlord to commit new capital for renovations. It makes a lot more sense to buy more real estate right now.

    Reply to this comment
  2. Kimberly Madrigal

    22. Apr, 2010

    Allison, thank you for taking the time out of your busy day to comment. As always with real estate, location and timing are everything. Property management and real estate professionals should be taking a good, hard look at sustainability when making purchases or considering capital improvements.

    Personally, I have no confidence that building materials will become less expensive, but I am certain that the cost of oil, gas and water will rise. In order for properties to stay competitive in the future rental or sales market, they will need to be located within a reasonable distance of public transportation and have been upgraded for maximum water and energy efficiency.

    If power is supplied by renewable energy sources like wind or solar, then efficiency will matter less. On the other hand, fresh, clean, drinking water will always be a precious resource upon which our lives depend, literally.

    Reply to this comment

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