Casten, Bennet Reintroduce Bill to Encourage Energy Efficiency in Homes
Washington, D.C. — U.S. Congressman Sean Casten (D-IL-06) and Senator Michael Bennet (D-CO) reintroduced the Getting Renewable and Energy Efficient Neighborhoods (GREEN) Appraisals Act, legislation to encourage energy-efficient and clean energy features to be considered as part of the residential home buying and appraisal process.
The GREEN Appraisals Act helps home appraisals accurately reflect the value of renewable and energy-efficient features of a property. In addition, the legislation standardizes the value of energy-efficient features across the housing market, encourages sustainable building practices, and supports green jobs in the housing industry.
“Whether it’s a solar panel on your roof or heat pump in your backyard, energy-efficiency technologies should be considered when assessing your home’s value,” said Rep. Casten. “This legislation incentivizes homeowners to reduce their energy costs and ensures their home is properly valued.”
“By cutting energy costs and reducing emissions, energy-efficient and clean energy home upgrades play an important role in our country’s transition to a clean energy economy,” said Sen. Bennet. “This bill will help ensure property appraisals reflect the complete value of homes in Colorado and across the nation by accounting for energy-efficient and clean energy investments.”
Specifically, the energy appraisals will consider the energy efficiency characteristics of the property, any renewable energy-related features, estimated energy savings, the energy consumption for the property compared to similar properties, and whether such characteristics are relevant to the property’s market value. It also requires additional educational requirements and training for appraisers to qualify to provide accurate green appraisal reports.
The bill also directs the Federal Housing Administration (FHA), Federal Housing Finance Agency (FHFA), and Department of Veteran Affairs (VA) to require lenders, when making the disclosures under the Real Estate Settlement Procedures Act (RESPA), to notify home loan borrowers they have a right to request an energy report, as well as a right to provide an energy report to the lender or a qualified appraiser, which must consider the energy report when developing an opinion of value for a home.
The legislation has been endorsed by the Appraisal Institute, the American Society of Appraisers, NCLC (on behalf of its low-income clients), RESNET, Pearl Certification, and the Building Performance Association.
Text of the legislation can be found HERE.
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