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Green Resources > Green Industry Articles > Legislative Update

Legislative Update 1/13/09

With President-elect Obama’s inauguration only days away, his economic stimulus package has been high on the nation’s agenda. A variety of trade and environmental groups are advocating that the green features of the stimulus package include measures for making existing building stock more energy efficient. Such financial backing of green retrofits can make it more feasible for your clients to upgrade their homes and be more competitive on the market. (See “Green Retrofits: Making ‘Cents’ of the Economic Downturn” in this issue of The REsource.)

Here’s a sampling of what the groups are seeking:

• Lower interest rates on residential mortgages if owners retrofit their homes
• Financial incentives to encourage property owners to make energy cuts of at least 20% to their buildings
• $3 billion for building energy efficient incentives in the private sector

While valuing green retrofits, NAR is concerned with green stimulus proposals that could complicate and slow critical investments in green buildings.

It has reviewed several energy retrofit proposals and has found that some require:

• Mandatory retrofits to obtain financing from Fannie Mae, Freddie Mac or the FHA.
• Point-of-sale retrofits that complicate transactions by adding parties at closing and force consumers to rework financing at closing to receive federal assistance.
• Additional inspectors and paperwork resulting from mandatory energy audits.

Among the broad principles NAR adopted at its centennial conference in Orlando – and is recommending to Congress – are those that:

• Oppose mandates triggered by real estate transactions or impose undue economic impact.
• Consider whether a proposal is affordable and not a barrier to owning, using or transferring real estate.

The organization has also examined and addressed the Environmental Protection Agency’s regulation of carbon dioxide under the Clean Air Act. NAR has established a policy to support all commercially reasonable and market-based solutions to reduce carbon dioxide, since its many programs confirm that there is significant market demand for green buildings.

NAR’s Green Resource Council will continue to monitor and report back to you on these issues.

Sources: U.S. Green Building Council and NAR