This is the proposed mandate
A second key component of the green building proposal is intended to provide better information to building owners, managers, tenants, and prospective buyers about building performance, improving the information available to the real estate marketplace. A building performance rating would be required for all commercial and residential buildings, either at time of sale or lease, or else by a specific future date. “We are seeing more and more people looking to buy green buildings, not only because they have fewer negative impacts on the environment, but also because they are better spaces for people to live and work in, and provide long-term financial benefits,”
(to see the whole proposal see http://www.portlandonline.com/osd/index.cfm?a=173800&c=44851)
I think the intention of the proposal is wonderful. It is to educate the consumer about the energy consumption of a building.
Here are the issues I see with this:
I have had trouble finding people to do this until very recently. I don't think there are enough auditors to impliment this.
The people that I have spoken with charge around 500 dollars to do the test. Wouldn't that money be better spent by buying an energy star appliance or a tankless hot water heater?
Some senerios:
What if a person is selling the house because they can’t afford the house? They are foreclosing. What if the buyer is a first time home buyer and has stretched to purchase the home? Who is going to pay for this test? The buyer already has to put out money to do an oil tank locate and for an inspection and for a sewer scope. I am sure that the banks aren’t going to want to fund these audits.
What about the senerio where your nest egg is a fourplex that you rent out. Because you are a good citizen, you pay to have the audit done. Finally it is rented out. Six months go by and the renter decides to move. There you are required to get another test before you can rent again…. Hmmm
this is what happened last time we tried mandating audits
see a renet discussion
http://resnet.us/standards/mortgage/amendments/comments.aspx?SeriesID=6
see a study about the previous use of mandated audits
http://www.homeenergy.org/archive/hem.dis.anl.gov/eehem/98/980711.html
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4 comments:
Hi Kria,
Congrats on getting your blog up and running, it looks great! Oh, and I voted! : )
Yet another feel-good bureaucratic "solution" in search of a problem. Just what everyone needs: a bunch of paperwork telling them what everyone with any sense knows: older homes are less energy efficient than newer homes. If someone wants an energy audit, they can get one. Who benefits from this? Auditors. Who loses? Everyone else involved in the paper pushing process and whoever has to pay the money for this worthless endeavor. Oh yes, I thought we were interested in energy conservation, but now we have at least two people, and maybe four, having to drive to a home for this pointless exercise. Why don't the bureaucrats find something that accomplishes something for the many, and makes rational sense, rather than for the very few.
Once again the government has decided that instead of helping us become less dependent on oil, gas, etc, they're going to mandate that WE as citizens do all the work and spend what little money we have on inspections and upgrades. Why don't we all have solar panels on our roofs? It's not because we're against saving money, saving energy or saving the environment, but because we can't afford the panels! I'm one of those lucky folks who could afford dual flush toilets, radiant heat, cork floors and a hi-efficiency furnace. As a Realtor, I can assure you that first-time buyers or those struggling to come up with 20% down to buy a house will consider this $500 mandated energy audit just another road block to homeownership. Between down payments, home inspection fees, closing costs, property taxes and fire insurance, our home buyers are all tapped out.Please give everyone a break and kill this idea. When the Federal Government joins forces with state and city governments to help us save on our energy bills, they will see a commensurate rise in homeownership, cleaner air and more jobs! deborah giles
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