Green Remodeling II

by Joel Barkman

On the heels of the annual National Green Building Conference that took place earlier this month the National Association of Home Builders (NAHB) is pleased to report that green and energy efficient products are gaining in popularity and use.

One of NAHB's core missions is to educate the public, especially our policy makers and lenders about the benefits of advanced building products and practices. The National Green Building Conference is yet another forum.

My hope is that the message is getting out. I am happy to report that eighteen lenders are participating in a two-year pilot program backed by the Federal Housing Administration (FHA) that offers home owners low-cost loans to make energy-saving improvements to their homes.

The PowerSaver loans program will offer home owners up to $25,000 to make energy-efficient improvements — including insulation, duct sealing, new doors and windows, HVAC systems, water heaters, solar panels and geothermal systems — according to the U.S. Department of Housing and Urban Development and the U.S. Department of Energy.

The pilot program is designed to assist about 30,000 home owners and create more than 3,000 jobs.

Not only that, but the obvious savings on home owner utility bills will eventually trickle back into the local economy. Upgraded homes will boast higher resale values and more comfortable, perhaps safer occupants.

The loans will be available in Charlottesville, Va.; the greater Chicago area; 16 municipalities in Maryland; Cape Cod and Martha's Vineyard, Mass.; Omaha and Lincoln, Neb.; Portland, Ore.; Allegheny County, Pa.; Eagle County, Colo.; Indiana; Minnesota; South Carolina; and Texas.

PowerSaver financing will be similar to a home equity loan that must be paid off at the time of sale, or in some cases, when refinancing occurs. It will use the existing FHA Title 1 home improvement program, with additional incentives and requirements.

Perhaps more lenders can participate in this type of thinking and perhaps without the prodding of the federal government. My challenge to the lending industry is to think outside the box, get involved with the local building industry and your customers, and seize the opportunity improve the community and serve the local economy.

After all, Green Building and energy efficient homes are not new concepts. They have been standards in my homes for years and for years I have been struggling to get the lenders, appraisers, and / or local officials to see the value in these products and techniques.

Meanwhile, home remodeling will become a new stand-alone section of the National Green Building Standard, which is used as a blueprint for constructing "Green" and energy efficient homes.

I am a proud supporter of the program and have built several homes to the program's strict criteria. I am just as proud to welcome this entirely new section devoted solely to green remodeling.

"The purpose of the new section is to clarify and simplify certification of remodeling projects under the National Green Building Standard," explained Paul Sullivan, NAHB's Task Group on Remodeling chair. "The essence of the requirements will be the same, but we want one path for remodelers to follow that is easier to understand."

Originally developed in 2007-2008 by NAHB and the International Code Council, the National Green Building Standard was approved by the American National Standards Institute (ANSI) in January 2009, making it the first ANSI standard for a scoring system for sustainable/green residential construction, remodeling and renovation projects and land development.

While more than 2,200 projects have been certified to the standard since its approval by ANSI, less than 3% have been remodels. Remodelers have expressed the frustration that the remodeling component was too complex to follow and score, especially because it was embedded within requirements for new construction.

This new section of the National Green Building Standard will make it easier for me to explain the benefits of Green Remodeling to my clients. It will also serve many of my past clients. Most of the guidelines that make up the National Green Building Standard are built into each of my remodeling projects. My clients now have a standardized document to refer to when trying to explain the value that is built into their homes.

In addition to creating the separate section in the standard for whole-house remodeling projects, the task group will be drafting guidelines for basic certification of kitchen, bath and basement remodels. The criteria will be in the form of a checklist and will allow home owners to get a taste of certification without scoring to the silver, gold or emerald level.

"A lot of remodels these days are just small projects like kitchens, baths or basements," said Ray Tonjes, vice chair of the task group. "We want to get [home owners] excited by offering a certification for small remodels. Hopefully they will consider the benefits of a whole-house remodel in the future."

The path to certify a project as "Green" does add cost — about $1,100 for an average sized home. My clients who ask for certification, which involves third-party inspections and extensive systems and components testing, feel that a nationally recognized certificate will add real value to their home — especially as lenders and appraisers are educated.

The good thing about having an ANSI approved standard is that anyone can benefit from it. My clients who do not wish to incur the additional costs for certification can look at the program standards and feel confident that they are being adhered to on their project through observation and the documentation that I provide.

Either way, my team and I are not just delivering products, and it's never one size fits all. I believe that service and education make for a complete project and the National Green Building Standard is certainly doing its part.

Remember, when it comes to remodeling your home or educating your lender — or both! — just "Ask a Builder".

As always e-mail your questions or comments to joel@goldenrulebuilders.com or write to "Ask a Builder" at P.O. box 294, Catlett, VA 20119.

Barkman is past president of the Fauquier Chapter of The Northern Virginia Building Industry Association.

Read Joel's column weekly in the