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bbv10_LBA_1018

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  • His addressing of the need to involve appraisers and lenders in recognizing the value of energy-saving features is on the money. Good presentation. I'm forwarding it to our state home builders association.
    Chris Moline, LEED AP
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Transcript

  • 1. AFFORDABLE + GREEN: THE CRITICAL COMBO BigBuilder Virtual Conference October 2010
  • 2. LBA at a Glance
    • Washington, DC based trade association established in 2009
    • Represents the largest public and private homebuilding companies operating in the United States
    • Members closed more than 100,000 homes in 2009
    • Generate 300,000 jobs annually
    • $425 billion in revenue since 2004
    • www.leadingbuildersofamerica.org
  • 3. Member Companies
    • Ashton Woods Beazer Homes
    • D. R. Horton Drees Companies
    • Hovnanian Companies KB Home
    • PulteGroup Lennar Corporation
    • M/I Homes M.D.C. Holdings
    • Meritage Homes Perry Homes
    • Ryland Group Shea Homes
    • Taylor-Morrison Toll Brothers
    • David Weekley Homes Weyerhaeuser Real Estate Co.
  • 4. Energy Efficiency: A Convergence of Market Forces
    • Consumers want it
    • Technology enables it
    • Regulators demand it
  • 5. Energy Efficiency Consumers Want It and Regulators Demand It
    • Virtually every major piece of energy legislation in Congress include mandates that start at 30% over code
    • The code development process also appears to be headed toward adopting similar mandates
    • Let’s find an affordable way to get there
  • 6. An Opportunity to Make a Big Difference
    • LBA formed energy working group chaired
    • by Meritage CEO Steve Hilton
    • Goal: Identify solutions that will make energy efficient homebuilding affordable for consumers and cost neutral for builders
  • 7. Leading Builders of America Cost-Benefit Analysis Climate Zone 4 (Metro, D.C.) *Added Cost of 30 year fixed Mortgage , Taxes, Insurance assumes 10% down payment, 7.22% rate (20 year average), 45 basis pts for PMI. 2200 Square foot home 2006 Building Code as Baseline (IECC) % Energy Efficient Mandates Annual
  • 8.
    • Consumers resistant to trade-offs
    • Mortgage underwriting guidelines don’t allow energy savings to be leveraged
    • Appraisal process does not consistently or accurately value energy saving features
    Impediments to Progress
  • 9. Energy Policy Strategy
    • Focus on mortgage & appraisal reforms
    • Link reforms to efficiency mandates
    • Educate policymakers & stakeholders
    • Partner with efficiency advocates
    • Alliance to Save Energy ● North American Insulation Manufacturers ● Institute for Market Transformation ●Natural Resources Defense Council
  • 10. Work Product: The SAVE Act Being crafted by Senator Mike Bennet (D-CO)
    • Requires energy to be included in cost of ownership test – PITI+ E
    • Requires present value of energy savings to be factored into appraisals
    • Applies to all federally insured mortgages
    • Implemented three years after date of enactment
  • 11. Anticipated Benefits
    • New homes could be 30% more energy efficient within five years
    • No impact on affordability
    • Accuracy of mortgage underwriting improved
    • Additional incentive to retrofit existing homes
  • 12. Next Steps
    • Legislation to be introduced this session
    • SAVE Act has bi-partisan support
    • Education process already underway
    • Seeking co-sponsors and endorsements
    • Could be included in energy legislation next year
  • 13. Questions, Comments or to Get Involved Clayton Traylor (972) 955-2500 [email_address]