Considering Green Opportunities Hamer

493 views

Published on

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
493
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
10
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • HistoricalSource basedNeed dataData not readily available
  • Considering Green Opportunities Hamer

    1. 1. Green for Green:<br />financing for green buildings<br />Janet Hamer, Federal Reserve Bank of Atlanta Jacksonville Branch, Community Affairs<br />September 22, 2009<br />The comments in this presentation are those of the presenter alone and do not necessarily reflect the views of the Federal Reserve Bank of Atlanta or the Federal Reserve System.<br />
    2. 2. Why green, according to New Ecology<br />Average construction cost: $181/SF<br />Greening cost: $2-6/SF<br />Percentage increase for greening: 1.1%-3.3%<br />
    3. 3. Green financing, defined<br />A system of public and private sector financing mechanisms that promote sustainable development<br />
    4. 4. Green v. traditional financing<br />Traditional<br />Short to midterm financial outcomes<br />First costs focus<br />Income & expenses<br />NPV, ROI, IRR, NOI<br />Green<br />Socially/environmental expectations<br />Life cycle cost analysis<br />Income & expenses<br />NPV, ROI, IRR, NOI<br />Savings <br />
    5. 5. What are lenders doing?<br /><ul><li>Commercial:
    6. 6. Underwriting that accounts of improved NOI, green-trained staff, encouraging greening
    7. 7. Retail:
    8. 8. Green mortgages, reduced closing costs, climate-themed credit cards, car loans with reduced rates for environmentally friendly cars
    9. 9. Operations:
    10. 10. Paperless checking, headquarters and branch greening, employee education</li></li></ul><li>What are appraisers doing?<br />
    11. 11. The components, benchmarking and ratings<br />Focus on:<br />Energy use<br />Water consumption<br />Waste <br />
    12. 12. Components, benchmarking and rating systems<br />Rating systems:<br />In-house systems<br />Third-party systems<br />LEED<br />NAHB<br />Earthcraft<br />Energy Star (recently expanded to multifamily)<br />Florida Green Building Coalition<br />Many others<br />
    13. 13. Components, underwriting<br />Green cash flows<br />Energy cost savings (operating)<br />Water cost savings (operating)<br />Faster absorption (if you can prove market demand) (income)<br />Rental premiums (more true for commercial than for residential) (income)<br />Enhanced retention (income)<br />
    14. 14. Components, incentives<br />Source: 2007 Green Building Survey, National Real Estate Investor and Retail Traffic<br />
    15. 15. Components, incentives<br />Equity/endowments/mission-based capital<br />Traditional financing<br />Real estate development<br />Federal<br />New Markets Tax Credits<br />Community Development Block Grants<br />State <br />Energy Efficiency (http://www.dsireusa.org/)<br />Federal<br />DOE Weatherization<br />American Recovery Act Program<br />New Markets Tax Credits<br />EE Conservation Block Grants<br />HUD (NSP2 and technical assistance)<br />Tax credits<br />State and local<br />Utility company rebates/incentives<br />Water conservation<br />State and local<br />
    16. 16. Barriers to more green buildings<br />Source: Energy Efficiency in Buildings, World Business Council for Sustainable Development, July 2008<br />
    17. 17. Thank you.<br />Federal Reserve Bank of Atlanta<br />Janet.hamer@atl.frb.org<br />904-632-3588 <br />

    ×