12 Aug New Bill Encourages Energy-Efficiency Among Homeowners
Installing energy-efficient home improvements has become a popular way for homeowners to reduce their monthly bills while also befriending Mother Nature. Most MLS services offer “green fields” where real estate agents can tout a home’s “green” features, which demonstrates just how important eco-friendly amenities are to buyers.
Soon, a new bill could encourage energy-efficiency among homeowners by establishing mortgage underwriting guidelines that factor in cost savings when homeowners install energy-efficient appliances, building materials, and so forth. At present, homeowners who invest in these kind of energy-saving upgrades have trouble getting fair market value for their homes because appraisers, lenders, and buyers don’t factor these eco-friendly improvements into the home’s value.
If this seems like old news, you’re likely to remember an old bill that died back in the Senate in 2011. The new bill, called S. 1106, is sponsored by Senators Michael Bennet (D-Colorado) and Johnny Isakson (R-Georgia), and has been referred to the Senate Banking Committee, who will decide if it should be passed into law.
The Appraisal Institute says that S. 1106, “Would instruct federal loan agencies to assess a borrower’s expected energy costs when financing a house. The U.S. Department of Housing and Urban Development would issue updated underwriting and appraisal guidelines for any loan issued, insured, purchased or securitized by the Federal Housing Administration or any other federal mortgage loan insurance agency.”