Transcript The RESNET HERS Index - Midwest Residential Energy Conference

RESNET
National Update
Steve Baden, RESNET Executive Director
www.resnet.us
1
RESNET
Key Accomplishment in 2012
Congress extended the energy efficient homes
federal tax credit. Expires 12/31/13 – Need to
extend again
Trend in Housing Market
RESNET
3
RESNET
Trend to HERS Index in Housing
Market
In 2012 128,000 Homes Energy Rated and
Issued HERS Index Score – 35% of all New
Homes Sold in U.S.
To date over 1.3 million homes rated in US.
4
National Builders Committing RESNET
to
Marketing HERS Index of Homes
5
Kentucky
Ashkettle Home Builders
Ayers Custom Homes
Ball Homes
Briggs Homes
Bright Built Homes
Captiva Luxury Homes
Elite Homes
Freedom Homes
Gale Property Management
Hodges, Heathman & Conrad
Holiday Homes
HM Homebuilders
Inverness
Jack Band Builder
Jagoe Homes
James Monroe Homes
Jim Peterson Builder
Jim French Builder
Jimmy Nash Homes
K&B Homes
K&R Builders
Kentucky Capital
MD Custom Homes
Mike Kerwin Homes
Novel Homes
Padgett Construction
Pinnacle Homes
Potterhill Homes
Priority Homes
RTS Builders
RESNET
Sanctuary Homes
Sarasota Properties
Schmidt Builders
Shoulders Construction
Superior Realty
Taylor Homes
Thompson Homes
6
RESNET
Builder Marketing of HERS Index
7
RESNET
Media Coverage of HERS Index
National and Local Media Coverage
8
RESNET
HERS Index Score Included
in
Building Energy Codes
Arkansas
Colorado
Idaho
Kansas
Massachusetts
New Mexico
New York
9
RESNET
HERS Index Score and 2015 IECC
Leading Builders of America Proposal:
• Performance path that exceeds 2012 IECC
by 5%
• Performance path must meet the
prescriptive envelope values of 2009 IECC
10
RESNET
HERS Index Score and 2015 IECC
Advantages
• Code does not pick winners
• Code sets performance target but allows
builder to determine path to meet target
• HERS Index Score logical path to
demonstrate meeting target
– 35% of new homes are already rated
– Independent certified third party conducts testing and
inspection
– Already over 150 code jurisdictions adopt HERS Index11
path in code
RESNET
Home Energy Efficiency and
Mortgage Risks
Conducted by University of North Carolina
on national sample of 75,000 rated homes
Findings:
• Default and prepayment risks are lower in
energy efficient homes by as much as 1/3
• A lower HERS Index Score is associated
with even lower risks
• The HERS Index Scores should be taken
into consideration when underwriting
mortgage risks
12
RESNET
Housing/Energy Policy Proposal
• Residential buildings represents largest
primary energy use in U.S. (20%)
• Common in current market place of having
new homes 30% more efficient than 2004
IECC (HERS Index Score of 70)
• U.S. Department of Energy estimates cost
effective to reduce existing homes energy
consumption by 30%
13
RESNET
Barriers to Meeting This Potential
• Lack of transparency in market place –
virtually impossible for home buyer to
compare energy performance of homes
• Lack of rationality in mortgage process –
highest cost of housing outside of mortgage
not considered in mortgage underwriting
14
RESNET
Transparency in Other Consumer
Decisions
Appliances
Automobiles
15
RESNET
Transparency in Home Buying
16
RESNET
Transparency in Home Buying
From Fayetteville, Arkansas to Boston,
Massachusetts codes require new homes
post HERS Index Score
Transcends current red state/blue state divide
17
Proposed Policy
RESNET
Require HERS Index Score on all homes
financed through federal mortgage programs
(Fannie Mae, Freddie Mac, FHA & VA)
18
Rationality in MortgageRESNET
Underwriting
With findings that default and prepayment
risks are lower in energy efficient homes by
as much as 1/3
Proposed New Formula for Determining
Housing Affordability:
Principal, Interest, Taxes, Insurance Minus
Monthly Energy Savings (PITI-ES)
19
RESNET
Transparency & Rationality
Reflected in SAVE Act
Introduced in 2012 by Senator Bennet (D-CO)
& Isakson (R-GA)
Could be achieved in administrative action
20
RESNET
Benefits of Housing/Energy Policy
Proposal
• Cut U.S. Energy Consumption & Ensuing
Environmental Pollution
• Pump hundreds of millions of dollar into
economy by reduced energy waste
• Create needed jobs in hard hit construction
section
• Reduce dependence on imported energy
• Homeowners having more affordable and
comfortable homes
21
• More secure mortgages
RESNET
Benefits of Housing/Energy Policy
Proposal
All without outlay of federal funds
An economic, national security,
environmental, industry & consumer proposal
that is fiscally conservative and relies on the
market place
22
RESNET
Kentucky Leading Nation
Kentucky setting trend for building industry
support of HERS Index Score and educating
consumers on the value of home energy
performance.
Home Builders AssociationRESNET
of
Lexington HERS Index MOU
Model for Nation
RESNET
RESNET Utility Energy Smart
Programs
First In Nation
RESNET
Midwest Residential Regional
Conference
First Regional RESNET Conference
In Nation
RESNET
Roy Honican Elected to RESNET
Board
RESNET
Make Plans to Attend the 2014 RESNET
Conference – Atlanta, Georgia
28
RESNET
2013 Insulate America/RESNET
Best Idea Award