Friday, June 5, 2009

Down-payment help for energy-efficient homes

The New Jersey Senate budget and Appropriations Committee on Monday
will consider legislation which would tighten the state's building code to encourage the construction of more
energy-efficient homes.

Uh oh, you say. Another case of government driving up an industry's costs in order to effect some desirable social goal.

Well, yes, but the bill doesn't end there. It also seeks to offset the increased costs of such homes by offering assistance with down payments to new buyers.

The bill, S-702, sponsored by Senator Bob Smith (D-Middlesex), authorizes the State Commissioner of Community Affairs to amend the Uniform Construction Code's energy subcode to establish enhanced energy-saving construction requirements. The costs of those added requirements would have to be recoverable, through energy conservation savings, over a period of not more than seven years.

In addition, it directs the state Board of Public Utilities to assist certain homebuyers by providing down payment funding assistance for the purchase of new homes which have increased costs due to the enhanced energy conservation building requirements.

An interesting approach, don't you think?

Share your thoughts in the response block below or by clicking on the tiny 'comments' line.

4 comments:

  1. Its about time! All we ever hear in the building industry is why do I need to do that? Its too expensive. Homeowners do not realize life cycle costs, because if they did they would opt to spend the extra $2K on a better heating system and most likely save more than triple that over their time in that home.

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  2. better late than never-how about requiring correct orientation on new construction...

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  3. Sounds like another back door method of taxing someone. Why not achieve the same goal with positive incentives, such as awarding a builder an additional lot in a subdivision IF he complys with an energy standard. The cost of a density bonus is spread out over a large population and is not as severe.

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  4. The bill may force builders to educate themselves in regard to best practices to seal the building envelope, etc, beyond code and actualize real lifecycle cost containment for energy in homes. As a buyer seeking conventional construction expertise on sealing a new building envelope, I have found little if any fluency in basic techniques from potential vendors. I'll be dead before the market is equivalent to demand and has the intellectual capial to deliver. Nor is it necessary for me to pay an engineer to teach/force builders to do what they don't know, which most would happily have me do.

    These tight building envelope construction practices are not just common, but Code in Europe- no learning curve needed, no need for the USA to reinvent the wheel.

    The greatest resistance to change is complacency, fear of "new" and the desire to do what the Jones do and pay what the Jones pay. And home buyers don't help the trend, as they seek granite counter tops, big windows, multi-story spaces.

    This libertarian leaning citizen would love to see the public drive builders to be fluid in skills and techniques to optimize live cycle costs. After 3 yrs of interviewing builders to bring to the table theses skills, they are still few and far between.. Sadly. only legislation will make this happpen in my lifetime.

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