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July 27, 2010
It is anticipated that legislation will be introduced in the next few days that would allow energy efficiency to be incorporated into the mortgage qualification process. The American Clean Energy Leadership Act (S.1462), reported out by the Senate Energy and Natural Resources Committee last summer, would spur major building efficiency improvements by setting national performance targets of 30 and 50 percent for building energy codes as well as targets to improve code compliance. Senator Richard Lugar’s “Practical Energy & Climate Plan” (S. 3464) includes a similar provision. Section 201 of the House-passed American Clean Energy and Security Act (H.R. 2454) also provides for stronger building codes.
On July 27, 2010, the Environmental and Energy Study Institute (EESI) held a briefing on how energy efficiency legislation can make new homes more affordable. Building energy codes can ensure all new homes save money on utility bills. These savings can be valued as part of the mortgage qualification process and make housing more affordable for Americans of all income levels. Utility bills are the second highest cost of home ownership, after the mortgage, and have a huge impact on the ability of families to afford their homes after purchase, but they are not considered in mortgage underwriting. This briefing addressed the financial value of energy efficient homes, the importance of strong building energy codes in improving efficiency across the country, and the effect on homebuilders’ and homeowners’ bottom lines.
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