At the Department of Housing and Urban Development, a new generation of energy-efficient mortgages is being rolled out, starting with loans that offer 5 percent larger amounts to people who plan to make energy-efficiency improvements.
For example, if you qualify for a $300,000 FHA mortgage to purchase a standard house, under recent guidance to lenders FHA might now be able offer you $15,000 more upfront if the extra money is used to substantially lower the property's annual energy consumption.
Meanwhile, the House has passed a massive energy-conservation and emissions-control bill. Though the American Clean Energy and Security Act is better known for its more controversial "cap-and-trade" carbon-emissions program, the bill also contains a subsection devoted to creating incentives for consumers and federal agencies to build and finance more energy- efficient dwellings.
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Among the key housing-related provisions in the bill:
β’ The FHA is directed to insure a minimum of 50,000 new energy-efficient mortgages during the coming three years. An energy- efficient house is defined as one in which energy consumption is reduced by 20 percent after renovations.
β’ Fannie Mae and Freddie Mac are directed to develop new mortgage products and more flexible underwriting guidelines to reward energy-conscious borrowers and builders.
The two companies β currently operating under federal conservatorship β also are required to help establish a secondary market for energy-efficient and location-efficient mortgages for moderate- and lower-income home buyers. The new generation of loans would increase the qualifying incomes of applicants by at least one dollar for every dollar of projected energy savings from renovations, green construction or efficient design.
Similar concessions on loan applicants' incomes would be extended for properties in areas close to employment centers or near mass-transit lines.
No concessions would be made on dwellings in far-flung subdivisions that eat into family incomes through long commutes and add to carbon emissions.
β’ Real estate appraisers would be required to take energy improvements and the money they save into account as they value houses. As an example, if you spent $30,000 on a series of major upgrades, an appraiser would need to consider the annual cost savings in energy produced and the impact β if any β on market value. States would require licensed appraisers to undergo additional professional training to equip them for their new energy-efficiency valuation responsibilities.
β’ Federal financial regulators would be directed to support the establishment of privately run "green banking centers" inside banks and credit unions across the country. The centers, which presumably could be anything from unmanned kiosks to staffed offices, would help consumers understand how best to obtain financing for energy-conserving home improvements, second and primary mortgages, and energy audits and ratings. HUD would also be authorized to conduct "renewable energy home product expos" to educate the public about the latest technologies and financing concepts.
β’ State governments would be required to ensure that homeowners whose energy technologies allowed them to get "off the grid" β no longer fully dependent on utility companies to provide power β are not denied property hazard coverage by insurance companies.
So maybe there's going to be some extra green in green with better financing, higher property values and faster selling times β meaning more money in your wallet.