Help with Going Green Tapping Federal and State Incentive Programs

Help with Going Green

 With the green movement in full swing across the country, it is not surprising  that incorporating energy-saving efficient measures has trickled into  condominium development and management. Today, many buildings in New England  pride themselves for having a variety of eco-friendly features ranging from  green roofs and the use of sustainable materials to recycling on-site.  

 Take for example the Macallen building in downtown Boston which boasts the title  of being the first gold-level Leadership in Energy and Environmental Design  (LEED) certified condo development in the city. Gold is the second highest  certification available from the U.S. Green Building Council (USGBC) system  which assigns points in five categories: Sustainable Sites, Water Efficiency,  Energy and Atmosphere, Materials and Resources and Indoor Environmental Quality.  

 The green complex includes an HVAC system that filters air from the outside, so  it is not recirculated; bamboo flooring, which is sustainable wood; insulation  from recycled blue jeans and a massive green roof, says realtor Elizabeth  Guenard from Boston-based Broadway Village Real Estate, which is associated  with the Macallen Building.  

 “The roof helps to insulate the building, produces oxygen, reduces city ambient  heat and provides an ecosystem to local wildlife,” Guenard says. “The building was different, it was a new project that the developer wanted to  explore. It's a choice to go green and what the city certainly needs.”  

 While not all residential condominium buildings are built 'green' from scratch,  there are numerous national and state wide energy efficiency, energy  conservation and sustainability programs available to residents. These programs  offer rebates to help offset the initial costs of implementing the green products and technologies or even a  discount off monthly utility bills, which can lead to big savings for the  association and its residents.  

 Seeking and Implementing Incentives

 With hundreds of incentive programs out there, it may seem like a daunting task  finding one that fits the needs and goals of residents and the community. Seth  Wheeler, communications administrator for New Hampshire Electric Cooperative in  Plymouth, New Hampshire, says that after determining which companies supply  your utilities, checking out the utilities’ websites or calling and speaking with a representative will reveal a host of  programs. Most utility companies have an entire section on their web page  designated to energy efficiency he says.  

 While individual homeowners can take on energy-efficiency projects more freely,  installing an association-wide development such as solar panels will most  likely require the consensus of the majority of the community and the  responsibility of cost of installation and upkeep will differ, depending on how  many residents agree.  

 Stephen Marcus, a partner at the law firm of Marcus, Errico, Emmer & Brooks in Braintree, Massachusetts, says, “In Massachusetts, Massachusetts General Laws Chapter 183A section governs  improvements. It states as follows:  

 Section 18. (a) If fifty per cent or more but less than seventy-five per cent of  the unit owners agree to make an improvement to the common areas and  facilities, the cost of such improvement shall be borne solely by the owners so  agreeing.  

 (b) Seventy-five per cent or more of the unit owners may agree to make an  improvement to the common areas and facilities and assess the cost thereof to  all unit owners as a common expense, but if such improvement shall cost in  excess of ten per cent of the then value of the condominium, any unit owner not  so agreeing may apply to the superior court of the county in which the property  is located, on such notice to the organization of unit owners as the court  shall direct, for an order directing the purchase of his unit by the  organization of unit owners at fair market value thereof as approved by the  court. The cost of any such purchase shall be a common expense.”  

 While conducting association-wide improvements can be a lengthy and more  involved process than a unit owner may undertake, experts agree that it is a  worthwhile project. “An association has the unique opportunity because it's a collective of  individuals who can make decisions for their own fate as that association,” says Jim O'Reilly, director of public policy at the Northeast Energy Efficiency  Partnerships in Lexington, Massachusetts. Updating common exterior or hallway  lighting, pool or spa pumps and heating and cooling equipment can provide great  financial benefits to the association, he says. “If there was an interest amongst the members and officers in an association,  they can also obviously look to how those energy-efficiency measures could be  funded or incentivized through the programs available in each state and those  could end up to be some big saving measures,” he adds.  

 National Programs

 The federal government offers many programs and incentives that encourage energy  efficiency while simultaneously expanding opportunities for home ownership. One  such program is the 203(k) program which is administered through the Federal  Housing Administration (FHA), which is part of the Department of Housing and  Urban Development (HUD). The program is not for existing homes but rather for  individuals who are looking to buy a home. “It's a popular program, a lot of people have been taking advantage of that with  the low interest rates on mortgages, many people find that attractive,” says Rhonda Siciliano, public affairs officer for the New England Region of HUD  in Boston. “The 203(k) program is for someone who is purchasing a home that needs work done  to it. They will buy a home that needs some work and while they are making  improvements to the home, they are also making it more energy efficient in the  process.”  

 Unlike single family homes, however, the program has certain specifications for  condominium units including rehabilitation that is limited to the interior of  the unit only and only the lesser of five units per condominium association, or  25 percent of the total number of units, can be undergoing rehabilitation at  any one time, according to the HUD website. All projects must be approved by  the FHA.  

 Federal tax credits are also available to residents who have qualifying  energy-efficient products. “Consumers can use an Energy Star search engine for special offers or rebates  locally available,”says Dale Kemery, press officer at the U.S. Environmental Protection Agency  (EPA) in Washington D.C. “Not all Energy Star qualified products qualify for a tax credit, but there are  tax credits in effect through 2016 on geothermal heat pumps, solar panels,  solar water heaters, small wind energy systems, and fuel cells.”  

 Energy Star is a joint program of the EPA and the Department of Energy that  labels products that are energy efficient can help reduce greenhouse gas  emissions. “The Energy Star label can be found on products across more than 65 categories,  including appliances, lighting, heating and cooling equipment and consumer  electronics. Products that earn the label deliver all the features and  functionality of standard products, while allowing purchasers to save energy,  save money and help protect the climate,” says Kemery. He adds that a typical household spends more than $2,100 a year on  energy bills but Energy Star products can produce savings of one third or about  $700. More information can be found on www.energystar.gov.  

 Two other databases already exist to help locate funding sources:  

 • The Database of State Incentives for Renewables & Efficiency, www.dsireusa.org, is a project of the N.C. Solar Center and the  Interstate Renewable Energy Council with funding from the U.S. Department of  Energy. It is organized by state, and within each state by program type.  

 • The U.S. Department of Energy’s own website has a section on tax credits, rebates, and savings at  http://energy.gov/savings.  

 Private-Sector Sources

 Many utility companies in New England offer energy-efficiency incentive programs  for their customers. The programs and requirements vary by state. “In each of the New England states, there is some kind of a ratepayer funded,  public program for residents of that state to be able to upgrade the energy  efficiency of their home, whether it's a single family, attached home or a  condo,” explains O'Reilly. “So, I'll take an example of Massachusetts. Electric and gas ratepayers pay a  very small piece of their energy bill, a percentage of that every month into a  central fund, that's mandated under what was known as the Green Communities Act  of 2008. Essentially that act expanded programs that had already been in  existence for over a decade. But it has set up a system of a  centrally-administered, jointly run, and coordinated set of energy efficiency  programs, that the electric and gas utilities administer.”  

 But before replacing all your appliances and equipment, O'Reilly strongly  recommends an energy audit for both individual unit owners as well as the  entire building. A professional consultant will conduct the audit and reveal  any areas that could use an upgrade. “They can come in with individual watt meters and tell you how much your  appliances might be drawing. They can do an assessment of your lighting and  usually say to you with some degree of certainty, almost to the kilowatt hour,  here's what you could save potentially by replacing some of these units and  here's what's available to you to help you in terms of some of these  incentives,” he says.  

 After an audit and some research on what is offered through your utilities,  O'Reilly says,“what we usually advise people to do when they're looking at how to improve the  efficiency of their residence, is focus on three areas: building envelope,  lighting and appliances.”  

 In Connecticut, customers of the Connecticut Light and Power Company (CL&P) are able to obtain and sell renewable energy credits. A generator installed  behind a customer's meter records each kilowatt hour and after 1,000 kWh, one  credit is obtained. A wide range of projects can qualify from solar panels to  fuel cells under a 15 year, long-term contract. CL&P provides detailed instructions and explanations on their website:  http://www.clp.com/Home/SaveEnergy/GoingGreen/Renewable_Energy_Credits/?MenuID= 4294985155.  

 The New Hampshire Electric Co-op offers a variety of rebates and incentive  programs for engaging in energy efficient projects such as air sealing and  adding insulation, installing energy efficient appliances and energy efficient  lighting. “Our most popular amongst residential customers is what's called the Home  Performance with Energy Star Program, which is the program that pays for or  provides a free energy audit,” says Wheeler. “ So, an energy auditor would go into your house, do what's called a blower door  test, see where there's air leaking out of your home. They would check your  insulation, they would check what kind of appliances do you have, what kind of  lighting do you have, and would make recommendations then based on that audit.”  

 He adds that if after, the audit, homeowners choose to pursue the suggestions,  the Electric Co-op offers up to $4,000 in incentives to go along with the  improvements. “It's really quite an easy way to tighten it up and save a lot of energy,” he says.  

 With a variety of green incentive programs at their disposal, residents,  trustees, board members and property managers have the resources and financial  support they need to implement eco-friendly products and policies in their  association, saving money and protecting the environment.   

 Maggie Puniewska is an editorial assistant at New England Condominium and other  publications.

 

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