A Greener Industry

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3 min read

National Housing & Rehabilitation Association members have a reputation as the most innovative minds in affordable housing, historic preservation, and community development finance. I am constantly impressed by the creative strategies and structures that they use to combine and leverage a myriad of federal, state, and local grant, loan, and tax credit programs to finance their projects.

Developers by nature are visionaries and problem solvers. And yet, in my day-to-day conversations with NH&RA members, I continue to be surprised by how few have been able to truly embrace “green” and “sustainable development.”

While our industry may lead the way in creative real estate finance, we are in the rear guard when it comes to energy efficiency. Everyone I speak to about energy efficiency wants to do better but basic structural issues remain major impediments. It seems like I get comments daily from developers along the following lines:

  • “We installed an expensive new green HVAC system but it did not achieve the savings we expected.”
  • “I would build a LEED building but the cost of the certification is prohibitive.”
  • “I would put in more energy-efficient features but my lender doesn’t believe my energy savings projections.”

I can certainly sympathize with these concerns. But there are numerous examples in this month’s issue of Tax Credit Advisor that demonstrate that there are ways, even in the current funding environment, to create cost-effective “green” affordable housing.

Many barriers to sustainable development are the result of outmoded regulations and lack of education. NH&RA, through our Council for Energy Friendly Affordable Housing (CEFAH), remains committed to solving these challenges.

CEFAH has begun rolling out a major educational initiative that will focus on the key tools, resources, and knowledge base needed by developers and owners to successfully evaluate, design, finance, and operate an energy-efficient affordable housing property. We will also continue our outreach to advocate for sensible energy efficiency policies – at HUD, USDA Rural Development, and housing finance agencies – that incentivize owners to tailor solutions for the specific needs of their properties.

I invite you to participate in this conversation, share your experiences, and expand our collective knowledge bank. Even though energy prices are lower now than in recent years, the need for energy efficiency in our properties is not going away. Don’t make green an after-thought in your project, or merely chase after a few points for green features in the next Qualified Allocation Plan. Technology is improving rapidly, so make sure to stay up to date on the latest innovations and hire the right professionals to guide you as you green your properties and portfolios.

Going green is the right thing for the planet, our national security, and the health of the residents in our properties. Oh, and by the way, it might actually save you some of your own green as well.

Thom Amdur is Associate Publisher of the Tax Credit Advisor and Executive Director, National Housing & Rehabilitation Association.