NGBS Green: Keys to Success in 2016 and Beyond

2016 was a good year for NGBS Green, marked by steady growth. As we head into the new year on the brink of another major program milestone (100,000 NGBS Green Certified homes), it's a good time to reflect on the keys to the market success of green certification and how they will continue to benefit participants going forward.

100% of Consumers Want Independent Green Certification

Is there a market research result more compelling than 100%? No! In a recent NAHB survey, 100% of homebuyers surveyed said the most important feature of a green home is independent certification. Home Innovation’s NGBS Green certification delivers affordable, credible, and independent proof of your green claims. It is one of the few things your home can offer that every buyer wants.

Break Out Brand Recognition

In seven years, NGBS Green has matured from a start-up rebel to a market leader. The National Green Building Standard is ANSI-approved as an American National Standard. It is also part of the family of ICC International codes (I-Codes) that form a complete set of comprehensive and coordinated building codes. Last, it is approved as an ASHRAE Standard. This triple designation cements the NGBS as the preeminent green standard for residential construction. Twenty-six states recognize the NGBS for federal low-income housing tax credits in their QAPs. Many additional state and local jurisdictions recognize NGBS Green for various incentives, ranging from density bonuses, to permit fee reductions, to tax credits.

NGBS Green is on the precipice of its 100,000th certified home (94,494 as of 12/30/16), including:

• 2,356 Multifamily Buildings (new & remodeled), representing 82,837 apartments
• 11,657 Single-Family Homes (new & remodeled)
• 25 NGBS Land Developments, representing 1,652 buildable lots

High-Performing Real Estate Transactions

Consumer demand for a product is essential, but it isn’t always enough. Sometimes, market barriers need to be overcome or removed as well – that’s the case with green homes. Significant events to this end in 2016 included:

• Open and Transparent Marketplace for Green Properties: It is harder to sell or rent a green home if consumers can’t find what they are seeking. Working with Pivotal Energy Solutions, NGBS Green Certified homes are now aggregated into Pivotal’s Axis energy efficiency data collection and sharing platform where they can be downloaded directly into the national network of multiple listing services. Providing an even more direct link to green homes and apartments, NGBS.com serves as a consumer portal where buyers and renters can search for NGBS Green Certified homes and contact the builder or leasing agent directly.
• Green Appraisals: High-performing buildings might cost more than code-minimum buildings, but green features also bring additional value. Appraisers without experience or guidance are unable to properly value green features, products, and technologies. The Appraisal Institute’s Green and Energy Efficient Addendum and the Appraisal Foundation’s guidance documents now help appraisers understand how to properly value green features. 
• Green Financing: New financing solutions reward builders and developers for investing in smart energy and water efficiency improvements and green building certification. NGBS Green Certified buildings were eligible for preferential financing and additional loan proceeds from Fannie Mae and Freddie Mac. The U.S. Department of Housing and Urban Development (HUD) offered a sizeable mortgage insurance premium reduction for NGBS Green Certified buildings.
• Green Investments: Investors seeking a triple-bottom line (social, environmental, financial) increasingly found new opportunities in Fannie Mae’s Green MBS and increased desirability on behalf of the institutional investors to finance residential buildings seeking green certification.

Certify Once, Benefit Twice

As an above-code program, most builders seek NGBS Green certification to set themselves apart from their competition, deliver a high-performing, superior asset, and appeal to consumer desires. However, several jurisdictions have accepted NGBS Green certification to demonstrate code compliance allowing builders and developers to reap two benefits from the green certification. In a growing list of jurisdictions, including the state of Michigan, Dallas, Baltimore, and the District of Columbia, NGBS Green certification is used to show code compliance. At the same time, the builders can still take advantage of the benefits of green certification for financing, marketing, valuation, and investor purposes. Win. Win.

Find out more about NGBS Green Certified Homes – www.NGBS.com.

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