Supporting the creation of Green Homes through a credible, cost-effective certification program represents an opportunity for residential investors & developers to differentiate the quality and environmental performance of their construction projects while educating consumers about the financial and other benefits. Financial institutions – through the issuance of Green Mortgages tied to certified Green Homes – can significantly reduce their mortgage default risk and raise the asset valuation of homes they finance and can, therefore, offer a lower cost of financing. Lower financing costs provides the homebuyer with greater purchasing power to invest in improved construction quality as the Green Mortgage accurately values the significant reduction in energy, repair and health costs of those who purchase Green Homes. Green Mortgages will also help the Romanian marketplace better appreciate the positive value of sensible borrowing to invest properly at the beginning of the building process.
This initiative creates a consortium between a bank, the investor/developer, the home buyer and the Romania Green Building Council to certify green residential projects that are environmentally-responsible and energy efficient relative to the standard offer in Romania generating financial, social and environmental benefits. Increased energy savings and other financial benefits (such as improved occupant health and less frequent/ lower home repair costs) substantially reduce the mortgage default risk allowing the lender to lower the monthly interest rate while maintaining profit margins. This enables the home buyer to invest into a more energy efficient and greener home while lowering their total monthly cost of ownership relative to a standard home. The introduction of such a financial product is very timely in the context of the current and impending European Directives that require progress toward Net Zero Energy Buildings, significantly reduced construction waste, and reduced toxicity of building materials compulsory for all new and existing residential buildings. Growing energy security concerns and rising energy costs reward residential projects that require less costly and natural scarce resources to build and operate. By contributing to the creation of certified Green Homes, residential investors and developers can greatly facilitate a rapid and profitable transformation of the construction and real estate industry toward a low carbon/green economy.
The latest version of the program launched on 17 March 2017 adds requirements for indoor air quality texting prior to occupancy as well as greater energy performance and construction waste management criteria to recognize early leadership and help prepare the building industry for European Directives taking effect in 2020. The new version also clarifies the required information sharing of energy and water usage date to maintain the discounted green mortgage terms.
To read the full toolkit publication, please go to the Romanian Green Building Council (RoGBC): http://rogbc.org/en/projects/green-homes