“While the subject is indeed complex, the central facts are simple.  High performance green building is just a fancy description for good building.  It is good for your wallet. 
It is good for the environment.  And it is good for people.”
* Thomas Menino, Mayor of Boston

*Everyone Benefits from Green Building…Everyone. http://www.cityofboston.gov/bra/gbtf/GBTFhome.asp

The federal government and the State of California have created funding mechanisms to advance green building.  Utilities offer rebates and incentives.  Increasingly, investors and venture capitalists are recognizing sustainability and green design as the new frontier in technological innovation, job creation, and economic and affordable housing development. 

The following are a representation of the sources available:

Enterprise Brings Recovery Act Financing to Poor Neighborhoods
The American Recovery and Reinvestment Act of 2009 has awarded $95 million of its $1.5 billion in New Markets Tax Credit (NMTC) awards to Enterprise Community Investment to facilitate community development projects in low-income areas.  Enterprise will offer a 39 percent tax credit to attract investment in commercial and mixed-use developments, provided the projects are at least 20 percent commercial, are located in economically distressed communities, and incorporate energy efficiency, transit-oriented locations, renewable energy, green building techniques and brownfield reclamation. You can find more information at Green Communities Online.

California Economic Recovery California Energy Commission Programs http://www.energy.ca.gov/recovery/index.html

CDFA Spotlight: Green Building Finance http://www.cdfa.net/cdfa/cdfaweb.nsf/pages/greenbuildingfactsheet.html

Enterprise's Green Communities Initiative
Enterprise offers a comprehensive array of funding options for interested developers.

ENTERPRISE California Green Communities Fund
The $40 million Enterprise California Green Communities Fund will help finance the creation of 500 energy efficient, affordable homes in Los Angeles, Oakland, and metropolitan San Francisco through the syndication of federal low-income housing tax credit (LIHTC) equity. http://www.greencommunitiesonline.org/ and http://www.enterprisecommunity.org/local_work/

Planning and Construction and Charrette Grants (http://www.greencommunitiesonline.org/tools/funding/grants) grants to help cover the costs of planning and implementing green components of affordable-housing developments, as well as tracking their costs and benefits.

Early Predevelopment, Predevelopment, and Acquisition Loans (http://www.greencommunitiesonline.org/tools/funding/loans) to support the development of affordable rental and homeownership housing that adheres to Green Communities Criteria.

Coordinating Resources
Jurisdictions and RDAs may consider partnering with affordable housing non-profit developers to use NSP funds at federal and/or state level for purchase of foreclosed units and roll in energy efficiency improvements with HUD/DOE funds before returning acquired housing stock to the affordable housing market.

American Recovery and Reinvestment Act of 2009 (Recovery Act) Assisted Housing Stability and Energy and Green Retrofit Investments Stimulus Program http://www.hud.gov/recovery/aheretrofith.cfm

Federal Neighborhood Stabilization Program Allocation http://www.hud.gov/offices/cpd/communitydevelopment/programs/neighborhoodspg/

California Neighborhood Stabilization Program Allocation http://www.hcd.ca.gov/fa/nsp/

HUD Economic Recovery Act Press Release and Department of Energy Press Release http://www.hud.gov/recovery/2009/02/27/comms/pr09-016.cfm?CFID=15758401&CFTOKEN=77259353
http://www.energy.gov/news2009/print2009/6956.htm

Incentives
California Solar Initiative Single Family Affordable Homes (SASH) Program. CPUC allocated $108 million to Grid Alternatives to administer the SASH program - new program to provide substantially higher incentives to help qualifying low-income owners install solar electric systems. In partnership with Grid Alternatives http://www.gridalternatives.org/, the California Housing Partnership Corporation (CHCP) http://www.chpc.net/seeks to identify qualified lower income owner occupants receiving service from PG&E, SCE or SDG&E. Local jurisdictions should provide CHPC any available lists of eligible homes. Randy Quesada  at 415-433-6804 ex 310 or rquezada@chpc.net.

Energy Star Program http://www.energystar.gov/index.cfm?c=new_homes.nh_greenbuilding
Energy Star was introduced by EPA in 1992 as a voluntary, market-based partnership to reduce greenhouse-gas emissions through energy efficiency.  Today, the Energy Star label can be found on more than 50 different kinds of products as well as new homes and buildings.  Products that have earned the Energy Star designation prevent greenhouse-gas emissions by meeting strict energy-efficiency specifications set by the government.  In 2007 alone, Americans, with the help of Energy Star, saved $16 billion on their energy bills while reducing greenhouse-gas emissions equivalent to those of 27 million vehicles.  (2008 EPA News Release)

Flex Your Power http://www.fypower.org/res/upgrade/
The Flex Your Power website is a comprehensive statewide resource for energy efficiency, providing information and tools for California consumers and communities.  For example, SMUD has a new rebate and financing program to help multi-family property owners and managers install energy-efficient technologies in existing residential multi-family buildings with three or more units.  These improvements include installation of energy-efficient lighting, ceiling fans, cool roofs, central air conditioning and heat pumps, room AC units, solar-water heating, pool pumps and motors, attic and wall insulation, and high-efficiency windows.

Sacramento Municipal Utility District Multifamily Energy Efficiency & Rebate Program http://www.fypower.org/pdf/SMUD_Multi-family_Rebates.pdf

South County Energy Efficiency Partnership http://www.southcoastenergywise.org/site/
PG&E Multifamily Energy Efficiency Rebate Programhttp://www.pge.com/myhome/saveenergymoney/eebuyersguides/appliances/

Southern California Edison Residential and Multifamily Rebate Programs http://www.sce.com/RebatesandSavings

Southern California Gas Residential and Multifamily Rebate Programs http://www.socalgas.com/residential/savemoney

San Francisco PUC Solar Energy Incentive Program

• renewable-energy and energy-efficiency incentive payments of $3,000-6,000 for residential installations and up to $10,000 for commercial installations
  
  
• $4,000 incentive level for solar installations completed by installers with local offices to create local jobs
  
  
• $5,000 incentive level for installations located in Environmental Justice Districts experiencing the
  greatest burden of environmental and social costs of the City's historical power generation

California Energy Commission's Energy Efficiency Programs
The California Solar Initiative http://www.cpuc.ca.gov/PUC/energy/Solar/
The California Solar Initiative is part of the statewide effort to install 3,000 megawatts of new, grid-connected solar systems by 2016.  The Initiative offers cash incentives on solar systems of up to $3.50 a watt.  These incentives, combined with federal tax incentives, can cover up to 50 percent of the total cost of a solar system.

Go Solar California http://www.gosolarcalifornia.ca.gov/
Go Solar California is the web portal for New Solar Homes Partnership, and the Single-Family Low-Income Incentive Program which provides low-income homeowners access to solar photovoltaic systems, to decrease electricity usage and reduce bills without increasing monthly expenses.  The incentives range from $4.75 to $7.00 per watt

California's Rebate Program for Wind & Fuel Cell Renewable Energy Electric-Generating Systems http://www.consumerenergycenter.org/erprebate/index.html
Emerging Renewables Program provides cash rebates on eligible grid-connected small wind and fuel cell renewable energy electric-generating systems

Public Funding
Weatherization Assistance Program
The American Recovery and Reinvestment Act of 2009 (Recovery Act) has significantly increased funding to the Weatherization Assistance Program to help low-income families reduce heating and cooling costs and improve indoor air quality by improving the energy efficiency of their homes. Funding primarily assists households with
elderly residents, individuals with disabilities, and families with children. http://www.csd.ca.gov/Programs/Weatherization%20Assistance%20Program.aspx

California Economic Recovery California Energy Commission Programs http://www.energy.ca.gov/recovery/

Low Income Home Energy Assistance Program  http://www.acf.hhs.gov/programs/ocs/liheap/
Department of Health and Human Services LIHEAP assists low-income households paying a high proportion of household income for home energy with meeting their immediate home-energy needs.

Energy Efficient Mortgages Program (EEM) http://www.hud.gov/offices/hsg/sfh/eem/energy-r.cfm
The EEM program helps homebuyers or homeowners save money on utility bills by enabling them to finance the cost of adding energy-efficiency features to new or existing housing as part of their FHA-insured home purchase or refinancing mortgage.  Information is also available through the California Housing Finance Agency.

Department of Housing and Community Development (HCD) http://www.hcd.ca.gov/fa/
HCD has several competitive funding programs that award some points for proposals that encourage sustainable design, in particular, high-density development near public transit: Building Equity and Growth in Neighborhoods Program (BEGIN), Infill Infrastructure Grant Program, and Transit Oriented Development Implementation Program(TOD).

State Low Income Housing Tax Creditshttp://www.treasurer.ca.gov/ctcac/
California is one of 12 states with membership of the Clean Energy States Alliance (http://www.cleanenergystates.org).

State housing-finance agencies facilitate the award of tax credits for green affordable housing projects by adopting policies to encourage sustainable design measures in their qualified allocation plans (QAPs), in great part because the affordable-housing industry has been at the forefront of the energy-efficient and healthy-housing development.  The Tax Credit Allocation Committee (TCAC) awards competitive points in a number of areas, including for energy-efficiency beyond minimum construction standards and provides additional credit for water efficiencies and the recapture and use of non-toxic materials.  As an example, projects must incorporate Energy Star appliances and competitive points can be awarded.

• up to 8 points for sustainable building methods
  
  
• 4 points for exceeding Title 24 by at least 10%
  
  
• 2 points for adopting an Indoor Air Quality Management plan during construction
  
  
• up to 5% basis boost for on-site energy generation

The Low Income Housing Tax Credit program has been oversubscribed by a ratio of 2:1, which could serve to further encourage sustainable design for the competitive advantage it affords

Federal Housing Administration (FHA) changes, made in part through the Housing and Economic Recovery Act of 2008, will benefit multi-family programs applying for low-income housing tax credits (LIHTCs), including reducing the requirement for upfront equity from 100% to just 20 %, with no escrow.  Initial equity installment of less than 20 percent will require approval from HUD headquarters.

Mortgagee Letter 2008-19: http://www.housingfinance.com/aft/articles/2008/sep/0908-mortgage-fha.htm

Federal Tax Credits for Energy Efficiency  http://www.energystar.gov/index.cfm?c=products.pr_tax_credits
The Emergency Economic Stabilization Act of 2008 (H.R. 1424), recently signed into law, includes an extension and enhancement of the residential tax credits and additional financing for renewable energy and energy efficiency.  The bill's attachment – the Energy Improvement and Extension Act of 2008 – enabled the following:

• a one-year extension of the production tax credit for wind energy
  
  
• a two-year extension of the production  tax credit for geothermal, biomass and solar energy facilities, trash-to-energy facilities and hydropower
  
  
• a new production tax credit for marine and hydrokinetic renewable-energy systems placed in service by 2011
  
  
• an eight-year extension of the 30% tax credit for residential and commercial solar installations and elimination of the $2000 cap for residential installations of solar electricity
  
  
•  a 30% tax credit for small wind power through 2016
  
  
• an eight-year extension for microturbines, and for fuel cells along with a tripling of the credit limit tax credit limit
  
  
• a new 10% tax credit for certain combined heat and power systems and for geothermal heat pumps
  
  
• accelerated depreciation for utilities installing smart meters and smart grid systems
  
  
• extended energy efficiency tax deductions for commercial buildings through 2013
  
  
• reinstituted energy efficiency tax deductions for home improvements installed in 2009
  
  
• extended tax credits for builders of new energy-efficient homes through 2009

increases tax credits for manufacturers of energy-efficient appliances, now extended through 2010

The Solar Energy Industries Association believes the new law will be responsible for the generation of $325 billion in private investment due to the enhanced security of the tax credits, and for the creation of 440,000 new jobs.

Industry Leaders Forecast Dramatic Growth in the U.S. Solar Market by 2016 with Extension of Credit http://www.seia.org/cs/news_detail?pressrelease.id=217


Federal Green Bonds
The HR 1424 "Energy Improvement and Extension Act of 2008" authorizes $800 million in:

• Qualified Energy Conservation Bonds, to be issued by state and local governments for energy efficiency projects, research and demonstration projects and renewable energy projects
  
  
• Clean Renewable Energy Bonds, to fund all of the production tax credits extended and created under the bill.

Rebate and Incentive Programs
ENERGY STAR program (administered through the U.S. Environmental Protection Agency)
http://www.energystar.gov/

Solar Home Equity Financing
New Resource Bank http://www.newresourcebank.com/personal-banking/loans-and-financing.php#solarhome
The New Resource Bank of San Francisco offers no-fee equity financing 

Home Depot Foundation http://www.homedepotfoundation.org/grants.html

GreenMadeSimple: Find incentives, rebates and green business listings in your area http://www.greenmadesimple.com/

Cost Benefit Studies
Commercial Real Estate and the Environment study by CoStar  http://www.costar.com/partners/costar-green-study.pdf

The Cost of Green Revisited by Davis Langdon, 2006 http://davislangdon.com/USA/Research/

The Cost and Financial Benefits of Green Building: A Report to the Sustainability Task Force http://www.ciwmb.ca.gov/Greenbuilding/Design/CostBenefit/Report.pdf

Building Savings Strategies for Waste Reduction of Construction and Demolition Debris from Buildings http://www.resourcesaver.org/file/toolmanager/O16F8895.pdf

Deconstruction Institute (online calculator)  http://www.deconstructioninstitute.com/index.php

The Dollars and Sense of Green Retrofits by Charles Lockwood and Deloitte, http://www.greenerbuildings.com/files/document/us_re_Dollars_Sense_Retrofits_190608_.pdf