Congressional Apathy Blocks Homeowners Ability to Finance Energy Efficiency Improvements



Congress's obsession with saving greedy corporations has thrown American homeowners and the environment under the bus, says John Shipman of Energy Efficiency Management, Inc. (http://www.energyefficiencypro.com/) A simple technical correction of the flawed statutory language in the latest HUD Mortgagee Letter will significantly help homeowners make energy efficiency improvements to their homes.

Shipman uncovered the flawed statutory language problem while researching the Housing and Urban Development (HUD) Mortgagee Letter that caps FHA Energy Efficient Mortgages (EEM) at a mere $8,000. The Housing and Economic Recovery Act (HERA) of 2008 (http://portal.hud.gov/portal/page_pageid=73,3953556's38;_dad=portal's38;_schema=PORTAL), however, mandated that HUD substitute the cap with a 5 percent of appraised home value.

The HERA mandate makes a lot of sense, says Shipman. Once the Congress corrects the flawed statutory language, the EEM will gain immediate popularity. Then, homeowners that opt for the new FHA backed loan can make sustainable, green energy improvements to their real estate investment.

Currently 70 percent of the existing home stock pre-dates energy efficiency standards. The U.S. Department of Energy reports that building energy use is responsible for nearly 70 percent of the electricity consumption and is considered the largest source of carbon emissions in the country at 39 percent.

Shipman cites an example of how the new guidelines might affect an existing home in Orange County, California. An existing home valued at $575,000 could qualify for energy efficiency improvements (http://www.energyefficiencypro.com/home-building-green-efficiency.html) up to $28,750. That'ss enough to add solar panels, insulation, dual glazed energy efficient windows, and a brand new energy efficient heating/air conditioning system. Not only would this home save more energy than most Current Title 24 Standard new homes, it would have superior indoor air quality and be more sustainable and environmentally friendly.

Shipman, a Certified Green Builder with Energy Star and a Home Energy Rating Service (HERS) Rater, also states the EEM would also be a valuable marketing tool for realtors (http://www.energyefficiencypro.com/green-real-estate-opportunities.html). Increasingly, realtors are telling me they are seeing more and more buyers asking for homes that are green and energy efficient.

Energy Efficiency Management, Inc. has been working with House Congressional members, the House Financial Services Committee and the HUD office of Legislation and Regulations in the HUD Office of General Counsel to expedite the Technical Correction. A letter to Congressman Royce (http://www.energyefficiencypro.com/events-press/letter-to-congressman-royce-concerning-fha-energy-efficient-mortgage-eem.html) can be read at www.energyefficiencypro.com.





Congressional Apathy Blocks Homeowners Ability to Finance Energy Efficiency Improvements