The federal department of Housing and Urban Development (HUD) is in the early stages of planning a series of programs to increase residential energy sustainability. Possible programs include a scoring system to help home buyers assess the energy efficiency of each home on the market and lower FHA mortgage rates for energy efficient homes. HUD’s intent is to mandate full disclosure of a marketed home’s energy efficiency by the seller and listing agents, no differently than the energy rating for an automobile purchase. Thus the buyer would compare available housing for the rating and convert a good rating into a lower interest rate on his FHA loan.
ft take: This program will be resisted by builders and brokers as yet another HUD interference with the market place. In fact, if this program comes into existence it will change builders’ preference to center city locations near centers of employment and shopping, and housing density will increase as condo situations become more prevalent. As for brokers, the outlying subdivisions will have less attractive energy efficiency numbers than residences closer to population centers. Sellers in those subdivisions will also be troubled, of course, as they are forced to give up facts on their property in a more competitive spirit than they would like to entertain.
Re: “Feds may have home sellers disclose energy cost”, from the San Francisco Gate
