SAVE Act to Improve Economy & Environment and Make Energy Efficiency More Affordable

November 04, 2011

white figure holding a magnifying glass over a green house.Good news for environmentally-conscious shoppers of Chicago new homes.

Right now, in many cases, buyers who would really love to buy a green home opt not to because the up-front costs of energy-efficient modifications to a home are too high. But with the Sensible Accounting to Value Energy (SAVE) Act of 2011, buying an energy-efficient home wouldn’t increase the cost of the home.

The bill, which was proposed last month by Michael Bennet (D-Colorado) and Johnny Isakson (R-Georgia), would require all federal lenders to consider projected energy efficiency when underwriting mortgages.

The SAVE Act would help provide homeowners and buyers of Chicago real estate more information about a home’s energy usage, encourage home energy improvements and lead to more accurate mortgage underwriting. The bipartisan bill would also help create construction industry jobs, without costing taxpayers, with the potential to eventually improve the economy.

Experts predict that the bill, which has support from interest groups across industries, has the potential to generate 16,000 new jobs and $95 million in savings in energy bills in just the next two years. By 2020, those estimates rise to 83,000 jobs and $1.1 billion in savings.

The Institute for Market Transformation explains the math behind the bill, taking an average American home using $2,400 in energy per year. A 30% more energy efficient new or remodeled home might use $1,700 in energy per year, a savings of $700 per year or about $60 per month. With the SAVE Act, if an energy efficiency package increased the cost of a home by an $30 per month, that $60 per month in savings would offset the mortgage increase, making for a $30 savings each month.

So not only could this bill save you money, it would help save the environment and the economy!

[Post by Amanda Winters]

About The Author

Read All Stories By Mitch Levinson

Mitch Levinson is the author of “Internet Marketing: The Key to Increased New Home Sales” published by BuilderBooks. He is an Internet marketing expert with expertise in search engine optimization, website development, email marketing, social media and CRM consulting services. He is known for creating effective programs that can be tracked through analytics to prove effectiveness and ROI. Mitch is founder and president of MLC New Home Marketing and MLC FlatFee Realty, as well as managing partner of mRELEVANCE, LLC, a Marketing, Communication, Interactive agency with offices in Chicago and Atlanta. He currently leads the Chicago team. A Multi-Million Dollar Sales Producer who earned an MBA in Computer Information Systems and eCommerce, he brings a unique perspective and experience to the field of real estate communications. Mitch combines the two interests in order to help home builders and developers gain a competitive advantage through the Internet and technology. When he isn’t behind a computer, he enjoys participating in sports and coaching his kids’ teams. Mitch resides in Arlington Heights, Ill., a northwest suburb of Chicago, with his family, which includes two rambunctious labs. Visit my Google+ profile.

Leave a Comment