Events & Press
Energy Efficiency Management & CHEERS Jointly Promote the FHA's Energy Efficient Mortgage Program |
| Published by Nov 17th, 2008 |
| It is no secret that the United States, and in fact, the World is at a crossroads in terms of our energy and environmental future. Where we go from here will have a profound effect on our lives and on the lives of our children and generations beyond. In California, like the rest of the nation, over 70% of the existing building stock (residential and non-residential), pre-dates energy efficiency standards. The U.S. Department of Energy reports that building energy use is responsible for nearly 70% of electricity consumption and is considered the largest source of carbon emissions in the country at 39%. According to Residential Energy Network (RESNET), estimates are that the United States could cost-effectively save about 30% of building energy use today through energy efficiency measures. Keeping in mind again, that over 70% of California’s building stock pre-dates energy efficiency standards; this opens the door for vast energy improvement to existing homes and businesses. The challenge then becomes, through the use of cost effective energy efficiency measures, to meet or exceed that goal. Energy Efficiency management, inc. is rising to that challenge. Our philosophy, goal, and practice are to meet or exceed that challenge. Included in our effort to achieve cost effective energy efficiency, is to incorporate the application of green measures and applications in our work in the field. Our methodology of energy efficiency and true green process applications incorporates a broad spectrum of techniques primarily drawn from building science and green measures, but also encompasses a variety of other disciplines. Energy Efficiency Management, Inc. has collaborated with California Home Energy Efficiency Rating Services (CHEERS), in an effort to promote the Federal Housing Administration’s (FHA) Energy Efficiency Mortgage (EEM) program. As a proponent of energy efficiency, green applications, and as a California Realtor, I believe this program to be an extremely necessary, proactive, and important step in the process of meeting the challenge for improved energy efficiency of California homes, and homes all around the nation. In addition, this program will serve to promote green environmental and sustainability issues, as well as the real estate market. Energy Efficiency Management, Inc. will assist in the Energy efficient Mortgage (EEM) process, by facilitating FHA Energy Efficient Mortgages as a Project Manager and or through third party HERS Rater verification, utilizing CHEERS’ Existing Homes Program and proprietary software in our process. Third party HERS Rater verification is an important step required by FHA in the Energy Efficient Mortgage (EEM) process in order to determine cost effective energy efficient improvement measures to be considered in the EEM. The EEM is a fantastic tool in the arsenal of the energy efficiency revolution taking place, and necessary to effect the changes needed to our existing home stock, here in California and throughout the nation. This will significantly aid in reducing our carbon footprint, and improve our overall energy efficiency. Given its importance, Energy Efficiency Management, Inc. will continue to work to promote the EEM throughout the real estate community in California. The 2008 Housing and Economic Recovery Act (HERA) has mandated the issuance of a new mortgagee letter by the office of Housing and Urban Development (HUD), eliminating the current cap of $8,000. in cost effective energy improvements allowed in an EEM. However, the issuance of the mortgagee letter has been delayed, due to “flawed statutory language” contained in the letter. Energy Efficiency Management, Inc. has been actively involved in working with members of the United States Congress, the House Financial Services Committee and the HUD Office of General Council’s office of Legislation and Regulations, to fast track a Technical Correction required by the United States Congress to remove the “flawed statutory language’ from the mortgagee letter. Once corrected, the mortgagee letter will be issued, allowing for the new cost effective energy efficient improvements to be 5% of the appraised value of the property, up to a maximum loan limit allowed by HUD in the area where the property is located. For example, after January 1, 2009 in Orange County, California, indications are that, that will be equal to 5% of the appraised home value up to a maximum of $625,000 (the maximum HUD loan limit proposed for Orange County, California). We believe this will exponentially increase the amount of EEM’s across the nation, having an immediate and significant effect to Both, the EEM program and the energy efficiency improvement of our existing home stock. Conducting business as usual in the construction, energy, and real estate fields will continue to fail us. Industry standards in these areas must change if we are going to meet the energy and environmental challenges facing us today. How we blend energy efficiency, green applications, and real estate marketing to the everyday process of building, remediation, and selling of our new and existing home stock will be our legacy. Energy Efficiency Management, Inc. is a proud Orange County, California Corporation based in Fullerton, California. We will continue to focus on energy efficiency and green applications, and continue our work to meet the challenges we face. We will continue to work to be an active element for positive change in our industry and to our environment, through our applications in the field, and by our dedication to educating others. By re-introducing the EEM at the recent California Association of Realtors (CAR) Expo in Long Beach, California in October of 2008, we are working to bring the Real Estate Sales and Mortgage Industry together with Green-Building Science; leading us one-step closer to the goal of overall improved energy efficiency and environmental sustainability. John Shipman President, Energy Efficiency Management, Inc. |