National Green Building Standard:
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1 National Green Building Standard: THE CERTIFICATION GAME CHANGER October 2014
2 Headlines Building codes are ratcheting up Local and state mandates and incentives are on the rise Consumer research shows desire for green home features Buyers expect new homes to be high-performance Green home market forecast to go from $37 billion (27% of market) to $90 billion (up to 33% of market) by 2016 Building certification more common, yet residential lags the market.
3
4 NGBS Green Home Innovation provides national certification Certification based on ICC-700 National Green Building Standard Certify buildings 4 certification levels Certify products that earn builders points toward certification for their buildings Value Proposition Affordable, flexible, and rigorous Provides value: marketing, valuation, reputation, and quality Helps deliver quality, high performance asset
5 Equity Residential, New York, New York
6 Home Innovation Research Labs Originated in 1964 as small product testing laboratory Clients are architects, builders, developers, and product manufacturers Full-service consulting Market Research Product testing Standards developer Accredited third-party lab and certification agency Focused on residential construction
7 Promote innovation to improve quality, durability, affordability, & environmental performance of homes and home building products.
8 Certification Activity Report As of October 24, 2014 NGBS Project Type Units Certified Units In Process Single-Family Homes (new & remodeled) Multifamily Buildings (new & remodeled) Units within NGBS Multifamily Buildings 8,569 1,022 1, ,597 49,845 Land Developments Lots within NGBS Land Developments 1,517 23,493
9 Registered SF Homes: 1,022
10 Single Family Clients Regional production builders, custom builders, small volume builders SF builders more influenced by incentives, rebates National production builders experiment Competition is Energy Star; local programs; HERS Index
11 Multifamily Buildings: 1,179 32,597 Apartments
12 Registered MF Buildings: ,845 Apartments
13 Multifamily Clients Large companies, often with institutional investors, companies with private equity, LIHTC developers Architects are important to MF business Competition is LEED NC Perceived value is long term valuation; corporate responsibility, marketing Merchant builders less likely to be certify green
14 Green Certification System Market Share 4% 4% 2% 6% 26% 8% 9% 16% NGBS Enterprise Green Communities Green Built TX Built Green Washington Florida Green Build 25% LEED-Homes Gulf Coast Green EarthCraft Austin Energy Green Globes
15 Beyond the Traditional Home: Hotels, Firehouses, Students, Seniors
16 Multifamily is Hot. Why Seek NGBS Green Certification? 1. Market Differentiation 2. Institutional Investors 3. Energy Price Volatility 4. Corporate Reputation 5. Streamlined Approval Process * BONUS REASON: Employee Retention
17 We Build High-Performance. Why Pay for Certification? 80% consumers value independent, third-party certification FTC-compliant marketing without fear of greenwashing Quality assurance for construction Investor & appraisal recognition Risk mitigation for future value
18 Metro 808, Charlotte, North Carolina
19 ICC-700 National Green Building Standard Approved by American National Institute of Standards (ANSI) Provides rating system for environmental performance 4 certification levels Designed to be voluntary, above-code program
20 NGBS Green: The Better Green Certification System Comprehensive set of green practices for design, construction, verification, and operation Written in code language Few mandatory provisions, instead expansive, flexible point-based system Philosophy: Eliminate barriers to green certified residential buildings Costs (real or perceived direct and indirect) Difficulty / Inflexibility Processing hurdles
21 NGBS Advantages ANSI-approved consensus standard Written in code language Few mandatory provisions Expansive, flexible point-based system Multiple paths for energy compliance All residential
22 NGBS Categories of Green Practices Lot Design Operation & Maintenance Indoor Air Quality BENEFITS: Healthy Comfortable Durable Efficient Resource Efficiency Energy Efficiency Water Efficiency
23 NGBS Green Practices Mandatory Must be successfully completed for certification at any level No exemptions No points In general, to ensure baseline code minimum compliance Voluntary Awards points Points based on level of difficulty Can be design, product selection, or construction-based practices
24 2012 NGBS Performance Levels
25 NC
26 Scope of the NGBS Communities Residential Buildings Single Family Homes New Construction Renovations, additions, accessory structures Multifamily Buildings New Construction no height limit Renovations, conversions Mixed-use ok New for 2012 NGBS - Small Projects Bathrooms, basements, kitchens
27 Land Development
28 Land Development Certification Requirements Land development certification separate from building certification Green development Practices Site Selection Site Design Site Development & Construction Buildings in NGBS certified development attain points toward building certification Streamlines entitlement & permitting, market green commitment early
29 Building Certification: Single Family Homes, Townhomes
30 2012 EcoHome Magazine Grand Award Winner: NGBS Emerald
31 Building Certification: Multifamily, Student Housing, Hotels
32
33 NGBS Energy Efficiency Requirements 2012 NGBS baseline is 2009 IECC Bronze certification roughly 15% improvement = 2012 IECC compliance Whole house improvement, not just heating, cooling, water heating Three compliance paths remain Performance (Emerald) Prescriptive Alternative bronze (Energy Star or 2012 IECC / 2012 IRC Chapter 11)
34 Center at Fort Lee, New Jersey
35 NGBS Remodel Path: Streamlined, Performance-based
36 Chapter 11: Remodeling & Renovation Single family homes or multifamily buildings Applicable mandatory practices Energy & water reductions Additional points required but no minimum thresholds in each category Lot Design Resource Efficiency IAQ Operation, Maintenance
37 SF and MF Renovation: Efficiency Improvements
38 New Chapter 12: Small Projects One certification level Functional Areas Kitchens Full bathrooms Complete basements Small Additions Applicable practices are mandatory
39 Avalon Bay, Rockville Centre, New York
40 NGBS Certification Process Score Architect, Verifier, or Builder can score building Scoring provided to Verifier for inspections Register Accredited Verifiers register building Projects appear on website as in-progress Construction Inspect pre-drywall and final For MF all units must be visually inspected NGBS Certification On completion of final inspection Issued within one-business day
41 Score NGBS Green Spreadsheet
42 Register Mandatory, but Free Started November 1, 2012 Objectives Establish what version of the Standard [2008 or 2012] the building will use for compliance Get projects in process quicker; market them earlier Streamline process for verifiers Only Accredited Verifiers can register project
43 Gables Tanglewood, Houston, Texas. In-progress
44 Verify 100% Independent, Third-Party Qualify, Train, & Test Experience in residential construction and green building Standardize inspection process for projects Accredit Must have sufficient insurance, auto and liability Continuing education requirements Quality Assurance 100% review of all inspection reports Home Innovation Labs performs quality assurance audits
45 Verde Vista, Ashville, North Carolina 252 units; 280,000 total SF 0.124% Increased cost (as a % of total) or $79/unit for NGBS Silver 0.62% or $396/unit for Energy Star certification
46 Independent, Third-Party Verification Nationwide network of 350 verifiers Smaller group specializing in multifamily buildings Many familiar with other programs Verification Costs Market rate price $ / apartment Rigor Minimum 2 inspections per home/unit All inspection reports reviewed Verifiers subject to in-person and desktop audits
47 Certification Costs Certification Fee Practice and Products Verification Costs Unexpected Costs: Technical Assistance, Interpretations, Support
48 Marketing Materials homeinnovation.com/findyourgreenhome
49 Green Certified Products: Pre-approved for NGBS Points
50
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52 International Green Construction Code (IgCC) Developed by AIA, USGBS, ICC, ASHRAE NGBS is alternative compliance path buildings 4+ stories Must achieve Silver level for energy efficiency In jurisdictions that adopt IgCC for SF and low-rise residential, ICC 700 governs Opportunity for independent, third-party certification to demonstrate compliance
53 NGBS Green Michelle Desiderio MAIN: ICC-700 National Green Building Certification Group
54 Greystar s Artesian at Brightleaf, Durham, North Carolina 328 units
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