Page 297 - The Green Building Bottom Line The Real Cost of Sustainable Building

THE FINE PRINT: LEGAL ISSUES IN GREEN BUILDING PROJECTS 275

Other Examples of Laws and Incentives Relating to Green Building

Green Building Codes
Boston, Massachusetts—All new and rehabilitation construction projects
over 50,000 square feet must earn at least 26 LEED points.

Montgomery County, Maryland—County-built non residential buildings
must achieve a LEED Silver rating; private nonresidential or multi-family
residential buildings must achieve LEED certification.
Santa Cruz, California—Residential and nonresidential projects must
earn points from green building checklists. The checklist for nonresiden-
tial projects is based on LEED; the checklist for residential projects was
developed independently.
Babylon, New York—New homes must be built to meet Energy Star stan-
dards.

Incentives
Corona, California—Green building projects are fast-tracked through the
plan-review process, cutting permitting times by as much as half.
Arlington, Virginia—The county allows increased densities for certain
projects meeting green building requirements.
State of Maryland—Awards grants for solar, geothermal, and wind instal-
lations and tax credits for green building projects.

Austin, Texas—The local utility company is one of many nationwide offer-
ing rebates for energy efficiency and renewable energy installations.

The second issue to consider is the role that financial incentives can play. In early
2007, New Resource Bank in San Francisco announced a program giving the devel-
opers of LEED buildings a reduction of one-eighth of a percentage point in interest
rates and the opportunity to finance a higher percentage of a construction project’s cost
than traditional construction loans. Bank of America has committed to lend billions of
dollars for green projects, a large portion of which can be expected to go to developers
of green building projects. GE Real Estate is working to green its massive portfolio,
and at least one real estate investment trust committed to investing in green buildings
4
has been announced. There are other examples. With so many lenders and investors
seeking green building projects, lenders and investors may need to give developers
incentives in order to meet their commitments.