Make Green Homes Attainable

A simple incentive to purchase new green homes would improve attainability for homebuyers, lay the foundation for incentives to renovate existing homes and help the government meet its greenhouse gas (GHG) emissions reduction targets faster.

According to the Canadian Home Builders’ Association of BC (CHBABC), new homes that meet a green standard cost approximately 4 to 6 per cent more than conventional homes and account for less than 1 per cent of the overall housing stock in BC. The cost to renovate the remaining stock of homes to a green standard can vary widely.

Cash-strapped homebuyers may be more likely to buy new green homes and existing homes that meet a green standard if an up-front financial incentive was provided.

Pilot Project

This could be achieved by investing a small portion of the Property Transfer Tax (PTT) revenue (which exceeded $1 billion in 2007-08) into a pilot project that reduces transfer tax costs as a consumer incentive to buy new homes that meet or exceed Built Green™ standards.

Built Green™ is a national standard that qualifies new homes on criteria of energy efficiency, indoor air quality, resource use management and overall environmental impact. Each Built Green™ BC Gold home has the potential to eliminate 2.5 tonnes of GHG emissions annually over the life of the building, reports CHBABC.

In 2007, 771 Built Green™ BC homes were completed across BC, representing about 5 per cent of all new housing starts. In 2008, about 1,500 Built Green™ BC Gold level homes will be introduced, representing about 3 per cent of forecasted starts and resulting in reduction of GHG emissions equivalent to taking 165 cars off the road.

The project would be a cost-effective investment by the government to encourage homeowners to reduce their ecological footprint and deliver valuable data to assist further reduction of GHG emissions from existing homes and commercial properties.

Benefits

Quality of Life will improve in several ways if this project proceeds. Reducing the cost to purchase a new, green home will help make those homes more attainable. That's a direct benefit to consumers and the environment, and also to the government in two ways.

First, it would provide choice to consumers and support the principle of revenue neutrality associated with the new carbon tax. Legislation will require the government to demonstrate how revenue raised from that tax is returned to businesses and individuals. In this instance, the revenue returned through the project would be directly linked to consumers, making greener housing choices that reduce GHG emissions.

Second, the project is an opportunity to make greater GHG emission reduction strides in the future by gathering data on the effectiveness of this particular incentive to inform future programs and incentives. This is critical, since approximately 11 per cent of BC’s
annual GHG emissions are attributed to the operation and maintenance of residential and commercial buildings, as reported by the Pembina Institute.

In budget 2008, the government emphasized measures to encourage greener choices by consumers and reduced GHG emissions. BCREA believes this project supports that theme perfectly, and will encourage the government to adopt it during its Government Liaison Days conference in April.


“Copyright British Columbia Real Estate Association. Reprinted with permission.”