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Green Building & Remodeling Tax Credits

There are currently 2 Federal tax credits for energy efficiency and 1 commercial tax deduction. Information on the forms needed to claim these are in bold below. Most LEED for Homes or GreenStar projects will also meet the eligible requirements of the tax credits

Tax Credits for Energy-Efficient Home Improvements

What: Tax credits equal to 10% of the material costs paid by the taxpayer for qualified energy-efficient improvements installed from January 2012 through December 2013.

Who: Homeowners

Limits: Improvements installed in 2012 and 2013, can get a maximum credit of $500. If you have claimed more than $500 in energy-efficient tax credits since January 1, 2005—you are not eligible to make a tax credit claim in 2012 or 2013.

Claim: Use IRS Tax Form 5695 (version 2009).

NOTE: For insulation to qualify, its primary purpose must be to insulate. It must be expected to last five years OR have a two-year warranty. Installation costs are not included. GreenStar Remodeling Certification Can help!

Builder Tax Credit for Energy-Efficient Homes:

What: $2,000 tax credit for new, energy-efficient homes that achieve 50% heating and cooling savings over a comparable dwelling unit constructed in accordance with the 2006 International Energy Conservation Code (IECC) and supplements. LEED for Homes certified projects with applicable HERS scores will qualify.

Who: Home builders

Limits: The credit is retroactive to January 1, 2012 and covers homes built through December 31, 2013 for homes sold or leased in 2012 and 2013.

Claim: Eligible contractors should fill out IRS Form 8908.

Commercial Tax Deduction:

What: Tax deduction of up to $1.80 per square foot for new or existing commercial buildings that save at least 50% of the heating and cooling energy of a building that meets ASHRAE Standard 90.1-2001.

Who: Owners or designers of new or existing commercial buildings.

Limits: Available for systems “placed in service” from January 1, 2006 through December 31, 2013.

NOTE: Partial deductions of up to $.60 per square foot can be taken for measures affecting any one of three building systems: the building envelope, lighting, or heating and cooling systems. LEED for Homes Midrise Certified Buildings will help to achieve requirements 

Claim: Check with your accountant to claim this deduction.

Will this be renewed in 2014?​

No word yet. Most of them have been renewed for several years. But with all that’s going on, I don’t think it’s at the top of the agenda. Usually if it’s renewed it happens at the very end of the calendar year or the first couple of months of the next.

You also can find a list of local tax incentives at www.dsireusa.org.

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Qualified Allocation Plan (QAP) MSHDA LEED & Green Verification

can serve Michigan based affordable developers looking to secure funding for Single and Mult – family projects through out the state. MSHDA now has Low Income Housing Tax Credits (“LIHTC”) for developments that are promoting safe, decent, affordable housing. Integral to this effort are specific policies within the QAP that pertain to healthy, green, and sustainable building practices.

can consult, provide technical assistance and third party verification for those seeking to complete the MSHDA Affordable Green Standard criteria, Green Communities Certification and/or LEED for Homes Certification. will help project teams meet criteria, obtain tax credits and ensure a healthy, affordable, durable and efficient living situation for Michigan citizens.

Please contact us today and to learn more about this initiative or see MSHDA’s Green Policy  or Qualified Allocation Plan (QAP) Details.

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Design Charrette Grants for LEED for Homes

Pre-planning is critically important when designing and constructing a green building. encourages projects to use integrated design, bringing key members of the project team together often in the schematic design phase to discuss the project, set goals and accountability, and solve potential problems up front rather than during construction when its often more costly. Thanks to Green Communities, those who are pursuing LEED for Homes and participate in a Design Charrette, may be eligible for up to a $5,000 grant prior to the charrette.

Eligible Applicants

  • Open to 501(c)(3) nonprofits, tribally designated housing entities; and for-profit entities participating through joint ventures with qualified organizations.
  • Please note that applications for joint ventures must identify the nonprofit 501(c)(3) organization as the legal entity to receive the grant, if awarded funding.
  • The applicant and the development team must demonstrate their qualifications to successfully carry out the proposed development.

Target Projects

  • Projects must be subject to firm site control or evidence that site control is imminent. Applicant must identify whether proposed project site is an occupied or unoccupied property.
  • Projects must involve new construction of residential units or rehab at an estimated cost of $3,000 or more per unit.
  • Projects applying for pre-development Charrette funds must be in the early stages of planning or schematic design phase of development.

Intended Uses of Funds

Funds may be used to cover the cost of conducting a Green Communities Charrette. Expenses include: pre-qualified consultant fee for facilitation; consultant travel costs, not to exceed $1,000; meeting preparation costs, such as creating invitations, meeting and follow-up materials, venue and program support time all not to exceed a combined total of $800. Food is not an allowable expense.

Please note that consultants selected must adhere to the rate policy established by the federal provider of these dollars.

Grant Amounts

Grantees will be required to provide a match of 3:1 in private dollars. Match must be achieved at the beginning of the grant period of performance. Back up documentation must also be submitted to provide confirmation of these sources.

Grant Application and Approval Process

  • Submit Charrette Grant application. At application stage, applicants must identify the development goals, intended outcomes, and facilitator information. Please consult your Green Rater and/or LEED APH to discuss outcome of Charrette.
  • Receive acknowledgement from Enterprise regarding whether the grant has been approved, denied or approved with conditions. Because funds are limited, Enterprise will reserve the right to negotiate with grant applicants to determine the highest and best use of Green Communities grants in a specific project.
  • Execute a Charrette Grant Agreement with Enterprise.
  • Charrette Grant applications are reviewed once per month. Applicants will be notified within 4-6 weeks after submission.

More details at http://www.greencommunitiesonline.org/tools/funding/grants/charrette.asp?mkt_tok=3RkMMJWWfF9wsRokv63KZKXonjHpfsX64usqW7Hr08Yy0EZ5VunJEUWy24AIS

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“River Escape” Home Tour – Pending LEED Platinum

n 11.11.11 come see an affordable home that was built to be 88% more energy efficient than and standard new code built home. This home is a Zero-Energy home that is projected to be a LEED for Homes “Platinum” project. The home is also a finalist for Green Builder Magazines 2011 Home of the Years.
Pending AIA Approval
Please RSVP with us at.
616.957.LEED (5333) or at
ehughes@imagedesignarch.com
“River Escape” Home Tour

November 11th at 10:00 am and 1:00 pm
7121 River Escape
Stanwood, Mi.
Sponsored by
Eric Hughes of Image Design, LLC
Adam Eerdmans of Turtle Walls
Tim & Dawn Gruss Home Owners

The “River Escape Project”

Resting in Western Michigan’s vacation wonderland, this home is located near the Muskegon River in Stanwood, Michigan with river access, thus the project name. This home is a site specific, 1,267 square foot Passive Solar Contemporary Style home built with BuildBlock ICF (Insulated Concrete Forms) from frost protected shallow foundation to the SIP roof. The exterior elevations of the home were designed with deeper roof overhangs, determined by using solar calculations, to both maximize and minimize the sun exposure based on the time of year. The exterior used two of our favorite products James Hardie FiberCement Siding and MiraTec trim. The interior of the home has stained concrete floor on the main level which makes for great thermal mass. The home was also designed with lifetime design principles and has zero step entries.

Part of the passive solar design is to have very few windows on the non-south sides of the home, to keep heat from escaping through them. That is why this homes attention to detail is spent on the Southside of the home, where most of the homes windows face south. The windows in this home are made by North Star (Canadian made) which uses a transparent low-E film between the panes of glass with a foam spacer to get a triple pane effect without the weight or waste of extra glass. The window U-value is .24 with a much higher Solar Heat Gain Coefficient (SHGC) on the South windows. In the winter, the sun will warm the living space during the day and shine on the concrete floors which will store some of the heat gained, for gradual release. The roof overhang will shade the house from excessive solar heat gain in the summer, and west-facing glass is minimized to reduce cooling needs in the summer. ICF construction was perfect for this project because with ICF’s there are no concerns with noise and wind. It is wonderful to quietly contemplate the winter storms swirling through the open fields and feel pleasantly comfortable. The “River Escape” project is a Zero Energy Home (ZEH) thanks to the Passive Solar Design, 4.1 kW of Photovoltaic, Solar Hot Water and a 98% efficient boiler for the radiant floor heat and hot water backup. The home is also pre-wired for future installation of a Wind Generator. This home only uses about 600 kWh of electricity per month and has been generating a minimum of 20 kWh of electricity per day and net-metering backwards every day since the home was completed in June. The home was built for $142.00 per square foot (before the 30% rebates from the Solar Hot Water, and Photovoltaic systems) making it more affordable for the general public. Besides the LEED for Homes “Platinum” certification (this project scored 32.5 points above “Platinum”) this home received 5+ Energy Star certification and a HERs score of 12. This is the lowest score ever tested in the State of Michigan making it the most energy efficient house in Michigan. This home is 88% more efficient than a conventional code built home. The home is also ZeroStep “Silver” Certified (Lifetime Design or Barrier Free) from Disability Advocates of Kent County Michigan. In addition this homes toilets, faucets and shower heads are super low-flow for superior water efficiency. The home also has low-VOC paints, adhesives and finishes and uses recycled content for the flooring, foundation, exterior walls, trim and siding. Every possible piece of unused material used in construction was recycled.

Key Sustainable/Green Features

• Rain Permeable Gravel Driveway.
• Lifetime Design (Barrier Free)
• Zero step entries.
• Energy Star North Star Triple Pane Windows.
• Energy Star LED & CFL lighting.
• Energy Star Ceiling Fans.
• Energy Star Appliances by Frigidaire.
• SIP Panel Roof
• Frost Protected Shallow Foundation (with R-20 Dow Insulation beneath it.)
• BuildBlock ICF Construction (with 40% Fly-Ash)
• Advanced Framing (Studs @ 24” o.c.)
• James Hardie FiberCement siding (with recycled content)
• MiraTec Trim (formaldehyde free, SCS Certified)
• Central Vacuum System (Greatly reduces in-door air pollutants)
• Concrete Floors through-out main floor. (Colored in the concrete mix)
• FSC certified Bamboo Flooring on second story.
• FSC certified stud interior walls.
• No-VOC Paints and primers.
• Low-VOC caulks and sealants.
• Amish Built Kitchen Cabinets from wood within 5 miles from the project site.
• Dual-Flush toilet by American Standard.
• Low flow shower heads and faucets.
• Pex Plumbing.
• Radon Venting.
• Radiant Heat Through-out Home.
• Life breath HRV (heat recovery ventilator)
• Passive Solar Design.
• Solar Hot Water. (30% Tax Rebate)
• 4.1kW of Photovoltaic (30% Tax Rebate)
• Pellet Stove (Back up Heat System)
• Pre-wired for a future Wind Generator.
• Pre-wired for future battery backup.

By Eric A. Hughes of Image Design, LLC

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Numbers, Know-how and navigating LEED in affordable housing

Join USGBC for a free 3-part webinar series exploring the green affordable housing movement.

– Examine market examples to discover factors driving green affordable housing, as well strategies for success and the benefits to going green when tackling affordable housing projects.
– Explore the synergies between keeping design and construction costs down and building in a responsible, sustainable fashion.
– Identify tools and strategies to finance retrofits of existing multifamily developments while taking an in-depth look at affordable housing and LEED.

All sessions will be held from 1:00 to 2:30 PM EDT.

Oct. 20, 2011

Driving Smart Decisions in Green Affordable Housing

Nov. 3, 2011

Financing Green Multifamily Retrofits

Dec. 8, 2011

LEED Certified Affordable Housing: It gets better every time

Register today »

Each session in this series will be registered for 1.5 hours of continuing education with AIA/CES SD/HSW, and GBCI CMP hours for LEED professionals.

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LEED platinum-certified home in Chicago is a showcase for stylish living

The total cost was $1.6 million. That may seem like a lot of money, but if you look at any other custom-built house this big—it’s 2,675 square feet on a double lot in Chicago—it’s going to cost at least that much. Incidentally, the green materials generally were no more expensive than conventional alternatives.

ELLE DECOR: Why did you decide to build a LEED platinum house?

MICHAEL YANNELL: I wanted to set an example. I had been very frustrated with the construction I was seeing in Chicago. There are so many green options, but nobody was using them. People assume it’s too cold, it’s too cloudy, for solar energy. I wanted to show it could be done here.

ED: So it’s a kind of demonstration house?

MY: I’m not saying every house should be like mine. I’m saying, look at my house, take one detail, and start there.

ED: To accomplish that, you have to be willing to let the world see how you live.

MY: After I moved in I began giving tours constantly—usually an hour long, and limited to ten people, because there were always lots of questions. We started outside the house, and I explained the macro design of the home and then went room by room. I think people have been surprised by how beautiful the house is on the inside. I don’t know what they were expecting.

ED: So, give us the tour.

MY: The house is divided into two wings, so every room has a southern exposure. I think that’s a huge benefit, to not have any room be always dark. I never have to turn a light on during the day. In the winter months, it really has a beneficial psychological effect. The north side, by contrast, has only a few small windows—you’d lose too much heat otherwise.

ED: The solar panels all face south.

MY: Yes. But it doesn’t jump out as a house with solar tacked onto it. One of the things the architects insisted on was having as many of the solar panels hidden from view as possible. That’s one of the reasons the roof has that V shape. All the panels are on the north side of the V, and the south side of the V hides them from sight.

ED: How much did all this cost?

MY: The total cost was $1.6 million. That may seem like a lot of money, but if you look at any other custom-built house this big—it’s 2,675 square feet on a double lot in Chicago—it’s going to cost at least that much. Incidentally, the green materials generally were no more expensive than conventional alternatives. The big items were the heating and cooling systems. But you can take tax credits for 30 percent of those. So basically I won’t owe income tax for the next few years.

ED: How did you choose the finishes?

MY: Every material that went into the house has some environmental story. The exterior is a combination of durable fiber-cement board and Forest Stewardship Council–certified cedar, covered in a cocoa soy-based stain. I love the contrast of dark and light.

ED: And the interior finishes?

MY: In the south wing the floors are a dark brown recycled-porcelain tile, which is very earthy, very soft. In the north wing the floors are made from scrap lumber, which would have ended up in a landfill. It’s walnut, with a clear coat that gives it a warm, natural feel. In the bedrooms, I chose dyed-clay walls. Besides looking good, they absorb sound better than regular painted walls. And clay also absorbs humidity, which is a nice feature in the summer.

ED: Does the furniture have the same kind of environmental credibility?

MY: Much of it is steel, which is recyclable. That’s one of the reasons we bought a lot of furniture from Knoll. The house has a midcentury look, so Knoll was right up our alley. All of the fabrics are Greenguard certified.

ED: What about the art?

MY: We chose the work of a Venezuelan artist, Radames, who works with Plexiglas scraps. I liked the designs, but I don’t like Plexiglas, because it has a high petroleum content. So we asked if he could work with 3form, which is an eco-resin product. He came up with seven or eight pieces for inside and a sculpture for the backyard, so it’s a green art collection as well.

ED: Speaking of art, the house has gallery reveals—those subtle recesses where the walls meet the windows and door frames.

MY: We used reveals throughout the house. I had never even heard the term before. It became known as the “R-word” during the design phase. It added to the cost, but it was really important to the architects. I have to admit, I appreciate how good it looks.

What the Pros Know

Architect Jonathan Boyer, of Chicago’s Farr Assoc., says the house is designed to produce as much energy as it consumes. But, he adds, he knew it would get the point across only if it also looked good.

• Be flexible: Most of the materials were produced locally—a key green principle—but when he needed an attractive cement board, Boyer had to buy a European product.

• Do double duty: The butterfly roof provides shading in summer and optimal placement for the solar panels. The V shape collects rainwater, which is used for irrigation.

• Exploit technology: “Thanks to LEDs, we were able to flood the rooms with light,” says Boyer, “despite using fixtures so compact you hardly see them.”

Click here to see the gallery of the Home

Written by Fred A. Bernstein • Photographed by Tony Soluri • Produced By Susan Victoria

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City of East Lansing now covers LEED for Homes Certification Costs

City of East Lansing
Green Building Incentive Policy
November, 2010

The City of East Lansing recently adopted an innovative Green Building Policy which requires new municipal construction to attain the U.S Green Building Council’s (USGBC) Leadership in Energy and Environmental Design (LEED) Certification. The policy also requires new private development receiving municipal incentives to achieve certain levels of LEED certification. This policy’s goal is to incorporate green building principles into the design, construction and operation of new buildings within the City.

In order to further this mission, the City recognizes the need to provide incentives for projects which do not receive municipal incentives through the existing Green Building Policy. This Green Building
Incentive Policy shall:

1) Apply to new single family and commercial construction projects which do not receive financing incentives through the existing Green Building Policy.

2) Create an annual incentive fund not to exceed $10,000 whose monies will be derived from  a combination of water, sewer and general funds.

3) Ends on December 31, 2012, at which time it will be reviewed to determine the ability to further fund the program and to analyze its effectiveness.

New construction projects which are eligible under this program may apply for a incentive funds which will be awarded after the successful completion of the project and certification of LEED status by the US Green Building Council. The amount of funds provided will be awarded as follows:

• Projects receiving LEED “Certified” or “Silver” status: $1,300
• Projects receiving LEED “Gold” or “Platinum” status: $2,600

A maximum of $10,000 per year shall be available and reimbursement is subject to availability of funds.

This policy shall be administered by the Department of Public Works who shall be responsible for marketing the program, developing application procedures, and providing an incentive award to participants who have satisfied the requirements of the program when funding is available.

East Lansing also provides incentives for tax increment financing funds, Brownfield redevelopment funds (Worth LEED points), community development (Worth LEED points)block grant funds.

For more information Contact:

Dave Smith
Environmental Specialist
City of East Lansing
517 337-9459
dsmith@cityofeastlansing.com

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Northbrook’s First LEED Home – Permit Rebate

This article republished from patch.com

As the first planned green home in Northbrook, the 4,500-square-foot, 2-story, 4-bedroom house will take advantage of the land’s orientation and unique flood, solar, and energy conservation characteristics. The home’s owner and general contractor is Ihab Riad, owner of Green Park Construction, a builder of luxury custom homes. As the first LEED-certified home in Northbrook, Mr. Riad expects to receive a rebate for the building permit fee, given Northbrook’s green building incentive program.

Riad, who currently lives in Mt. Prospect, hopes to showcase what can be accomplished with sustainable design and construction through this project, he and his family’s new home. Green Park Construction has already submitted design drawings for a preliminary LEED rating for the project. The LEED system gives credits for several different “green” metrics of a building, including energy savings, water efficiency, CO2 emissions reduction, recycled content, improved indoor environmental quality, and stewardship of resources and sensitivity to their impacts. Riad said initial estimates put his home at a LEED-Silver rating, and if he achieves some disputed points it could even achieve LEED-Gold, the second-highest rating the USGBC bestows, just below the net-zero energy rating of LEED-Platinum.

“We won’t be surprised if it scores higher (than silver),” Riad said. “We have a lot of innovation points from some of the systems we’ll be using, such as geothermal heating, but the goal is not to do these things just to get LEED points, we’re doing it because it’s the right thing to do.”

Riad was born in Egypt and moved to Mississauga, ?Canada, at the age of 16. Growing up in our neighbor to the north instilled a lifelong belief in environmentalism and green architecture, he said, a focus that is interwoven with his career in real estate and construction. The home was designed by Mark Rupsis, principal of Rupsis Associates in Shorewood.

“We embraced new ideas in the design stage,” Rupsis said. “Using geothermal, structural insulated panels and some of these other technologies are much different than conventional design, but actually quite easy once you know how all the pieces fit together.”

Structural insulated panels, or SIPs, are a composite building material. They consist of an insulating layer of rigid polymer foam sandwiched between two layers of structural board. The rigid insulation core of the SIP acts as a web, while the outer sheathing insulates. SIPs are unique because they combine several components of conventional building?such as studs and joists, insulation, vapor barrier and air barrier—into one material. They can be used for many different applications but are mainly being applied as a continuous air and vapor barrier on Riad’s house. All of the exterior walls will be SIPs or precast concrete panels. This continuous air barrier is designed to keep the cold out and keep heat pumped up from deep underground via the house’s geothermal heat pumps, in. The plans also call for highly insulating Anderson 400 series windows, bamboo flooring throughout and a Superior Walls foundation made of precast concrete. This will be the first home project in the Midwest where SIP walls were used with a Superior Walls foundation.

Riad is taking advantage of construction efficiencies made possible by these technologies. All of the SIP walls and precast pieces will be built in a factory and delivered to the site ready for installation.

“The first floor walls take two days to put up,” Riad said. “The second floor walls will be in up in a month. We’re expecting one to two days for the installation of the foundation, as well.”

By using these delivery methods Riad can take advantage of construction waste reduction credits available in the LEED system as well as innovation credits that could contribute to a LEED-Gold rating. Riad expects the roof and all of the walls to be installed and completed by January and the home ready to live in by August 2011.

Riad had nothing but good things to say about working with the Village of Northbrook’s Planning Department to approve his unconventional home.

“Our staff had to do research on these emerging technologies to make sure they were compliant with codes,” said Tom Poupard, director of planning and development services for the Village. “Most of our codes include performance-based standards, so as long as we can get documentation that a new approach meets or exceeds our requirements and does not cause  some other problem, such as flammability, it is going to be fine.”

Poupard said the primary way in which the Village encourages green construction is by means of its LEED building program, wherein building permit fees are rebated to the homeowner after a home is certified by the USGBC. Since this is the first residential permit approved, Riad will receive a 100 percent rebate of the fees upon certification.

This article republished from patch.com

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Financial Incentives for Green Remodeling

It’s no surprise that there are a lot of incentives out there for folks that are doing any remodeling that help encourage green strategies – everything from tax credits, tax deductions, rebates, grants,  municipal incentives, and more!  The USGBC Illinois chapter has been working on pulling much of this information together into an educational seminar that will be held Tuesday, Oct 19 in Chicago’s north suburbs. If you are a builder, designer or remodeler looking to capitalize on green building and better serve your clients, this is the event for you.

Title: Leveraging Residential Incentives to Green Your Bottom Line
Date: 19 October 2010, Tuesday
Time: 06:00 PM to 08:00 PM
Location: Ryerson Welcome Center, 21950 N. Riverwoods Rd., Riverwoods, IL [view map]

Program Description:
Please join USGBC-Illinois Chapter’s North/Northwest Suburban Branch, the Residential Green Building Committee and the Home Builder’s Association of Greater Chicago for: Leveraging Residential Incentives to Green Your Bottom Line.

This program will focus on the many available ways to defray the cost of building or remodeling a green residence.  We will present available tax credits, tax deductions, utility rebates available for green residences.  In addition, we will review pending legislation both at the State and Federal level that creates green building incentives.  There will be a special focus and case-study on building green affordable housing.  This event is co-sponsored with the Home Builders Association of Greater Chicago, whose Members are eligible to attend at the discounted Member rate.  Residential design, development and building professionals are the primary audience for this program.  Home owners may also be interested in available incentives.

Agenda:
6:00 – 6:30 Registration and Networking
6:30 – 6:35 Introductions from USGBC N/NW Branch & Speaker Introductions
6:35 – 7:30 Panel Discussion
7:30 – 8:00 Open forum / Q and A session

Speakers:
Dan Rappel, AIA, LEED AP BD+C Vice-chair USGBC-IL Chapter Residential Greenbuilding Committee
Bill Seeger, EcoHabitat
Chris McCauliffe, Owner, CM Real Estate Development LLC

For additional information and online registration, please click the link below:
Leveraging Residential Incentives to Green Your Bottom Line

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Free USGBC Education on Greening Affordable Housing

Join USGBC for an important, free educational program – bringing you the tools you need to understand the intersection between green building and affordable housing. And then leverage the local incentives supporting sustainable affordable housing.

The Keys to Green Affordable Housing: A Guide for Existing Multi-family Properties is an online training designed to address key issues in the affordable housing sector, including:

  1. Green multi-family retrofit projects,
  2. Sustainable operations and maintenance of affordable housing buildings, and
  3. Financial and incentive aspects of affordable projects.

Each sessions is a 90-minute webinars, and offered at no cost for attendees. REGISTER NOW.

Inquiries in affordable housing certified as LEED for Homes projects are growing, especially with the many incentives and benefits available for those building green including:

  • Home Depot Foundation – grants for LEED-registered projects help with certification costs.
  • Enterprise Green Community – design charrette grants and occupant education programs.
  • LEED for Homes provides third-party verified accountability for funding sources.
  • State grants like IL Energy Efficient Affordable Housing program
  • Other incentives for efficiency and renewables outlined at DSIRE

With all of this support, it’s no wonder there is a burgeoning market for green affordable housing. The USGBC webinars are a great start, and if you’re looking to make your next project in the Midwest a sustainable and affordable development, contact for a proposal as a LEED for Homes supporting provider to help you through the process.