Washington, D.C. — U.S. Senator Michael Bennet (D-Colo.) and U.S. Representative Sean Casten (D-Ill.) reintroduced the Getting Renewable and Energy Efficient Neighborhoods (GREEN) Appraisals Act. This legislation will encourage energy-efficient and clean energy features to be considered as part of the residential home buying and appraisal process.
“By cutting energy costs and reducing emissions, energy-efficient and clean energy home upgrades play an important role in our country’s transition to a clean energy economy,” said Bennet. “This bill will help ensure property appraisals reflect the complete value of homes in Colorado and across the nation by accounting for energy-efficient and clean energy investments.”
“Whether it’s a solar panel on your roof or heat pump in your backyard, energy-efficiency technologies should be considered when assessing your home’s value,” said Casten. “This legislation incentivizes homeowners to reduce their energy costs and ensures their home is properly valued.”
The GREEN Appraisals Act will help home appraisals accurately reflect the value of renewable and energy-efficient features of a property. Specifically, the energy appraisals will consider the energy efficiency characteristics of the property, any renewable energy-related features, estimated energy savings, the energy consumption for the property compared to similar properties, and whether such characteristics are relevant to the property’s market value.
The legislation will also standardize the value of energy-efficient features across the housing market, encourage sustainable building practices, and support green jobs in the housing industry. Additionally, the bill will require appraisers to obtain additional education and training to qualify to provide accurate green appraisal reports.
The bill also directs the Federal Housing Administration, Federal Housing Finance Agency, and Department of Veteran Affairs to require lenders, when making the disclosures under the Real Estate Settlement Procedures Act, to notify home loan borrowers that they have a right to request an energy report and provide an energy report to the lender or a qualified appraiser, which must consider the report when determining the value for a home.
Bennet and Casten previously introduced the GREEN Appraisals Act in 2024.
This legislation is supported by the Appraisal Institute, the American Society of Appraisers, NCLC (on behalf of its low-income clients), RESNET, Pearl Certification, and the Building Performance Association.
The text of the bill is available HERE.