Us Congress House Bill HB8402

Us Congress 2023-2024 Regular Session

• Introduced: 5/15/24
• Refer: 5/15/24
• Refer: 6/27/24

Caption

GREEN Appraisals Act of 2024 Getting Renewable and Energy Efficient Neighborhoods Appraisals Act of 2024

Impact

The enactment of HB 8402 is expected to have a significant impact on how residential properties are valued in relation to energy efficiency. By allowing energy reports to be submitted and considered during appraisals, the bill encourages homeowners to invest in energy-efficient upgrades, potentially leading to higher property values. This shift aims to reflect a growing recognition of the importance of sustainability in housing, essential in addressing climate change and reducing energy costs for homeowners. As a result, the bill represents a step forward in aligning housing finance with broader energy efficiency goals.

Summary

House Bill 8402, known as the Getting Renewable and Energy Efficient Neighborhoods Appraisals Act of 2024 (or GREEN Appraisals Act), aims to enhance the appraisal process for residential mortgage loans by incorporating energy efficiency and renewable energy features into property valuations. The bill mandates that creditors provide potential borrowers with information regarding their rights to submit an energy report for residential properties, thereby emphasizing the importance of energy-related features in determining property value. Appraisers will be required to consider these energy reports during the appraisal process, which could impact the final appraised value of the property, either positively or negatively.

Contention

Discussion surrounding HB 8402 may present points of contention related to the integration of energy reports into the appraisal process. Critics may express concerns regarding the potential for discrepancies in appraisals depending on the interpretation of energy reports, as well as the qualifications required for appraisers to adequately assess energy efficiency features. Additionally, stakeholders may debate the implications of requiring such reports, particularly regarding costs to borrowers and whether these considerations could inadvertently result in biases in property valuation against certain housing markets.