Us Congress Senate Bill SB4340

Us Congress 2023-2024 Regular Session

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

Caption

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

Impact

The bill sets forth mandatory procedures for creditors to provide prospective borrowers with information about energy reports and their implications for the property value. It stipulates that an energy report detailing the property's energy features and expected energy costs or savings must be made available to appraisers. This provision not only helps borrowers understand the impact of energy efficiency on financing terms but also promotes the broader goals of environmental sustainability in housing.

Summary

SB4340, also known as the GREEN Appraisals Act of 2024, aims to enhance the appraisal process for residential mortgage loans by incorporating energy efficiency and renewable energy features into property assessments. The bill requires all relevant parties, including creditors and qualified appraisers, to acknowledge a property’s energy report during the appraisal process. By encouraging the use of energy-related information, the bill seeks to facilitate more accurate valuations that reflect the growing importance of energy efficiency in real estate.

Contention

While proponents of SB4340 argue that it will lead to fairer and more sustainable housing markets, there may be concerns regarding its implementation. Critics might fear that the reliance on energy reports could complicate the appraisal process or inflate property values based on subjective assessments of energy efficiency. Additionally, the requirement for appraisers to consider energy characteristics could lead to disparities in valuation if not uniformly applied across different regions, creating potential inconsistencies in property assessments.