Form 820.05*
Client File #: Appraisal File #:

Residential Green and Energy Efficient Addendum
Client:
Subject Property:
City:
State:
Zip:
Additional resources to aid in the valuation of green properties and the completion of this form can be found at
http://www.appraisalinstitute.org/education/green_energy_addendum.aspx

The appraiser hereby certifies that the information provided within this addendum:

  • has been considered in the appraiser’s development of the appraisal of the subject property only for the client and intended user(s) identified in the appraisal report and only for the intended use stated in the report.
  • is not provided by the appraiser for any other purpose and should not be relied upon by parties other than those identified by the appraiser as the client or intended user(s) in the report.
  • is the result of the appraiser’s routine inspection of and inquiries about the subject property’s green and energy efficient features. Extraordinary assumption: Data provided herein is assumed to be accurate and if found to be in error could alter the appraiser’s opinions or conclusions.
  • is not made as a representation or as a warranty as to the efficiency, quality, function, operability, reliability or cost savings of the reported items or of the subject property in general, and this addendum should not be relied upon for such assessments.

Green Building: The practice of creating structures and using processes that are environmentally responsible and resource-efficient throughout a building’s lifecycle from siting to design, construction, operation, maintenance, renovation, and deconstruction. This practice expands and complements the classic building design concerns of economy, utility, durability, and comfort (US EPA). High Performance building and green building are often used interchangeably.

Six Elements of Green Building: A green building has attributes that fall into the six elements of green building known as (1) site, (2) water, (3) energy, (4) materials, (5) indoor environmental quality, and (6) maintenance and operation. The energy and water elements are the most measurable elements of green or high performance housing. Appraisers need savings amounts to develop an income approach to support energy efficient contributory value.
THIRD-PARTY VERIFICATIONS (See types defined in glossary).
The following verified items are considered within the appraisal analysis of the subject property:
Green Certification

Certifications attest that the home meets certain minimum thresholds.

 Environmental Protection Agency (EPA):
Energy Department (DOE):
Home Innovation Research Labs NGBS Home Remodel:
Home Innovation Research Labs NGBS New Home:
Living Building Challenge (LBC):
Passivhaus Standard:
Passive House Institute US:
USGBC LEED:
Other:
Date Verified:
Green Certification Version:
Organization URL:
ABOVE VALID ONLY IF CHECKED:
Energy Label

Labels disclose the state of the home’s energy assets.

 RESNET’s HERS
Rating (0 to 150):
Estimated energy savings for this home: $ /year ¢kWh rate dated
Energy Savings includes electricity, heating & Cooling.
Score below 100 indicates energy costs are expected to be lower than average code-built home. HERS Index Report occupancy estimates energy cost based on number of bedrooms plus one. Only a "confirmed rating" is diagnostically tested.
DOE’s Home Energy Score
Score (1 to 10):
Estimated energy savings for this home: $ /year ¢kWh rate dated
Energy Savings includes electricity, heating & Cooling.
Score above five indicates energy costs are expected to be lower than average local home. Home Energy Score estimates energy cost based on state average energy rates and the home's energy features.
Other Energy Score:
Range ( to ):
Estimated energy savings: $ /year ¢kWh rate dated
Describe energy label system:
Date Verified:
Score or Rating Version:
Organization URL:
ABOVE VALID ONLY IF CHECKED:
Verified Energy Improvements

Only include improvements with verified documentation.

 Explain energy-related improvements:
Cost of improvements: $
Date Verified:
Certificate of Efficiency Improvements Version:
Organization URL:
ABOVE VALID ONLY IF CHECKED:
Completed by:
Title:
Date:
Client: Client File #:
Subject Property: Appraisal File #:
EFFICIENCY FEATURES (Water, Energy, and Environmental. See types defined in glossary).
The following items are considered within the appraisal analysis of the subject property:
Insulation
R-Value Wall Ceiling
Building Envelope
Envelope Tightness: Unit: CFM25 CFM50 ACH50 ACH natural
Instructions: Insert the rating as a number that could be 0.5 to 7ACH50 or higher. The lower the number, the more air tight the envelope. Building Codes for area show maximum Envelope Tightness allowed based on the climate zone. Not all areas have adopted a building code. http://bcap-energy.org/
Windows
Day Lighting
(% Of lighting LEDs):
ENERGY STAR® Appliances
ENERGY STAR®:
Energy Source:
Note: ENERGY STAR® appliances do not result in an ENERGY STAR® Home.
Water Heater
Size:
gallons
HVAC & Related Equipment
Describe in comments area.
Thermostat/Controllers?
SEER: Efficiency Rating: Programmable Thermostat?
Efficiency Rating:
%
COP:
Auxiliary heat source?
AFUE*
%
HSPF:
Radiant Floor Heat?
*Annual Fuel-Utilization Efficiency
SEER:
Geothermal?
EER:
Electric Vehicle Ready? (car charger)
Indoor Environmental Quality
Water Efficiency
Cistern size: gallons
Location of cistern:
Utility Costs
Annual Utility Cost: $
based on:
to
full year.
/year,
Includes (check all that apply):
# Of Occupants:
Comments
Include source for information provided in this section.
If a property is built green but not formally certified, it still deserves proper description and analysis to value the features. The market analysis is of the structure’s physical, economic, and locational attributes and not an analysis of its label alone. Provide additional information that illustrates how this property exceeds local building code. This document is intended for new construction or existing homes that have been retrofit to include higher energy or green features.
Completed by:
Title:
Date:
The objective of this Addendum is to standardize the communication of the high performing features of residential properties. Identifying the features not found on the appraisal form provides a basis for comparable selection and analysis of the features. Builders, contractors, homeowners, and third party verifiers are encouraged to complete this Addendum and present to appraisers, agents, lenders, and homeowners. Complete the pages that apply to the property appraised and provide to appraiser prior to the completion of an appraisal. Provide the Addendum to the lender at the time of loan application to assist them in understanding the property type so an appraiser with sufficient knowledge of this property type will be engaged to provide an appraisal to meet secondary mortgage market guidelines.
Client: Client File #:
Subject Property: Appraisal File #:
EFFICIENCY FEATURES (Water, Energy, and Environmental. See types defined in glossary).
The following items are considered within the appraisal analysis of the subject property:
Solar Photovoltaic (Electric) System
Type of Ownership Array #1 Array #2 (if applicable)
If solar loan has UCC Filing, it is considered personal property and should not be included in market value.
Panel Specifications
System Size: kW (1kW = 1000 Watts)
Age of Panels: years
Energy Production: kWh
Source of Energy Production Estimate:
Manufacturer:
Warranty on Panels: years
System Size: kW (1kW = 1000 Watts)
Age of Panels: years
Energy Production: kWh
Source of Energy Production Estimate:
Manufacturer:
Warranty on Panels: years
Array Placement
Affects energy production.
*Orientation
Location (roof, ground, etc.):
Tilt / Slope:
*Azimuth:
Location (roof, ground, etc.):
Tilt / Slope:
Azimuth:
Orientation (direction panels face):
Inverter Specifications
Number of Inverters per Array:
Age: years
Wattage: watts
Manufacturer:
Warranty Term: years
Number of Inverters per Array:
Age: years
Wattage: watts
Manufacturer:
Warranty Term: years
Energy Storing Batteries Battery Type:
Manufacturer: Storage Capacity: kWh
Warranty Term: Battery age: years
Name of Utility Company: Charge / kWh From Utility
$ /Kwh
Solar Thermal Water Heating System
Type of System
Active:    
Passive:    
Storage Tank Size
Gallons:
Collactor Type
System Age
Years:
Back-Up System
Warranty Term
Solar Energy Factor (SEF) *Rating ranges 1 to 11. Higher number is more efficient. Manufacturer
Comments
Discuss incentives available for new panels, condition of current panels, and any maintenance issues. If leased, provide the lease terms.
Discuss source of information and define other renewable energy sources, such as wind, hydropower, biomass power, etc.
Note: Leased Solar PV Systems and Power Purchase Agreements should not be included in the value of the real property as these systems generally are considered personal property. If a system is a lease or a PPA the terms must be provided to the appraiser for analysis. Appraisers must analyze the effect any of the terms of the lease or PPA have on the price buyers are willing to pay for the property.
Completed by:
Title:
Date:
Client: Client File #:
Subject Property: Appraisal File #:
Location - Site
The following items are considered within the appraisal analysis of the subject property:
Walk Score
Score:
Source:
Public Transportation
Blocks
Blocks
Blocks
Site
Orientation (front faces):
Landscaping:
Comments
Incentives - Amount of Incentive and Terms
The following items are considered within the appraised value of the subject property and based on effective date of value.
Federal
State
Local
Comments
Incentives offset cost and should be reported and described in the cost approach section of the report. Clearly identify the incentives that offset the gross cost of construction to meet appraisal standards. Incentives are typically not a sales concession in sales comparison approach since they do not transfer with the property and are not paid by the seller. Incentives are typically for a specified period and only those available as of the date of value should be addressed in the appraisal process. Incentives may be available to offset repairs or deferred maintenance items as well. Incentives, rebates, and tax credits for most U.S. properties can be found at www.dsireusa.org
Completed by:
Title:
Date:

The objective of this Addendum is to standardize the communication of the high performing features of residential prperties. Identifying the features not found on the appraisal form provides a basis for comparable selection and analysis of the features.

Client: Client File #:
Subject Property: Appraisal File #:

Residential Green and Energy Efficient Addendum Additional Resources

Appraised Value and Energy Efficiency: Getting it Right. This document provides links to resources in understanding the secondary mortgage market guidelines on appraisals of energy efficient and green features. It addresses the following:

https://www.appraisalinstitute.org/assets/1/29/AI-BCAP_Flyer.pdf

PV Value®. PV Value® is a discounted cash flow (Income Capitalization Approach) to valuing energy produced. The solar PV system inputs on this form are necessary to use this program. www.pvvalue.com.

Residential Green Valuation Tools. A textbook resource for completing the AI Residential Green and Energy Efficient Addendum is available. It can be purchased at the following website: http://www.appraisalinstitute.org/residential-green-valuation-tools/

Glossary

ASHRAE 700 / ICC National Green Building Standard (NGBS): An ANSI-approved residential green building standard developed by the National Association of Home Builders (NAHB) and the International Code Council (ICC). It is applicable to single and multifamily projects, renovations and additions and residential land development. To comply, all buildings must incorporate sustainable lot development techniques and address energy, water & material resource efficiency and indoor environmental quality. Also, all owners must be educated about building operation and maintenance.

https://www.nahb.org/en/research/nahb-priorities/green-building-remodeling-and-development/icc-700-national-green-building-standard.aspx

Building Envelope: The building envelope is everything that separates the building’s interior from the exterior. This includes the foundation, exterior walls, roof, doors and windows. The envelope rating should be compared to the local building code requirements for this rating to identify a structure that exceeds the building code.

Energy Recovery Ventilation System (ERV) or Heat Recovery Ventilators (HRV): These systems provide fresh air without wasting all the energy already used to heat the indoor air. By recovering sensible (heat) or latent (moisture) energy from the stale indoor air, they offer fresh air ventilation with reduced energy loss.

ENERGY STAR Certified New Homes: EPA’s ENERGY STAR certified homes are independently verified to be at least 15 percent more efficient than code-built homes, and include additional energy efficiency measures that can deliver savings of up to 30 percent compared to standard new homes. More than just a collection of ENERGY STAR products, an ENERGY STAR certified home includes a comprehensive package of energy efficiency systems and features that work together to deliver better performance, including a High-Efficiency Heating & Cooling System, a Complete Thermal Enclosure System; a Water Protection System; and Efficient Lighting & Appliances. www.energystar.gov/newhomes

ENERGY STAR Products: Behind each blue label is a product, building, or home that is independently certified to use less energy and cause fewer of the emissions that contribute to climate change. Today, ENERGY STAR is the most widely recognized symbol for energy efficiency in the world. In order to earn the label, ENERGY STAR products must be third-party certified based on testing in EPA-recognized laboratories. In addition to up-front testing, a percentage of all ENERGY STAR products are subject to "off–the–shelf" verification testing each year. The goal of this testing is to ensure that changes or variations in the manufacturing process do not undermine a product's qualification with ENERGY STAR requirements. https://www.energystar.gov/about/origins_mission

Geothermal: A geothermal heat pump uses the constant below ground temperature of soil or water to heat and cool your home. http://energy.gov/energysaver/articles/geothermal-heat-pumps

HERS Index: The Home Energy Rating System (HERS) Index is an industry standard by which a home’s energy efficiency is measured. It’s also the nationally recognized system for inspecting and calculating a home’s energy performance. A qualified third party certifier assesses the house based on its physical characteristics. The energy estimates from this assessment may vary depending on the lifestyle of the occupants, increasing utility expenses, and changes in the maintenance or characteristics of the energy features. There are three rating types: sampling rating, projected rating, and confirmed rating. A Sampling Rating is an application of the Home Energy Rating process whereby fewer than 100% of a builder’s new homes are randomly inspected and tested to evaluate compliance with a set of threshold specifications. A Projected Rating: A Rating Type that encompasses one individual dwelling or dwelling unit and is conducted in accordance with Section 5.1.4.3.1 through 5.1.4.3.5 of the ANSI/RESNET/ICC Standard 301. A Confirmed Rating is a rating type that encompasses one individual dwelling or dwelling unit and is conducted in accordance with Sections 5.1.4.1.1 through 5.1.4.1.3. More information: http://www.resnet.us/hers-index. The ANSI standard utilized in the HERS Index is posted at https://codes.iccsafe.org/public/chapter/content/7324/.

Home Energy Score (HES): The Home Energy Score, developed and managed by the U.S. Department of Energy (DOE), is a national system that allows homes to receive an energy rating, like the MPG rating available for cars. The Home Energy Score uses a 10-point scale to reflect how much energy a home is expected to use under standard operating conditions. The Home Energy Score uses a standard calculation method and considers the home’s structure and envelope (walls, windows, foundation) and its heating, cooling, and hot water systems. Only Assessors who pass DOE’s Simulation Training can provide the Home Energy Score. www.HomeEnergyScore.gov

Indoor airPLUS: EPA’s Indoor airPLUS is a voluntary EPA label for new homes that integrate a set of construction practices and technologies to reduce indoor air pollutants and improve the indoor air quality in a new home beyond minimum code requirements. It is only available to homes that first meet ENERGY STAR® Certified Home requirements. Http://www.epa.gov/indoorairplus

LEED: Leadership in Energy and Environmental Design is a green certification program created by the U.S. Green Building Council (USGBC). As an internationally recognized mark of excellence, LEED provides building owners and operators with a framework for identifying and implementing practical and measurable green building design, construction, operations and maintenance solutions. http://www.usgbc.org/DisplayPage.aspx?CMSPageID=1988

Living Building Challenge: Created by the Living Future Institute, the Living Building Challenge is the world’s most rigorous proven performance standard for buildings. People can use the regenerative design framework to create spaces that, like a flower, give more than they take. Living Building Challenge certification requires actual rather than modeled performance. Therefore, projects must be operational for at least twelve consecutive months prior to evaluation. https://living-future.org/lbc/basics/

Low E: “Low emissivity” indicates a coating is added to the glass surface. The coating allows visible light to pass through the glass while stopping radiant heat energy from entering the building by passing through the glass. Approximately 40% of the sun’s harmful ultra violet rays are blocked and insulation enhanced. https://energy.gov/energysaver/energy-efficient-windows

NGBS Small Project Remodel: Run by the Home Innovation Research Labs, this program certifies whole house and small project remodels as energy efficient. Unlike the Whole–House Remodel, the Small Project certification is prescriptive. Chapter 12 of the National Green Building Standard includes a list of mandatory practices, related to materials use, sustainable products, energy efficiency, and indoor environmental quality. A Home Innovation Accredited NGBS Green Verifier gives a final inspection to verify Small Project certification. During inspection, the Verifier will ensure the applicable practices have been met.

http://www.homeinnovation.com/services/certification/green_homes/remodeling_certification/remodel_home_certification_process

NGBS Whole Home Remodel: Run by the Home Innovation Research Labs, this program certifies whole house and small project remodels as energy efficient. Certification of a whole-building remodel requires demonstrating that there has been a minimum of a 15% reduction in energy consumption and at least a 20% reduction in water consumption over the pre-remodel condition. There are some mandatory practices that must be met. A minimum number of points must be obtained from practices related to Lot Design, Resource Efficiency, Indoor Environmental Quality, and Homeowner Education.

http://www.homeinnovation.com/services/certification/green_homes/remodeling_certification/remodel_home_certification_process

Passivhaus Standard: German standard for low energy homes that began in the 1980s. Passivhaus is a rigorous, voluntary standard for energy efficiency in a building, reducing its ecological footprint. It results in ultra-low energy buildings that require little energy for space heating or cooling. The Passive House Institute (PHI) is an independent research institute that has played an especially crucial role in the development of the Passive House concept - the only internationally recognized, performance-based energy standard in construction. http://passiv.de/en/

Passive House Institute US (PHIUS): Buildings designed and built to the PHIUS+ 2015 Passive Building Standard consume 86% less energy for heating and 46% less energy for cooling (depending on climate zone and building type) when compared to a codecompliant building. PHIUS+ 2015 is the first and only passive building standard based upon climate-specific comfort and performance criteria aimed at presenting a cost-optimized solution to achieving the most durable, resilient, and energy-efficient building possible for a specific location. http://www.phius.org/home-page

Passive Solar: Passive solar is technology for using sunlight to light and heat buildings with no circulating fluid or energy conversion system. http://rredc.nrel.gov/solar/glossary. A complete passive solar building design has the following five elements: (1) aperture (collector) (2) absorber (3) thermal mass (4) distribution (5) control. http://www.nrel.gov/docs/fy01osti/27954.pdf

Rain Garden: A rain garden is a depressed area in the landscape that collects rain water from a roof, driveway or street and allows it to soak into the ground. Planted with grasses and flowering perennials, rain gardens can be a cost effective and beautiful way to reduce runoff from your property. Rain gardens can also help filter out pollutants in runoff and provide food and shelter for butterflies, songbirds and other wildlife. More complex rain gardens with drainage systems and amended soils are referred to as bio-retention. https://www.epa.gov/soakuptherain/rain-gardens

SEER: Seasonal energy efficiency ratio - The higher the SEER rating, the more energy efficient the equipment is. A higher SEER can result in lower energy costs. https://energystar.zendesk.com/hc/en-us/articles/212111387-What-is-SEER-EER-HSPF

Smart House: A smart house is a home that has highly advanced, automated systems to control and monitor any function of a house – lighting, temperature control, multi-media, security, window and door operations, air quality, or any other task of necessity or comfort performed by a home’s resident. http://architecture.about.com/od/buildyourhous1/g/smarthouse.htm

Water Heaters: Types are described here: http://energy.gov/energysaver/articles/solar-water-heaters.

WaterSense: EPA released its Final Version 1.1 WaterSense New Home Specification. This specification will be effective January 1, 2013 and establishes the criteria for new homes labeled under the WaterSense program and is applicable to newly constructed single-family and multi-family homes. http://www.epa.gov/watersense/new_homes/homes_final.html

Whole Building Ventilation System: A whole building ventilation system assists in a controlled movement of air in tight envelope construction. Whole building ventilation equipment is often a part of the forced air heating or cooling systems. There are various methods of providing whole home ventilation including a heat recovery ventilator (HRV) or an energy recovery ventilator (ERV). Four primary types of systems here: https://energy.gov/energysaver/whole-house-ventilation

Zero Energy Ready Home (ZERH): To qualify as a DOE Zero Energy Ready Home, a home shall meet certain minimum requirements, be verified and field-tested in accordance with HERS Standards by an approved verifier, and meet all applicable codes. Builders may meet the requirements of either the Performance Path or the Prescriptive path to qualify a home. http://energy.gov/eere/buildings/zero-energy-ready-home