The Neighborhood Housing Service of Toledo: Linking Energy Efficiency and Affordability

Ohio's first ENERGY STAR® home.

Lowering utility bills by 25 percent would enable an additional two million Americans to become homeowners, according to the Alliance to Save Energy. With this affordable housing goal in mind, the Neighborhood Housing Service of Toledo (NHST) and the U.S. Department of Energy (DOE) are creating ENERGY STAR® rated homes that are 30 percent more energy efficient than the law requires. The Neighborhood Reinvestment Corporation recognized NHST's work in this area as a best practice in its 2001 Winning Strategies: Best Practices in the Work of Homeownership Promotion.

Home Energy Efficiency Can Increase Appraisal Values

Making a home energy efficient increases the resident's comfort, improves indoor air quality, reduces consumption of natural resources, reduces pollution, improves safety, and lowers utility bills and maintenance costs. Lenders are offering low interest loans and reduced closing costs on energy-efficient homes, which are viewed as presenting a lower risk. Appraisers also recognize the value of energy-efficient homes. A study published in the Appraisers Journal shows that for every dollar saved as a result of energy efficiency, the appraised value of a home increases by $29. These benefits are especially valuable to homebuyers of limited means.

Energy Efficiency and Affordability Are Not Mutually Exclusive

DOE and the Building Science Corporation helped NHST design the first ENERGY STAR® modular home in the state of Ohio. The home is 1,700 square feet and includes a fully insulated basement, four bedrooms, and two and a half baths. NHST used a variety of alternative building materials and construction techniques to ensure affordability. For instance, the use of high-performance window upgrades and additional insulation enabled builders to downsize the heating system and shorten the duct runs, with no net increase in construction costs. Energy-efficient appliances and lighting were also incorporated into the design. The cost to the homeowner of natural gas heat and hot water for one year is estimated at $250 or less. NHST won significant recognition for the project, including the Ohio Governor's Award for Excellence in Energy Efficiency in 2000.

About NHST

NHST promotes energy efficiency in new home construction and as part of its community revitalization efforts. NHST performs approximately 15 energy ratings each month for homeowners and builders and also works with two area builders to redesign home plans to include energy efficiency measures. The organization provides weatherization assistance to low-income families through the state-funded Home Weatherization Assistance Program. The program includes heating-unit repair or replacement, insulation installation, air-leakage sealing, and appliance replacement. Says Nancy Dey of NHST, "Energy-efficiency is critical to our organization's mission of increasing homeownership; the lower a family's energy costs, the more likely it can maintain its mortgage payments."

For more information, contact: Nancy Dey, Neighborhood Housing Service of Toledo, (419) 691-2900