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11/26/2016

Goodtoknow:Greenbuildingincentivestrategies|U.S.GreenBuildingCouncil

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Goodtoknow:Greenuilding
incentivestrategies
Pulishedon2Ma2014
PostedinLEED
Pulishedon2Ma2014
PostedinLEED

Oneofthemosteffectiveandmorepopularstrategiestoencouragegreenuildingistoincentivizethe
marketthroughfinancialorstructuralincentives.R
ewardingdevelopersorhomeownerswhopracticegreen
uildingtechniquesspursinnovationanddemandforgreenuildingtechnologies.

tructuralIncentives
Theseincentivesworkencouragingdeveloperstopracticegreenuildingthroughrewardssuchas
additionaldensitonusesorexpeditedpermittingprocesses.Atlowornocosttothemunicipalit,
uildinggreencanemadeamoreattractiveoptiontodevelopers.
xpeditedReview/PermittingProcesses:Reviewandpermittingprocessesvarwidelinlengthfrom

onejurisdictioninanother,insomemunicipalitiestheseprocessescantakeupto18months.Allowing
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11/26/2016

Goodtoknow:Greenbuildingincentivestrategies|U.S.GreenBuildingCouncil

developertosignificantlreducethedurationofthisprocess,ine
xchangeforcommittingtospecific
greenuildingstandards,canresultinsignificantcostsavingsforthedeveloper
.Thisallowsa
municipalittoofferasignificantincentivewithlittleornofinancialinvestment,sinceitonlrequiresa
shiftinpermittingpriorit.
DensitandHeightonuses: Likeexpeditedpermittingprocesses,densitonusesrequirelittleor

nofinancialinvestmentthemunicipalit
.ManmunicipalitiesallowforpercentageincreasesinFloor
AreaRatioorothermeasuresofdensitcontingentuponcertificationorproofofgreenuilding
practices.

FinancialIncentives
Financialincentivesaredirectincentivesintheformoftaxcreditsorgrantstodeveloperswhoproposeor
uildgreenuildings.However,manoftheseprogramsdonotdirectlimpactamunicipalitsfinances
sincetheproposeddevelopmentswilloftenincreasetheassessedpropertvalueinthecitandwhich
allowsthecittoofferfinancialincentiveswithoutanthreatofreducedrevenues.
TaxCredits:Manmunicipalitiesalreadoffertaxcreditsasameansofadvancingspecificpolic

agendas.Thesesameprinciplescaneappliedtohomesordevelopmentsthatachievecertaingreen
uildinggoals.
FeeReduction/Waiver:omemunicipalitiesthatchargefeesforpermitrevieworotherpermitting

processeshaveegunofferingreductionsorwaiversfordevelopersfollowinggreenuilding
standards.Mantimesthisincentivecanepairedwithastructuralincentivesuchase
xpedited
permitting.
Grants:Unliketheotherincentiveprogramsdiscussedaovegrantswillrequireafinancialinvestment

thecit.Theseprogramscanoftenefundedoneoftherevenuegeneratingstrategies
discussedearlier.Grantscanegiventohomeownersordeveloperstogotowardscertificationor
othercostsassociatedwithgreenuilding.
RevolvingL oanFunds: Tpicalltheseprogramsworkallocatingalargefundtoeusedforlow

interestloanstothoseseekingtouildorrenovatetogreenuildingstandards.Theseloansarethen
repaidtothefundataratelowerthantheoperationalcostsavingsfromtheimprovementsinorderto
lowertheupfrontcostsassociatedwithsomegreenuildingpracticesandencouragehomeowners
anddeveloperstouildgreen.Thefundiscontinuouslreplenishedtherepamentssothatitcan
eusedforadditionalloans.

OtherIncentives
TechnicalAssistance:Manmunicipalitiesarealsoofferingfreeplanningorcertificationtrainingand

assistance.Thisassistancemaallowforadeveloperwhoisunfamiliarwithgreenuildingpracticesto
uildgreen.
MarketingAssistance:OneimportantaspectofcertifingprojectsunderLDiseingaletouse

thisasamarketingtool.omemunicipalitieshaveeguntoofferfreemarketingassistancevia
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Goodtoknow:Greenbuildingincentivestrategies|U.S.GreenBuildingCouncil

signage,awards,wesites,pressreleases,andothermeansasanincentivefordeveloperstouildto
greenstandards.

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27weeks3dasago

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Itisquiteeneficial.

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