Energy efficiency has many benefits that are often overlooked as a result of the initial investment in upgraded systems. At the early stages of a multifamily development project, especially in the low-income housing sector, developers try and avoid extra costs at all costs.
We believe that the benefits of energy efficiency in affordable housing developments outweigh the cons. In this article, we will discuss the advantages of combining affordable housing projects and energy efficient designs for both the property owner and the development organization.
The investment
We would be lying if we said that the investments were the same for energy efficient systems and traditional systems. Energy efficient systems are more expensive.
However, as a result of California’s energy code and incentive programs, the resulting tax breaks and subsidies can make it worth your while when tallied alongside the following benefits.
Property value
Energy efficient systems bring down the cost of maintenance substantially for the property owner. The property becomes less expensive to run, maintain, and repair.
This adds value to the property for several reasons:
- The tenants are more satisfied with the property.
- The property owners pay less to manage the property. The lifetime value of the property is increased as the lifetime maintenance costs are diminished.
- The quality of the property increases the property value.
- The resale value is increased as the product remains competitive on the market.
Brand reflection
A development organization’s number one brand communication channel are their developments. As a result, increasing the quality of your products by adding energy efficient systems is directly linked to enhancing your brand.
The flip side of this is brand protection. Adding quality to a product shows that the number one priority is not the maximum profit yield available, but to create a high-quality project while maintaining a certain profit margin. This is very important as it also ensures that the product retains a level of standards.
