This post is the first of a three part series. Part II and III will cover Litigation Issues and Legal Contract Advice and are due for publication the second and third week of February,2010.

This is a guest post by Andrea Goldman, the principal in the Law Office of Andrea Goldman 305 Walnut Street, Newton, Massachusetts 02460. She is a litigator, mediator and arbitrator. Ms. Goldman focuses on construction, contractor/homeowner and business law. She is fluent in Spanish and French and has served international clients in their native language. For more information about Andrea Goldman visit www.andreagoldmanlaw.com or call (617) 467-3072.

Green housing is all the rage these days, and contractors and consumers are faced with a myriad of confusing options when it comes to “going green.” Despite the confusion, however, contractors should not ignore green construction methods and products because statistics show that green construction is on the rise even though the market for construction has been depressed. In addition to being challenged by how much there is to offer in environmental choices when contemplating a renovation or new construction project, contractors and homeowners need to protect themselves when buying green systems and materials.

First, a few statistics: The National Association of Home Builders recently released figures from a survey of multi-family builders and developers that stated that 74 percent of respondents said that their buyers and renters are willing to pay more for green amenities. The median additional amount that they’re willing to pay is just 2 percent.

• 89 percent of respondents (again, multi-family builders and developers, nationwide) said they are currently installing energy-efficient appliances and lighting in their projects.
• 79 percent are installing low-E windows.
• 64 percent are incorporating recycled materials.
• 50 percent are installing greater insulation than required by local code (that figure jumps to 70 percent among respondents based on the West Coast). (source: www.contractorheadlines.com/2008/09/green_building_statistics_dema.html)

On the residential side, McGraw-Hill Construction’s 2008 summary shows that 56% of green home purchasers earn less than $75,000 per year and that 29% earn less than $50,000.

(source : http://theleed.com/2009/04/the-statistics-are-bullish-on-green/)

Why should contractors and homeowners consider green options? There are:

• Lower operating costs—Homeowners receive less expensive utility bills because of energy and water efficiency measures.
• Increased comfort—Green homes have relatively even temperatures throughout the home, with fewer drafts and better humidity control.
• Improved environmental quality—builders pay extra attention to construction details that control moisture, choose materials that contain fewer chemicals, and design air exchange/filtration systems that can contribute to a healthier indoor environment.
• Enhanced durability and less maintenance—Green homes incorporate building materials and construction details that strive to increase the useful life of the individual components and the whole house. Longer lasting materials not only require fewer resources for replacement but also reduce maintenance and repair costs.
• Green homes have lawns that require less weeding and watering, building elements that require less maintenance, and more durable building components that reduce the time needed for upkeep.
• It is important to note that a builder can do only so much when it comes to how the home will perform. Homeowners play a big role in the house performance and, therefore, should be instructed on how to operate the green home as it was intended. Anecdotally, builders are adding green features even without advertising them.

There are currently many standards to choose from:

• LEED for homes
• NAHB Green Building Certification http://www.nahbgreen.org/Certification/homecertification.aspx
• Energy Star
• Proposed Standard 189, Standard for the Design of High-Performance Green Buildings Except Low-Rise Residential Buildings, is being developed by the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) standard.
• American National Standards Institute (ANSI). The resulting ANSI approved ICC-700-2008 National Green Building Standard defines green building for single and multifamily homes, residential remodeling projects and site development projects while still allowing for the flexibility required for regionally-appropriate best green practices. Similar to the NAHB Model Green Homebuilding Guidelines, a builder, remodeler or developer must incorporate a minimum number of features in the following areas: energy, water, and resource efficiency, lot and site development, indoor environmental quality, and home owner education. The more points accrued, the higher the score. The Standard, however, includes more mandatory items and suggests that higher thresholds be met in several categories. A new threshold - “Emerald” - was added to denote the highest achievement in residential green construction.

There is more risk in green construction because so many of the products and systems are relatively new. By following the recommendations in this article, builders and homeowners can protect themselves from potential disputes, failures, or poor performance. Going green is both environmentally and personally beneficial, but one needs to make choices that are both informed and profitable.

Resources :

1. NAHB-National Green Building Program http://www.nahbgreen.org/
2. LEED for Homes http://www.usgbc.org/DisplayPage.aspx?CMSPageID=147
3. ANSI Green Building Standard http://www.nahbgreen.org/Guidelines/ansistandard.aspx
4. ASHRAE Green Building Standard http://www.ashrae.org/pressroom/detail/16309
5. Green Real Estate Law Journal http://www.greenrealestatelaw.com/
6. Green Building Law Update http://www.greenbuildinglawupdate.com/
7. Green Building Law http://www.greenbuildinglawblog.com/

Part II of this series, Green Housing Legal Advice: Litigation Issues will be published next week.