Third-Party Inspections for Green Certifications Save Money in the Long Run

Third-party inspections are proving to be valuable in the redevelopment or new construction of LIHTC properties. A study from SK Collaborative that was published on the National Association of Home Builders website reviewed the third-party inspections of 10 renovated LIHTC properties in Georgia. Half of the properties reviewed by the study were seeking a green certification, which generally requires a third-party verification for certification mid-way through the construction process and again at completion. The properties were seeking certification through NGBS, Enterprise Green Communities and EarthCraft Multifamily.

Of the properties that elected to pursue a green certification, seven failures were found at the mid-construction inspection and six failures at the final inspection. The majority of these failures were due to overlooked building code mistakes during the city inspections. Many building codes overlap with International Residential Code, International Fire Code and International Energy Conservation Code. Other failures were due to incomplete ductwork or ductwork leakage, sedimentation and erosion control requirements.

The study found that third-party inspections are able to help to eliminate long-term issues. Compared to the projects in the study that were not seeking green certifications, green-certified projects had more inspection failures, specifically with basic energy code requirements like insulation and air sealing.

According to the National Association of Home Builders, if these mistakes had not been corrected through the third-party inspection model, it would have resulted in higher utility bills, maintenance problems and resident complaints.

While this specific survey looked at green certification in LIHTC properties, green building overall is growing in popularity. The pandemic has made green building a value proposition for struggling business owners that are looking to curb costs. That means making green buildings available to a larger swath of the population, according to a recent interview with Aaron Bernstein, co-director of Harvard’s Center for Climate, Health and the Global Environment. The pandemic could encourage the building community to be more receptive to green building enhancements that improve the bottom line.

But it isn’t only about the bottom line. Health and safety concerns are also growing as a result of the pandemic, and green-building features can help to create safer environments. Harvard University’s T.H. Chan School of Public Health found that people in cities with slightly higher levels of particulate matter also had higher rates of death from COVID-19. Green buildings help to reduce air pollution and properties near public transit help to reduce greenhouse gases. These features will also continue to drive demand for green building.