Background for the development of Smart Regs
In order to meet the goals of the Climate Action Plan and the Kyoto goal, the City is recommending an update to Boulder’s Housing Code and Rental License Code to incorporate energy efficiency requirements, known as SmartRegs. These updates include adopting the International Property Maintenance Code (IPMC), as well as requiring property owners of existing residential rental buildings to meet specific energy-related guidelines as part of the Rental License Renewal process.
Specifically, residential rental property will either need to achieve a performance score of 120 on the RESNET Home Energy Rating System (HERS), or 100 points on the City’s identified list of prescriptive energy efficiency measures. While some properties may already meet these measures, those properties that are considered out of compliance will be required to pay for the necessary energy efficiency improvements “out of pocket.” This could impact the value of residential property, as well as place major financial burdens on the property owners.
Staff has offered two paths for compliance with the Ordinance. First is a HERS rating involving a HERS test that costs about $600 and certainly more for multi-family properties. It is a performance approach where a building must achieve a HERS rating of 120 – it must do whatever to achieve that rating. The second option is a prescriptive option under which 50 total points must be reached in the first license renewal cycle (4 years) and 100 total points must be reached in the second license renewal cycle (Years 4-8). The prescriptive option provides that properties must achieve an outcome of 100 pts which represents energy rating 20% below the 2004 International Energy Codes. In other words, all rental properties in Boulder are expected to be retrofitted to come up to with 20% of current energy codes.
The seven case studies conducted by the consultant for the city dy been retrofitted usually using federal or local grants). The city hired consultant were given a budget of $3000 and told to assess the properties to see how much work, what kind of work and cost of doing the work needed to meet the 100 pts. Requirements. They also developed the chart of the points allocated to each “upgrade”. Nothing like this has been done before.
I have attached the case studies reports so you can see the actual work done and the costs.
The costs range from about $750 per unit to $3200 per unit. We believe these numbers to be very low they do not include the increased costs of work due to the lead based certification requirements, they do not include costs of inspections, testing, rental licenses, permits etc. the costs could be as high as thousands of dollars, especially on older properties - there is no spending cap, you have to spend whatever it takes until you reach the 100 pts if you want to have a rental license. (by the way they are probably simultaneously raising the fines for not having a rental license.) I have attached the
draft report and included a note about the important pages to look at for those of you who want to see the original document.
I have also attached the
chart of the prescriptive points and how they have been allocated. You can look at the chart and see what kinds of “improvements” would be required. Think about your property – when it was built, when major appliances including water heaters and furnaces were replaced, etc and you’ll have some idea of the amount of expenditures you’d be required to make. There may be some properties that already meet the proposed standards, but most will be required to make very expensive retrofits.
The city has stretched out the program to two rental cycles meaning that you’d have to achieve the total 100 pts within 4-8 yrs. depending on when your rental license expires- in actuality for most members it really means 5 years (two rental cycles) . The staff considered this “extended” period of time in which to conform to be a “concession” to us!!!
THIS ISSUE IS MOVING VERY QUICKLY. This proposal will be heard by Planning Board next Thursday, April 22. WE NEED EVERY PROPERTY OWNER TO phone and send emails to Planning Board about this issue. I have listed the Planning Board contact information below.
Realize that residential rental properties are being hit first, next comes commercial and then ALL residential property in Boulder will be required to be brought up to some energy efficiency level. All of this at the time of the worst economy in decades and all for the purpose of reducing greenhouse gases!!!!!!!
This is all being driven by Council. You need to let Planning Board and soon Council know that this process is totally ridiculous – it is unfair and unreasonable to force existing properties to meet current codes, it is outrageous to impose these huge costs of rental property owners etc.
Realize that what residential property owners are being asked to pay is probably around $350 million dollars. They believe that this upgrades increase the value of our properties and therefore this is just an “investment” in our business. Let them know that you know better – this is an expense and in our soft market, it is an expense that cannot be recovered and you are not the one paying the utility bill and you aren’t the one living in the property determining how much energy is used.
It is now up to each of you to spread the word to everyone you know. We need a massive outpouring on this. You personally need to phone and email every Planning Board member by this Wednesday and you need to show up at Planning Board by 6:00 on Thursday. (second floor of the Municipal Bldg at Broadway and Canyon).
I am enclosing a list of contact information for the 7 Planning Board members and I am including a list of Talking Points.
Council is expected to hear this May 4—but a negative recommendation from Planning Board would be very helpful in encouraging Council to drop this idea.
It’s really up to each of you now to step up and do your part to stop this – your money and your investments are on the line.
Here’s an added note from BARHA President Dan Estey
This 32 page document is a summary of all entire rental license re-write but the section most relevant to energy requirements is on pages 14-30:
Attachment "I" is the
proposed "smart points" compliance sheet. In the staff proposal you would need to achieve a of these points over two rental license cycles. This gives you a taste of what we are looking at if this passes as proposed. The sheet is very obtuse and written in technical jargon and is tough to comprehend but it underscores and the complexity and magnitude of the requirements.
Case Study
- This would be "extra credit" reading. It provides the basis and rationale for the staff recommendations. Interestingly they are going to regulate almost 20,000 units and putting a considerable amount of weight on just 7 case studies.
Proposed Talking Points about the proposal that you may find of help.
Here are the "Cliff Notes"
The staff memo reads like a propaganda piece in favor of this and does not recognize the massive financial burden it places on property owners. We are working with staff to make revisions to this prior to presentation to council.
The recommendations are for required retrofits of existing buildings (built prior to 2001) for them to comply within 20% of 2004 International Energy Efficiency Code. This is much like requiring a Model A Ford to meet today’s automobile standards!!
At present the proposal estimates a cost of $750 - $3200 per unit for compliance. This does not account for additional expenses that may be imposed by new lead paint mandates from the EPA effective April 22nd, permit fees, license fees and inspection fees.
It’s really up to each of you now to step up and do your part to stop this – your money and your investments are on the line.
Planning Board Members ( you can both call and send an email)
1. William Holicky 2. Danica Powell
1370 Redwood Ave., 80304 2255 Kincaid Pl. 80304
(303) 546-0798 (303) 579-6221
3. Mary Young 4. Elise Jones (Chairman, I think)
1420 Alpine Ave., 80304 716 Marine St. 80302
(303) 447-9378 (303) 402-0849
5. Tim Plass 6. Andrew Shoemaker
655 Maxwell Ave., 80304 1064 10th St. 80302
(303) 443-4503, (720) 299-4518 (303) 417-9610
7. Willa Johnson
1032 Pine St. #4 80302
(303) 818-0096