Austin Mayor Will Wynn's Energy Plan Raises Concerns

Mayor Will Wynn announced Austin's long-term energy plan last week. According to News8Austin, "Austin Mayor Will Wynn wants the city to lead the country when it comes to global warming issues. He and council members laid out their plans on Wednesday.

Wynn called for the elimination of carbon dioxide from all city activities by 2020. He also wants all city buildings to be powered by renewable energy by 2012. By 2015, the plan calls for all new homes to be 100 percent energy efficient. Wynn also wants all other homes to have energy-efficient improvements before they're sold."

While this is a great step forward in some respects, many residents are concerned about having to upgrade all homes before they are sold. A secondary concern is that, according to engineers, 100% energy efficiency does not exist. The laws of thermodynamics can't be broken by our own mayor or even the president. We'd need to know who defines 100% energy efficiency and how homeowners can determine if their house meets those standards.

We were told that Mayor Wynn will introduce details of his plan during the Austin city council meeting this Thursday, February 15th. For now, we will keep our ears open for details and answers our questions. We hope Mayor Wynn has advisors who understand how his long-term energy plan can impact home sales in our area. There are many questions that need to be answered.

ISSUE#1: Who will enforce the guidelines of the energy plan?

According to current reports, home inspectors will certify whether homes meet the new energy standards.

1. Home inspections are not required, especially on cash transactions, so wouldn't we have to use city inspectors? If city inspectors are used, we need plans to prevent backlog to avoid delays in closings.
2. If the city plans to use licensed inspectors as "police" for this new policy, the state and/or city will have to introduce additional education criteria and training.
3. Who is at fault if the home inspector mistakenly certifies the property, but we later find that it's not up to the new code? What are the penalties?

ISSUE#2: Will these new requirements cause delays?

1. What happens if a seller is in foreclosure or needs to sell quickly? If these upgrades have to be completed before the final settlement, sellers who can't afford to wait are going to be in trouble.
2. How will this affect the bottom-line on new homes developments and pricing? Builders and developers are saying the new requirements and additional inspection process can increase their timelines by 6-7 months.
   

ISSUE#3: How much will these upgrades cost?

1. What if the home is worth less than the cost of upgrades?  If someone wants to "keep the bones" of the house, but it's not worth upgrading, will they be forced to tear it down instead?
2. If a seller cannot afford the upgrades, the buyer will need to upgrade the home. What programs will the city have for cases where the buyer cannot afford upgrades either?
3. What about buyers of foreclosed properties?  Does the City of Austin have the juridisction to force HUD, banks, and other foreclosing entities to follow their energy guidelines? It's unlawful to force buyers to pay for upgrades on properties that they don't own yet, so that's not a good solution.

Here's our solution: Austin can PROVIDE INCENTIVES for residential home buyers, sellers, and builders who follow the proposed energy guidelines. Austin currently gives incentive packages and tax breaks to large corporations, so let's do it for the little guys. This way, if someone wants to incur the additional expense, it's by choice and they are rewarded for their efforts. This creates good will, a more green Austin, and avoids some of the bad situations that I mentioned above.

Read the related news story: Wynn announces city’s long-term energy plan. Comment today and let us know what you think!

UPDATE: 2/14/07. Download the Austin Climate Protection plan from KXAN's website. The Austin Statesman also reported on concerns from the Austin Board of REALTORS, who serve as buyer and seller advocates in real estate.

The PLAN IS SCHEDULED FOR ADOPTION this Thurday!

Comments

[Jonas]

"Mayor Wynn will introduce details of his plan during the Austin city council meeting this Thursday, February 15th...Builders and developers are saying the new requirements and additional inspection process can increase their timelines by 6-7 months"

If details are not yet known, how do builders know that timelines will be increased by 6-7 months? This is simply hyperbole, isn't it?

[Dee Copeland]

Hi Jonas,

According to current details, which some have access to, builders were estimating increases in timeline. It's one of the questions I have about the plan, so would like to validate if it's true.