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AIA Report Examines Effectiveness, Challenges and Best Examples of Green Building Incentive Options
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For Immediate Release |
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Washington, D.C., June 17,
2008 — State and local governments are using a variety of
incentive-based techniques to encourage green building practices.
These efforts have encountered challenges including the cost of new
incentive programs, resource shortcomings and implementation
difficulties. In order to help communities overcome these
obstacles, the American Institute of Architects (AIA) commissioned
a report, Local Leaders in Sustainability – Green
Incentives, that defines and examines many types of incentive
programs, details the inherent barriers to success and highlights
best practice examples from around the country.
After evaluating a dozen different green building incentive
options, the report identified the most attractive incentives
as:
• Tax incentives – temporarily reduced taxes for
specific levels of green measures and certification
Local example, city tax exemption, Cincinnati, Ohio
A 100 percent tax exemption for LEED certified buildings, not to
exceed $500,000 over 15 years for new buildings and over 10 years
for renovations, is offered by the city. If the building receives
LEED Platinum certification, there is no maximum exemption.
• Density / floor area ratio bonuses – implement
height bonuses, floor area/ration bonuses, reductions in
landscaping requirements and inclusion of green roof space as
landscaping/open space in return for achieving levels of green
building ratings
Local example, green building incentive program, Arlington,
Virginia
This incentive awards commercial projects and private developments
that earn LEED certification additional density between .15 and .35
FAR and/or additional height of up to three stories (the higher the
certification level, the greater the density awarded).
Certification does not guarantee additional density – projects
are analyzed on a case-by-case basis. The Master Certificate of
Occupancy is awarded when the building is certified.
• Expedited permitting – streamline the permitting
process for building, plan and site permits on projects that
achieve a certain level of sustainability
Local example, Chicago Green Permit Program
This program reduces the permitting process for developers and
owners who build green to less than 30 business days and, in some
cases, less than 15 days. The length is determined by the number of
green building elements, the LEED certification level, and the
project complexity.
Click here for additional incentives and examples
included in the full report
“No matter what option a community uses, the best recipe for
success is a policy that is easy to implement and execute,”
said AIA vice president, Government and Community Relations, Paul
Mendelsohn. “Our intention is to help speed the process for
which green building practices become the norm. As we move towards
that possibility through incentives, local building department
resources become strained and progress is stalled. We recommend
state and/or federal subsidies as the best solution to help ease
the burden of stretched local officials and ensure effective green
building incentive programs.”
Additional recommendations include:
• Hire trained professionals in multiple departments who are
knowledgeable about sustainable design and green rating systems to
ensure expedited permitting and zone fee reductions can be
executed
• Conduct public education campaigns to better inform the
public and building owners on the environmental, economic and
public health benefits of green buildings
• Target a wide spectrum of builders, developers, owners and
operators with a mix of mutually beneficial incentive options
• Develop grant and loan programs to address needs of smaller
businesses
• Seek federal support for green building through grant
programs, district tax credits and small business loans
Last year, the AIA convened a Developers Roundtable to gather
recommendations from business leaders and their representatives in
the development community on the best types of green incentives.
This report is part of a follow up to that effort, and is
co-sponsored by Ceres, The Real Estate Roundtable, Fireman’s
Fund Insurance Company, A Member of Allianz Group and Sustainable
Enterprise Management. This will be followed up with AIA
legislative advocacy efforts to accelerate the adoption of state
and local green building programs. The AIA and the National
Association of Counties will also announce the findings of a report
on the number of counties nationwide that have instituted green
building programs in July.
About The American Institute of
Architects
For over 150 years, members of the American Institute of Architects
have worked with each other and their communities to create more
valuable, healthy, secure, and sustainable buildings and
cityscapes. By using sustainable design practices, materials, and
techniques, AIA architects are uniquely poised to provide the
leadership and guidance needed to provide solutions to address
climate change. AIA architects walk the walk on sustainable design.
Visit www.aia.org/walkthewalk.
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