New building codes to fight climate change could make Massachusetts homes even more expensive
BOSTON - Housing affordability is at a crisis in Massachusetts, and the building industry is raising concerns that it could get worse due to new building codes designed to fight climate change.
The Home Builders and Remodelers Association of Massachusetts sponsored a study by MIT and Wentworth Institute of Technology to look at the ambitious new building codes and their impact on affordability. The results, they say, could mean thousands more people would be priced out of home ownership.
The idea behind the codes is to reverse the climate-damaging pollution created by homes and buildings. "Roughly 30% of our state emissions is coming from our existing buildings," explained Logan Malik of the Mass Climate Action Network.
To reduce that number, the state has a series of new building codes that require new construction to increase efficiency and move away from fossil fuels. The codes are grouped into three categories: the base code, which has been adopted by about 50 communities; the stretch code, which is a bit more ambitious and is in effect in 299 cities and towns; and the net zero code, which has the most stringent climate-saving building rules.
"This is a critical component of the state's climate strategy," Malik explained.
The MIT-Wentworth Study found that the net zero code, if widely adopted, could add up to $23,000 to the cost of an average home, leaving an additional 33,000 Massachusetts residents priced out of the market.
The Home Builders and Remodelers Association says it is in favor of green building, but those added costs have consequences. "It needs to be done with eyes open and the understanding that we don't want it to be one step forward for climate and two steps back for housing," said Rob Brennan, attorney for the builders.
The report offers a series of solutions including:
- Implementing land use changes that reduce carbon emissions and increase affordability. Many of the municipalities advocating for the more stringent energy code for homebuilding have extensive, large-lot, single-family land use regulations. Among other proposals, the Legislature could require that adoption of the specialized stretch energy code be combined with land use allowances, such as smaller minimum lot and unit sizes, smaller setbacks, taller height limits, greater density and more multifamily zoning.
- Streamlining permitting and reducing utility connection delays. One option would be to waive special permit requirements for multifamily projects that meet or exceed the local opt-in specialized stretch code that requires "net zero" residential building standards.
- Restructuring financial incentives and tax credits. Builders and homeowners alike would benefit from a streamlined application process for climate-related incentives that currently come through multiple agencies and programs.
- Increasing technical assistance for green building. Smaller builders are limited by a lack of training and technical assistance in meeting new "net zero" requirements. The state could invest further in workforce training and education focused on energy-efficient building techniques such as "passive house" construction that dramatically reduces energy use.
- Expanding financing sources. Several states have created "green banks" that leverage public funding to attract private investment in clean energy projects. Massachusetts could establish its own green bank to support housing developments that are energy-efficient and affordable while reducing the risk and equity needed for them to get off the ground.
- Supporting low-income renters. These renters may need additional support from the state's home energy assistance program as large multifamily buildings shift from centralized fossil-fuel burning furnaces to all-electric heating sources in individual units.
- Creating new tax classifications and exemptions. The Massachusetts Department of Revenue could establish a new property tax classification or a new exemption for highly energy-efficient housing. This could create a durable incentive that spurs production of more energy-efficient and affordable housing.
Even though only a few communities have so-far adopted the strict new codes, climate activists like Malik say that must change. "In order for us to hit our targets, the estimate is that we will need 90% of municipalities to opt into the new specialized highly-efficient (net zero) code."