Sunday, July 29, 2012

IMPORTANT CAP AND TRADE BILL WILL AFFECT LANDLORDS, HOMEOWNERS, AND YOUR ABILITY TO BUY AND BORROW MONEY


The Cap and Trade Bill is bad for the housing market and especially bad for landlords and tenants! Below are some questions I answered for a internationally known editor and photojournalist that is doing an article on this bill.

Essentially HR 2454 is a Cap and Trade Bill that will require you to retrofit all of your property and make it energy efficient to comply with revised building standards. Insulation, double pane windows, energy efficient Heat Pumps, storm windows and doors, etc. You will not be allowed to sell it if you don't retrofit it. It was introduced in 2009, then amended and re-introduced in 2012, where it passed the House and is currently before Committee in the Senate!!!


Since the vast majority of energy efficiency incentives for Va homeowners expired in 2011, how do you and your associates feel about the Cap and Trade Bill that will require E E updates to homes?

We strongly believe in our free market system as that is the foundation of this great country. It's not a wise idea to impose regulations upon it that will further harm the housing industry.

Supply and demand governs our economic system. In order to increase demand of items that are cost prohibitive, there has to be a payoff. Either the price of these energy efficient items decrease via federal and state tax breaks to companies that produce them or the government continues to offer rebates to those who purchase them. This will spur a higher production level which will in turn decrease costs to produce which will be passed on to the consumer in industries that are required to compete with each other to survive.

Would you urge our Senators to include amendments to the current Bill that will assist landlords in outfitting homes to comply with the new EE requirements?
How do you think it will affect our housing market in Roanoke since most of our homes are older - either historic or the glut built in the 60's and 70's?
In this economy, how do you think it will affect Landlords and those purchasing property for rentals?


Reducing our dependance on foreign oil should be a priority as it is a national security issue. Allowing drilling permits and development of new technology such as effectively using hydrogen and or ethanol alcohol etc will take care of that. Most of the energy used within our homes is from coal, natural gas and nuclear, all of which are from American companies that employ American people. Saving energy in these areas is also wise but should not be confused with the real objective of reducing our dependance on foreign oil.

The Cap and Trade bill requires that all new homes have to fall within the new energy standards in order to be sold. This will have a negative impact and stall the growth of the new home and building construction industry across the United States.

If this bill is enforced on existing properties it will completely crush the real estate market and the economy again along with it.

It is advisable that our senators and house members both on a federal and state level continue to offer tax rebate programs to assist property owners in making energy efficient products a reality so older homes can be economically retrofitted with energy efficient products. These tax rebates should extend to small business owners and landlords as well as these energy efficient products will directly result in trickle down economics and the end user low income tenant will reap the benefits.

How do you feel as a landlord, and one with multiple properties, that it will affect your tenants if you have to refit their rentals with Energy Efficient updates?

As a landlord, retrofitting multiple properties will require financing to do so. Financing that is difficult to come by with the currant market conditions. Those that are able to obtain financing will be forced to substantially raise rents across the board to cover the costs of the loan and it's interest. Those who can not obtain financing will be in violation of the law and will not have the financial means for compliance.

It is critical that there are amendments to what is currently proposed to protect landlords so the cost doesn't have to be passed along to tenants in an already bad economy.

Dallas Powell, VP REI of Virginia



2 comments:

Anonymous said...

Just think of the boom in sales before this bill goes into effect!

Dallas ® on August 7, 2012 at 2:29 PM said...

Yea, you're not kidding. One way to take advantage of this as well would be by purchasing these properties that people don't have the money to retrofit at pennies on the dollar as long as you have the funding to make it happen. Only would work with people that have equity. Those who don't will be screwed.

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