By Ned Randolph

The U.S. Green Building Council’s Leadership in Energy and Environmental Design certification has become the pre-eminent standard for green projects since it was established in 2000 by a group of commercial architects, developers and other stakeholders to foster sustainable building methods.

But its residential counterpart — LEED for Homes — is a relative newcomer. The 20-month-old, San Diego-based program has received applications for certification for 16,000 units, including 3,000 in California.

“It’s got a relatively short history, but pretty significant momentum,” said Nate Kredich, the Green Building Council’s vice president of residential market development. “When we look at registrations as compared to housing starts, we figure we’ve got between 1 and 2 percent market share.”

LEED for Homes has certified 3,000 units, including the 42-unit Los Vecinos Apartments in Chula Vista, a $17.6 million affordable housing project by Wakeland Housing and Development Corp.

Kredich says, on average, a LEED-certified home costs 2 percent to 5 percent more.

Some of that can be recouped through long-term savings on utility bills from efficient insulation and plumbing systems. And as more developers embrace LEED standards, their costs will fall through economies of scale, Kredich says.

“We have a production home builder in Las Vegas building to LEED Platinum; his premium is $500 a home. He knows what he’s doing,” Kredich said. “If you’re building on a bigger scale, you can spread out across units.”

Brand Equity

San Diego home builder Tom Erickson says having the LEED brand on a home improves its resale value down the road.

The president of Hulton Development Inc. is building a LEED-registered home in Del Mar and is splitting the costs with architect Heather Johnston to pay for the additional paperwork and due diligence required by the LEED certification process.

“I think it’s a tremendous selling point,” said Erickson. “I truly do believe this process creates a valuable commodity. If people fully understand it, they will invest the money to LEED certify their home because their property — even if not appraised for more — will certainly be worth more to the owners due to a healthier indoor environment and increased energy efficiencies.”

In some instances, higher material costs can be offset by lower labor costs, he says. Many of the sustainable materials are purchased prefabricated and require less on-site work. That also leaves less construction debris.

But ultimately, the value has to be understood by the owners.

“Some owners might not choose to spend the extra money upfront, but times have changed and clients today see the value in spending a little more upfront for a return or payback sometime in the future,” said Erickson. “People are also more aware of how their choices affect not only them, but the world around them.”

Erickson says he’s been embracing green construction practices since before the term was coined. He purchases products from within a 500-mile radius. He uses low gas-emitting paints and other surface coatings.

“I offer my clients choices to select sustainable and efficient products in every aspect of their home. This oftentimes costs more money upfront with a payback in the long run,” he said.

LEEDing Trend

Johnston says that some cities have expedited permitting programs for green projects — which cuts down on construction time and saves in other ways. That can be critical for new projects in coastal zones or other highly regulated areas.

“It’s more than just a niche, but also the way the entire building industry is going,” the architect said. “Resources are at the point of scarcity, and rethinking is being done. I see this as the wave of the future.”

In fact, she says many sustainable practices required for LEED certification are becoming standard as part of California’s building code.

Johnston says it’s her job to embrace emerging trends.

“I see it as the responsibility of what good architects are building. Good architects are conscious of the times,” she said. “I don’t see it as necessarily being green, but being a good architect.”

Ned Randolph is a freelance writer for the Business Journal.

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