Building ENERGY STAR® 

Qualified Homes and 

Incorporating Energy 

Efficiency and “Green” 

Building Practices into 

HOME-funded 

Affordable Housing 

U.S. Department of Housing and Urban Development 

Office of Community Planning and Development 

Building ENERGY STAR® 

Qualified Homes and 

Incorporating Energy 

Efficiency and “Green” 

Building Practices into 

HOME-funded 

Affordable Housing 

2008

Prepared by 

U.S. Department of Housing and Urban Development 

Office of Community Planning and Development 

Table of Contents 

Introduction.......................................................................................................................................................................1

Purpose of the Guidebook............................................................................................................................................... 1

Organization of the Guidebook ...................................................................................................................................... 1

Who Benefits from Using this Guidebook?................................................................................................................... 2

About the HOME Model Program Guides ................................................................................................................... 2

Chapter 1: ENERGY STAR® and Energy Efficiency in Affordable Housing: Benefits to the Environment, 

Residents, Properties, PJs, and HUD............................................................................................................3

1.1. Energy Efficiency and Green Housing—A Growing Trend............................................................................ 3

1.2. Why Promote Efficiency and Green Building Techniques in Affordable Housing?...................................... 5

1.3. Benefits of Energy Efficiency in Affordable Housing....................................................................................... 7

1.4. Benefits to HUD and Its Key Programs............................................................................................................. 8

1.5. HUD’s Priorities for Moving Forward ............................................................................................................... 8

Attachment 1-1: HUD’s Energy Strategy: Summary of Actions...................................................................................................11

Chapter 2: ENERGY STAR Qualified Homes ............................................................................................................. 13

2.1. What Is the ENERGY STAR Program?.......................................................................................................... 13

2.2. ENERGY STAR and Housing.......................................................................................................................... 14

2.3. What Is an ENERGY STAR Qualified Home?............................................................................................... 15

2.4. ENERGY STAR Qualified Homes Standards and Requirements................................................................. 15

2.5. Certifying ENERGY STAR for New Homes.................................................................................................. 17

2.6. Who Are the Key Actors Involved?.................................................................................................................. 17

2.7. What Are the Main Components of a Typical ENERGY STAR Home?..................................................... 18

2.8. What Are the Benefits and Advantages of Achieving ENERGY STAR Label? .......................................... 21

2.9. Costs and Savings for ENERGY STAR Qualified Home .............................................................................. 22

2.10. What Technical and Financial Resources Are Available to Support Achieving ENERGY STAR 

for New Homes Label?....................................................................................................................................... 22

2.11. Energy Efficient Mortgages............................................................................................................................... 22

2.12. ENERGY STAR Bulk Purchasing.................................................................................................................... 23

Attachment 2-1: The Whole House Approach to ENERGY STAR ...........................................................................................24

Attachment 2-2: HERS Rating System.............................................................................................................................................28

Attachment 2-3: Financial Resources for Energy Efficiency.........................................................................................................31

Attachment 2-4: Technical Assistance and Support........................................................................................................................34

Chapter 3: Incorporating ENERGY STAR Qualified Homes into HOME-Funded Activities ..................................37

3.1. ENERGY STAR Qualified Homes and HOME PJs...................................................................................... 37

3.2. HOME-Funded Activities Suitable for ENERGY STAR Qualified Homes................................................ 37

3.3. Key Steps When Incorporating ENERGY STAR into HOME-Funded Activities..................................... 39

3.4. Good Practices to Support Success................................................................................................................... 45

Attachment 3-1: HOME-Funded Certified ENERGY STAR Units by State (FY 2007)..........................................................48

Attachment 3-2: HERS Raters in United States, by State ..............................................................................................................49

Chapter 4: Incorporating Energy Efficiency Measures into Moderate Rehabilitation and Other Activities .............. 51

4.1. Steps to Incorporate Energy Efficiency Improvements into Rehabilitation Activities................................ 52

4.2. Energy Efficiency Features for HOME-Funded Activities ............................................................................ 58

4.3. Typical Low-Cost Features ................................................................................................................................ 58

4.4. Typical Moderate- to High-Cost Features........................................................................................................ 63

4.5. Methods for Selecting Energy Efficiency Measures to Use in HOME-Funded Activities.......................... 65

4.6. HOME-Funded Activity: Development of Multi-Unit Properties Greater than Three Stories.................. 68

4.7. Steps to Incorporate Energy Efficiency Measures into HOME-Funded Development 

of Large Multi-Unit Buildings............................................................................................................................ 69

4.8. Homeowner and Occupant Education ............................................................................................................. 71

Attachment 4-1: Home Performance with ENERGY STAR Locations.....................................................................................72

Attachment 4-2: Calculating Preliminary Feasibility for Installing Combined Heat and Power in an Apartment Building .73

 
Chapter 5: Incorporating Green Building Practices that Improve Housing Performance ..........................................77

5.1. What are “Green” Building Practices?...............................................................................................................77

5.2. What Does “Green” Mean?................................................................................................................................77

5.3. Benefits to Building Green .................................................................................................................................78

5.4. Green Building Guidelines .................................................................................................................................78

5.5. Key Steps When Incorporating Green Building Practices...............................................................................80

5.6. Green Building Practices.....................................................................................................................................81

5.7. Site Design............................................................................................................................................................83

5.8. Green Building Materials....................................................................................................................................84

5.9. Resource Efficiency.............................................................................................................................................85

5.10. Renewable Energy ...............................................................................................................................................85

5.11. Water Management..............................................................................................................................................88

5.12. Healthy Home Design.........................................................................................................................................89

Appendix 1: Resources.....................................................................................................................................................93

Federal Resources............................................................................................................................................................93

Non-Federal Resources...................................................................................................................................................95

Appendix 2: Glossary .......................................................................................................................................................97
Introduction 

The U.S. Department of Housing and Urban Development (HUD) has established increased energy efficiency in 

affordable housing as a strategic priority.1 This guidebook, Building ENERGY STAR New Homes and Incorporating 

Energy Efficiency and Green Building Practices into HOME-Funded Affordable Housing, is one of several HUD initiatives to 

promote HUD’s goal of increasing energy efficiency in its affordable housing developments. This guide provides 

information and program tools to state and local housing agencies and communities to enhance the energy 

efficiency of HOME-funded affordable housing activities. 

Improving energy efficiency in housing results in lower energy costs, improved building performance, lower 

maintenance costs, and enhanced financial stability. These are direct benefits to tenants, home owners, and 

property owners and managers. Cumulatively, these results also benefit the nation in reduced pollution and energy 

demand. Today, enhanced energy efficiency in housing is an achievable goal because of new technologies and 

advances in building practices that have evolved over the last decade. HUD urges its state and local partners to 

take advantage of these opportunities in their affordable housing ventures. 

Purpose of the Guidebook 

The primary purpose of this guidebook, Building ENERGY STAR New Homes and Incorporating Energy Efficiency and 

Green Building Practices into HOME-Funded Affordable Housing, is to provide technical and operational guidance to 

HOME participating jurisdictions (PJs), community housing development organizations (CHDOs), and 

subrecipients to help them develop ENERGY STAR qualified homes. This guidebook discusses the benefits of 

improved energy efficiency in housing; describes what the ENERGY STAR qualified home label means; describes 

what a PJ and its local development partners must do to meet the ENERGY STAR standards; and identifies other 

actions that PJ can take to improve building performance in affordable housing. Generally, PJs can achieve 

ENERGY STAR standards only with new construction activities; this guidebook also describes how to 

incorporate energy efficiency into rehabilitation activities and presents green building practices that may be 

incorporated into affordable housing activities. 

Organization of the Guidebook 

The guidebook is organized into five chapters: 

• Chapter 1, ENERGY STAR and Energy Efficiency in Affordable Housing – Benefits to the 

Environment, Residents, Properties, State and Local Programs, and HUD, explains how and why 

increasing energy efficiency in affordable housing benefits residents, owners, PJs, and HUD. It also discusses 

HUD’s actions to promote energy efficiency. 

 

1 This priority is described in the HUD Secretary’s report to Congress, Promoting Energy Efficiency at HUD in a Time of Change, August, 

2006. A copy of the report is available through HUD User, at http://www.huduser.org/publications/destech/energyefficiency.html. 

Building ENERGY STAR Qualified Homes 1
• Chapter 2, ENERGY STAR Qualified Homes, describes the ENERGY STAR program with a focus on the 

ENERGY STAR for New Homes label. It discusses the standards and requirements of an ENERGY STAR 

qualified home label, identifies the key actors involved in the review process, explains the main elements of an 

ENERGY STAR qualified home, and identifies some technical and financial resources that can be leveraged to 

support ENERGY STAR qualified homes activities. 

• Chapter 3, Incorporating ENERGY STAR into HOME-Funded Activities, discusses how to incorporate 

the standards for an ENERGY STAR qualified home into HOME-funded activities at the state or local level. It 

addresses the basic program-level actions necessary to achieve an ENERGY STAR label and how to document 

ENERGY STAR accomplishments in IDIS. It also presents good practices when implementing the ENERGY 

STAR for New Homes label in HOME-funded activities. 

• Chapter 4, Energy Efficiency Measures for Moderate Rehabilitation and Other Affordable Housing 

Programs, explains how a PJ can incorporate energy efficiency measures into activities where an ENERGY 

STAR qualified home is not feasible: in moderate rehabilitation and new construction of multifamily housing 

over three stories. This chapter presents the Home Performance with ENERGY STAR program. 

• Chapter 5, Incorporating Green Building Practices that Improve Housing Performance, introduces 

guidelines and design techniques for green building practices that reduce health risks in buildings and minimize 

their environmental impact. This chapter summarizes the benefits of these building practices, and identifies 

ways PJs can use these building practices in their affordable housing developments, including through site 

design, green building materials and construction methods, renewable energy, water conservation, healthy 

homes design, and operations and maintenance. 

Who Benefits from Using this Guidebook? 

This guidebook will benefit state and local PJs and their program partners (such as community housing 

development organizations, state recipients, and subrecipients) that are interested in helping low-income 

beneficiaries of their programs reduce housing energy costs; and improving the affordable housing stock that they 

develop. Program staff of these organizations who administer HOME Program activities will be able to use the 

information in this guide to initiate or improve their energy efficiency initiatives in their HOME-assisted housing. 

The guidebook offers information for communities experienced with incorporating energy efficiency measures, as 

well as for communities that have limited experience. 

About the HOME Model Program Guides 

Building ENERGY STAR New Homes and Incorporating Energy Efficiency and Green Building Practices into HOME-Funded Affordable 

Housing is one of a number of HOME model program guides that HUD has issued to provide technical assistance to state 

and local PJs implementing the HOME Program. These model program guides cover a range of topics related to HOME 

Program administration and activities, and are available at no cost through Community Connections at 1-800-998-9999. 

For a complete list of all the model program guides, see the HOME Program’s website, Model Program Guides, at 

http://www.hud.gov/offices/cpd/affordablehousing/library/modelguides/index.cfm. 

2 Building ENERGY STAR Qualified Homes 
Chapter 1: ENERGY STAR® and Energy Efficiency in 

Affordable Housing: Benefits to the Environment, 

Residents, Properties, PJs, and HUD 

This chapter describes the growing trend toward the use of energy efficient products, design, and building techniques in the affordable 

housing industry. It explains why these changes are important and how they benefit residents, property owners, PJs, and HUD. The 

chapter concludes with a discussion of a number of HUD initiatives to promote energy efficiency in its affordable housing programs. 

1.1. Energy Efficiency and Green Housing—A Growing Trend 

In the United States, energy demand and costs are rising substantially and will continue to do so under current 

consumption patterns. According to the Annual Energy Outlook 2008, over the next 20 years, U.S. consumption of 

liquid fuels will increase by almost 15 percent, natural gas will increase by 20 percent, and coal will increase by 

almost 30 percent over current levels. Although the U.S. has made extraordinary technology advances in energy 

exploration and production, it produces 36 percent less petroleum today than it did in 1980. Additionally, the total 

U.S. primary energy consumption is projected to increase by about 23 percent by 2030 as the total U.S. energy 

production is projected to decrease by 22 percent. As energy demand grows and supply shrinks, Americans face an 

ever-increasing gap between its energy needs and available resources.2 

 

2 United States Department of Energy. Energy Information Administration. Annual Energy Outlook 2008 with Projections to 

2030. December 2007. 12 February 2008. http://www.eia.doe.gov/oiaf/aeo/index.html. 

Building ENERGY STAR Qualified Homes 3
Figure 1-1. Total U.S. Energy Production and Consumption, 1980–2030 

(quadrillion Btu) 

0

20

40

60

80

100

120

140

1980 1990 2006 2020 2030

U.S. Production

U.S. Consumption

Historical Projections

} Net Imports

Source: Energy Information Administration, Annual Energy Outlook with Projections to 2030 

This gap causes energy prices to become more volatile and the cost of living to increase. According to the Annual 

Energy Outlook 2008, electricity prices are projected to rise through 2009 and then decline for the next decade 

before again rising slowly. Crude oil, natural gas, and coal follow this same trend. 

Figure 1-2. U.S. Energy Prices, 1980–2030 

(2006 dollars per million Btu) 

0

5

10

15

20

25

30

35

1980 1990 2006 2020 2030

Historical Projections

Electricity

Natural Gas

Crude Oil

Coal

Source: Energy Information Administration, Annual Energy Outlook 2008 with Projections to 2030. 

4 Building ENERGY STAR Qualified Homes 
As energy prices and the cost of living increase, American households will need to spend an increasing percentage of 

their incomes on utility bills. By 2009, it is expected that electricity and natural gas utility costs will have increased by 

at least 25 percent over the 2004 costs.3 With energy becoming such a significant cost, it is becoming increasingly 

important to use energy efficiency measures in housing, to reduce energy usage, and therefore utility bills. 

The building industry has increased its use of energy efficiency measures and green building designs in the last ten 

years because of growing concerns about the financial, environmental, and health impacts of using fossil fuels and 

non-renewable sources of energy. Green building design criteria typically includes energy efficiency, renewable 

energy, water management and conservation, environmental remediation, materials beneficial to the environment, 

and healthy living materials. As new energy sources have been further developed (such as solar, wind, and other 

sustainable forms of energy), residential building designers and suppliers have developed methods to reduce the 

amount of fossil fuel energy that appliances and building systems traditionally use. 

In response to these trends, there are growing opportunities for state and local agencies to advance residential and 

commercial energy efficiency, through incentive programs to encourage voluntary use of energy efficient measures 

as well as through revised and updated building requirements. With these changes, more residential housing 

developers are able to adopt energy efficiency and green building techniques in their projects. 

1.2. Why Promote Efficiency and Green Building Techniques in Affordable 

Housing? 

Rising energy costs hit low- and moderate-income households especially hard, often forcing them to make tough 

choices between paying their utility costs or other household needs. In 2005, the average American family with an 

after-tax income of $52,069 spent nearly nine percent of its budget on energy, according to Energy Cost Impacts on 

American Families, 1997-2007. The 61 million families—the majority of U.S. households—that earn less than 

$50,000, however, devoted nearly 20 percent of their after-tax income to energy. The 25 percent of households 

that earn between $10,000 and $30,000 paid 20 percent and more of their estimated after-tax income on energy. 

Many working households must accommodate increases in energy by cutting back on expenditures to meet other 

needs. Several studies demonstrate a link between a family’s inability to pay its home energy bills and consequences 

such as homelessness, malnutrition, heart disease, and heat stroke. Some studies have even linked the inability to 

pay utility bills to the disintegration of families. There are reports of children who were removed from their homes 

because of loss of heat or electricity, senior homeowners who were forced to sell their homes because they could 

not keep up with their energy bills, and families who have needed to move frequently, because they are unable to 

pay their energy bills. This frequent moving disrupts children’s educational development.4 

To address the impacts of rising energy costs on low-income households, both national and local efforts are 

focusing on the reduction of energy use and cost by building more energy efficient, affordable housing. 

Table 1-3, below, illustrates the home energy affordability gap, which is a measure that shows the amount by which 

home energy bills exceed what is considered affordable. The table shows the national dollar average as well as data 

from the states with the highest and lowest gap that show the burden or percentage of income families would pay 

for all home energy costs. For example, the table shows that in Vermont, households that are below 50% of the 

federal poverty line spend 78.9% of their gross income on all home energy costs. 

 

3 United States Energy Information Administration, U.S. Data Projections. Short Term Energy Outlook tables for residential 

energy usage. http://www.eia.doe.gov/oiaf/forecasting.html. March 20, 2008. 

4 Trisko, Eugene. “Energy Cost Impacts on American Families, 1997-2007.” Balanced Energy. May 2007. 

http://www.balancedenergy.org/docs/ABEC%20Media%20Room%20Docs/ABEC%20Energy%20Costs%201997%20to

%202007%20507-2.pdf. 12 December 2007. 

Building ENERGY STAR Qualified Homes 5
Figure 1-3: 2006 Home Energy Affordability Gap 

The Home Energy Affordability gap is the average dollar amount by which actual home energy bills exceeded 

affordable home energy bills for households below 185 percent of poverty level. The federal poverty guidelines in 

2004 established the poverty level for a family of four in the 48 contiguous states and Washington, DC at $18,850. 

2006 U.S. Home Energy Affordability Gap 

Total U.S. Affordability Gap = $29,808,824,730 

• Average Gap per Household = $1,047 

2006 State Home Energy Affordability Gap Ranking 

State with Smallest Gap: Washington 

• Average Gap per Household = $444 

Home Energy Burden for the State of Washington by Federal Poverty Level 

Poverty Level Home Energy Burden No. of Households 

Below 50% 35.1% 105,162 

50 – 74% 14.1% 62,130 

75 – 99% 10.1% 72,636 

100 – 124% 7.8% 78,736 

125 – 149% 6.4% 87,334 

150 – 185% 5.2% 125,900 

State with Largest Gap: Vermont 

• Average Gap per Household = $1,949 

Home Energy Burden for the State of Vermont by Federal Poverty Level 

Poverty Level Home Energy Burden No. of Households 

Below 50% 78.9% 8,591 

50 – 74% 31.6% 6,274 

75 – 99% 22.6% 7,855 

100 – 124% 17.7% 9,261 

125 – 149% 14.5% 10,337 

150 – 185% 11.9% 15,377 

Source: Home Energy Affordability Gap Ranking: Dollar Gap per Household by State April 2007. The Home Energy Affordability Gap. 

Fischer, Sheehan, & Colton, Public Finance and General Economics, Belmont, Massachusetts. April 2007. Available online at: 

http://www.homeenergyaffordabilitygap.com/downloads/2006_Released_Apr07/2006%20HH%20Gap%20by%20State.pdf. 14 February 2008. 

6 Building ENERGY STAR Qualified Homes 
1.3. Benefits of Energy Efficiency in Affordable Housing 

Benefits for Residents, Property Owners, and PJs 

Creating affordable housing that is energy efficient offers important short- and long-term benefits for the nation in 

reduced pollution and demand for energy. There are also direct benefits to residents, property owners, state and 

local housing agencies, PJs, and HUD. These include: 

• Energy bill savings for low-income families, property owners, state and local PJs, and HUD; 

• Improved home performance (in terms of air quality or reduced maintenance) which creates a healthier 

environment for residents; 

• Greater future financial stability for residents and property owners through increased savings; 

• Improved marketability of the home when renting or selling; 

• Reduced long-term maintenance costs due to the use of more durable products and building techniques; and 

• Increased affordability of housing due to reduced utility costs. 

Savings on Energy Bills 

Compared with standard homes, energy efficient homes use substantially less energy for heating, cooling, and 

water heating. These efficiencies can result in annual savings of hundreds of dollars, which can add up to 

thousands of dollars saved on utility bills throughout the life of a property. These savings benefit whoever is 

paying the utility bills, including the homeowner, property owner, state or local housing agency, or HUD. 

Improved Home Performance 

Long-term building performance is not always a priority consideration when designing and building affordable 

housing. Furthermore, some low-cost designs and features may result in other adverse costs and/or risks to 

residents, such as failure to vent bathroom fans to the exterior which can result in moisture and mold problems. 

Improved home design and performance can improve the health and financial stability of low-income families. 

By building affordable housing with energy-efficient techniques and products, low-income residents can live in more 

comfortable and healthy homes. Properly installed energy-efficient products, such as windows, insulation, ducts, and 

HVAC systems, can deliver better protection against cold, heat, drafts, moisture, pollution, and noise and help to 

ensure consistent temperatures between and across rooms, improved indoor air quality, and greater durability. 

Future Financial Stability 

Energy efficiency often results in savings in utility bills and maintenance costs. For low-income households, this 

might enable homeowners to pay for other necessities, such as food, rent, and medication. Over the long-term, 

families may be able to build savings for emergencies, education, and other long-term investments – making them 

more financially stable. 

For property owners, developing energy efficient properties can strengthen a property’s revenue and financial 

viability by slowing the rate of growth in utility and maintenance costs while also supporting higher occupancy 

rates due to enhanced property desirability. The property may also realize increased value from higher quality 

construction and more durable appliances and materials. The increase in capital value tied to Energy STAR 

certification is being recognized by appraisers. 

Improved Marketability 

Improved health, comfort, and safety; lower utility bills; less required maintenance; and superior indoor air quality 

can translate into an easier sale or rental at a higher return compared to less energy efficient homes. Property 

owners may spend less time and therefore less money, leasing up or selling units. For homeowners, energyefficiency features in a home can result in lower utility costs, which can increase a home's value at resale. 

Building ENERGY STAR Qualified Homes 7
Long-Term Maintenance Savings 

Energy-efficient properties tend to be of higher quality and require less maintenance than standard properties. 

Therefore, energy efficiency features may extend the life of property. For example, energy-efficient and properly 

installed windows can help reduce the potential for condensation, which damages window sills, causes paint to 

crack, and encourages the growth of mold. With energy efficiency features, housing programs spend less on 

operating and maintenance costs over the life of the property because of the quality and durability of the property. 

Additionally, if the property is sold to a low-income household, the household will likely have lower maintenance 

costs. The house will be less likely to fall into disrepair and require additional funding from the state or locality 

than if it were a standard home. 

More Sustainable Affordable Housing and Additional Program Funds Leveraged 

In addition to making existing housing units affordable, the savings in utilities and maintenance costs can increase 

operating revenue for rental property owners. This additional revenue makes affordable housing properties more 

financially sustainable than traditional properties because owners can use this revenue to address maintenance and 

capital replacement needs for a longer period without having to seek refinancing for repairs and rehabilitation. 

This revenue not only makes the property more financially sustainable, it will allow PJs and other agencies to put 

more program funds toward additional units, rather than having to use these funds to preserve existing properties 

that are in financial distress due to rising operating costs. 

For PJs, the ability to leverage energy program funding can also augment state and local housing program budgets 

and may even be able to satisfy matching and leveraging requirements. 

1.4. Benefits to HUD and Its Key Programs 

In any single year, HUD assists more than five million renters and homeowners through its various programs, who 

occupy approximately five percent of all housing in the nation. HUD spends more than $4 billion each year on 

energy—more than 10 percent of its budget—primarily through utility allowances to renters, housing assistance 

payments to private building owners, and operating grants to public housing authorities. Of the $4 billion, HUD 

spends an estimated $1.1 billion each year on utilities in public housing alone, either in direct operating grants or in 

the form of utility allowances to individual residents. 

Incorporating energy efficiency into HUD-assisted projects could yield significant cost savings to the Federal 

government, property owners, and building residents. Reducing energy bills by just five percent could yield a savings 

of $2 billion over the next ten years—funds that could be used to finance additional affordable housing for families. 

Greater energy efficiency could conservatively save traditional public housing at least $82 million or result in as much as $165 

million per year in savings.5 Similar savings might be achieved in HUD’s inventory of assisted multifamily housing, as well as 

other housing financed by HUD through its formula and competitive grant programs. 

1.5. HUD’s Priorities for Moving Forward 

In July 2001, HUD established a department-wide Energy Task Force to identify measures that HUD could take to 

support the energy efficiency and conservation goals of the National Energy Policy. In establishing the Task Force, 

HUD’s Deputy Secretary directed the Task Force to develop an Action Plan that addressed the following objectives: 

• Improve energy efficiency and conservation in HUD-assisted rental housing; 

• Expand the use of Energy Efficient Mortgages, consistent with sound underwriting principles; 

 

5 U.S. Department of Housing and Urban Development. HUD’s Energy Action Plan. 8 October 2007. Available online at: 

http://www.hud.gov/energy/energyactionplan.pdf. 

8 Building ENERGY STAR Qualified Homes 
• Provide technical assistance on energy issues to nonprofits and faith-based organizations; and 

• Research and develop new energy-efficient technologies. 

HUD’s 2002 Energy Action Plan recommends 25 activities that HUD can undertake to support energy efficiency 

efforts. Attachment 1-1 provides the complete list. When implemented, the actions will encourage energy 

efficiency in some five million housing units that are assisted, insured, or otherwise subsidized through HUD’s 

programs. HUD’s overall goal is to significantly reduce energy use in HUD’s inventory of public and assisted 

housing and in HUD-financed housing. 

Partnerships for Home Energy Efficiency 

Through a Memorandum of Understanding signed in September 2002, HUD works with EPA and DOE to 

expand the use of ENERGY STAR products in assisted and public housing, as well as in projects financed 

through other HUD programs, such as the Community Development Block Grant (CDBG) and HOME 

programs. As part of the agreement, HUD works with DOE and EPA to promote the purchase of ENERGY 

STAR qualified appliances by the nation's housing authorities, and by HUD's inventory of privately-owned assisted 

housing. The agreement also promotes the construction of new ENERGY STAR qualified homes through HUD 

programs. These efforts include developing ENERGY STAR informational and promotional materials which can 

be distributed to field staff, public housing authorities, formula and competitive grant recipients, and assisted 

housing property managers to help educate homebuyers and homeowners on the benefits of purchasing 

ENERGY STAR products or of building energy-efficient new homes. 

HUD began implementing the recommendations in the Energy Task Force Action Plan with a Memorandum of 

Understanding with the Environmental Protection Agency (EPA) and the Department of Energy (DOE) to 

promote the use of ENERGY STAR. HUD joined EPA and DOE in 2005 with creation of the Partnerships for 

Home Energy Efficiency, which seeks to bring greater energy efficiency to the U.S. housing market by helping 

households save ten percent or more on home energy bills over the next 10 years. Savings of ten percent on home 

energy bills represents an almost $20 billion savings a year and would increase the affordability and comfort of 

homes, eliminate the need for more than 40 power plants, and prevent the greenhouse gas emissions equivalent to 

those from more than 25 million vehicles.6 In addition, it would reduce demand for natural gas by more than 1 

quad (quadrillion Btu). Note: a quad is a unit which expresses a very large amount of energy. In 2006, U.S. energy 

consumption was approximately 99 quad.7

HOME Program and Energy Efficiency 

The HOME Program has taken actions to encourage PJs to undertake energy efficiency measures and to provide 

assistance to PJs in this area. HUD provides technical assistance to PJs and community housing development 

organizations (CHDOs) to encourage energy efficiency when using HOME and CDBG funds so they can better 

incorporate energy efficient practices into the development projects they undertake with HUD funds. 

HUD encourages HOME PJs to incorporate ENERGY STAR qualified products and practices when conducting 

rehabilitation or constructing new housing. Housing that is constructed or rehabilitated with HOME funds must 

meet all applicable local codes, rehabilitation standards, ordinances, and zoning at the time of project completion, 

in accordance with 24 CFR 92.251. This section of the HOME Final Rule also requires that newly constructed 

housing must meet the International Energy Conservation Code (formerly known as the Model Energy Code). PJs 

can adopt higher standards and are urged to adopt the ENERGY STAR qualified homes standards. 

 

6 U.S. Department of Environmental Protection, Partnerships for Home Energy Efficiency. Overview of the Partnerships for 

Home Energy Efficiency. 5 October 2007. http://www.energysavers.gov/pdfs/phee_overview.pdf. 

7 U.S. Department of Energy, Energy Information Administration. “Table 1.1 Energy Overview, Selected Years, 1949-2006.” 

27 June 2007. Annual Energy Review 2006. October 2007. http://www.eia.doe.gov/emeu/aer/pdf/pages/sec1_5.pdf. 

Building ENERGY STAR Qualified Homes 9
The HOME Program has developed an internet-based training module on energy efficiency. Each Community 

Planning and Development (CPD) field office distributes ENERGY STAR information to CDBG grantees and 

HOME PJs in their areas. Following the distribution of information, the Boston field office has followed up with a 

training workshop, surveys, and telephone consultations. As a result, over 40 grantees and PJs have adopted 

ENERGY STAR, and a reported number of around 4,000 affordable ENERGY STAR housing units have been 

newly constructed in the region. In North Carolina, HOME funds have been used to finance energy-efficient, 

high-performance new construction in more than 800 new homes. 

Effective in 2007, CPD requires HOME PJs and CDBG grantees to track the number of units built with HOME 

and CDBG funds to ENERGY STAR standards through the Integrated Disbursement and Information System 

(IDIS). In February 2006, HUD published a final rule on the IDIS performance measures to implement these new 

reporting requirements regarding ENERGY STAR qualified units. 

10 Building ENERGY STAR Qualified Homes 
Attachment 1-1: 

HUD’s Energy Strategy: Summary of Actions 

Strengthen Partnerships with Federal Agencies and Local Communities to Promote ENERGY STAR and 

Energy Efficiency in the Residential Sector 

1. Department-wide HUD promotes the use of ENERGY STAR products and standards through HUD’s new 

Partnerships for Home Energy Efficiency with DOE and EPA. 

2. Department-wide HUD establishes residential energy partnerships with cities, counties, states, and other local 

Partners. 

3. The Federal Housing Administration (FHA) continues to strengthen HUD-DOE multifamily weatherization 

partnerships. 

4. The Office of Field Policy and Management partners with local energy efficiency groups, HUD program 

offices, and other agencies to educate HUD customers about ways to reduce energy costs. 

Strengthen Incentives and Implement New Statutory Requirements for Energy Efficiency through 

HUD Programs 

5. Department-wide HUD provides incentives for energy efficiency in housing financed through HUD’s 

competitive grant programs. 

6. The Office of Public and Indian Housing bases appliance and product purchases in public housing on 

ENERGY STAR standards, unless the purchases are not cost effective. 

7. The Office of Public and Indian Housing builds HOPE VI developments to a high level of energy efficiency. 

8. The Federal Housing Administration encourages use of ENERGY STAR new home standards in the design, 

construction, and refinancing of Sections 202 and 811 projects. 

9. The Federal Housing Administration develops incentives for energy efficiency through FHA multifamily 

insurance programs. 

10.The Federal Housing Administration implements energy efficiency recommendations of the Consensus 

Committee in HUD-code homes. 

Provide Training and Technical Assistance on Energy Efficiency for Homeowners, Renters, 

and Property Owners 

11.Department-wide HUD provides training or information on energy efficiency to residents or organizations 

building or rehabilitating affordable housing. 

12.The Office of Community Planning and Development encourages energy efficiency in HOME- and CDBGfunded new construction and housing rehabilitation projects. 

13.The Office of Public and Indian Housing streamlines energy performance contracting in public housing. 

14.The Office of Public and Indian Housing promotes energy conservation in federally-assisted housing on Indian 

tribal lands. 

15.The Federal Housing Administration features the Energy Efficient Mortgage (EEM) as a priority loan product. 

16.The Federal Housing Administration provides training on how FHA single family programs can be effectively 

used to promote energy efficiency. 

17.The Federal Housing Administration promotes energy efficiency in assisted multifamily housing programs. 

Building ENERGY STAR Qualified Homes 11
18.The Federal Housing Administration explores asset management strategies and guidance for energy efficiency 

in HUD-subsidized multifamily properties. 

19.The Federal Housing Administration supports energy efficiency training for multifamily managers and 

maintenance staff. 

Establish Measures to Track Progress in Reducing Energy Consumption and Ensure Accountability 

20.Department-wide HUD includes energy efficiency performance measures in HUD’s Annual Performance Plan 

and Management Plan. 

21.The Office of Public and Indian Housing improves tracking and monitoring of energy efficiency in public 

housing. 

22.The Federal Housing Administration continues to improve tracking and evaluate performance of Energy 

Efficient Mortgages. 

Support Further Research and Technology Development 

23.The Office of Community Planning and Development identifies opportunities and assists with feasibility 

analysis for Combined Heat and Power in public or assisted housing. 

24.The Office of Policy Development and Research conducts energy-related policy analysis and research to 

support Departmental energy efficiency actions. 

25.The Office of Healthy Homes and Lead Hazard Control develops computerized assessment tool for integrated 

energy and environmental retrofits. 

12 Building ENERGY STAR Qualified Homes 
Chapter 2: ENERGY STAR Qualified Homes 

This chapter provides an overview of the ENERGY STAR qualified homes program and the requirements for obtaining certification. 

The chapter explains: 

• Requirements for an ENERGY STAR qualified home; 

• How a property is certified; 

• The benefits of achieving the ENERGY STAR qualified home label; 

• The roles and responsibilities of key actors in achieving this certification; and 

• Where to look for financial and technical assistance. 

2.1. What Is the ENERGY STAR Program? 

ENERGY STAR is the U.S. government-backed label for energy efficiency. The ENERGY STAR label identifies 

homes, buildings, and consumer products that meet specific standards for energy efficiency and performance. A 

joint program of Environmental Protection Agency (EPA) and the Department of Energy (DOE), ENERGY 

STAR is designed to help individuals and organizations nationally and internationally adopt cost-effective, energyefficient technologies and practices, and better manage their energy costs. 

EPA introduced ENERGY STAR as a voluntary labeling program designed to identify and promote energyefficient products to reduce greenhouse gas emissions in 1992. Computers and computer monitors were the first 

labeled products. The label was then extended to office equipment products and residential heating and cooling 

equipment, and in 1995 to new homes. In 1996, EPA partnered with DOE for particular product categories. 

Today, the ENERGY STAR label is on more than 50 types of consumer products, new homes, and commercial 

and industrial buildings. Products with the ENERGY STAR label deliver the same or better performance as 

comparable models while using less energy and saving money. 

ENERGY STAR is a voluntary partnership between the government and more than 9,000 organizations, including 

4,500 of the nation’s homebuilders. These public and private organizations have joined forces with EPA and DOE 

through ENERGY STAR to promote energy efficiency. The voluntary partnership program provides technical 

information and tools for organizations and consumers about energy-efficient solutions and best practices for 

managing energy consumption. 

Building ENERGY STAR Qualified Homes 13
Partners in ENERGY STAR 

ENERGY STAR has more than 9,000 partner organizations that have committed to 

improving and promoting the energy efficiency of their products, homes, and businesses. 

Of those partner organizations: 

• Almost 4,500 builder partners are constructing new homes that qualify and are 

certified as ENERGY STAR in every state and the District of Columbia. 

• More than 1,700 manufacturers are using ENERGY STAR to label more than 40,000 

product models. 

• More than 900 retail partners, located in the U.S. and Puerto Rico, are selling 

ENERGY STAR qualifying products and bringing educational information to their 

customers. 

• About 2,500 private businesses, public sector organizations, and industrial facilities are 

investing in energy efficiency and reducing energy use in their buildings. 

• More than 40 states and 500 utilities are leveraging ENERGY STAR to improve the 

efficiency of commercial buildings and homes. 

Source: U.S. Environmental Protection Agency, ENERGY STAR. ENERGY STAR Overview of 2006 Achievements. 10 April 2007. 

Available online at: http://www.energystar.gov/ia/partners/pt_awards/2006_Achievements_Overview.pdf, 8 October 2007. 

2.2. ENERGY STAR and Housing 

Over time, EPA extended the ENERGY STAR label beyond consumer products to cover residential, commercial, 

and industrial buildings. In 1995, EPA launched ENERGY STAR qualified homes. These homes are 30 percent 

more efficient than those built in accordance with the Model Energy Code. In 1997, ENERGY STAR qualified 

homes expanded to include manufactured homes. By 2002, the ENERGY STAR label extended to office buildings, 

schools, hospitals, hotels, and grocery stores. In general, these buildings perform in the top 25 percent of the market. 

In 2007, more than 120,000 new homes were constructed to meet ENERGY STAR standards, bringing the total 

number of ENERGY STAR qualified homes in the U.S. close to 850,000. 

Figure 2-1: Growth of ENERGY STAR Homes 

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

2000 2001 2002 2003 2004 2005 2006 2007

Annual Homes Built Cumulative Homes Built

Source: EPA Climate Protection Partnerships Division. Energy Star Overview of 2007 Achievements. Data as of March 1, 2008. 

14 Building ENERGY STAR Qualified Homes 
Owners of these homes are saving more than $170 million annually on their utility bills. As a result of the 

ENERGY STAR program’s expanding efforts, the total number of ENERGY STAR qualified homes nationwide 

has close to doubled in the past two years, with market penetration exceeding 20 percent of the new home starts in 

more than 10 states and 20 metropolitan areas. 

For more information on ENERGY STAR in existing homes, see Chapter 4. 

2.3. What Is an ENERGY STAR Qualified Home? 

ENERGY STAR qualified homes are the result of a process by which the entire home is planned and then built 

for improved energy efficiency. The developer must design and construct the project to standards that ensure both 

energy and cost savings will be delivered to the property owner and the tenant. ENERGY STAR qualified homes 

are significantly more energy efficient than traditional homes because they use more effective insulation; higher 

performing windows; tighter construction and ducts; and more efficient heating and cooling equipment, lighting, 

and appliances. A family that lives in an ENERGY STAR qualified home benefits because the home is made of 

high quality materials, and the energy efficient features result in lower utility bills, better air quality, improved 

comfort, and lower maintenance demands. 

2.4. ENERGY STAR Qualified Homes Standards and Requirements 

Any home three stories or less can earn the ENERGY STAR qualified home label if it has been verified to meet 

the program’s standards. Eligible types of homes include: 

• Single family; 

• Low-rise multifamily homes (three stories or less); 

• Manufactured homes; 

• Systems-built homes (e.g., structurally insulated panel (SIP), insulated concrete forms (ICF), or modular 

construction); 

• Existing retrofitted homes. 

The ENERGY STAR qualified home label is primarily intended for new construction, but it can be obtained for 

substantial rehabilitation of an eligible property. Because of the strict performance standards that must be met, homes 

that undergo less extensive rehabilitation are unlikely to cost-effectively meet the ENERGY STAR standard. 

To earn the ENERGY STAR qualified home designation, a home must meet the following three criteria: 

• Meet the appropriate Home Energy Rating System (HERS) Index (see Figure 2-2); 

• Be verified and field-tested in accordance with the RESNET Standards by a RESNET-accredited provider; and 

• Meet all applicable codes. 

HERS Index 

The HERS Index provides a numeric score indicating the relative energy efficiency of a home. The lower the 

score, the more energy efficient the home. An ENERGY STAR home must achieve a HERS Index score of: 

• Less than or equal to 80 in the North; or 

• Less than or equal to 85 in the South. 

• Hawai‘i, California, and the Pacific Northwest have regionally developed ENERGY STAR qualified home 

standards that have been allowed by EPA. 

Building ENERGY STAR Qualified Homes 15
As a point of reference, a score of 100 represents the 2004 International Energy Conservation Code (IECC) code. 

Because the HERS Index is tied to the 2004 IECC and one point on the HERS Index is equivalent to one percent 

change in efficiency for a home, the ENERGY STAR qualified home standard is at least 15 percent more efficient than 

the IECC in the south and middle parts of the country; and 20 percent more efficient than the IECC in the north. 

Figure 2-2: Maximum HERS Index Required to Earn the ENERGY STAR 

Energy Codes and ENERGY STAR 

Until 2006, the energy performance of ENERGY STAR qualified homes was based on 

the 1993 Model Energy Code (MEC). Specifically, to earn the ENERGY STAR label, a 

home had to be independently verified for be at least 30 percent more efficient than a 

home built to the 1993 MEC. In recent years, states have increasingly adopted a new 

national energy code, the International Energy Conservation Code (IECC) that took over 

the energy code role beginning with the 2005 MEC. This code is more rigorous than the 

MEC, particularly in the south. As a result of this change, the performance standards for 

ENERGY STAR qualified homes were also increased to ensure that ENERGY STAR 

continued to represent a meaningful increase in efficiency for consumers over standard 

code-built homes. 

EPA adopted new standards that went into effect for homes permitted as of July 1, 2006. 

EPA set ENERGY STAR at two different levels, depending on the area of the country—

15 percent more efficient than the 2004 IECC in the south and middle parts of the 

country; and 20 percent more efficient than the IECC in the north. Additional 

requirements for comprehensive air barrier details, which are not addressed by the code, 

further increase the overall performance of ENERGY STAR qualified homes by another 

five to eight percent. 

16 Building ENERGY STAR Qualified Homes 
2.5. Certifying ENERGY STAR for New Homes 

HERS Rater and RESNET Standards 

The developer is responsible for following the process to ensure a home is certified as an ENERGY STAR qualified 

home. The developer must contract with an independent third-party, known as the Home Energy Rater, or HERS 

rater. HERS raters inspect, test, and certify all homes seeking the ENERGY STAR qualified homes label. HERS 

raters follow the Home Energy Rating System (HERS) Index to determine the energy efficiency of a home. 

HERS raters must be trained and certified by state agencies and the Residential Services Network (RESNET), 

which was established in 1995 by the National Association of State Energy Officials and Energy Rated Homes of 

America in order to develop a national standard for home energy rating systems. HERS raters are trained to 

evaluate construction techniques, take key measurements, and perform inspections and testing procedures to verify 

a home’s efficiency performance. The HERS rater can also advise the builder on how to select the most 

appropriate energy-efficient features for a home and inspect and test the home during and after construction to 

verify that the home meets EPA’s strict guidelines for energy efficiency. 

Two Paths for Qualifying Homes 

ENERGY STAR has two approaches to achieve the standards for an ENERGY STAR qualified new home. 

• Performance Path. Under the ENERGY STAR Performance Path approach to qualification, a rater simulates a 

home’s energy efficiency based on the building plans with specialized computer software. This allows the rater to 

identify the most effective upgrades to a specific property to meet ENERGY STAR performance standards. 

• Prescriptive Path. Under the ENERGY STAR Prescriptive Path approach to qualification, the builder and 

rater use a set of climate-specific construction specifications developed by EPA called a Builder Option 

Package (BOP). Based on extensive analyses, the BOP specifications have been determined to result in homes 

that consistently meet ENERGY STAR standards. 

Regardless of how the energy efficiency features are selected, HERS raters must also conduct on-site inspections and 

tests of a home. The process usually includes a blower door test, which tests for air leaks in the house structure or 

envelope and a duct blaster test, which tests for air leaks in the duct system. The HERS rater also completes a 

Thermal Bypass Checklist, which is a visual inspection of common construction areas where air can flow through or 

around insulation. This field verification ensures that a home’s performance is consistent with ENERGY STAR 

standards. The standards for HERS, inspection protocols, and testing guidelines are maintained by RESNET. 

For additional information about HERS, the HERS Index, and the rating process, see Attachment 2-2. 

2.6. Who Are the Key Actors Involved? 

HOME PJs, as well as other key affordable housing partners, all have a role in achieving ENERGY STAR 

standards and maintaining the home’s performance. HUD encourages HOME PJs to promote or require 

ENERGY STAR qualified home certifications in their development programs, and to incorporate ENERGY 

STAR qualified products and practices whenever feasible in rehabilitation projects. 

• PJ. While HOME requires PJs to adopt IECC standards in new construction, the PJ can choose to incorporate 

ENERGY STAR standards into its development programs. The PJ can encourage or require developers to meet 

ENERGY STAR standards when they proposing projects under suitable HOME-funded programs, update 

rehabilitation and new construction standards to address ENERGY requirements, and revise program procedures 

to confirm and document that developers are taking adequate steps to obtain an ENERGY STAR certification 

upon project completion. For more information about the roles and responsibilities of the PJ, see Chapter 3. 

• Developer. When the PJ has determined that the HOME-assisted housing must meet ENERGY STAR 

standards, the developer must ensure the ENERGY STAR standards are integrated into the design and 

construction of the project. With the HERS rater, the project developer must thoroughly review the site plans. 

Building ENERGY STAR Qualified Homes 17
The project developer is responsible for ensuring its contractors and subcontractors have enough information 

in the specifications and the training necessary to achieve ENERGY STAR standards. 

• Construction Contractor and Subcontractor. The sole responsibility of the construction contractor and 

subcontractor is to build the project according to the plans and ENERGY STAR standards, as approved by the 

PJ. The contractors should be trained in the construction methods used to obtain ENERGY STAR 

certification. 

• HERS Rater. A third-party certified HERS rater reviews the site plans with the developer to ensure the 

completed project will meet ENERGY STAR standards. The rater also inspects the design features and the 

efficiency measures incorporated into the project for appropriate installation and overall energy performance. 

• Property Owner. Once the housing is completed, the property owner needs to maintain the energy efficient 

features of the home. Up-keep includes regularly scheduled inspections of efficient building features (such as 

duct work and insulation) to ensure ongoing performance as well as general maintenance of ENERGY STAR 

appliances. In situations where the unit occupant is not the property owner, the property owner is additionally 

responsible for educating and informing tenants of the appropriate ways to use energy efficient appliances 

within their unit to ensure they achieve their full potential. 

• Occupant. Residents can reduce energy consumption and costs by following energy conservation practices, 

using appliances appropriately, and reporting malfunctions or symptoms that building features are failing to the 

property owner for resolution. It is important that the residents understand how to use the efficiency features 

in their units so that they achieve maximum energy efficiencies and savings. Residents can achieve further 

energy savings by conserving energy use. For instance, residents need learn to: 

– Turn off lights when not in use; 

– Use a programmable thermostat; 

– Turn off the heating or cooling system when leaving the home; 

– Use a ceiling fan in addition to (or instead of) the air conditioner to distribute the cool air so that less work 

is needed to make the room feel cool; 

– Use cold or warm water in laundry batches (unless dirty with oil stains) and only do laundry or dishes when 

a full load needs to be cleaned. This not only saves energy, but water as well. 

2.7. What Are the Main Components of a Typical ENERGY STAR Home? 

ENERGY STAR qualified homes are designed and built using a “whole-house” approach that incorporates a 

range of energy-efficiency features and systems to improve home quality and homeowner comfort, lower energy 

demand, and reduce air pollution. For more information on the “whole-house” approach used by ENERGY 

STAR, see Attachment 2-1. 

The main components of a typical ENERGY STAR qualified home are: 

• Effective insulation; 

• High-performance windows; 

• Tight construction and ducts; 

• Efficient heating and cooling equipment; 

• Lighting and appliances; and 

• Third-party verification. 

18 Building ENERGY STAR Qualified Homes 
Effective Insulation 

ENERGY STAR qualified homes must have properly installed and inspected insulation in floors, walls, and attics. 

This ensures consistent temperatures throughout the house, reduces energy use, and increases comfort for 

residents. As much as half of the energy used in a home is for heating and cooling. A properly installed insulation 

barrier prevents heat loss in the winter and heat gain in the summer, thereby reducing utility bills year round. 

When insulation is properly installed, the potential for condensation that can lead to decay of building materials is 

also reduced, thereby improving the durability of a home. If insulation is not properly installed, a home can have 

excessive heat gain during the summer and heat loss in the winter—forcing the heating and cooling systems to 

work overtime. The insulation in ENERGY STAR qualified homes meets or exceeds the latest national code 

requirements, providing year-round comfort while reducing utility bills. 

High-Performance Windows 

ENERGY STAR qualified windows use advanced technologies, such as protective coatings and improved frames, to 

help keep heat in during winter and out during summer. In addition to maintaining consistent temperatures throughout 

homes, they are better for the environment because they reduce the emissions of greenhouse gases and air pollutants 

from entering and exiting the house. High-performance windows are tailored for four climate zones and independently 

tested for superior energy performance. For example, windows in the North are optimized to reduce heat loss in the 

winter, while windows in the South are optimized to reduce heat gain during the summer. Because of their variations, 

windows that are energy efficient in Florida will not necessarily be energy efficient in Michigan. 

The energy performance of all ENERGY STAR qualified windows and skylights is independently tested and 

certified according to procedures established by the National Fenestration Rating Council (NFRC). NFRC is a 

third-party, nonprofit organization that sponsors certified rating and labeling programs to help consumers 

compare the energy and performance features of windows and skylights. 

Tight Construction and Ducts 

ENERGY STAR qualified homes must have efficient and tightly sealed duct systems that carry air from central 

heaters or air conditioners to each part of the home and back again. Tight construction and efficient duct systems 

reduce drafts, moisture, dust, pollen, and noise. A tightly sealed home improves comfort and indoor air quality 

while reducing utility usage and maintenance. In a standard house, about 20 percent8 of the air that moves through 

the duct system is lost due to leaks, holes, and poorly connected ducts. The duct systems found in ENERGY 

STAR qualified homes are third-party tested for tightness and verified to be properly insulated. 

Efficient Heating and Cooling Equipment 

Energy-efficient heating and cooling systems are necessary in ENERGY STAR qualified new homes. ENERGY 

STAR qualified heating and cooling systems can be quieter, reduce indoor humidity, and improve the overall 

comfort of the home. ENERGY STAR qualified heating equipment can be up to 15 percent9 more efficient than 

standard models. Also, ENERGY STAR qualified homes built in the North typically include “right-sized” (the 

appropriate size for the load required) ENERGY STAR qualified heating equipment. ENERGY STAR qualified 

heating systems are designed to use less energy than standard systems and reduce the risk of back-drafting 

dangerous carbon monoxide exhaust into the home. Most ENERGY STAR qualified heating systems employ 

advanced technologies and high quality components, often resulting in longer equipment life and longer warranties 

compared to standard models. 

 

8 U.S. Environmental Protection Agency, ENERGY STAR. Efficient Duct System. Available online at: 

http://www.energystar.gov/ia/new_homes/features/DuctSystems_062906.pdf,8 October 2007. 

9 U.S. Environmental Protection Agency, ENERGY STAR. ENERGY STAR Qualified Heating Equipment. Available online 

at: http://www.energystar.gov/ia/new_homes/features/Heating_062906.pdf, 8 October 2007.

Building ENERGY STAR Qualified Homes 19
Like heating costs in the North, cooling costs can make up a large part of a home’s energy bill, especially in the 

South. ENERGY STAR qualified homes typically include right-sized ENERGY STAR qualified cooling 

equipment that lowers energy use, increases comfort, improves durability, and operates more quietly than standard 

models. Mechanical ventilation systems circulate fresh air using ducts and fans, rather than relying on airflow 

through small holes or cracks in a home’s walls, roof, or windows. Mechanical ventilation systems control the 

source and amount of air that comes into the house, and can significantly improve a home’s air quality by 

removing allergens, pollutants, and moisture that can cause mold problems. 

Lighting and Appliances 

ENERGY STAR qualified homes may also be equipped with ENERGY STAR qualified products, such as lighting 

fixtures, compact fluorescent bulbs, ventilation fans, and appliances. ENERGY STAR qualified appliances 

incorporate advanced technologies and use ten to 50 percent less energy than standard appliances. ENERGY 

STAR qualified appliances, (including refrigerators, freezers, dishwashers, and clothes washers), lower utility bills, 

and often have superior components and performance compared to standard appliances. Appliances account for 

nearly 20 percent of the average household’s energy use. A comprehensive package of ENERGY STAR qualified 

appliances can save up to $80 a year in energy costs compared to standard appliances.10

An ENERGY STAR qualified compact fluorescent light bulb (CFL) uses about 75 percent less energy than a 

comparable standard incandescent bulb. CFLs also operate at less than 100°F and are safer than the halogen bulbs, 

which burn at 1,000°F. ENERGY STAR qualified fixtures and bulbs meet strict standards for longevity. In 

addition, ENERGY STAR qualified fixtures come with a 2-year warranty—twice the industry standard. Replacing 

the five most frequently used light fixtures in a home with ENERGY STAR qualified lighting can save about $65 

each year in energy costs.11 

Examples of ENERGY STAR Products that Save Energy in Homes 

This list provides a sample of some of the more than 50 types of ENERGY STAR Products: 

• Light Bulbs. ENERGY STAR qualified light bulbs use about 75 percent less energy 

than a standard incandescent bulb and last ten times longer. 

• Refrigerators. The average new ENERGY STAR qualified refrigerator uses less 

energy than a 60-watt light bulb run continuously. 

• Clothes Washers. ENERGY STAR qualified clothes washers use about 55 percent 

less water and 40-50 percent less energy than standard washers, for annual household 

savings of about $50. Full-sized ENERGY STAR qualified washers use 15-25 gallons 

of water per load, compared to the 30-35 gallons used by a standard machine. 

• Dishwashers. New ENERGY STAR qualified dishwashers are at least 41 percent 

more efficient than standard new models. 

• Heating, ventilation, and air conditioning (HVAC). Sealing and insulating with 

ENERGY STAR can result in an annual household savings of $200 (ten percent of the 

typical energy bill) in heating and cooling costs. 

Source: U.S. Environmental Protection Agency, ENERGY STAR. ENERGY STAR Product Factoid Workbook. August 2007.

 

10 U.S. Environmental Protection Agency, ENERGY STAR. ENERGY STAR Qualified Appliances. Available online at: 

http://www.energystar.gov/ia/new_homes/features/Appliances_062906.pdf, 8 October 2007.

11 U.S. Environmental Protection Agency, ENERGY STAR. ENERGY STAR Qualified Lighting 

.http://www.energystar.gov/ia/new_homes/features/Lighting_062906.pdf, 8 October 2007. 

20 Building ENERGY STAR Qualified Homes 
2.8. What Are the Benefits and Advantages of Achieving ENERGY STAR Label? 

In addition to the benefits of achieving greater energy efficiency discussed in Chapter 1, achieving the ENERGY 

STAR qualified homes label offers many important additional advantages for homebuyers, including having a third 

party inspection, adding value to their home, increasing their discretionary income, and increasing the availability 

of special financing tools. 

Third-Party Inspections 

Having a third-party inspection gives homebuyers the peace of mind that their home meets the energy-efficient 

standards of ENERGY STAR, and will perform to those standards. Third party inspections provide homebuyers 

the assurance that their homes have properly installed energy-efficient features that deliver better protection 

against cold, heat, drafts, moisture, pollution, and noise; and help ensure consistent temperatures between and 

across rooms; improve indoor air quality; and have greater durability. The use of third party inspectors also makes 

it easier for HOME PJs to incorporate ENERGY STAR into their programs, because they do not have to hire or 

train staff to perform this function. 

Adds Value to the Home 

Increasingly, ENERGY STAR qualified homes are likely to appreciate in value over time. Because of the strict 

energy-efficient standards and the verification process, homebuyers are placing a greater value on homes with the 

ENERGY STAR label. By the end of 2007, close to one million homes are expected to earn the ENERGY STAR 

label. As more homes become qualified, ENERGY STAR will become an even more widely recognized standard 

that homebuyers look for when looking for a new home. 

Increased Discretionary Income for Owner/Resident 

Compared to standard homes, ENERGY STAR qualified homes use substantially less energy for heating, cooling, 

and water heating, which can result in $200 to $400 in annual savings, as illustrated in Table 2-1. This energy 

savings translates to an increase in the discretionary income of the property owners and residents paying for 

utilities. Over the average seven to eight years that a homeowner typically lives in his/her home, the savings on 

utility bills can add up to thousands of dollars. Additional savings on maintenance can also be substantial. 

Table 2-1 illustrates that while there may be a slight increase in the mortgage of an ENERGY STAR qualified 

home ($15 per month or $180 over a year), the utility savings ($40 a month or $480 a year) that will be realized 

results in overall savings to the owner. These savings may increase over time as the cost of energy rises while the 

mortgage payment remains the same. 

Figure 2-3. Average Costs and Savings of an ENERGY STAR Qualified Home 

ENERGY STAR Qualified Home Monthly Annual 

Additional mortgage cost* -$15 -$180 

Utility savings** +$40 +480 

Cost Savings +25 +300 

* Based on $2,000 additional housing price/value 

** Likely to increase while mortgage remains fixed 

Source: U.S. Environmental Protection Agency. “Benefits for Homeowners.” Available online at: 

http://www.energystar.gov/index.cfm?c=new_homes.nh_benefits January 10, 2008 

Building ENERGY STAR Qualified Homes 21
2.9. Costs and Savings for ENERGY STAR Qualified Home 

The savings and benefits of an ENERGY STAR qualified home generally outweigh the initial purchase costs. 

Further, the savings achieved from developing or purchasing an ENERGY STAR qualified home are much greater 

than those achieved by simply installing ENERGY STAR appliances. While the per-unit up-front development 

costs of achieving the ENERGY STAR certification generally are modestly higher than a standard home and may 

require a greater subsidy from the PJ, these features are a good investment because they slow the growth of rapidly 

rising energy costs that homeowners and rental housing owners and residents will face. By holding down the 

growth of rising energy costs, the upfront investment to achieve the performance of an ENERGY STAR qualified 

home means that the HOME-funded homeowner and rental units are much more likely to remain financially 

viable over time. This means that these properties are also less likely to require additional financial assistance from 

the PJ in the future, as compared to standard housing developments given the trend in energy prices.

The experience of builders or architects can also have a significant impact on the costs and savings of an 

ENERGY STAR qualified home. Experienced ENERGY STAR builders have gone through the certification and 

inspection process several times and have a better understanding of EPA’s standards for energy efficiency and how 

to meet those standards by using the most appropriate energy-efficient features for the type and location of the 

homes they are building. 

2.10. What Technical and Financial Resources Are Available to Support Achieving 

ENERGY STAR for New Homes Label? 

In many areas, financial resources and technical support can be leveraged to achieve ENERGY STAR. PJs and 

developers can secure funding through Federal grant programs, nonprofits, foundations, and lenders. For a list of 

specific funding resources, see Attachment 2-3. Technical support is also available through various Federal 

agencies and nonprofit organizations, and through their websites and databases. For a list of technical resources, 

see Attachment 2-4. 

2.11. Energy Efficient Mortgages 

Financing a home purchase using an energy efficient mortgage can also lead to savings. Energy Efficient 

Mortgages, also known as EEMs, can make it easier for borrowers to qualify for loans to purchase homes with 

specific energy-efficiency improvements. Lenders can offer conventional EEMs, FHA EEMs, or Veterans 

Administration (VA) EEMs. 

• Conventional EEMs can be offered by lenders who sell their loans to Fannie Mae and Freddie Mac. 

Conventional EEMs increase the buyer’s purchasing power when they buy an energy efficient home because 

the lender is able to increase the borrower’s income by a dollar amount equal to the estimated energy savings. 

This is because the buyer’s anticipated income available to pay the mortgage is greater, since he/she will spend 

less on utilities. The Fannie Mae underwriting criteria also allows lenders to adjust the value of the home to 

reflect the value of the energy efficiency measures. 

• Federal Housing Administration (FHA) EEMs allow lenders to add 100 percent of the additional cost of costeffective energy efficiency improvements to an already approved mortgage loan within certain guidelines. The 

additional costs can not exceed $4,000 or 5 percent of the value of the home, whichever is greater, up to a maximum 

of $8000. No additional down payment is required, and the FHA loan limits will not interfere with the process of 

obtaining the EEM. For more information, see FHA Mortgagee Letter 2005-21: HUD’s Energy Action Plan and 

Energy Efficient Mortgages located at http://www.hud.gov/offices/adm/hudclips/letters/mortgagee.12 

 

12 U.S. Environmental Protection Agency, ENERGY STAR. What is an Energy Efficient Mortgage? Available online at: 

http://www.energystar.gov/index.cfm?c=bldrs_lenders_raters.energy_efficient_mortgage. 8 October 2007. 

22 Building ENERGY STAR Qualified Homes 
• The Veteran’s Administration (VA) EEM is available to qualified military personnel, reservists, and veterans 

for energy improvements when purchasing an existing home. To cover the cost of energy improvements, the 

mortgage loan amount can be increased up to: (1) $3,000 based solely on documented costs, (2) $6,000 if the 

increase in the mortgage payment is offset by the expected reduction in utility costs, or (3) more than $6,000 

based on a value determination by VA. 13

2.12. ENERGY STAR Bulk Purchasing 

Through the ENERGY STAR Quantity Quotes, formerly known as the ENERGY STAR Online Bulk Purchasing 

Tool, multifamily building owners, public housing authorities, and state and local governments can save money on 

the purchase price of ENERGY STAR qualified products. This increases the return on investment and reduces 

the payback period. The tool, developed by DOE and promoted by the HUD Energy Task Force Region 9 

Coordinator, allows large homebuilders and property owners to comparison shop for ENERGY STAR qualified 

products, including: light bulbs, light fixtures, clothes washers, dehumidifiers, dishwashers, refrigerators, and room 

air conditioners. Purchasers can easily locate available ENERGY STAR qualified products, make contact with the 

suppliers, and negotiate discounted prices through this online purchasing tool. 

 

13 Alliance to Save Energy. Energy Efficient Mortgages. 14 March 2008. Available online at:

http://www.ase.org/section/_audience/consumers/refinanceremodel/refinancing/.

Building ENERGY STAR Qualified Homes 23
Attachment 2-1: 

The Whole House Approach to ENERGY STAR 

Building Envelope 

The building envelope separates the interior of a home from the outside environment. This is the component of 

the building which greatly reduces a home’s energy efficiency if a great deal of interior air is escaping. If air is 

leaking in or out, heating and cooling systems must run for longer periods to achieve the preferred temperature in 

the house. Common leakage points include around chimneys, ducts, and other holes for plumbing, wiring, and 

lighting as well as joining points of the house such as the roof and basement. 

To create an efficient building envelope for new construction, a great deal of emphasis is placed on tight 

construction–ensuring the components of the house are fitted and joined together seamlessly to keep air from 

escaping. Optimum Value Engineering (OVE), a type of engineering in which less lumber is used in the 

construction of a building, is a common practice employed to remove wood from a home’s walls in order to make 

room for more insulation. The increase insulation limits the heat transfer so that the home retains its interior air 

temperatures for longer periods without requiring heating and cooling systems to run as frequently. This 

accomplishes efficiency in materials as well as increasing the level of insulation and reducing the building’s 

consumption of energy. OVE advanced framing techniques include: 

• Studs spaced at 24 inches; 

• A 2-foot modular design that reduces cut-off waste from standard-sized building materials; 

• In-line framing that reduces the need for double top plates; 

24 Building ENERGY STAR Qualified Homes 
• Corners built with two studs; and 

• Use of insulated headers over exterior building openings (or using no headers for non-load bearing walls). 

The entire OVE process can be applied in the construction of a building, or individual components can be 

incorporated if not everything is appropriate for a specific project. 

Once a home is constructed for efficiency, (with particular attention to ducts, vents and insulation, and caulking 

and sealing of seams or other potential leakage areas), weather stripping around points of entry such as windows 

and doors can further reduce the amount of conditioned air lost to the outside. Although windows and doors are 

not primary locations for air leakage, by weather stripping points of entry the builder can reduce some energy 

usage by the building’s heating and cooling systems. ENERGY STAR qualified windows can also be installed to 

prevent heat gain or loss though windows. The appropriate window will vary, depending on the climate. In cold 

weather climates, energy efficient windows which have gas between the panes and a low emissivity treatment on 

the panes reduce the loss of heat through the windows. In warm weather climates, spectrally selective coating on 

panes reflect the sun’s rays to reduce the greenhouse effect of air warming inside the home due to infrared light 

shining through windows. 

The type and amounts of insulation that are installed throughout walls and roof to resist the transfer of heat 

throughout the home also vary by climate. Different regions of the U.S. require different grades of insulation. 

Builders must identify what grade is appropriate in a specific community. In order to receive the ENERGY STAR 

New Homes label, a home must pass the Thermal Bypass Checklist after initial construction, but before drywall is 

installed. A third-party HERS certified rater uses the checklist to inspect the framing of the home and ensure air 

and thermal barriers are continuous and complete, and that insulation is installed appropriately. 

Mechanical Systems 

The mechanical systems in the house are those that condition and deliver air into the home to increase the 

occupant’s comfort. The largest component of a home’s mechanical system is the ducts that deliver air from the 

heating and cooling system to the rooms of a home. If these ducts run through unconditioned spaces (like the 

home’s attic and crawlspaces and have leaks, a large amount of conditioned air escapes into unconditioned space 

and causes the heating and cooling system to run longer than is necessary. 

In creating an energy-efficient system, contractors should ensure the following: 

• Ducts that deliver air to rooms of occupancy are sealed and do not leak air behind the walls or into attic areas; 

• Ducts in unconditioned areas like an attic are insulated to prevent heat transfer as air is delivered to occupied rooms; 

• Supply and Return vents are designed and located properly to deliver proper airflow; 

• Air filters are installed. Air filters affect the indoor air quality more than energy savings but it is important to 

include them. Consumers should ensure that air filters appropriate to their HVAC system are installed and 

changed frequently so that they do not impede air flow. 

Placing vents in areas that are cramped or blocked by pieces of furniture can restrict the delivery of air flow into a room 

from heating and cooling systems and provide less comfort for the home’s inhabitants. In new construction and 

substantial rehabilitation, paying attention to vent placement and running ducts through conditioned spaces rather than 

through crawlspaces, attics, or unconditioned basements tends to be more a more energy-efficient practice. 

The efficiency of the actual system which cools and heats the air in a building can also make a substantial 

difference in the efficiency of that building. Several HVAC systems have been labeled as ENERGY STAR can be 

installed in new homes, and some can be installed in older homes, upon the failure of older heating and cooling 

systems or when the property is being rehabilitated. 

Building ENERGY STAR Qualified Homes 25
Within heating systems, heat pumps offer an energy efficient method for heating a home. Three types of heat 

pumps exist. The first collects heat from the outside air that it then distributes inside the building; the second 

collects heat from the ground for internal distribution; and the third from the groundwater. Heat pumps can 

double as a central air conditioner by collecting heat within the home and pumping it outside during warm weather 

months. Generally if a heat pump is not an option, look for efficient heating and cooling systems. 

Depending on one’s heating and cooling system, one of several indices measures its efficiency. The efficiency of 

cooling systems is expressed through their Seasonal Energy Efficiency Ratio (SEER) ratings and ENERGY STAR 

Energy Efficiency Ratio (EER). A system’s SEER number indicates the amount of cooling that is supplied by the 

system in relation to the amount of watts the system requires. Consumers should look for high SEER numbers. 

ENERGY STAR recommends a minimum of 13 SEER/11 EER. 

Air conditioners that were manufactured after January 23, 2006 must meet a minimum SEER of 13 or higher; the 

previous standard was 10. (Note: A SEER rating of 13 is 30 percent more efficient than 10.) The standard applies 

only to appliances manufactured after January 23, 2006. Equipment with a rating less than 13 SEER manufactured 

before this date can still be sold and installed. Since the average air conditioner lasts 15-20 years, most 

homeowners remain unaffected by this standard change. 

In addition to the SEER rating on a heat pump for its cooling function, the Heating Seasonal Performance Factor 

(HSPF) rates the efficiency of its heating function. The HSPF is especially important to consumers that live in cold 

climates. ENERGY STAR recommends an HSPF of 8 or higher. If a home uses a furnace rather than a heat 

pump, the furnace’s Annual Fuel Utilization Efficiency (AFUE) rating measures the amount of heat actually 

delivered to the house compared to the amount of fuel it requires. High AFUE ratings indicate more efficient 

systems. ENERGY STAR recommends an AFUE of at least 83 percent. 

Another key component that adds to the efficiency of a building with little to no effect on the building’s occupants 

is a programmable thermostat. Thermostats control the air temperature by sending a message to cut off the HVAC 

system when the interior air has achieved a pre-set designation. A programmable thermostat changes the air 

threshold at different times during the day based on how it is programmed. This allows the air temperature to rise 

or fall to uncomfortable levels while people are not in the house (during work and school hours) and bring the 

level back up to preferred temperatures when the building is again occupied. In installing a thermostat, attention 

should be given to its placement. Thermostats installed next to a window or lamp for instance may get an 

inaccurate temperature reading. The thermostat should be placed in an area where other components will not 

interfere with the temperature of the air around them. Occupants must learn how to use a programmable 

thermostat so that they program it to function as it is intended. Using a programmable thermostat incorrectly can 

actually increase energy usage. 

Lighting and Appliances 

By using ENERGY STAR qualified appliances, a household can reduce energy consumption and save 

significantly. Major ENERGY STAR products to look for include: 

• Compact Fluorescent (CFL) bulbs; 

• Clothes washers; 

• Dishwashers; 

• Refrigerators and freezers; and 

• Dehumidifiers. 

Lighting is one of the largest consumers of energy in a home. Traditional incandescent bulbs are very inefficient 

and most of the energy they use actually creates heat in addition to light. CFL bulbs create a brighter light without 

heat, using only one quarter of the energy used by incandescent bulbs. For instance, a 15 watt CFL bulb produces 

as much light as a 60 watt incandescent bulb. Today, existing CFLs offer brightness and a color rendition 

26 Building ENERGY STAR Qualified Homes 
comparable to incandescent bulbs. Additionally, CFLs last up to 10 times longer than incandescent bulbs. They 

more than pay for themselves with their low replacement rate and low energy usage. Although the CFL bulb costs 

slightly more than a typical incandescent, the consumer can earn back the higher cost in approximately six months 

through the energy savings. 

Both clothes washers and dishwashers primarily use energy to heat water in the washing cycle. ENERGY STAR 

dish and clothes washers receive certification because they use at least 40 percent less energy to heat the water used 

for cleaning. Additionally, both types use less water in the washing cycle. Further, ENERGY STAR washing 

machines extract more water from clothes in the spin cycle than do traditional models. This shortens the drying 

time needed, thereby generating even more energy savings. 

Energy efficient refrigerators and freezers use less electricity in order to produce cold air. An ENERGY STAR 

refrigerator and freezer unit uses at least 15 percent less energy than required by current Federal standards and 40 

percent less energy than most conventional models sold in 2001. 

A dehumidifier is a good investment that can reduce energy usage in the home, and improve the quality of life for 

its inhabitants by removing excess moisture from the air. Moisture in the air can lead to condensation, 

deterioration of building materials, and mold. Additionally, humidity, or excess moisture in the air can make the 

temperature feel much warmer or colder. By running a dehumidifier in especially damp rooms or installing a 

central dehumidifier for a home’s HVAC system, residents may need to run their heating and cooling systems less 

frequently, thus saving energy. An ENERGY STAR qualified dehumidifier can save 10-20 percent more energy 

than a standard dehumidifier. Dehumidifiers are portable and can be used in rooms only as necessary. When a 

dehumidifier is running, doors and windows to the room should be closed. Dehumidifiers should be located away 

from dust and dirt. Most dehumidifiers have top-mounted air discharge and can be placed against walls while 

running. If a dehumidifier does not have top-mounted discharge, it should be located away from walls and 

furniture, so that air can circulate freely around the unit. 

Builder Option Packages 

In lieu of receiving the complete HERS certification, the EPA created Builder Option Packages (BOPs) to help 

contractors build homes to ENERGY STAR specifications. BOPs represent a set of construction specifications for 

specific climate zones that enable a home's energy performance to qualify for the ENERGY STAR label. Contractors 

working in a specific climate can choose to use BOPs rather than their own designs to meet ENERGY STAR 

requirements. If a BOP is followed, the home is subject to fewer inspection demands; a certified rater must verify that 

the BOP requirements have been met, but a custom HERS inspection and rating is not needed. 

Building ENERGY STAR Qualified Homes 27
Attachment 2-2: 

HERS Rating System 

This attachment provides additional detail on the Home Energy Ratings System (HERS) and the process HERS raters 

follow to test and certify an ENERGY STAR qualified home. When specifying that a building is to meet ENERGY 

STAR standards, it is the responsibility of the developer to contact the HERS rater and complete the required 

procedures to obtain the ENERGY STAR label. It is not necessary for PJ staff to undertake any steps or actions 

described in this process. However, PJ staff may benefit by understanding how the HERS rating system works. 

HERS Infrastructure 

HERS is an energy index created and governed by three national standards: 

• The National Association of State Energy Officials (NASEO)Technical Guidelines which prescribe the 

accepted methods and procedures for rating a home; 

• The Mortgage Industry Home Energy Rating System (HERS) Accreditation Procedures which prescribe the 

methods and procedures for certification of the HERS System by individual state governments and the national 

home mortgage industry; and 

• The Residential Services Network (RESNET) Training and Certifying Standards which prescribe minimum 

competencies for Trainers and certified raters. 

Together, the three national standards create a complete infrastructure for building, testing, and certifying the 

energy efficiency of structures along standardized conditions. Raters and contractors are trained and certified by 

RESNET and state agencies to become HERS contractors and raters. After they receive and pass this training they 

can certify buildings using uniform protocols established by HERS and NASEO. 

In some cases, ENERGY STAR programs are managed locally by an ENERGY STAR partner (typically a local 

utility company, state agency, or local association). These partners may train builders on ENERGY STAR 

standards, develop HERS infrastructure by training and certifying raters, and / or keep a database of qualified 

raters in the area. To verify a building meets ENERGY STAR qualified homes standards, the HERS rater submits 

the rating software file on that project to the ENERGY STAR partner in the area or to their local HERS provider. 

The ENERGY STAR partner compiles the records it receives from HERS raters and keeps a database of 

ENERGY STAR buildings. This information is periodically reported to the EPA to track ENERGY STAR 

buildings across the nation. 

Nationally, HERS infrastructure is already in place to perform the necessary components to meet ENERGY STAR 

requirements. A developer simply needs to tap into this infrastructure through the local HERS provider or ENERGY 

STAR partner. By visiting the ENERGY STAR website, users can determine whether there is a local program sponsor. 

If there is not, the ENERGY STAR website has information about HERS certified raters working across the U.S. 

Interested parties can use their local HERS provider or the ENERGY STAR website to find a rater to help review 

project plans and incorporate efficiency measures as well as to test and inspect the installation and adequacy of those 

measures and verify the project as meeting the ENERGY STAR qualified homes standards. The ENERGY STAR 

website is http://www.energystar.gov/index.cfm?c=home_improvement.hm_improvement_contractors. 

28 Building ENERGY STAR Qualified Homes 
HERS Index 

Every home that is tested receives a numeric score which falls 

somewhere within the HERS Index. The Index is a numeric 

scale that rates the energy efficiency of homes. A zero (0) on 

the scale represents a building with zero energy usage and a 

100 on the scale represents a HERS Reference Home that 

meets the 2004 International Residential Code (IRC) 

guidelines and the 2004 International Energy Conservation 

Code (IECC) Performance Path. Every point on the scale 

represents a one percent change in the efficiency of the home. 

Homes with a lower score are more efficient. All homes that 

are inspected are assigned a score which indicates its energy 

efficiency relative to the HERS Reference Home. 

HERS Index Thresholds 

On the HERS scale, a home can score greater than 100 if it 

exceeds the energy usage of the HERS Reference Home. For 

instance, a typical existing home built in 1970 might earn a 

130 on the scale. This means the home’s efficiency is 30 

percent worse than a home built to code (IRC 2004). 

A home that meets the ENERGY STAR qualified homes 

standards is expected to exceed IRC standards by 20 percent 

in the North, and by 15 percent in the South. Therefore, to be 

certified, a home must earn a score of ≤ 80 in the North and 

≤85 in the South on the HERS Scale. 

Inspections and Testing Process 

The developer must contract with a HERS certified rater to ensure that the building is inspected at the appropriate 

stages of development. The following inspections are required to meet ENERGY STAR qualified homes specifications: 

• Review of Building Plans. In the design stage, building plans are reviewed for construction features or 

efficiency measures that can be incorporated into the project in order to reduce energy consumption by 20 

percent (15 percent in southern states) as compared to a standard home. This review can be conducted by an 

IECC analyst when he/she reviews the building plans for compliance with the building code, or it can be 

conducted by a HERS rater. 

• Quality Insulation Inspection. At an intermediate stage of construction, upon installation of the home’s 

insulation, a HERS certified rater performs an initial inspection to confirm that the insulation is installed 

appropriately and according to ENERGY STAR standards. When the rater determines insulation is 

appropriately installed, he/she issues a quality installation certificate to the builder for his/her records. 

• Thermal Bypass Inspection List. During the intermediate construction inspection, the HERS rater also 

performs a visual inspection of framing areas where air barriers are commonly missed and inspects insulation to 

ensure proper installation and alignment with air barriers. This checklist serves as an extra check to the Quality 

Insulation Inspection that the air and thermal barriers are continuous and complete. If all items are in 

compliance with checklist guidelines, the rater signs the Thermal Bypass Inspection List, certifying the building 

has passed. A building can only receive the ENERGY STAR label if this checklist has been signed. Both the 

builder and the rater keep a hard copy of the signed and completed checklist in their records. 

Building ENERGY STAR Qualified Homes 29
• Field Verification and Diagnostic Test. Upon completion of the building, 

an ENERGY STAR eligible building must pass a final evaluation that verifies 

that the home’s overall energy consumption is 20 percent (15 percent in 

southern states) less than a 2004 IECC standard home built in that community. 

The HERS rater uses a checklist to perform essential tests and inspections and 

enters this information into HERS approved rating software. This software is 

used to determine if the measures and building components within a project 

achieve the required HERS score and the home performs up to the efficiency 

level required by ENERGY STAR standards. When the home is found to be 

in compliance, the rater submits the file containing the final HERS rating and 

records of the previous Thermal Bypass Checklist and verification that the 

building is ENERGY STAR qualified to their HERS provider. Checklists used 

in this process vary across states. 

• Building Option Package (BOP) Verification. An alternative to the complete HERS inspection, a builder 

may choose to build according to a BOP created by ENERGY STAR pertaining to the climatic region in which 

the building is constructed. BOPs include a set list of building features to include in order achieving the 

ENERGY STAR construction standard. A certified HERS rater can verify that the building was built according 

to a BOP and therefore meets ENERGY STAR standards. If a developer chooses this option, the HERS rater 

submits final verification of the building as an ENERGY STAR qualified home to its HERS provider registry 

using rating software as it does with the Field Verification Test. 

Labeling Process 

If a building passes the final inspection and documents all past inspections, the HERS rater verifies the building as 

an ENERGY STAR home. The rater affixes the ENERGY STAR label to the home’s circuit breaker box and 

uploads acknowledgement of this to the HERS provider. The HERS provider keeps a record of all ENERGY 

STAR buildings in its territory. The developer additionally receives documentation of meeting ENERGY STAR 

standards for its own records. 

30 Building ENERGY STAR Qualified Homes 
Attachment 2-3: 

Financial Resources for Energy Efficiency 

There are numerous sources of financing that available to PJs, developers, property owners, and/or homeowners 

or homebuyers. 

U.S. Department of Housing and Urban Development 

• HOME Investment Partnerships (HOME) Program. HOME is the largest Federal block grant to state and 

local governments designed to create affordable housing for low-income households. Each year it allocates 

approximately $2 billion in formula grants among the states and hundreds of localities nationwide who often 

partner with local nonprofit groups. The HOME Program funds a wide range of activities to build, buy, and/or 

rehabilitate affordable housing for rent or homeownership or to provide direct rental assistance to low-income 

people. Improvements for energy efficiency measures in HOME-assisted units are eligible costs under HOME; 

however, HOME cannot be used as a stand-alone program to make energy improvements. For more 

information about the HOME Program, go to: www.hud.gov/homeprogram/. 

• Community Development Block Grant (CDBG) Program. CDBG provides annual formula block grants to 

general units of local government and states to benefit low- and moderate-income persons, prevent or 

eliminate slums or blight, and address urgent community development needs that pose a serious and immediate 

threat to the health or welfare of the community. Improvements for energy efficiency measures can be funded 

with CDBG funds, in conjunction with CDBG-funded housing development. For more information about the 

CDBG program, go to: www.hud.gov/cdbgprogram/. 

• HUD/FHA Energy Efficiency Mortgage Program. The Energy Efficient Mortgages Program (EEM) helps 

homebuyers or homeowners save money on utility bills by enabling them to finance the cost of adding energyefficiency features to new or existing housing as part of their FHA-insured home purchase or refinancing 

mortgage. When FHA-insured buyers purchase a HOME-assisted unit, the PJ can refer the buyer to this source 

of funds. For more information about the EEM program, go to: 

http://www.hud.gov/offices/hsg/sfh/eem/energy-r.cfm. 

U.S. Department of Energy 

• Weatherization Assistance Program (WAP). Through WAP, weatherization service providers install energy 

efficiency measures in the homes of qualifying low-income homeowners free of charge to reduce energy usage 

and payments. WAP provides funding and technical guidance to states who partner with nonprofit agencies to 

deliver weatherization assistance. PJs can work with these nonprofits to assist homebuyers and homeowners 

that participate in the HOME Program. For more information about the WAP program, go to: 

http://www.eere.energy.gov/weatherization/. 

• Energy-Efficiency Funds and Demand Response Programs. DOE lists incentives offered by utility 

companies, such as energy-efficiency and load management programs. For more information about energyefficiency funds and demand response programs, go to: 

http://www1.eere.energy.gov/femp/program/utility/utilityman_energymanage.htm. 

• Special Offers and Rebates from ENERGY STAR Partners. A searchable list of special offers and rebates 

available on ENERGY STAR qualified products by geographic area is available at: 

http://www.energystar.gov/index.cfm?fuseaction=rebate.rebate_locator. 

U.S. Department of the Treasury - Internal Revenue Service 

• Low Income Housing Tax Credit (LIHTC). The LIHTC program provides the private market with an 

incentive to invest in affordable rental housing. Federal housing tax credits are awarded to developers of 

qualified projects. Developers then sell these credits to investors to raise capital or equity for their projects, 

which reduces the debt that the developer would otherwise have to borrow. Because the debt is lower, a tax 

Building ENERGY STAR Qualified Homes 31
credit property can, in turn, offer lower, more affordable rents. LIHTCs can help finance the costs of energy 

efficiency improvements in the construction, acquisition, or rehabilitation of HOME rental projects. In many 

states, developers applying for tax credits receive bonus points or other favorable considerations for 

incorporating energy efficiency features or developing ENERGY STAR qualified units. For more information 

about the Low Income Housing Tax Credit, go to: http://www.hud.gov/offices/fheo/lihtcmou.cfm 

• Federal Tax Credits for Energy Efficiency. Federal Tax Credits reduce the amount of income tax 

homeowners have to pay by directly reducing the homeowner’s tax liability. Note, not all ENERGY STAR 

qualified homes and products qualify for a tax credit. These tax credits are available for a number of products 

at the highest efficiency levels, which typically cost much more than standard products. Tax credits are available 

for many types of home improvements including insulation, replacement windows, and certain high efficiency 

heating and cooling equipment. Tax credits are also available to homeowners building new homes with 

photovoltaics, solar water heating, and/or fuel cells. For more information about Federal Tax Credits for 

energy efficiency, go to: http://www.energystar.gov/index.cfm?c=products.pr_tax_credits. 

U.S. Department of Health and Human Services 

• Low Income Home Energy Assistance Program (LIHEAP). LIHEAP is a block grant program 

administered by the Office of Community Services to help eligible low-income homeowners and renters meet 

their home heating and/or cooling needs, with financial assistance for utility bill payments and weatherization 

assistance. Each year it allocates approximately $2 billion in formula grants among the states, territories, and 

Indian tribes. The PJ can refer the residents of HOME-assisted units to this source for financial assistance with 

their utility bills. For more information about LIHEAP, go to: http://www.acf.hhs.gov/programs/liheap/. 

Nonprofits and Foundations 

• Local Initiatives Support Corporation. LISC provides loans, lines of credit, grants and recoverable grants, 

and equity investments to help community development corporations and other partners revitalize their 

neighborhoods. Through LISC’s Green Development Center, nonprofits have access to financing and 

technical assistance for green projects. For more information about LISC, go to: www.lisc.org. 

• Green Communities. Green Communities is a five-year, $555 million initiative by the Enterprise Foundation to 

build more than 8,500 environmentally healthy homes for low-income families. The initiative offers grants to help 

cover the costs of green components in affordable housing developments — improvements that increase the 

profitability, productivity, or usefulness of a property while preserving the quality of the environment. Financing 

assistance is available to nonprofit and for-profit developers, and includes planning and construction grants for the 

green components of affordable housing developments, and for tracking their costs and benefits; predevelopment, 

acquisition, and construction loans to support the development of affordable rental and homeownership housing 

that adheres to Green Communities criteria; and competitively priced LIHTC equity for new construction and/or 

rehabilitation of affordable rental housing that generally adheres to the Green Communities criteria. For more 

information about Green Communities, go to: www.greencommunitiesonline.org. 

Lenders 

• Private Lenders. Private lenders often offer energy efficient mortgages (EEMs) for single family and some 

multifamily property acquisition, refinance, rehabilitation, and construction. Fannie Mae and Freddie Mac also 

offer programs to buy EEMs from private lenders. For more information about these programs and to identify 

lenders who may offer EEMS, go to: www.fanniemae.com or www.freddiemac.com. 

32 Building ENERGY STAR Qualified Homes 
Utility Grant/Loan Programs 

Some utility companies operate demand-side management (DSM) or system benefit charge (SBC) programs. DSM 

programs aim to reduce demands on the utility company's generation, transmission, and distribution systems by 

improving the efficiency with which their customers use energy. Some utility companies provide free energy audits 

and/or zero-interest loans to pay for the installation of conservation measures. SBC programs offer funding to 

improve energy efficiency. These funds are allocated in a variety of ways. PJs should contact their local utility 

companies to find out about opportunities that are available locally. 

For instance, the California Public Utilities Commission (CPUC) issued $2 billion in funding for energy efficiency 

programs, including installation of qualifying energy-efficient products in multifamily buildings. This energy 

efficiency and conservation campaign is the most ambitious in the history of the U.S. utility industry. Some of the 

utility companies administering home improvement rebate programs in California include Pacific Gas and Electric, 

Southern California Edison, Southern California Gas Company, and San Diego Gas and Electric. For more 

information about the California Public Utilities Commission, go to: http://www.cpuc.ca.gov/puc/. 

Building ENERGY STAR Qualified Homes 33
Attachment 2-4: 

Technical Assistance and Support 

PJs can contact the following agencies and programs to get information, technical assistance, and support for its 

initiatives to integrate energy-efficient features into their housing development programs. 

Database of State Incentives for Renewables and Efficiency 

The Database of State Incentives for Renewables & Efficiency (DSIRE) is a comprehensive source of information on 

state, local, utility, and Federal incentives that promote renewable energy and energy efficiency. DSIRE is an ongoing 

project of the North Carolina Solar Center and the Interstate Renewable Energy Council (IREC), funded by the U.S. 

Department of Energy. IREC supports market-oriented services targeted at education, coordination, procurement, the 

adoption and implementation of uniform guidelines and standards, and consumer protection. IREC's members include 

state and local government agencies, national laboratories, solar and renewable organizations and companies, and 

individuals. The North Carolina Solar Center, which is operated by the College of Engineering at North Carolina State 

University, promotes the use of renewable energy technologies and green building practices through technical assistance 

and training, policy research and analysis, education and outreach, and technology research, development, and 

demonstration. For more information about DSIRE, go to: www.dsireusa.org. 

Alliance to Save Energy 

The Alliance to Save Energy is a nonprofit coalition of business, government, environmental, and consumer 

leaders that support energy efficiency as a cost-effective energy resource under existing market conditions. The 

Alliance advocates energy efficiency policies that minimize costs to society and individual consumers and that 

lessen greenhouse gas emissions and their impact on the global climate. To carry out its mission, the Alliance to 

Save Energy undertakes research, educational programs, and policy advocacy; designs and implements energyefficiency projects; promotes technology development and deployment; and builds public-private partnerships in 

the U.S. and other countries. Sorted by state, its website identifies state tax credits, energy efficiency codes, funds, 

and energy saving tips. For more information about the Alliance to Save Energy, go to: www.ase.org. 

Partnership for Advancing Technology in Housing (PATH) 

PATH is a public-private partnership sponsored by HUD's Office of Policy Development and Research (PD&R) 

that seeks to improve housing affordability and value through technology. PATH is a voluntary partnership 

between leaders of the homebuilding, product manufacturing, insurance, and financial industries and 

representatives of Federal agencies concerned with housing. The PATH website contains a wealth of tools and 

information for integrating advanced housing technologies into local projects. For more information about PATH, 

go to: www.pathnet.org. 

Canada Mortgage Housing Corporation (CMHC) 

Canada Mortgage Housing Corporation (CMHC) is Canada’s national housing financing agency for affordable 

housing, improves building standards and housing construction, and provides information and analysis about the 

housing market to researchers and policymakers. CMHC has a library of technical and socio-economic research on 

its website, including CMHC’s Housing Technology E-Newsletter which contains technical research, construction 

details, and innovative and better building case studies on topics on a wide range of related topics, such as healthy 

housing; energy efficiency; indoor air quality; and construction research, practices and codes. For more 

information about CMHC, go to: http://www.cmhc-schl.gc.ca/en/corp/index.cfm. 

34 Building ENERGY STAR Qualified Homes 
Rebuild America 

Rebuild America is a voluntary program sponsored by the U.S. Department of Energy that helps community 

partnerships make profitable investments in existing buildings through energy-efficiency technologies. Rebuild 

America partnerships tailor its programs to local needs, choosing which buildings to renovate, how much energy 

to save, and the best technologies to use. Rebuild America focuses on several areas, including public and 

multifamily housing. Its website includes a Solution Center, which identifies tools and information to help improve 

energy-efficiency in retrofit and new construction projects, as well as low- and no-cost improvements. For more 

information about Rebuild America, go to: http://www.eere.energy.gov/buildings/program_areas/rebuild.html. 

Green Power Network 

The U.S. Department of Energy's Green Power Network provides news and information on green power markets and 

related activities. "Green power" refers to electricity supplied in whole or in part from renewable energy sources, such as 

wind and solar power, geothermal, hydropower, and various forms of biomass. More than 50 percent of retail customers in 

the U.S. now have the option to purchase a green power product directly from their electricity supplier. In addition, 

consumers can support renewable energy development through the purchase of green energy certificates. This site provides 

state-by-state information on Green Power Marketing in Competitive Electricity Markets and Utility Green Pricing 

Programs. In addition, the site lists marketers of Renewable Energy Certificates (RECs), also known as green tags or 

tradable renewable certificates, which represent the environmental attributes of the power produced from a renewable 

energy project. Whether or not consumers have access to green power through their local utility company or a competitive 

electricity marketer, consumers can purchase RECs without having to switch electricity suppliers. The website provides 

guidance on how large purchasers, such as businesses, government agencies, and universities can purchase green power. 

For more information about the Green Power Network, go to: http://www.eere.energy.gov/greenpower/. 

Brightfields 

In an effort to encourage productive use of brownfields and advance the use of clean and climate-friendly energy 

technologies, the Department of Energy is working with local governments and industry to link solar energy 

technologies to brownfields redevelopment. Brightfields seeks to address three of the nation's biggest challenges—

urban revitalization, toxic waste cleanup, and climate change—by bringing pollution-free solar energy and hightech solar manufacturing jobs to brownfields sites. Currently, DOE is working with cities in Illinois, California, 

Virginia, Minnesota, New York, and Connecticut to explore how brightfields can help their communities address 

concerns about land use, economic development, energy, air quality, and climate change. For more information 

about brightfields, go to: http://www.eere.energy.gov/. 

Building America 

Building America is a private/public partnership sponsored by the U.S. Department of Energy that conducts 

research to find energy-efficient solutions for new and existing housing that can be implemented on a production 

basis. For more information about Building America, go to: 

http://www.eere.energy.gov/buildings/building_america/. 

Million Solar Roofs Initiative (MSR) 

The Million Solar Roofs Initiative, sponsored by the U.S. Department of Energy, will enable businesses and 

communities to install solar systems on one million rooftops across the U.S. by 2010. The DOE is working with 

partners in the building and solar industries, local governments, state agencies, electric service providers, and 

nonprofit organizations to remove market barriers and strengthen grassroots demand for solar technologies. To 

meet the goal of one million solar rooftops, the initiative is developing a pool of existing Federal lending and 

financing options; soliciting voluntary participation by state and local governments and groups; accelerating the use 

of solar energy systems in Federal buildings; and leveraging other financial support and incentives. The initiative’s 

website includes a large collection of related links, plus a substantial list of documents related to solar water and 

space heating, case studies of successful solar power use, and information on training and education. The 

Building ENERGY STAR Qualified Homes 35
Additional Resources section features the solar yellow pages. The website also lists grant and incentive programs. 

For more information about MSR, go to: http://www1.eere.energy.gov/solar/solar_america/about.html. 

Wind Powering America 

The U.S. Department of Energy's Wind Powering America site provides state-by-state wind project information, 

including validated wind maps, anemometer loan programs, small wind guides, legislative briefings, wind working 

groups, and state-specific news. For more information about Wind Powering America, go to: 

http://www.eere.energy.gov/windandhydro/windpoweringamerica/index.asp. 

36 Building ENERGY STAR Qualified Homes 
Chapter 3: Incorporating ENERGY STAR Qualified Homes 

into HOME-Funded Activities 

This chapter describes the types of HOME-funded activities suitable for incorporating ENERGY STAR qualified homes, and offers 

practical guidance for successfully implementing ENERGY STAR in these activities. This chapter will help HOME PJs and their 

partners understand the key decisions that they face, good practices that support smooth implementation, and steps that they can take to 

build local capacity and support. 

3.1. ENERGY STAR Qualified Homes and HOME PJs 

HOME state and local PJs play an important role in the development of quality affordable housing. They decide 

what HOME-assisted housing gets built and where, when, and how it is built. A growing number of HOME PJs are 

encouraging or requiring HOME-funded projects to meet ENERGY STAR standards and obtain an ENERGY 

STAR certification. HUD urges PJs to promote or require that HOME-assisted housing qualify as ENERGY 

STAR projects, particularly for newly constructed single family and small rental housing. Attachment 3-1 shows 

the number of ENERGY STAR certified homes assisted by the HOME Program in 2007. 

3.2. HOME-Funded Activities Suitable for ENERGY STAR Qualified Homes 

ENERGY STAR qualified homes programs encourage builders to construct energy efficient single family and 

small multi-unit properties. 

To qualify as ENERGY STAR, projects must be three stories or less, and be certified by a HERS rater to use at 

least 20 percent less energy in northern states and 15 percent less energy in the South than the standard design 

required by the 2004 International Energy Conservation Code (IECC). The PJ can also adopt a higher standard, if 

it so chooses. 

Any existing HOME-funded activities that finance the development of residential structures that meet the height 

requirement may have the potential to meet ENERGY STAR standards. Several HOME eligible activities are 

suitable for ENERGY STAR projects, including: 

• New construction of single family units (most common); 

• Land acquisition; 

• Single family substantial rehabilitation; 

• Multifamily (not exceeding 3 stories) new construction; 

• Multifamily (not exceeding 3 stories) substantial rehabilitation; and 

• Homebuyer assistance. 

Building ENERGY STAR Qualified Homes 37
The PJ can determine to which of its HOME activities it will apply the ENERGY STAR standard. For example, a 

PJ could require or give funding preference to that low-rise (1- or 2- story) rental new construction projects that 

meet ENERGY STAR standards.14 

Regardless of whether a PJ directly subsidizes construction, PJs can 

require developers to meet ENERGY STAR standards, or offer 

incentives to those funding applicants who do so voluntarily, for 

instance, a PJ could: 

HUD CPD Field Offices facilitate 

information-sharing among PJs and CDBG 

grantees that are using and reporting on 

ENERGY STAR. PJs that are experienced 

with ENERGY STAR can help less 

experienced PJs by explaining how they 

implemented it. PJs that are willing to 

provide assistance in ENERGY STAR and 

those looking for support from a more 

experienced PJ should contact the local CPD 

Field Office for assistance. 

• Require that the acquisition of land for either new construction 

or substantial rehabilitation projects only receive HOME 

assistance if the development taking place on the land will 

achieve an ENERGY STAR certification; or 

• Encourage homebuyers participating in a down payment 

assistance program to purchase an ENERGY STAR certified 

home by providing a financial incentive (additional down 

payment assistance, or reduced interest rate) to those that do. 

The PJ can impose requirements or offer incentives regardless of whether the program is administered by a 

subrecipient, or whether the project is developed by a CHDO or for-profit developer. 

Build San Antonio Green: 

City Promotes ENERGY STAR in Affordable Housing 

The City of San Antonio, Texas has developed its “Build San Antonio Green” program 

which establishes requirements for any single family affordable housing development that 

uses city funds. Among its standards, it requires new homes to be built to the ENERGY 

STAR qualified home standard. As of the end of 2007, up to 200 single family affordable 

homes had been built in San Antonio using these guidelines. Of these, HOME funds were 

invested in a subdivision of 55 homes that were built according to the Build San Antonio 

Green standard. 

Lesson: Initially, some properties were only a few points shy of the allowable HERS score, 

and the units did not meet the ENERGY STAR standard. This was due, in part, to a 

mistake by project architects— small homes needed more thermal envelope per square 

foot than noted on the specifications. As a result, builders learned to run their home 

designs and specifications through an analysis to check that the design would pass prior to 

construction. In many cases, even when construction is completed, ENERGY STAR 

provides sufficient flexibility to correct problems if the HERS score falls short, 

particularly if the problems are caught early in the process. 

 

14 The regulation covering energy standards for HOME is 24 CFR 92.251(a)(1). The text cites the Model Energy Code issued 

by CABO, but HUD has interpreted this to apply to the successor IECC. 

38 Building ENERGY STAR Qualified Homes 
3.3. Key Steps When Incorporating ENERGY STAR into HOME-Funded 

Activities 

The ENERGY STAR program was designed to easily integrate into the housing development process, and already 

has an infrastructure to support its implementation in many states. Promoting ENERGY STAR homes is consistent 

with the HOME Program’s overall goal to increase the supply of adequate, affordable housing in the nation. 

HUD recommends that HOME PJs follow several key steps to adequately address ENERGY STAR standards in 

their HOME-funded activities. PJs will implement most of these steps up-front as they revise their activities to 

address ENERGY STAR. Once ENERGY STAR is incorporated, ongoing responsibilities are easily handled 

through routine functions performed by PJs. 

Below are nine key steps that HUD recommends that PJs follow: 

1. Identify Housing Activities Where ENERGY STAR Is Compatible with Local Program Goals 

Initially, PJs should examine their local housing priorities and identify the HOME-funded activities that are suitable 

for ENERGY STAR. Then, they should analyze how and where ENERGY STAR can play a role. HUD encourages 

PJs to consider incorporating ENERGY STAR into their single family and small rental development programs, 

particularly in areas where rising energy costs could affect the long-term financial sustainability of projects. 

In promoting energy efficiency, the PJ and the local development community have several choices about how to 

incorporate ENERGY STAR. They can: 

• Require developers to build ENERGY STAR qualified homes; 

• Offer incentives to encourage the development of ENERGY STAR qualified homes; or 

• Fund a pilot program to gain experience and build capacity in ENERGY STAR. 

2. Assess State and Local Contractor Capacity and Additional Sources of Support 

Once a PJ chooses the activities where it will incorporate ENERGY STAR, it must then examine the current level 

of local capacity to develop ENERGY STAR projects. A PJ should consider: 

• The overall number and capacity of developers and contractors working in its community; 

• The availability of HERS raters and experienced installers; 

• The availability of developers and contractors with experience in ENERGY STAR or similar projects that can 

serve as mentors or consultants; 

• The existence of active ENERGY STAR-related or other energy efficiency programs in the community, (such 

as DOE Weatherization), and the types of resources these programs offer; and 

• Funding institutions in the community with experience financing ENERGY STAR homes. 

Building ENERGY STAR Qualified Homes 39
Are Energy Efficiency Rebates Considered Match? 

All PJs must provide matching contributions valued at 25 cents for each dollar of HOME 

funds spent on affordable housing projects. Matching contributions must be made from 

non-federal resources. Energy efficiency rebates and assistance may count as match 

contributions when they are from a non-federal source and targeted to low-income 

households. Most rebates are available to all users (i.e., households of any income level), 

so they would not count as match. Further, depending on the design of the local HOME 

program, the developer may receive the rebate in which case the rebate would be included 

in the budget as a cost savings and would not count as a match contribution. For more 

information about counting energy efficiency rebates as match, contact the HUD Field 

Office representative. 

Based on the results of its assessment of capacity, PJs should classify their local ENERGY STAR capacity as 

strong, moderate, limited, or none using the guidelines below. 

• Strong. The state or area has a network of experienced HERS raters and there are several developers with 

affordable housing experience who work in the area and have successfully developed ENERGY STAR homes. 

• Moderate. The state or area has a limited supply of experienced HERS raters and at least two or three 

reputable developers in the area have experience developing ENERGY STAR homes. These developers need 

not have affordable housing development experience. 

• Limited. There are no HERS raters currently working in the state, but there are raters from other nearby states 

who have expressed a willingness to work with the PJ if it promotes ENERGY STAR in its HOME activities. 

Developers have little or no experience with ENERGY STAR, but are interested in gaining experience. 

• None. There are no HERS raters currently working in the state, and little interest from the developer 

community in gaining experience with ENERGY STAR. 

Attachment 3-2 identifies the number of HERS raters in each state. EPA updates this information quarterly. 

Once PJs have assessed the capacity in their communities, they can estimate how many ENERGY STAR projects 

that they might be able to develop currently, and what type of investments and partnerships they might need to 

develop to expand the number of ENERGY STAR qualified projects in the future. 

40 Building ENERGY STAR Qualified Homes 
3. Decide Whether to Encourage or Require ENERGY STAR 

The PJ should decide whether to require or 

encourage ENERGY STAR projects, based on its 

assessment of local capacity: 

• In areas with moderate to strong capacity to 

develop ENERGY STAR projects, the PJ 

should consider making ENERGY STAR a 

requirement, particularly for newly constructed 

single family housing and small rental housing. 

• In areas with moderate or limited capacity, the PJ 

should consider offering incentives to developers 

to build ENERGY STAR projects. Making 

ENERGY STAR a requirement in these PJs might 

hurt unit production. Examples of incentives include: 

Pomona, California along with several other communities in 

Southern California, is one of the first communities to begin 

the process of incorporating ENERGY STAR standards into 

its HOME Program activities. Pomona plans to work with its 

CHDO developers to strengthen their understanding of the 

ENERGY STAR qualified homes program and offer them 

technical assistance in any capacity building efforts necessary to 

implement the ENERGY STAR standards. 

Promoting ENERGY STAR through CHDOS: 

Pomona, CA 

– Rate proposals according to the efficiency of the project design specifications (either by offering bonus 

points for efficiency above a HERS score of 100, or subtracting points from the total score if the finished 

project will not meet ENERGY STAR standards); 

– Offer density bonuses to developers that follow ENERGY STAR standards; 

– Waive fees or regulatory restrictions on projects that follow ENERGY STAR standards; 

– Streamline processing and/or approval of projects that follow ENERGY STAR standards; 

– Increase funding subsidy to pay up-front costs for projects with efficient systems; and/or 

– Increase funding subsidy to pay the cost of the inspections that are required to achieve the ENERGY 

STAR qualified home label. 

• In areas with limited or no capacity, PJs should consider establishing a pilot program for one or two years, 

alone or in conjunction with offering incentives to help build experience and local capacity. Pilot programs can 

help increase capacity, as well as provide valuable lessons about the best ways for PJs to support ENERGY 

STAR projects effectively. Several years ago, HUD’s Region 1 suffered from a shortage of HERS raters, but 

HUD’s CPD field office pushed for certification in its ENERGY STAR projects. In so doing, communities in 

Region 1 experienced a market response from contractors who realized the benefit of receiving their HERS 

rater certification. 

Building ENERGY STAR Qualified Homes 41
Results of ENERGY STAR Policy in Utah 

The State of Utah’s Division of Housing and Community Development manages the 

Olene Walker Housing Loan Fund (OWHLF). OWHLF functions as a revolving loan 

fund that uses state legislative appropriations, U.S. Department of Agriculture (USDA) 

Rural Development program funding, and HUD HOME allocations for new construction 

of, and renovations to affordable housing. 

Utah’s ENERGY STAR policy 

• All new construction projects receiving OWHLF funding are required to adopt 

ENERGY STAR standards. 

• All rehabilitation projects receiving OWHLF funding are encouraged to adopt 

ENERGY STAR standards. 

• OWHLF offers financial incentives to developers that incorporate ENERGY STAR 

standards, including reduced interest rates and greater loan amounts. 

Costs of ENERGY STAR 

• Incremental per unit development costs are: 

– Average of $2,300-$2,500 per single family unit. 

– Average of $1,900-$2,100 per multifamily unit. 

– Results in additional loan cost of only $85 per year for homebuyers. 

• Cost to Obtain ENERGY STAR qualification rating 

– $250 per single family unit. 

– $350 per multifamily unit. 

Savings of ENERGY STAR 

Single-family ENERGY STAR qualifying homes save about $200 per year in utility savings. 

Example: A typical single family home located in Utah County has yearly energy costs of 

$1,429 without ENEGRY STAR and $974 with ENERGY STAR. This represents a 32 

percent savings to the homeowner. 

Results of ENERGY STAR Policy 

During 2007, 180 multifamily and 34 single family units were completed and qualified for 

ENERGY STAR. To date, OWHLF has funded the development and renovation of 

1,599 units of affordable housing that meet ENERGY STAR. 

For more information about OWHLF, see its website: 

http://community.utah.gov/housing_and_community_development/OWHLF/. 

42 Building ENERGY STAR Qualified Homes 
4. Revise HOME Program Procedures and Documents to Ensure that Developers Build 

According to ENERGY STAR Standards 

If a PJ decides to require that projects receiving HOME funds meet ENERGY STAR standards, its HOME 

Program descriptions, written guidelines, funding announcements, and written agreements with developers should 

state explicitly that HOME funding is contingent on the project meeting ENERGY STAR standards, and 

receiving an ENERGY STAR certification following the completion of construction. 

Note: Incorporating ENERGY STAR standards into HOME-funded activities does not require specific additions 

to the local building code. 

Sample language to incorporate ENERGY STAR into program descriptions or written guidelines is shown below: 

“To address the priority [PJ Name] places on energy efficiency and sustainability in HOME-funded projects, all 

new and substantial rehabilitation in residential buildings up to three stories that receive HOME funds must meet 

the standards for ENERGY STAR Qualified New Homes. All procedures used for this rating shall comply 

with National Home Energy Rating System guidelines. To ensure that these projects meet the required standards, 

[PJ Name] will require its ENERGY STAR verification from a HERS certified rater as evidence of 

compliance with funding requirements.”15

If a PJ requires ENERGY STAR and a Builder Option Package exists for the PJs climate zone, the PJ also could 

establish in its written guidelines and construction standards that the projects that must meet those specifications. 

If a PJ does not require projects to meet ENERGY 

STAR standards but wants to encourage ENERGY 

STAR projects by offering incentives, this intent should 

likewise be written into program descriptions, 

guidelines, and funding announcements. For projects 

that receive the incentive (e.g., bonus points, 

supplemental funding), the written agreements should 

specify that ENERGY STAR certification is a required 

condition of the funding or financing received. 

Many communities are responding to HUD’s encouragement to 

promote ENERGY STAR. Richland, WA required ENERGY 

STAR standards and certification in its 2006 HOME project 

funding for the development of three single family homes. 

Despite the additional ENERGY STAR requirements, the City 

found that it received the same response from developers as to 

other RFPs that did not require ENERGY STAR. The 

ENERGY STAR requirement in the RFP allowed the City to 

help subsidize the increased affordability of energy efficient, 

sustainable homes for low-income households. 

Promoting ENERGY STAR in HOME: Richland, WA 

Sample language to require ENERGY STAR projects 

that could be incorporated into a program funding 

announcement or Request for Proposal (RFP) is 

shown below: 

“All new and substantial rehabilitation in residential buildings up to three stories shall be designed to meet the 

standard for ENERGY STAR Qualified New Homes. All procedures used for this rating shall comply with 

National Home Energy Rating System guidelines.”16

 

15 U.S. Department of Housing and Urban Development. “ENERGY STAR for Grantees” training presentation. 

September 2004, updated August 2007. 

16 U.S. Department of Housing and Urban Development. “ENERGY STAR for Grantees” training presentation. 

September 2004, updated August 2007. 

Building ENERGY STAR Qualified Homes 43
Sample language to encourage ENERGY STAR projects that could be incorporated into a program funding 

announcement or RFP is shown below: 

“All new or substantial rehabilitation in residential projects up to three stories that meets the standards for 

ENERGY STAR qualified homes will receive an additional 10 rating points. All procedures used for this rating 

shall comply with National Home Energy Rating System guidelines.”17

If additional funding is given to developers as an 

incentive to build ENERGY STAR projects, written 

agreements with developers should make clear the 

amount of additional funding given and obligate the 

developer to follow ENERGY STAR standards or 

return the incentive funding to the PJ. 

Remember, when determining utility allowances, tenant 

behavior impacts the utility consumption. PJs should 

encourage property owners to instruct tenants on how to use 

the unit’s energy efficiency features, and provide other 

helpful tips on energy conservation. If tenants are leaving 

windows open in the winter or keeping air conditioning units 

on while they are not home in the summer, utility 

consumption will increase. 

3. Make adjustments to the utility allowances based on 

actual data. 

2. Review the actual utility consumption and costs after 

first year of operation. The PJ should ask the owner to 

collect and submit copies of utility bills from all tenants 

for one year and analyze projected versus actual 

consumption. 

1. Anticipated utility consumption. For newly 

constructed ENERGY STAR properties, estimate the 

utility usage on engineering projections. For rehabilitated 

ENERGY STAR properties, estimate projected utility 

consumption based on the history of the property’s utility 

consumption (including performance data following the 

completion of the improvements), if available. 

For ENERGY STAR properties, the PJ should work with 

the property owner to gather data on actual utility usage, and 

actual utility costs. It is appropriate to base the utility 

allowance on actual usage, as follows: 

HOME requires PJs to provide a utility allowance to rental 

property owners, where the tenants are paying their own 

utilities. The utility allowance represents the average cost of 

utilities, and is deducted from the HOME Rent limits to 

determine the maximum amount of rent that can be charged 

to a tenant. For ENERGY STAR properties, PJs may find 

that actual utility costs are far less than the PJ’s utility 

allowance. PJs should consider adopting a different utility 

allowance for ENERGY STAR properties. 

Determining Utility Allowances for 

ENERGY STAR Properties 

5. Train Program Staff 

Although PJ staff does not need in-depth knowledge 

of the technical requirements associated with the 

ENERGY STAR program, a PJ that adopts 

ENERGY STAR should take steps to ensure that 

staff has a functional understanding of the program 

in order to answer questions and refer developers to 

appropriate resources. Basic knowledge of the 

ENERGY STAR program is important for writing 

any adopted ENERGY STAR requirements into loan 

and other program documents. 

6. Conduct Outreach and Education to 

Program Partners and ENERGY STAR 

Service Providers 

To further promote the adoption of ENERGY 

STAR standards, a PJ may link developers to state or 

local ENERGY STAR or other energy organizations. 

As PJs identify these partners, they should identify 

the types of services and resources they offer 

developers building ENERGY STAR projects, and 

the procedures for requesting funding or technical 

resources. By educating developers about these 

organizations and the resources they offer, PJs offer 

additional tools that developers can leverage for their 

ENERGY STAR projects. 

 

17 U.S. Department of Housing and Urban Development. “ENERGY STAR for Grantees” training. September 2004, 

updated August 2007. 

44 Building ENERGY STAR Qualified Homes 
7. Implement Procedures for Monitoring Developer Performance 

As part of the ENERGY STAR qualified homes certification process, a HERS rater must inspect and verify that 

the building meets required efficiency standards. Therefore, a PJ does not need to incorporate new inspection 

criteria into its existing procedures for HOME-funded projects. It must incorporate the HERS rater’s inspection 

into its process, and the HERS rater must verify that the project complies with ENERGY STAR requirements and 

that the developers have adhered to the construction requirements. Proof of this verification should be 

documented in the project file with all other HOME-required documentation. 

8. Continue Periodic Outreach and Education 

As PJs follow these steps to incorporate ENERGY STAR into their HOME Program activities, they will become 

increasingly familiar with community partners that are working to promote energy efficiency and ENERGY 

STAR. PJs should regularly conduct outreach to attract new partners, as well as to maintain local support and 

attract additional developers. As developers increasingly respond to ENERGY STAR goals, PJs can educate them 

about the partners and resources that exist to help them do so. 

9. Report Completed ENERGY STAR Housing Units in IDIS 

Since implementing ENERGY STAR is a priority for HUD, the number of ENERGY STAR homes created 

through the HOME Program is one of the program’s outcome measures. The Integrated Disbursement and 

Information System (IDIS) allows the PJ to indicate whether a project developed with HOME funds meets 

ENERGY STAR standards and received an ENERGY STAR certification. HUD requires that PJs report any 

certified ENERGY STAR units in the appropriate IDIS field; this field may be left blank if no such units have 

been developed. By developing and tracking ENERGY STAR units, PJs gain recognition for their 

accomplishment. Reporting ENERGY STAR units in IDIS also allows HUD to show the impact that the HOME 

Program has achieved in creating energy efficient homes. More importantly, however, IDIS compiles information 

about projects supported with HOME funds nationwide and tracks program progress at a national level. Congress 

uses this information to determine whether HUD is meeting its stated objectives and allocates funding according 

to the program’s ability to meet national priorities. As energy efficiency grows in importance on the national policy 

agenda, this information will help policymakers set appropriate expectations to balance housing production goals 

with achieving energy efficiency in housing development programs. 

PJs need adequate procedures to track ENERGY STAR homes and accurately report the number of units 

constructed according to ENEGY STAR standard. The PJ can only report in IDIS those units that pass the 

rigorous ENERGY STAR certification process. Accurately reporting ENERGY STAR homes in IDIS allows the 

PJ to track its success with ENERGY STAR requirements or incentive programs. 

3.4. Good Practices to Support Success 

In addition to the key steps for implementing ENERGY STAR in HOME-funded activities, there are additional 

actions that PJs can take to build local capacity, public support, and achieve the greatest impact with homeowners. 

Best practices involve educating the community about the ENERGY STAR program and its goals and the 

resources that exist to help them; building the capacity of developers; and educating homebuyers of ENERGY 

STAR homes about ways to realize the full benefits and savings of their new homes. 

Educate Key Local Stakeholders about ENERGY STAR 

Before incorporating ENERGY STAR into their HOME-funded activities, some PJs may need to build support 

among their stakeholders, including local government entities, property developers and owners, affordable housing 

advocates, and program beneficiaries. 

Local stakeholders, particularly developers, may have concerns about the higher up-front costs of ENERGY 

STAR qualified products and homes. PJs may need to educate their stakeholders and demonstrate that even where 

the up-front costs are greater for ENERGY STAR, the cost-savings that result from the improved efficiency pay 

Building ENERGY STAR Qualified Homes 45
for those increased costs over time. Additionally, because of the energy savings achieved through ENERGY 

STAR and the willingness of other agencies to fund the up-front investment needed, a developer may be better 

able to leverage funds to augment his/her budget. By leveraging financial support from other agencies, PJs may be 

able to satisfy HOME match requirements as well. 

If a PJ meets resistance within the local development community, it might consider funding a pilot program to 

finance a small number of ENERGY STAR projects proposed by different developers. The PJ should take time to 

measure and analyze the results of the pilot. Once the pilot is complete the PJ can share the results/benefits and 

the lessons of the pilot with the development community. 

Resources are available through ENERGY STAR to assist PJs in “marketing” ENERGY STAR to their 

stakeholders, including: 

• Marketing materials and training resources; and 

• Publications, such as annual reports, brochures, posters, and guides. 

These and other resources are available at www.energystar.gov. 

Identify and Supervise Developers with Limited Experience 

Developers with relatively limited or no capacity and/or experience building ENERGY STAR projects often 

encounter a number of challenges in the development process. These can cause delays or unexpected costs and 

may result in the home not being able to obtain the final certification. Sometimes these factors can cause 

development costs to escalate beyond the point of feasibility and lead to the abandonment of a project or the 

developer’s future reluctance to pursue similar projects. Some common challenges confronted by developers with 

limited experience developing ENERGY STAR projects include: 

• Coordinating contractors. Often a developer that has not built projects to ENERGY STAR standards in the 

past may need to use new, or additional, contractors in an ENERGY STAR project because of the contractor’s 

familiarity with ENERGY STAR building practices. Finding and working with new or additional contractors 

can add time to the project, as more entities must coordinate with one another’s work schedules. When 

developing ENERGY STAR projects, the timing for contractors may differ from past projects and the 

developer should build time into the schedule for contractors to work together to install efficiency measures as 

well as for necessary inspections at appropriate stages of the project. This additional coordination may catch an 

inexperienced developer off guard. Inadequate planning for, or coordination of, contractors can result in delays 

and cost overruns in projects. 

• New technologies. ENERGY STAR buildings often use building techniques and technologies at the edge of 

innovation in construction practices. A CHDO, developer, or contractor with little previous experience in 

similar projects may be unfamiliar with these building components and technologies. This can lead to delays 

and additional costs because of construction mistakes and the time it takes to “learn on the job.” 

• Experience obtaining third-party certification. Without previous experience in developing ENERGY 

STAR projects, a CHDO, developer, and/or builder may be unfamiliar with how and when to work with the 

HERS rater and the steps necessary to obtain the ENERGY STAR certification. If the HERS rater is not 

involved at the proper steps in the process, the design, construction, and performance of the building is 

jeopardized; possibly leading to delays and additional costs to revise project plans (at best) or the failure of the 

building to achieve ENERGY STAR efficiency requirements and third-party verification (at worst). 

46 Building ENERGY STAR Qualified Homes 
The challenges described above increase the performance risk during the development process. A PJ can take steps 

to reduce these risks when working with less experienced developers and CHDOs by: 

• Reviewing the CHDO’s/developer’s capacity and procedures. Consider the capacity of the 

CHDO/developer and determine if it has adequate plans and procedures to manage the project, hire and 

coordinate the appropriate contractors, involve HERS raters, and maintain appropriate documentation. For 

developers with limited ENERGY STAR experience, consulting with an advisor or HERS rater early in the 

design process can help ensure that initial project plans do not require substantial reworking after the HERS 

rater’s review of the plans. This saves time and money. 

• Provide technical assistance throughout process. PJs also may provide technical assistance to less 

experienced developers to help them identify contractors with ENERGY STAR experience, and guide them to 

address the challenges described above. When hiring a construction contractor, the developer should carefully 

review the experience and capabilities of the builder to determine if they have adequate knowledge and capacity 

to reasonably complete the project in an efficient and timely manner. Familiarity and experience in the 

appropriate technologies, previous experience building ENERGY STAR qualified homes, and the adequacy of 

procedures to involve HERS raters at the appropriate points in the process should be considered. If the builder 

chooses to use a Builder Option Package, the developer should review the plans to assess the feasibility of 

incorporating the recommended systems. 

Educate Homeowners to Maintain Energy Efficiency Features and Reduce Energy Costs 

While Maintaining Comfort 

PJs can play an important role by educating homeowners about ways they can reduce energy consumption and, 

therefore, their energy costs. Energy use can be reduced when residents change their behaviors and break certain 

energy use habits in the home, such as turning out lights that are not in use, or turning off the heating/cooling 

system when leaving the house. In addition, consumers need to learn how to use their energy equipment 

effectively but efficiently. For example, consumers can save energy by: 

• Using a programmable thermostat correctly; 

• Using a ceiling fan in addition to (or instead of) the air conditioner, to distribute cool air so that less work is 

needed to make the room feel cool; 

• Using cold or warm water in laundry batches; and 

• Doing laundry or dishes only when a full load needs to be cleaned. (This saves water as well.) 

Consumers must also learn to maintain their energy efficiency products so that they continue to function as they 

were designed. In some cases, consumers believe ENERGY STAR products to be less efficient than standard 

products because they do not use them effectively. PJs should require or encourage the CHDOs and developers 

that build ENERGY STAR homes to educate the homebuyers about how to use the products and systems in their 

homes appropriately. At a minimum, developers and CHDOs should provide residents with the manuals that 

accompany the energy efficiency features in their home.18 A PJ might further encourage the developer of a project 

to create educational packets or demonstrations to orient the resident in an ENERGY STAR unit to the features 

and proper use of those features. Working with consumers about how to correctly use the ENERGY STAR 

components of their homes will enable them to get the maximum performance from these measures while 

efficiently using energy. 

 

18 Domus, Paul Knight. Your Energy Savings: A Resident’s Guidebook. (Midwest Edition) Partnership for Affordable Housing, March 

1998. Available online at: http://www.hud.gov/offices/cpd/energyenviron/energy/library/documents/residenthndbk/mwhndbk.pdf. 

Building ENERGY STAR Qualified Homes 47
Attachment 3-1: 

HOME-Funded Certified ENERGY STAR Units by State (FY 2007) 

ICF20080304KXA002 

48 Building ENERGY STAR Qualified Homes 
Attachment 3-2: 

HERS Raters in United States, by State 

This list shows the number of HERS raters certified to work in each state as of February 2008. EPA updates these 

figures quarterly. Note that some raters may be certified to work in a state, but are physically located in a 

neighboring state. 

State Number of HERS Raters* 

Alabama 10 

Alaska 11 

Arizona 17 

Arkansas 10 

California 58 

Colorado 25 

Connecticut 14 

Delaware 9 

District of Columbia 7 

Florida 35 

Georgia 23 

Hawaii 7 

Idaho 14 

Illinois 25 

Indiana 25 

Iowa 13 

Kansas 14 

Kentucky 17 

Louisiana 7 

Maine 8 

Maryland 18 

Massachusetts 13 

Michigan 35 

Minnesota 17 

Mississippi 7 

Missouri 13 

Montana 9 

Nebraska 9 

Building ENERGY STAR Qualified Homes 49
State Number of HERS Raters* 

Nevada 19 

New Hampshire 18 

New Jersey 15 

New Mexico 16 

New York 50 

North Carolina 45 

North Dakota 6 

Ohio 25 

Oklahoma 11 

Oregon 9 

Pennsylvania 27 

Rhode Island 8 

South Carolina 24 

South Dakota 4 

Tennessee 20 

Texas 54 

Utah 9 

Vermont 11 

Virginia 30 

Washington 10 

West Virginia 4 

Wisconsin 31 

Wyoming 6 

* Information about the number of HERS raters was collected from the ENERGY STAR database of HERS raters for New Homes and is 

Current as of February of 2008. 

 See http://www.energystar.gov/index.cfm?fuseaction=new_homes_partners.showHomesResults&partner_type_id=RATER&s_code=ALL

50 Building ENERGY STAR Qualified Homes 
Chapter 4: Incorporating Energy Efficiency Measures into 

Moderate Rehabilitation and Other Activities 

This chapter describes different approaches that PJs can use to incorporate energy efficiency improvements into those programs where 

achieving ENERGY STAR standards is not feasible: rehabilitation projects and large unit development that is greater than three 

stories high (new construction or rehabilitation). Energy efficiency is desirable in these projects because it benefits the occupants and the 

owners by lowering operating costs and increasing comfort for residents. 

Specifically, this chapter: 

• Identifies steps PJs can take to incorporate energy efficiency improvements into HOME-funded rehabilitation programs; 

• Describes typical sources of energy loss in older homes and identifies low-cost, and moderate- or high- cost improvements that address them; 

• Reviews methods PJs can use to select energy efficiency measures to use in specific rehabilitation projects; 

• Identifies steps PJs can take to incorporate energy efficiency improvements into HOME-funded development of multi-unit properties 

greater than three-stories in height; (Note: This subject is addressed separately toward the end of this chapter); and 

• Explains the importance of educating homeowners and occupants in the use and operation of the energy efficient measures, in order 

to minimize their utility costs and improve their comfort. 

Even though rehabilitation activities and large multifamily property development do not fall within ENERGY STAR standards, 

energy efficiency measures in these development activities have many benefits: 

• Energy savings for residents and property owners, resulting in greater financial stability; 

• Healthier environment for residents; 

• Improved marketability of properties; 

• Long-term maintenance savings through the use of more durable products and building techniques; and 

• Increased affordability of housing through reduced utility costs. 

Building ENERGY STAR Qualified Homes 51
4.1. Steps to Incorporate Energy Efficiency Improvements into Rehabilitation 

Activities 

In a moderate rehabilitation project, the scope and scale of the work generally is not extensive enough to achieve the 

standards for ENERGY STAR qualified homes. By making prudent and thoughtful choices about which energy 

efficiency measures are appropriate to a rehabilitation project, given its scope and budget, PJs can still achieve 

significant energy savings in rehabilitation projects. PJs need to develop their own standards and procedures for 

making these determinations based on analysis of what makes the most financial sense for a project. 

It is helpful for the PJ to develop general guidance on how energy efficiency measures should be incorporated into its 

rehabilitation program(s). HUD encourages PJs to establish minimum guidelines for energy efficiency in rehabilitation 

projects and to encourage partners to apply additional measures which will improve energy efficiency. Within the 

framework of these guidelines, PJs can then evaluate specific energy efficiency needs on a project-by-project basis. 

The steps below present a variety of approaches to incorporating energy efficiency measures into PJ HOME 

programs. In many respects, these steps parallel the steps outlined in Chapter 3 for incorporating ENERGY STAR 

qualified homes standards into PJ procedures, and the steps can be implemented in a similar manner. However, 

because rehabilitation projects vary in scale and scope, PJs face some additional decisions when considering how 

to best incorporate greater energy efficiency measures into its rehabilitation activities. 

Summary of Suggested Steps 

for Incorporating Energy Efficiency into Rehabilitation Programs 

Step 1 Identify local capacity and supplemental funding that can support energy 

efficiency measures. 

Step 2 Adopt procedures and policies that reflect energy efficiency measures’ 

compatibility with local program goals. 

Step 3 Determine programmatic roles and responsibilities for staff and partners. 

Step 4 Conduct outreach to program stakeholders to educate, involve, and inform. 

Step 5 Revise HOME program procedures, property standards, and construction 

guidelines to reflect new energy efficiency policies. 

1. Identify Local Capacity and Supplemental Funding 

In many communities there are a variety of resources that may be available to support energy efficiency measures. 

PJs should: 

• Seek and reach out to potential partners; 

• Consider how to incorporate available resources into their programs; 

• Assess the experience and capacity of the contractor community, including contractors’ ability to respond to 

new energy efficiency standards; and 

• Enhance communication and coordination of efforts between stakeholders. 

52 Building ENERGY STAR Qualified Homes 
Understanding the capacity of local contractors and suppliers can help PJs design their programs. For example, by 

knowing the number of qualified auditors or building performance inspectors that a PJ can rely on, the PJ has an 

idea about how many projects it can inspect for energy performance each year and the impact such inspections will 

have on the project’s schedule. Exhibit 4-1 identifies the types of organizations PJs should identify and contact. 

In rare circumstances, a PJ may find that its community does not currently have the resources to perform energy 

audits or provide low-income households the assistance necessary to implement efficiency measures. In these 

circumstances, PJs can support the community’s effort to enhance its energy efficiency infrastructure by: 

• Supporting efforts to increase contractor capacity by increasing training and mentoring opportunities; 

• Developing its own in-house expertise in energy efficiency measures; 

• Cross-marketing and promoting energy efficiency programs and the HOME Program to potential participants; 

• Identifying funding sources to support program activities; and 

• Providing quality assurance for activities by promoting best practice activities. 

2. Adopt Procedures and Policies that Reflect Energy Efficiency Measures’ Compatibility 

with Local Program Goals 

Unlike new construction activities, the range of rehabilitation activities a PJ supports can span from modest to 

substantial funding per unit (i.e., from one thousand dollars per unit to over ten thousand dollars per unit). 

Therefore, a PJ should assess its various rehabilitation programs and determine the capacity of each program to 

incorporate greater energy efficiency, and the potential cost and benefit of doing so. For example, a PJ may 

determine that when it provides a modest amount of funds for rehabilitation combined with homebuyer 

assistance, it is both cost-effective and appropriate to require an energy audit. But, it may determine that it is not 

appropriate to require homebuyers to secure any specific energy efficiency measures. However, this same PJ may 

determine that when it provides substantial development funds for rehabilitation of homes for homebuyers, it is 

cost-effective and appropriate to require the developer to undertake certain measures to achieve energy efficiency. 

Each PJ should incorporate energy efficiency into as many of its HOME Program activities as reasonable. 

Building ENERGY STAR Qualified Homes 53
Potential PJ Partners in Energy Efficiency 

Home Performance with ENERGY STAR partners. Home Performance with ENERGY 

STAR, a national program from the EPA and DOE, offers a comprehensive, wholehouse approach to improving energy efficiency and comfort at home, while helping to 

protect the environment. The program includes home improvement inspectors who 

perform energy audits, and provide information about the latest technologies for 

improving energy efficiency, and resources to help make existing residential buildings 

more efficient. The ENERGY STAR inspections involve diagnostic testing that is more 

extensive than an energy audit, and includes an examination of air filtration, duct leakage, 

and combustion safety. This testing is the most thorough evaluation available. 

The program was initiated as a market-based approach to increasing energy efficiency in 

existing housing, and the program has recently expanded to include affordable housing. 

Currently, New York State and Wisconsin fund affordable housing demonstrations of the 

program.* The ENERGY STAR Program sponsor monitors the quality of work 

performed by all participating contractors under a quality assurance plan. This must 

include either a rigorous technician certification and contractor accreditation process; or 

third-party inspections on at least 15 percent of completed work. 

In each of the communities in which it operates a local sponsor (such as nonprofits and 

utility providers) manages the program and recruits home improvement contractors who 

are qualified to perform comprehensive home assessments. See Attachment 4-1 for a list 

of areas that offer Home Performance with ENERGY STAR, as of 2007. PJs should 

contact the Home Performance with ENERGY STAR partner in their region or 

community, to learn about what services and support, they can provide and if any local 

organizations plan to join. 

• Weatherization agencies. These agencies provide technical expertise; conduct energy 

audits (by qualified inspectors); and identify cost-effective energy saving techniques, 

diagnostic equipment, and new sources of financial leverage. There are ample 

opportunities for PJs to form partnerships with these organizations. For instance, a PJ 

could contract with a weatherization agency to inspect and test buildings before 

rehabilitation activities, in order to identify the best energy efficiency measures for a 

particular project. 

• Local utility companies. Utility companies often provide free or low-cost energy 

audits for their customers and might be willing to partner with a PJ to conduct energy 

inspections of homes slated for rehabilitation. Additionally, many local utility 

companies offer financing options for buyers purchasing ENERGY STAR appliances 

or undertaking other energy efficiency measures. 

• Regional energy consortia and alliances. Many communities have consortia of 

local energy stakeholders (such as energy companies, advocates, and policy makers) 

who promote energy efficiency measures in a community. These groups often have 

knowledge of, or access to, resources to support energy efficiency actions and can help 

grow the capacity of local contractors or promote a PJ’s activities. 

* Home Energy has published several articles that describe the progress of Home Performance with ENERGY 

STAR, including in March/April 2003 and July/August 2006. Available online at: 

http://www.homeenergy.org/.

54 Building ENERGY STAR Qualified Homes 
The PJ should consider a series of factors when determining what level of energy efficiency measures it wants to 

incorporate into its different rehabilitation activities, including: 

• Amount of assistance. Generally, the greater the amount of assistance the PJ provides, the more appropriate 

it is to incorporate more comprehensive energy efficiency guidelines. 

• The payback period. Generally, it is appropriate to require developers to undertake measures with a short 

payback period and encourage developers to undertake measures with a longer payback period. A PJ may 

consider more comprehensive requirements when there is an ongoing relationship with the project or 

beneficiary. 

• Beyond economic benefits. Some energy efficiency measures are appropriate even if the economic benefits 

are modest, or when the cost of undertaking certain measures is equal to or greater than the energy cost savings 

that will be realized. HUD allows HOME funds to be used in these situations, when there are additional 

benefits such as improved health and safety of residents or mitigation of the risk of spikes in future energy 

costs. A PJ should consider those energy efficiency measures that may go beyond economic benefits. 

The section of this chapter, “Methods for Selecting Energy Efficiency Measures in HOME-Funded Activities,” 

offers additional guidance on how to select specific improvements on a project-by-project basis, in different types 

of rehabilitation. 

3. Determine Programmatic Roles and Responsibilities 

As a PJ works to design how it will incorporate greater energy efficiency into its rehabilitation activities, it must 

consider the role its staff and partners will play in implementation to ensure that energy efficiency measures are 

adopted and installed properly. There are three basic approaches a PJ may consider. 

• Develop in-house expertise. In addition to creating the written standards, a PJ may train its own staff, such as 

its rehabilitation specialists, how to conduct home energy audits or building performance inspections; and how 

to analyze the cost and pay-back periods of energy efficiency measures. Based on its own analysis, the PJ could 

decide which specific energy efficiency measures to include in rehabilitation job. 

• Use local subrecipient. If the capacity exists in the community, it may be more efficient for a PJ to work 

through a subrecipient. A PJ can require its subrecipient to conduct or obtain the energy audit or building 

performance inspection and use the subrecipient’s assessment to make a determination about which energy 

efficiency measures to undertake in each rehabilitation job. The PJ must monitor the subrecipient to ensure 

that the activities are conducted in accordance with the PJ’s guidelines and standards. 

• Use contracted energy auditors. If a PJ does not want to develop its in-house capacity, but wants to have 

more control over the process than contracting with a subrecipient to obtain energy audits, a PJ may contract 

with qualified local contractors to conduct energy audits or building performance inspections. The PJ would 

require the contractor to submit a report with recommended energy efficiency measures and estimated costs 

and savings directly to the PJ. The PJ would also need to monitor the contractor. 

The need for PJ staff training depends on the approach the PJ takes, what responsibilities its staff carries out, and 

what tasks are undertaken by third parties. If the PJ chooses to use third parties, its staff may not need in-depth 

knowledge of the technical requirements associated with conducting energy audits or Home Performance with 

ENERGY STAR inspections. However, any PJ that adopts energy efficiency activities within its HOME activities 

will benefit from educating staff about the ENERGY STAR program and energy efficiency. Staff should have at 

least a functional understanding of energy efficiency measures and available resources so that they can monitor 

their partners effectively, and answer questions from subrecipients or program participants. 

Building ENERGY STAR Qualified Homes 55
4. Conduct Outreach to Program Stakeholders 

When a PJ considers changes or modifications to its programs to incorporate energy efficiency, it should reach out 

to the homeowners and developers that are affected by the program, as well as the utility companies and energy 

auditors and other funding sources that may contribute to the program. HUD recommends that the PJ’s outreach 

efforts address the three objectives below: 

• Explain the benefits and purpose of the proposed changes. Some partners or stakeholders may have 

concerns about cost implications of incorporating energy efficiency measures into the housing rehabilitation 

programs and may not fully understand the benefits of such measures. Discussing the benefits and goals for the 

changes will help ensure that partners and stakeholders are on board with proposed changes. 

• Use stakeholder input to inform decisions. Partners and stakeholders can provide valuable insights about 

how best to incorporate energy efficiency measures into HOME-funded activities. Getting input from partners 

and stakeholders early in the process can give the PJ time to incorporate suggestions into decisions about 

program changes and respond to any concerns. 

• Educate stakeholders about changes in procedures. As part of initial outreach efforts, and once program 

changes have been finalized, a PJ should explain the changes so the partners and stakeholders understand them. By 

taking the time up-front to present the changes and answer questions, a PJ reduces the likelihood of 

misunderstandings or misinformation about program changes, which could negatively impact their implementation. 

5. Revise HOME Program Procedures, Property Standards, and Construction Guidelines 

If a PJ chooses to require or encourage developers that participate in its rehabilitation program(s) to undertake an 

energy audit or building performance inspection and/or incorporate energy efficiency measures, this should be 

reflected in the PJ’s HOME written guidelines and written agreements. Addressing energy efficiency in rehabilitation 

requires crafting guidelines based on different rehabilitation activities or levels of rehabilitation assistance. 

HOME requires that rehabilitation projects meet the PJ’s written rehabilitation standard, state or local housing 

codes, or, in their absence, a national model code. As of the publication date of this manual, energy efficiency 

measures beyond these standards are not required by HUD. However, HUD encourages PJs to develop program 

guidelines that result in improved energy efficiency performance beyond the minimum standards required. 

PJs should consider the following issues and questions when they determine how best to create their energy 

efficiency guidelines for rehabilitation programs. 

• Use of energy audits or building performance inspections for rehabilitation projects that conclude with 

recommendations and estimated costs and savings for energy efficiency measures. PJs should assess whether 

they want this for all rehabilitation; or whether to make it optional for smaller rehabilitation projects, and/or 

for homeowner rehabilitation activities. In making this decision, PJs should consider: 

– Is there a local provider(s) that can perform energy audits? 

– Is there a partner that does/can perform energy audits free of charge for qualifying participants? 

– What is the cost of energy audits? 

– Given the level of rehabilitation to be carried out, is the information generated by the energy audit able to 

be incorporated into the project budget? 

• Development of a policy that articulates an equitable and usable standard about what energy efficiency 

measures apply to any given project, given the amount of funding and the unique features of the project. The 

written guidelines should describe how a PJ or its subrecipient will determine when energy efficiency measures 

will supersede other rehabilitation measures proposed in a project and prescribe specific measures be 

considered for each program. In developing these guidelines, PJs should consider: 

– Once basic health, safety and durability issues are addressed, what priority will efficiency improvements 

hold relative to other property improvements? 

56 Building ENERGY STAR Qualified Homes 
– Are there efficiency measures that should always be required? 

– Can other property improvements be applied in ways that enhance energy efficiency? 

– How does the cost of a particular measure compare to the projected cost savings for the client? 

– Is the measure easy to use and maintain? 

– What level of priority is given to client preferences? 

– Is implementation of the guidelines feasible, given the funding allocated to each project, or are adjustments 

necessary? 

By answering the questions above, a PJ can create guidelines that effectively respond to the different circumstances of 

various rehabilitation activities. Few program administrators have all the information they need to develop guidelines that 

address all circumstances. It is important to view the implementation of any new standard as a pilot effort that provides 

information, and to continue to improve the standard as costs, performance, and client reactions are encountered. 

There are many ways to approach these issues. The PJ may require that rehabilitation projects above a certain 

funding threshold must have an energy audit and certain minimum measures must be applied. The same PJ might 

establish two different guidelines for rental rehabilitation projects. For smaller projects or properties in relatively 

good condition, the PJ might require developers/contractors to incorporate all identified low-cost energy 

efficiency measures and make case-by-case decisions about moderate-cost measures after all other structural and 

cosmetic issues are addressed. For substantial rehabilitation projects, the PJ might require that 

developers/contractors undertake all low- and moderate-cost energy efficiency measures. 

For all guidelines, PJs should incorporate the flexibility to waive some requirements based on feasibility in order to 

account for specific property conditions and project priorities. 

Sample of a PJ’s Guidelines 

on Energy Efficiency in Rehabilitation Programs 

• The rehabilitation standard will require that every rehabilitation project must 

incorporate certain basic features of safety and energy efficiency, such as safety and 

efficiency inspection of the heating/cooling system and appropriate treatments (as 

described in the section below). 

• The rehabilitation standards will incorporate proper air sealing for work on walls, 

floors, ceilings, doors, windows, and electrical outlets. All cracks and joints must be 

thoroughly sealed and draft-free. (Include these provisions regardless of whether airtightness will be formally tested.) 

• The project will meet minimum standards for ventilation, attic insulation, and 

crawlspace treatment. (Some sample standards for these are discussed below.) 

• The project will meet a standard for replacement windows and doors, depending on 

feasibility in the projects being carried out. If possible, require ENERGY STAR rated items. 

• Once the project has met all applicable property standards, ENERGY STAR 

appliances must be used, where budget permits. 

Once a PJ has decided on its written guidelines, it should update inspection and monitoring checklists to confirm 

that energy efficiency measures were properly completed and installed. 

Building ENERGY STAR Qualified Homes 57
It is essential that the PJ also provide educational material to occupants and homeowners about operating and 

maintaining the energy efficiency measures to maximize their cost and energy savings. 

4.2. Energy Efficiency Features for HOME-Funded Activities 

Generally, there are four key sources of energy loss in older homes: 

• Air leakage; 

• Poor-functioning heating and cooling systems; 

• Insufficient and poorly installed insulation; and 

• Inefficient or leaky windows. 

There are several low- and moderate-cost items to address these primary sources of energy loss. These items are 

easily incorporated into most moderate rehabilitation projects and can maximize energy savings. PJs should 

consider requiring the low-cost features as a minimum standard for its rehabilitation activities, and consider 

requiring the moderate-cost features for larger rehabilitation efforts. In general, the low- and moderate-cost 

features can be incorporated into nearly every project, but at times there are specific property needs, geographic 

considerations, budget concerns, or other reasons why some of these features may not be feasible to implement. 

For any energy efficiency measure to realize its full potential, it must be properly installed. Failure to properly 

install an item can eliminate any cost savings and may create a health hazard. For example, venting bathroom and 

kitchen fans into an attic or unconditioned space, instead of to the exterior, can cause moisture problems and 

mold growth. Failure to install insulation properly so that a continuous vapor barrier is created will substantially 

reduce the effectiveness of the insulation. For all rehabilitation projects, PJs must insist that materials and 

appliances are installed according to the manufacturer’s specifications to maximize energy savings. During 

inspections, building inspectors must check for and verify that items are properly installed. 

4.3. Typical Low-Cost Features 

Low-cost measures are either inexpensive to implement or they have a short payback period making them costeffective. Some of these features may tie into existing weatherization programs to support their completion: 

• Manage air flow by sealing air leaks; 

• Seal and insulate ducts; 

• Address problems with combustion equipment; 

• Increase insulation; and 

• Install programmable thermostats. 

Manage Air Flow in the Structure 

Sealing air leaks is the most critical and least expensive of the energy efficiency measures to implement. To manage 

air flow properly, the following three items must be addressed simultaneously: 

• Seal the building envelope as tightly as possible so it does not leak; 

• Segregate the combustion part of equipment (such as furnaces and water heaters) from the building envelope 

so they do not use or pollute the same air that people breathe; and 

• Provide adequate ventilation so that moisture and fumes can be removed from the airtight envelope and fresh 

air can come in when needed. 

58 Building ENERGY STAR Qualified Homes 
Seal the Building Envelope 

Wherever the components of the thermal envelope meet, there is potential 

for an air leak. Although some gaps are intentionally placed in the envelope, 

such as utility openings, they are normally sealed with caulk, weatherstripping, or some other material to prevent unintended air leakage. 

Buildings that have structural damage or decay are likely to have a “leaky” 

thermal envelope that results in unwanted air exchange. Air exchange 

occurs through infiltration or exfiltration, equal parts of air coming into the home and equal parts going out. Air leakage 

from cracks and gaps in a house’s thermal envelope accounts for approximately one-third of its energy loss. 

Sealing air leaks alone can trap moisture 

and polluted air in the home. Measures 

to seal air leaks should be taken in 

combination with measures to address 

problems with combustion equipment, 

and ensure adequate ventilation. 

Sealing air leaks from holes, gaps, cracks, penetrations, and electrical receptacles through a combination of weather 

stripping and strategic use of caulk or spray foam can significantly reduce the amount of conditioned air lost to the 

outside, thereby reducing the amount of energy needed to heat and cool the dwelling unit. In addition to saving 

energy, controlling air leakage can also reduce moisture problems and reduce the influx of odors and contaminated 

air from the basement and other units. Reducing air leaks can also increase the overall comfort of residents. 

Segregate and Maintain Combustion Equipment 

Combustion appliances are those which burn fuels such as gas, oil, coal, and wood for warmth, cooking, or 

decorative purposes. Examples include furnaces, water heaters, space heaters, ranges, fireplaces, and clothes dryers. 

Combustion appliances use air to burn fuel and produce exhaust gases that should be, and normally are, directly 

vented to the outside to avoid introducing combustion by-products into the house. 

Specification writers and occupants must understand air flow in and around these combustion appliances. A 

standard home furnace uses two air flow systems to operate and the two systems should be completely separate 

from one another. Each system should have equal amounts of air entering and leaving. 

One system is the air that is heated and blown through the ducts to keep the home warm. Air in the house must be 

able to circulate from the supply registers, usually in each room, to the return register or registers, usually centrally 

located. Otherwise some rooms may be pressurized and others de-pressurized, both increasing leakage into and 

out of the house. So, interior doors should not seal airtight, or rooms should be connected with openings or 

registers that allow for air flow. 

The second air system is the air the furnace uses to burn its fuel, and 

this must be unrestricted. This air must come from outside the house to 

the combustion area of the furnace and be exhausted outside, via the 

flue or chimney. Otherwise the furnace sucks air out of the house or 

exhausts burned gases into the house, or both. Either scenario is both 

dangerous and inefficient. It is critical that furnaces, water heaters, 

fireplaces, and woodstoves have a direct source of outside air, usually a 

pipe allowing air to be drawn directly the where the flame is and to the 

area of the exhaust flue. 

Many older homes had built-in pipes 

and openings for combustion air, but 

the openings were later sealed in 

remodeling and weatherization efforts. 

This is a safety hazard, as well as 

inefficient. 

When both systems are balanced and separate from each other, the furnace can work at its maximum efficiency 

and safety.

Building ENERGY STAR Qualified Homes 59
Provide Adequate Ventilation 

Exhaust venting and whole-house ventilation should be examined. 

1. Exhaust venting 

Combustion exhaust can be a problem in homes that have been sealed against air leaks in particular, so it deserves 

special consideration. Combustion exhaust venting may be accomplished in several ways. The most typical is an 

atmospheric or natural draft vent—the buoyancy of the hot exhaust gases carries the combustion products 

through the appliance and up the flue. Other methods include a fan-assisted or powered combustion system— 

whereby a small blower forces or draws combustion air and flue products through the furnace and exhausts 

combustion gases out the flue to the outside; or a sealed combustion or 100-percent-outdoor-air appliance, which 

brings combustion air directly into the burner via sealed inlets connected to the outside with the help of a fanassisted exhaust.19

When combustion ventilations systems malfunction because of inappropriate appliance selection, improper 

installation, leaky flues, cracked heat exchangers, or an inadequate supply of combustion air, they can cause a range 

of very serious problems: 

• Cracked heat exchangers are the most serious problem because exhaust gases are directly sucked into the air 

that circulates through the house. 

• A leaky or blocked exhaust flue forces exhaust gases back into the house. The potential danger from this 

problem is mitigated somewhat if the combustion appliance is segregated from the home’s conditioned air 

circulating system. 

• The air supply is restricted (often because the house was completely sealed up) so the unit sucks exhaust air 

back into the structure in order to burn it. This pollutes the air in the house with moisture (resulting in both 

biological growth -mold and damage to the house) and poisonous gas (commonly called combustion spillage or 

backdrafting). 

• The unit gets its air from the house, thus sucking air into the house through every possible crack and opening, 

creating cold drafts and significantly exacerbating any leaks in the building envelope. In this situation, the unit is 

also burning and exhausting air that has already been heated, thus wasting the heat already created. 

To prevent these problems, all combustion appliances should have a working exhaust vent to the outside for exhaust 

air (including the kitchen stove by means of an exhaust fan). Any appliance that exhausts air to the outside, except the 

kitchen stove, should also have an adequate direct supply of outside air to burn supplied by a pipe or vent 

coming from outside the building. This includes wood stoves and fireplaces. Any combustion appliance that is not

vented from and to the outside, except the kitchen stove, should be removed before air sealing is carried out. 

Inspectors should pay particular attention to combustion equipment to 

ensure that it is properly installed and vented. After installation of 

combustion and/or ventilation equipment, and after sealing air leaks 

and duct work, combustion equipment should also be tested to be sure 

that it functions properly. The installer should use an established 

procedure for conducting this test, such as Appendix D of the 

International Fuel and Gas Code or ASTM E1998, Guide for Assessing Backdrafting and Spillage from Vented Combustion 

Appliances.20 All furnaces should be specifically checked to assure that the heat exchanger, where conditioned air is 

heated by the combustion in the furnace, has no leaks or cracks that would allow combustion air to enter the 

building envelope’s air. 

For serious safety reasons, to the 

maximum extent feasible, the 

combustion activity of an appliance 

should be separated from the building 

envelope and conditioned air. 

 

19 U.S. Department of Energy. Technology Fact Sheet: Combustion Equipment Safety. October 2000. Available online: 

http://www.eere.energy.gov/buildings/publications/pdfs/building_america/26464.pdf

20This document is available online at: http://www.epa.gov/iaq/homes/hip-combustion.html October 15, 2007. 

60 Building ENERGY STAR Qualified Homes 
2. Provide whole house ventilation 

Aside from assuring that the exhaust gases are properly vented, it is critical that the air that circulates in the home 

is periodically refreshed and pollutants can be removed. If a building does not have mechanical ventilation, it is 

recommended that a ventilation system be installed before any significant air leakage reduction is performed. At a 

minimum there should be exhaust fans provided for the kitchen range and the bathrooms. Air sealing should be 

done only in conjunction with an assessment of the building’s ventilation system to ensure adequate air quality. 21 

Typical approach 

A common approach includes the following elements: 

• Always require that fuel-burning appliances such as furnaces, wood stoves, and water heaters be inspected for 

safe and proper operation; 

• Always require that combustion appliances be provided with a direct supply of outside air through a pipe that 

terminates near the appliance; 

• Wherever feasible, segregate the appliance from the conditioned air space with a sealed door; 

• Always install a CO2 detector in the living area of the home; 

• Set an efficiency standard for furnaces as well as other HVAC components. For example, require all furnaces to 

operate at 75 percent AFUE or be replaced; and 

• Require that exhaust fans be provided for all kitchens and baths, wherever feasible. 

Seal and Insulate Ducts 

Ducts that move air to and from a forced air furnace, central air conditioner, or heat pump are vulnerable to air 

leaks and are often big energy wasters. Sealing and insulating these ducts can improve the efficiency of a home’s 

heating and cooling system by as much as 20 percent. 

For optimum effectiveness, seal ducts that run through unconditioned spaces, such as the attic, crawlspace, 

unheated basement, or garage. Use duct sealant (mastic) or metal-backed (foil) tape to seal the seams and 

connections of ducts. Never use duct tape. After sealing the ducts in those spaces, wrap the ducts in insulation to 

keep them from getting hot in the summer or cold in the winter and affecting the conditioned air running through 

them. Next, seal ducts that are accessible during the rehabilitation activities that are located in the heated or cooled 

part of the house. 

Make sure that the system has a balanced air flow so that the air pressure in each room is normal. Blowing air into 

a room, but not providing it a way to return to the HVAC unit, pressurizes the room and exacerbates any air leaks. 

One way to address this is to require installation of either a return register, a transfer grill, or a 1-inch gap under 

the door in any room with a supply register. After equipment is installed, a worst-case depressurization test should 

be conducted by a PJ-approved inspector.

Replace air filters regularly, as dirty filters slow down air flow and make the system work harder to keep the home 

warm or cool — wasting energy. Educate occupants or property maintenance staff about the importance of 

changing the air filter at least every three months. 

 

21 Abt Associates. Energy Conservation for Housing: A Workbook. January 1998. p. 7-37 – 7-39. 

Building ENERGY STAR Qualified Homes 61
Typical Approach 

A common approach includes the following elements: 

• Inspect all ducts and seal all joints with mastic. Where ducts and registers join the interior surface, use foam or 

mastic to eliminate all gaps or leaks. 

• Insulate all ducts in unconditioned spaces to a minimum of R-4, preferably higher. 

• Where feasible, run ducts inside the building envelope. 

Increase Insulation 

Up to one-third of the heat loss in a home may be attributed to poor insulation of the walls and attic, depending 

on climate and structural conditions. Even a home with a tight thermal envelope may benefit from insulation to 

further retard the flow of heat into or out of a unit. Insulation is rated using an R-value, the value to which the 

insulation resists heat flow. The higher the R-value, the more effective the insulation is at limiting heat transfer. 

Inadequate amounts of insulation can result in a wall or attic having a low R-value, which results in energy loss. 

However, poorly installed or failing insulation can have the same effect. 

There are several common types of insulation — fiberglass (in both batt and blown forms), cellulose, rigid foam 

board, and spray foam. Reflective insulation (or radiant barrier) is another insulating product which can help save 

energy in hot, sunny climates. 

When correctly installed with air sealing, each type of insulation can deliver comfort and lower energy bills during 

the hottest and coldest times of the year. Insulation works best when air is not moving through or around it. So it 

is very important to seal air leaks before installing insulation to ensure the best performance from the insulation. 

For the biggest savings, the easiest place to add insulation is usually in the attic. A quick way to see if more 

insulation is needed is to look across the uncovered attic floor. If the insulation is level with or below the attic 

floor joists, more insulation is probably needed. The recommended insulation level for most attics is R-38 (this is 

about 12–15 inches of insulation, depending on type). In the coldest climates, the recommended level is R-49. 

Typical Approach 

A common approach includes the following elements: 

• Inspect all insulation for full coverage. In attics, cover fiberglass batts with continuous loose-fill insulation. 

• Insulate all accessible spaces capable of being properly vented to the recommended level for the region. 

(Recommended insulation levels by region are available on the ENERGY STAR website.) Provide adequate 

venting, seeing that there are no gaps or openings in insulation except where required for safety. 

• Evaluate all houses for the feasibility and advisability of installing 

wall and floor insulation to the recommended levels. Specifically 

address potential moisture problems and their mitigation. 

Fiberglass batts and rolls are notorious 

for having small gaps between them and 

the adjoining surfaces, as well as very 

easily moving out of place. • Do not use fiberglass batts and rolls where any full coverage 

insulation such as blown cellulose can be installed. 

Install Programmable Thermostats 

Programmable thermostats automatically adjust a home's temperature settings, lowering or raising the temperature 

of the home so that the heating or air conditioning system runs while the home is in use, and the temperature 

adjusts while the occupants are away or sleeping. Programmable thermostats are more convenient and accurate 

than manual thermostats and improve a home’s comfort. They contain no mercury and when used properly save 

about $150 a year on energy bills. 

62 Building ENERGY STAR Qualified Homes 
Installation of programmable thermostats should be accompanied by instructional information for occupants so 

they know how to use the thermostats to receive their full benefit. 

4.4. Typical Moderate- to High-Cost Features 

Energy efficiency features that have a moderate or high cost make them difficult to implement in small 

rehabilitation projects, but they provide effective energy efficiency savings and should be considered for all 

projects when feasible: 

• Upgrade the HVAC system; 

• Change placement of return and delivery registers and ducts; 

• Install ENERGY STAR appliances; and 

• Replace windows. 

Upgrade HVAC System 

Together, heating and cooling equipment account for about one-half of the energy usage in a typical house.22

Significant opportunities to reduce energy costs exist through the use and proper maintenance of high-efficiency 

heating and cooling appliances. 

EPA’s ENERGY STAR program has developed the following guidelines to assess whether a replacement of an 

HVAC system (including the air conditioner, heat pump, furnace, or boiler) as part of moderate rehabilitation 

activities, is appropriate. If two or more items in the “Time to Replace” column apply to the system, then 

replacement is a good idea. 

Continue to repair existing system if: Time to replace existing system if: 

Under 10 years old (under 15 years for a furnace or boiler) Over 10 years old (over 15 years for furnace or boiler)

Good service record Has had repeat problems 

Major repairs made recently; only minor repairs needed Extensive or costly repairs needed 

On/off cycling is not excessive On/off cycling seems excessive 

Performing up to expectations Not performing up to expectations 

When replacing an HVAC system, proper sizing is essential. Bigger is not always better. Oversized equipment 

operates in short run cycles, not allowing the unit to reach efficient operation and remove humidity from the air — 

the space is often less comfortable and might actually result in higher utility bills. 

 

22 U.S. Environmental Protection Agency, ENERGY STAR. “Heat and Cool Efficiently.” Available online at: 

http://www.energystar.gov/index.cfm?c=heat_cool.pr_hvac January 7, 2008. 

Building ENERGY STAR Qualified Homes 63
Combined Heat and Power 

For large multi-unit buildings of 80 or more units with master metering and access to 

natural gas, PJs should consider HUD’s 2002 Energy Action Plan2 initiative #20: to 

promote the use of combined heat and power (CHP) in housing. CHP — also known as 

“cogeneration” — is the simultaneous production of two or more useful forms of energy 

from a single fuel consuming device. 

CHP systems recycle waste heat and convert it to useful energy. Generally, CHPs achieve 

overall efficiencies of close to 80 percent. Instead of buying all the building’s electricity from 

a utility company and separately purchasing fuel for its heating (mechanical) equipment, 

most--or even all--of the electricity and heat can be produced for less money by a small onsite power plant operating at a higher combined efficiency. The type of CHP system 

commonly applied to multifamily housing uses a device that contains an engine, similar to 

that found in a car or truck, or a microturbine that drives a generator to produce electricity. 

The heat (thermal energy) produced by this process is recovered and used to produce hot 

water or steam, operate a chiller or serve as a desiccant instead of being exhausted from the 

engine and transferred through the engine radiator (as in an automobile). 

To determine if CHP is a feasible option for an existing large multi-unit building, 

Attachment 4-2 provides more information on CHP along with a framework and 

directions for screening software used to conduct a preliminary analysis of a building’s 

feasibility for utilizing CHP. 

Consider Placement of Return and Delivery Registers and Ducts 

Poorly placed ducts and registers can result in energy loss. If the rehabilitation involves changes to the duct system 

and location of air return and delivery registers, the contractor should carefully consider the location of registers 

and ducts. Although the design of the existing duct system and the house influences where ducts and registers can 

be located, consider the following guidelines: 

• When possible, place ducts in conditioned spaces to reduce heat loss. If ducts must be located in 

unconditioned spaces, be sure they are well insulated. 

• Do not locate return and delivery vents near each other as the hot or cool air delivered through one register 

will be drawn right back into the return vent. 

• Provide for a balance of air flow between supply and return ducts. The amount of air supplied to and from an 

air handler is designed to be in balance. 

• As part of achieving a good balance of return and supply air, avoid locating heating or cooling return registers 

in the basement. Basements tend to be confined spaces resulting in “air starved” equipment that does not 

perform at optimum levels; in addition, there is an increased risk for pulling carbon monoxide into the system 

from nearby oil or gas fired equipment. 

Install ENERGY STAR Appliances 

As discussed in Chapter 3, replacing old appliances with ENERGY STAR appliances can result in substantial 

energy and financial savings for occupants. The decision to replace existing appliances with ENERGY STAR 

appliances usually depends on the age and condition of the existing appliances. If appliances are near the end of 

their expected life or in poor repair, replacing them during a moderate rehabilitation project with ENERGY STAR 

appliances is usually a cost-effective decision. 

64 Building ENERGY STAR Qualified Homes 
Replace Windows 

Windows on older properties often leak air. Air leaks easily through loose fit, damaged, or missing weather 

stripping, putty, or caulk. Even without leaks, windows have R-values that are less than one-tenth of the R-value of 

the exterior walls. Thus, windows, especially older poorly maintained ones, are highly inefficient at preventing heat 

loss. New windows, especially ENERGY STAR-rated windows, can be a cost effective means of integrating 

rehabilitation goals and energy efficiency concerns. If replacing old windows is not an option, be sure to caulk 

windows properly to prevent leakages. 

In a moderate rehabilitation project, replacing all the windows in a property can quickly become expensive. 

However, installing ENERGY STAR windows can help reduce an energy bill by up to 15 percent, depending on 

geographic location. The benefits of ENERGY STAR windows are realized in both cold and warm climates. Cold 

air is kept out of the home as well as summer heat as the windows transfer much less of the sun’s heat into a 

home. 

Older windows, installed before 1978, may contain lead-based paint, which poses a potential health threat to 

occupants, especially young children. Replacing windows that have lead-based paint will create a healthier home 

for occupants. Windows that may have lead-based paint must be replaced using lead safe work practices and may 

be subject to the Lead Safe Housing Rule 24 CFR part 35. For more information on lead-based paint requirements 

and concerns, visit www.hud.gov/lead. 

4.5. Methods for Selecting Energy Efficiency Measures to Use in HOME-Funded 

Activities 

The energy efficiency measures that will have the greatest impact on energy performance in a particular moderate 

or modest rehabilitation project depends on the condition of the specific property. PJs must examine the condition 

and design features of each building, identify the costs and savings for different measures that may be part of each 

rehabilitation job, and then make a determination about the best way to achieve energy efficiencies. 

A PJ, subrecipient, or property owner has several methods for analyzing the condition of a property and 

determining the expected costs and savings that are specific to the property in question. PJ staff do not need to do 

this analysis or have the in-depth technical knowledge required to examine buildings and calculate costs and 

savings, but should have a basic understanding of what goes into the analysis so it can make prudent decisions 

about what energy efficiency measures to implement. 

Based on local capacity, priorities, and program activities, a PJ should consider the methods that are most 

appropriate for their program, and the specific building being rehabilitated: 

Method #1: Participate in Home Performance with ENERGY STAR 

As explained previously in this chapter, Home Performance with ENERGY STAR is a national program, available 

only in locally-sponsored areas and its application to affordable housing is now being piloted. PJs should check 

with the local or regional utility, regional energy consortia, or EPA field office to determine if its area has joined or 

plans to join this program. 

If the program is available, the ENERGY STAR home improvement contractor can conduct a detailed visual and 

diagnostic inspection of the whole house to determine the energy saving improvements that can be implemented 

in the rehabilitation project. The contractor can generate a report for the PJ and homeowner to use to determine 

which energy efficiency measures they will implement. The PJ (or subrecipient) can then work with qualified 

contractors through the program to install the measures, verify that renovations have improved home 

performance, and determine that safety standards are met with post-installment diagnostic tests. 

Building ENERGY STAR Qualified Homes 65
The benefits of using the Home Performance with ENERGY STAR approach include: 

• The inspection is more extensive than a basic energy audit and includes energy efficiency and related health and 

safety issues; 

• The inspection report identifies expected costs and savings, making it easier for the PJ to identify cost-effective 

options; and 

• The report identifies the biggest saving opportunities, taking the guess work out of which energy saving 

measures will have the greatest financial benefit to the homeowner or property owner. 

Method #2: Use a Qualified Energy Auditor or Home Energy Rater 

Energy audits are a systematic way to evaluate energy savings at a property. While, not as extensive as the Home 

Performance with ENERGY STAR assessments, energy audits provide diagnostic testing and generally include 

upgrade recommendations with cost-effectiveness analysis. Most communities have some qualified inspectors. A 

qualified energy auditor can generally be located through the partners identified earlier in the chapter, including 

weatherization agencies, local utility companies, and regional energy consortiums, as well as through RESNET and 

the Building Performance Institute. 

Energy auditors can use a variety of methods to test how energy is wasted in a building. Exhibit 4-3 lists the most 

common energy auditing methods and a brief description of each.23

In the event that a qualified energy auditor is not available to the PJ, or the PJ has determined it is more beneficial to 

use its own staff to assess energy improvements, staff can use one of a multitude of existing checklists to perform an 

on-site assessment. A PJ should contact utility companies or the ENERGY STAR program for good checklists. 

Method #3: Use On-Line Calculators 

While an on-site inspection of a home provides the most accurate assessment of energy use and efficiency 

measures, an on-site inspection is not always feasible, or the PJ may want to estimate the cost effectiveness of 

proposed measures before engaging in a detailed assessment of the home. On-line tools can provide relatively 

sound information about efficiency measures that are appropriate, their estimated cost, and energy cost savings 

that may be achieved, based on the characteristics of the project that the user provides. 

There are several decent on-line tools that PJs can use: 

HUD Rehab Advisor uses 

information about a project to 

estimate energy and cost savings 

efficiency measures will achieve. 

• HUD Rehabilitation Advisor: HUD’s Energy Efficient Rehabilitation Advisor is an easily accessible on-line 

tool that allows interested parties of any level of experience or involvement to gain access to recommendations 

for energy efficiency rehabilitation. The Advisor tool uses general information about the proposed building 

(type, location, age) and the user’s role in the proposed project (such as, 

building owner, contractor, designer, lending agency) to recommend 

efficiency measures, estimate the cost of those measures, identify the 

monetary savings the measure should achieve, and provide the approximate 

amount of time it will take for the measure to pay its cost back. 

 

23 U.S. Department of Energy. “Weatherization Technologies.” Available online at: 

http://www.eere.energy.gov/weatherization/wx_technologies.cfm July 14, 2008. 

66 Building ENERGY STAR Qualified Homes 
Common Energy Audit Methods 

Blower Door Testing: Blower doors are variable-speed fans equipped with a frame and 

shroud that permit them to fit inside a variety of doorframes. Since leakier houses require 

more airflow to induce a given pressure difference, blower doors can measure the relative 

leakiness of a house and the location of many leaks. This information provides a clear 

target for air sealing. Once the job is complete, blower doors also provide feedback on the 

effectiveness of the work. In addition, blower doors can help diagnose which parts of a 

house do not need to be sealed. 

Thermographic Inspections: Thermography measures surface temperatures by using 

infrared video and still cameras and thermography inspections can be used to determine 

where insulation is needed, and whether it has been installed correctly. Thermographic 

scans can also be used with in combination with a blower door test. While the blower 

door helps exaggerate air leaking through defects in the building shell, the thermographic 

scan can be used to identify the specific location of a leak. 

PFT Air Infiltration Measurement Technique: The PFT technique measures changes 

over time (a few hours to several months) when determining a building's air-infiltration rate. 

While this test cannot locate exact points of infiltration, it does reveal long-term infiltration 

problems. At the end of the test period, the results are sent to the Tracer Technology Center 

at Brookhaven National Laboratory for analysis. The Tracer Technology Center sends the 

customer a computerized test report that includes the average air infiltration rate. The PFT 

technique is very accurate but expensive and timely consuming. 

Duct Blaster Testing: Like the blower door test, a duct blaster tests the system for air 

leaks. However, the Duct Blaster fan is connected directly to the duct system at the air 

handler cabinet, or a return grille. The dust blaster results in a precise leakage 

measurement and estimates efficiency losses from those leakages. The duct blaster test will 

quickly isolate leaks in the duct system while a blower door test identifies duct leaks as 

well as improvements needed in the thermal envelope of a home.*

Comfort-based Audits or Occupant Interviews: Although technology-based audits are 

very effective at identifying specific leaks and areas of the home that would benefit from 

improvements, for occupied units, the Energy Auditor can glean a great deal of 

information from the residents. Residents can identify which rooms are too hot or too 

cold; where there are drafts; which windows develop condensation; and where in the 

house there is excessive moisture, mold or mildew, peeling paint, water stains, odors, or 

rotting or buckling ceilings or walls. These questions can supplement a one-time audit by 

giving the auditor information about how the home performs in other seasons, such as 

where ice dams form, which rooms may stay cool in the summer but lose heat quickly in 

the winter (or vice versa). 

* The Energy Conservatory. Diagnostic Tools to Measure Building Performance. Available online at: 

http://www.energyconservatory.com/applications/applications1.htm, 2007.

The Advisor bases its recommendations on ENERGY STAR performance specifications where they exist, 

HUD’s guidelines for conducting energy efficient rehabilitations, and general building and climactic 

characteristics. The recommendations and savings figures attached to them are rough estimates for what 

might be expected for an actual project. The Rehabilitation Advisor additionally offers the benefits each 

recommended measure can achieve outside of energy savings. 

Building ENERGY STAR Qualified Homes 67
A number of different variables are required to generate the actual estimates – specific climate, building 

components, construction type, age, fuel type, etc. The information generated – cost, savings and payback data – 

are representative of a typical building in the specified region and are a realistic illustration of typical results. This is 

a very quick, no-cost start to examining the savings to be gained by pursuing an energy efficiency rehabilitation 

project. Such preliminary information may help with planning, budgeting, and proposing a project. 

The HUD Energy Efficient Rehabilitation Advisor is an on-line tool that can be found at: 

http://rehabadvisor.pathnet.org/index.asp. 

• ENERGY STAR On-Line Calculator: For many ENERGY STAR products, EPA offers an energy savings 

calculator that also makes a determination of energy savings and payback periods. These calculators allow the 

user to enter product- specific information into the tool to automatically determine cost savings. The 

calculators also include default figures to provide a general estimate of savings and payback periods. These 

calculators are available on the ENERGY STAR website (see Appendix 1: Resources for more information). 

• Home Energy Saver: The Home Energy Saver, developed at Lawrence Berkeley National Laboratory in 

partnership with ENERGY STAR, the Department of Energy, and HUD’s PATH program, is an on-line 

calculator that is primarily designed for consumers. It can be used by third parties, such as PJs, to calculate a 

home’s energy use and to identify ways to save energy in the home. 

This calculator is available through the ENERGY STAR website or at: http://hes.lbl.gov. 

4.6. HOME-Funded Activity: Development of Multi-Unit Properties 

Greater than Three Stories 

There are currently no established energy performance standards for new construction of multi-unit properties 

over three stories in height. Therefore, PJs need to decide what energy efficiency measures make sense for these 

developments, given the property’s design and the PJ’s objectives for the property. Many of the design principles 

presented in Chapters 2 and 3 can be incorporated into these types of properties, although there is not currently a 

required testing and certification process. 

If a PJ seeks to address energy efficiency in the development of large multi-unit properties, HUD recommends 

that it seek the input of an experienced designer to assist them. PJs may also want to simply encourage or make 

energy efficiency measures for these projects optional, until standards are developed. 

ENERGY STAR and High-Rise Buildings 

To address energy efficiency opportunities for the mid-rise and high-rise residential market, EPA is piloting an 

ENERGY STAR labeling program for multifamily buildings with four or more floors. As of 2008, these pilot 

projects are located in New York, Oregon, and Colorado. These projects use a modeling approach to identify cost 

effective energy efficiency measures for the building type. To achieve the ENERGY STAR label under these pilots, a 

newly constructed building must be 20 percent more energy efficient than a building constructed to American Society 

of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) 90.1, a national energy standard for mid- and 

high-rise buildings; and must score in the top quartile of the EPA residential benchmarking tool. The pilot phase of 

this program is expected to last until 2009. At that time, EPA will evaluate information generated by the pilots to 

understand how and whether ENERGY STAR goals are achievable at the national level for larger buildings. 

State and Local Initiatives to Determine Standards 

In addition to the EPA’s ENERGY STAR pilot program, several states and local governments are establishing and testing 

standards. For example, the New York State Energy Research and Development Authority (NYSERDA) has launched its 

New York Energy $martSM Multifamily Building Performance Program. This program seeks to improve building 

performance by 20 percent over current ASHRAE standards (see Appendix 1, Resources for contact information). 

68 Building ENERGY STAR Qualified Homes 
4.7. Steps to Incorporate Energy Efficiency Measures into HOME-Funded 

Development of Large Multi-Unit Buildings 

PJs should watch for further guidance from HUD and EPA regarding energy efficiency standards for high-rise, 

multifamily buildings, and may wish to follow the efforts of other state and local housing agencies. In the interim, 

PJs can promote improved energy efficiency in these large, multi-unit properties by encouraging CHDOs and 

developers to incorporate energy efficiency measures that are suitable and cost effective given the design of their 

projects. Much of this can be based on the design features described in Chapters 2 and 3 as well as information 

specific to these types of projects that is included in the Energy Efficiency Features section of this chapter. 

PJs that decide to encourage efficiency in large multi-unit buildings will face several important decisions about how 

to structure and implement these efforts. The steps recommended below can help PJs address these decisions and 

select design guidelines or standards for new development of large rental properties that are consistent with 

program goals and local priorities. 

1. Assess State and Local Contractor Capacity and Additional Sources of Support 

To ensure that any new guidelines or standards can be implemented by the local or regional development 

community, a PJ needs to understand the current level of local capacity to develop large multi-unit rental 

properties that incorporate energy efficiency measures. A PJ should consider: 

• The overall number and capacity of developers and contractors working in its community; 

• Whether there are developers and contractors with experience in ENERGY STAR or incorporating energy 

efficiency into larger buildings who can carry out the PJ’s program and/or serve as mentors or consultants; and 

• Whether there are energy efficiency programs that are active in the community (such as DOE Weatherization), 

whose resources might be available to the program and applicable to larger buildings. 

2. Decide Whether to Encourage or Require Energy Efficiency Measures 

Considering the existing local capacity, a PJ then can determine whether to require or encourage energy efficiency 

measure in these projects. The PJ’s approach must be compatible with the PJ’s own priorities, existing guidelines, 

and standards. The PJ should consider whether to require or encourage specific energy efficiency measures or 

standards, or whether a combination of approaches makes sense. 

In areas with limited or no capacity, PJs should take steps to build experience and local capacity. PJs can do this by 

launching a pilot program for one or two years, and by offering incentives to developers to participate. Pilot 

programs not only build capacity, they can provide valuable lessons about how PJs can effectively promote energy 

efficiency in large multi-unit projects. 

In areas with some capacity, the PJ should consider the following approaches: 

• Encourage developers to incorporate energy efficiency measures to the extent that it is feasible and costeffective. The PJ might indicate that it is looking for such measures and encourage developers to propose what 

actions the developers are able to achieve. 

• Encourage developers to meet energy performance standards that exceed existing code requirements by a 

certain percentage. The PJ could award bonus points for proposals that meet these criteria. The PJ would need 

to work out an inspection and verification process to determine that the performance standard was met. 

• Establish baseline requirements that all proposals and projects must meet. These requirements could include: 

– Use of energy efficient or ENERGY STAR appliances in all units; 

– Installation of high efficiency HVAC systems; 

– Use of energy efficiency lighting in common areas; and/or 

– Review of project design documents to avoid leaks that lead to energy loss. 

Building ENERGY STAR Qualified Homes 69
For any of the above approaches, the PJ should consider whether to provide any incentives for developers that 

follow the selected approach, such as: 

• Density bonuses; 

• Waiver of fees or restrictions on projects; 

• Streamlining the processing and/or approval of projects; and/or 

• Increased funding levels to pay up-front costs for efficient systems. 

3. Revise HOME Program Procedures and Documents to Ensure that Developers Achieve 

Energy Efficiency Guidelines 

If a PJ decides to require that HOME-funded projects meet higher energy efficiency standards, its HOME 

program descriptions, written guidelines, funding announcements, and written agreements with developers should 

state explicitly that HOME funding is contingent on the project meeting the new standards. 

If a PJ does not require projects to meet higher energy efficiency standards but wants to encourage projects to 

address energy efficiency by offering incentives, this intent should likewise be written into program descriptions, 

guidelines, and funding announcements. When a project receives an incentive (such as bonus points or 

supplemental funding), the written agreement should specify how the PJ will verify that the promised standard was 

met, and specify that meeting the standard is a condition of funding. 

If additional funding is given to developers as an incentive to incorporate energy efficiency measures or standards 

into projects, written agreements with developers should specify the amount of additional funding given and 

obligate the developer to follow the agreed-upon standards or return the incentive funding. 

4. Conduct Outreach and Education to Program Partners 

To further promote the adoption of energy efficiency standards, a PJ may link developers to state or local energy 

organizations. As PJs identify these partners, they should identify the types of services and resources they offer 

developers building energy efficient projects, and the procedures for requesting funding or technical resources. By 

educating developers about these organizations and the resources they offer, PJs offer additional tools that 

developers can leverage for their projects. 

5. Verify Building Performance through Commissioning 

For new construction of large multi-unit properties, a PJ should consider hiring an independent contractor, usually a 

mechanical engineer, to verify the performance of key systems following construction of the property. This is known 

as commissioning. Commissioning is the process of verifying that key systems in a new building function as intended, 

and communicating the intended performance to the building management team. This usually occurs when the 

building is turned over for occupancy. However, the commissioning firm can also review plans prior to construction 

and determine if they are likely to achieve the expected performance. In practice, commissioning costs are not 

included in design fees and are viewed as an additional cost which makes the practice less common than perhaps is 

desirable. As a result, it is seldom pursued properly. Particularly for large properties, PJs may want to budget for the 

additional cost for commissioning to ensure that energy performance and operational goals are met. 

The ENERGY STAR program recommends taking the following four actions when pursuing commissioning. 

1. Communicate the property’s energy performance goals during commissioning to ensure that the design target 

is met. Encourage energy-use tracking that will allow performance comparisons to be made over time. 

2. Specify detailed commissioning activities in project contracts. Seek separate funding for commissioning 

work to ensure that it is given the appropriate level of importance. 

3. Hire experts that specialize in building commissioning. Include the commissioning firm as part of the design 

team early in the project. 

70 Building ENERGY STAR Qualified Homes 
4. Finalize and transfer a set of technical documents including manufacturers’ literature for systems and 

components. Supplement technical literature with summaries of intended operation. Provide additional 

explanation for innovative design features.24

4.8. Homeowner and Occupant Education 

To realize the full cost savings of the energy efficiency measures and maximize the benefits of improved comfort 

and durability of the property, occupants and property owners must know what energy efficiency measures are in 

the home, and know how to use and maintain them. Residents who do not know about the energy efficiency 

measures may continue to use “coping” strategies that they utilized prior to the renovation to maintain the 

comfort of the home, although such strategies are no longer needed and negate the expected energy savings. 

Property owners should update maintenance procedures to reflect the requirements of new equipment or other 

measures. The information provided should relate the specific features in the home. 

Before an occupant moves into, or back into, a newly developed unit, PJs should make sure that the following 

actions are taken: 

• Identify all the energy efficiency appliances or products installed in the unit and provide the occupant with all 

informational materials on how to operate and maintain these products to maximize energy efficiency; 

• In multifamily properties, notify the occupants about the importance of reporting maintenance requests; 

• Provide occupants with informational materials regarding the use of non-toxic cleaners to maintain healthy 

indoor air environment; 

• Teach occupants about how and when to use fans and ventilation systems to maximize their effectiveness; and 

• Follow up with occupants after they have lived in the unit for a period, in order to answer questions or address 

concerns about the energy efficiency features of the unit, that arise after occupancy. 

PJs, subrecipients, and property owners should be careful not to “talk down” to occupants or dictate behavior, but 

to provide occupants with information so they can maximize their health, comfort, and financial savings from the 

energy efficiency measures. 

 

24 U.S. Environmental Protection Agency and U.S. Department of Energy. ENERGY STAR. 

http://www.energystar.gov/index.cfm?c=new_bldg_design.new_bldg_design_guidance 

Building ENERGY STAR Qualified Homes 71
Attachment 4-1: 

Home Performance with ENERGY STAR Locations 

Home Performance with ENERGY STAR is available in the following areas, as of 2007. Check the ENERGY 

STAR website for updated lists and contact information: 

Arizona

FSL Home Improvements 

California 

Anaheim Public Utilities 

California Building Performance Contractors Association 

Colorado 

E-Star Colorado 

Georgia 

Southface Energy Institute 

Idaho 

Idaho Energy Division 

Illinois 

Tri-County Construction Labor-Management Council 

(TRICON) 

Massachusetts 

National Grid (MA) 

Maryland 

Maryland Energy Administration 

Maine 

Maine Whole House Energy Efficiency 

Missouri 

Missouri Department of Natural Resources 

New Jersey 

New Jersey Board of Public Utilities 

New York 

New York State Energy Research and Development 

Authority (NYSERDA) 

Long Island Power Authority (LIPA) 

Ohio 

FirstEnergy Corporation 

Oregon 

Energy Trust of Oregon 

Rhode Island 

National Grid (RI) 

Texas 

Austin Energy 

Vermont 

Efficiency Vermont 

Wisconsin 

Wisconsin Focus on Energy 

Wyoming 

Wyoming Energy Council, Inc. 

72 Building ENERGY STAR Qualified Homes 
Attachment 4-2: 

Calculating Preliminary Feasibility for Installing Combined Heat 

and Power in an Apartment Building 

The U.S. Department of Housing and Urban Development (HUD), the Department of Energy (DOE) Oak Ridge 

National Laboratory (ORNL) and the eight DOE Regional (CHP) Application Centers have an initiative to 

promote the use of combined heat and power (CHP) in apartment buildings. The average efficiency of the fossilfueled central power generating plants in the U.S. is around 33 percent and has remained virtually unchanged for 

40 years. This means that two-thirds of the energy in the fuel is lost as heat. CHP systems generate electricity at the 

apartment building, recycle waste heat and convert it to useful energy. These systems can achieve overall 

efficiencies higher than 80 percent without transmission losses. The value of that heat is what drives the 

economics for using CHP. 

CHP can significantly reduce a multifamily building’s annual energy costs. Instead of buying all the building’s 

electricity from a utility company and separately purchasing fuel for its heating (mechanical) equipment, most—or 

even all—of the electricity and heat can be produced for less money by a small power plant in the building 

operating at a higher combined efficiency. CHP can help relieve grid congestion and can improve the environment 

by reducing emissions. The recent Intergovernmental Panel on Climate Change (IPCC) report recognized CHP as 

“one of the leading responses to climate change currently commercially available.” 

The type of CHP system commonly installed in multifamily housing uses a package that contains a gas-fired 

reciprocating engine (a refined version of that found in a car or truck), or a microturbine, that drives a generator to 

produce electricity. Instead of being exhausted, the heat (thermal energy) produced by this process is recovered 

and used to produce domestic hot water and space heating, and to operate an absorption chiller or power a 

desiccant (drying) machine. 

• For a webcast summary of HUD’s promotion of CHP, go to:

http://www.hud.gov/webcasts/archives/envirhealth.cfm and bring up Part 2; CHP begins at the 51 minute 

point and runs for about 20 minutes. 

• For more technical information see: "CHP Technologies," 

http://www.eere.energy.gov/de/chp/chp_technologies/tech_status.html and http://www.epa.gov/chp. 

• For a list of DOE Regional CHP Application Centers see: 

http://www.eere.energy.gov/de/chp/chp_applications/chp_application_centers.html. 

• For two guides and computer feasibility screening software for considering CHP in multifamily housing see the 

HUD website at: http://www.hud.gov/offices/cpd/library/energy/index.cfm. 

– CHP Guide #1: “Q&A on Combined Heat and Power for Multifamily Housing” explains the basics of 

CHP for apartment building owners; and 

– CHP Guide #2: “Feasibility Screening for Combined Heat and Power in Multifamily Housing” describes 

EPA’s preliminary screening tool and the computer software prepared by the Oak Ridge National 

Laboratory for completing worksheets in the Guide. 

à CHP Feasibility Screening Software provides an estimate of simple paybacks from utility savings 

resulting from CHP. ORNL has expanded the scope of the software to consider cooling and space heating, 

in addition to the original analysis of the potential based on use of domestic hot water. Use Version 2.1 of 

the expanded software is available at: http://eber.ed.ornl.gov/HUD_CHP_guide_version_2.1

à The User Manual for Version 2.1 can be downloaded from the above web address. (It is similar to the 

Help file.) The Manual contains detailed explanations of who should use it, what it does, and how to use 

it. It explains menu commands that enable the user to print “Results” and save the screen information in 

a Word file. There also is detailed information about the types of equipment used, e.g. reciprocating 

engines and microturbines. 

Building ENERGY STAR Qualified Homes 73
Buildings with 80 or more units, master-metered, with access to natural gas, may be most appropriate. The user 

should access the software, enter his/her utility data, and save and print the Results and Screen Shots. Estimates 

include: cogeneration system size, power consumption dollar savings, demand dollar savings, total electric and fuel 

cost savings, system operating costs, total cogeneration operating cost, net savings and simple payback in years. 

The user can then send the files to HUD at the number listed below for comments. DOE Regional Application 

Centers also provide follow-up comments. 

The analysis performed by this program is adequate for a coarse screening to let building operators know whether 

or not they should consider CHP more seriously. Encouraging results are only a prelude to a more rigorous 

analysis to be performed by engineering professionals using much more detailed information on building heating 

and electricity loads and CHP equipment. For a quick theoretical reading, without the monthly data, the user can 

enter “Utility Rate Data” tab data on electricity and natural gas pricing, and on the “Miscellaneous Input 

Information” tab, enter State, City, and Heated and Cooled Areas data, as a minimum. With only these 

data, Method 3 will calculate the estimated results on an appropriately-sized system. (Select the Method 3 check 

box on the Results tab.) 

74 Building ENERGY STAR Qualified Homes 
Utility Information 

Electricity Natural Gas Fuel #2 

kWh kW $ () therms

( )CCF $ [quantity] ( 

)gallons $ 

Jan 

Feb 

Mar 

Apr 

May 

Jun 

Jul 

Aug 

Sep 

Oct 

Nov 

Dec 

Annual 

Total $ $ $ 

Average 

Cost xxxxxx xxxxxx $ 

Per kWh xxxxxx 

$ 

Per 

therm 

xxxxxx $ 

Per gallon 

Building Information

Name of Contact Telephone # 

Email address 

Name of development 

Year constructed # floors # dwelling units # residents

Square footage to be heated and/or cooled 

Electric Rate Schedule Data

Name of electric utility Electric rate 

Energy charge /kWh Demand charge /kW per month 

Standby or supplemental demand charge /kW per month 

Fuel adjustment charge from most recent bill /kWh 

Natural Gas Rate Schedule Data

Name of gas utility Gas rate 

Gas cost per unit of consumption 

Units of consumption: ( ) per million Btu (MMB) ( ) per therm ( ) per decath 

( ) per hundred cubic feet (CCF) ( ) per thousand cubic feet (MCF) 

Robert Groberg, Senior Energy Management Officer, Office of Environment and Energy U.S. Department of Housing and Urban Development, 

451 7th Street SW, Washington DC 20410 Tel: 202 402-4642 Fax: 202 708-3363 

Building ENERGY STAR Qualified Homes 75
76 Building ENERGY STAR Qualified Homes 
Chapter 5: Incorporating Green Building Practices that 

Improve Housing Performance 

This chapter introduces green building practices that improve the indoor conditions for occupants, minimize a property’s adverse impacts 

on the environment, and enhance building performance. It summarizes the benefits of incorporating green building practices into

affordable housing and provides guidance to PJs about helpful steps to take when considering green building practices for their HOMEfunded activities. The chapter also presents an overview to a range of green building practices that communities can incorporate into their 

affordable housing activities. 

5.1. What are “Green” Building Practices? 

Homebuyers, renters, residential and commercial developers, property managers, and government agencies are all 

demonstrating a growing interest in sustainable or “green” building practices. Green building is no longer 

championed by just a small group of citizens and advocacy organizations. This interest is driven not only out of 

recognition of the environmental impact of buildings, and by the tangible benefits to property owners and 

occupants in terms of long-term building performance and reduced operating costs. Green buildings are 

increasingly seen as economically-smart buildings that have both immediate and long-term benefits for developers, 

owners, PJs, and residents. 

5.2. What Does “Green” Mean? 

According to the EPA, “green or sustainable building is the practice of creating healthier and more resourceefficient models of construction, renovation, operation, maintenance, and demolition.”25 While energy efficient 

buildings are a critical component of ”building green,” building green moves beyond energy conservation and 

includes other factors such as: 

• Indoor Environment. Designing and operating buildings that are healthy for their occupants.26

• Water. Designing and operating buildings that use water efficiently. 

• Materials. Using building materials that, in comparison to competing brands, have a reduced effect on the 

environment throughout their life cycle (e.g. recycled content, low toxicity, energy efficiency, biodegradability, 

and/or durability). 

• Waste. Reducing the waste from construction, remodeling, and demolition. 

 

25 U.S. Environmental Protection Agency, Green Buildings home page, at: http://www.epa.gov/greenbuilding/ 

September 28, 2007 

26 The Construction Industry Compliance Assistance Center. http://www.cicacenter.org/gbover.html September 28, 2007 

Building ENERGY STAR Qualified Homes 77
Green building methods can be integrated into buildings at any stage, from design and construction, to renovation 

and deconstruction. However, the most significant benefits can be obtained if the design and construction team 

takes an “integrated design” approach from the earliest stages of a building project. 

5.3. Benefits to Building Green 

Often with only modest cost, incorporating green building practices can result in both short- and long-term 

benefits, including: 

• Economic Benefits 

– Reduce operating costs for owners; 

– Create, expand, and shape markets for green product and services; 

– Improve occupant health and therefore productivity, as occupants are sick less often (fewer allergies, 

respiratory problems) and miss fewer days of school or work; and 

– Minimize strain on local infrastructure by reducing waste handled by sewer and solid waste authorities. 

• Environmental Benefits 

– Enhance and protect biodiversity and ecosystems; 

– Improve air and water quality; 

– Reduce solid waste disposal by using recycled materials, more durable materials, and reducing excess scrap 

materials; and 

– Conserve and restore natural resources. 

• Occupant and Social Benefits 

– Enhance occupant comfort and health with improved indoor air quality; 

– Enhance worker and occupant safety; and 

– Improve overall quality of life with improved health and more financial resources for other household 

priorities.27

According to a study for the California Sustainable Building Task Force in 2003, an initial increase in up-front 

costs of approximately two percent for green design can yield lifecycle savings of more than ten times the initial 

investment, or 20 percent of total construction costs (based on a conservative estimate of a 20-year building life). 

The study found that if $40,000 is initially invested in green design and features in a $2 million dollar project, the 

initial investment is repaid within two years. Over a 20-year period, savings amount to $400,000.28 Further, while 

the benefits to the occupants in terms of health, comfort, and safety are often more difficult to quantify in 

economic terms for a specific project, such benefits should not be overlooked when considering the benefits of 

green building practices. 

5.4. Green Building Guidelines 

As interest in green building grows, national agencies and organizations are working to establish guidance and 

standards to support the development of green buildings. These organizations have developed voluntary guidelines 

to help communities and developers design, build, and operate housing that minimizes its impact on the 

 

27 U.S. Environmental Protection Agency, Green Buildings. “Why Build Green?” 

http://www.epa.gov/greenbuilding/pubs/whybuild.htm September 28, 2007 

28 Kats, Greg, Principal Author. (Capital E: 2003). The Costs and Financial Benefits of Green Buildings: A Report to 

California’s Sustainable Building Task Force. http://www.mtpc.org/cleanenergy/greenbuilding/impactsavings.htm

78 Building ENERGY STAR Qualified Homes 
environment. Three such guidelines developed by national organizations, are summarized below. While each set of 

guidelines uses a different structure, there is substantial overlap in the types of building practices covered. The 

implementation of these guidelines ranges from a formal third party certification process to voluntary guidelines to 

be used by developers or owners as deemed appropriate. Contact information for these organizations is provided 

in Appendix 1: Resources. 

HUD encourages PJs to consider adopting green building practices in their affordable housing projects when it is 

feasible and consistent with local program goals. However, HUD does not require PJs to implement green 

building practices, nor does it endorse one set of guidelines over another. 

Leadership in Energy and Environmental Design (LEED) – U.S. Green Building Council 

The U.S. Green Building Council (USGBC) is a nonprofit organization composed of leaders from every sector of 

the building industry working to promote buildings that are environmentally responsible, profitable, and healthy 

places to live and work. The USGBC developed The Leadership in Energy and Environmental Design (LEED) 

Green Building Rating SystemTM which is a common standard for the design, construction, and operation of high 

performance green buildings. Based on this rating system, a project may receive certification of meeting one of 

four different performance levels: certified, silver, gold, or platinum. LEED promotes a whole-building approach 

to sustainability by recognizing performance in five key areas of building performance. These areas are: 

• Sustainable site development; 

• Water savings; 

• Energy efficiency; 

• Materials selection; and 

• Indoor environmental quality. 

Green Communities Initiative, Enterprise Community Partners 

Enterprise Community Partners established the Green Communities initiative to mainstream green building and 

sustainable development in the affordable housing industry. Through Green Communities, Enterprise provides 

financial support and technical expertise to enable developers to build and rehabilitate homes that are healthier, 

more energy efficient, and better for the environment on a cost-effective basis. They also work with state and local 

governments to ensure their housing and economic development policies are sustainable. 

Projects supported by Green Communities must meet a set of criteria established by Enterprise. These criteria, 

designed to align with the LEED criteria, involve the following eight topics. 

• Integrated design process; 

• Location and neighborhood fabric; 

• Site improvements; 

• Water conservation; 

• Energy efficiency; 

• Materials beneficial to the environment; 

• Healthy living environment; and 

• Operations and management. 

Building ENERGY STAR Qualified Homes 79
Green Home Building Guidelines, National Association of Home Builders 

The National Association of Home Builders (NAHB) has developed voluntary green building guidelines that target 

builders and home builder associations looking to incorporate green building practices into the development, design, 

and construction of new homes. The guidelines are available from NAHB for free and contain six main sections: 

• Site preparation and design; 

• Resource efficiency; 

• Energy efficiency; 

• Water efficiency/conservation; 

• Occupancy comfort and indoor environmental quality; and 

• Operation, maintenance, and education. 

5.5. Key Steps When Incorporating Green Building Practices 

PJs can incorporate green building practices into both new construction and rehabilitation activities. When PJs 

incorporate green building practices into their activities together with energy efficiency measures, it reduces 

operating and maintenance costs for owners and occupants, enhances the durability of the property, and improves 

the quality of life for residents. 

At the same time, PJs face the challenge of determining which green building practices are feasible and costeffective given the scope and nature of projects. The suggested steps below present a series of good practices to 

help PJs successfully incorporate green building practices into their development programs in a way that is 

consistent with state and local program priorities, as well as local capacity. 

Basic Steps Similar to Incorporating ENERGY STAR 

To incorporate green building practices into HOME-funded activities, a PJ can follow many of the same steps 

described in Chapter 3 for ENERGY STAR projects, with a focus on green building practices. These steps include: 

• Identify housing activities where green building is compatible with local program goals; 

• Assess state and local contractor capacity and additional sources of support; 

• Decide whether to encourage or require green building practices; 

• Revise HOME program procedures and other written materials to ensure that developers meet green building 

guidelines; 

• Train program staff; 

• Conduct outreach and education to program partners; 

• Implement procedures for monitoring developer performance; and 

• Continue period outreach and education. 

Additional Considerations Specific to Green Building Practices 

The steps above parallel the steps outlined in Chapter 3. In addition to these steps, green building practices involve 

several additional considerations beyond those identified for ENERGY STAR. 

• Identify state or local green building goals, program, or requirements. State and local governments are 

increasingly establishing their own green building goals, programs, or requirements for their communities. 

Determine if such goals, programs, or requirements exist or are under development in communities within the 

PJs program area. If they do exist, make sure to address the relevant elements in HOME-funded activities. 

80 Building ENERGY STAR Qualified Homes 
• Select the standards or guidelines to use. Unlike ENERGY STAR, which has established performance 

standards, no single recognized standard exists for green building practices. PJs need to decide whether to rely 

on one of the existing standards (such as LEED), tailor existing standards to their own circumstances, or 

develop their own standards. Working with existing standards is likely to be the most efficient, but PJs still 

need to determine which set of standards is the best fit for their community. (Note, the following section 

provides guidance on how PJs can approach this question.) 

• Determine the program approach to addressing green building practices. When examining its existing 

housing activities and determining how to encourage or require green building practices. PJs need to decide 

whether to develop a stand-alone program for supporting green building, or to incorporate green building 

practices into existing activities. For example, a PJ could: 

– Establish a separate activity, distinct from current housing activities that requires developers to achieve 

specific green building standards; 

– Offer incentives for meeting green building practices under its current funding process; or 

– Revise its standards to require some green building practices, such as those related to water conservation 

and healthy home design, while providing incentives or bonus points for additional green building practices. 

• Choose the method for monitoring and/or certifying the use of green building practices. This may be 

done by PJ staff, a qualified third-party, or with developer self-certification that the green building practices 

were incorporated into the building. 

• Build in flexibility to allow for expansion and innovation. When considering how to incorporate green 

building into HOME-funded activities, HUD encourages PJs to adopt approaches that are flexible enough to 

accommodate changes and innovation in green building practices and technologies. As the field of green 

building continues to grow, there will be new resources, lessons, and practices that emerge or become 

increasingly cost-effective. A program design that can capture these changes will be able to grow without 

requiring major program changes or restructuring to take advantage of this new knowledge. 

5.6. Green Building Practices 

The remainder of this chapter provides overview information on some specific green building practices that address: 

• Site design; 

• Building materials and construction practices; 

• Renewable energy; 

• Water conservation; 

• Healthy home design; and 

• Operations and management. 

This information should help PJs assess and select green building practices that are consistent with local program 

goals and priorities. Each description summarizes how the building practice addresses sustainable building design, 

and also identifies key design considerations that impact the effectiveness of the practice. 

PJs can simply adopt an established set of practices (e.g., LEED or Green Communities), or develop its own set of 

practices. PJs that opt to develop their own set of individual practices can use the overview below as a starting 

point to identify the set suitable to their activities. PJs should ask the following questions when selecting practices 

suited to their housing activities: 

• How important are the benefits of this practice given local program goals and priority community needs? 

• Should this practice apply to new construction only, or should it also apply to rehabilitation? If applicable to 

rehabilitation, what size or types of rehabilitation are most applicable? 

Building ENERGY STAR Qualified Homes 81
• Does this practice, or elements of the practice, closely reflect existing program requirements or guidelines 

which could be easily updated to fully incorporate the green features of the practice? 

• Should a practice or element of a practice be added as a program requirement or guideline, or should it be 

encouraged in program procedures? 

• What program requirements, guidelines, or procedures need to be updated to allow for a green practice to be utilized? 

HealthyBuilt Homes: Building Green with ENERGY STAR Standards 

North Carolina HealthyBuilt Homes is a voluntary, statewide green building certification program 

supported by the North Carolina Solar Center, the State Energy Office, Home Builder 

Associations, and other professional building organizations. 

Who is the program targeted at? 

Small to medium sized home builders who may not have the resources to compete with larger 

green builders. 

What are the guidelines for certification? 

• Site and Landscaping. Use of erosion control methods and native, non-invasive species; 

• Energy. All homes are ENERGY STAR certified; 

• Indoor Air Quality. Use of fresh air systems, moisture control, non-toxic materials; 

• Water. Conservation through landscaping, fixtures, appliances; and 

• Materials. Use of durable and renewable, recycled, and engineered products. 

What are the benefits of HealthyBuilt Homes? 

• Reduced risk of mold; 

• Third party verification; 

• Reduced energy and operating costs; 

• Improved comfort and durability; 

• Higher home value; and 

• Environmental protection. 

What does the HealthyBuilt Home Program offer to participating homebuilders? 

• Recognized green certification; 

• Technical and marketing assistance; 

• Design reviews; 

• Workshops; and 

• Field consultation services. 

How many HealthyBuilt Homes have been built? 

As of 2007, there were 105 certified HealthyBuilt Homes and 489 homes "in progress" in the 

Western North Carolina area. 

For more information about HealthyBuilt Homes, see www.healthybuilthomes.org. 

PJ program staff does not need to know the technical details of carrying out each green building practice, but it 

should understand each concept so it is able to effectively work with contractors and developers. However, the 

PJ’s building and construction specialists should have training in the green building practices encouraged by the PJ 

to assure effective oversight and monitoring of developers, CHDOs, and subrecipients carrying out these 

practices. Finally, it is a good practice to obtain technical assistance from an experienced green building advisor 

who understands the technical aspects, and brings direct experience with a range of green projects. 

82 Building ENERGY STAR Qualified Homes 
5.7. Site Design 

When designing and improving a site, green building practices look to minimize the impact on the surrounding 

environment and preserve or restore natural features. While these activities typically apply to new construction 

projects, and in some circumstances they may also apply to rehabilitation. 

• Locate building, roads, and parking to preserve highest value vegetation and environmental features; 

• Construct homes with an orientation designed to maximize solar potential, based on climate; 

• Plant trees to increase shading and moderate temperatures, based on climate; 

• Minimize slope disturbance and limit development footprint on steep slopes; 

• Consider terracing, retaining walls, and landscaping to reduce long-term erosion; 

• Plan landscaping to minimize water demand while preserving the natural environment; 

• Select turf grass and plants that are native to the area; 

• Group plants together that have similar watering needs; and 

• Grow privacy screens and fencing, rather than constructing them. 

Controlling rainwater and groundwater. Failing to properly control these elements can create moisture problems inside 

the building, which is discussed in more detail later, but also impacts the durability of the building. Successful 

rainwater and groundwater control can benefit landscaping and reduce water demand for plants. 

Rainwater Control 

The key objective in controlling rainwater is to direct rainwater downward and outward, away from the building. 

This can be achieved by layering materials to shed water. Overhangs and canopies keep water away from walls and 

windows. Effective site grading can keep water away from the foundation. Proper drainage is critical in 

successfully controlling rainwater. New construction or renovation activities should consider drainage of the: 

• Site; 

• Ground; 

• Building; 

• Assembly; and 

• Openings (doors and windows). 

Groundwater Control 

The key objective in controlling groundwater is to keep it away from the foundation wall perimeter. This can be 

achieved by draining groundwater with sub-grade perimeter drains. This can be done for basements, crawlspaces, and 

slabs. For either new construction or rehabilitation activities, consider the following techniques to control groundwater: 

• Create a capillary break. This can be achieved by dampproofing exterior basement walls. 

• Consider interior basement insulation choices carefully. Interior basement insulation and finished walls are 

vulnerable to moisture problems. When insulating a basement wall use a layer of form board to prevent 

moisture problems. 

• Avoid carpets on below-grade slabs, unless slabs are insulated. If a carpet is on an uninsulated slab, when the 

climate is cold with high humidity, the carpet creates an ideal climate for dust mites and mold growth. 

• Use exterior drainage when feasible. If exterior drainage is not practical or feasible, interior perimeter drainage 

can be used and connected to an interior sump pump. 

Building ENERGY STAR Qualified Homes 83
Many of the elements of green site design and rain and groundwater control incorporate good design features and 

common sense that can be achieved with minimal, if any additional cost, depending on the features of the property. 

These practices increase the durability of a building and reduce maintenance and operating costs. These elements 

should be considered in all new construction projects and to the extent feasible with rehabilitation projects. 

5.8. Green Building Materials 

The use of green building materials can reduce construction debris and improve indoor air quality. EPA estimated 

that 136 million tons of building-related construction and demolition debris materials were generated in the U.S. in 

1996. Most of this was from renovation and demolition: concrete and mixed rubble accounted for 40-50 percent 

of the waste; and debris and wood accounted for another 20-30 percent.29 In addition, building materials that offgas chemicals can pollute the inside air of new buildings, with some new buildings having chemical concentrations 

100 times greater than outside levels. 

While the environmental conditions and criteria may vary from project to project, many factors can be considered 

when selecting building materials or processes. In all or most building projects these have modest cost impacts. 

Also, a variety of materials are available, representing a range of improvement over conventional materials. The 

range may go from conventional products to those that are “good” with a modest benefit over the conventional 

product, “better” with a significant improvement, and “best” which represents the “greenest” product available. 

While requiring the “best” green approach for all building materials may not be cost-effective or realistic, 

increasing the use of “good” and “better” materials while moving in the direction of “best” materials is beneficial. 

Green materials generally have all, or most, of the following features: 

• Low toxicity. Select materials for which the manufacturer has reduced the use of toxicity of a product. Do not 

use carcinogenic compounds and ingredients. 

• Low or no emissions. Select products that have low 

or zero emissions of volatile organic chemicals 

(VOCs) and avoid the use of chlorofluorocarbons 

(CFCs). Pressed wood products, adhesives, and many 

finishes (such as paints and varnishes) contain VOCs. 

The City of Seattle has developed guidelines and incentives 

to promote green building in its community. For its 

affordable housing activities, the Seattle Office of Housing, 

working with local affordable housing experts, developed a 

sustainable building guide for nonprofit developers entitled 

“’SeaGreen’ Greening Seattle’s Affordable Housing.” This 

guide is presented in a checklist format with strategies 

presented as achievable, essential, or recommended. The 

guide covers topics including enhanced design, site and 

water, energy efficiency, health and indoor air quality, 

materials efficiency, and operations and maintenance. 

Applicants for funding from the Office of Housing are 

required to submit a sustainability plan based on the 

SeaGreen guide. Funding is limited and competitive, so 

successful applications generally incorporate most 

SeaGreen Action Items into their project designs. 

For more information go to: 

http://www.seattle.gov/dpd/GreenBuilding/

Seattle’s SeaGreen Program 

• Recycled content. Use products or materials 

comprised of recycled content, with a preference 

for post-consumer content. 

• Recyclable. Use products or materials that are 

recyclable at the end or their useful life. 

• Sustainable. Consider products that come from 

renewable natural resources harvested from 

sustainably managed sources, preferably with an 

independent certification. 

• Durable. Select products and materials that are 

more durable and last longer than conventional 

counterparts. For example, stone, brick and 

concrete are more durable materials than wood and 

vinyl products, and they retain solar heat in the 

winter and remain cool in summer. 

 

29 Characterization of Building-Related Construction and Demolition Debris in the United States. Prepared for USEPA by Franklin 

Associates under subcontract to TechLaw, Inc. June 1998 

84 Building ENERGY STAR Qualified Homes 
• Moisture-resistant. Select products and materials that resist moisture or inhibit the growth of mold or 

biological contaminants. 

• Energy efficient. Use materials, components, and systems that reduce energy consumption. Refer to Chapters 

3 and 4 of this guide for more information on ENERGY STAR and other energy efficient building practices. 

• Water conserving. Select products and systems that reduce water consumption and design landscaping to 

reduce water needs.30

PJs can use the green building guidelines established by LEEDS, Enterprise Foundation, NAHB, or other 

organizations as the basis for encouraging developers and contractors to utilize green building materials. 

5.9. Resource Efficiency 

When constructing or rehabilitating a home or multifamily building, it is both environmentally friendly and 

potentially cost-effective to use resources efficiently, and not waste materials. Green building guidelines can 

provide detailed information and guidance on specific techniques and processes that contribute to resource 

efficiency. These guidelines often address the following types of issues: 

• Reduce the amount of material used and waste generated. This can be achieved through: 

– Efficient floor plan, 

– Advanced framing techniques that use fewer materials while maintaining structural integrity, 

– Building dimensions that minimize the need for cutting materials, 

– Building materials that do not require additional finish on-site, and/or 

– Pre-cut or pre-assembled building systems or methods. 

• Enhance the durability of the building. This can be achieved by incorporating design features that minimize the 

degradation and weathering of building materials to maximize the expected life of the material or product. This 

can be achieved by controlling moisture, described in more detail below. 

• Disassemble or deconstruct buildings when feasible. Reuse these salvaged materials when possible. 

• Use building materials with recycled content. 

• Conduct on-site recycling of materials and waste. 

• Use materials manufactured from renewable resources. 

• Use locally available materials and products.31

5.10. Renewable Energy 

Previous chapters of this guide discuss improving energy efficiency in buildings, with a focus on ENERGY STAR 

and building new homes to the ENERGY STAR qualified homes standard. Energy efficiency is a central 

component of green building, as a building that wastes energy is not an environmentally-friendly building. 

Renewable energy sources are energy efficient and have the environmental advantage of utilizing non-carbon 

based fuel as a primary source of energy. These renewable energy systems often have a high initial cost, which may 

make them less attractive, but their long-term energy savings are generally substantial. Other project-specific 

 

30 Froeschel, Lynn. “Environmental Assessment and Specifications of Green Building Materials.” The Construction Specifier. 

October 1999. NOTE: There are many descriptions of green building materials. We have used the elements listed by Ms. 

Froeschel because it was frequently referenced by other organizations, and because of her clear and concise descriptions. 

Although the article may be old, the concept and description remain valid and relevant. 

31 National Association of Home Builders Research Center. Green Home Building Guidelines. Available online at: 

http://www.nahbrc.org/greenguidelines/checklist_resource.html October 10, 2007 

Building ENERGY STAR Qualified Homes 85
factors also need to be considered when determining whether to use these approaches. Geographic location, site 

design features in terms of space and solar orientation also impact whether these renewable energy systems are 

practical for an affordable housing project. 

Solar Thermal Energy Systems 

One of the most cost-effective ways to include renewable technologies into a building is by incorporating solar hot 

water. A typical residential solar water-heating system reduces the need for conventional water heating by about 

two-thirds. It minimizes the expense of electricity or fossil fuel to heat the water and reduces the associated 

environmental impacts. 

Most solar water-heating systems for buildings have two main parts: (1) a solar collector and (2) a storage tank. 

Solar water heaters use the sun to heat either water or a heat-transfer fluid in the collector. Heated water is then 

held in the storage tank ready for use, with a conventional system providing additional heating as necessary. The 

tank can be a modified standard water heater, but it is usually larger and better insulated. Solar water heating 

systems can be either active or passive, but the most common are active systems.32

Solar water heating systems can be installed in most locations, even in northern most climates with pipe-freeze 

protection systems, and are based on the solar orientation of the building. 

Photovoltaic Energy Systems 

Photovoltaic (PV) energy systems use semi-conductors to convert sunlight into electricity. For housing projects, 

the most common system design uses flat-plate PV modules or panels. These panels can either be fixed in place or 

allowed to track the movement of the sun. They respond to sunlight that is either direct or diffuse. The simplest 

PV array consists of flat-plate PV panels in a fixed position. 

PV systems can be designed in numerous settings and with different features, including as a stand-alone system or 

connected to generators. However, housing PV systems are most often connected to the existing utility grid. 

Homeowners or multifamily property owners can use a grid-connected PV system to supply some of the power 

they need and use utility-generated power at night and on very cloudy days. When the PV system supplies power 

to the grid as well as to a specific building or piece of equipment, the utility becomes a kind of storage device or 

battery for PV-generated power. 

When considering a PV system, it is necessary to check the site to determine that it has enough solar energy to 

meet the building’s electricity needs efficiently and economically. Check with a local system supplier to perform a 

solar site analysis. 

When mounting PV modules on a roof, consider: 

• Orientation to the sun, with exposure to the south. Modules can face up to 45° east or west of true south 

without a significant decrease in performance. 

• Roof orientation and condition. 

• Local landscape features that shade the collector daily or seasonally. 

• Local weather conditions (foggy mornings or cloudy afternoons) that may affect the optimal orientation and 

subsequent electricity production of the PV modules. 

 

32 U.S. Department of Energy. Energy Efficiency and Renewable Energy: Solar Water Heating. Available online at: 

http://www1.eere.energy.gov/solar/sh_basics_water.html October 5, 2007 

86 Building ENERGY STAR Qualified Homes 
In multifamily buildings, PV systems can be used to reduce energy consumption in numerous ways, including: 

• Lighting in hallways and common areas; 

• Lighting in parking lots and exterior walkways; and 

• Electricity to laundry rooms and facilities. 

Colorado Court – Santa Monica, California 

Colorado Court is a 30,150-square foot, five-story, 44-unit affordable housing 

development designed by the Santa Monica architecture firm Pugh Scarpa Kodama (PSK) 

and developed by the nonprofit Community Corp. of Santa Monica. The building is built 

to LEED certification standards and among its many green building features, the 

building’s façade consists of 199 photovoltaic panels which supply most of the building’s 

peak load energy demand. The unused energy created by the panels is returned to the 

electric grid during the day and electricity is retrieved from the grid during the night, if 

needed. The total energy savings for the building is over $6,000 per year and the payback 

period for the energy saving features is estimated to be 10 years. 

For more information go to: http://www.californiasolarcenter.org/solareclips/

Although improvement in solar technology continues and the costs of these systems are coming down, the initial 

investment for a PV system is still high compared to conventional system. As the costs for PV systems decrease, 

they may become more economically beneficial, but currently (2007) they may only make sense for some 

affordable housing projects with the right conditions, including lots of sun exposure. 

Wind Power 

Small wind turbines, mounted on towers between 80 and 120 feet tall, can generate electricity from the wind for 

home use. With on-site installations documented in at least 47 states, wind is a recognized renewable energy source 

for distributed generation of power on residential home sites. A wind-powered generator, or turbine, situated at the 

top of a high tower, has blades which spin to generate electricity. The electricity can either be used locally and/or any 

excess energy generated can be sold to the utility company. In a typical residential application, the power from the 

wind turbine is connected to the main electric service wire to the home. Special interconnection equipment allows 

powering the home, or sending the excess power generated by the turbine back to the utility grid. 

Due to their height, wind turbines are best suited for remote or low-density residential lots of one acre or more. 

Until there are further advances in technology and costs are reduced, wind power is unlikely to be a viable option 

for most affordable housing projects. 

Geothermal Power 

Geothermal heat pumps (sometimes referred to as GeoExchange, 

earth-coupled, ground-source, or water-source heat pumps) have 

been in use since the late 1940s. Geothermal heat pumps (GHPs) 

use the constant temperature of the earth as the exchange medium 

instead of the outside air temperature. This allows the system to 

reach fairly high efficiencies (300 percent to 600 percent) on the 

coldest of winter nights, compared to 175 percent to 250 percent 

for air-source heat pumps on cool days. 

Dalton’s Edge is a 120-unit senior affordable 

apartment complex in Allegheny County, 

PA. The building incorporates several green 

building features, including a geothermal 

heating and cooling system. 

Dalton’s Edge—Allegheny County, PA 

Building ENERGY STAR Qualified Homes 87
Even though the installation price of a geothermal system can be several times that of an air-source system of the 

same heating and cooling capacity, these additional costs are paid back in energy savings in five to ten years. 

System life is estimated at 25 years for the inside components and 50+ years for the ground loop. 

The biggest benefit of a GHP is that it uses 25 percent to 50 percent less electricity than a conventional heating or 

cooling system. According to the EPA, a geothermal heat pump can reduce energy consumption—and 

corresponding emissions—up to 44 percent compared to an air-source heat pump, and up to 72 percent compared 

to electric resistance heating with standard air-conditioning equipment. 33

The cost benefits for geothermal power are more reliable than wind or solar. There are space and soil 

considerations to the application of geothermal power, but they are less significant than those for wind. While 

geothermal may not be an appropriate approach in all situations, it may be feasible and effective in many situations 

and should be considered on a project-by-project basis. Because geothermal systems are custom-designed to fit the 

features of the project site, consult a contractor experienced in geothermal systems before pursuing this option. 

5.11. Water Management 

In addition to controlling rainwater and groundwater, as discussed above, there are two other elements of water 

management that contribute to a green building. These water management practices can be easily incorporated into 

all affordable housing projects with minimal cost, but significant short- and long-term savings in operating and 

maintenance costs. 

• Interior moisture control. Controlling water and moisture is a critical factor to establishing a healthy home. 

Water and moisture lead to mold, insects, rodents, and dust mites, all of which harm the indoor environment. 

Failure to control water can also contribute to property deterioration and increase maintenance costs. Interior 

moisture primarily concerns the buildings plumbing. 

• Water conservation. Conserving water and installing water-saving appliances and devices reduces water usage 

which, in turn, lowers water utility costs. 

Interior Moisture Control 

Plumbing is bound to leak. Therefore, where feasible, plumbing should be installed in interior walls where it can be 

most easily found and fixed. It is good practice to avoid plumbing in insulated exterior walls and ceilings as these 

areas are subject to greater temperature swings, which put expansion and contraction pressures on pipes, and can 

result in leaks and breaks. Good practices for controlling plumbing leaks include: 

• Bathrooms 

– It is best to use cement board, fiber board, or paperless gypsum board. 

– Do not use paper-faced gypsum board in wet areas such as tub and shower enclosures. If gypsum board is 

used, keep it off the floors everywhere at baseboard locations. This reduces the chance of water coming in 

contact with the paper-faced wall board. 

• Clothes washers and water heaters 

– Place clothes washers in rooms with floor drains and with a floor covering that can be wet mopped. 

– Use reinforced hose connectors on clothes washers to prevent leaks. 

– Install water heaters in rooms with drains and floors that are not water sensitive. In warm climates, it best to 

put water heaters in a garage. Do not install water heaters in attics. 

– Provide shut-off valves for washers and water heaters that are easily accessible and visible. 

 

33U.S. Department of Energy. Energy Efficiency and Renewable Energy: Geothermal Heat Pumps. Available online at: 

http://www.eere.energy.gov/consumer/your_home/space_heating_cooling/index.cfm/mytopic=12640 October 10, 2007 

88 Building ENERGY STAR Qualified Homes 
• Air conditioning systems 

• Note, air conditioning systems serve as dehumidifiers as well as a source of cooling air, which means that they 

condense air on a cold coil and drain the condensation to a drain or the outside. 

• Wherever air conditioners are installed, their drain pans must be constructed and installed so that they drain 

properly. 

Water Conservation 

Water is a valuable resource and there are many available products that reduce water usage, as compared to 

conventional products. According to EPA, the average household spends as much as $500 per year on its water 

and sewer bill. By making just a few simple changes to use water more efficiently, households can save about $170 

per year. Furthermore, reducing water usage reduces energy bills as less water needs to be heated. EPA has 

established the WaterSenseSM program to label products that are water efficient. For new construction and 

rehabilitation projects, look for the following products with the WaterSenseSM label: 

• High efficiency toilets. High efficiency toilets use less than 1.3 gallons per flush. Unlike the first generation of 

“low-flow” toilets, advances in design allow for less water usage with no trade-offs in terms of performance. 

• Bathroom sink faucets. In 2008, EPA will issue its WaterSense label for bathroom sink faucets that will use 

no more than 1.5 gallons per minute. These high-efficiency faucets and accessories (such as faucet aerators) can 

reduce the standard flow by more than 30 percent without sacrificing performance. 

• Showerheads. EPA is looking to improve showerhead performance and is defining the criteria for a high 

performance showerhead. 

• ENERGY STAR appliances. Install ENERGY STAR dishwashers and clothes washers to reduce water demand. 

• Point-of-use hot water heating systems. Also known as tankless hot water heaters, point-of-use hot water 

heaters are installed near sinks or other demand areas and provide hot water on demand. They are more efficient 

because there is no storage tank and no heat loss from storing water or transporting hot water through pipes. 

5.12. Healthy Home Design 

Environmental hazards in the home harm millions of children and adults each year. Many of these hazards are caused 

by poor indoor air quality resulting from carbon monoxide, chemicals released from materials, radon, nitrogen 

oxides, sulfur oxides, soot and other particles. In addition, mold and mildew harms the indoor environment and can 

impact the integrity of the home itself. When building or renovating a building, the PJ can reduce these hazards and 

improve the indoor environment for the occupant by taking some simple steps. As described in Chapters 3 and 4, 

buildings that meet ENERGY STAR standards do not have these types of problems. 

The additional financial cost for the design features described below should be modest or cost-neutral. These 

should become standard practice in all affordable housing projects as they are critical to ensure the health and 

safety of occupants. 

Ventilation 

Good ventilation is essential to controlling humidity and indoor air pollutants. There are two types of ventilation, 

each of which are needed for a healthy home, spot ventilation and dilution ventilation. 

Spot ventilation addresses ventilation needs at specific locations where pollution or moisture is most common or 

likely, such as bathrooms and kitchens. Spot ventilation includes: 

• Kitchen and bathroom fans. Every home should have exhaust fans in the kitchen and in every bathroom, 

vented to the outside. Kitchen range hoods should be exhausted to the outside to prevent moisture, odor, and 

pollutants from circulating throughout a home. 

• Clothes dryers should be vented to the outside as they are a significant source of moisture and pollutants. 

Building ENERGY STAR Qualified Homes 89
Dilution ventilation seeks to address low-levels of pollutants that exist throughout a home. Dilution ventilation can 

be provided by a continuous and fan-powered exhaust or supply system. Effective dilution ventilation requires a 

good distribution system, such as forced air duct system and a source of outside air throughout the house. The 

American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) establish standards to 

guide professionals on the design and maintenance of indoor air environments. When designing a dilution system, 

ASHRAE Standard 62.2 should be followed to establish dilution ventilation rates for new and renovated homes.34

If the building specifications or standards for a PJ do not already incorporate this ASHRAE standard, the PJ 

should consider incorporating it into specification or standards. 

Emissions Control 

Combustion appliances, such as gas-burning stoves, ovens, furnaces, boilers, and water heaters, can produce 

carbon monoxide if not installed properly or operating correctly. Carbon monoxide is a major health threat in 

homes and can cause death. Carbon monoxide is not the only by-product of combustion appliances. Even “clean” 

burning appliances produce water vapor, nitrogen oxides, sulfur oxides, and carbon dioxide, all of which can cause 

health problems for occupants. Controlling these emissions is a component of having good ventilation, as 

described above, but because of the particular hazards associated with combustion appliances, these emissions 

require specific attention. 

For both new construction and rehabilitation projects, the PJ should incorporate the following elements to control 

dangerous emissions in a home: 

• Use electric ranges and ovens with exhaust fans, when feasible. If gas stoves and ovens are necessary, install 

them in combination with exhaust ventilation. All cooktops and ovens should be installed with range fans that 

exhaust to the exterior. 

• Gas furnaces, boilers, and water heater vent systems should not interact with occupied spaces. They should be 

sealed-combustion power or power-vented devices. 

• Leaky or disconnected ducts in forced heating and cooling systems can result in negative pressures to backdraft 

or spill combustion appliances. Avoid using building cavities, such as planned floor joists, as returns since they 

cannot be sealed airtight. 

• Garages should not be connected to the home, if possible. If garages are connected to a home, they should be 

vented to the exterior with a passive vent stack. Air conditioners and furnaces should not be located in garages, 

nor should forced air ductwork. The door between the garage and the home should be weather-stripped and 

the common wall air sealed. 

Radon 

Radon is a cancer-causing natural radioactive gas that one cannot see, smell, or taste. Its presence in a home 

(including multi-occupant buildings) can pose a danger to the occupants’ health. Radon is the leading cause of lung 

cancer in the U.S. and claims about 20,000 lives annually. For rehabilitation purposes, the EPA and the U.S. 

Surgeon General recommend that all homes (and multi-occupant buildings below three floors) be tested for radon. 

Some states have proficiency programs or requirements to test for radon and maintain lists of available contractors 

qualified to test for radon. If radon levels are above 4 pCi/L (picoCuries per liter of air) then EPA recommends 

that mitigation measures be undertaken, although EPA considers any level of radon a risk so mitigation measures 

may be appropriate for levels below 4 pCi/L. 

There are several proven methods to reduce radon in a home, but the one primarily used is the active soil 

depressurization system (ASD), which pulls radon from beneath the home foundation and vents it (using a vent 

pipe and a fan) to the outside. The right system depends on the design of the home and other factors. Use a 

qualified contractor experienced in addressing radon when determining what mitigation measures to employ. For 

 

34 Building Science Corporation. Read This: Before You Design, Build or Renovate. Draft, May 2005, p. 28-29. 

90 Building ENERGY STAR Qualified Homes 
new construction, ensure that radon reduction features are used, including radon-resistant construction materials.35

For more information on radon, contact a regional EPA office or the state radon office. 

Operation and Management 

Once a building incorporates green building practice into its design, construction, or rehabilitation, it is necessary 

to operate and maintain the building in an environmentally-friendly manner to maintain the benefits of green 

building. Using flooring material that has low or no VOC off-gassing but which is cleaned with toxic chemicals, 

will not achieve the full benefit of improved air quality for occupants. For multifamily buildings, encourage 

property mangers to develop environmentally friendly operations and maintenance procedures, which may include 

the following elements: 

• Use non- or less- toxic cleaning materials and products and only use as much product as needed; 

• Keep entryways clean and use walk-off mats to reduce the amount of dust, dirt, debris and pollen tracked into 

the building; 

• Vacuum carpets frequently and use a high-efficiency particulate air filter (HEPA) vacuum if possible; 

• Enforce non-smoking policies in common areas; 

• Control moisture and repair plumbing leaks promptly; 

• Develop an integrated pest management plan to control pests without using toxic chemical pesticides or 

insecticides; and 

• Perform routine maintenance and replace filters on HVAC systems and duct work.36

 

35 See U.S. Environmental Protection Agency. “Radon-resistant New Construction.” Available online at: 

http://www.epa.gov/radon/construc.html. October 8, 2007. 

36 M. Landman Communications & Consulting Template. Green Operations and Maintenance Manual. 2006. Available online at: 

http://www.practitionerresources.org/showdoc.html?id=63995

Building ENERGY STAR Qualified Homes 91
92 Building ENERGY STAR Qualified Homes 
Appendix 1: Resources 

There are numerous resources available to PJs, CHDOs, and subrecipients to support efforts to incorporate 

energy efficiency and green building practices into affordable housing programs. Below is just a partial list of some 

valuable resources and organizations that can provide information. 

The following is a list of Federal and non-federal energy efficiency and housing resources. Website links to main 

program pages are provided with references to applicable information that can be found within these sites. 

References include specific offices, fact sheets, manuals, and online tools. Websites can and often do change. If a 

website address is no longer active, contact the organization directly for more information. 

Federal Resources 

U.S. Department of Energy (DOE) 

1000 Independence Avenue, S.W. 

Washington, DC 20585 

Phone: 1-800-dial-DOE 

http://www.energy.gov/

• DOE Offices: 

– Office of Energy Efficiency and Renewable Energy: http://www.eere.energy.gov/

This office has resources including information on the Solar Energy Technologies Program and the 

Building Technologies Program. 

• Resources: 

– Insulation Fact Sheet: http://www.ornl.gov/sci/roofs+walls/insulation/

The fact sheet offers helpful advice on insulating an existing or new home, including insulation levels 

recommended for different climates and installment tips. 

U.S. Environmental Protection Agency (EPA) 

Ariel Rios Building 

1200 Pennsylvania Avenue, N.W. 

Washington, DC 20460 

http://www.epa.gov

• EPA Resources: 

– Indoor Air Quality: http://www.epa.gov/iaq/homes/ 

For information and resources related to indoor air quality in homes and activities to undertake during 

rehabilitation activities. 

– Green Building: http://www.epa.gov/greenbuilding/

For information and links to resources related to green building practices. 

Building ENERGY STAR Qualified Homes 93
ENERGY STAR 

ENERGY STAR Hotline (6202J) 

1200 Pennsylvania Avenue, N.W. 

Washington, DC 20460 

ENERGY STAR Hotline: (888) 782-7937 

http:www.energystar.gov

The ENERGY STAR website offers a great deal of information on ENERGY STAR programs, including products 

to buy, how to find local partners and certified contractors advancing ENERGY STAR throughout the country, and 

tools for implementing ENERGY STAR systems and guidelines in a project. The types of tools on this site include: 

• Manuals: 

– A Guide to Energy Efficient Heating and Cooling 

– Build ENERGY STAR Qualified Homes 

• Brochures: 

– Home Sealing Brochure 

– Duct Sealing Brochure 

– New Homes Brochure 

• Online Tools: 

– Home Energy Cost Calculator: http://hes.lbl.gov 

The Home Energy Saver's Energy Advisor calculates energy use and savings opportunities, based on a 

detailed description of the home. 

U.S. Department of Housing and Urban Development (HUD) 

451 7th Street, S.W. 

Washington, DC 20410 

Phone: (202) 708-1112 

http://www.hud.gov/

• HUD Offices: 

– Office of Community Planning and Development (CPD): www.hud.gov/offices/cpd

CPD environmental resources: http://www.hud.gov/offices/cpd/environment/index.cfm 

CPD energy resources: http://www.hud.gov/offices/cpd/library/energy/index.cfm 

These websites offer links and information on the HUD Energy Task Force, ENERGY STAR for 

Grantees, energy efficiency with CDBG and HOME, saving money and energy in HUD-assisted and HUDfinanced housing, combined heat and power for multifamily housing, CPD energy initiatives, screening 

tools, including training for energy efficiency and affordable housing, and other related resources.

– Office of Healthy Homes and Lead Hazard Control: www.hud.gov/offices/lead

For information on addressing lead hazards in homes built before 1978 and information on health issues in housing. 

– Office of Policy, Development, and Research (PD&R) – Partnership for Advancing Technology in Housing (PATH):

http://www.pathnet.org

The PATH website contains articles, newsletters, publications, tools, and resources related to innovation 

and technology in housing. 

– Energy Savers: http://www.energysavers.gov 

This site contains information on Federal and state programs that promote energy efficiency. It is useful for 

consumers to learn about incentives, partnerships, and resources that can save energy in homes, businesses, 

vehicles, or industrial plants. 

– HUD Energy Task Force: http://www.hud.gov/energy/

– HUD energy training archives: http://www.hud.gov/webcasts/archives/envirhealth.cfm

94 Building ENERGY STAR Qualified Homes 
• Online Tools and Resources: 

– “ENERGY STAR for Grantees” PowerPoint Presentation. http://www.hud.gov/energystar/grantees.cfm

This PowerPoint presentation provides an overview of ENERGY STAR with a focus on how HOME and 

CDBG grantees can adopt ENERGY STAR for their residential new construction projects. 

– HUD Rehab Advisor: http://rehabadvisor.pathnet.org 

HUD Rehab Advisor uses information about a project to estimate energy and cost savings that efficiency 

measures will achieve. 

– Durability Doctor: http://www.pathnet.org/durability_doctor/ 

The Durability Doctor provides an analysis of the value that durable components add to a home by 

comparing the cost of the components and the cost savings of increased durability. 

– Tech Sets: http://www.pathnet.org/sp.asp?id=13675 

Tech Sets provide builders with systems-based packages that use complementary products and costeffective technologies that can improve home quality. Each quarter a new Tech Set is released. 

Non-Federal Resources 

American Society of Heating, Refrigerating and Air Conditioning Engineers (ASHRAE) 

1791 Tullie Circle, N.E. 

Atlanta, GA 30329 

http://www.ashrae.org/

ASHRAE provides technical and educational information on heating, ventilating, air conditioning and 

refrigerating. Its website includes research, publications, newsletters, handbooks, online learning, satellite 

broadcasts, standards, and journals. 

Canada Mortgage and Housing Corporation (CMHC) 

700 Montreal Road 

Ottawa, Ontario 

K1A 0P7 

Phone: (613) 748-2000 

http://www.cmhc-schl.gc.ca/en/inpr/

CMHC provides a variety of case studies, resources, and other tools on building technology, green building, and 

affordable housing. It also offers an e-newsletter that provides the latest information on housing technology. 

Enterprise Community Partners’ Green Communities Initiative 

10227 Wincopin Circle, Suite 500 

Columbia, MD 21044 

Phone: (410) 715-7433 

http://www.greencommunitiesonline.org/

Green Communities provides funds and expertise to developers building and rehabilitating affordable homes in an 

energy efficient and environmentally sustainable manner. Green Communities also assists state and local 

governments to ensure their housing and economic development policies are smart and sustainable. 

National Association of Home Builders (NAHB) 

1201 15th Street, N.W. 

Washington, DC 20005 

Phone: (202) 266-8200 or (800) 368-5242 

http://www.nahb.org

NAHB is a trade association that helps to promote policies that make housing a national priority. Its website offers 

economic and housing data, housing issues and policies, research, business management tools, publications, 

certifications, newsletters, reports, magazines, audio seminars, webcasts, and toolkits. 

Building ENERGY STAR Qualified Homes 95
• NAHB Research Center: http://www.nahbrc.org/

The NAHB Research Center offers technical information on building products, materials, new technologies, 

business management, and housing systems, and specialized material and structural systems testing. The Center 

also provides customized market research to help develop new products and markets and refine existing 

products and their production, certification programs, and green building research. 

– Green Building Guidelines: http://www.nahbrc.org/greenguidelines

The NAHB Green Home Building Guidelines were created for home builders to highlight the ways a 

mainstream homebuilder can effectively weave environmental solutions holistically into a new home and to 

provide a tool that local associations can use to create their own green home building program. 

Natural Resources Canada, Office of Energy Efficiency (OEE) 

Office of Energy Efficiency 

580 Booth St. 18th floor 

Natural Resources Canada 

Ottawa ON K1A 0E4 

To order publications: 1 800 387-2000 

http://oee.nrcan.gc.ca/english/index.cfm?attr=0

OEE offers publications and resources on improving energy efficiency in buildings and housing. While some 

information is specific to Canadian programs, many resources are broadly applicable. 

Residential Energy Services Network (RESNET) 

P.O. Box 4561 

Oceanside, CA 92052-4561 

Phone: (760) 806-3448 

http://www.resnet.us 

The Residential Services Network (RESNET) created training and certifying standards for the HERS program 

which prescribe minimum competencies for HERS certified trainers and raters. These standards apply to the third 

party raters of ENERGY STAR New Homes as well. The RESNET website includes information about HERS 

trainings, how to become certified as a rater, and descriptions of RESNET and the HERS index and thresholds.

U.S. Green Building Council (USGBC), Leadership in Energy and Environmental Design 

(LEED) 

1800 Massachusetts Avenue, N.W. 

Suite 300 

Washington, DC 20036 

Phone: (800) 795-1747 

http://www.usgbc.org/

The USGBC website includes information resources about training, partnering, and facilitating efforts to create 

buildings that are environmentally responsible, profitable, and healthy places to live and work. It includes a 

description of, and information about, the LEED program and identifies opportunities to promote green building. 

96 Building ENERGY STAR Qualified Homes 
Appendix 2: Glossary 

This glossary includes many relevant terms that a PJ/program manager may come across when incorporating 

ENERGY STAR into their HOME–funded activities. This glossary goes beyond the terms used in this guidebook, 

but is not intended to include every technical definition associated with energy efficiency. Unless noted, most of 

the definitions are from the ENERGY STAR program, EPA, or the Department of Energy, including three 

primary sources – ENERGY STAR’s “Putting Energy into Profits: ENERGY STAR Guide for Small Business” 

and the “ENERGY STAR Building Manual,” or the U.S. Department of Energy’s “Consumer’s Guide to Energy 

Efficiency and Renewable Energy.” 

Air Diffuser A device used to distribute heated or cooled air to a space. 

Air Handling Unit (AHU) Equipment used to distribute conditioned air to a space, including heating and 

cooling coils, fans, ducts, and filters.

Air Side Systems Equipment used to heat, cool, and transport air within building HVAC systems. 

Annual Fuel Utilization Efficiency (AFUE) The efficiency of a boiler is measured using AFUE. Specifically, 

the AFUE measures the amount of fuel converted to space heat in proportion to the amount of fuel entering the 

boiler. This is commonly expressed as a percentage. 

ARI Air-Conditioning and Refrigeration Institute. 

ASHRAE American Society of Heating, Refrigerating, and Air-Conditioning Engineers.

ASME American Society of Mechanical Engineers. 

Balancing Process of measuring and adjusting equipment to obtain desired flows. It applies to both air side and 

water side systems. 

Blower Door Test A blower door test is a variable speed fan, mounted in a doorframe, used to pressurize and 

depressurize a house to measure air leakage. 

Boiler A vessel designed to transfer heat produced by combustion or electric resistance to water. Boilers may 

provide hot water or steam, depending on design and settings. 

British Thermal Unit (Btu) A unit of heat energy equal to the amount of heat required to raise the temperature 

of one pound of water by one degree Fahrenheit at sea level. This is roughly equivalent to the heat given off from 

burning a wooden match. 

Building ENERGY STAR Qualified Homes 97
Builder Option Package (BOP) A set of construction specifications for a specific climate zone. The BOP 

specifies performance levels for the thermal envelope, insulation, windows, orientation, HVAC system and water 

heating efficiency for a specific climate zone that meet the ENERGY STAR standard. 

Building Envelope The exterior surface of a building’s construction—the walls, windows, doors, roof, and floor. 

Also called the building shell. 

Building Performance Institute (BPI) The Building Performance Institute is a nationally recognized, not-forprofit, certification, and accreditation organization providing building performance credentialing services through a 

national network of affiliates. i

 

CABO Council of American Building Officials. Precursor organization of the International Code Council (ICC). ii 

Calibration The process of adjusting equipment to ensure that operation is within design parameters. 

Carbon Dioxide Colorless, odorless, incombustible gas formed during respiration, combustion, and organic 

decomposition. Increasing amounts of carbon dioxide in the atmosphere are believed to contribute to the global 

warming phenomenon. 

Carbon Monoxide Colorless, odorless, poisonous gas formed during incomplete combustion of fuel. 

Cellulose Insulation Insulation made of recycled wood fiber, primarily newsprint. The wood fiber is shredded 

and pulverized into small, fibrous particles that pack tightly into closed building cavities, inhibiting airflow. Types 

of cellulose insulation include: dry or loose fill, wet-spray, stabilized, and low-dust. 

CFM Cubic Feet per Minute, a measure of air flow. 

Chiller A mechanical device that generates a cold liquid that is circulated through an air-handling unit’s cooling 

coil to cool the air supplied to the building. 

Chlorofluorocarbons (CFCs) Chemical compounds consisting of carbon, hydrogen, chlorine, and fluorine, once 

used widely as aerosol propellants and refrigerants. Believed to deplete the atmospheric ozone layer. 

Coefficient of Performance (COP) A measure of efficiency in which a higher value designates a more efficient system. 

Coil, condenser A heat exchanger used to condense refrigerant from a gas to a liquid. 

Coil, cooling A heat exchanger used to cool air under forced convection, with or without dehumidification. May 

consist of a single coil section or several coil sections assembled into a bank. 

Coil, fan A device that combines a heat exchanger and a fan in a single unit that conditions air by forced convection. 

Coil, heating A heat exchanger that heats air under forced convection. May consist of a single coil section or 

several coil sections assembled into a bank. 

Combined Heat and Power (CHP) Also known as cogeneration, CHP is the simultaneous production of electricity 

and heat from a single fuel source, such as: natural gas, biomass, biogas, coal, waste heat, or oil. CHP is an integrated 

energy system that can be modified depending upon the needs of the energy end user. The two most common CHP 

system configurations are a gas turbine or engine with heat recovery unit or a steam boiler with steam turbine. 

Combustion Air Air that supplies the oxygen required to burn fuel. 

Combustion Spillage The unwanted flow of combustion gases into a home. iii 

Commissioning The quality assurance process that ensures design intent is met for new facilities or major rehabilitation.

98 Building ENERGY STAR Qualified Homes 
Compact Fluorescent Lamp (CFL) Small fluorescent lamps frequently used as more efficient alternatives to 

incandescent lighting. They typically have 10 times the rated life and three to four times the efficacy of incandescent lamps. 

Condensate Return System A system of piping that returns the heated water condensing within steam piping to 

the boiler and thus saves energy. 

Condenser A heat exchanger in a refrigeration system that expels building heat absorbed in the evaporator. 

Conditioned Air Air that serves a space and that has had its temperature and/or humidity altered to meet design 

specifications. 

Constant Volume (CAV, or constant air volume) Type of air-handling system that supplies the conditioned 

space at a constant air flow and modulates heating and cooling by varying the air temperature. 

Controls An instrument or set of instructions for operating or regulating building systems. 

Convector A heating unit that circulates heated air by means of natural convection. Normally consists of a heating 

element within an enclosure, with an air inlet below and an air outlet opening above. 

Cooling Tower A device that dissipates the heat from water-cooled systems by spraying the water through 

streams of rapidly moving air. 

Cycling The non-continuous operation of equipment. 

Dampers Single- or multiple-blade devices, either manually or automatically opened or closed, that control the flow of air. 

Damp proofing A process that slows water penetration into foundations. Damp proofing is usually performed by 

applying unmodified asphalt coatings to the foundation surfaces. iv 

Degree-Day A rough measure used to estimate the amount of heating required in a given area. A degree-day is 

defined as the difference between the mean daily temperature and 65 degrees Fahrenheit (F). This is based upon 

the assumption that no heating is required when the temperature is above 65o F, and that proportionately more 

heating is required the further the average temperature drops below 65o F. Cooling degree-days may also be 

calculated to estimate cooling requirements. 

Demand The average rate of electrical usage used over a specified period of time (typically a 15-minute, 30-

minute, or 1-hour period). Measured in kilowatts (kWs). 

Demand Charges Fees charged by a utility company for electric demand. These charges are often highest during 

weekdays in summer. 

Demand, electric Electrical power delivered to a system at a given time or averaged over a designated period. 

Expressed in kilowatts. 

Demand Ventilation Method of controlling the amount of outdoor air intake based on carbon dioxide levels in a space. 

Depressurization Test This combustion safety test determines if any non-sealed combustion appliances will 

backdraft or spill combustion products into the living space.v 

Desiccant A material that absorbs moisture from its surrounding environment. 

Dilution Ventilation A form of exposure control that involves providing enough air in the workplace to dilute 

the concentration of airborne contaminants to acceptable levels. 

Domestic Hot Water All hot water consumed in a building that is used for purposes other than heating a space. 

Building ENERGY STAR Qualified Homes 99
Downsizing Process of reducing the size (capacity) of equipment so that it operates efficiently at design load conditions. 

Dual Duct A type of heating, ventilating, and air-conditioning (HVAC) distribution system that involves 

simultaneous heating and cooling. Two supply ducts (a “hot deck” and a “cold deck”) serve each space, and the 

hot and cold air from them are mixed in the appropriate proportions before being supplied to the space. 

Duct Blaster Test A duct blaster test evaluates the leakiness of the duct system.

Ductwork The distribution system for air in HVAC systems. It is usually made of sheet metal or fiberglass. 

Economizer A mode of HVAC operation using outdoor air for cooling when outdoor temperature and humidity 

levels are suitable. 

Efficacy A measure of how efficiently a light source can produce light, expressed in lumens (of light output) per 

watt (of power input). For example, a 100-watt light source producing 9,000 lumens of light output has an efficacy 

of 90 lumens per watt. 

Efficiency A measure of how much of a desired output is produced per unit of input; typically calculated as the 

amount of useful energy supplied divided by the energy consumed. 

Electric Resistance Heat Heat produced by a flow of electricity through high-resistance wire, tape, or film. 

Emissions Emissions are gases and particles put into the air or emitted by various sources. 

Energy Audit An energy audit assesses how much energy is being used in a home and evaluates what measures 

can be taken to improve efficiency. 

Energy Efficiency Mortgages (EEM) An Energy Efficient Mortgage is a mortgage that credits a home's energy 

efficiency in the mortgage itself. EEMs give borrowers the opportunity to finance cost-effective, energy-saving 

measures as part of a single mortgage and stretch debt-to-income qualifying ratios on loans thereby allowing 

borrowers to qualify for a larger loan amount and a better, more energy-efficient home. 

To get an EEM a borrower typically has to have a home energy rater conduct a home energy rating before 

financing is approved. This rating verifies for the lender that the home is energy-efficient. EEMs are sponsored by 

federally insured mortgage programs and the conventional secondary mortgage market. 

Energy Efficiency Ratio (EER) Energy Efficiency Ratio is a measure of how efficiently a cooling system will 

operate when the outdoor temperature is at a specific level (95oF). In technical terms, EER is the steady-state rate 

of heat energy removal (i.e., cooling capacity) by the product measured in Btuh divided by the steady-state rate of 

energy input to the product measured in watts. This ratio is expressed in Btuh/watt. The higher the EER, the 

more efficient the air conditioner. 

Energy Management System (EMS) A control system capable of monitoring environmental and system loads 

and adjusting HVAC operations accordingly in order to conserve energy while maintaining occupant comfort. It 

may also be used for other control and monitoring, such as lighting and security. 

ENERGY STAR Home Performance A national program from the U.S. EPA and U.S. DOE, is a 

comprehensive, whole-house approach to improving energy efficiency and comfort at home, while helping to 

protect the environment. Specially-trained contractors evaluate homes using state-of-the-art equipment and 

recommend comprehensive improvements that will yield the best results. 

Evaporator A heat exchanger in a refrigeration system that absorbs heat from chilled water or building air, thus 

reducing the supply temperature. 

Exfiltration Refers to conditioned air entering an unconditioned area. 

100 Building ENERGY STAR Qualified Homes 
Exhaust Air Air removed from a building and not reused. 

Fan, Cooling Tower Fans that are used to draw air through the cooling tower to carry away water vapor. 

Fiberglass Insulation An insulation that is spun from molten sand and recycled glass into fibers. Types of 

fiberglass insulation are blanket (batts and rolls) and loose-fill. vi 

Filter A device that removes fine particles from the air stream in an air-handling system. 

Geothermal Heat Pump See Ground Source Heat Pump. 

GPM Gallons per Minute, a measure of flow rate for water or other liquids. 

Green building Green or sustainable building is the practice of creating healthier and more resource-efficient 

models of construction, renovation, operation, maintenance, and demolition. 

Green Communities Initiative Green Communities, a program funded by Enterprise, provides funds and 

expertise to enable developers to build and rehabilitate affordable homes that are healthier, more energy efficient 

and better for the environment. Green Communities homes are built according to the Green Communities 

Criteria, which contains detailed information that addresses aspects of design, development and operations, such 

as integrated design, site, location and neighborhood fabric, site improvements, water conservation, energy 

efficiency, materials beneficial to the environment, healthy living environment, and operations and maintenance. vii 

Green Home Building Guidelines Published in 2005, the voluntary Green Home Building Guidelines 

developed by the National Association of Home Builders cover seven areas, including lot preparation and design, 

resource efficiency, energy efficiency, water efficiency and conservation, occupancy comfort and indoor 

environmental quality, and operation, maintenance, and homeowner education. viii 

Ground Source Heat Pump Also called “Earth Coupled” and “Geothermal,” these heat pumps use underground 

coils to transfer heat from the ground to the inside of a building. Compared with conventional heat pumps, ground 

source heat pumps can have 40-percent higher efficiency, but cost more to install. See also Water Source Heat Pump. 

Gypsum board Gypsum board is an interior wall covering made of layers of gypsum and paper. Gypsum is a 

white mineral made of hydrous calcium sulphate. It is used to make plaster. ix 

Halogen A type of incandescent lamp with higher efficiency than standard incandescent lamps. Halogen produces 

a bright white light ideal for retail applications. 

HealthyBuilt Homes The HealthyBuilt Homes Program provides a certificate for homes that were built with 

sustainable, high-performance building strategies and meet green home guidelines. Built by residential builders, 

these homes are comfortable, healthy, and affordable places that reduce energy and water usage, promote 

renewable energy use and help protect the land where the home is built. x 

Heat Exchanger A device that transfers heat from one fluid to another. 

Heat Gain The rate at which heat enters or is generated within a space at a given point in time. 

Heating Seasonal Performance Factor (HSPF) Rates both the efficiency of the compressor and the electricresistance elements in heat pumps. It is the ratio of the seasonal heating output in Btu divided by the seasonal 

power consumption in watts. The most efficient heat pumps have an HSPF of between 8 and 10. 

Heat Pump An electric device with both heating and cooling capabilities. It extracts heat from one medium at a 

lower temperature (the heat source) and transfers it to another medium at a higher temperature (the heat sink), 

thereby cooling the first and warming the second. 

Building ENERGY STAR Qualified Homes 101
HEPA filter A High Efficiency Particulate Absorbing filter. A HEPA filter removes particles from the air by 

trapping them as air flows through. xi 

HERS Home Energy Rating System. A home energy rating that involves an analysis of a home’s construction 

plans and on-site inspections. Based on the home’s plans, the Home Energy Rater uses an energy efficiency 

software package to perform an energy analysis of the home’s design. This analysis yields a projected, preconstruction HERS Index. Upon completion of the plan review, the rater works with the builder to identify the 

energy efficiency improvements needed to ensure the house meets ENERGY STAR performance guidelines. 

During and upon completion of construction, the rater conducts on-site inspections. Results of these tests, along 

with inputs derived from the plan review, are used to generate the HERS Index score for the home. 

HERS Index The HERS Index is a scoring system established by the Residential Energy Services Network (RESNET). 

On this index, a home built to the specifications of the HERS Reference Home (based on the 2006 International Energy 

Conservation Code) scores a HERS Index of 100, while a net zero energy home scores a HERS Index of 0. The lower a 

home’s HERS Index, the more energy efficient it is in comparison to the HERS Reference Home. 

Home Energy Affordability Gap: The gap between "affordable" home energy bills and "actual" home energy bills. xii 

Humidifier A device that adds moisture to air. 

Humidistat A device that responds to humidity changes and controls equipment by seeking a setpoint. 

HVAC Heating, Ventilating, and Air Conditioning. 

Hydronic A ventilation system that uses heated or cooled water circulated by pumps throughout the building. 

IAQ Indoor air quality. 

Incandescent light bulb Incandescent lighting is the most common type of lighting used in homes. Traditionally, 

it delivers about 85 percent of household illumination. Incandescent lamps operate without a ballast. It lights up 

instantly, providing a warm light and excellent color rendition; it can be dimmed. However, incandescent lamps 

have a low efficacy compared to other lighting options (10–17 lumens per watt) and a short average operating life 

(750–2500 hours). 

Infiltration Air that leaks into a building through the building shell. 

Insulated Concrete Forms (ICFs) Rigid plastic foam forms that hold concrete in place during curing and remain 

in place afterwards to serve as thermal insulation for concrete walls. ICFs consist of insulating foam, commonly 

expanded polystyrene or extruded polystyrene. xiii 

Intergovernmental Panel on Climate Change (IPCC) The Intergovernmental Panel on Climate Change is a 

scientific intergovernmental body set up by the World Meteorological Organization (WMO) and by the United 

Nations Environment Programme (UNEP) to provide decision-makers and others interested in climate change 

with an objective source of information about climate change. xiv 

Internal Rate of Return (IRR) The Internal Rate of Return is the interest rate that is equivalent to the present 

value of expected future cash flows after considering the initial cost of the project. 

International Residential Code (IRC) The International Residential Code is a comprehensive, stand-alone residential 

code that creates minimum regulations for one- and two-family dwellings of three stories or less. It brings together all 

building, plumbing, mechanical, fuel gas, energy, and electrical provisions for one- and two-family residences. 

Kilowatt (kW) Unit of power (demand) equal to 1,000 watts. 

Kilowatt-hour (kWh) A unit of electric energy equal to the energy consumed by a 1-kilowatt load operated for one hour. 

102 Building ENERGY STAR Qualified Homes 
LEED Leadership in Energy and Environmental Design. LEED is a third-party certification program and a 

nationally accepted benchmark for the design, construction, and operation of high performance green buildings. xv 

Light-Emitting Diode (LED) An illumination technology that requires very little power and has a rated life 

greater than 80 years. It is often used for exit signs. 

Load The demand upon the operating resources of a system. In the case of energy loads in buildings, the word 

generally refers to heating, cooling, and electrical (or demand) loads. 

Low-Emissivity (low-E) Windows A new window technology that lowers the amount of energy loss through 

windows by inhibiting the transmission of radiant heat while allowing plenty of light to pass through. 

Low-Voltage Halogen An incandescent lamp that produces bright white light at a higher efficiency than standard 

incandescent lamps. The high “sparkle” from low-voltage halogen lamps makes them well suited for retail spot lighting. 

Lumen A unit of measurement of the rate at which a light source produces light per unit time. 

Megawatt One million watts. 

Maintenance An ongoing process to ensure equipment operates at peak performance. 

Meter A device used to measure and display or record data. 

Microturbine Small combustion turbines that produce between 25 kW and 500 kW of power. xvi 

Mixing Box A component of an air-handling system in which air streams from two different sources and are 

combined to form a uniform air stream. 

Model Energy Code (MEC) The Model Energy Code is a national minimum standard for energy efficient 

residential construction developed by the Council of American Building Officials. The International Energy 

Conservation Code has replaced the MEC as the energy performance standard of ENERGY STAR qualified homes. 

Multi-zone A type of HVAC distribution system that involves simultaneous heating and cooling. Hot and cold air 

are supplied at the multi-zone unit and mixed in appropriate proportions to provide the supply-air temperatures 

needed in each zone. 

National Association of Home Builders (NAHB) A trade association that promotes policies to make housing 

a national priority. Chief among NAHB’s goals is to provide and expand opportunities for all consumers to have 

safe, decent, and affordable housing. xvii 

National Fenestration Rating Council (NFRC) The National Fenestration Rating Council is a nonprofit 

organization that administers uniform, independent rating and labeling system for the energy performance of 

windows, doors, skylights, and attachment products. xviii 

Nitrogen Oxides (NOx) Chemical compounds that contain nitrogen and oxygen. They react with volatile 

organic compounds in the presence of heat and sunlight to form ozone and are a major precursor to acid rain. 

Off-peak Refers to a utility rate schedule that designates the time of day when energy and demand costs are 

typically less expensive. 

On-peak Refers to a utility rate schedule that designates the time of day when energy and demand costs are 

typically more expensive. 

Building ENERGY STAR Qualified Homes 103
Optimum Value Engineering (OVE) The National Association of Home Builders (NAHB) developed 

Optimum Value Engineering (OVE) techniques to streamline framing and reduce the amount of wood wasted in 

construction. OVE increases the energy efficiency of the home, since greater spacing between framing members 

and the elimination of excess framing allows more insulation to be added. xix 

Packaged Unit A self-contained HVAC unit that provides heating and/or cooling to a building space. 

Part-load Condition when equipment operates at less than full capacity to meet the demand placed upon it. 

Part-load Performance Equipment efficiency at less than full capacity. 

Payback, simple A traditional measure of the economic viability of a project, generally defined as the length of time 

it takes for savings from an investment to equal the cost. Although frequently used because of its ease of calculation, 

payback frequently does not give an accurate representation of the total lifecycle value of an investment. 

Peak (cooling) Load Maximum cooling required to maintain an indoor design temperature under the most 

adverse summertime outdoor air conditions. 

Photocell A light-sensing device used to control light fixtures and dimmers in response to detected levels. 

Photovoltaic See Solar Photovoltaic. 

Pressure Drop The loss in pressure experienced by flowing water or air due to friction and obstructions. 

Programmable Thermostat A control device for HVAC systems that allows the user to program in various 

temperature and fan settings for various times of day. 

Quad An amount of energy equal to 1015 Btu. This unit of measure is used by the U.S. Department of Energy in 

discussing world and national energy budgets. xx

Radiant Heaters A technology that heats building occupants by radiating heat from an electric or combustion 

source. Because radiant heaters use radiation instead of convection to transfer heat, they are very efficient in areas 

where high ceilings or high infiltration make heating the air costly. 

Radiator Device that provides warmth to a space through radiant or convective heat provided by either steam or 

hot water. 

Radon Radon is a cancer-causing natural radioactive gas that cannot be seen, smelled, or tasted. Radon is the 

leading cause of lung cancer among non-smokers. 

Recommissioning Recommissioning ensures system functionality. It is an inclusive and systematic process intended 

not only to optimize how equipment and systems operate, but also to optimize how the systems function together. 

Reflective insulation Reflective insulation, also called a radiant barrier, is a metallic foil material (usually 

aluminum) designed to block radiant heat transfer across open spaces. Reflective insulation is most effective at 

reducing cooling bills in hot, sunny climates. 

Refrigerant A substance used to provide cooling, either as the working substance of a refrigerator or by the direct 

absorption of heat. Examples: CFCs, HCFCs, HFCs, air, ammonia, water, or carbon dioxide. 

Reheat A type of HVAC air distribution system in which air maintains comfort in a building by cooling the air to 

a low temperature (typically 55 degrees F) at the air handler and then reheats it near its point of use. This system 

provides good temperature and humidity control but wastes considerable energy. 

104 Building ENERGY STAR Qualified Homes 
RESNET The Residential Energy Services Network is a membership-based, charitable nonprofit organization 

that develops national standards for building energy efficiency rating systems, including HERS Index. xxi 

Retrofit: Upgrading a fixture, room, or building by installing new parts or equipment. 

Return on Investment (ROI) The ratio of money gained or lost on an investment relative to the amount of 

money invested. xxii

Rigid Foam Board Insulation Used to insulate almost any part of the home and provides thermal resistance and 

adds structural strength. The most common types of materials used in making foam board include polystyrene, 

polyisocyanurate or polyiso, and polyurethane. 

Rightsizing The process of correctly sizing equipment to the peak load. 

Rooftop unit Air-handling equipment such as packaged units located on the roof. 

R-Value A measure of thermal resistance or the ability of a material or group of materials to retard heat flow. 

Seasonal Energy-Efficiency Ratio (SEER) SEER is a measure of equipment the total cooling of a central air 

conditioner or heat pump (in Btu) during the normal cooling season as compared to the total electric energy input 

(in watt-hours) consumed during the same period. Typically used to measure the efficiency of a central air 

conditioner, it measures how efficiently a cooling system operates over an entire season. The higher the SEER, the 

more efficient the air conditioner. 

Setback Setting a thermostat to a lower temperature when the building is unoccupied to reduce heating energy 

consumption. This may also refer to setting the thermostat to higher temperatures (“setup”) during unoccupied periods 

in the cooling season and operating the fan in “auto” mode (rather than constant operation) during unoccupied periods. 

Setpoint Desired temperature, humidity, pressure in a space, duct, etc. 

Solar Photovoltaic (PV) A solid-state electrical device that converts light directly into direct current electricity of 

voltage-current characteristics that are a function of the characteristics of the light source and the materials in and 

design of the device. Solar photovoltaic devices are made of various semiconductor materials including silicon, 

cadmium sulfide, cadmium telluride, and gallium arsenide, and in single crystalline, multicrystalline, or amorphous 

forms. Photovoltaics pertain to the direct conversion of light into electricity. 

Space The distinct area to which conditioned air is delivered. 

Spot Ventilation Spot ventilation improves the effectiveness of other ventilation strategies by removing indoor air 

pollutants and/or moisture at their source. Spot ventilation includes the use of localized exhaust fans, such as 

those used above kitchen ranges and in bathrooms. 

Spray Foam Insulation Used as an insulating and air sealing product for residential wall and ceiling cavities. The 

insulation is sprayed into wall cavities and expands to fill all its nooks and crannies. Excess foam is scraped off the studs 

to form a uniform wall cavity. The two types of spray foam are open-cell (isocyanurate) and closed cell 

(polyurethane).xxiii 

Static Pressure The condition that exists when an equal amount of air is being supplied to and removed from a space. 

Steam Trap A valve that allows condensed water to flow out of a steam supply line without allowing any of the 

steam to escape. 

Strainer Screen Filtering device used in water side systems to protect equipment from dirt, rust, and other particles. 

Building ENERGY STAR Qualified Homes 105
Structurally Insulated Panel (SIP) Prefabricated insulated structural elements used in building walls, ceilings, 

floors, and roofs. They provide superior and uniform insulation compared to more traditional construction 

methods, offering energy savings of 12 percent–14 percent. Common types of SIPS use insulation made from 

expanded polystyrene or polyisocyanurate, a polyurethane derivative. 

Sulfur Dioxide (SO2) A heavy, colorless, pungent air pollutant formed primarily by the combustion of fossil fuels 

such as coal. It is a respiratory irritant and a precursor to the formation of acid rain. 

Sulfur Oxides (Sox) Refers to one or more of the following: lower sulfur oxides, sulfur monoxide, sulfur dioxide, 

and sulfur trioxide. They are pungent, colorless gases formed primarily by the combustion of fossil fuels. 

Supply-Air Diffuser A device used to evenly distribute supply air to a space. 

Systems-built homes Homes that are built in a factory and then carefully transported in sections to home sites where 

local builders put them together. Systems-built homes include modular homes, panelized homes, and log homes. xxiv 

Testing, Adjusting, and Balancing (TAB) The process of adjusting HVAC system components to supply air 

and water flows at design or revised specifications. 

Thermal Bypass Checklist A comprehensive visual inspection of building details to identify where thermal 

bypass, or the movement of heat around or through insulation, occurs due to missing air barriers or gaps between 

the air barriers and the insulation. For a home to be qualified as ENERGY STAR, a Thermal Bypass Checklist 

must be completed by a certified Home Energy Rater. 

Thermostat A device that responds to temperature changes and controls equipment by seeking a setpoint 

accordingly. Typically contained in heating, cooling, and refrigeration systems. 

Ton A unit of measure of cooling capacity equal to 12,000 Btu/hour. 

Transformer A device that reduces the incoming line voltage, usually to a standard level, so that it may be used to 

operate electrical equipment in a building. 

T-12 Lamp Industry standard nomenclature for a fluorescent lamp which is twelve 1/8 of an inch (1 1/2 inch) in 

diameter. Other standard lamp sizes include T-8 (1 inch), T-10 (1 1/4 inch), and T-5 (5/8 inch). 

U.S. Green Building Council (USGBC) A nonprofit organization committed to expanding sustainable building 

practices. USGBC is composed of more than 15,000 organizations from across the building industry that are working 

to advance structures that are environmentally responsible, profitable, and healthy places to live and work. xxv 

Volatile Organic Chemicals (VOC) Gaseous emissions from certain solids or liquids, some of which may have 

short- and long-term adverse health effects. Examples include: paints, paint strippers, cleaning supplies, pesticides, 

building materials, copiers, correction fluids, glues, and permanent markers. 

Voltage, volts International system unit of electric potential or the amount of electrical flow, also referred to as 

electromotive force. 

Waste Heat Recovery Recovering heat that is discharged as a byproduct of one process to provide heat required by 

a second process. For example, recovering heat going up the flue of a boiler to be used to preheat boiler feedwater. 

WaterSense An EPA-sponsored program that labels products that are water efficient and provide information on 

products and programs that save water without sacrificing performance. 

Water-Side Systems HVAC systems in which water is used to provide heating or cooling, including pumps, 

chillers, boilers, and other equipment. 

106 Building ENERGY STAR Qualified Homes 
Water Source Heat Pump Heat pumps that use wells or heat exchangers to transfer heat from water to the inside 

of a building. Although most of these units use ground water, a small number of installations use surface water, 

such as ponds or streams. Compared with conventional heat pumps, water source heat pumps can have 50-percent 

higher efficiency, but cost more to install. See also Ground Source Heat Pump. 

Watt (W) A unit of electric power. It defines the rate at which electric energy is consumed. 

Weather stripping The process of sealing air leaks around movable joints, such as doors or windows. 

Whole House Approach A whole-house systems approach considers the interaction between the occupants, the 

building site, climate, and other elements or components of the home: appliances and home electronics, insulation 

and air sealing, lighting, heating and cooling, water heating, windows, doors, and skylights. Builders and designers 

who use this approach recognize that the features of one component in the house can greatly affect other 

components, which ultimately affects the overall energy efficiency of the house. 

Wind Turbines Wind turbines convert the kinetic energy in the wind into mechanical power. This mechanical 

power can be used for specific tasks (such as grinding grain or pumping water) or a generator can convert this 

mechanical power into electricity. 

Zone A distinct area to which heating or air conditioning is supplied. 

Building ENERGY STAR Qualified Homes 107
 

i

 Building Performance Institute. 29 July 2008. www.bpi.org

ii International Code Council. Improving the Accessibility of Buildings for People with Disabilities. 29 July 2008. 

http://www.iccsafe.org/safety/accessibility/

iii Canada Mortgage and Housing Corporation. Combustion Gases in Your Home: Things You Should Know about Combustion 

Spillage. 28 July 2008. http://www.cmhc-schl.gc.ca/en/co/maho/yohoyohe/inaiqu/inaiqu_004.cfm

iv Ask the Builder. Waterproof Foundation & Damp Proofing. 29 July 2008. 

http://www.askthebuilder.com/B15_Waterproof_Foundation_and_Damp_Proofing.shtml

v Home Energy Saver. No-Regrets Remodeling. 29 July 2008. 

http://hes.lbl.gov/hes/makingithappen/no_regrets/depressurization.html

vi North American Insulation Manufactures Association. Glossary of Insulation Industry Terms. 29 July 2008 

http://www.naima.org/pages/resources/faq/glossary.html

vii Enterprise Green Communities. About Green Communities. 29 July 2008. http://www.greencommunitiesonline.org/about/

viii National Association of Home Builders. About NAHB Green. 29 July 2008. http://www.nahbgreen.org/About/default.aspx

ix Designbuild Network. Glossary. 30 July 2008. http://www.designbuild-network.com/glossary/gypsum-board.html

x HealthyBuilt Homes. About the Program. 30 July 2008. http://healthybuilthomes.org/aboutus.cfm

xi American Standard Heating & Air Conditioning. Glossary. 30 July 2008. 

http://www.americanstandardair.com/HomeOwner/Support/Glossary.aspx

xii Fisher Sheehan & Colton. Home Energy Affordability Gap. 30 July 2008. http://www.homeenergyaffordabilitygap.com/

xiii ToolBase. Insulating Concrete Forms. 30 July 2008. http://www.toolbase.org/Technology-Inventory/walls/InsulatingConcrete-Forms

xiv Intergovernmental Panel on Climate Change. About IPCC. 30 July 2008. http://www.ipcc.ch/about/index.htm

xv U.S. Green Building Counsel. LEED. 29 July 2008. http://www.usgbc.org/DisplayPage.aspx?CategoryID=19

xvi California Energy Commission. DER Equipment. 29 July 2008. 

http://www.energy.ca.gov/distgen/equipment/microturbines/microturbines.html

xvii National Association of Home Builders. About NAHB. 30 July 2008. 

http://www.nahb.org/page.aspx/landing/sectionID=5#

xviii National Fenestration Rating Council. About NFRC. 30 July 2008. http://www.nfrc.org/about.aspx

xix BuildIQ. Optimum Value Engineering. 29 July 2008. http://jobsite.buildiq.com/articles/greener-building/ove.aspx

xx Natural Gas Information Site. Glossary. 30 July 2008. http://www.natgas.info/html/glossary.html

xxi Residential Energy Services Network. 29 July 2008. http://www.natresnet.org/

xxii Investopedia. Return on Investment. 30 July 2008. http://www.investopedia.com/terms/r/returnoninvestment.asp

xxiii ToolBase. Insulation Alternatives: Sprayed Foam Insulation. 30 July 2008. http://www.toolbase.org/TechnologyInventory/walls/sprayed-foam-insulation

xxiv System-Built Home Guide. 30 July 2008. http://www.systems-built-home-guide.com/

xxv U.S. Green Building Counsel. About USGBC. 30 July 2008. http://www.usgbc.org/DisplayPage.aspx?CMSPageID=124

108 Building ENERGY STAR Qualified Homes 

HUD-2008-09-Building Energy Star Qualified Homes 

October 2008