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Green Building, Energy Efficiency & Healthy Housing

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Enterprise Point of Contact:

Michael A. Spotts
Senior Policy Analyst
Last Updated: March 29, 2012

Issue Background: Green Building, Energy Efficiency & Health Housing

Green building practices refer to design and construction techniques meant to reduce waste, promote the efficient use of resources and lessen the ecological impact of the built environment. In addition to being environmentally sustainable, such practices can also improve quality of life, particularly for people with low- and moderate incomes. Well-sited green buildings can lower utility costs, decrease exposure to harmful pollutants, and reduce transportation costs by providing access to a greater range of community amenities. Reductions in energy and water consumption and stormwater runoff can also lessen the strain on local utility infrastructure, providing benefits to the larger community as well.

The Enterprise Green Communities initiative provides funds and expertise to enable developers to build and rehabilitate green affordable homes. Green Communities also assists state and local governments to ensure their housing and economic development policies are smart and sustainable. Green Communities homes are built according to the Green Communities Criteria, the first national framework for healthy, efficient, environmentally smart affordable homes.

Enterprise research has shown that from a strictly financial standpoint, the projected “lifetime” utility cost savings of meeting the Green Communities Criteria are sufficient to repay the average per-unit cost of complying with the criteria. Other studies have shown that residents of buildings that meet green building standards can experience reductions in asthma-related symptoms. Finally, automobile-related emissions and costs can be reduced by encouraging the preservation and development of housing in communities that are dense, walkable and provide access to public transportation.

Local, state and federal governments can promote green building in a number of ways. Local governments can adopt ordinances, building codes and standards that encourage or require environmentally and economically sustainable practices. State agencies have incorporated green building and sustainability criteria into allocation decisions for affordable housing resources. The federal government has provided green building grants, loans and tax incentives for both new construction and retrofits of existing buildings. In addition to these and other actions, governments at all levels can work to remove regulatory barriers to private sector action to promote green building.

Enterprise serves on the steering committee for the Green Affordable Housing Coalition. The Coalition is a national action network that fosters collaboration and advocates for the development and preservation of green affordable housing. The Coalition provides members with an opportunity to share best practices and the latest research, discuss potential policy solutions, coordinate outreach and advocacy efforts, and network with organizations with a shared mission. For more information, visit the Coalition website or download the Coalition fact sheet.

Current Policy State

State governments and federal agencies have made strides in incorporating green building and sustainability criteria into their programs. Several state housing finance agencies have incorporated green building and transit-oriented development (TOD) into their Qualified Allocation Plans for the Low-Income Housing Tax Credit (Housing Credit) program. The Enterprise Green Communities Criteria and other equivalent standards have been integrated into the application scoring process for several Department of Housing and Urban Development (HUD) and Department of Agriculture (USDA) programs.

The primary legislative initiatives to promote green building and sustainability in affordable housing have been the Green Resources for Energy Efficient Neighborhoods Act (GREEN Act; House of Representatives) and the Energy Efficiency in Affordable Housing Act (EEHA; Senate). Among other provisions, the bills would:
  • authorize HUD to apply standards and incentives for meeting energy efficiency and green development requirements;
  • require that all new HOPE VI construction comply with the mandatory aspects of the Green Communities Criteria; and
  • provide new financing and capacity building resources to help affordable housing developers build green.
Neither the GREEN Act nor EEHA have passed as stand-alone legislation. The GREEN Act passed the House during the 110th and 111th Congresses as part of comprehensive bills to address energy security, energy independence and climate change. In both instances, the Senate did not pass similar legislation.

The federal government also provides tax incentives for green building. The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Public Law 111-312) reauthorized the Energy Efficient New Homes (45L) tax credit through December 2011.

Finally, Congress has provided funding for discretionary programs that specifically promote green building, energy efficiency and sustainability. The Department of Energy’s (DOE) Weatherization Assistance Program provides funding for residential energy efficiency improvements for low-income households. HUD received funding in fiscal years (FY) 2010 and 2011 for the Sustainable Communities Initiative. HUD also received one-time funding in FY 2010 for the Energy Innovation Fund to accelerate private investment in residential energy efficiency retrofits.

Legislative and Regulatory Priorities

Enterprise is leading the Call to Action, a commitment to make progress toward the goal of ensuring that all housing with public subsidy and long term affordability requirements has the opportunity to benefit from green practices by 2020. The public, private and non-profit sectors need to take significant action to achieve this goal. At the federal level, Enterprise strongly supports the passage of the GREEN Act/EEHA, either as stand-alone legislation or as a part of comprehensive energy legislation. In addition, Congress should extend the 45L tax credit and make legislative changes that will facilitate the use of the credit in Housing Credit-financed properties (for more information on this proposal, visit the Enterprise Residential Energy Efficiency Tax Incentive webpage).

Enterprise also supports administrative action to:
  • incorporate green building and sustainable development criteria into HUD and USDA housing programs;
  • facilitate the use of DOE weatherization funds in multifamily buildings; and
  • allow owners of multifamily assisted housing to use utility allowances that reflect energy and water efficiency improvements.
Finally, Enterprise supports the efforts of HUD's Office of Sustainable Housing and Communities and the interagency Partnership for Sustainable Communities.

Publications and Resources

Current Green Building and Energy Efficiency Legislation (112th Congress)

Previous Green Building and Energy Efficiency Legislation (111th Congress)


Enterprise Resources

Enterprise Research, Analysis and Presentations

Enterprise Statements, Public Comment and Testimony


External Resources

External Research and Reports
© 2012 Enterprise Community Partners, Inc.
We are Enterprise. Our family includes Enterprise Community Partners, Inc, a national Section 501(c)(3) charitable organization that provides expertise for affordable housing and sustainable communities. Financing for affordable housing is offered through our tax-exempt subsidiary, Enterprise Community Loan Fund, Inc., and our for-profit subsidiary, Enterprise Community Investment, Inc. Housing development is offered through Enterprise Community Investment's subsidiary, Enterprise Homes, Inc. The content on this website reflects information about all of these entities.