Harpeth Square Apartments
Local developers are among first in the nation to pursue a financial incentive program that rewards energy efficiency and green building. Their commitment to a sustainable future earns a 330% return on their investment.
In 2016, the U.S. Department of Housing & Urban Development issued a long-awaited incentive program to encourage developers to incorporate energy efficiency and other sustainable measures in their projects. HUD now offers a 40 basis point reduction on their monthly Mortgage Insurance Premiums (MIP) to owners who commit to a high standard of efficiency and green building certification. Harpeth Associates hired Wilmot to lead their effort to qualify.
Wilmot led the design team and consultants to achieve an estimated Energy Star score (SEDI) in the 79th percentile of energy efficient buildings nationwide. The building upgrades required to achieve this threshold are estimated at $600,000 while the owner will save an estimated $6,000,000 over the next 40 years. On a present value basis (5%) this amounts to $2.6M in today’s dollars, a 330% return on investment. Wilmot further led the team to choose between multiple green building programs to achieve the MIP savings with the owner eventually choosing LEED Gold to convey their commitment to their expected clientele.