In June of this year Austin’s new Energy Audit and Disclosure Ordinance will take effect. This law requires that the seller of a house must have the house checked for energy efficiency, and disclose the status to potential buyers. It applies to homes in the city of Austin that are over ten years old; and that are served by Austin Energy. There are two ways to meet the requirements of the ordinance:
Audit Plan
Homes must be audited for energy efficiency prior to being sold. Under the law you do not have to make the repairs noted in the audit. You do have to provide a copy of the audit to the buyer. If the house needs major work, you could apply for an exception from the audit requirement.
Although repairs are not required, the de facto result is that home sellers will be pressured to make the upgrades. Most sellers would prefer not to offer a negative report on their home to prospective buyers. In any market, a loss of value is not something to be taken lightly. So, in many cases, it makes sense to complete the repairs before putting a home on the market.
The energy audit will check these four items:
Duct pressure test on the AC ducts to check for leaks.
R value of the insulation in the attic.
Weather-stripping on doors.
Shade screens or window film on the south, east and west side.
The Austin Energy Website lists their registered contractors who do energy audits. They are called Energy Raters. The cost of the audit will vary. I have heard quotes of $300 for 2,000 square feet, with cost/size increments. The audit report must be attached to the Seller’s Disclosure when the home is sold, and is good for ten years.
If you elect to have repairs done, the most efficient place to go is Austin Energy’s list of Home Performance contractors. These are city registered contractors who do energy related repairs. When the work is complete, an inspector from Austin Energy will inspect the work and clear any building permits that were obtained.
At this time, paperwork for rebates will be submitted to the city by the contractor. About 20% of the cost of some upgrades can be rebated. Texas Gas Service offers some additional rebates. And, you may be entitled to some federal tax credits. Save your receipts and check with your accountant on this.
Energy Star Plan
Homes that have participated in the Home Performance with Energy Star Certificate program within the last ten years are exempt from the audit requirement. This program is an alternate way to comply with the energy ordinance. Low interest loans are available for participants in this program.
To participate, call a Home Performance contractor for an energy analysis. Some of these companies offer a free analysis in conjunction with a bid for the work. An inspector from Austin Energy will review the analysis and the bids for proposed work.
The inspection will cover the following:
Central air conditioning and heating or heat pump
Air Duct sealing or replacement
R value of the insulation in the attic.
Shade screens or window film on the south, east and west side
To receive an Energy Star Certificate of Completion you must be in compliance with at least three of the above items; (or) you must receive a rebate of at least $500 from Austin Energy. When the work is complete, an inspector from Austin Energy will inspect the work and clear any permits. Rebates will be submitted by the contractor. A copy of your certificate of completion should be attached to your seller’s disclosure. It is good for ten years.
Summary
The Audit plan allows you to simply disclose the results of an audit. Or, you may choose to correct some, or all, of the repairs.
The Energy Star plan is an established program that predates the Energy Audit requirement. You may get a free energy analysis by a participating contractor who will also bid for the repairs. To get a certificate of completion you have to comply with at least three of the listed items.
At this time, the energy audit disclosure applies only to Austin Energy customers within the city of Austin. However, it is likely that energy inspections will become a part of the sale process throughout the region. The outcome will be the re-weatherizing of older structures to make them more efficient and less costly to live in. And, that is a good thing.
Website: Austin’s Energy Ordinance
Client’s Energy Upgrade: Kathleen’s Story
