BUILDING ENERGY - Spring 2018 - 24

The key to a credible valuation hangs substantially
on the quantity and quality of data provided by the
owner documenting net annual savings.
The review appraiser checks math, the analysis
logic and determines if the conclusion is credible.
A review appraiser not familiar with HP building
features can be a potential hurdle during this
step. Reviewers and appraisers both work on
production schedules so accurate, clearly laid out
support from the owner for the annual net cost
savings as credible ("worthy of belief") is once
again essential.
THE FINAL APPRAISAL DELIVERY TO THE
PROPERTY OWNER
After the appraisal review, the final report
is released, and, in most jurisdictions, the
property owner has a right to a copy. The report
should discuss upgrades, include an analysis and
conclude the value impact for the HP features,
supported by market data. A survey of local real
estate professionals might have been done,
which is a valid way to support the conclusion.
The appraisal is typically final at this point
unless there is an obvious error or the report is
incomplete (or completely ignored the
HP features).
ISSUES WITH THE APPRAISAL
A report containing no meaningful discussion
or value analysis of the HP features is cause for
concern. If the report discusses the performance
features, but states that there are no comparable
sales to establish value, the report is most likely
applying the Sales Comparison Approach, which
is the wrong appraisal methodology.
Lack of discussion or emphasis on the Sales
Comparison Approach indicates a possible
competency violation of the Uniform Standards
of Professional Appraisal Practice (USPAP) 4 .
USPAP compliance is required for all appraisals
used in federally guaranteed loans. Be sure to
exercise tact and caution when discussing a
potential USPAP violation, a serious matter that
no banker wants flagged.

Performance Property, Commercial, Multifamily
and Institutional Properties, one of several
free advisories on green building valuations
distributed by The Appraisal Foundation.
ABOUT THE AUTHORS
James Finlay MRICS was a review appraiser
at Wells Fargo Bank for 15 years and became
active in the US Green Building Council in
2001. In 2006 he joined the newly formed
Wells Fargo Environmental Affairs group as
valuation specialist, becoming the bank's
principal appraisal reviewer for HP real estate
loan collateral. Since 2014 he freelances, helping
banks and investors recognize the value impact
of solar PV and distributed energy systems. He
recently joined Bruce Wiley at US Solar Value,
specializing in utility scale solar PV appraisal.
James is an advisor to the National Institute
of Building Science, Yale Clean Energy Finance
Forum and The Appraisal Foundation.
Bruce Wiley is an MAI member of the Appraisal
Institute and has been appraising commercial
real estate for over 40 years. He has specialized
in appraising Green, HP commercial buildings
and renewable energy assets including over 100
MEMBER
solar and wind farms.
ABOUT THE PEER RE VIE WER
Brian Butler is a MA licensed Construction
Supervisor for Boston Green Realty. An auto
mechanic for most of the 1990s, he also worked
part time in the building trades. In the late
'90s he moved full time into carpentry and in
2003 became a Construction Supervisor. In
2007 he founded Boston Green Building with a
focus on high performance buildings and Deep
Energy Retrofits. From 2014 to 2017 he joined
Good Energy Construction, Natick, MA. As of
August 2017, he joined Boston Green Realty to
oversee construction Mission Hills Flats, a 40unit mixed-use Passive House development at
Roxbury Crossing.

FINAL THOUGHTS
Delivering solid documentation of reliable
utility savings and being proactive at the initial
END NOTES
appraisal stages are the best ways to get a fair
1
US Green Building Council, Leadership in Energy and
and competent valuation. For additional insight
Environmental Design
into the appraisal process, two recent documents 2 International Well Building Institute;
https://www.wellcertified.com
to consider are The Valuation of Green
3
Passive House Alliance United States;
Commercial Real Estate, by Timothy Runde MAI
http://www.phius.org/home-page
4
and Stacey Thoyre, published by the Appraisal
Uniform Standards of Professional Appraisal Practice
Institute, and Valuation of Green and the High(USPAP), The Appraisal Foundation, Washington, DC.
24 * BUILDINGENERGY VOL. 37 NO. 1 | SPRING 2018


https://www.wellcertified.com http://www.phius.org/home-page

Table of Contents for the Digital Edition of BUILDING ENERGY - Spring 2018

From the Executive Director
From the Board Chair
Product Choices for High-Performing Building: Materials Matter
Designing Solar for High-Density Areas
High Performance Building Valuation Techniques
Starting with the End in Mind: Enhanced Turnover for Efficient Building Operations
Behavior Based Strategies and Organizational Change in Commercial & Public Buildings: The Human Component of Energy Efficiency
Commercial HVAC Retrofits That Work
Stretch Codes Emerge as a High Impact Strategy For Energy Savings
Scale it Up: Monitoring-Based Demand-Side Operations for NYC Agencies
The Retrofit Revolution
Index to Advertisers
BUILDING ENERGY - Spring 2018 - intro
BUILDING ENERGY - Spring 2018 - cover1
BUILDING ENERGY - Spring 2018 - cover2
BUILDING ENERGY - Spring 2018 - 3
BUILDING ENERGY - Spring 2018 - 4
BUILDING ENERGY - Spring 2018 - 5
BUILDING ENERGY - Spring 2018 - From the Executive Director
BUILDING ENERGY - Spring 2018 - 7
BUILDING ENERGY - Spring 2018 - 8
BUILDING ENERGY - Spring 2018 - 9
BUILDING ENERGY - Spring 2018 - From the Board Chair
BUILDING ENERGY - Spring 2018 - 11
BUILDING ENERGY - Spring 2018 - Product Choices for High-Performing Building: Materials Matter
BUILDING ENERGY - Spring 2018 - 13
BUILDING ENERGY - Spring 2018 - 14
BUILDING ENERGY - Spring 2018 - 15
BUILDING ENERGY - Spring 2018 - 16
BUILDING ENERGY - Spring 2018 - 17
BUILDING ENERGY - Spring 2018 - Designing Solar for High-Density Areas
BUILDING ENERGY - Spring 2018 - 19
BUILDING ENERGY - Spring 2018 - 20
BUILDING ENERGY - Spring 2018 - 21
BUILDING ENERGY - Spring 2018 - High Performance Building Valuation Techniques
BUILDING ENERGY - Spring 2018 - 23
BUILDING ENERGY - Spring 2018 - 24
BUILDING ENERGY - Spring 2018 - 25
BUILDING ENERGY - Spring 2018 - Starting with the End in Mind: Enhanced Turnover for Efficient Building Operations
BUILDING ENERGY - Spring 2018 - 27
BUILDING ENERGY - Spring 2018 - 28
BUILDING ENERGY - Spring 2018 - 29
BUILDING ENERGY - Spring 2018 - 30
BUILDING ENERGY - Spring 2018 - Behavior Based Strategies and Organizational Change in Commercial & Public Buildings: The Human Component of Energy Efficiency
BUILDING ENERGY - Spring 2018 - 32
BUILDING ENERGY - Spring 2018 - 33
BUILDING ENERGY - Spring 2018 - 34
BUILDING ENERGY - Spring 2018 - 35
BUILDING ENERGY - Spring 2018 - Commercial HVAC Retrofits That Work
BUILDING ENERGY - Spring 2018 - 37
BUILDING ENERGY - Spring 2018 - 38
BUILDING ENERGY - Spring 2018 - 39
BUILDING ENERGY - Spring 2018 - 40
BUILDING ENERGY - Spring 2018 - Stretch Codes Emerge as a High Impact Strategy For Energy Savings
BUILDING ENERGY - Spring 2018 - 42
BUILDING ENERGY - Spring 2018 - 43
BUILDING ENERGY - Spring 2018 - 44
BUILDING ENERGY - Spring 2018 - Scale it Up: Monitoring-Based Demand-Side Operations for NYC Agencies
BUILDING ENERGY - Spring 2018 - 46
BUILDING ENERGY - Spring 2018 - 47
BUILDING ENERGY - Spring 2018 - 48
BUILDING ENERGY - Spring 2018 - 49
BUILDING ENERGY - Spring 2018 - 50
BUILDING ENERGY - Spring 2018 - The Retrofit Revolution
BUILDING ENERGY - Spring 2018 - insert1
BUILDING ENERGY - Spring 2018 - insert2
BUILDING ENERGY - Spring 2018 - 52
BUILDING ENERGY - Spring 2018 - 53
BUILDING ENERGY - Spring 2018 - 54
BUILDING ENERGY - Spring 2018 - 55
BUILDING ENERGY - Spring 2018 - 56
BUILDING ENERGY - Spring 2018 - 57
BUILDING ENERGY - Spring 2018 - 58
BUILDING ENERGY - Spring 2018 - 59
BUILDING ENERGY - Spring 2018 - Index to Advertisers
BUILDING ENERGY - Spring 2018 - 61
BUILDING ENERGY - Spring 2018 - 62
BUILDING ENERGY - Spring 2018 - cover3
BUILDING ENERGY - Spring 2018 - cover4
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