Howard County Considers Property Tax Credit for LEED or Equivalent Homes

Howard County Council Member Calvin Ball has introduced a bill, co-sponsored by Council Member Courtney Watson, that would give property tax credit relief to homeowners of newly constructed R-2 and R-3 zoned homes in Howard County if those homes are rated LEED Silver, or found to be an equivalent to LEED Silver by the Director of Inspections, Licenses, and Permits.

The bill, CB-55-2011, marks the first time that Howard County has considered a residential property tax credit for green homes.  It could prove to be a major incentive to potential home buyers who are otherwise on the fence about purchasing a "green" certified home, for it provides that the homeowner may receive a 100% property tax credit for the first year, a 75% property tax credit for the second year of ownership, a 50% property tax credit for the third year of ownership, and a 25% property tax credit for the fourth year of ownership.  After four years, the credit will expire, and the homeowner will assume full responsibility for payment of the property tax. [Several news publications have incorrectly read the bill, and have confused the amount of the property tax credit along with the qualifications for attaining the credit.]

It's important to note that the property tax credit runs with the land - thus, if the owner of an R-2 or R-3 home that has received the credit sells his or her home after year 1, the new owner of the green home is eligible to receive the property tax credit for year 2 and beyond (assuming the new owner retains ownership and makes application to the County to receive the credit). An R-2 or R-3 home, as defined by the County, includes single family detached homes, townhomes, and low-rise apartment buildings (that do not have a commercial component).

I think that CB-55-2011, if enacted, could prove to be a win-win situation for both homeowners in Howard County and for the County itself.  The building industry has, as we all know, slowed down considerably during this economic downturn.  If CB-55-2011 can provide this great incentive directly to a homeowner, while simultaneously promoting green construction in the County, then everyone benefits.

There will be a Legislative Public Hearing on CB-55-2011 on Monday, November 21, 2011 at 7:30pm in the Banneker Room, George Howard Building, 3430 Court House Drive, Ellicott City, MD 21043.

Green Building and Preservation Law: A Compatible Duo

As the so-termed “green building movement” continues to gain momentum throughout Maryland and the nation, there are going to be instances where it intersects with the past in important ways. Specifically, I’m referring to the meeting point of sustainable building practices with historic resources and preservation law.

Many of you know that there are already programs and laws that both incentivize and even mandate sustainable building practices for new construction projects - (and an upcoming “roll call” post will give you some background on the counties and municipalities in Maryland that mandate green building practices for new construction – be sure to subscribe to this blog so you don’t miss this one!) - but there are also green building and development programs that incentivize the rehabilitation and restoration of existing buildings.

For example, Howard County awards 2-4 points under Credit B-2 of its Green Neighborhood Program for the preservation, restoration, and rehabilitation of an historic building located on the project site that is listed on or eligible for listing on the Howard County Historic Sites Inventory. I've recently had the pleasure of working on a project pursuing points under the Site Development prong of the Green Neighborhood Program, and it's been my experience that 2-4 points in the framework of this program can be significant and is therefore a good carrot to entice a developer to implement a preservation plan for the resource.  What may result is a modern development that incorporates techniques such as sustainable site design, increased energy efficiency, responsible water use and management, on-site renewable energy sources, increased pedestrian connectivity, and responsible materials selection married with an element of historic preservation. 

Why do preservation & rehabilitation goals go hand-in-hand with green building principles?

As Preservation Maryland asserts, the rehabilitation of historic structures is inherently green:

  • Rehabilitation of existing buildings utilizes less energy than new construction by utilizing embodied energy in existing materials, and
  • Rehabilitation projects generate less waste than new construction

These are important points to consider as we move forward into the future of green building. It seems to me like Howard County is right on track in incentivizing historic preservation as a component of its Green Neighborhood Program.