Minneapolis Energy Audit Requirements
In February of this year, the Minneapolis City Council approved three measures that allows homebuyers and renters to obtain energy-related information about a home or apartment in the city of Minneapolis before they sign a rental agreement or offer to purchase.
Timeline: Energy Audit
Effective June 1, 2019: A measure extending the existing commercial ordinance to encompass residential buildings 50,000 square feet or larger. This act will also compel an energy evaluation of properties that have the potential to obtain savings through further energy conservation. This measure will be phased in based on building size. June 1st was the first compliance date for buildings 100,000 square feet or larger.
Effective 2020: Time of Sale Energy Disclosure - requires energy-efficient attributes to be included in the Truth in Sale of Housing (TISH) report when selling a home. It will include information on the home's heating system, insulation and windows.
Effective in 2021: Time of Rent Energy Disclosure - requires residential building owners to disclose the average energy cost per square foot at the time of rent.
The Realtor's Perspective
As reported in Energy News, The Minneapolis Area Association of Realtors doesn't believe the plan will be effective in reaching the 2025 goal of improving the residential energy efficiency of 75% of Minneapolis homes. Only a small portion of the homes in Minneapolis will be affected by the ordinance.
What's the Deal for Rental Property Owners?
Multifamily Building Efficiency Program is a no-cost, program funded by utilities to identify energy-saving opportunities in multifamily buildings with five or more units. In addition, the program allows for the direct installation of a number of energy-saving fixes that will result in immediate energy cost savings. Financial incentives that cover up to 80% of the costs for energy modernization in qualifying low-income housing.
The 4d Affordable Housing Incentive Program assists owners of apartment building in obtaining property tax reductions if the owner keeps 20 percent or more of their rental housing affordable. The program also helps owners make existing buildings greener through cost sharing for energy efficiency improvements and solar installations.
Green Cost Share energy efficiency program is a grant funding match of 20-30 percent of the cost for upgrades to energy efficiency in residential buildings with four or more units and commercial buildings that increase energy efficiency. This is a grant so it doesn't need to be paid back and can offset up to $50,000 for energy efficiency upgrades..