Condominiums are one of Canada?s favourite forms of residence, covering from 20 to 25 per cent of housing in all major cities. An astonishing 90 per cent of all new residential constructions in Toronto are condos. Usually, little creativity goes into the overall design of a new condo, but this stereotype has a benefit: anything unusual stands out and draws attention. Like every other real estate market, the condo market is highly competitive ? in part because it?s hard to create a unique, distinctive product, which is the main reason some developers experiment with environmentally friendly green buildings.
Many studies were conducted to evaluate the possibilities and efficiency of green buildings. The U.S. Green Building Council sponsored a 2008 study that showed that green buildings cost on average 2.5 per cent more on construction but are able to return more than ten times that amount over their lifetime by reducing energy and operating costs. Condos are the logical next step of the energy-efficient ?greening? process to combat climate change.
Building green condos means more than just building apartments with solar panels. There are many things to consider regarding the environment at all stages of the building process, such as the diversion of demolition waste from landfills, the use of local materials, and other resource conservation components. The key problem of adopting energy- and resource-efficient solutions lies in split incentives: the builder?s costs are increased while buyers have the advantage of lower operating costs throughout the lifetime of the unit. At first, developers were also worried about losing price-sensitive customers if they added the cost of green features to condos.
So, back in 2005, the Green Condo Loan Program was introduced by the TAF and Tridel. This program offered the financing of new green condos to pay for energy efficiency improvements that lowered energy consumption by 25 per cent in comparison with the Canadian average. Upgrades incorporated highly energy-efficient heating and cooling systems, heat recovery ventilation, and better insulation that would be paid for out of utility savings enjoyed by buyers. The TAF loan enabled purchase prices to be kept competitive, and the loans were rolled over to the condo corporation once owners took possession.
The program was not only successful enough to eventually change the market, creating the new norm for Toronto condos, but on February 1st, 2010 the City also adopted the Green Building Standard. Since then, every new development has to be 25 per cent more efficient than the Canadian average to receive a building permit. Today, new green condos are 35 per cent to 40 per cent more energy-efficient compared to the national building code ? which is a major win not only for developers and buyers but also for the environment.
Source: http://www.realestate-canada.com/2013/01/21/1677/
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