S.1178 - Getting Renewable and Energy Efficient Neighborhoods Appraisals Act of 2025; GREEN Appraisals Act of 2025 (119th Congress)
Summary
S.1178, the GREEN Appraisals Act of 2025, aims to improve the accuracy of energy appraisals for residential mortgage loans. It mandates that lenders disclose to borrowers the option to provide energy reports during the appraisal process. The bill also requires appraisers to consider these reports when evaluating property value, and it establishes an advisory committee to guide implementation.
Expected Effects
This bill will likely lead to increased awareness and consideration of energy efficiency and renewable energy features in home appraisals. This could result in more accurate property valuations that reflect the true cost savings and environmental benefits of energy-efficient homes. Ultimately, this may incentivize homeowners to invest in energy-efficient upgrades.
Potential Benefits
- Encourages investment in energy-efficient home improvements by potentially increasing property values.
- Provides homeowners with more information about the energy performance of their homes.
- Promotes transparency in the appraisal process by requiring consideration of energy reports.
- Supports the growth of the green building and renewable energy industries.
- May lead to lower energy bills for homeowners.
Potential Disadvantages
- Increased complexity in the appraisal process, potentially leading to higher appraisal costs.
- Potential for inconsistencies in energy report quality and appraiser interpretation.
- May disproportionately benefit homeowners in higher income brackets who can afford energy-efficient upgrades.
- Requires additional training for appraisers, which could create a temporary shortage of qualified appraisers.
- The effectiveness of the bill depends on the quality and consistency of energy reports.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to promote energy efficiency and reduce energy costs for homeowners. While the Constitution does not explicitly address energy policy, this bill falls within the implied powers of Congress to regulate commerce and promote the general welfare. There are no apparent conflicts with specific constitutional provisions or amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).