The Latest in Green Development: Advising Your Client on the New Standard for Real Estate Projects

Green building rating systems are used to measure the environmental performance of buildings, focusing on energy efficiency. The most well-known system is LEED, which stands for Leadership in Energy and Environmental Design. It is a voluntary certification system created by the U.S. Green Building Council. To get LEED certified, a developer submits their project for review to the Green Building Certification Institute. LEED has become a standard for sustainability and is recognized by many governmental entities. It was first introduced in 1998 and the most recent version is LEED 3.0, launched in 2009. LEED certifications are not just for new buildings, they also apply to existing buildings and other types of projects. There are different categories for certification, and projects can earn different levels of certification based on how many points they score. Projects can earn points in categories like sustainable sites, water efficiency, energy and atmosphere, and more. People can also become accredited in LEED by passing an exam to show their knowledge of environmentally friendly building practices. LEED certification is a big deal in Florida, and it requires a lot of teamwork and planning to achieve. There are different green building rating systems, but LEED is the most popular. In Florida, many government buildings are required to meet green building standards. For example, Miami-Dade County and the City of Miami have specific requirements for new buildings. The Florida Green Building Coalition (FGBC) and Green Globes are organizations that set standards and certify buildings as environmentally-friendly. FGBC has different programs for homes, commercial buildings, and local governments in Florida. Green Globes uses a point system to assess the environmental impact of buildings in the United States and Canada. Energy Star is a program that promotes energy-efficient products and practices, and awards an Energy Star label to products and homes that meet its criteria. Green projects that meet environmental sustainability criteria can receive incentives from local and federal governments. These incentives include faster approval for permits, financial rewards, and tax benefits. For example, Miami-Dade County and the City of Miami offer faster approval for green buildings, and financial incentives for job creation in LEED or FGBC certified buildings. The federal government also offers tax credits for using solar and renewable energy equipment. These incentives aim to encourage more environmentally friendly development. Green building certification adds appeal to environmentally conscious tenants and consumers. It promises higher employee productivity and lower operating expenses. However, it’s difficult to measure these benefits. There isn’t much guidance in standard contract forms for drafting sustainable construction projects. In a legal case, a developer sued a contractor for not meeting LEED Silver Certification. The lesson is to be precise in contract language for achieving LEED objectives. Planning for a green project is crucial to meeting environmental goals. Every contract affecting the project needs to outline the steps each party will take to meet LEED certification requirements. This includes using local materials and recycling construction waste. The construction contract should specify the constructor’s obligations. Documentation of compliance efforts throughout the project is necessary for certification, as the certifying body evaluates this documentation after project completion. Good recordkeeping is important for achieving LEED certification. Attorneys can help their clients agree on what they want in the design contract, so they don’t have conflicts later. They can figure out things like how energy efficient the building should be and if the owner is willing to use new technology to save money. The contracts should be specific and not just say the project should be “green” or “sustainable.” The American Institute of Architects and the Association of General Contractors have new forms to help with green projects, which assign responsibilities to specific team members. To be effective, construction projects need to address sustainability at all stages, including the equipment and systems used. Maintenance staff also need proper training to ensure the building operates efficiently. Lenders should check that borrowers are meeting green requirements to protect their investment. Leases may include green provisions, but they vary depending on the landlord and tenant. It’s important to be specific about green standards in leases to ensure compliance. In 2009, the USGBC made a rule that buildings must continue to follow sustainable practices after getting LEED certification. Owners, tenants, and building managers need to agree on who is responsible for making sure the building stays green. Building leases should also include consequences if the green benefits aren’t realized. The building has to share energy and water data for at least five years, even if it changes ownership or tenants. The owner should make sure that all the leases for the building have the same green requirements. They also need to think about how insurance and repairs will work for a green building. Several model green commercial leases and guides have been developed to encourage landlords and tenants to work together to make their buildings more environmentally friendly. These leases and guides provide strategies for addressing the financial issues involved in making green upgrades to a building. They also outline the responsibilities of both landlords and tenants in making the building more eco-friendly and energy-efficient. These resources are designed to work with or without a specific rating system, and they provide incentives for tenants to save energy and follow green protocols. The USGBC published a guide in 2009 to help office tenants, landlords, and developers make their leases more environmentally friendly. The guide encourages energy-saving strategies, like renewing leases instead of moving, and using experts in sustainable practices. It also provides tools for comparing green aspects of different buildings and sample lease provisions. These lease templates and guides help with negotiating commercial leases. Green project development and property management are important, and they require new skills. This includes understanding environmental science and how it affects real estate projects. The USGBC has a rating system called LEED to measure how green a building is. There are also other organizations, like the Florida Green Building Coalition and the Green Building Initiative, that focus on green building. These practices are becoming more common and are changing the way real estate business is done. Peyton White Lumpkin is a lawyer in Miami who knows a lot about building environmentally friendly buildings. She has a law firm where she helps with real estate and business matters. She is also really good at helping buildings get certified as “green” by the U.S. Green Building Council. She went to the University of Virginia School of Law and is allowed to practice law in Florida and New York. Deborah Mastin is a lawyer who has worked for Miami-Dade County for over 30 years. She deals with legal issues related to building and facility construction. She is certified in construction law and also as a mediator and arbitrator by the Florida Supreme Court.

 

Source: https://www.floridabar.org/the-florida-bar-journal/the-latest-in-green-development-advising-your-client-on-the-new-standard-for-real-estate-projects/


Comments

Leave a Reply

Your email address will not be published. Required fields are marked *