DeGreen4Green

www.DeGreen4Green.com Presented by Sustainable Energy Utility and the Home Builders Association of Delaware. February, 2013

WORKSHOP OUTLINE: Introduction – Tony DePrima, Sustainable Energy Utility (SEU) Program Fundamentals – Howard Fortunato, HBADE State Level 4 Areas – DNREC Rebate Amount Tables - Howard How Rebate Process Works – Kim Ferrell, HBADE Builder Paperwork Process – Shari Hendley, J.S. Hovnanian Verification Reimbursement and Fee Structure– Howard Fortunato Acceptable Green Certification Programs – Joe Gordon, GreenJoeGreen, LLC www.DEGreen4Green.com

PROGRAM FUNDAMENTALS - Howard Rebates to buyers of new homes: $274,500 in 2013 Available for Buyers of New Construction (For-Profit Builders) Rebates between $1,000 and $4,500 Encourages sustainable new construction practices Encourages Energy Efficiency Separate $30,500 Rebates Set-Aside to Non-Profit Builders Program Launches February 15, 2013 Rebates to Non-Contingent Buyers First Come First Served. Steering Committee reviews program monthly; to determine when to propose replenishment of kitty. www.DEGreen4Green.com

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5 REBATE AMOUNT TABLES: Each home choose from one of 5 tables www.DEGreen4Green.com

How Does the Program Work? - Kim • 1. Builder registers self and community online, sign rules and terms and submit to HBADE. (Non-profits submit 501c(3)). • 2. Obtain sale contract new home. • 3. Register online that buyer on that home including proposed rebate type and $ amount. (NO paperwork yet). • 4. Buyer satisfies all sale contingencies. • 5. Builder submit Rebate APPLICATION Packet to HBADE. (see next slide). (fax or email) • 6. Home is built and Verified as required within 6 months. • 7. Builder pays $350 Admin Fee/home to HBADE (explained later) • 8. After settlement, Builder submit Rebate SUBMISSION Packet (fax or email) to HBADE. (see later slide) • HBADE reviews, submits to SEU for funding. • Within 30 days following HBADE receipt, homebuyer receives rebate, Builder receives verification reimbursement up to $500/home. www.DEGreen4Green.com

A Complete Rebate APPLICATION Packet Includes: Fully Signed Contract dated after 2/15/13 between Builder and homebuyer. Proof of Satisfied Contingencies or Proof of Funds to Close. Homebuyer signed W-9 Builder and homebuyer signed Terms and Conditions for that house. Buyer’s voided check (for direct deposit of rebate) Rebates to Non-Contingent Buyers First Come First Served. www.DEGreen4Green.com

IMPORTANT Re: Complete Rebate APPLICATION Packet: NO rebate funds reserved for homebuyer until COMPLETE packet submitted and approved by HBADE. All Rebate Application packets documents must be submitted the same time. Incomplete Rebate Applications will NOT be accepted. www.DEGreen4Green.com

A Complete Rebate SUBMISSION Packet Includes: Completed HUD-1 evidencing ownership transfer to buyer. Evidence of “Green” Rebate Certification – NGBS, LEED, Energy Star, HERS. Verifier/Rater Invoice to Builder. Measurement and Verification Form completed by Verifier/Rater (under development) ALL submitted at same time to HBADE. (This is what is needed to fund rebate to buyer, and verification fees rebate to builder, up to $500 per home). www.DEGreen4Green.com

How Does the Program Work? Key to Success = Simplicity • Web-based - a resource for Builders. • Sample Walk thru the Online Process for Builders – Shari Hendley • Registration of builder and community • Initial registration of new buyer • Builders make rebate applications on behalf of buyers. • Goal to have funds issued and presented to buyers at settlement • 3rd party verified www.DEGreen4Green.com

RULES AND TERMS – BUILDER PAPERWORK PROCESS Highlights of the Rules and Terms to Pay Attention to. 2. Note: Not all properties will qualify for this rebate program, based on location. Homes built in level 4 areas, as established by the Strategies for State Policy and Spending, do not qualify. The only exceptions to this ruling are those in level 4 which are in one or more of the following:If builders are unsure if the property meets one of these exceptions, please email the names and addresses of the property to kim@hbade.org for determination. www.DEGreen4Green.com

RULES AND TERMS – BUILDER PAPERWORK PROCESS 4. Non Profit Builders are eligible to receive rebates through this program. No individual may apply for a rebate through this program more than once every 36 months. 5. Homes contracted for prior to Feb 15 2013 may not apply for the rebate. Funds are issued direct deposit to the home purchaser's/ Non profit builder account within 30 days after closing. The funds will only be issued upon receipt of acceptable documentation that the home has received the certification required for the corresponding rebate amount and that the property has settled (HUD 1). If a home goes to settlement prior to the builder applying and being approved for a specific rebate for that specific home, then that home does not qualify for the program. 6. The funds are taxable according to the IRS and 1099's may be issued in the name of the home buyer/Non profit builders reflecting their rebate. www.DEGreen4Green.com

RULES AND TERMS – BUILDER PAPERWORK PROCESS 7. Acceptance of a Rebate Application does not secure funds. Funds are reserved in the name of the home buyer /Non profit builder once satisfactory proof of funds to purchase or a non-contingent mortgage commitment and all required paperwork has been received from the builder and approved by the DE Green for Green program administrator. 8. Once reserved in the name of the home buyer/Non profit builder, the funds will only be issued upon receipt of acceptable documentation that the home has received the certification required for the corresponding rebate amount and that the property has settled (HUD 1). 9. Rebates will not be made available to the buyers at settlement www.DEGreen4Green.com

RULES AND TERMS – BUILDER PAPERWORK PROCESS 10. Once funds have been reserved for a buyer, the buyer has 6 months in which to go to closing and meet the program requirements to receive the rebate funds. Reservation of funds will expire at 6 months from the date of the commitment to reserve funds is issued from the DE Green for Green program administrator. In the event a buyer is unable to proceed to closing within 6 months of the initial funds reservation commitment by the program administrator, then a special fund reservation extension may be requested in writing to Kim@hbade.org at minimum of 14 days prior to the 6 month expiration date. 11. If a home proceeds to close without a final green certification, the builder must notify the program administrator prior to closing that there will be a delay in receiving a final certificate. www.DEGreen4Green.com

RULES AND TERMS – BUILDER PAPERWORK PROCESS (11 continued) In order to secure the rebate past settlement, the builder is required to have the buyer sign a rebate waiver form outlining the risks. In the event of a settlement without a green certificate, the builder has 30 days from closing to complete the certification and send a final certificate to the program administrator, at which time funds will be released to the buyer, provided all other documentation has been received by the program. If a final certificate is not issued within 30 days of the final closing or by the time a temporary certificate expires, then the rebate reservation will be considered expired and funds will not be issued to the buyers for failure to meet program requirements, regardless of any other timelines set in this program. 12. The rules and guidelines are subject to change without notice. 13. The program may be terminated at any time, regardless of the funds balance or reserves amount. www.DEGreen4Green.com

Home Verification Reimbursement to Builder - Howard Verification Expense Reimbursement to Builder: SEU will reimburse Builder up to $500 per home. Builder must submit completed Measurement and Verification Form Builder must submit Verifier / Rater Invoice (or Purchase Order) at time of Rebate Submission Package, along with HUD-1 and Green certification. Reimbursement paid by SEU (not HBADE) within 30 days of submission of complete Rebate Submission Packet. Submission of all documentation must be provided by builder, and will NOT be accepted from 3rd parties (ie Rater, Verifier) www.DEGreen4Green.com

HBADE Adminstration Fee HBADE is the Program Administrator. HBADE earns $350 Administration Fee from Builder per home. Builder will be invoiced upon receipt by HBADE of Completed Rebate Application Packet (ie when all sale contingencies are cleared). HBADE reserves the right to withhold review and submission for payment of the Rebate and Verification Reimbursement if any Administration Fees are unpaid. Builder will be able to pay by check, credit card and PayPal. www.DEGreen4Green.com

Acceptable Green Rebate Certification Programs – Joe Gordon • LEED for Homes, per Rebate Table • Energy Star 3.0 with HERS score 59 or lower, per Rebate Table • HERS Certification score 59 or lower, per Rebate Table. • National Green Building Standard, per Rebate Table • 3rd party verified www.DEGreen4Green.com

Evidence of Rebate Certification – Specimen LEED for Homes • 3rd party verified www.DEGreen4Green.com

Evidence of Rebate Certification – Specimen – Energy Star 3.0 with HERS < 60 www.DEGreen4Green.com

Evidence of Rebate Certification – Specimen – HERS < 59 • 3rd party verified www.DEGreen4Green.com

Evidence of Rebate Certification – Specimen - NGBS • 3rd party verified www.DEGreen4Green.com

Final Recap of Program • Program Launches February 15, 2013. • Builder must register themselves and each Community located in Level 1,2,3. • Builder registers each home as they enter contract with buyer. • Rebate not locked in until all sales contingencies satisfied. • Rebate for buyer / verification fees reimbursement paid 30 days after all documents submitted and approved. • 6. Steering Committee reviews program monthly, if we need to request replenishment. www.DEGreen4Green.com

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