TO: BOMA IDF Oversight Committee
FROM: Greater Boston Real Estate Board (BOMA Boston)
(Applicant)
RE: Massachusetts Asset Labeling/Benchmarking IDF Request
(Name of Project)
AMOUNT of REQUEST: Up to $50,000
DATE: 9/13/12
I. PURPOSE:
In completing this section, please pay special attention to the Purpose of the Industry Defense Fund and the Application Process sections of the IDF Rules. In the space provided, please indicate the purpose for which these IDF funds will be used. Please supplement your request by attaching reference materials if appropriate.
To retain experts to assist in the development of a whitepaper/academic research on the economic impacts of mandatory benchmarking. It is anticipated that the City of Boston will introduce a benchmarking ordinance in October, with the Commonwealth of Massachusetts also exploring such a program.
II. MEMBER IMPACT:
In completing this section, please pay special attention to the Purpose of the Industry Defense Fund and the Application Process sections of the IDF Rules.
A. Please indicate the number of BOMA members that will be impacted by the proposed action. For example, “All BOMA members in the City of Los Angles or LA County, or all BOMA members in the State of Texas”.
All BOMA members in Massachusetts.
B. Please also indicate any regional or nationwide impact to BOMA members.
Massachusetts is currently participating in a federally funded, Department of Energy pilot program . The two part program consists of traditional benchmarking as well as “asset labeling” ie assigning a market value to a building based on design elements such as windows, HVAC system, insulation
III. BOMA MEMBERS’ INTERESTS IMPACTED:
In the space provided, please indicate which specific member interests will be impacted through this project. Examples might include private property rights, need to maximize return on investment, secure fair tax treatment, etc. Please reference all applicable BOMA policy statements, and list all interests that would be impacted using additional sheets if needed and attach supplemental materials if appropriate.
1. Stigmatized property
2. Diminution in value
3. Fees and penalties
IV. PRECEDENT VALUE:
Has this issue been litigated, legislated, or the subject of regulation in another local or state jurisdiction, or at the federal level?
X No
An independent literature review of energy efficiency labeling for real estate found no reliable studies of a mandatory energy labeling program for commercial office buildings in the United States. There were some studies of voluntary labeling for high performing buildings (e.g., Energy star or LEED certifications). However, only the owners of high performing buildings are likely to volunteer for such certification as the others would not willingly risk producing information that could depress the property’s sale price. As a result, the impact of a mandatory system is still largely unknown.
Several studies conducted in the Netherlands and Australia shed some light on the impact of mandatory energy labeling systems for some properties. However, the results suggest that the market is over- or under-reacting to these energy labels for unexplored reasons.
V. MATCHING FUNDS:
In completing this section, please refer to the Application Process and Disbursement of Funds sections of the IDF Rules. The leveraging of additional funds to defend the industry’s interests is a key goal of the IDF. Please indicate the amounts and specific source(s) of funds you are dedicating to this issue, and/or the nature of staff and other in-kind resources.
The total cost of the study is estimated at $100,000. BOMA IDF would be 50% of the effort.
Greater Boston Real Estate Board, BOMA Boston $50,000
Amount of Matching Funds
Time permitting, additional sources of funding may be leveraged through GBREB’s three other national affiliates the National Association of REALTORS®, National Apartment Association and National Multi-Housing Council
Source of Matching Funds (Please use additional sheets if necessary)
VI. ACCOUNTABILITY:
A. Please provide the following information on the individual who will serve as lead on this project and will verify all relevant payment requests.
Name Patricia Baumer, Director of Government Affairs
Gregory Vasil, GBREB CEO
Address: One Center Plaza, Mezzanine Suite
Boston, MA 02108
Phone: 617-399-7858 FAX: 617-338-2600
e-mail:
B. How will project costs be tracked, and how will the required updates, financial statements, and related documentation outlined in the Disbursement of Funds process (Section VII of the IDF Rules) be provided to the IDF Oversight Committee?
All expenditures will be made via invoice and reviewed by GBREB’s Government Affairs Department as well as GBREB’s CEO and finance staff. Volunteer member’s Rob Brierley Brookfield Properties and Richard Beal, AW Perry currently serve as member of GBREB’s executive committee.
VII. DURATION OF FUNDING:
IDF funds are available for 12 months following the authorization of disbursements. Please indicate the time table for resolution of this issue, including when disbursement of funds will be expected.
Within the next few weeks.
VIII. OUTLOOK:
A. Please indicate the likelihood of success of the planned action and your reasons for making such an assessment.
POOR_____ FAIR__ GOOD X EXCELLENT_____
B. Please indicate the likelihood of success of planned action without IDF funding and your reasons for making such an assessment.
POOR X FAIR GOOD _____ EXCELLENT_____
It is unbudgeted expense. The opposition is well funded and organized.
IX. SELF HELP:
A. Please list actions already undertaken toward achievement of the stated project goal:
The proposal is based on an independent literature review of existing research. GBREB has also retained legal counsel.
B. Do you have a Government Relations Committee or similar entity to assist and/or provide oversight in pursuing this issue?
Yes
X. WORK PRODUCT:
A. Will this application result in a work product that may be used by other BOMA members, local associations, or state coalitions?
YES x NO ______
Please list expected products: White paper and possible independent research.