Smart Regs – What is it and why do you care?

I’m currently working with an investor looking at purchasing income property in the City of Boulder. We’ve been talking a lot about the SmartRegs energy requirements from the city and I thought more people could benefit from a basic rundown of the requirements.

SmartRegs requires all rental housing, about half of Boulder’s housing stock, to meet a basic energy efficiency standard by 2019.

The SmartRegs ordinances update the City of Boulder Housing Code, Rental Licensing Code, and provide new baseline energy efficiency requirements for existing rental housing in Boulder. Addressing energy efficiency in existing rental housing will allow the city to reduce greenhouse gas emissions and meet community climate objectives.

If you are getting a rental license for your rental home/condo there are several necessary steps already in place. SmartRegs will be in place starting in 2019.

There are two pathways to compliance:

Property owners can comply with the energy efficiency requirements by following either a performance or prescriptive path.

  1. Performance Path: The performance path requires a Home Energy Rating System (HERS) score of 120. The HERS index is used for the verification of energy performance. A HERS score must be performed by a rater accredited by the Residential Energy Services Network (RESNET).
  2. Prescriptive Path: The SmartRegs prescriptive path involves a checklist designed as an alternative to the SmartRegs performance path. The checklist relies on trained and certified Rental Energy Efficiency Inspectors (City of Boulder Class “G” license). To meet the requirements, each unit must achieve 100 points on the checklist. Click the link on the right entitled “SmartRegs G-Licensed Inspectors” for a list of current certified SmartRegs inspectors.

If you are looking to purchase an older home it will most likely take some work (and money) to get that home up to 100 points on the Prescriptive Path. An inspector works with you to give you ideas to bring your points up (insulation, new windows, lighting, energy efficient appliances, etc.).

It is definitely something to consider and factor in to a purchase decision for City of Boulder investors. You can find out even more information HERE .