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Essay / Green Affordable Housing - 1511
IntroductionGreen construction has emerged over the past decade as a positive movement aimed at producing high-performance, energy-efficient structures that improve the comfort and health of residents, while minimizing impacts environmental. There is, however, a common sense that green features are expensive and not suitable for affordable housing. Recent studies show that green buildings have a modest initial cost, but the long-term benefits far outweigh the additional investment costs. For this report, I will present a financial analysis – Net Present Value (NPV) and discuss the impacts of NPV analysis on affordable green housing. Definition of Affordable Housing Affordable housing means that housing is affordable to households with median or lower income, depending on the assessment. by county or state. According to the U.S. Department of Housing and Urban Development, renting affordable housing cannot exceed 30 percent of a low-income household's monthly income. Green Features in Affordable Housing Residents living in green housing can save money in the long term through green features and energy efficiency. Green and affordable housing provides an opportunity to reduce costs, such as utility and transportation costs, that can impact low-income people. After careful consideration, here are some common features used in affordable housing. Use of local sources for materials (savings on transportation costs) Use of photovoltaic solar panels (energy efficiency) Low-flow fixtures and dual-flush toilets (water efficiency) Indoor environmental quality Net present Analysis of the value (NPV) Traditional analysis wrongly gives a high value to the dollars of the future, the money of the future has the same value as the money of today; but in reality the money is in the middle of paper......Table 3 NPV of residents by characteristics and categoriesTable 4 NPV of owners by characteristics and categoryConclusionLife cycle cost and net present value analysis encourage perfectly for real estate developers to build green and affordable housing. They can truly see the results through the model. Although each model has weaknesses and limitations, the results of benefits and savings can help developers make the right decision and deliver a greener, more sustainable building for residents. Housing, William Bradshaw“Green and affordable” housing: a contradiction in terms? Kathy Moore Cowan http://www.stlouisfed.org/publications/br/articles/?id=509 Net Present Value Analysis: An Introduction for Financial Managers. R. Grégoire. Michael