80-004 Code Vt. R. 80-140-004-X - SINGLE FAMILY MORTGAGE/ENERGY CONSERVATION

Section 1 Definitions

A. "Existing Housing" means residential property, except "New Construction," which is in existence and suitable for occupancy as of the date a mortgage on such property is first proposed to a mortgage lender for purchase by the Agency.

B. "New Construction" means residential property not yet in existence or never occupied as a residence as of the earlier of (i) the date on which a mortgage on such property is first proposed by a mortgage lender for purchase by the Agency; or (ii) the date on which the Agency reserves funds for such a purchase pursuant to a reservation of funds agreement with a Builder.

C. "Energy Rating" means any rating received from Energy Rated Homes of Vermont or a rating from another entity deemed comparable by VHFA staff.

D. "Manufactured Housing" means any housing, preconstructed in whole or in substantial part at a location different than the permanent home site, that is to be erected or moved to the permanent home site.

Section 2 Existing Housing Rules

A. Provided that the amount financed will not thereby exceed applicable program limits, Mortgage Loans otherwise eligible to be purchased by the Agency may include as part of the amount financed, an amount sufficient to bring Existing Housing into conformity with the following guidelines:

1. Attic or ceiling insulation should be R-19 or maximum practicable without altering the basic architectural design of the dwelling.

2. Floors of heated space over unheated crawl spaces, unheated basements (those not containing a primary heating plant) and/or unheated garage spaces should have an insulation value of R-19 where practicable. All floor joists headers/rim joists should be insulated to R-11 level.

3. Outside walls should be insulated to R-11 or maximum practicable without altering the basic architectural design of the dwelling.

4. Attic spaces should be properly ventilated using soffit venting and either gable end vents or continuous ridge vents where practicable.

5. All exterior doors should be insulated and weather stripped. A solid wood door is considered insulated. A storm door should be installed when the primary door is a hollow core type or contains in excess of 25% glass.

6. Windows should be double-glazed. Single-glazed windows are acceptable with the installation of storm windows.

7. Other energy conservation related improvements, the cost of which, in the reasonable judgment of the Mortgage Lender, would not exceed the amount by which such improvements would increase the market value of the property.

B. With respect to each mortgage loan on Existing Housing proposed for purchase by the Agency, and as a condition of such purchase, the buyer and the Agency shall be provided with the seller's statement, on a form to be provided by the Agency, of the extent to which the Existing Housing will conform, at time of sale, to the foregoing guidelines.

C. Any amount included in a Mortgage Loan for the purpose of bringing the Existing Housing into compliance with the foregoing standards shall be used solely for such purpose by the Buyer, and the Buyer's covenant to that effect, as indicated on a form to be provided by the Agency, shall be a condition of the Agency's commitment to purchase the Mortgage Loan.

Section 3 New Construction Rules

Commencing with transactions financed by proceeds of the Agency's Single Family Mortgage Purchase Bonds, 1980 Series A, and in addition to all other Agency requirements, New Construction securing mortgage loans purchased by the Agency shall be designed to meet, and shall meet, all of the energy conservation standards set forth below:

(i) Attic or ceiling insulation shall be R-38 (i.e. 12" of fiberglass or equivalent).

(ii) Outside walls shall be insulated to R-19 (i.e. 6" of fiberglass or equivalent).

(iii) Floors of heated space over unheated crawl spaces, unheated basements and/or unheated garage areas (those not containing a primary heating plant) shall be insulated to R-19. All floor joists headers/rim joists shall be insulated to R-11.

(iv) Vapor barriers must be properly installed to prevent moisture damage.

(v) Continuous soffit and ridge venting is the recommended method for ventilating attic areas. Properly sized gable end vents may be substituted for continuous ridge vents.

(vi) Windows shall be double or triple glazed. Metal windows shall have a thermal break. Single glazed windows are acceptable with the installation of a storm window. All windows must be weather stripped.

(vii) All exterior doors shall be insulated and weather stripped. A storm door is required when the primary door is a hollow core door or is over 25% glass.

(viii) All exterior joints and openings shall receive proper caulking or sealant to prevent air infiltration.

(ix) Maximum practical solar orientation shall be employed which includes minimum window area to the north and maximum window area to the south.

Section 4 Alternative Compliance Rule

A. In lieu of complying with S ECTIONS 2 and 3, the house may obtain an energy rating that is deemed comparable to the guidelines in SECTION 2 or the standards in SECTION 3.

Section 5 Manufactured Housing

A. Manufactured housing must either meet the guidelines, standards, obtain an energy rating which demonstrates acceptable energy efficiency in accordance with SECTION 4 of this rule, or have the most energy efficient package available for the structure.

Notes

80-004 Code Vt. R. 80-140-004-X

Effective Date: 12/22/89