Press Release

Texas Veterans Get New Incentives for "Green" Housing

Posted: 07-Nov-1996

(7 November 1996 -- Austin) As of today, nearly 2 million veterans in the State of Texas have a new reason to be energy efficient and environmentally friendly -- money. Today the Texas Veterans Land Board (VLB) announced that under a new "Greenbuilding Program" veterans can earn interest rate reductions of up to a full percentage point on new home and home improvement loans administered through the VLB. Karl R. Rábago, energy program manager for the Environmental Defense Fund (EDF), praised the announcement.

"As a veteran and a Texan, I am proud of the VLB and its chairman, Texas Land Commissioner Garry Mauro, for moving boldly with its Greenbuilding Program," said Rábago. Rábago approached Commissioner Mauro and VLB special projects director George Ellis with the idea of incorporating green building concepts into its loan programs shortly after he joined EDF in March of 1996, and worked with Ellis on the development of the program.

The new program uses a point system to qualify veterans for a lower interest rate for home construction and home improvement loans. A veteran can earn up to a one percentage point discount from regular rates by incorporating Greenbuilding features into their home. "That one point interest discount adds up to serious money," said Rábago. "Over the life of a thirty year loan, it can represent a savings of over ten thousand dollars." VLB's Ellis explained that interest savings aren't the only benefit. "When you add in substantial long-term energy and water savings, you can see that this is a program that will quickly pay for itself," said Ellis.

Veterans can earn points by choosing from a broad menu of options. For example, a xeriscape plan for the yard, which saves energy and water, is worth 7 points. A passive solar system counts 16 points. Double-pane windows and R-30 ceiling insulation can earn 8 more points. "The list of options that earn points is basically a menu that allows a homebuyer and builder to select the features that suit them and best fits their land, house, and lifestyle," said Commissioner Mauro. "It permits the best choices by the home owner for Texas' vast geography, climate, materials, and weather."

The new VLB program demonstrates that with creativity and leadership, environmental and economic issues are mutually supportive. "Garry Mauro and the Texas Veterans Land Board have set a new standard in repaying veterans for all they have given Texas and the nation. More lenders and states should follow this lead, and provide all homeowners the opportunity to live in a home that they can afford, and that they can afford to keep," said Rábago.