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Multifamily Finance Blog
Last updated on Feb 19, 2023
2 min read
by Matthew Sloley

A Close-Up on Different Types of LEED Evaluation

Since its widespread adoption, LEED Certification Review now exists for both residential and commercial project types.

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In this article:
  1. What is LEED in Multifamily Investing?
  2. The Different types of LEED Evaluation
  3. BD+C: Building Design and Construction
  4. ID+C: Interior Design and Construction
  5. O+M: Building Operations and Maintenance
  6. ND: Neighborhood Development
  7. Single Family Homes
  8. Cities and Communities
  9. LEED Recertification
  10. LEED Zero
  11. Related Questions
  12. Get Financing

[

](https://pixabay.com/illustrations/nature-earth-sustainability-leaf-3294632/)

Image by Anncapictures from Pixabay

What is LEED in Multifamily Investing?

The Leadership in Energy and Environmental Design rating system — more commonly known as LEED — is a global standard for healthy, green, and sustainable property construction and operation and is a symbol of sustainability achievement and green initiative leadership. Since its widespread adoption, LEED Certification Review now exists for the vast majority of both residential and commercial real estate project types. 

The Different types of LEED Evaluation

Now a globally recognized rating system, almost any project can undergo LEED evaluation. While LEED was originally created to improve how new projects were developed, global adopters all but demanded more nuanced variations of LEED evaluations to include different project types. As of today, LEED evaluation exists for: 

BD+C: Building Design and Construction

LEED evaluation for new construction or major renovations (core and shell). BD+C encompasses evaluations for schools, retail, hospitality, data centers, warehouse & distribution centers, and health care.

ID+C: Interior Design and Construction

This evaluation is geared toward complete commercial interior fit-out projects. ID+C encompasses applications for retail and hospitality.

O+M: Building Operations and Maintenance

Created with existing buildings undergoing improvement work in mind — minor work only, with little to no construction. This evaluation encompasses applications for schools, retail, warehouses, distribution centers, hospitality, and data centers.

ND: Neighborhood Development

LEED Evaluation is designed for land development projects or residential use, non-residential use, or mixed-use redevelopment projects. This evaluation can be performed at any stage of the development process — from planning to construction. 

Single Family Homes

Single-family, one- to three-story multifamily, and even mid-rise multifamily fall under this form of LEED Evaluation. Residential buildings greater than four stories generally use LEED BD+C rather than this form of evaluation. 

Cities and Communities

A much larger scope of LEED evaluation is geared toward entire cities and, or sub-sections of a city. LEED evaluation on this scale measures and manages city water consumption, energy use, waste production and disposal, transportation, and the overall human experience. 

LEED Recertification

LEED recertification applies to all occupied and in-use projects that have previously achieved certification under LEED (including BD+C and ID+C evaluations) regardless of their initial evaluation.

LEED Zero

Available for projects with net-zero goals in carbon and, or resources. LEED Zero applies to projects certified under the BD+C or O+M rating systems — or projects registered to pursue LEED O+M certification.

Related Questions

What is LEED certification?

LEED Certification is a globally recognized green building certification program created in 1993 by the Natural Resources Defense Council and the United States Green Building Council. The certification is awarded by the Green Building Certification Institute (GBCI) and is based on prerequisites and credits that address points of concern such as carbon, energy, water, waste, transportation, materials, and indoor environmental quality. A project earns points for each area, based on the evaluation, and is awarded a certification tier based on the amount of points it accumulates. The tiers are Certified (40 to 49 points), Silver (50 to 59 points), Gold (60 to 79 points), and Platinum (80+ points).

What are the benefits of LEED certification?

The benefits of LEED certification include improved energy and water efficiency, reduced greenhouse gas emissions, improved indoor air quality, and cost savings. LEED-certified buildings are also more attractive to tenants, as they are seen as more sustainable and environmentally friendly. According to the USGBC, LEED-certified buildings can save up to 30% in energy costs, 20% in water costs, and 11% in maintenance costs. Additionally, LEED-certified buildings can increase property values by up to 20%.

Sources:

  • USGBC
  • Energy Star

What are the different types of LEED evaluation?

The different types of LEED evaluation include:

  • LEED for Building Design and Construction - This type of LEED evaluation is geared toward new construction projects and major renovations.
  • LEED for Homes - This type of LEED evaluation is geared toward single-family homes and multi-family housing.
  • LEED for Interiors - This type of LEED evaluation is geared toward interior spaces.
  • LEED for Neighborhood Development - This type of LEED evaluation is geared toward entire neighborhoods.
  • LEED for Cities and Communities - This type of LEED evaluation is geared toward entire cities and, or sub-sections of a city.

What are the criteria for LEED certification?

The LEED certification process involves third-party verification of a project's compliance with LEED standards. The Green Building Certification Institute, or GBCI, awards the final certification. In order to earn a LEED certification, a project should adhere to prerequisites and credits that address points of concern such as carbon, energy, water, waste, transportation, materials, and indoor environmental quality. A project earns points for each area, based on the evaluation. Based on the amount of points a project accumulates, it falls into a LEED certification tier — though scores lower than 40 points render a project ineligible for certification. The amount of points required for each tier is as follows:

  • Certified (40 to 49 points)
  • Silver (50 to 59 points)
  • Gold (60 to 79 points)
  • Platinum (80+ points)

The LEED rating system focuses on the need for sustainable architecture. Through the ongoing evolution of the rating system, LEED certifications today identify healthy, efficient, and cost-saving green buildings. According to the USGBC, the ideal LEED-certified building should:

  • Limit contributions to climate change
  • Enhance health and quality of life for a community and individuals
  • Protect or restore water resources
  • Protect or enhance biodiversity
  • Protect and enhance ecosystem services
  • Rely on sustainable and regenerative material cycles

What are the costs associated with LEED certification?

LEED certification typically falls under the category of soft costs, such as architectural planning and building inspection costs. However, LEED requirements may lead to a building using more expensive construction materials, which can add about 2% to the hard costs of a development project. The Green Building Certification Institute (GBCI) awards the final certification, and a project earns points for each area based on the evaluation. Depending on the amount of points a project accumulates, it falls into a LEED certification tier, with scores lower than 40 points rendering a project ineligible for certification. The amount of points required for each tier is as follows:

  • Certified (40 to 49 points)
  • Silver (50 to 59 points)
  • Gold (60 to 79 points)
  • Platinum (80+ points)

LEED-certified buildings can save a significant amount of energy and can often quality for tax credits and other benefits. Plus, they can enhance the marketability of a multifamily development, particularly for upscale properties in major MSAs. Source and Source.

How long does it take to get LEED certification?

The amount of time it takes to get LEED certification depends on the size and complexity of the project. Generally, it takes anywhere from 6 to 12 months to complete the process. According to the USGBC, the process can be broken down into the following steps:

  • Pre-certification: 1-2 months
  • Submission: 1-2 months
  • Review: 1-2 months
  • Certification: 1-2 months

The total time for LEED certification can vary depending on the complexity of the project and the availability of the project team.

In this article:
  1. What is LEED in Multifamily Investing?
  2. The Different types of LEED Evaluation
  3. BD+C: Building Design and Construction
  4. ID+C: Interior Design and Construction
  5. O+M: Building Operations and Maintenance
  6. ND: Neighborhood Development
  7. Single Family Homes
  8. Cities and Communities
  9. LEED Recertification
  10. LEED Zero
  11. Related questions
  12. Get Financing

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