HomeMy WebLinkAboutA001 - Council Action Form dated July 14, 2026ITEM #:16
DATE:07-14-26
DEPT:CMO
SUBJECT:NET-ZERO READY HIGH PERFORMANCE HOME PILOT PROJECT
COUNCIL ACTION FORM
BACKGROUND:
O n November 26, 2024, Council established an enhanced tax abatement program to
incentivize efficient new home construction in alignment with the Climate Action Plan. The
enhanced tax abatement applies to new construction homes that are all-electric and include
solar installations, among other requirements.
The November 26, 2024 staff report on the Climate Action Plan Initial Implementation Step to
Incentivize Net-zero Ready New Construction also included an initial discussion of a high-
performance home pilot project. Since then, staff has engaged with homebuilders and other
stakeholders to gain input on the pilot project and develop a more defined scope.
The goal of the project is to construct a home that serves as a model of green building
and energy efficiency practices and can be replicated in the market. The homebuilder
and involved contractors would also become more familiar with sustainable building
practices. In addition, the project would be leveraged to educate and engage
community stakeholders, including residents, realtors, and students.
The partnership would involve a grant stipend issued to a partner homebuilder to
design and construct a home meeting certain criteria established by the City. The
stipend would help mitigate some of the financial risk to the developer to work on new
home options.
Staff is seeking authorization to allocate $20,000 from sustainability funding in the
Council Priorities Capital Fund for the pilot project. The current unallocated balance of
the funding is $845,150. If approved, Staff will develop an open application process and
select a partner that best meets the goals of the program.
The $20,000 incentive will reimburse home builder expenses after completion of the
pilot project requirements. This will include design and construction of a speculative home
with:
All-electric energy uses.
Net-zero-ready design, defined as a design where the potential rooftop solar installation
would generate more energy annually than the estimated annual home energy
consumption. This program would not require the installation of solar, but the home
would be solar-ready.
Accommodation of education and outreach events throughout the project.
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Located on a builder-owned lot.
ALTERNATIVES:
1. Approve $20,000 in FY 2026/27 from the Council Priorities Capital Fund sustainability
funding to be made available through the high-performance home pilot project.
2. Do not approve any funding for the high performance home pilot project.
3. Refer to staff for more information.
CITY MANAGER'S RECOMMENDED ACTION:
The high-performance home pilot project aligns with the Climate Action Plan Big Move
#3: net zero ready new construction. The pilot project will serve as an example for
sustainable building practices and will result in workforce development and community
education benefits. Therefore, it is the recommendation of the City Manager that the City
Council adopt Alternative No. 1, as described above.
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