Source Advisors Main Logo
Energy Certifications

National Green Building Standards

NGBS offers a practical, credible, and developer-friendly way to align your residential projects with the market, the money, and the moment. Whether you’re building new multifamily units or renovating an aging portfolio, NGBS certification helps you reduce risk, unlock incentives, and stay ahead of shifting demand.

Energy Certifications

National Green Building Standards

NGBS offers a practical, credible, and developer-friendly way to align your residential projects with the market, the money, and the moment. Whether you’re building new multifamily units or renovating an aging portfolio, NGBS certification helps you reduce risk, unlock incentives, and stay ahead of shifting demand.

What Is NGBS?

The National Green Building Standard (NGBS) is a certification program designed specifically for residential buildings. It helps builders, developers, and investors construct properties that are energy-efficient, sustainable, and market-ready for the future.

Approved by the American National Standards Institute (ANSI) and backed by the National Association of Home Builders (NAHB), NGBS sets a national benchmark for green construction — without the complexity of other commercial-focused programs.

Understanding the National Green Building Standard and Its Impact on Residential Construction

Why does NGBS matter for real estate developers? Because NGBS can make your properties more valuable, financeable, and attractive in today’s market — and may soon be expected or required by lenders, municipalities, or tenants.

What Building Types Qualify?

If you’re building it to live in — or rent out — chances are it qualifies. NGBS applies to a wide range of residential and mixed-use construction projects:
  • Single-family homes
  • Townhomes and duplexes
  • Multifamily buildings (low-rise to high-rise)
  • Student housing and assisted living
  • Residential components of mixed-use developments
  • Renovations and rehab projects
  • Land development projects
    (e.g., master-planned communities)
Energy Tax Guides

Here’s how NGBS helps Real Estate Developers and Investors:

Access Better Financing

Lenders like Fannie Mae and Freddie Mac offer better rates and terms on green-certified properties. NGBS is one of the approved certifications for these programs, making your project more attractive to underwriters and easier to fund.

Boost Property Value and Rentability

NGBS certification helps you stand out in a crowded market. Tenants and buyers increasingly look for energy efficiency, lower utility costs, and healthier living environments, all of which NGBS delivers.

Meet Incentive and Compliance Requirements

Many cities and states offer property tax breaks, density bonuses, permit fast-tracking, or grant funding for certified green buildings. In some locations, NGBS or equivalent is already required for affordable housing or public-private partnerships.

Future-Proof Your Investment

As ESG regulations and investor expectations grow, green certification is moving from ‘nice-to-have’ to ‘must-have’. NGBS helps you build smart, sustainable properties today — and avoid costly retrofits tomorrow.

When Is NGBS Required?

While NGBS is technically voluntary, there are situations where it becomes functionally required or highly recommended:

  • To qualify for green financing (Fannie/Freddie)
  • To meet affordable housing or LIHTC program guidelines
  • To secure local development incentives or entitlements
  • To stay competitive with sustainability-conscious buyers, tenants, and investors

NGBS Certification Process

Connect with an Energy Consultant

Solutions
R&D Activities
Multi-State Business
Inventory Management
Real Estate Tax Incentives
CPA Services
CPA Tailored Services
Resources
About Us