A new study that measured the economic value of using FORTIFIED Multifamily, a voluntary beyond-code construction and re-roofing method developed by the Insurance Institute for Business & Home Safety (IBHS), found the return can be as high as 72%.
The Alabama Center for Insurance Information and Research (ACIIR) at the University of Alabama's Culverhouse College of Business study predicts lower insurance costs due to reduced risk, coupled with increased revenue, more than pay for the cost of achieving a FORTIFIED designation. The size of this return on investment varied based on where the project was located, and which FORTIFIED designation was sought. It ranged from 8.1% with added hail protection in inland areas to 72% for a Gold designation near the coast.
A building can be constructed to a FORTIFIED standard for either Hurricane or High Wind, and property owners can choose from three designation levels, including Roof, Silver, or Gold. The standard requires upgrades be verified and documented by an independent third-party evaluator.
The FORTIFIED Multifamily program was developed based on decades of lab and field research by IBHS to identify methods to strengthen homes, commercial buildings, and multifamily properties against severe weather, including hurricanes and tornadoes. The standard is publicly available and is free.
Related Stories
Sustainability | Jan 10, 2024
New passive house partnership allows lower cost financing for developers
The new partnership between PACE Equity and Phius allows commercial passive house projects to be automatically eligible for CIRRUS Low Carbon financing.
MFPRO+ Special Reports | Jan 4, 2024
Top 10 trends in multifamily rental housing
Demographic and economic shifts, along with work and lifestyle changes, have made apartment living preferable for a wider range of buyers and renters. These top 10 trends in multifamily housing come from BD+C's 2023 Multifamily Annual Report.
Mixed-Use | Nov 29, 2023
Mixed-use community benefits from city amenities and ‘micro units’
Salt Lake City, Utah, is home to a new mixed-use residential community that benefits from transit-oriented zoning and cleverly designed multifamily units.
Sustainability | Nov 20, 2023
8 strategies for multifamily passive house design projects
Stantec's Brett Lambert, Principal of Architecture and Passive House Certified Consultant, uses the Northland Newton Development project to guide designers with eight tips for designing multifamily passive house projects.
Affordable Housing | Nov 16, 2023
Habitat receives approval for $400 million affordable housing redevelopment
Chicago-based Habitat, a leading U.S. multifamily developer and property manager, announced that its $400 million redevelopment of Marine Drive Apartments in Buffalo, N.Y., has received planned unit development (PUD) approval by the Buffalo Common Council.
Laboratories | Nov 8, 2023
Boston’s FORUM building to support cutting-edge life sciences research and development
Global real estate companies Lendlease and Ivanhoé Cambridge recently announced the topping-out of FORUM, a nine-story, 350,000-sf life science building in Boston. Located in Boston Landing, a 15-acre mixed-use community, the $545 million project will achieve operational net zero carbon upon completion in 2024.
Retail Centers | Nov 7, 2023
Omnichannel experiences, mixed-use development among top retail design trends for 2023-2024
Retailer survival continues to hinge on retail design trends like blending online and in-person shopping and mixing retail with other building types, such as offices and residential.
Condominiums | Nov 6, 2023
Douglas Elliman launches its first Metro D.C. condominium project
Douglas Elliman, one of the largest independent residential real estate brokerages in the United States, announced last week that the firm will be handling the sales and marketing for Ten501 at City Centre West.
Mass Timber | Oct 27, 2023
Five winners selected for $2 million Mass Timber Competition
Five winners were selected to share a $2 million prize in the 2023 Mass Timber Competition: Building to Net-Zero Carbon. The competition was co-sponsored by the Softwood Lumber Board and USDA Forest Service (USDA) with the intent “to demonstrate mass timber’s applications in architectural design and highlight its significant role in reducing the carbon footprint of the built environment.”
Affordable Housing | Oct 20, 2023
Cracking the code of affordable housing
Perkins Eastman's affordable housing projects show how designers can help to advance the conversation of affordable housing.