Navigating Evanston’s Healthy Buildings Ordinance: A Guide for Property Managers and Building Owners
Evanston, Illinois, has recently set a precedent in the Midwest by passing the Healthy Buildings Ordinance (HBO), becoming the first city in Illinois—and only the second in the Midwest—to implement a Building Performance Standard (BPS). This landmark legislation reflects Evanston’s commitment to sustainability, tenant health, and climate leadership. It supports the city’s Climate Action and Resilience Plan (CARP), which aims to make Evanston a carbon-neutral community by 2050.
As cities across the country begin adopting climate-conscious regulations, Evanston’s HBO serves as a model for municipalities seeking to reduce emissions from one of the most significant contributors to climate change: large buildings. This guide is intended to help property managers and building owners understand the ordinance, why it matters, and how to navigate compliance efficiently and effectively.
What Is the Healthy Buildings Ordinance?
The Healthy Buildings Ordinance sets performance standards for buildings larger than 20,000 square feet within Evanston city limits. These standards are phased, meaning they grow more stringent over time to encourage incremental progress toward long-term climate and public health goals. The ordinance includes key target years—2031 for interim benchmarks and 2050 for final compliance—to provide a clear timeline for building owners.
The ordinance focuses on three main areas:
1. Energy Efficiency
All covered buildings must implement strategies to significantly reduce energy consumption. This can include:
- Retrofitting insulation and windows to minimize heat loss.
- Upgrading to high-efficiency lighting, appliances, and HVAC systems.
- Leveraging smart technologies for real-time energy monitoring and automated building controls.
Improved energy efficiency not only helps buildings meet the HBO requirements but also reduces utility bills and operating costs over time.
2. Elimination of On-Site Emissions
Buildings must eliminate on-site combustion of fossil fuels for heating, hot water, and other systems. This may involve:
- Replacing gas boilers and furnaces with electric heat pumps.
- Connecting to low- or zero-emissions district energy systems.
- Electrifying cooking appliances in residential and commercial kitchens.
This transition is vital for cutting greenhouse gas emissions and improving indoor and neighborhood air quality.
3. Renewable Electricity Procurement
Covered buildings must obtain 100% of their electricity from renewable sources, either through on-site solar generation or by purchasing renewable energy certificates (RECs) or green power from utilities.
This requirement encourages participation in broader clean energy markets and supports the decarbonization of the regional electric grid.
Alternative Compliance Pathway
Recognizing that some buildings face unique constraints—such as historical status, occupancy types, or budget limitations—the ordinance includes an Alternative Compliance Pathway Plan. This allows building owners to apply for additional time or modified compliance routes if they can demonstrate financial hardship, physical limitations, or a committed plan for eventual compliance. These flexible options aim to maintain equity and accessibility while still advancing climate goals.
Why Should Property Managers and Owners Care?
Understanding and planning for the HBO is critical for long-term property success. Here’s why compliance should be a top priority:
1. Avoid Penalties
Buildings that fail to meet the ordinance’s benchmarks could face financial penalties, which may escalate with ongoing non-compliance. Fines can impact operating budgets and reduce available capital for future improvements.
2. Enhance Tenant Satisfaction
Tenants are increasingly seeking healthier, greener environments. Improvements such as better ventilation, consistent indoor temperatures, and reduced exposure to pollutants can boost occupant comfort and productivity—particularly important in offices, schools, and multifamily housing.
Moreover, sustainable features like rooftop gardens, filtered air systems, or low-energy lighting contribute to tenant retention and positive public perception.
3. Increase Property Value
High-performance buildings tend to have:
- Lower operating costs
- Better occupancy rates
- Higher market value
As environmental, social, and governance (ESG) factors become more important to investors, having an energy-efficient and emissions-free building can be a strong selling point or leasing advantage.
4. Access Incentives
To ease the transition, Evanston provides technical support and financial incentives, including grants and low-interest loans. Particular emphasis is placed on supporting equity-prioritized buildings, such as affordable housing or community facilities, and workforce development programs that train local residents to complete building upgrades.
Taking advantage of these resources can significantly reduce out-of-pocket costs while supporting local jobs and equitable development.
Steps to Compliance
Successfully complying with the HBO doesn’t happen overnight. Property managers and owners should approach it as a multi-year project. Here’s a step-by-step roadmap:
1. Assess Current Performance
Begin by benchmarking your building’s current performance. Tools like ENERGY STAR Portfolio Manager can help quantify energy usage, emissions, and electricity sourcing. Engaging an energy auditor or sustainability consultant may provide deeper insights and highlight hidden inefficiencies.
2. Develop a Compliance Plan
Once baseline performance is established, create a phased upgrade plan that aligns with the ordinance’s timeline. Consider:
- Immediate low-cost measures (e.g., lighting changes)
- Medium-term retrofits (e.g., HVAC replacements)
- Long-term strategies (e.g., full electrification or solar installations)
Make sure to include budget estimates, project timelines, and stakeholder responsibilities.
3. Explore Funding Opportunities
Look into local, state, and federal programs, including:
- Evanston’s building performance grants
- Illinois’ Climate and Equitable Jobs Act (CEJA) funding
- Federal tax credits under the Inflation Reduction Act (IRA)
Partnering with energy service companies (ESCOs) or financing through energy performance contracts (EPCs) can also reduce upfront costs.
4. Implement Upgrades
Start with “no regrets” upgrades—those that are beneficial regardless of compliance deadlines, like LED lighting, weatherization, or energy management systems. Then move toward larger retrofits or renewable energy investments.
Engage qualified contractors who are familiar with green building practices and local compliance standards.
5. Monitor and Report Progress
Regular tracking is key. Buildings must report their performance to the city at set intervals. Establish a monitoring system and schedule periodic reviews to ensure your building remains on track and to identify any course corrections early.
Consider sharing sustainability progress with tenants through newsletters or lobby displays—it can build goodwill and community engagement.
Final Thoughts
Evanston’s Healthy Buildings Ordinance is more than a regulatory hurdle—it’s an opportunity to future-proof properties, support healthier communities, and play an active role in climate resilience. By acting early, property managers and owners can take advantage of incentives, minimize costs, and turn sustainability into a competitive advantage.
Buildings don’t just shelter people—they shape how we live, work, and thrive. Embracing the HBO now ensures your building contributes positively to Evanston’s future, while standing out in a market that increasingly values environmental leadership.
If you need help with complying with Evanston’s Healthy Building Ordinance, Workflow Control is here to help! We have helped buildings across the country get compliant with their local laws. Contact us today!
