One aspect of sustainable development involves improving home construction to maximize energy conservation and protect the environment. But environmentally friendly innovations can add to construction costs and make these units too expensive for low-income residents to buy or rent. The challenge is to keep such homes both sustainable and affordable. In the late 1990s, the New Jersey Department of Community Affairs (DCA) and PSE&G, the state's largest utility company, launched a pilot program to build affordable housing that serves low- and moderate-income residents but also serves vital goals of sustainable housing. Projects selected for state funding incorporate several key sustainable strategies, such as reducing dependence on automobiles, recycling materials at the job site, installing low-flow water fixtures, and selecting interior finishes for health, durability, and environmental responsibility. Equally important, the housing units are designed to meet or exceed the U.S. Environmental Protection Agency's Energy Star level of energy efficiency. Through a combination of insulation, air sealing, ventilation, and properly sized heating plants, they are at least 30 percent more energy-efficient than standard new housing. The immediate result was hundreds of units built through a $15 million state investment. The program also achieved its long-term goal of market transformation in 2001 when K. Hovnanian Companies, New Jersey's largest home builder, announced its commitment to meet voluntary New Jersey Energy Star Program (an EPA-backed program) standards in every new home it builds in the state.
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