Home Fire Sprinklers
Let’s Talk Money
Oregon Fire Sprinkler Coalition
Costs of Home Sprinkler Systems
Nationally - $1.35 per sq. ft. of living area
– Lowest $0.74 in San Clemente CA
Locally (Medford) - $1.70 per sq. ft. of living area
Residential Fire Sprinkler Cost per Square Foot of Living Space
$5.00
One and Two
Family…
$0.00
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Source: Fire Protection Research Foundations, NFPA
Cost Breakdown Study
Northern CA:
– Given:
$400,000 home (Average price for a 3,000 sq. ft. home)
Cost to install sprinkler system=$3,000
– Cost Breakdown per Month
$3,000 amortized over 30 years at 7.75%
+$20.47
– Tax Savings (28% federal; 5% state income taxes):
From deduction of interest on the loan:
-
6.10
– Insurance Savings (6 quotes--$90-165 per year):
Using middle quote ($135 per year)
– Total Expenditure per Month:
- 11.33
$3.04
Conclusion1:
“Basically, for the price of a Happy Meal or a Starbuck’s coffee,
your family can be protected by a residential sprinkler system,”
Fred Benn, President of Advanced Automatic Sprinkler Company in Hayward, CA
Cost of Home Sprinkler Systems
1
1
2
1. http://www.360financialliteracy.org/Topics/Taxes/Tax-Deductions-and-Credits/Mortgage-Tax-Savings-Calculator
2. Rule of thumb: Homeowners Insurance per Year =(home value/1,000)*$3.50
Cost of Home Sprinkler Systems
Expected Increase in 30-year Mortgage
– $5-10 month after interest deduction and insurance savings
Comparable Costs
– Many people pay similar costs for such home amenities as:
Upgrading carpet
Upgrading cabinets
Upgrading countertops
Upgrading driveways
– Other comparable costs:
One large popcorn at the movie theaters per month
Two mochas per month
Examples of Home Amenities
Solutions to Reducing Cost (per sq. ft.)
Difference
– Flooring (2,000 sq. ft. example)
Carpet $1.31-4.32 x 2,000
Prefinished Hardwood $7.43-9.61 x 2,000
= $6,627-8,638
= $14,865-19,225
$12,598
=$5,545-8,787
=$17,154-27,035
$21,490
= $2,600-4,136
= $1,143-2,204
= $5,918-8,690
$7,547
=$2,061-2,813
=$4,102-5,117
$3,056
– Cabinets (30 unit example)
Purchase/install unit $184.83-292,89 x 30
Build custom/install unit $571.80-901.19 x 30
– Countertops (100 sq. ft. example)
Laminate $26.00-41.36 x 100
Tile $11.43-22.04 x 100
Granite $59.18-86.91x 100
– Driveways (500 sq. ft. example)
Concrete $4.12-5.63 x 400
Stamped $8.20-10.23 x 400
Source: http://www.homewyse.com/services/
Keeping Costs Down
Solutions to Reducing Cost
– Stick to the Standard
– Work with Water Purveyors
Reduce or eliminate SDC’s
Eliminate unneeded backflow devices
– Insurance Savings (Typical 5-15% reduction in homeowner’s insurance)
Oregon (2008)
– State Farm
10%
– Farmers
5%
– Allstate
10%
– American Family
10%
– Country Insurance
5%
– Consider an ordinance
Source: Fire Protection Resource Council
Getting Developers Onboard
Possible Tradeoffs for Developers
–
–
–
–
–
–
–
–
–
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Building proximity to fire department apparatus roads
On-street parking prohibitions
Minimum access road widths
Maximum access road grades (>10%)
Fire department turn-arounds
Aerial apparatus roads
Additional access roads (>30 homes)
Proximity to fire hydrants
Increased fire hydrant spacing
Rural firefighting water supply
Sprinkler Ordinances:
Is There an Impact on Housing?
Impact on Housing Supply and Costs
– A 2009 study found no evidence that the
“enactment of of sprinkler ordinances caused any
detrimental effects on housing supply and costs”.
– Statistics on the website of the National
Association of Home Builders (NAHB) show
single-family home building permits increased on
average by 28 percent in the United States between
April 2012 and April 2013, but California
experienced a 55 percent increase in permits in the
same period.
Sources: NFPA; NAHB
Homebuilder Experience
Homebuilder Murray Pound Dispels Myths about Costs
Source: www.youtube.com/watch?v=1fDJmRHC_Qo
Questions?