Blog

Fannie Mae Green Financing Initiative for Multifamily

Fannie Mae green lending program for multifamily from PLUM

Ready to reduce your multifamily property utility costs and attain lower interest rates? Then Fannie Mae’s Green Financing Initiative is just what you need.

Fannie Mae Multifamily Green Financing provides mortgage financing for multifamily properties, such as apartments and cooperatives. The property improvements and increased energy and water efficiencies enabled by this financing will help lower utility costs, boost the quality of life for property tenants and employees, and decrease the property’s environmental impact.

Products & Offerings for Multifamily Properties

Fannie Mae offers several products for multifamily properties; below are descriptions of several of these offerings, as well as some benefits they could provide your multifamily portfolio.

For multifamily owners investing in energy- and water-cost saving improvements for their existing properties, the Green Rewards product is ideal. The product underwrites up to half of the expected cost savings resulting from utility efficiencies on a loan, which can provide up to 5% additional loan proceeds. This feature is available to conventional and affordable multifamily properties located anywhere in the US, as long as the property is able to project a 20% minimum consumption savings in energy or water.

Green Preservation Plus

Launched in 2011, the Green Preservation Plus program is ideal for owners seeking to update equipment and reduce costs at their affordable property. This program provides additional loan proceeds to Multifamily Affordable Housing (MAH) properties by allowing up to an 85% Loan-to-Value (LTV), Debt-Service-Credit-Ratio (DSCR) up to 5 basis points lower than standard rates, and access to property’s equity amount equal to investments in efficiency. Energy- and water-saving improvements must equal at least 5% of the original mortgage loan amount.

Green Building Certification Pricing Break

The Green Building Certification Pricing Break provides the 10 basis-point pricing break to any acquisition or refinance loan on a conventional or affordable property that has an eligible building certification. This lower interest rate is only available if your property has already earned one of these certifications, such as ENERGY STAR or LEED.


From Our Partner, Goby:

This article was originally written by the Goby team. Goby is the leading energy management, sustainability reporting, and invoice automation platform for the commercial real estate industry. Plum is proud to partner with Goby; to learn more go to: www.gobyinc.com.

Related

Coronavirus-scientist

What do Vaccines and Commercial Real Estate Have In Common?

Advancements in data science and technology cast a positive light on the global economy and future of humanity in a post-COVID-19 world.

Read More >>
Resolute Capital Partners

Resolute Capital Partners Announces Investment in PLUM Lending Through Its Technology Fund

Resolute Capital Partners, announced March 31, 2020 the company has joined Elliott Management, a hedge fund manager, and Soft Bank, a high-tech funding firm, by investing alongside them in PLUM® Lending.

Read More >>
stack of papers

PLUM Lending and the Current US Economic Outlook

Earnings growth going into 2020 was soft prior to the COVID-19 shock. While capital markets continue to tumble, PLUM Lending’s balance sheet loan options are here for you.

Read More >>
PLUM Select Youtube Featured Image

PLUM Select: New Lending Options Coming Soon!

We’re introducing a simple, permanent, fixed-rate, non-recourse loan that can be prepaid at any time. Learn more about our PLUM SELECT loan program.

Read More >>
Is the Student Housing Sector Recession Proof?

Is the Student Housing Sector Recession Proof?

Larger investment in the student housing sector reached a new peak in 2018 and continued its strength, with only a brief slowdown when interest rates rose at the beginning of 2019. Learn more about trends in Student Housing as we look into 2020.

Read More >>

© 2019 PLUM Lending. All Rights Reserved. | Terms of ServicePrivacy | Plum, Inc. dba Plum and/or Plum Lending | CA DRE Corporation License # 01983700 | Responsible Broker: John R. Garibaldi |CA DRE License #: 01971801