Fannie Mae Green Financing Initiative for Multifamily
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.
Cincinnati is a PLUM SELECT 80 market due to its youthful population, favorable tax climate, and robust manufacturing industry. The office sector has returned to positive ground after a negative 2020 and 2021 due to the COVID-19 pandemic. The industrial sector was recently ranked as the #1 city to buy industrial property in the…Read More >>
Tampa is a PLUM SELECT 80 market due to its business-friendly environment, GDP growth, and strong performance across all commercial property types. The multifamily sector has seen a meteoric rise due to the influx of residents since the onset of the COVID pandemic. The industrial sector continues to benefit from expansions to Port Tampa…Read More >>
Raleigh, NC, is a PLUM SELECT 80 market due to its rapid population growth, proximity to research universities, and its ever-expanding technology sector. A high percentage of its population is college educated, and the median household income is 21% higher than the national average. In addition, there have been large investments recently from companies…Read More >>
Columbus, OH, is a PLUM SELECT 80 market due to its large population, rapid GDP growth, and proximity to a large portion of the United States population. In addition, several corporations have moved or expanded into the metro in recent years, such as Intel, Amazon, JP Morgan Chase, and Nationwide Insurance. It is also home to…Read More >>
Provo, UT is a PLUM SELECT 80 Market due to its growing technology sector, educational institutions, proximity to recreational areas, and an influx of employers, such as Adobe, eBay, and Facebook. The metro is also top in the nation for five-year job and wage growth. The Milken Institute named Provo-Orem the best-performing economy among…Read More >>