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.
This article is for informational purposes only. It is not intended to replace competent legal, tax or financial planning advice. Please contact your tax and/or legal advisors for professional advice that is consistent with your personal situation.