Financing Options: Fannie Mae’s Multifamily Green Financing

Energy efficiency, through lower utility bills, is an investment with both immediate and long-term rewards. To encourage energy efficiency retrofits, some financial institutions started creating financing options specifically for multifamily property owners who are looking to invest in their properties.

This newsletter begins a series of articles featuring multifamily finance products that are ideal for property retrofits. This piece focuses on three Fannie Mae Multifamily Green Financing options: Green Rewards, Green Preservation Plus, and Green Building Certification Pricing Break. To inquire about any of these loan options, email Fannie Mae (Fannie) at green_initiative@fanniemae.com.

Green Rewards

Green Rewards provides lower pricing and additional loan proceeds to finance smarter, greener property improvements. Eligible improvements include new ENERGY STAR® appliances, energy efficient HVACs, low-flow toilets, solar-energy systems, and more. (1)

The value of the Green Reward’s energy audit—depending on the square footage of your property—generally ranges from $5,000 – $15,000.

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Green Preservation Plus

Green Preservation Plus provides additional loan proceeds to finance energy and water efficiency improvements for existing multifamily affordable properties.

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Green Building Certification Pricing Break

Fannie Mae’s Green Building Certification Pricing Break is a low-interest rate loan option that is for properties that already have a green building certification such as LEED or ENERGY STAR®. The Pricing Break reduces the all-in interest rate on loans for multifamily properties with eligible green building certifications by 10 basis points (0.10 percent).

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Sources Cited:

(1) https://www.fanniemae.com/content/fact_sheet/greenrewards.pdf