Curious about which Green Financing Programs you qualify for?
Multifamily developers and owners are quickly discovering the significant cost savings with green financing. It’s not unusual to see increased cash flow through reduced energy and water usage from energy-producing additions such as solar panels. Green-built projects are also distinguishing structures in their neighborhoods, which often protect their long-term value.
HomeStreet Bank Commercial Real Estate offers reduced rates under the Fannie Mae Green Financing program to reward owners for thinking green. By making green enhancements, property owners improve a building’s operations and efficiencies and can qualify for an interest rate reduction.
Fannie Mae has two Green Financing Loans for multifamily owners–Green Building Certification and Green Rewards. These two programs encourage efficient and eco-friendly building, as well as incentivize owners of older buildings to make green improvements by offering reduced rates.
Green Building Certification
To qualify for Green Building Certification, the new construction property must possess a Multifamily Green Building Certifications, prior to rate lock, from one of the following organizations:
- Build It Green
- Enterprise Community Partners
- Green Building Initiative
- Home Innovation Research Labs
- International Living Future Institute
- Passive House Institute
- Passive House Institute US (PHIUS)
- U.S. Environmental Protection Agency
- U.S. Green Building Council
See Form 4250 for a full list of certifications.
Improvements to existing buildings
To qualify for Green Rewards, the property owner of an existing older building must commit to improvements that are projected to reduce the property’s annual energy and/or water usage by at least 30%, of which a minimum of 15% must be attributable to projected savings in energy consumption. Fannie Mae provides a free energy and water audit to identify effective ways to make this reduction.
Examples of ways to minimize operating costs and earn pricing incentives include:
- Upgrading to ENERGY STAR® appliances
- Upgrading boiler
- Replacing inefficient lighting
- Installing solar systems
- Installing water-saving irrigation systems
- Improving insulation
- Making other energy- & water-saving improvements
DUS® is a registered trademark of Fannie Mae. All loans subject to approval.