A Green Physical Needs Assessment (PNA), also known as a Green Property Condition report (PCR) or Green Property Condition Assessment, offers the user advice on how to optimally run the asset that is being purchased.
A Green PNA essentially combines a standard PNA and a streamlined Energy Audit to provide in-depth information on the building condition and increasing operational efficiency. Green PNAs also may also look at water-saving measures, renewable energy use, and potential recycled or otherwise “green” materials for renovations or additions. These items can increase operational efficiency, but “Green Labeled” buildings can also offer increased marketability, potential rent increases, increases in absorption and decreases in vacancy. Green PNAs are highly customizable based on the client’s capital investment goals.
Incentives for Conducting Green PNAs
Agencies including the Small Business Administration (SBA), Fannie Mae and Housing and Urban Development (HUD) offer financial incentives for doing Green PCRs or implementing the recommended EEMs.
SBA 504 Loan Program: Qualify for More by Going Green
Borrowers can increase their SBA 504 loan amount by up to $5.5 million by implementing projects that meet the SBA 504 new public policy goals of reducing energy consumption by 10% or generating renewable energy.
FHA/HUD and Fannie Mae: Green Refinance Plus
HUD’s Federal Housing Administration (FHA) and Fannie Mae recently launched a new Green Refinance Plus program to allow owners of existing affordable rental housing properties to refinance into new mortgages that include funding for energy- and water-saving upgrades, along with other needed property renovations. Under this program, borrowers must obtain a Green Physical Needs Assessment to identify property improvements that will reduce energy use and operating costs.
Energy Disclosure Requirements
Many cities and states are mandating that building owners disclose their building’s energy efficiency or consumption. This energy disclosure information can also be identified during a Green PNA and/or an energy benchmarking study.