Fannie Mae’s Green Financing program offers preferred pricing to multifamily borrowers who obtain a green certification or implement energy saving improvements.
The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a leading provider of financing for mortgage lenders in the multifamily market. Fannie Mae offers three options for borrowers in its Green Financing program: Green Rewards, Green Building Certification Pricing Break , and Fannie Mae Healthy Housing Rewards . Our team can help you through every step for any option.
Fannie Mae Green Rewards
Fannie Mae Multifamily Green Rewards is a financing program for existing properties that provide pricing breaks and additional loan proceeds to finance smarter, greener property improvements. Green Rewards incentivizes borrowers investing in energy and water efficiency for existing properties with better pricing than conventional loans, additional loan proceeds, and the ability to underwrite to utility cost savings.
A lender must engage a pre-approved third party to conduct a High Performance Building (HPB) Report (similar to an ASHRAE Level II Energy Audit and Water Study) that identifies opportunities for energy and water savings. As a pre-approved provider, Partner Energy has completed thousands of High Performance Building (HPB) Reports for Green Rewards borrowers.
Other Green Rewards benefits include:
- Fannie Mae covers the full cost of the HPB Reoprt upon close of the Green Rewards loan
- Up to 75% of owner-paid and 25% of tenant-paid utility cost savings can be underwritten
Partner Energy can complete the HPB Report listing energy saving and water saving measures that will also lower operating costs. We can also help borrowers satisfy the energy and water benchmarking requirements for Green Rewards borrowers.
Fannie Mae Green Building Certification Pricing Break
Fannie Mae offers preferential pricing for multifamily properties with Fannie Mae-recognized green building certifications in hand prior to loan close. Fannie Mae recognizes thirty-five green building certifications issued by the following organizations:
- Build It Green
- Enterprise Green Communities
- Green Building Initiative
- Home Innovation Research Labs
- International Living Future Institute
- Passive House Institute (PHI)
- Passive House Institute US (PHIUS)
- U.S. Department of Energy
- U.S. Environmental Protection Agency
- U.S. Green Building Council
Partner Energy’s team of experienced green building certification professionals can help you decide which standard will best meet your needs and can help guide you through the process.
Fannie Mae Healthy Housing Rewards
Fannie Mae also offers preferred pricing to borrowers that incorporate healthy design elements into their properties and provide enhanced resident services that improve the health and stability of their residents (affordability restrictions do apply).
Healthy Design Pathway
- Up to 15 basis point interest rate reduction;
- Includes incorporation of playgrounds, fitness equipment, tobacco-free environments, green spaces; and,
- Certification fee cost reimbursed by Fannie Mae (up to $6,500).
Enhanced Resident Services Pathway
- Up to 30 basis point interest rate reduction;
- Includes health and wellness services, work and financial capability support; and,
- Cost of initial sponsor certification and initial cost of property-level certification is fully-reimbursed by Fannie Mae.