Partner Energy understands the nuances of HUD’s financing programs and can guide stakeholders through the process to achieve their project goals.
Several HUD financing programs require and/or reward energy efficiency and sustainability efforts. Partner Energy helps lenders and borrowers meet requirements in a cost-effective manner with our suite of services, including: Green Certifications, Energy and Water Audits, Energy Modeling, and Utility Data Collection Plans.
HUD Green MIP Reduction
To qualify for the Green Mortgage Insurance Premium Reduction (Green MIP Reduction), owners must verify that a property has achieved or will pursue and achieve an ENERGY STAR® score of 75 or higher AND verify that a property has achieved or will pursue and achieve a HUD recognized green building certification.
Additionally, all projects must benchmark their energy utilities in ENERGY STAR Portfolio Manager® annually, for the life of the loan. Partner Energy can assist with preliminary benchmarking, energy audits, green certification, utility data collection plans, and ongoing benchmarking.
- Owner must benchmark property
- ENERGY STAR® SEP (Statement of Energy Performance) of 75 required
- ENERGY STAR® SEP lower than 75 requires a CNA with ASHRAE Level II Energy Audit
- Property must already have a HUD accepted green certification or commit to earning one
- ENERGY STAR® SEDI (Statement of Design Intent) score of 75 or higher required
- ENERGY STAR® SEDI score is based on plans and specifications
- Property must commit to earning a HUD accepting green certification
Partner Energy has performed hundreds of benchmarking studies and energy audits for a variety of financing protocols through the country. Team members are sought for their expertise in how HUD financing programs work. We have provided green certification support on hundreds of HUD-financed green certification projects including LEED, ENERGY STAR®, Enterprise Green Communities, National Green Building Standards (NGBS), and GreenPoint Rated.
HUD MAP Underwriting
Projects securing financing through HUD’s Multifamily Accelerated Processing (MAP) can underwrite up to 75% of owner-paid projected energy and water utility savings when the CNA is accompanied by an ASHRAE Level II Energy Audit. Partner Energy will conduct the energy audit, work with the borrower’s planned renovation scope, and make cost-effective recommendations to the team for consideration.
Some HUD Rental Assistance Demonstration (RAD) applicants must conduct an ASHRAE Level II Energy Audit in conjunction with their CNA. The purpose of the energy audit is to identify cost-effective energy and water improvements that may reduce operating costs at the property as well as reduce residents’ utility costs. Partner Energy can conduct the energy audit to assist with RAD compliance.
HUD Green and Resilient Retrofit Program (GRRP)
HUD’s Green and Resilient Retrofit Program (GRRP) provides funding in the form of grants and loans to help owners make retrofits to their properties to improve their energy efficiency, climate hazard resilience, and tenant wellness. Owners or purchasers of a property in one of the HUD Multifamily Assistance programs are eligible to apply for funding. Retrofit measures include items such as carbon emission reduction, energy and water benchmarking, climate hazard resilience upgrades, electrification, and zero-emission electricity generation through renewable energy. Partner Energy can assist owners with feasibility studies of the retrofit services and conduct the necessary energy efficiency and climate hazard resilience assessments, along with Partner Engineering and Science’s capacity to generate Environmental and Building Science related due diligence specific to HUD.