Fannie Mae and Freddie Mac introduce green financing programs
Planning energy-saving improvements for refinancing or acquisition? Or is your property already green-certified? Now, you can qualify for better pricing and higher loan proceeds. Fannie Mae and Freddie Mac are offering lower interest rates to multifamily owners who commit to improving the efficiency of their buildings.
Both Fannie and Freddie’s new programs will offer reduced interest rates to multifamily owners who commit to improving the efficiency of their portfolios. How can owners make smarter, greener property investments in order to comply and qualify? Each program provides incentives and resources for owners to receive a complimentary audit on their existing buildings for detailed efficiency opportunities or obtain discounted loan pricing on green certified properties.
Fannie Mae's new Multifamily Green Financing Initiative allows building owners to leverage pricing breaks and higher loan proceeds to facilitate strategic capital investments in the efficiency of their multifamily buildings. Through the program, owners can:
- Receive a reduced interest rate for committing to improve the efficiency of their buildings by 20%
- Understand property improvement opportunities through a complimentary ASHRAE Level 2 Energy Audit
- Obtain pricing breaks on loans for buildings with recognized green certifications, like LEED and ENERGY STAR®.
Freddie Mac’s new Multifamily Green AdvantageSM program also gives building owners the ability to qualify for better pricing and higher loan proceeds by investing in improved building efficiency. Some additional benefits?
- Obtain a complimentary Green AssessmentSM (energy audit) for a deeper understanding of your portfolio’s energy and water use
- Receive a reduced interest rate for committing to reduce energy or water consumption by 15%
- Gain discounted loan pricing for achieving a recognized green building certification
- Receive a rebate of $5,000 for delivering an EPA ENERGY STAR® Score
Great! What else do I need to know?
Once qualified for reduced interest rates under either program, borrowers must benchmark and report – annually – whole building energy and water use to measure and verify efficiency improvements. Done manually this is a time-consuming and error-prone process, but automated benchmarking providers, (like WegoWise) can assist owners with whole building data collection and provide assurance that the information is reported accurately in Portfolio Manager.
The WegoWise platform manages reporting for green financing by automating the collection and submission of utility data for performance verification without the hassle of manual data collection. To learn how WegoWise can help you attain pricing breaks and higher loan proceeds with both Fannie Mae and Freddie Mac, download our one-pager or get in touch with us.