Fannie Mae has launched its Green Rewards multifamily financing program for owners of apartment buildings and cooperatives to encourage them to invest in energy- and water-saving improvements.
Green Rewards includes a portion of the owner's and the tenant's projected energy and water cost savings in the loan's underwriting, resulting in greater loan proceeds than a typical loan. In addition, Green Rewards reduces the all-in interest rate by 10 basis points.
The program covers investments in solar photovoltaic panels, Energy Star-certified HVAC systems, water-reducing irrigation systems or applications for a green building certification, such as the U.S. Green Building Council's LEED certification.
Both conventional and affordable multifamily properties are eligible for Green Rewards, as well as cooperatives, seniors, military and student housing properties. Properties may be located anywhere in the U.S. and must be able to project a 20% minimum consumption savings in energy and/or water.
To track energy performance over time, owners with a Green Rewards loan must report the property's Energy Star score annually. The additional loan proceeds must be reinvested in the property within two months of loan closing.
For more information on Fannie Mae's Multifamily Green Initiative, click here.