Owners of apartment buildings and cooperatives may be eligible for loans with reduced interest rates for upgrades that reduce their energy or water consumption by at least 20%, under a new Fannie Mae refinancing program.
A property owner seeking to refinance a $10 million loan with the new Green Rewards for Multifamily program could receive an additional $250,000 in a loan to make energy- and water- saving improvements that would reduce annual $140,000 energy and water costs by 30%. The owner could qualify for an interest rate reduction of 10 basis points, which would yield a savings of more than $98,000 in total interest over 10 years.
The program is intended for property owners to make smart investments that reduce energy and water expenses, generate electricity or result in a third-party green building certification, including installing ENERGY STAR certified HVAC systems, electricity-generating solar panels, water-reducing irrigation systems, or applying for a Green Building Certification, such as ENERGY STAR or U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED) certification, according to Fannie Mae.
Earlier this year, Fannie Mae unveiled another program that offers financial incentives to multifamily developers who build green properties. The Multifamily Green Building Certification Pricing Break reduces interest rates on refinancing, acquisition, and supplemental loans by 10 basis points for developers whose buildings qualify for LEED, Energy Star or Enterprise Green Communities programs.
Related Stories
Multifamily Housing | Feb 18, 2015
Make It Right unveils six designs for affordable housing complex
BNIM is among the six firms involved in the project.
Office Buildings | Feb 18, 2015
Commercial real estate developers optimistic, but concerned about taxes, jobs outlook
The outlook for the commercial real estate industry remains strong despite growing concerns over sluggish job creation and higher taxes, according to a new survey of commercial real estate professionals by NAIOP.
Multifamily Housing | Feb 17, 2015
NYC multifamily sales increased by 39% in 2014
For New York City as a whole, $20 million-plus deals accounted for more than half of all transactions.
Multifamily Housing | Feb 17, 2015
California launches pilot program to finance multifamily retrofits for energy efficiency
The Obama Administration and the state of California are teaming with the Chicago-based MacArthur Foundation on a pilot program whose goal is to unlock Property-Assessed Clean Energy financing for multifamily housing.
Multifamily Housing | Feb 17, 2015
Young Millennials likely to return home
Ninety percent of individuals born between 1980 and 1984 and who hold a Bachelor’s degree left home before they were 27 years hold. However, half of this group later returned to their parents’ home, according to a study by the National Longitudinal Study of Youth.
High-rise Construction | Feb 17, 2015
Work begins on Bjarke Ingels' pixelated tower in Calgary
Construction on Calgary’s newest skyscraper, the 66-story Telus Sky Tower, recently broke ground.
Mixed-Use | Feb 13, 2015
First Look: Sacramento Planning Commission approves mixed-use tower by the new Kings arena
The project, named Downtown Plaza Tower, will have 16 stories and will include a public lobby, retail and office space, 250 hotel rooms, and residences at the top of the tower.
Codes and Standards | Feb 12, 2015
New Appraisal Institute form aids in analysis of green commercial building features
The Institute’s Commercial Green and Energy Efficient Addendum offers a communication tool that lenders can use as part of the scope of work.
Multifamily Housing | Feb 9, 2015
GSEs and their lenders were active on the multifamily front in 2014
Fannie Mae and Freddie Mac securitized more than $57 billion for 850,000-plus units.
Multifamily Housing | Feb 6, 2015
Fannie Mae to offer lower interest rates to LEED-certified multifamily properties
For certified properties, Fannie Mae is now granting a 10 basis point reduction in the interest rate of a multifamily refinance, acquisition, or supplemental mortgage loan.
