Dive Brief:
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Owners of apartment buildings and cooperatives can get larger loans with lower interest rates for property improvements if the upgrades will reduce their energy or water consumption by at least 20%, under a new Fannie Mae refinancing program.
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A multifamily property owner seeking to refinance a $10 million loan with the new Green Rewards program could receive an additional $250,000 in loan proceeds to make energy- and water- saving improvements that will reduce the building’s annual $140,000 energy and water costs by 30%.
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On the same loan, the owner could qualify for an interest rate reduced by 10 basis points, which would result in a savings of more than $98,000 in total interest over the 10-year loan term.
Dive Insight:
Fannie Mae in March announced 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 of Enterprise Green Communities programs.
