flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Fannie Mae to offer lower interest rates to LEED-certified multifamily properties

Multifamily Housing

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. 


By USGBC | February 6, 2015
Fannie Mae to offer lower interest rates to LEED-certified multifamily properties

Colorado Court Affordable Housing — Santa Monica, Calif. Photo: Calder Oliver via Wikimedia Commons

The U.S. Green Building Council (USGBC) announced today that Fannie Mae will reward multifamily properties with a green building certification, such as LEED, with a lower interest rate. USGBC’s LEED green building rating system is one of several recognized certifications including Energy Star and Enterprise’s Green Communities Criteria.

For these 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. For example, if the market interest rate is 4% on the multifamily loan, the new rate is 3.9% with this pricing break. On a $10 million dollar loan amortizing over 30 years, the owner would save $95,000 in interest payments over a 10-year term.

All loans financed under this lower interest rate will be also securitized as a Green MBS, growing the total volume of Green Bonds in the market for socially responsible investors to include in their portfolios. Fannie Mae is the leading provider of multifamily financing in the U.S., with a portfolio valued at more than $200 billion.

“This is a great demonstration of leadership from Fannie Mae, and the partnership between the multifamily finance industry and the green building industry,” said Rick Fedrizzi, CEO and founding chair, USGBC. “This is real money and an incentive to not only build green but also for existing buildings to achieve certification. For the first time, Fannie Mae multifamily lenders will be able to reward building owners for their better buildings.”

"Fannie Mae is leading the way in financing by offering new lower interest rates for green building certified multifamily properties,” says Jeffery Hayward, executive vice president for multifamily, Fannie Mae. “We clearly see the value in the triple-bottom line of certified green buildings: financial benefits of lower operating costs for owners and tenants; social benefits of better quality housing for renters; and environmental benefits for everyone. Our lenders are ready with financing solutions to help multifamily owners make their properties more energy and water efficient for today and for the future."

LEED buildings have been proven to have lower monthly energy and water costs, leaving more disposable income for families and creating healthier and more comfortable indoor environments for occupants. In a study from the U.S. Department of Energy it was reported that LEED buildings are estimated to consume 25% less energy and 11% less water, have 19 percent lower maintenance costs, 27 percent higher occupant satisfaction and 34 percent lower greenhouse gas emissions.

For more information on Fannie Mae’s Multifamily Green Initiative, please see www.fanniemaegreeninitiative.com.

Related Stories

Giants 400 | Aug 22, 2022

Top 45 Engineering Architecture Firms for 2022

Jacobs, AECOM, WSP, and Burns & McDonnell top the rankings of the nation's largest engineering architecture (EA) firms for nonresidential buildings and multifamily buildings work, as reported in Building Design+Construction's 2022 Giants 400 Report.

Giants 400 | Aug 22, 2022

Top 80 Engineering Firms for 2022

Kimley-Horn, Tetra Tech, Langan, and NV5 head the rankings of the nation's largest engineering firms for nonresidential buildings and multifamily buildings work, as reported in Building Design+Construction's 2022 Giants 400 Report.

Giants 400 | Aug 21, 2022

Top 110 Architecture/Engineering Firms for 2022

Stantec, HDR, HOK, and Skidmore, Owings & Merrill top the rankings of the nation's largest architecture engineering (AE) firms for nonresidential and multifamily buildings work, as reported in Building Design+Construction's 2022 Giants 400 Report.

Giants 400 | Aug 20, 2022

Top 180 Architecture Firms for 2022

Gensler, Perkins and Will, HKS, and Perkins Eastman top the rankings of the nation's largest architecture firms for nonresidential and multifamily buildings work, as reported in Building Design+Construction's 2022 Giants 400 Report.

Giants 400 | Aug 19, 2022

2022 Giants 400 Report: Tracking the nation's largest architecture, engineering, and construction firms

Now 46 years running, Building Design+Construction's 2022 Giants 400 Report rankings the largest architecture, engineering, and construction firms in the U.S. This year a record 519 AEC firms participated in BD+C's Giants 400 report. The final report includes more than 130 rankings across 25 building sectors and specialty categories. 

Multifamily Housing | Aug 17, 2022

California strip mall goes multifamily residential

Tiny Tim Plaza started out as a gas station and a dozen or so stores. Now it’s a thriving mixed-use community, minus the gas station.

| Aug 17, 2022

New York to deploy 30,000 window-sized electric heat pumps in city-owned apartments

New York officials recently announced the state and the city will invest $70 million to roll out 30,000 window-sized electric heat pumps in city-owned apartments.

| Aug 16, 2022

Multifamily holds strong – for now

All leading indicators show that the multifamily sector is shrugging off rising interest rates, inflationary pressures and other economic challenges, and will continue to be a torrid market for design and construction firms for at least the rest of 2022.

| Aug 10, 2022

U.S. needs more than four million new apartments by 2035

Roughly 4.3 million new apartments will be necessary by 2035 to meet rising demand, according to research from the National Multifamily Housing Council (NMHC) and National Apartment Association.

Multifamily Housing | Aug 4, 2022

Faculty housing: A powerful recruitment tool for universities

Recruitment is a growing issue for employers located in areas with a diminishing inventory of affordable housing. 

boombox1
boombox2
native1

More In Category




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021