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
Wood | Oct 19, 2018
Design revealed for mass-timber residential tower in Milwaukee
The developer is confident that the city will approve construction, which is scheduled to start next year.
Mixed-Use | Oct 15, 2018
35-story mixed-use tower will be tallest residential building in Long Beach
Studio One Eleven designed the tower.
Multifamily Housing | Oct 10, 2018
Affordable treasures
This year’s prestigious Gold Nugget Awards honor four projects that provide affordably priced housing for homeless families, seniors, and veterans.
Multifamily Housing | Oct 9, 2018
Breaking new ground: The New Home Company
The company, which is headquartered in Aliso Viejo, Calif. relies heavily on focus groups and market research to understand buyer preferences specific to each new community.
Multifamily Housing | Oct 9, 2018
Bjarke Ingels Group creates 66 homes for low-income citizens in Copenhagen
The building is approximately 73,000 sf.
Mixed-Use | Oct 4, 2018
Four-story hotel and adjacent affordable housing community opens in California’s Sonoma County
Axis/GFA Architecture and Design was the architect for the project.
Multifamily Housing | Sep 25, 2018
Fitness centers go for wellness
Equipment choice, room size, program offerings—a lot of thinking has to go into creating a fitness facility that pays off in resident satisfaction.
Multifamily Housing | Sep 24, 2018
Topsy-turvy: Creative use of air rights results in a model of urban luxury design
Using bold cantilevering and imaginative structural design, ODA and its project team created a 12-story building whose massing grows in width as it steps upward.
Multifamily Housing | Sep 21, 2018
A place of ‘voluntary and cheerful resort’
A project team soldiers on in the wake of a nightmarish turn of events.
Multifamily Housing | Sep 19, 2018
Multifamily market trends 2018: What the experts are saying
The growth of keyless entry solutions and demand for oversized units are among the trends and ideas shared at Marcus & Millichap’s 2018 Multifamily Forum in Chicago.