Below is a brief summary of the latest we've heard, but we've also created a Multifamily Financing Incentives one-pager with more detail.
- HUD MIP Reduction: HUD is offering a significant Mortgage Insurance Premium (MIP) reduction of up to 45 bps for FHA loans for new or existing multifamily buildings that seek NGBS Green certification.
- Fannie Mae Green Initiative: These green financing products include Green Rewards (preferential pricing and up to 5% additional loan proceed); Green Certification Pricing Break (preferential pricing available for properties with NGBS Green certification awarded prior to loan lock); and Green Preservation Plus (preferential pricing and up to 5% additional available for affordable properties up to 10+ years old and ready for improvements after close). Through the end of July, Fannie Mae announced they've delivered $1.2 billion in Green Financing in 2016. This included loans on three NGBS Green Certified properties, and there are several more in the pipeline. The three NGBS Green properties were Link Apartments Brookstown by Grubb Properties (verifier Paul Mrzlak); Berkshire Main Street by Crescent Communities (verifier Rachel Della Valle); and Verde Vista Apartment Homes by Davis Property Group, LLC (verifier Steve Armstrong).
- Freddie Mac Multifamily Green Advantage: This program offers discounted loan pricing for multifamily properties, with at least one affordable rental unit, that either have or are seeking NGBS Green certification. Green Up enables you to have preferential pricing underwriting up to 50% of the projected energy and water savings; Green Up Plus enables you to increase the loan up to 75% of projected savings.