This week, Fannie Mae launches a new multifamily program to improve financing for energy and water efficiency. Green Rewards, now available nationwide, is geared toward improving the quality of multifamily buildings while lowering utility costs, saving both building owners and tenants money.
The program provides access to bigger loans and lower all-in interest rates that support smart improvements to properties. Using the projected savings for both the building owner as well as renters, and a reduced all-in interest rate, building owners save money on big loans overtime. Upgrades that building owners have improved access to as a result of Green Rewards include adding renewable energy sources, updating appliances to be more efficient or ENERYSTAR certified, applying for green building certifications such as ENERGYSTAR or LEED, and installing water-reducing irrigation systems.
MultifamilyBiz provides this example:
While this is not the first green financing opportunity from Fannie Mae, it is the largest for multifamily buildings so far and has a direct link to opportunities for a decrease in rents, lowering utility costs, and improving multifamily building resilience.
Read more about the Green Rewards program from MultifamilyBiz.