Fannie Mae has created a new financing option for multifamily properties looking to undergo energy- and water-cost saving improvements.
In exchange for investing in environmentally friendly improvements, Fannie Mae’s new Green Rewards program will deliver property owners extra loan proceeds and a lower all-in interest rate. The program is now available nationwide to both conventional and affordable multifamily properties as well as for cooperatives, senior, military and student housing properties, according to a press release Thursday.
A portion of project energy- and water-cost savings is factored into the loan’s underwriting as part of Green Rewards. This allows for greater loan proceeds to result than a typical loan. Additionally, Green Rewards lowers the all-in interest rate by 10 basis points for further savings.