GREEN LOAN FINANCE FOR YOUR MULTIFAMILY PROPERTY
August 17, 2017
Save on your water bill with Fannie Mae and Freddie Mac
The Fannie Mae/Freddie Mac Multifamily Green Financing Program provides mortgage financing to apartment buildings and cooperatives to finance energy and water efficiency property improvements. They serve the multifamily market by integrating sustainability considerations into its underwriting, asset management and securitization processes.
With Green Financing, owners of multifamily properties can invest in smart, strategic, energy and water saving improvements. The lowering of utility costs increase the property’s bottom line, quality and affordability of housing for tenants, and the property’s environmental sustainability.
Ecosystems is your partner to help qualify for the Green Program. We have proven ourselves as the market leader in providing efficient, time effective, and impactful water and energy fixture retrofit and toilet replacement services.
Having completed roughly 20,000 bathroom retrofits achieving water/sewer utility savings between 30% and 65%, EcoSystems has saved over one billion gallons of fresh water, and returned over ten million dollars to property owners in the form of utility cost savings.
Now, let’s get into the steps you need to take to reap the benefits of these savings. They differ slightly between Freddie and Fannie:
1. Your property must be eligible for conventional or affordable housing as determined by Fannie. If a tenant needs government assistance for rent, then you’ll qualify for affordability. If not, as long as you own a “conventional” property, you can also qualify. Conventional means any multi-family apartment complex. No condos, no hotels.
If you have workforce housing built before 2000, you can qualify for Freddie’s program.
2. You must commit to installing capital improvements that target a (15% for Freddie, 20% for Fannie) reduction to the whole property’s annual energy or water use. This is where we come in. Ecosystems will install water efficient fixtures quickly and affordably that exceed the loan requirements.
3. These improvements must be installed within 12 months of receiving the Green Loan. It’s best to call us as soon as you receive it!
4. Minimum budget- only Freddie requires a minimum amount you must spend on the Green improvements, which is $350. For Fannie, there is no minimum.
Freddie and Fannie’s Green Programs is an excellent way to save money on your property’s water bill while also adding more value to it.