WASHINGTON, May 14, 2015 /PRNewswire/ -- Fannie Mae (OTC
Bulletin Board: FNMA) today announced Green Rewards, a new
multifamily financing option that helps owners of apartment
buildings and cooperatives invest in energy- and water-cost saving
improvements. These investments can improve and preserve the
quality of multifamily properties and lower utility costs, saving
money for both property owners and renters. Green Rewards is
available today nationwide.
"Green Rewards does just that, it rewards borrowers for
investing in smart property improvements by giving owners a lower
all-in interest rate and access to more loan dollars," said
Jeffery Hayward, Executive Vice
President and Head of Multifamily at Fannie Mae. "The resulting
greener property really has rewards for all of housing's
stakeholders: it means increased cash flows for the owners, lower
utility expenses and better quality housing for tenants, and a high
quality asset backing our MBS for investors."
Green Rewards provides property owners with both extra loan
proceeds and a lower all-in interest rate. For example, a
multifamily property seeking to refinance a $10 million loan could receive an additional
$250,000 in loan proceeds to make
energy- and water- saving improvements that will reduce its annual
$140,000 energy and water costs by 30
percent. Green Rewards includes a portion of the owner's and the
tenant's projected energy- and water-cost savings in the loan's
underwriting, resulting in greater loan proceeds than a typical
loan. In addition, Green Rewards reduces the all-in interest
rate by 10 basis points; on the same $10.25
million loan this could result in savings of more than
$98,000 in total interest over the
10-year loan term.
With Green Rewards, property owners can 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.
Both conventional and affordable multifamily properties are
eligible for Green Rewards, as well as cooperatives, seniors,
military and student housing properties. Properties may be located
anywhere in the United States, and
must be able to project a 20 percent minimum consumption savings in
energy and/or water. To track energy performance over time, owners
with a Green Rewards loan must report the property's ENERGY
STAR® score annually. The additional loan proceeds must
be reinvested in the property within 12 months of loan closing.
Green Rewards is the latest green financing innovation from
Fannie Mae Multifamily. Fannie Mae announced in February that
multifamily properties with an existing Green Building
Certification will receive a 10 basis point reduction in the
interest rate on new loans. In 2011, Fannie Mae introduced
Green Preservation Plus which supports the preservation of
affordable housing, providing up to an additional five percent in
loan proceeds to affordable housing owners seeking to make energy
and water efficiency upgrades at the time of acquiring or
refinancing the property. Fannie Mae also recently
reduced the all-in interest rate on its Green Preservation Plus
loans by 10 basis points. Fannie Mae is the market leader in
green solutions for the multifamily industry, providing over
$130 million in Green Financing as of
the end of 2014.
For more information on Fannie Mae's Multifamily Green
Initiative, please visit www.fanniemaegreeninitiative.com
Fannie Mae enables people to buy, refinance, or rent
homes.
Visit us at: http://www.fanniemae.com/progress
Follow us on Twitter:
http://twitter.com/FannieMae
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/green-financing-leader-fannie-mae-announces-green-rewards-for-multifamily-300083331.html
SOURCE Fannie Mae