flexiblefullpage -
billboard - default
interstitial1 - interstitial
Currently Reading

Fannie Mae to offer lower interest rates to LEED-certified multifamily properties

billboard - default
interstitial1 - interstitial
Multifamily Housing

Fannie Mae to offer lower interest rates to LEED-certified multifamily properties

For certified properties, Fannie Mae is now granting a 10 basis point reduction in the interest rate of a multifamily refinance, acquisition, or supplemental mortgage loan. 


By USGBC | February 6, 2015
Fannie Mae to offer lower interest rates to LEED-certified multifamily properties

Colorado Court Affordable Housing — Santa Monica, Calif. Photo: Calder Oliver via Wikimedia Commons

The U.S. Green Building Council (USGBC) announced today that Fannie Mae will reward multifamily properties with a green building certification, such as LEED, with a lower interest rate. USGBC’s LEED green building rating system is one of several recognized certifications including Energy Star and Enterprise’s Green Communities Criteria.

For these certified properties, Fannie Mae is now granting a 10 basis point reduction in the interest rate of a multifamily refinance, acquisition or supplemental mortgage loan. For example, if the market interest rate is 4% on the multifamily loan, the new rate is 3.9% with this pricing break. On a $10 million dollar loan amortizing over 30 years, the owner would save $95,000 in interest payments over a 10-year term.

All loans financed under this lower interest rate will be also securitized as a Green MBS, growing the total volume of Green Bonds in the market for socially responsible investors to include in their portfolios. Fannie Mae is the leading provider of multifamily financing in the U.S., with a portfolio valued at more than $200 billion.

“This is a great demonstration of leadership from Fannie Mae, and the partnership between the multifamily finance industry and the green building industry,” said Rick Fedrizzi, CEO and founding chair, USGBC. “This is real money and an incentive to not only build green but also for existing buildings to achieve certification. For the first time, Fannie Mae multifamily lenders will be able to reward building owners for their better buildings.”

"Fannie Mae is leading the way in financing by offering new lower interest rates for green building certified multifamily properties,” says Jeffery Hayward, executive vice president for multifamily, Fannie Mae. “We clearly see the value in the triple-bottom line of certified green buildings: financial benefits of lower operating costs for owners and tenants; social benefits of better quality housing for renters; and environmental benefits for everyone. Our lenders are ready with financing solutions to help multifamily owners make their properties more energy and water efficient for today and for the future."

LEED buildings have been proven to have lower monthly energy and water costs, leaving more disposable income for families and creating healthier and more comfortable indoor environments for occupants. In a study from the U.S. Department of Energy it was reported that LEED buildings are estimated to consume 25% less energy and 11% less water, have 19 percent lower maintenance costs, 27 percent higher occupant satisfaction and 34 percent lower greenhouse gas emissions.

For more information on Fannie Mae’s Multifamily Green Initiative, please see www.fanniemaegreeninitiative.com.

Related Stories

Multifamily Housing | Nov 29, 2021

Arthaus residential units and community art gallery debut in Allston, Mass.

PCA-designed residential community includes 74 apartments, 9 condos by The Mount Vernon Company.

Sponsored | Multifamily Housing | Nov 24, 2021

MagicPak HVAC System: More Desirable Living, Dramatically Less Time

When tapped to create a modern 280-unit residence in downtown Philadelphia, modular builder Volumetric Building Companies used the MagicPak All-in-One™ HVAC system to optimize square footage, expand rooftop amenities, improve the exterior aesthetics and simplify ongoing maintenance – all with 60 percent less onsite HVAC install time than a traditional split system. 

Giants 400 | Nov 18, 2021

2021 Multifamily Sector Giants: Top architecture, engineering, and construction firms in the U.S. multifamily building sector

Clark Group, Humphreys and Partners, and Kimley-Horn head BD+C's rankings of the nation's largest multifamily building sector architecture, engineering, and construction firms, as reported in the 2021 Giants 400 Report.

Sponsored | | Nov 15, 2021

How TDK Construction Saves Time and Money with EXACOR™ MgO Panels: Getting in on the Ground Level

Smart decisions made at the start of multifamily design-builds can improve efficiency on the job site, keeping projects on-time and on-budget, so you can make your properties profitable sooner. TDK Construction did just that on a recent luxury apartment project in Tennessee.

Multifamily Housing | Nov 14, 2021

How to build better parking for multifamily housing projects

In designing and building multifamily projects, parking determines everything from site suitability to the building’s footprint to revenue optimization.

Multifamily Housing | Nov 9, 2021

MAD Architects unveils One River North design

The project is set to rise in Denver.

Hotel Facilities | Nov 3, 2021

California’s Hotel del Coronado is finishing up the final piece to its Master Plan

A 75-residence Shore House will be family oriented and meeting commodious.

Multifamily Housing | Nov 3, 2021

Courthouse becomes mixed-income housing development

The project is located in Worcester, Mass.

Adaptive Reuse | Nov 1, 2021

CallisonRTKL explores converting decommissioned cruise ships for housing

The rapid increase in cruise ship decommissioning during the last 18 months has created a unique opportunity to innovate and adapt these large ships.

Multifamily Housing | Oct 31, 2021

Developer chooses ductless HVAC system for the Lofts at Empire Yards

Georgia developer chooses ductless systems for their performance, quiet operation, and efficiency 'in a nice, sleek package.'

boombox2 -
native1 -

More In Category


Multifamily Housing

MagicPak HVAC System: More Desirable Living, Dramatically Less Time

When tapped to create a modern 280-unit residence in downtown Philadelphia, modular builder Volumetric Building Companies used the MagicPak All-in-One™ HVAC system to optimize square footage, expand rooftop amenities, improve the exterior aesthetics and simplify ongoing maintenance – all with 60 percent less onsite HVAC install time than a traditional split system. 



halfpage1 -

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021

 


Magazine Subscription
Subscribe

Get our Newsletters

Each day, our editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Subscribe

Follow BD+C: