In August, Freddie Mac launched the Freddie Mac Multifamily Green Advantage, a flexible, cost-effective suite of offerings to finance resource-efficient multifamily rental housing that is available with most of its multifamily loan products. With this offering, borrowers can get better pricing and increase their Freddie Mac loan amounts to finance energy and water efficiency improvements on multifamily properties. Freddie Mac will reimburse borrowers all or part of the cost of the energy audit used to identify cost-saving features and improvements for their approved loan.
Multifamily buildings with at least one affordable rental unit that either have or are seeking NGBS Green Certification will qualify for the better pricing on existing green buildings under Green Advantage.
Borrowers have two financing options:
- Green Up enables borrowers with qualifying properties to increase the amount of their eligible Freddie Mac Multifamily loan by up to 50% of projected energy and water savings.
- Green Up Plus enables borrowers to increase the loan amount by up to 75% of the projected savings.
Under Green Up, savings are calculated through a Green Assessment, a short, straightforward evaluation of green opportunities, estimated costs, and projected savings. For Green Up Plus, borrowers must provide a Green Assessment Plus, which is a more detailed analysis based on an ASHRAE Level 2 assessment that potentially can lead to greater savings. Green Up Plus requires a minimum projected savings of at least 15% in water or energy usage and gives borrowers up to two years to complete the improvements.
The Freddie Mac Multifamily Green Advantage significantly expands on the Green Rebate Freddie Mac began to offer last year to borrowers who voluntarily provided an Energy Star score with their loan documents. For more information on Green Advantage, visit freddiemac.com/multifamily. For more information on how to renovate an existing multifamily building to attain NGBS Green certification and benefit from Green Advantage, visit HomeInnovation.com/Green.