It's A Good Time To Be Green
Green Financing for Multifamily Housing
For just over a year, the Fannie Mae Green Rewards and Freddie Mac Green Advantage programs have been running at full speed. Both programs offer attractive benefits, in the form of pricing discounts and underwriting of cost savings, to borrowers looking to purchase or refinance a multifamily property. Borrowers are incentivized to make energy- and water-saving improvements to their properties, and the benefit is multifaceted. Borrowers both save money over the ...
Fannie Mae Updates Guidelines for Green Rewards and Delegates Review to Lenders
On May 22, Fannie Mae (FNMA) released an update to its 4099 guide, with changes to requirements for High Performance Building reports. New requirements take effect for assessments engaged on or after May 22, 2017. This update brings good news to lenders and consultants, with some process refinement and quicker turns.
What this means for lenders
Delegated Underwriting and Servicing (DUS) lenders are now required to review and score High Performance Building ...
Freddie Mac announced earlier this month their Multifamily Green Advantage program, a suite of offerings rewarding borrowers who improve their properties to save energy and water with discounted loan pricing.
Tipping the scales for financing upgrades to multifamily housing toward sustainability, this new program from Freddie Mac has the potential to unleash large amounts of capital for green building improvements. This is very good news for green building.
Property owners who commit to reduce energy and water consumption by at least 15 percent ...
The Importance of Considering Dew Point When Increasing Insulation in Existing Buildings
Many of Nova’s clients seek our help in retrofitting existing buildings, with the goal of reducing utility expenses. Often, we are asked to evaluate the impact of additional insulation on an exterior wall. This is a tricky subject to navigate and depends on a variety of factors.
In International Energy Conservation Code (IECC) Zones 5 and higher, retrofitting an exterior wall with additional insulation carries a risk of moving the dew ...
In the fall of 2014, Kurt Shillington at Princeton Properties hired Nova Consulting Group for an energy retrofit of the company’s newly acquired Princeton Dover Apartment Homes. The property is a 5.84-acre parcel hosting 10 three-story buildings with 125 garden-style apartments and a stand-alone management-leasing office. It is located close to downtown Dover, New Hampshire, and includes amenities such as a swimming pool, a tot lot, an exercise room, and generous amounts of open space. Heat at the property is provided ...
Fannie Mae is offering several different loan products to encourage borrowers to include energy efficiency measures in a renovation scope. Loans are available for new construction, rehab, and as a supplemental financing source. Below is a quick summary of each loan product:
Green Building Certification:
Fannie Mae is granting a 10 basis point reduction in the interest rate of a multifamily refinance, acquisition, or supplemental mortgage loan for properties with a recognized green certification. These certifications include Energy Star, LEED, and Enterprise Communities, among ...
A $5,000 Green Rebate is available from Freddie Mac for first time borrowers on multifamily buildings with 20 or more units and an Energy Star Score.
Benchmarking your property also has the following benefits:
Nova has extensive experience providing this service:
Nova’s Strategic Energy Group will provide a phone consultation to discuss the results of your benchmark and optional solutions for reducing your energy consumption. Our goal is to work with building owners to reduce operating expenses and increase your bottom line.
*For online accounts, account ...
Freddie Mac's Green Rebate offering encourages borrowers on first mortgages to use the U.S. Environmental Protection Agency’s ENERGY STAR® Portfolio Manager® tool to assess the energy performance of their multifamily properties, as a first step in identifying opportunities for improvements. As an incentive to borrowers to make this assessment, Freddie Mac will now provide a rebate of $5,000 for new loans when the ENERGY STAR Score for the property is reported, regardless of the score achieved.
All multifamily buildings with greater than 20 units are eligible ...
For Nova’s Energy Efficiency Division, experience has shown that thorough documentation and staff training on new HVAC equipment is critical to achieving and maintaining savings. We strongly recommend this service to owners of new major equipment systems.
A major non-profit owner/operator of affordable multifamily housing commissioned through Nova the installation of 13 new boilers and associated controls and distribution. Following the site investigation and corrective action phase, the owner engaged Nova to create a building operator manual. The manual details critical operational ...
The City Council of Kansas City, Missouri, passed an Energy Empowerment Ordinance addressing energy use in existing municipal, commercial, and residential buildings by requiring energy benchmarking. Under the ordinance, building owners will be required to track whole-building energy and water use and report it to the city annually.
Participating buildings will be phased in, starting with municipal buildings over 10,000 square feet in 2016 and expanding to include private commercial and multifamily residential buildings over 100,000 square feet in 2017. All private ...