Green Financing Loans

Multifamily Green Financing Loans provide additional loan proceeds for energy and water efficiency retrofits and general property improvements while working with your Fannie Mae Lender.

Interest Rate Reduction on Green Preservation Plus and M-PIRE loans

Fannie Mae has announced an interest rate reduction of 10 basis points on Green Preservation Plus and M-PIRE Loans. Property owners may use Green Preservation Plus and M-PIRE to for acquisition and refinance financing; M-PIRE may also be used for supplemental financing.

Contact Fannie Mae for more information

Green Preservation Plus

Green Preservation Plus assists owners to transform aging affordable housing and make smart investments for the long term. Flexible loan terms allows owners to access extra loan proceeds for general and property improvements that prevent deterioration and cut energy and water waste.

M-PIRE Mortgage Loan

The New York City Multifamily Property Improvements to Reduce Energy (M-PIRE) Loan provides additional proceeds to affordable and workforce housing property owners to make smart property investments. M-PIRE allows a portion of the property’s projected energy and water cost savings to be underwritten into the pro forma.

Lower all-in interest rate on loans for multifamily properties with Green Building Certification

Fannie Mae is recognizing the value of Green Building Certifications by offering a lower interest rate on loans for multifamily properties that have a Green Building Certification. For these certified properties, Fannie Mae is 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.

Property owners may access this reduction in interest rate with any multifamily acquisition, refinance or supplemental financing offered by Fannie Mae Multifamily.

Contact Fannie Mae for more information

About Green Building Certifications

Fannie Mae recognizes a number of certifying organizations that provide Green Building Certifications for multifamily properties. Properties with these certifications are eligible for an interest rate reduction on their loans and will be disclosed as a Green MBS. Other certifications may be recognized by Fannie Mae at the time of financing.

Multiple organizations award a Green Building Certification for multifamily properties. A Green Building Certification indicates that that a multifamily property has met pre-defined energy efficiency, water efficiency or other environmental sustainability criteria. Depending on the certification, properties may be newly constructed or retrofitted to meet the criteria. In a green certified building, renters may have lower monthly energy and water costs, and live in an apartment that is more comfortable in the heat of summers and the cold of winters. Owners may see a reduction in their energy and water costs, higher occupancy rates and increased property sales prices.

(Source: "Energy Efficiency & Financial Performance: A Review of Studies in the Market", U.S. Department of Energy, March 2014.)