Multifamily Green Bond Impact Report Highlights Benefits of Fannie Mae Loan Programs
"A Decade of Positive Impact" Reflects on 10 Years of Progress in Fannie Mae Green Financing
WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) today published its second annual Multifamily Green Bond Impact Report, “A Decade of Positive Impact,” to provide metrics on the projected financial, social, and environmental benefits from Fannie Mae Green Bonds for U.S. housing. As the largest green bond issuer in the world, Fannie Mae issued $22.8 billion in multifamily green mortgage-backed securities in 2019, comprising 32 percent of the company’s total multifamily issuances. Since its first issuance in 2012, Fannie Mae has issued more than $75 billion in multifamily green bonds and $9 billion in green resecuritizations.
Fannie Mae’s Multifamily Green Bond Impact Report reflects on the first 10 years of Fannie Mae’s green finance program and highlights the tangible benefits provided to communities across the country, including:
- Approximately 770,000 units have been retrofitted or green-building certified.
- Each dollar invested is projected to generate $2.99 in economic output.
- Newly constructed or retrofitted green multifamily buildings are estimated to have contributed $7.6 billion in workers’ income and $15.6 billion to U.S. gross domestic product (GDP) and supported 180,000 jobs.
- Tenants at these properties are projected to save $178 per unit per year on average on their utilities.
- As a result of Fannie Mae Green Bond-financing, properties are projected to reduce water use by 7.7 billion gallons, greenhouse gas emissions by 528,000 metric tons, and source energy by 7.8 billion kBTU.
"We are proud of the role our Green Financing program plays in building more sustainable and resilient communities and of what we have achieved for investors, lenders, borrowers, and the people who live in the properties we finance. We are excited to build upon the 10 years of progress we have made in green financing, and we will continue to look for new ways to advance this important work," said Jeffery Hayward, Executive Vice President and Head of Multifamily, Fannie Mae.
“When we launched our Multifamily Green Financing Business 10 years ago, our goal was to foster greener, more efficient, and more affordable housing communities. The cumulative and growing volume of our green bond issuances demonstrates the significant demand for quality mortgage financing and investment products that generate positive environmental, social, and financial outcomes," said Chrissa Pagitsas, Vice President – Enterprise Environmental, Social, and Governance (ESG), Fannie Mae. “As we move into our second decade of green financing and continue our ESG journey, we are committed to exploring new opportunities to promote and expand the growth of an active global green bonds market. The basic green bond premise – with its model for positive impact and transparency – is an important part of our framework for a sustainable ESG business strategy.”
Fannie Mae launched the Multifamily Green Initiative in 2010, which became the company's Green Financing Business after the issuance of its first multifamily green bond in 2012. The Green Financing Business supports the multifamily housing market by incentivizing property owners to make energy- and water-saving improvements and by supporting properties with a Green Building Certification. Selling green bonds into the broader capital markets helps accelerate the transition to a low-carbon economy and a greener housing supply. Fannie Mae’s Green Mortgage-Backed Security (MBS) offers rigorous and transparent green investment opportunities for global investors. For more information on Fannie Mae’s Green Financing Business, please visit www.fanniemae.com/green.
About Fannie Mae
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit:
fanniemae.com | Twitter | Facebook | LinkedIn | Instagram | YouTube | Blog
Fannie Mae Newsroom
Photo of Fannie Mae
Fannie Mae Resource Center