The Federal Housing Finance Agency (FHFA) reduced multifamily lending caps by over four percent in 2018 versus 2017. While this isn’t optimal news, agency lenders and borrowers who take advantage of excluded categories will find no shortage of opportunities. Green Finance programs are one of the excluded categories—the cap does not apply to them. There are many established benefits to green financing, including preferred pricing, higher underwritten net operating income (NOI) and value (such as tenant and owner paid utility bill savings), additional loan proceeds, and energy study cost reimbursement (up to $3,500 for Freddie Mac and Cost of High Performance Building Module for Fannie Mae).
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