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Fannie Lowers Rates for Green-Certified Multifamily Properties

Fannie Mae will reward multifamily properties with a green building certification with a 10-point basis.

Fannie Mae, on February 6, 2015, announced it will offer lower interest rates on loans made on certified energy-efficient multifamily buildings. In an effort to further incentivize property owners to improve the energy performance, and therefore the quality and affordability of multifamily housing, Fannie will grant a 10 basis point reduction in the interest rate of a multifamily refinance, acquisition, or supplemental mortgage loans. To qualify, properties must be certified under LEED, EPA’s Energy Star, or Enterprise’s Green Communities criteria. Fannie Mae will securitize all loans financed under this lower interest rate as Green Bonds, which will be an attractive option for socially-responsible investors to expand their portfolios.

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