In August 2016, Freddie Mac launched the Multifamily Green Advantage offering. This green financing initiative offers eligible borrowers beneficial loan pricing to finance certain resource-efficient multifamily properties.
To be eligible for Multifamily Green Advantage, borrowers must perform a Green Assessment or ASHRAE Level II Energy Audit to identify specific energy efficiency and water conservation measures. Based on the findings of this assessment, discounted interest rates and additional loan proceeds will be provided to borrowers who commit to assessing or improving the asset’s energy or water performance (by at least 15%). Freddie Mac will reimburse the borrower up to $3,500 for the cost of the assessment used for the approved loan.
Borrowers may apply for the Multifamily Green Advantage through one of two paths: the Green Up or Green Up Plus. The specifics of these paths are detailed on the Freddie Mac website. The new offering is detailed further in this GlobeSt blog.
Fannie Mae and HUD have recently also introduced green financing programs that reward borrowers for increasing energy and water efficiency as well as achieving green building certifications. More on those can be found here and here.
