While the value of green certified building has been well documented, another benefit can be added to the list as Fannie Mae has announced that certified multifamily facilities will receive a 10 basis point reduction in the interest rate of a multifamily finance, supplemental mortgage loan, or acquisition. Certification systems accepted include LEED, Green Globes, ENERGY STAR, and Enterprise Green Communities Criteria, among others.
The reduction in interest rates, which would cut a 4% market interest rate to 3.9%, is expected to not only ensure that new multifamily facilities are constructed to green certification standards but also encourage owners of existing buildings to achieve certification as well. Loans that are financed under the reduced rate will be securitized as green bonds and provide investors with more options for socially responsible development.
“We clearly see the value in the triple-bottom line of certified green buildings: financial benefits of lower operating costs for owners and tenants, social benefits of better quality housing for renters, and environmental benefits for everyone,” says Jeffery Hayward, executive vice president for multifamily, Fannie Mae.
Learn more about the program at the Fannie Mae website.