HUD and Fannie Mae Will Now Finance Green Improvements for Older Affordable Multifamily Properties!
July 1, 2011
HUD (FHA) and Fannie Mae have just announced a new program, Green Refinance Plus, that will enable owners of older affordable rental properties to refinance into new mortgages that include funding for energy and water saving upgrades, along with other needed property renovations. The program is intended to refinance the expiring mortgages of Low Income Housing Tax Credits and other affordable projects. The average loan amount is anticipated to be $3.5-5.0 million, however, lower loan amounts are acceptable..
FHA will insure up to an additional 4-5% of the loan amount or $150,000-$200,000/loan to provide additional funds to pay for improvements such as Energy Star appliances and Energy Efficient windows. Property owners will be able to select the energy efficiency upgrades that make the most economic sense for their properties upon the completion of a Fannie Mae Green Property Needs Assessment..
Properties must be 10 years old or older with recorded use agreements for the life of the new mortgage preserving the affordable housing status. A minimum of 5% must go towards property renovations or energy retrofits. The deferred capital needs identified and the opportunities opened up by this new financing program will ultimately reduce operating and capital costs for the property owner, reduce utility costs for tenants, and improve indoor environmental quality.
For assistance with project applications and corporate or project personnel training, please contact Felecia Elias at 978-273-6561 or FElias@EliasGlobalSolutions.com. She is a National Training Provider for HUD for this program and for the HUD Green Renovations Mark to Market Program.