Multi Family Preferential Pricing
Fannie Mae gives preferential pricing for all green loans, reducing the fixed interest rate of a multifamily refinance, acquisition, or supplemental mortgage loan. For example, as of 5/26/2016, a $10 million conventional green loan would receive an interest rate that is 33 basis points (0.33%) lower than a comparable non-green loan. The amount of the interest rate reduction varies based on the size and credit quality of the loan and may change over time but can be as high as 40 basis points.
GBI has put together a quick FAQ for you to glance at. If you are building multi family buildings and not using this program, then you are leaving money on the table.
1. Do all levels of Green Globes certification qualify?
All levels of Green Globes for New Construction or Green Globes for Existing Buildings qualify for inclusion in the Fannie Mae incentive program. Information regarding levels of certification can be found at: www.thegbi.org.
2. Which Green Globes certification program should be used to obtain the Fannie Mae incentive?
Green Globes certification can be achieved by both new construction projects and existing buildings. Ground-up new construction projects typically find the most value from the Green Globes for New Construction program by starting the certification process during the Construction Documents stage. However, due to the flexibility of the Green Globes for New Construction process, an assessment can be started pre-construction, post construction, or up to 18 months after occupancy. Additionally, if a building has already been occupied for eighteen months, it can be certified under Green Globes for Existing Buildings and still qualifies for the Fannie Mae incentive.
3. What evidence of the certification does Fannie Mae require?
Once your building has been certified under Green Globes for New Construction or Existing Buildings you will receive a Final Assessment Report and a PDF of an official certificate. The official certificate is the necessary evidence of certification.
4. How long does it take to receive certification under Green Globes for New Construction or Existing Buildings?
The Green Globes certification process follows the construction process. It is very possible that when your building is complete, your certification will be complete as well. Variables to this timeline are in the hands of your project team. After completion of an onsite assessment for either Green Globes for New Construction or Green Globes for Existing Buildings, final certification will be issued quickly. For extremely tight timelines, certification can be expedited for a nominal fee. Expedited timelines range from 90-120 days for New Construction and 45-60 days for Existing Buildings.
5. Does Green Globes for Existing Building certification require whole building energy performance data, specifically individual tenant energy performance?
Green Globes for Existing Buildings does not require whole building energy performance data. Energy performance data for common areas are sufficient to achieve certification.
6. Let’s do this! What is the next step?
Contact Mark Lesher at the Green Building Initiative at mark@thegbi.org or 503.274.0448 ext. 102. He is an expert in the Fannie Mae programs and can talk you through the simple steps to get your building certified with Green Globes. If you would like to talk to someone from Fannie Mae directly, you can contact Karyn Sper at karyn_sper@fanniemae.com. You can also download a one page overview with more information here.
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