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Your Navigation Guide To Green Multifamily Loans

The loan is greener — and cheaper — on the other side.

In the past year, Fannie, Freddie and HUD have all released programs incentivizing green improvements and properties — and the dollars are adding up. Each agency provides slightly different incentives for different property types, including more loan dollars, report reimbursement and interest rate reductions. If you want to go green, explore the chart below to figure out which loan is right for your property.


Are green-efficiency loans worth the commitment? To find out, Berkadia studied the effectiveness of Fannie Mae’s Green Rewards Program for a 400-unit multifamily home constructed in 1986. The property received a $44k loan — achieving a 33 basis point interest rate reduction and netting $100k per year in savings — to finance upgrades to water fixtures in unit bathrooms and kitchens. The owners also invested in efficient pool covers. The upgrades will save 4.62 million gallons of water per year, a 30% reduction in usage.

Optimizing water usage also had a significant impact on yearly water bill costs. The property will save $152k per year. Overall, while the one-time expense of the renovations averaged $110 per unit, each unit will save $1,387 annually, and for the entire property, projected total savings exceed $2.5M. It is easier — and more cost effective — than ever to go green.

For additional eligibility requirements, visit: 

Visit Fannie and Freddie's sites to also view which industry-standard certifications qualify your property for a green pricing break. New certifications are added all the time; call your lender for details.

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