Fannie Mae provides offers Green Preservation Plus; an execution option that provides additional loan proceeds to finance energy and water efficiency improvements for existing Multifamily Affordable Housing (MAH) properties. This program provides 4-5% more loan proceeds than a typical MAH loan, competitive pricing, and a speedy execution.
| Fannie Mae Green Preservation Plus | |
| Use | Energy- and water-saving improvements must equal at least 5% of the original mortgage loan amount. Owners may access the equity in the property in an amount up to the cost of the energy and water saving improvements being financed. |
| Term | 10+ years Years |
| Amortization | Up to 30 Years |
| Max LTV | 5% higher than applicable LTV limitation for the mortgage loan and the underlying property. |
| Min DSCR DSCR Calculator | 5 basis points lower than the applicable DSCR requirement for the mortgage loan and the underlying property. |
| Recourse Requirements Loss | The rent and income restrictions applicable to the property must remain in effect for at least the term of the Mortgage Loan. |
| Rate Lock | Standard rate lock requirements apply. |
| Escrows | Replacement reserve, tax, and insurance escrows are required. |
| Third-Party Reports | Standard third-party reports including Appraisal, Phase 1 Environmental Assessment and a Physical Needs Assessment are required. The Physical Needs Assessment must include the High Performance Building module, or an equivalent scope of work that meets the requirements of the ASHRAE Level 2 audit. The PNA with the HPB Module requirement can be waived for projects of 50 units or less, where the cost of other renovations can be demonstrated by at least 5% of UPB. |
| Interest Rate | Fixed Rate |
| Assumption | Standard assumption requirements apply. |
| Prepayment Options | Yield maintenance |
| Execution Options | Green MBS |
| Subsidy Layering Review | Some transactions will require a subsidy layering review by HUD (or in some
cases, a state
tax credit allocating agency), such as:
|
| Asset Management | Property improvements must be made within 12 months. Lenders will verify the completion of the agreed-upon property improvements. To verify reductions in energy and water consumption, borrowers must track total energy and water usage and costs using ENERGY STAR Portfolio Manager (www.energystar.gov) starting in year one. |
