Freddie Mac Multifamily Green AdvantageSM

Our Freddie Mac Multifamily Green AdvantageSM suite of offerings rewards borrowers who improve their properties to save energy — or who already have green-certified properties and are looking for new financing.

Going Green?Choose Green UpSM or Green Up PlusSM. When you commit to reduce energy or water consumption by at least 15% according to a Green AssessmentSM or a Green Assessment PlusSM, you may get better pricing and more funding to make these enhancements.

Green Advantage works with our Conventional, Targeted Affordable and Seniors Housing products.

Green AssessmentSM Green Assessment PlusSM

Get a Green AssessmentSM, a quick, straight-forward property analysis to show borrowers how they can save energy and/or water by making property improvements.

A Green Assessment can be completed within two weeks without adding to processing time.

We reimburse up to $3,500* of the cost of the report when the borrower closes a loan with Freddie Mac.

* Exceptions may apply, such as for large multi-phase properties, so Sellers should consult with their Freddie Mac representative before ordering a Green Assessment.

Get a Green Assessment PlusSM, a highly- detailed property analysis based on an ASHRAE level 2 energy audit.

We reimburse up to $3,500 of the cost of the report when the borrower closes a loan with Freddie Mac.

Green UpSM Green Up PlusSM

Green UpSM. Borrowers who commit to making improvements based on the Green Assessment and are able to save 15% in energy or water usage get:

1. Better pricing

2. More funds: We’ll underwrite up to 50% of projected energy savings

Green Up PlusSM. Borrowers who commit to making improvements based on the Green Assessment Plus and are able to save 15% in energy or water usage get:

1. Better pricing

2. More funds: We’ll underwrite up to 75% of projected energy savings

Green Up Green Up Plus

Minimum Projected Consumption Reduction

15% of energy or water/sewer consumption based on Green Assessment

15% of energy or water/sewer consumption based on Green Assessment Plus

Underwriting Approach

Recognize 50% of projected owner-paid energy and/or water/sewer savings based on Green Assessment

Recognize 75% of projected owner-paid energy and/or water/sewer savings based on Green Assessment Plus

Loan Proceeds/Sizing Up to 5% additional proceeds, subject to 85% “As Is” LTV or program limit and 1.20X DCR or program limit

Up to 5% additional proceeds, subject to 85% “As Is” LTV or program limit and 1.20X DCR or program limit

Minimum Green Improvement Budget

$250 per unit $250 per unit

Time to Complete Green Improvements

2 years to complete. Work must commence within 180 days of loan origination

2 years to complete. Work must commence within 180 days of loan origination

Escrow Requirements Funds for energy/water efficiency work will be escrowed at 125% of cost and released as work is completed.

Funds for energy/water efficiency work will be escrowed at 125% of cost and released as work is completed.

Benchmarking Requirements

Property energy and water usage must be recorded in EPA Portfolio Manager before closing and annually until 2 years after project completion.

Property energy and water usage must be recorded in EPA Portfolio Manager before closing and annually until 2 years after project completion.

Required Third Party Reports

Green Assessment Green Assessment Plus

Properties that could be a good fit for the offering include those that are over 20 years old or tax-credit properties coming out of their compliance period and have not undergone significant rehab to their energy or water systems.

Here are some vendors to consider who can provide a Green Assessment.

Already Green?

Green Certified We give discounted loan pricing for properties that have affordable rental units with any of the following eight industry-standard green building certifications:

1. EarthCraft, Greater Atlanta Home Builders Association & South Face2. ENERGYSTAR® for Multifamily, EPA3. ENERGYSTAR® for Qualified Multifamily High-Rise, EPA4. Green Communities, Enterprise Community Partners5. Green Globes, Green Building Initiative6. GreenPoint Rated, Build It Green7. LEED, US Green Building Council8. National Green Building Standard (NGBS), Home Innovation Research Labs

Seller/Servicers should:1. Speak to their Freddie Mac representatives.2. Complete our Affordability Test and select the relevant certification.3. Provide evidence of certification as part of the loan submission to receive our best quote.

Green Rebate If your borrower doesn’t choose the Green Advantage options, make sure they know they can receive $5000 from Freddie Mac [PDF] for delivering an EPA ENERGYSTAR Score®.

Freddie Mac Multifamily Green AdvantageSM