Green-Preservation-Plus-Fannie-Mae

Green Preservation Plus - Affordable Multifamily

Green Preservation Plus is a financing option offered by Fannie Mae that helps owners of multifamily affordable housing (MAH) preserve and improve their properties by providing funding for energy-efficient retrofits.  Designed specifically for affordable apartments, investors can finance improvements and use proceeds for upgrading insulation, efficient water fixtures, windows, lighting, and HVAC systems.

The Green Preservation Plus loan offers a number of benefits:

  • Lower interest rates: Borrowers can qualify for lower interest rates than traditional loans, which can save you money over the life of the loan.
  • Tax credits: You may be eligible for tax credits for making energy-efficient upgrades to your property.
  • Mortgage insurance premium waivers: You may be eligible for mortgage insurance premium waivers, which can save you money each month.
  • Energy efficiency upgrades: Modern retrofits can reduce your property’s operating costs and save you money in the long run.
  • Reduced environmental impact: Green upgrades will reduce your property’s environmental impact, which can benefit the community and the planet.
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Requirements: Green Preservation Plus

  • For properties 10 years or older, and meet certain income and rent restrictions.
  • Loans up to 85% of the appraised value of the property.
  • Loan Term is typically 20 to 30 years, with lower rates than traditional financing.
  • The program is fully assumable, subject to lender approval and a 1% fee

Benefits of Green Preservation Plus

  • Increased loan proceeds through lower debt service and higher loan-to-value ratios
  • Up to 5% of the loan amount can be added to the mortgage loan to pay for energy- and water-saving improvements
  • Properties that achieve energy and water savings of at least 20% may be eligible for a 0.10% interest rate discount

To qualify for the Green Preservation Plus program, properties must meet certain eligibility requirements.  The property must be multifamily affordable housing and demonstrate that the proposed energy-efficient retrofits will achieve the minimum energy and water savings.

If you own or manage multifamily affordable housing and want to learn more about Green Preservation Plus, call 949-614-1300 or contact one of our advisors.

Finance Energy Saving Upgrades and Retrofits