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Green Rewards

General Information and Structure

Fannie Mae
Lending Type: 
For-profit lender

Green Rewards is ideal for property owners investing in energy- and water-cost reducing property improvements at their existing multifamily property. Requires minimum projected reduction of 20% energy or 20% water consumption. A Green Rewards loan offers: -Free ASHRAE Level 2 Energy Audit, subject to loan closing under Green Rewards -Better pricing than non-green loans -Underwriting of 75% of owner's projected cost savings -Underwriting 25% of tenant's projected cost -Up to 5% additional loan proceeds -Disclosure of the loan as a "Green MBS" to the bond market

Active or Closed Program?: 
Type of Financing: 
Loan Size Range: 
Avergae loan size is $7-10M, but some are smaller, like $200K
Type of Improvements Covered: 
• Upgrading to ENERGY STAR® appliances • Upgrading boiler • Replacing inefficient lighting • Installing solar systems • Installing water-saving irrigation systems • Improving insulation • Making other energy- & water-saving improvements

Financing Details

When is the Product Applicable?: 
Secured - real estate

Additional Information

Program Notes: 
Multifamily Property Improvements to Reduce Energy (M-PIRE) leveraged a loan-loss reserve from New York City Energy Efficiency Corp. (NYCEEC) to assist Fannie Mae in incorporating projected energy savings into its underwriting practices. This enabled Fannie Mae to provide larger loan sizes to finance efficiency improvements and develop its green mortgage products.