24 Jul Green Mortgages Making Progress with Incentives
Builder Online recently reported that two HUD programs are currently underway aimed at attracting private investors to energy efficient incentives. The first is The Energy Innovation Fund, which plans to award $25 million in funding through a grant process that will seed up to $200 million in revolving loan funds, loan guarantees, and green mortgages. In March, it awarded $23 million to 12 organizations in the funds pilot phase. And the other is Green Refinance Plus, a program in which the Federal Housing Administration (FHA) assumes half of the risk on a loan or acquisition underwritten by Fannie Mae on existing green projects while allowing owners to borrow additional money to make energy-saving improvements to their properties.
The article also noted that Green Campus Partners, developer and operator of a variety of multifamily properties, recently closed on a $50 million warehouse funding facility with Citi Public Affairs to establish some much needed capital for energy saving upgrades. The partnership gives companies access to the needed capital to fund energy efficient projects in the public sector by providing a revolving line of credit to the industry.
We think this is very promising and that finally there are organizations that can justify the financial benefits of green building for multifamily. It’s really refreshing to see Fannie Mae contributing to the effort by gathering essential energy use data on multifamily buildings so that a ratings scale can eventually be developed.
What are some of your thoughts on green mortgages? Do you like the direction it’s headed? Share your comments with us!