Three green financing products are available for NGBS Green projects:

1. Green Rewards: Preferential pricing (10 bps discount) and up to 5% additional loan proceeds available for properties ready to make improvements and repairs after loan close. Available for refinance, acquisition, supplemental, and second supplemental.

2. Green Certification Pricing Break: Preferential pricing available for properties with NGBS Green certification awarded prior to loan lock. Available for refinance, acquisition, and supplemental.

3. Green Preservation Plus: Preferential pricing (up to 5 bps discount) and up to 5% additional loan proceeds available for affordable properties that are 10+ years old and ready to make improvements and repairs after loan close. Available for refinance and acquisition loans.

For more information see Fannie Mae Green Financing products. Interested developers and owners should contact a lender included on the Fannie Mae Multifamily Lender Partners list.

Freddie Mac’s Green Advantage^® program provides preferential loan pricing and underwriting flexibilities for multifamily properties that demonstrate energy and water efficiency or hold an approved green building certification. Properties with at least one affordable rental unit that have or are pursuing NGBS Green certification qualify for the Green Certified pathway, which offers better pricing for existing green buildings.

Borrowers also have two additional options tied to projected consumption reductions:

1. Green Up allows borrowers to increase the loan amount by up to 50% of projected energy and water savings based on a Green Assessment.

2. Green Up Plus allows borrowers to increase the loan amount by up to 75% of the projected savings based on a more detailed Green Assessment Plus.

Borrowers typically use the Green Certified path when a property already holds or is pursuing a recognized green certification, such as NGBS Green. Green Up and Green Up Plus are designed for projects committing to measurable energy and water savings without necessarily seeking certification. Pursuing NGBS Green certification often delivers a stronger overall financing outcome—qualification is immediate upon certification rather than dependent on modeled savings, pricing benefits are predictable, and the third-party verification adds credibility and long-term ESG value for investors, lenders, and portfolio reporting.

For more information on Green Advantage, check out Freddie Mac's Multifamily Seller/Servicer Guide.

In 2016, HUD introduced a reduced mortgage insurance premium (MIP) for certain green multifamily properties for Federal Housing Administration (FHA) insured multifamily loans secured by buildings that attain NGBS Green certification. Annual MIP rates are reduced to 25 basis points from current rates, which are typically between 45 and 70 basis points, for multifamily FHA-insured loan types that meet two conditions:

• The building must be NGBS Green Certified, or the building owner must attest that s/he is seeking NGBS Green certification for the building.
• The owner must attest that the building has achieved or will pursue an Energy Score of 75 or better using EPA’s Portfolio Manager. The score must be verified by a qualified assessor in preparing the physical condition assessment report.

MIP rate reductions are available for multifamily new construction, renovation, refinance, purchase, or seniors’ housing. NGBS Green offers flexible and affordable certification for either new construction or renovation and, consequently, is a great path for builders seeking to qualify for MIP reductions.

The Choice Neighborhoods program supports locally driven strategies to address struggling neighborhoods with distressed public or HUD-assisted housing through a comprehensive approach to neighborhood transformation. Awards of up to $30 million are available to communities under this program. Choice Neighborhoods Planning Grants are available to support the development of comprehensive neighborhood revitalization plans that focus on directing resources to address three core goals: Housing, People, and Neighborhoods. Choice Neighborhoods Implementation Grants support those communities that have undergone a comprehensive local planning process and are ready to implement their "Transformation Plan" to redevelop the neighborhood. The 2016 Program Notice of Funding Availability (NOFA) encourages the use of NGBS Green for new construction or substantial rehabilitation proposed as part of the community plans.

• The Green and Resilient Retrofit Program (GRRP)
  Information and chart of requirements and FAQs

Applicants to several Rural Rental Housing, Farm Labor Housing, Housing Preservation Grants, and Multifamily Housing Revitalization grants and loans are eligible to receive additional points for new construction and rehabilitation projects that are certified to the NGBS, LEED for Homes, Enterprise Green Communities, and/or ENERGY STAR. Points awarded for each certification obtained, and more points will be awarded for higher certification levels. See more here.

• HUD/USDA New Energy Efficiency Standards for Housing (Informational Video)

• IRA Tax Incentive Chart Eligibility for Residential Development & Construction