There are numerous financial incentives available for new and existing buildings pursuing green certification. These range from financing discounts to utility rebates from various agencies. And just to keep things interesting, the terms and availability of the incentives change periodically. SK Collaborative can help you determine which incentives apply to your project and the best way to meet the requirements of each. Initial analysis of a project can determine what incentives will apply, their value, and the costs involved in meeting requirements. Armed with this information, owners, contractors, and developers can make informed decisions that benefit their project’s bottom line.
HUD Mortgage Insurance Discounts
New construction multifamily projects that are both green certified and confirm through energy modeling that they will meet specific energy efficiency targets are eligible for a 45 basis point discount on mortgage insurance premiums. By the time of closing, these projects must have completed energy modeling to confirm that they will meet the minimum ENERGY STAR Score of 75 in Portfolio Manager, commit to certification under one of several approved programs, track utility use, and deliver ENERGY STAR reports to HUD annually after occupancy.
SK Collaborative has partnered with WegoWise, a leading utility tracking organization, to help multifamily developers track energy use and complete all required post-occupancy reporting automatically.
Almost any new multifamily building can meet the energy efficiency and green certification requirements with minimal extra cost and effort, resulting in both energy and financial savings, providing a significant return on investment. In addition, the mortgage insurance premium discounts can transfer to future purchasers, increasing a project’s value when sold.
Fannie Mae Healthy Housing Rewards
New and renovated affordable multifamily developments are eligible for financing discounts when certified as healthy projects using the Fitwel program. Amani Place in Atlanta, completed in 2019, took advantage of this program as one component of their financing of this exceptional redevelopment project.
Fannie Mae Green Financing
Existing multifamily buildings undergoing renovations can refinance at discounted rates and higher loan to value ratios if they agree to meet green certification or reduce energy and water use by 20%. These projects must provide annual ENERGY STAR reports after occupancy.
SK Collaborative provides certification, energy modeling, and consulting on projects applying for Fannie Mae Green Financing loans, and can coordinate ongoing tracking of utilities through our partnership with WegoWise to automatically complete post-occupancy reporting.
Freddie Mac Green Advantage
This program provides incentives for existing multifamily projects that are planning to pursue green certification, or are already certified and looking to refinance. Projects must project a minimum 15% savings in energy or water and sewer consumption based on an initial Green Assessment of the existing building and a list of recommended improvements and the savings they will provide. Green Advantage offers preferential loan rates and reimburses the cost of the Green Assessment for projects they finance.
SK Collaborative provides green assessments for Green Advantage loans and can coordinate ongoing tracking of utilities through our partnership with WegoWise to automatically complete post-occupancy reporting.
Georgia Power offers rebates for high-performance single family homes and renovations through their EarthCents and Home Energy Improvement programs. New homes are eligible for a $500 rebate, provided they use electricity for heating and hot water, meet a HERS rating of 74 or lower, and are a Georgia Power customer. The existing homes rebate program is “paused” for 2017. Rebates for HVAC replacement and programmable thermostats remain.
Georgia Power also offers rebates for high-performance multifamily family homes and renovations through their EarthCents and Home Energy Improvement programs. The construction multifamily program is “paused” for 2017. There is some indication that the rebates will become available again in 2018. The HEIP rebates are available with a “reservation” from Georgia Power. Projects should consult their Georgia Power account representative prior to pursuing the rebates.
Contact us to learn more.