Yesterday, the Federal Housing Administration (FHA) and Fannie Mae announced Green Refinance Plus, a new program which will assist owners of existing affordable apartment buildings in paying for energy efficient upgrades.
Through the refinancing of expiring mortgages, funding for energy and water preserving upgrades, as well as other appropriate property renovations will be available.
The loans are expected to range from $3.5 million to $5 million; the program is expected to create $100 million in initial refinance volume, according to a press release.
“All across the country, owners of affordable housing properties are looking for a way to refinance their mortgages and to make energy improvements and other needed renovations at the same time,” said U.S. Housing and Urban Development Secretary, Shaun Donovan, at the unveiling of the program in the San Francisco Bay Area yesterday. “This program kills two birds with one stone – it preserves our affordable rental stock and it helps finance upgrades that will save energy and money over the long haul. We must make the smart investments in a more energy independent economy. These investments will strengthen our economy, create the new industries and new jobs of the future and reduce our dependence on an ever fluctuating oil market. ”
“Green Refinance Plus supports Fannie Mae’s ongoing commitment to creating a more sustainable rental housing market that is affordable to low- and moderate-income families. This program will provide more renters with renovated apartments in which to live, allow building owners to better manage their energy costs, and help communities by reducing the environmental footprint of our rental properties. Leveraging existing technology and expertise to bring proven energy and cost savings to rental housing is a win for everyone,” added Fannie Mae’s Executive Vice President for Multifamily Business, Ken Bacon.
Applications for the program will be accepted starting in June.