If you own a multifamily property, listen up we have some exciting news for you.
HUD and Fannie Mae are teaming up in an effort to lower the annual operating costs of properties that qualify for Low Income Housing Tax Credits.
They are calling it Green Refinance Plus which is a plus one to the existing HUD’s FHA and Fannie Mae “risk-share” program.
To do this they are going to start accepting refinance applications and offer a list of energy and water saving upgrades, as well as some additional renovations that may be required.
HUD is calling this Green Refinance Plus and including geothermal heat pumps in the program. This is a fantastic opportunity to not only upgrade your existing system, but switch to a geothermal solution that will save you even more money over the long run.
On average most owners of apartment complexes and other multihome properties refinances about once a decade. In that amount of time a new geothermal heat pump system will have paid for itself many times over.
The intention is to lend a hand to those who are currently able to continue owning their property, but unable to afford any upgrades to increase it’s worth and decrease energy consumption. By teaming up FHA, which is HUD’s Federal Housing Admin, and Fannie Mae will be able to refinance projects on these properties, and also allow property owners to obtain more funding to support other energy related improvements.
To peak interests further, Fannie Mae is suggesting they will be seeing, on average, loads from $3-$5 million.
Requirements for the program are as follows:
“Property must be at least 10 years old, with a recorded use agreement of the
affordability restrictions that extends for at least the term of the new loan to
help preserve affordable housing.At least 5 percent of the refinance loan proceeds must be applied to property
renovation or energy retrofit.All rehabilitation and energy improvements must enhance value and improve
property operations.”
Contact us today if you are interested in looking further into receiving funding to upgrade the energy efficiency of your property.
For more information about the Green Refinances Plus program, you can download the PDF fact sheet here.