NGBS Recognized by Freddie Mac in New Green Advantage Financing

Earlier this week, Freddie Mac launched the Freddie Mac Multifamily Green Advantage(SM), a flexible, cost-effective suite of offerings to finance resource-efficient multifamily rental housing that is available with most of its multifamily loan products. With this new offering, borrowers can get better pricing and increase their Freddie Mac loan amounts to finance energy and water efficiency improvements on multifamily properties. Freddie Mac will reimburse borrowers all or part of the cost of the energy audit used to identify cost-saving features and improvements for their approved loan.

Multifamily buildings with at least one affordable rental unit that either have or are seeking NGBS Green certification will qualify for the better pricing on existing green buildings under Green Advantage. Borrowers have two financing options:

• Green Up(SM) enables borrowers with qualifying properties to increase the amount of their eligible Freddie Mac Multifamily loan by up to 50 percent of projected energy and water savings.
• Green Up Plus(SM) enables borrowers to increase the loan amount by up to 75 percent of the projected savings.

Under Green Up, savings are calculated through a Green Assessment(SM), a short, straightforward evaluation of green opportunities, estimated costs, and projected savings. For Green Up Plus, borrowers must provide a Green Assessment Plus(SM), which is a more detailed analysis, based on an ASHRAE Level 2 assessment, that can potentially lead to greater savings opportunities. require a minimum projected savings of at least 15 percent (water or energy usage) and give borrowers up to two years to complete the improvements.

The Freddie Mac Multifamily Green Advantage significantly expands on the Green Rebate Freddie Mac began offering last year to borrowers who voluntarily provided an ENERGY STAR score with their loan documents. More information on Green Advantage is available on Freddie Mac's website. More information on how to renovate an existing multifamily building to attain NGBS Green certification and benefit from Green Advantage can be found on the Home Innovation website.

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ABOUT: Home Innovation Research Labs, located in Upper Marlboro, Md., is a full-service research, testing, and consulting firm determined to improve the quality, durability, affordability, and environmental performance of single- and multifamily homes and home building products – in short, we aim to perfect the home. Founded in 1964 as a subsidiary of the National Association of Home Builders (NAHB), our team has been integral in solving many of our client’s most difficult product and technology issues, and helping to introduce some of the most groundbreaking innovations in construction. Through an interdisciplinary research approach – including market research, building science analysis, laboratory testing, and standards development – we help to find a home for innovation in the construction industry.

NOTE TO EDITORS ON STYLE USAGE: To identify this company and its work correctly, first reference should be "Home Innovation Research Labs." In subsequent mentions, “Home Innovation” should be used; we are not identified by an acronym. Prior to February 12, 2013, the company was known as the NAHB Research Center.