More NGBS Green Certifications Now Recognized in Recent Fannie Mae Update

Earlier this year, Fannie Mae released an updated version of Form 4250, which identifies the green building certifications recognized and approved for its Green Building Certification offering. Once again, NGBS Green certifications for new and renovated multifamily buildings were recognized as options. This year, the NGBS Green streamlined single-family certification path and several NGBS Green+ certification options were also recognized.

For more than 10 years, Fannie Mae’s flagship Multifamily Green Financing program has supported more sustainable and affordable housing for residents through its Green Building Certification program and Green Rewards, the organization’s green property improvement program. Fannie Mae conducts an annual review of green building certifications available to multifamily properties. All recognized certifications establish minimum requirements for energy reductions. Home Innovation’s NGBS Green compliance options for multifamily buildings have been recognized as options since the launch of Fannie Mae’s Green Building Certification offering in 2015. With this latest review and wider approval by Fannie Mae, NGBS Green certification was recognized under four categories alongside other reputable third-party green building and energy efficiency certification programs including ENERGY STAR, Enterprise Green Communities, and LEED Residential.

“Towards Zero” Certifications have the highest-level environmental impact. According to Fannie Mae, these recognized certifications “reach for net zero energy” through a combination of highly-efficient techniques and renewable energy generation. Home Innovation’s NGBS Green+ NET ZERO ENERGY certification was recognized under this category. 

Beyond the Towards Zero category, Fannie Mae divides its recognized green building certifications in three groups—Groups 1 through 3 (with Group 1 as the highest level)—based on the level of social and environmental benefits the programs are designed to encourage.

• Under Group 1, the newly-added NGBS Green Single-Family Certified pathway is recognized. Multifamily developers constructing communities of single-family townhomes or detached build-to-rent housing can seek the streamlined single-family certified pathway and unlock green multifamily financing through Fannie Mae. This rigorous, yet administratively streamlined, certification path requires homes that are designed and constructed to be more efficient than code and that include important building practices to ensure the home provides a healthier indoor environment, is more water efficient, and is more durable.
   
• Under Group 2, the NGBS Green multifamily new construction pathways under the 2012, 2015, and 2020 versions are recognized. Under the NGBS, a new green multifamily building or the residential portion of a mixed-use building can earn certification based on the number of green practices successfully incorporated into its design and construction.

• Under Group 3, Fannie Mae recognized NGBS Green’s compliance options for existing buildings, as well as the +WELLNESS and +ZERO WATER certifications. Under the NGBS, a green remodeled building can earn certification based on the number of green practices successfully incorporated, in addition to the energy and water savings realized. The NGBS Green+ WELLNESS certification recognizes green certified buildings that are higher performing across multiple NGBS categories that influence human health. The NGBS Green+ ZERO WATER certification recognizes buildings that are constructed to meet all water usage through water capture.

To summarize the NGBS Green certifications recognized and approved by Fannie Mae for various levels of preferred financing:

• Towards Zero Certifications: NGBS Green+ NET ZERO ENERGY (2020)
• Group 1 Certifications: NGBS Green Single-Family Certified (2020)
• Group 2 Certifications: NGBS Green Multifamily New Construction (2012, 2015, 2020)
• Group 3 Certifications: NGBS Green Existing Buildings (2012, 2015, 2020); NGBS Green+ WELLNESS (2020); NGBS Green+ ZERO WATER (2020)

Find out more about Fannie Mae’s Green Building Certification program by visiting their website, and more on any of Home Innovation’s NGBS Green certification options by visiting  HomeInnovation.com/Green.

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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.