Fannie Mae Approves BREEAM for Its Green Financing Program
There are now seven organizations with green building certifications that meet the GSE’s requirements for Group 1 rates.
BRE Global announced that Fannie Mae approved the institution’s BREEAM Residential Plus assessment approach for its Green Financing program, with products for multifamilies “that benefit borrowers who invest in energy and water efficiencies, including preferential pricing and additional loan proceeds for energy and water efficiency retrofits.”
According to Fannie Mae, BREEAM USA is now one of seven organizations that have green building certifications acceptable to join the Group 1 certifications, which was the top level until the introduction of Towards Zero.
“Fannie Mae has done exemplary work providing financial incentives to building owners and operators to focus on lower energy use and more sustainable operations and verify through third-party certification,” said Breana Wheeler, BRE director of operations, in prepared remarks.
To qualify for a green mortgage, the property itself must have its own green building certification and one that applies to a larger development site including the property doesn’t count. All residential units and common area spaces must be covered, the certification must have been gained within the last five years and must be current. The certification must be obtained before rate lock.
Other organizations that can provide recognized certifications for Group 1 rates include Build It Green, Enterprise Community Partners, Green Building Initiative, US Department of Energy, US Environmental Protection Agency, and the US Green Building Council.
Owners that can meet the standard, whether under BREEAM Residential Plus or another accepted choice, can get preferential pricing in loans.