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Green Rewards Program and Green Building Certification

Program Name: Green Rewards Program and Green Building Certification
Program Sponsor: Fannie Mae Green Financing Business
Program Type:          Financing
Technology:               Energy Efficiency/ Demand Response; Water Efficiency
Fuel:                        Fuel Neutral
Eligibility:  Owners and Tenants of apartment buildings with five or more units
Cost: Loan principal plus interest; loan amount varies by project


Fannie Mae Green Financing Business provides mortgage financing to apartment buildings and cooperatives (with five or more units) to finance energy and water efficiency property improvements. Its green financing programs include Green Rewards, and preferential pricing for loans secured by a property with an eligible Green Building Certification. Options are available for properties at acquisition, refinance, or supplemental financing.


Conventional and affordable housing (with five units or more) including multifamily, seniors, student, military, and cooperatives are eligible. Borrowers must commit to installing capital improvements that target a 25% or more reduction to the whole property’s annual energy or water use. Eligible improvements include new ENERGY STAR appliances, energy-efficient HVACs, WaterSense-labeled low-flow fixtures, LED lighting, and more.

How the Program Works

The Green Rewards Program provides up to an additional 5% proceeds by underwriting 75% of an owner’s projected cost savings, and 25% of the tenant-paid cost savings. Fannie Mae also offers a 10% interest rate discount for newly constructed or retrofitted properties with a Fannie Mae-recognized Green Building Certifications in hand prior to loan closing.

A Fannie Mae’s Delegated Underwriting and Servicing (DUS) lender partner will retain a consultant to complete an ASHRAE Level 2 energy audit on the property in question, the cost of which is covered by Fannie Mae upon closing of the Green Rewards loan. Borrowers will then select eligible improvements prior to loan closing and have 12 months from the closing date to implement the improvements. The lender will verify completion of the agreed-upon property improvements, and borrower must report the property’s annual Energy Performance Metrics, including ENERGY STAR score.

How to Apply

Multifamily property owners should coordinate with a Fannie Mae DUS Lender.

Contact Information

The Fannie Mae Green Financing Team can be reached via email at