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Funding and Financing

Fannie Mae: Green Rewards

Building Sector:

Multifamily Affordable Housing Multifamily Market Rate Housing

Energy Type:

Electricity Gas Solar Water

Financial Incentives:



Fannie Mae

Program Name

Green Rewards

Program Summary

The Fannie Mae Multifamily Green Financing Business provides mortgage financing to apartment buildings and cooperatives (with five or more units) to finance energy and water efficiency property improvements. Green Rewards provides lower pricing, additional loan proceeds, and a free Energy and Water Audit Report to finance smarter, greener property improvements.

Applicable building size

5 or more residential units.


Property owner must commit to property improvements that are projected to reduce the whole property’s annual energy and/or water usage by at least 30%, of which a minimum of 15% must be projected energy savings. Eligible improvements include new ENERGY STAR appliances, energy-efficient HVACs, WaterSense-labeled low-flow fixtures, LED lighting, solar photovoltaic (PV) systems, and more.


  • Incentive/funding details. All Fannie Mae green loans are securitized as Green Mortgage Backed Securities (Green MBS). To learn more about these programs, multifamily property owners should coordinate with a Fannie Mae DUS Lender.
  • Contract structure. Mortgage.
  • Amount (max, min, average). Varies.
  • Simple payback. Varies.
  • Tax and balance sheet. Mortgage.
  • Pairing with other sources. Can be paired with other sources, including local utility incentives.


  • When in the project process an application should be started/completed. Fannie Mae’s Delegated Underwriting and Servicing (DUS) lender partner will engage a high-performance building consultant to complete a High-Performance Building Report on behalf of the borrower during underwriting. Borrower will select eligible improvements prior to loan closing. Borrower has 12 months from loan closing to implement improvements.
  • Level of effort required. Varies.
  • Length of time to receive funding. Funds are escrowed at loan closing and released upon completion of Energy and Water Efficiency Measure (EWEM) improvements.
  • Contractor requirements. None.

Additional information

  • Advantages. Lower interest rate; free energy and water audit report and technical solar assessment; up to 5% more loan proceeds; increase net cash flow by underwriting projected energy and water cost savings; No minimum investment per unit; attract more investors with a Green MBS; whole-property energy and water reporting is required for life of loan and is supported by Fannie Mae’s Green Measurement and Verification Service.
  • Ownership types or organizations are best suited for the program. Multifamily owners who are acquiring or refinancing a property.
  • Program fit for customer. A multifamily owner who is seeking a no-cost energy audit, reduced mortgage interest rate, and additional proceeds from underwriting a savings from energy and water savings improvements.

Take action

Visit Fannie Mae’s website for more information about the Multifamily Green Financing Business.

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