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Funding and Financing

Freddie Mac: Green Up

Building Sector:

Multifamily Affordable Housing Multifamily Market Rate Housing

Energy Type:

Electricity Gas Solar Water

Financial Incentives:

Loan Mortgage

Administrator

Freddie Mac

Program name

Green Up® and Green Up Plus®

Program summary

Borrowers who commit to saving at least 30% in energy and/or water usage may get better pricing or additional funds to make these improvements.

Applicable building size

5 or more residential units.

Opportunity

Improvements must be able to reduce whole-property energy consumption by at least 15% and reduce either energy and/or water whole-property consumption by an additional 15% for a total of 30% reduction in whole-property energy and water consumption.

  • Green Up®: Improvements based on the Green Assessment, a straight-forward property analysis to find improvement opportunities. Will underwrite up to 50% of projected energy savings.
  • Green Up Plus®:  Improvements based on the Green Assessment Plus, based on an ASHRAE Level 2 energy audit to find improvement opportunities. Will underwrite up to 75% of projected energy savings.

Funding

  • Incentive/funding details. Works with 7- and 10-year fixed-rate Freddie Mac Multifamily Optigo loans, backed by properties with rents at affordable and workforce housing levels.
  • Contract structure. See term sheet for details.
  • Amount (max, min, average). Varies by property type.
  • Simple payback. Varies based on efficiency improvements selected.
  • Tax and balance sheet. See term sheet for details.
  • Pairing with other sources. See term sheet for details.

Process

  • When in the project process an application should be started/completed. Borrowers have up to two years to complete the improvements.
  • Level of effort required. Part of standard loan application process.
  • Length of time to receive funding. Typical timeline for multifamily financing.

Additional information

  • Advantages. Offers better pricing and more loan proceeds; will underwrite a portion of the projected energy savings.
  • Ownership types or organizations are best suited for the program. Property owners looking to acquire or refinance a multifamily property.
  • Program fit for customer. A property owner looking for better pricing and more funding to improve a property with rents at affordable and workforce housing levels.

Take action

Visit the Freddie Mac website.

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