Fannie Mae Supports Lower Income Housing with Green Initiatives
The housing market and the environment are both big hot-button items in today’s political climate, and Fannie Mae is taking steps to address both in one sweeping action. With the help of the US Department of Housing and Urban Development’s Federal Housing Administration, the mortgage giant recently announced an effort aimed at increasing the availability of affordable housing to low-income families through the use of greener, more efficient housing units.
For a while now, Fannie Mae has been issuing millions of dollars through the Fannie Mae Multifamily Green Initiative. This program was designed to provide affordable multifamily housing with utilities designed for enhanced energy and water efficiency. The aim here is to decrease the utility costs of running such properties, thereby increasing the affordability of the homes for low-income renters.
This program is being enhanced with what is being called Green Preservation Plus. Under this new program, Fannie Mae will offer financing to property owners who want to acquire a mortgage loan or refinance an existing mortgage loan for multifamily properties aimed at low-income renters. The program gives borrowers lower debt service and an increased loan-to-value ratio, thereby providing them with the funds they need to rehabilitate or improve the property with energy and water efficient fixtures.
According to FHA Commissioner Carol Galante, “The Federal Housing Administration is committed to providing multifamily affordable housing property owners with the necessary financing tools to help implement energy efficiency improvements that will help the owners and tenants save energy and save money.”
