FREDDIE MAC®
Green Advantage
Freddie Mac Green Advantage suite of offerings rewards both borrowers who improve their properties to save energy – or who already have green-certified properties and are looking for new financing. Choose Green Up or Green Up Plus. When you commit to reduce energy or water consumption by at least 25% according to a Green Assessment or a Green Assessment Plus, you may get better pricing and more funding to make these enhancements. Green Advantage works with Freddie Mac Conventional, Targeted Affordable and Seniors Housing products.
| Green Assessment |
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| Green Assessment Plus |
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| Minimum Projected Consumption Reduction |
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| Underwriting Approach |
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| Minimum Green Improvement Budget | $250 per unit. |
| Time to Complete Green Improvements | 2 years to complete. Work must commence within 180 days of loan origination. |
| Escrow Requirements | Funds for energy/water efficiency work will be escrowed at 125% of cost and released as work is completed. |
| Benchmark Requirements | Property energy and water usage must be recorded in EPA Portfolio Manager before closing and annually until 2 years after project completion. |
| Required Third-Party Reports |
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| Green Certified | Discounted loan pricing for properties – with at least one affordable rental unit – that have one of these eight industry-standard green building certifications:
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| Green Rebate | For multifamily properties with greater than 20 units, a $5,000 rebate may be available for a borrower reporting an ENERGY STAR Score; rebate will be provided at settlement after all obligations and requirements are met; there is no minimum score required to receive the rebate. |
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