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Green Building News

Green Buildings Get a Loan Break

Fannie Mae says that multifamily projects certified by USGBC or other green building programs will get a loan discount worth thousands of dollars

LEED-certified multifamily buildings are among those qualifying for a lower interest rate from Fannie Mae.
Image Credit: USGBC

Fannie Mae, the largest provider of financing for multifamily projects in the country, says that it has started giving loan discounts on properties with a green-building certification.

The announcement came from the U.S. Green Building Council, which administers the well-known LEED program. But the loan break also applies to projects that qualify for Energy Star status as well as those certified under the Enterprise Green Communities Criteria.

The discount equals 10 basis points, or one-tenth of 1 percent on the loan. In the example USGBC cited, a 4 percent market rate loan would drop to 3.9 percent. If that sounds like small potatoes, interest savings on a $10 million loan amortizing over 30 years would be $95,000 over a 10-year period, according to the USGBC.

Jeffery Hayward, executive vice president for multifamily with Fannie Mae, said that green certification offers three advantages: lower operating costs for owners and tenants, the social benefits of providing quality housing for renters, and environmental benefits that help everyone.

Fannie Mae has more details about its ongoing Green Initiative at its website.


  1. kevin_in_denver | | #1

    Tiny Taters
    "If that sounds like small potatoes," it's because it is. No way would it be worth chasing the paperwork, and it saves a lot less than the certification costs.


  2. STEPHEN SHEEHY | | #2

    But Kevin
    It may be only $95,000 on your $10 million loan, but if you borrow $100 million, it starts to add up to real money. With $950,000 you could buy a Lamborghini for yourself and one for me. And a Leaf for Scott.

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