Freddie Mac has approved GRS | Corteq as a preferred provider for its popular Multifamily Green Advantage program deliverables.
Under the Freddie Mac Green programs, if a borrower has a property where they are planning energy-saving improvements for either an acquisition or refinance they can save on financing in a few ways. The Freddie Green Advantage Program works in conjunction with the current Freddie Mac Conventional, Targeted Affordable and Seniors Housing products.
The Freddie program for green mortgage loans essentially runs on two tracks – Green UpSM, or Green Up PlusSM. Under the programs, borrowers must qualify for, and commit to implement, property changes geared toward reducing EITHER energy or water consumption by a minimum of 15% property wide. Borrowers who qualify have the ability to choose the upgrades they want to implement to meet both the 15% energy/water savings threshold while also spending a minimum dollar amount per unit (currently $350/unit). If the property is eligible for the program, and the property/borrower is able to meet these thresholds, the borrower may qualify better pricing and more funding to make the green enhancements.
The Freddie Green Up program is the base program for Green financing that borrowers can consider. Borrowers must order a Green AssessmentSM, a property energy and water analysis, which outlines for borrowers how they can save energy and water by making property specific improvements. Under this program, Freddie Mac will reimburse up to $3,500 of the cost of the report when the borrower closes a Green Up rewards loan. Additionally, borrowers can qualify for more funds because Freddie Mac will underwrite up to 50% of projected energy savings.
Alternatively, borrowers can order a higher-level assessment under the Green Assessment PlusSM program. This Assessment is a highly detailed property analysis based on an ASHRAE level 2 energy audit. Green Up PlusSM borrowers also must commit to making improvements based on the findings in the Green Assessment Plus report and must meet the same minimum energy or water consumption savings of 15%. Borrowers under this program receive better pricing and Freddie Mac still reimburses up to $3,500 of the cost of the report at closing.
WHAT IS REQUIRED TO PERFORM THE ASSESSMENT
GRS | Corteq has a team of national, qualified professionals ready to help deliver the assessments needed for the Green Advantage program. The main additional requirements are:
– Added onsite inspection time. The Green assessments, in most cases, are performed concurrently with the Property Condition Assessment inspection. In addition to the data collected for the PCA, the inspectors need to inventory typical existing energy and water systems and equipment to understand equipment type/model, age, efficiency and condition (including manufacturer/models, flow rates, BTUs, and more).
– 12 months of records of water and energy consumption paid for by the property owner and 12 months of records of water and energy consumption for all units if paid by the property owner and, when available, if paid for by the tenants. The records are requested to be delivered in an Excel or CSV format for accuracy and timeliness in providing the Green Assessment report. Accessing water and energy usage and costs can cause minor difficulty for the property. GRS has experience with this issue – it is possible to get the data needed. We are here to answer questions and can help with this common concern.)
The approval for Freddie Mac is effective immediately and GRS | Corteq has already delivered multiple Green Assessments under this popular green program with more in process. Please don’t hesitate to contact me with questions about the program or to request a quote.
About GRS Group
GRS Group is a leading provider of commercial real estate (“CRE”) services worldwide. With offices across the United States, Europe, and affiliates around the globe, GRS Group provides local market knowledge with global perspective for institutional real estate investors, occupiers and lenders worldwide. The GRS Group team has evaluated and advised on over $1 trillion in CRE transactions.
Through the company’s proprietary management process, Global Services Connection, GRS Group delivers an integrated suite of services including Financial Advisory, Transaction Management, Assessment and Title Insurance. We provide a single point of contact, capable of leveraging the GRS Group portfolio of companies, and delivering customized solutions to assist our clients in achieving their investment goals.