FREDDIE MAC
Green Advantage®
The Freddie Mac Green Advantage® suite of offerings includes Green Up®, Green Up Plus®, Green Retrofits, Green Certified or Green Rebate. These financing programs reward borrowers who improve their properties to reduce their energy and/or water usage by 30% or those who already have green-certified properties and are looking for new financing. Green Advantage works with Freddie Mac Conventional and Targeted Affordable Housing (TAH) cash preservation products.
Green Assessment® |
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Eligible Loans |
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Green Assessment Plus® |
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Eligible Loans |
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Green Up® and Green Up Plus® |
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Minimum Projected Consumption Reduction | 30% of energy or water/sewer consumption for Consumption Reduction the whole property, with a minimum of 15% from energy based on Green Assessment. | ||
Benchmarking Data Collection | Require borrowers to engage a third-party data collection consultant prior to the origination of the loan to collect, input and monitor actual energy and water usage through the term of the loan. | ||
Required Third-Party Reports |
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Green Retrofit |
This feature is for deeply affordable properties with energy- and/or water-efficiency improvements already made within the current calendar year or the preceding previous two calendar years from when the borrower completes |
Form 1209: Green Retrofits Certification. | ||
Eligible Loans | Conventional and TAH cash preservation (excludes SBL, Seniors, Student MHCs and supplementals) | |
Terms | 10-year fixed | |
Requirements | Affordability Test required — eligible properties need to have at least 20% of units affordable at 60% AMI | |
DCR/LTV | Must meet policy compliant DCR/LTV; no adjustment | |
Time to Complete Green Improvements | Two years | |
Escrow Requirements | Funds for energy/water efficiency work will be escrowed at 125% of cost and released as work is completed. |
Green Certified |
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Eligible Loans | Discounted loan pricing for 10-year fixed-rate loans if at least 40% of the property’s units are affordable at workforce housing levels.
They must have an industry-standard green building certification:
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Green Rebate |
If your borrower does not choose any of the above Green Advantage® options, a $5,000 rebate may be available for a borrower reporting an EPA ENERGY STAR® score. |
Commercial Property Assessed Clean Energy (C-PACE) Financing Consent |
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