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Download Term Sheet
FREDDIE MAC OPTIGO®
Green Advantage®
We make it easy to be green. When you commit to reducing energy or water (by at least 30 percent, with a minimum 15 percent from energy) at a property with rents affordable at workforce housing levels, you can get better pricing and more funding to make these improvements.
Is your property already green certified? Then you may be eligible to get rewarded.
BETTER PRICING. MORE PROCEEDS. ENERGY SAVINGS. WORKFORCE FOCUSED.
Green Up®
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ELIGIBLE PROPERTIES/LOANS
- 5-, 7-, and 10-year fixed-rate.
- Properties must have at least 50% of the rents affordable at workforce housing levels based on the market.Green Up and Green Up Plus loans 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.
– 80% AMI in standard markets.
– 100% AMI in cost-burdened renter markets.
– 120% AMI in very cost-burdened renter markets.
– 150% AMI in extremely cost-burdened renter markets.
Please see the Affordability Test.
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MINIMUM PROJECTED CONSUMPTION REDUCTION
30% of energy or water/sewer consumption for the whole property, with a minimum of 15% from energy, based on Green Assessment.
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UNDERWRITING APPROACH
Recognize 50% of projected owner-paid energy and/or water/sewer savings based on Green Assessment.
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LOAN PROCEEDS/SIZING
- Debt Coverage Ratio (DCR): -0.05x of policy-compliant DCR. Subject to lesser of 1.20x or program/product limit.
- Loan-to-Value (LTV) ratio: +5.0% of policy-compliant LTV. Subject to greater of 85% or program/product limit.
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AS-IS DCR/LTV
- DCR: -0.05x of policy compliant DCR.
- Subject to lessor of 1.20x or product limit.
- LTV: +5.0% of policy compliant LTV.
Subject to greater of 85% or product limit.
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AS-IMPROVED DCR/LTV (if applicable)
- Must meet policy compliant DCR/LTV; no adjustments.
- Based on As-Improved NOI and As-Improved appraised value.
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TIME TO COMPLETE GREEN IMPROVEMENTS
2 years to complete.
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ESCROW REQUIREMENTS
Funds for energy/water efficiency work will be escrowed at 125% of cost and released as work is completed.
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REQUIRED THIRD-PARTY REPORTS
Green Assessment.
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BENCHMARKING DATA COLLECTION
Green Up and Green Up Plus loans 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.
Green Up Plus®
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ELIGIBLE PROPERTIES/LOANS
- 7- and 10-year fixed-rate.
- Properties must have at least 50% of the rents affordable at workforce housing levels based on the market.Green Up and Green Up Plus loans 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.
– 80% AMI in standard markets.
– 100% AMI in cost-burdened renter markets.
– 120% AMI in very cost-burdened renter markets.
– 150% AMI in extremely cost-burdened renter markets.
Please see the Affordability Test.
-
MINIMUM PROJECTED CONSUMPTION REDUCTION
30% of energy or water/sewer consumption for the whole property, with a minimum of 15% from energy, based on Green Assessment Plus.
-
UNDERWRITING APPROACH
Recognize 75% of projected owner-paid energy and/or water/sewer savings based on Green Assessment Plus.
-
LOAN PROCEEDS/SIZING
- Debt Coverage Ratio (DCR): -0.05x of policy-compliant DCR. Subject to lesser of 1.20x or program/product limit.
- Loan-to-Value (LTV) ratio: +5.0% of policy-compliant LTV. Subject to greater of 85% or program/product limit.
-
AS-IS DCR/LTV
- DCR: -0.05x of policy compliant DCR.
- Subject to lessor of 1.20x or product limit.
- LTV: +5.0% of policy compliant LTV.
Subject to greater of 85% or product limit.
-
AS-IMPROVED DCR/LTV (if applicable)
- Must meet policy compliant DCR/LTV; no adjustments.
- Based on As-Improved NOI and As-Improved appraised value.
-
TIME TO COMPLETE GREEN IMPROVEMENTS
2 years to complete.
-
ESCROW REQUIREMENTS
Funds for energy/water efficiency work will be escrowed at 125% of cost and released as work is completed.
-
REQUIRED THIRD-PARTY REPORTS
Green Assessment Plus.
-
BENCHMARKING DATA COLLECTION
Green Up and Green Up Plus loans 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.
Already Green?
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GREEN CERTIFIED
We give discounted loan pricing for properties with any of the following nine industry-standard green building certifications.
- EarthCraft, Greater Atlanta Home Builders Association & South Face
- ENERGYSTAR® for Multifamily Existing Buildings, High Rise, New Construction, EPA
- Green Communities, Enterprise Community Partners
- Green Globes, Green Building Initiative
- GreenPoint Rated, Build It Green
- Leadership in Energy and Environmental Design (LEED), US Green Building Council
- National Green Building Standard (NGBS), Home Innovation Research Labs
- Passive House Institute US (PHIUS) Certified
- Passive House Institute (PHI) Certified
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GREEN REBATE
If your borrower doesn’t choose any of the above Green Advantage options, make sure they know they can receive $5000 from Freddie Mac for delivering an EPA ENERGY STAR Score®.
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C-PACE
Freddie Mac Multifamily can grant consent for Commercial PACE financing from qualifying Commercial PACE programs on loans in our retained portfolio. Additional requirements apply. Optigo Seller/Servicers should speak with a Freddie Mac representative for details.
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GREEN RETROFIT
For deeply affordable properties that have already had energy and/or water efficiency improvements made within the curent calendar year or the 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).
- 10-year fixed.
- Affordabilty Test required – eligible properties need to have at least 20% of units affordable at 60% AMI.
In its prequalifying review, Lument will attempt to estimate both the loan amount and the fees and costs associated with the transaction. Actual loan amounts and actual fees and expenses may vary from the prequalifying estimates. A prequalifying estimate is not a commitment to make a loan.