Green Property Wins With Fannie Mae Tax Break
Digested from "Fannie Mae Closes First Multifamily Deal to Benefit from its Green Building Certification Pricing Break"
The Station House in Maplewood, N.J., became the first property to qualify for Fannie Mae's Multifamily Green Building Certification Pricing Break during an April acquisition by Prudential Real Estate Investors. Fannie Mae instituted the policy in February for multifamily properties that have achieved one of nine green building certificates.
The 50-unit community, constructed on an old police station lot, earned a U.S. Green Building Council (USGBC) Leadership in Energy and Environmental Design (LEED) certification through efficient water management, use of recycled materials and green power. The Fannie Mae tax break will save its owners more than $100,000 over the lifetime of the loan.
Other qualifying programs include the U.S. Environmental Protection Agency's ENERGY STAR(r) for multifamily certification and Home Innovation's National Green Building Standard. Such loans will be marked as green mortgage-backed securities to signify the commitment to environmental stewardship.