Apartment developers have an important resource to help them secure reduced Fannie Mae financing—the Green Building Initiative®. By certifying a new construction or existing building with GBI’s Green Globes certification system, buildings qualify for a green loan at preferential rate. In 2016, GBI helped 89 buildings receive lower financing costs by earning a Green Globes® certification.

Fannie Mae’s preferential pricing for green loans reduces the fixed interest rate of a refinance, acquisition or supplemental mortgage loan. Interest rate reductions vary based on the size and credit quality of the loan, and may change over time, but can be as high as 40 basis points.

Green Globes is based on a 1,000-point system covering seven areas of greenbuilding best practices. Buildings are certified as one, two, three or four Green Globes based on points earned. All levels of Green Globes certification qualify for inclusion in the Fannie Mae incentive program.

Ground-up, new construction projects typically start the certification progress during the construction documents stage; however, because of the flexibility of the Green Globes for new construction process, an assessment can be started preconstruction, post-construction or up to 18 months after occupancy. If a building has been occupied for 18 months, it can be certified under Green Globes for existing buildings and still qualify for the Fannie Mae pricing incentive. Visit www.thegbi.org.