Fannie Green Rewards and Freddie Utility Efficiency, renamed from Green Up in December 2025, offer 10 to 35 basis points of pricing improvement plus modest proceeds uplift for multifamily projects that meet the combined energy and water savings test. The improvement scales with the depth of the savings and the certifications obtained at closing .
What thresholds qualify?
Both Fannie Green Rewards and Freddie Utility Efficiency require a projected whole-property reduction of at least 30% in combined energy and water consumption, of which at least 15% must be energy savings. A 15% water-only scope fails. Fannie uses a 12-month completion period. Freddie generally allows two years. Some programs also pay for the audit through additional loan proceeds.
Is the discount worth pursuing?
On a $25 million loan, a 25 basis point pricing improvement is roughly $62,500 per year. Audit and improvement costs of $50,000 to 150,000 typically pay back inside 18 to 30 months, and the operational savings from reduced utility cost stack on top. The economics are usually favorable on stabilized assets above 100 units.
Sources
- Delegated Underwriting and Servicing (DUS) program disclosures · Fannie Mae · current
- Optigo lending program disclosures · Freddie Mac Multifamily · current