Green Rewards is Fannie Mae 's incentive program for multifamily loans on properties that commit to 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. Benefits include 10 to 35 basis points of pricing improvement and additional loan proceeds for qualifying capital improvements.
What does the program require?
An ASHRAE Level 2 high-performance building report identifying improvements that achieve the energy and water savings threshold. Fannie uses a 12-month completion period. Freddie Utility Efficiency, renamed from Green Up in December 2025, generally allows two years. The borrower commits to ENERGY STAR scoring annually thereafter. Fannie pays for a portion of the high-performance report.
Where do the additional proceeds come from?
Underwriting credit for projected utility savings flows directly into NOI and increases sized proceeds. Combined with the pricing improvement, total economic benefit on a $25 million loan often exceeds $300,000 to $600,000 over the loan term.
Sources
- Delegated Underwriting and Servicing (DUS) program disclosures · Fannie Mae · current