USGBC supports HUD green building financing
Photo courtesy of USGBC
The U.S. Green Building Council (USGBC) has voiced its support of changes to mortgage insurance premiums (MIPs) recently proposed by the Department of Housing and Urban Development (HUD) for several Federal Housing Administration (FHA) multifamily mortgage insurance programs.
Specifically, LEED-certified projects with qualifying multifamily FHA-insured loans, including refinancing, that are originated on April 1, 2016, or later, will benefit from reduced upfront and annual MIP rates, according to the USGBC. For new or renovated LEED-certified multifamily properties, annual MIP rates will drop from between 45 and 70 basis points to 25. This reduction, USGBC officials say, sends a positive market signal to invest in higher construction, rehabilitation and maintenance and operations standards that are more energy-efficient and sustainable than traditional building practices.
By rewarding LEED, HUD recognizes the value third-party validation has in producing projects with greater energy and water efficiency, reduced operating costs, improved indoor air quality and reduced overall impact on the environment, which align with HUD’s mission to preserve affordable housing.
The changes recognize LEED’s value in protecting taxpayer and FHA-backed loans by ensuring lendees follow through on green building commitments, according to the USGBC.
Topics: Associations / Organizations, Certifications, Consulting - Green & Sustainable Strategies and Solutions, Incentives - Rebates / Tax Credits / Other, Multifamily / Multiunit Residential, Sustainable Communities, Urban Planning and Design, USGBC