What’s New with Fannie Mae Green Financing and What It Means for Multifamily Properties

Sustainability continues to play an increasing role in multifamily real estate financing, and Fannie Mae’s recent updates to its Green Financing programs reflect that shift.

For owners, developers, and lenders, these programs offer a meaningful opportunity to access preferred loan terms while improving building performance. At the same time, navigating the available options requires a clear understanding of how energy strategy, capital planning, and financing goals intersect.

A Continued Focus on Performance and Incentives

Fannie Mae’s Green Financing programs emphasize measurable energy and water savings, rewarding projects that commit to improving operational performance.

Among these, the Green Rewards program remains one of the most widely utilized pathways. It allows borrowers to access financing incentives by implementing efficiency improvements that deliver tangible cost savings over time.

This approach reflects a broader shift in the market. Financing is no longer just about the asset as-is. It is increasingly tied to how that asset can perform in the future.

Understanding the Two Primary Pathways

Fannie Mae offers two primary pathways for green financing, each aligned with a different type of project:

1. Green Building Certifications (For Properties That Are Already “Green”)
Properties that have already achieved, or are planning to achieve, an eligible green building certification may qualify for Green Financing through this pathway.

2. Green Rewards (For Properties Planning Improvements)
Properties that are not yet “green” can still qualify by committing to energy and water efficiency improvements. Progress—not current status—is what matters.

This distinction is important. Many multifamily properties may not meet certification standards today but can still access incentives through a structured improvement plan.

What’s New: Expanded Certification Options

Fannie Mae has updated its list of eligible green building certifications that can qualify for Green Mortgage Loans.

While certifications can play an important role for certain projects, they are often just one piece of a broader strategy. For many properties, pursuing a certification begins with understanding current performance and identifying opportunities for improvement.

In many cases, that process starts with an ASHRAE Level 2 energy audit, unless the property was already designed or recently renovated to meet an eligible green standard.

Where Strategy Matters Most

While the incentives are compelling, successfully qualifying for these programs requires more than good intentions. Projects often face challenges such as:

• Identifying which improvements will meet required savings thresholds
• Establishing credible, supportable energy savings projections
• Aligning capital improvement plans with financing timelines
• Navigating documentation and reporting requirements

Without a clear strategy early in the process, these challenges can delay projects or limit access to available incentives.

The Role of Energy Audits in Green Financing

A key starting point for many projects is an ASHRAE Level 2 energy audit, which provides a detailed evaluation of a building’s current performance and identifies opportunities for improvement.

These audits are often central to:

• Supporting Fannie Mae’s Green Rewards program
• Developing a High Performance Building (HPB) Report
• Prioritizing upgrades that balance cost, impact, and return on investment

By grounding decisions in data, project teams can move forward with confidence and align improvements with both financial and operational goals.

How Hillmann Supports the Process

Hillmann’s Energy Consulting division supports clients through the technical and strategic aspects of green financing initiatives.

Our team provides:

• ASHRAE Level 2 energy audits to identify and quantify improvement opportunities
• Benchmarking and performance analysis to support program compliance
• Retro-commissioning (RCx) and optimization strategies to enhance building efficiency
• Guidance through Fannie Mae program requirements, including Green Rewards and HPB documentation

Hillmann Energy (formerly Abraxas Energy) is also one of a limited number of pre-qualified consultants approved to support Fannie Mae’s program requirements.

Moving Forward with Clarity

As green financing programs continue to evolve, early planning and the right advisory support can make a significant difference. Hillmann works with clients to align energy strategy with financing goals, helping teams identify the right path forward, reduce risk, and unlock long-term value.

If you are evaluating a multifamily property or planning capital improvements, Hillmann can help you assess your options and align your energy strategy with Fannie Mae’s Green Financing programs.

Contact our team to start the conversation.