RunBrook can help you choose which green rating system is appropriate for your project, keeping the goal of obtaining the MIP discount in mind, and can run energy models required in connection with the FHA MIP reduction program. In addition, RunBrook can help you collect and report required utility data through RunBrook's proprietary service, which makes it easy for you to obtain and provide detailed information regarding your project's energy and water use.
Multifamily properties that are green certified, meet a specific energy-efficiency target, and meet ongoing operational energy efficiency targets may obtain mortgage insurance premium (MIP) discounts. The discounts apply to projects with FHA commitments issued or reissued, and closed on or after April 1, 2016. In addition, the program applies to market rate and affordable projects, including new construction, gut rehab, substantial renovation, and moderate renovation projects.
Green building certification systems accepted depend on the type of project. For new construction, projects can obtain a wide variety of certifications, including LEED, National Green Building Standard (NGBS), and Energy Star. In addition to obtaining a green building certification, a project must meet a minimum score of 75 in Energy Star's Portfolio Manager. To determine whether the project will meet this requirement, an energy model must be developed. Data from the energy model is used as inputs to Portolio Manager to demonstrate compliance.
After the building is completed and occupied, you must enter actual energy-use data into Portfolio Manager and report the results annually to HUD for review.
Over the typical 7-12 year loan life, the discount can amount to hundreds of thousands of dollars in savings. This can significantly improve cash flow for building owners, as well as increase the value of a property when it is sold, as the discount can apply to future funding.
RunBrook can help you choose which green rating system is appropriate for your project, keeping your goal of obtaining the MIP discount in mind. To learn more about RunBrook's green building certification services, please click here.
RunBrook has experience running energy models for multifamily developments, in connection with the FHA MIP reduction program and in other contexts. As noted above, an energy model will be required to show that the project is expected to meet a minimum score of 75 in Portfolio Manager to qualify for a MIP discount.
In addition to expertise with green building certification and energy modeling for multifamily projects, RunBrook has developed a proprietary service to collect and report required utility data, and provide detailed information regarding a multifamily project's energy and water use. This means that you do not need to find another vendor to handle utility data monitoring and reporting once the building is completed. To learn more about RunBrook's utility monitoring service, please click here.