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November 18, 2019

Green Goes Full Force — for Workforce

Peter Giles
Article By
Peter Giles, Vice President, Production & Sales
FHFA’s recently released scorecard includes a provision that at least 37.5% of our business must be “mission-driven.“ This covers what we used to call uncapped, with one exception — Green Advantage® loans are now excluded.

Though no longer considered mission-driven on the FHFA scorecard, we remain fully committed to the continued success of the Green Advantage program and its ability to create energy savings for renters and property owners and help the environment.

So, we’ve fine-tuned our Green Advantage program to focus solely on workforce housing — to make the strongest impact. To qualify for a Green Advantage loan, half the units of a property need to be affordable at workforce housing levels, using market-dependent area median income (AMI). Here are the details:

  • At least 50% of units must be affordable at incomes from 80% to 150% of AMI, based on the market. This is now reflected in our Affordability Test, which should also be used to determine qualification. The AMI levels are up to and including:
    • 80% AMI in standard markets
    • 100% AMI in cost-burdened markets
    • 120% AMI in very cost-burdened markets
    • 150% AMI in extremely cost-burdened markets
  • Loans must be fixed rate, with a 7- or 10-year term
  • We will reimburse the cost of the Green Assessment® or Green Assessment Plus® up to $4,000, when Freddie Mac acquires the loan

All other existing program requirements still apply. If you have any questions, please contact your Freddie Mac Relationship Manager.

Already Green? We give discounted loan pricing if the loan qualifies for Green Advantage under the new guidelines and has one of eight industry-standard green building certifications.

Additional detail is provided on the Green Advantage term sheet.

Please note: Green Advantage is not applicable to our Small Balance Loan program.

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