Tax and Utility Incentives
Often there are local, state, or federal incentives in place to encourage developers to build or renovate high performance and green buildings. These can come in the form of utility rate reductions, utility incentives, tax credits, financing or mortgage insurance rates. Many of these are market specific and not uniform across our service area. As part of our onboarding process we’ll analyze which (if any) are applicable and map out the best path for the project team to capitalize on them.
Duke Energy Progress Residential New Construction Program (Formerly known as the HERO Program): With rebates starting at $250 per dwelling unit Duke Energy Progress has made it easier than ever to build energy efficient homes and apartments and offers incentives to do so. Let us help you discover how you can take advantage of these incentives for your next project in North Carolina or South Carolina.
HUD Mortgage Insurance Premium: HUD offers a mortgage insurance premium (MIP) rate reduction will for Federal Housing Administration (FHA) insured multifamily loans secured by buildings that meet the requirements and attain a green certification. The rate reductions can apply for multifamily new construction, renovation, refinance, purchase, or elderly housing. Annual MIP rates will be reduced to 25 basis points from the current rates, generally between 45 and 70 basis points, for all multifamily FHA-insured loan types that meet the following two conditions:
- Upon application for the FHA mortgage, the building must attain green certification, or the building owner must attest that they are seeking green program certification for the building.
- The owner must attest that the building has achieved or will pursue a score of 75 or better on the 1-100 ENERGY STAR score using EPA’s Portfolio Manager. A score of 75 or better must be verified by a “qualified assessor” in preparing the physical condition assessment report.
Fannie Mae Multifamily Green Financing: Fannie Mae’s suite of green financing solutions includes options for acquisition, refinance, and supplemental financing. Green financing solutions create a “triple bottom line” by supporting increased cash flows, better quality housing, and reduced energy and water usage. Incentives include:
- 10 bps off any loan for properties with a Green Building Certification
- 10 bps off Green Rewards loans
- 10 bps off Green Preservation Plus loans Up to 5% more in loan proceeds for Green Rewards and Green Preservation Plus loans
Southern Energy Management’s team can help you navigate and achieve these financial incentives. Contact us today to get started.