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Fannie Mae and Freddie Mac Incentives

With an increasing mission to embrace sustainability in housing, funding for going green has become more popular.

The Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) both incentivize property owners to invest in green property improvements. By implementing eConserve’s Retrofit Service and Toilet Replacement Service, property owners are eligible to participate in both programs. Not only will you benefit from monthly water savings, but you’ll be able to save money on the cost of the retrofit service in the first place.

Fannie Mae

For those that participate in energy and water retrofits, Fannie Mae gives you access to low interest rates and loans. Their Multifamily Green Financing programs offers loans for apartments that make their building more energy or water efficient. Their most popular program, Green Rewards, will underwrite “75% of the owner and 25% of the tenant projected energy and water savings.” For the full list of Green Rewards benefits and terms click here.

Freddie Mac

Green Advantage programs like Green Up and Green Up Plus, are similar offerings to Fannie Mae’s Green Rewards. Freddie Mac offers up to 50% or 75% underwriting for projected energy savings when you commit to reducing energy and water consumption. For a full list of Green programs benefits and terms click here.

There's sunSunlight is peaking through tree branches infront of an apartment building. This is a photo for a blog post for eConserve a water conservation company

The Process

To meet Federal Housing Finance Agency (FHFA) eligibility requirements for both Fannie Mae and Freddie Mac programs, property improvements have to reduce consumption by 30%, with a minimum of 15% in energy projects and the remainder in water projects. Buildings that are built before the year 2000 and those that have dated appliances, are typically good candidates. There are added discounts for affordable housing with green building certifications for both Fannie Mae and Freddie Mac.

Usually a consultant will analyze the utility bills and do a property inspection to determine a couple projects for the property owner to choose from. An energy audit will establish a consumption baseline, quantify energy usage, and compare consumption with a benchmark to identify opportunities for improvement. Fannie Mae’s program will pay for a ASHRAE Level 2 energy audit, and Freddie Mac will pay up to $3,500 for the same audit. The ASHRAE Level 2 audit includes an analysis of historical utility bills, a detailed financial analysis of proposed projects, and a walk-through of the facility.


Proposed energy projects can include switching to energy efficient appliances, using solar energy, enhancing insulation, and/or changing to LED lighting. Water conservation projects can include installing low flow faucet aerators and showerheads, and efficient toilets. eConserve’s Retrofit Services and Toilet Replacement Service both are great programs to help qualify your property for Green Rewards or Green Up (Plus).

The fact that there are options for green financing further supports how influential the green revolution has become. As the barrier to fund water conservation projects is reduced, we hope more multifamily properties choose to conserve water and bring value to their property.

Get Started

By committing to energy & water efficiency capital improvements on your multifamily properties, you can receive an array of benefits including: preferential pricing, reduced interest rates, and additional loan proceeds. Ask your broker about the eligibility requirements for both programs and eConserve can make sure you are in compliance. Consider us your Green Rewards Specialists.

eConserve is a multifamily water conservation company based in Houston, TX. We service properties all over the nation to help save water, reduce expenses, and add property value.

Contact us today ( or call 713-662-3220) for a free water conservation analysis to see if your multifamily property is eligible.


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