Columbia, Md.-based Enterprise Community Investment Inc. has closed the first loan under the Green Refinance Plus program, a partnership between Fannie Mae and the U.S. Department of Housing and Urban Development (HUD) introduced last year to incentivize energy – and resource-efficiency improvements in affordable housing.
The $19.4 million refinance loan to LINC Housing Corp. for City Gardens in Santa Ana, Calif., provides $1.5 million for property improvements, including replacing old andÂ inefficient gas-fired furnaces with ENERGY STAR-rated furnaces and installing low-flow plumbing fixtures, energy efficient lighting in units and common areas, and a passive solar domestic hot water heating system. The 274-unit affordable housing development primarily serves families with children in one of the nation's most expensive housing markets.
Enterprise Community Investment will oversee the renovations and service the loan, which it originated and underwrote.
‘Through innovative financial products as part of our vision to green all affordable housing by 2020, Enterprise is bringing the health, economic, and environmental benefits of green building and preservation to communities nationwide,’ says Lamar Seats, senior vice president of multifamily mortgage finance at Enterprise Community Investment. ‘The Green Refinance Plus program provides owners of affordable housing a new refinancing opportunity that empowers them to make energy improvements and other needed renovations that reduce operating costs, improve air quality for residents, and protect the environment at the same time.’