Underwriting Efficiency Handbook

A mortgage lender’s handbook for realizing energy and water efficiency opportunities in multifamily housing

At every transaction, mortgage lenders have an opportunity to talk to building owners about improving building efficiency. By realizing the benefits of efficiency on loan performance and incentivizing owners to pursue efficiency, lenders encourage investments that will strengthen cash flow, improve property value, and lower the risk of delinquency. This easy-to-read handbook will help decision-makers understand the benefits of sustainability, and how to positively impact the multifamily housing stock.

The Benefits of Higher NOI

Efficiency reduces utility bills, maintenance costs, and vacancy, thereby increasing NOI and value. Underwriting a portion of projected energy savings supports additional private loan proceeds to finance improvements while reducing the need for public subsidy dollars. Efficiency savings beyond conservative underwriting create additional, ongoing cash flow to the borrower.

Learn More: Complete Handbook

This handbook provides professionals involved in the origination, underwriting, closing, and servicing of multifamily mortgages with the necessary tools to finance energy and water efficiency measures as part of a first mortgage.