The March 31st, 2024, deadline for Green MIP benchmarking is fast approaching. EBI is here to assist during each step of the process. Here’s what you need to know about it and how EBI can help:
What is the Green MIP Program?
Designed exclusively for multifamily housing providers, the Green MIP program offers reduced mortgage insurance premiums (MIP) to properties that adhere to the guidelines set forth in Chapter 6 of the Multifamily Accelerated Program (MAP) Guide. To qualify, properties must obtain a recognized Green Certification, initially secure an Energy Star for Existing Buildings Certification, possibly make improvements to the property, and commit to maintaining a Statement of Energy Performance score of 75 or higher throughout the loan's duration.
What do you report?
Properties must report calendar year data (January 1 – December 31) for the property to HUD no later than March 31st, of each year. For the current year, this would be utility data for January 1 – December 31, 2023 due to HUD no later than March 31, 2024.
How do you report?
An independent Qualified Energy Professional (as defined by the MAP guide) is required to create a Statement of Energy Performance (SEP) for the property using ENERGY STAR's Portfolio Manager. This SEP should be submitted to HUD through ENERGY STAR's online submission system. To generate the SEP, the property must provide aggregate data for the entire property for the previous calendar year.
Why is reporting your Green MIP requirements important?
Properties that do not submit the required documentation are at risk of receiving a REAC flag. This flag can prevent them from refinancing the property, whether it's for general HUD refinancing or Green MIP refinancing. Furthermore, at their discretion, HUD may choose to withhold surplus cash from distributions if non-compliance is not promptly resolved. Finally, failing to report may render borrowers ineligible for both current and future refinancing opportunities through HUD. This can have an impact on borrowers who own individual properties or are part of a portfolio.
How can EBI help?
Our team can assist in efficient and accurate reporting.
Licensed engineers ready to help: HUD has ongoing performance monitoring requirements that must be signed off by a Qualified Energy Professional (usually a Professional Engineer, Registered Architect, or Certified Energy Manager) on an annual basis to verify that the property continues to score a 75 or higher. This is a mandatory requirement and EBI has Professional Engineers and other Qualified Energy Professionals who are ready to assist in completing this requirement.
Obtaining HUD approved green certifications: If a property ever wants to refinance with HUD, it must commit to achieving a HUD recognized Green Certification and have a current ENERGY STAR for Existing Buildings Certification at the time of Firm Application. EBI’s team can assist properties in obtaining HUD approved green certifications as we have certified dozens of properties through HUD recognized programs and hundreds of properties through the ENERGY STAR program.
Have a question about the March 31st deadline? Reach out to: