The March 31st 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?
Created specifically for multifamily housing providers, the Green MIP program awards reduced mortgage insurance premiums (MIP) to properties in compliance with Chapter 6 of the Multifamily Accelerated Program (MAP) Guide Properties must meet achieve a recognized Green Certification, initially obtain an Energy Star for Existing Buildings Certification, potentially make upgrades to the property, and agree to provide a Statement of Energy Performance showing a score of 75 or higher for the life of the loan.
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 – December31, 2022 due to HUD no later than March 31, 2023.
How do you report?
An independent Qualified Energy Professional (as defined by the MAP guide) must generate a Statement of Energy Performance (SEP) for the property utilizing ENERGY STAR’s Portfolio Manager. This SEP, along with the HUD Custom SEP excel file, is submitted to the corresponding HUD Asset Management account that the property is assigned to. To generate this SEP, the property must provide whole property aggregate data for the previous calendar year.
Why is reporting your Green MIP requirements important?
Properties who fail to submit the necessary requirements are at risk of being tagged with a REAC flag which bars them from refinancing the property (both for general HUD refinancing and Green MIP refinancing). Additionally, the borrowers for the loan may become ineligible for current and future refinancing opportunities through HUD, affecting borrowers who own or are part of a portfolio of properties.
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 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:
Jesse Pasco, Senior Program Director
Philip Winterland, P.E., Energy & Sustainability Group Manager