Underwriting Efficiency
Integrating energy efficient features into new multifamily housing carries additional upfront development costs, but can save building owners substantial amounts on their energy and water bills once the projects are operational. A new guide from The Community Preservation Corporation describes how mortgage lenders can help building owners incorporate efficiency measures into their projects and improve their financial performance.
Underwriting Efficiency: A Lender Handbook walks lenders through the importance of building efficiency in its first section, “Understanding Efficiency.” This section describes how energy- and water-efficient measures can benefit building owners and their residents as well as lenders.
In the second section, “Building Efficiency,” the guide walks readers through different types of efficiency projects, including simple upgrades, moderate renovations and substantial building improvements. For each type, the guide describes a sample scope of work, including estimates of cost per unit and percentage of energy savings.
The final section, “Integrating Efficiency,” lays out step-by-step how lenders can include efficiency measures in the mortgage financing process, including origination, pre-development and underwriting.