In 2016, the Federal Housing Administration’s (FHA) Office of Multifamily Housing Programs introduced a voluntary green building standards program that allowed for a reduced annual mortgage insurance premium (MIP) at the rate of 0.25 percent for properties that are committed to green building practices. The reduced MIP for industry-recognized green housing encouraged owners to adopt higher standards for construction, rehabilitation, repairs, maintenance and property operations. Owners who participate in the program are required to implement measures that result in higher energy and water efficiency, reduced operating costs and improved indoor air quality and resident comfort.
FHA recently published a Housing Notice and Mortgagee Letter to reiterate the qualifications and energy performance levels required to receive the Green MIP rate, and to clarify monitoring and reporting. There is no change to the requirements contained in the Federal Register notice from 2016.
