HUD Announces Mortgage Insurance Premium Reductions for NGBS Green Certified Multifamily Buildings

Earlier this year, HUD announced that significant mortgage insurance premium (MIP) rate reductions will be available, effective April 1, 2016, for Federal Housing Administration (FHA) insured multifamily loans secured by buildings that attain NGBS Green certification. Annual MIP rates will be reduced to 25 basis points from the current rates, generally between 45 and 70 basis points, for all multifamily FHA-insured loan types that meet the following two conditions:

• First, upon application for the FHA mortgage, the building must attain NGBS Green certification, or the building owner must attest that s/he is seeking NGBS Green certification for the building.
• Second, the owner must attest that the building has achieved or will pursue a score of 75 or better on the 1-100 ENERGY STAR score using EPA’s Portfolio Manager. A score of 75 or better must be verified by a “qualified assessor” in preparing the physical condition assessment report.

The rate reductions can apply for multifamily new construction, renovation, refinance, purchase, or elderly housing. NGBS Green offers flexible and affordable certification for both new construction and renovation. If you are interested in seeking the dual benefit of lower MIP rates and NGBS Green certification, contact Home Innovation Research Labs. We are happy to help you get started.

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ABOUT: Home Innovation Research Labs, located in Upper Marlboro, Md., is a full-service research, testing, and consulting firm determined to improve the quality, durability, affordability, and environmental performance of single- and multifamily homes and home building products – in short, we aim to perfect the home. Founded in 1964 as a subsidiary of the National Association of Home Builders (NAHB), our team has been integral in solving many of our client’s most difficult product and technology issues, and helping to introduce some of the most groundbreaking innovations in construction. Through an interdisciplinary research approach – including market research, building science analysis, laboratory testing, and standards development – we help to find a home for innovation in the construction industry.

NOTE TO EDITORS ON STYLE USAGE: To identify this company and its work correctly, first reference should be "Home Innovation Research Labs." In subsequent mentions, “Home Innovation” should be used; we are not identified by an acronym. Prior to February 12, 2013, the company was known as the NAHB Research Center.