Underwriting Efficiency: A mortgage lender's handbook for realizing energy and water efficiency opportunities in multifamily housing

Cost savings associated with energy and water efficiency are critical to long-term financial stability and the preservation of affordable rents. Efficient buildings not only provide a host of long-term benefits for investors, tenants, and the environment, but also cut down on fossil fuel consumption and have smaller carbon footprints.

Given the influence a lender can have on the economics and conditions of building stock, the lending industry has a unique opportunity to promote the incorporation of energy saving measures at the time of refinancing or acquisition.

The goal of this guide is to encourage more lenders to incorporate energy and water efficiency measures into the financing of first mortgages. If we are successful, the housing finance industry will play a key role in improving the financial and physical quality of the buildings and communities in which we live and work.