On May 31, FHA and Fannie Mae announced the launch of Green Refinance Plus, a joint program to provide funding for energy and water efficiency upgrades as well as other property renovations. US Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) has teamed up with Fannie Mae to share the risk of loans made in the Green Refinance Plus, an improvement of the Fannie Mae/FHA Risk-Share program.
Under the new program, borrowers will be required a “Green Physical Needs Assessment” to identify needed renovations to the property, energy efficiency measures (EEMs) and water-efficiency improvements. The Green Physical Needs Assessment or “Green PNA” essentially combines a standard Physical Needs Assessment and an Energy Audit.
Green Physical Needs Assessment Scope of Work and Qualified Provider
The Green PNA scope of work includes three main components: 1) a traditional PNA report that will also identify energy and water efficiency measures; 2) an Energy Audit that will analyze the cost and financial payback of recommended energy and water efficiency improvements and alternatives, and benchmark energy and water costs over the long term using ENERGY STAR Portfolio Manager; and 3) an Integrated Pest Management Plan Inspection including an inspection of the current pest condition at the property and an evaluation of the current pest management plan.
The Green PNA for the refinance program must be completed by a “Qualified Provider,” which is someone who is either: certified to complete energy audits by RESNET or BPI (or their training providers); a Certified Energy Manager (CEM) or state equivalent; a registered architect; a registered professional engineer; a RESNET certified Home Energy Rater; or a BPI Certified Building Analyst. There are additional qualifications for the provider, including the individual provider’s experience, quality of reports and timeliness.
More information on the Green PNA scope and qualified provider requirements can be found here.