More and more investors are demanding Property Needs Assessments (PNAs) and energy audits as part of their loan underwriting when purchasing and refinancing multifamily properties, especially aging ones. PNAs aim to analyze the condition of the property, looking at HVAC systems, water systems, appliances, and overall building envelope performance.

Fannie and Freddie have both had green building incentives, such as Green Rewards, Green Preservation Plus, Green Rebate and the HUD Green Physical Needs Assessment, but are now adding this new Green program for multifamily properties.

In short, people want to know what they are getting into. And they want to know what payback analyses and incentives are available for upgrading to energy-efficient products and systems.

The View from Here is that the more investors and property owners demand these types of insights and incentives, the more demand we’ll see for energy-efficient products in the multifamily market. As I have said many times, these types of renovations improve tenant retention and lease rate – helping to drive renovations in this segment, including window replacement.

What’s your View? Email me directly at Eric.Jackson@Quanex.com.

 

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