Greystone Provides $33.2M in FHA-Insured Financing for Virginia Beach Development
August 30, 2016
Deal Marks Greystone’s First HUD 221d4 Loan with Green MIP Reduction Based on 2016 MAP Guide
Greystone announced that it has provided $33,250,000 in FHA-insured financing for the construction of The Choices at Holland Windsor, a multifamily development project in Virginia Beach, VA. The loan was originated by Donny Rosenberg, and is Greystone’s first new construction transaction to utilize HUD’s 2016 MAP Guide standards for a lower Mortgage Insurance Premium (MIP) threshold based on Green and Energy Efficiency Multifamily Housing requirements.
The Choices at Holland Windsor will consist of 252 residential market rate units spread across seven buildings in the Holland Road / Windsor Oaks intersection of Virginia Beach. To qualify for the Green and Energy Efficiency Housing MIP reduction, a real estate project must produce a Statement of Energy Design Intent (SEDI) score of 75 or higher. The Choices at Holland Windsor produces a SEDI energy score of 89, and the project’s design satisfies EarthCraft Multifamily Certification, a green standard recognized by HUD.
Features of the new construction that contribute to meeting these green standards include advanced framing techniques with insulated corners; ENERGYSTAR appliances; advanced interior and exterior LED lighting; and construction materials made from recycled content, among others.
“While the loan process for The Choices at Holland Windsor was well underway when HUD released the 2016 MAP Guide, the borrower was able to take advantage of the reduced MIP before closing,” said Phiet Nguyen, Deputy Chief FHA Underwriter and head of the 221d4 underwriting team at Greystone. “Recognizing the many benefits of building an environmentally friendly property, while HUD was still reviewing the final application, the developer and his consultants made a concerted effort to improve the project’s design and construction materials to meet the EarthCraft Multifamily standard. HUD’s incentive for reducing overall energy use by offering a lower annual MIP is an industry game changer; it’s beneficial for everyone involved in this project, investors and residents alike.”