The U.S. Department of Housing and Urban Development (HUD) announced a proposal to standardize mortgage insurance premiums for all multifamily programs at 25 basis points, effectively ending the separate green and energy efficient category. The change was revealed by HUD Secretary Scott Turner, who stated that this adjustment aims to reduce costs for lenders and developers while increasing the supply of affordable housing.
"At HUD, we’re mission-minded and focused on helping to put affordable housing within reach for hardworking Americans," said Secretary Turner. "By leveling MIPs and cutting cost-inflating regulations, we’re unlocking competitive financing and driving down costs across the board to spur development. For too long, access to housing has been tied to obsolete, ideological mandates. Under President Trump’s leadership, Americans are no longer forced to subsidize misguided and inefficient green energy crusades at the expense of real housing solutions."
The change will eliminate the Multifamily Green and Energy Efficient Mortgage (Green MIP) category. According to HUD, this category was burdensome for lenders and developers and did not significantly advance affordable housing development. With all multifamily loans now proposed at a uniform rate, requirements related to green building achievements and annual energy performance reporting will be removed.
HUD plans to seek public comments on the proposal for 30 days. The department stated that this move is part of its efforts under recent presidential actions aimed at reducing living costs for American families and promoting domestic energy production.
