HUD Proposes Uniform Multifamily Mortgage Premiums Ending Green Incentives

The Federal Housing Administration (FHA), under the direction of HUD Secretary Scott Turner, has proposed leveling multifamily mortgage insurance premiums (MIPs) to a uniform 25 basis points across all program categories, effectively eliminating the preferential Green and Energy Efficient Mortgage category. This move is intended to reduce costs for lenders and developers, accelerate affordable housing development, and remove what HUD describes as ideologically motivated mandates tied to green energy standards. The change will eliminate the need for annual reporting on energy compliance and render green housing mandates economically obsolete. Multifamily and housing industry leaders, including the Mortgage Bankers Association and the National Apartment Association, have welcomed the proposal, viewing it as a positive step toward increasing rental housing production and affordability. The proposal is open for public comment for 30 days and is expected to be finalized soon, with HUD citing rising construction costs and mortgage rates as part of the rationale for the adjustment. This initiative aligns with President Trump's agenda to dismantle Biden-era green energy policies in federal housing programs.