6.4.4 Regulatory Agreement Rider 5 Required for Green MIP

A. Form HUD-92466-R-5 (Rider 5) is a rider to the Regulatory Agreement that the Borrower must execute at initial endorsement. Rider 5 obligates the Borrower to complete all construction as well as any and all tests, evidence, or assurances as may be necessary to perfect and obtain the selected green building certification. In addition, Rider 5 specifies the Borrower’s on-going energy performance obligations during the life of the insured mortgage.

B. The Office of Asset Management and Portfolio Oversight (OAMPO) provides instructions to Borrowers and Lenders on how to comply with green MIP continuing performance requirements in Mortgagee Letter 2020-1 (ML 2020-1). Borrower’s failure to deliver a correctly prepared and verified Statement of Energy Performance (SEP) and/or failure to maintain a minimum ENERGY STAR® Score of 75 (or in the event of a change in the calibration of the Score, failure to maintain the expected Energy Use Intensity Score [EUI Score] equivalent to a score of 75 at the time of application), after notice and opportunity to cure will result in sanctions consistent with ML 2020-1. The EUI Score is energy use, expressed in British Thermal Units (BTUs) per square foot per annum. The EUI is reported on the SEP in addition to the ENERGY STAR® Score.