6.8 Green MIP Requirements for Section 241(a)

A. Section 241(a) Supplemental Loan proceeds may be used for eligible construction costs including repairs and alterations to existing buildings or site improvements, additions to existing buildings or site improvements, as well as construction of new buildings and site improvements. Regardless, a supplemental loan is secured by the entire premises subject to the lien of the first mortgage, and all requirements of both liens apply to the entire premises. Therefore, if green MIP is proposed for a supplemental loan, the entire property must obtain a green building certification. Two green building certifications may be necessary to achieve certification if both renovations of existing, and construction of new buildings, are proposed in a supplemental loan (few, if any, green building certifications contemplate both activities in a single certification). In the event two certifications are proposed, one for existing buildings, the other for new buildings, the property may be characterized as two phases to the extent needed for certification, provided that no exception exists to the requirement that the Borrower be a single asset entity. After completion of construction and delivery of the certifications, continuing performance will be demonstrated with a single Statement of Energy Performance (SEP) prepared for the entire property. One or two certifications, as applicable, must be delivered prior to Final Endorsement of the supplemental loan.