Guide Update 20-12
:  Solar Photovoltaic Systems
Effective:
Retired: 07/13/21
Solar Photovoltaic Systems (Redline).pdf

HIGHLIGHTS

Effective for Mortgage Loans Committed on or after December 14, 2020, the Guide was updated to include new information for existing on-site renewable energy generation systems.

 

Primary Changes

Any existing renewable energy generation system must be

  • a solar photovoltaic system (Solar PV System), and
  • Borrower-owned.

Any Property with a Borrower-owned, operational Solar PV System must also meet certain requirements, such as remaining connected to the local utility grid, and the:

  • Multifamily Property Condition Assessment must include the the Solar PV System Module per Form 4099;
  • Borrower must execute Form 6270 – Modifications to Multifamily Loan and Security Agreement (Installed Solar Photovoltaic System);
  • Underwritten Net Cashflow 
    • must not include income derived from the Solar PV System, except for utility reimbursement income,
    • utility expense and utility reimbursement income must be supported by trailing 12-month operating history, and
    • must include all additional expenses related to the Solar PV System; and
  • Solar PV System is subject to certain legal analysis.

 

Questions

Please contact the Fannie Mae Deal Team with any questions.