Are you investing in a sustainable new build or renovation? With its Green Loan for Social Housing Associations, BNG aims to offers social housing associations a financing product for investments in housing stock for social housing and mid-range rental homes.
The Green Loan is a fixed loan that can be classified as green under predetermined conditions. Social housing associations that meet predetermined sustainability criteria receive a one-off ‘green bonus’. It is paid out as soon as a new construction project demonstrably meets the criteria in terms of energy efficiency and sustainable material use. In the case of renovation, a rental property must improve by at least two energy label ratings to energy label B. The sustainability criteria are aligned with relevant construction and environmental standards within the sector and provide clarity on which investments qualify for the Green Loan. It clarifies in advance the aspects covered by the Green Loan and how they are assessed, so that you know what to expect when taking out the loan as well as when carrying out your project.
The loan can be used in both WSW-guaranteed (Social Housing Guarantee Fund) and unsecured financing arrangements.
The Green Loan for Social Housing Associations is a financing product for social housing associations that invest in making the Dutch housing stock more sustainable for social housing and mid‑range rental homes. This concerns sustainable new-build projects and (large-scale) renovations of existing homes. The funding is linked to the investment practice of social housing associations.
The Green Loan for Social Housing Associations can be used for investments with a clear sustainable goal, such as the construction of energy-efficient new homes or improving the energy performance of existing ones.
BNG and the social housing association agree that the loan is wholly or partly designated as a Green Loan for Social Housing Associations. Additional agreements specify the investment for which the loan is used and the corresponding sustainable characteristics.
From the moment the agreement is signed, the social housing association has a maximum of three years to demonstrate that the investment meets the agreed sustainable characteristics. This serves as the basis for determining whether and to what extent the social housing association is eligible for the green bonus.
The Green Loan for Social Housing Associations does not change the terms and conditions of your fixed-rate loan. If an investment ultimately does not meet, or does not fully meet, the agreed sustainable characteristics, this will not affect the fixed loan. It just means that the investment does not qualify for (part of) the green bonus.
If, within three years of signing the agreement, the social housing association proves that the investment meets the agreed sustainable principles, it will be eligible for a financial incentive in the form of a one-off ‘green bonus’.
The ‘green bonus’ is a financial incentive that can be granted if the agreed sustainable characteristics are met. Therefore, the Loan provides clarity in advance about the terms and conditions and describes eligibility criteria for the green bonus.
Want to know whether the Green Loan for Social Housing Associations is a good fit for your investment plans, or would you like more details about the options and terms and conditions? Please contact your BNG account manager or send an email to team.wonen@bngbank.nl.
We would be happy to discuss how the Green Loan could be of use for your project or investment plans.
