A new HUD program will simultaneously invest in utility efficiency, renewable energy generation, and climate resilience strategies in HUD Multifamily Assisted Housing. The funding for the program is provided by the Inflation Reduction Act of 2022 and provides HUD with $837.5 million in grant funding and $4 billion in loan authority for the program. The funding will allow owners to invest in technology such as solar panels, heat pumps, wind-resistant roofing, and other technologies that will reduce greenhouse gas emissions.
HUD has published three Notices of Funding Opportunity (NOFOs) for the Green and Resilient Retrofit Program (GRRP), along with implementation guidance in Housing Notice H 2023-05. The funding is available for multiple HUD programs, including Section 8 Project-Based, Section 202, and Section 811. The program has three funding options:
- Elements Awards: provides funding to owners to add energy efficiency, electrification, and renewable energy measures for in-progress rehabilitation. These awards are intended for sites with renovation planning already in progress. An example would be an owner who is well advanced in planning and financing a rehab and, as a result of the award, the owner can replace the in-unit HVAC system with higher efficiency electric HVAC systems. Approximately $140 million in grants and surplus cash loans are available and the funding is capped at $40,000 per unit or $750,000 per property. Applications are due March 28, 2024. This option has excellent potential for HUD-assisted projects that have been purchased and are being layered with Low-Income Housing Tax Credits.
- Leading Edge Awards: this provides funding for retrofit activities designed to achieve ambitious outcomes, including net zero emissions, renewable energy generation, low-carbon building materials, and climate-resilient investment. For example, this will allow owners to do a complete renovation and achieve a passive house certification. Approximately $400 million in loans and grants is available with funding capped at $60,000 per unit or $10 million per property. Applications are due April 30, 2024.
- Comprehensive Awards: This is the widest-ranging option and will include properties that are not yet in the planning process. It will prioritize sites with a significant need for energy efficiency, emissions reductions, and climate resilience. An example of an applicant for this award is a site with high REAC scores and low capital needs but has older, fossil fuel-dependent equipment. Owners utilizing this funding will be assisted by HUD-procured Multifamily Assessment Contractors in developing the scope of work. It is intended to provide whole-building retrofits and resilient design elements. $1.47 billion is available for this option and is capped at $80,000 per unit or $20 million per property. Applications are due May 30, 2024.
Owners interested in applying for these funds through the Office of Recapitalization within the Office of Multifamily Programs in the Office of Housing. Owners may apply in one category only for a site, but there is no limit to the number of sites an owner, or its affiliate, can submit across all award categories. The required application materials can be found at Grants.gov under the funding opportunity number cited within HUD’s NOFO. The NOFos can be found at www.hud.gov/grrp. Questions may be emailed to GRRP@hud.gov.
Back to news