The U.S. Department of Housing and Urban Development (HUD) has released new guidance on solar, cell tower, and rooftop leases for HUD-assisted and HUD-insured multifamily housing projects. This guidance aims to streamline the process for property owners to enter into these commercial lease agreements while protecting HUD's interests.
Key Points
Implications for Property Owners
This guidance clearly outlines a pathway for multifamily housing owners to leverage their rooftop space for additional income or energy cost savings. By outlining specific requirements and processes, HUD aims to facilitate the adoption of solar energy and other rooftop uses while safeguarding the interests of the properties, tenants, and HUD's investments.
Property owners should review the entire notice carefully and consult with their HUD Account Executives when considering entering these lease agreements. The potential benefits of reduced energy costs and additional income should be weighed against the responsibilities and requirements outlined in the guidance.
Due to potential tax ramifications, owners of LIHTC properties that are layered with the relevant HUD programs should consult tax counsel before executing any agreements for the use of roof space.
Conclusion
HUD's new guidance represents a significant step in supporting the adoption of clean energy technologies and maximizing the utility of multifamily housing properties. By providing a clear framework for approval and implementation, HUD enables property owners to explore innovative ways to reduce costs and generate income, ultimately contributing to the sustainability and financial health of the multifamily housing sector.
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