The U.S. Dept. of Housing and Urban Development (HUD) recently announced the availability of landmark funding through the new Green and Resilient Retrofit Program (GRRP) to support retrofits for HUD-assisted multifamily affordable housing (MFAH) properties.
The Inflation Reduction Act (IRA) provided HUD with approximately $837M in grant funding and $4B in loan authority for the GRRP. This program simultaneously invests in utility efficiency, renewable energy generation, and climate resilience strategies in HUD-assisted MFAH. Building owners can invest in technologies such as solar panels, heat pumps, wind-resistant roofing, and other measures to reduce greenhouse gas emissions and make properties healthier and safer for residents in the face of more severe weather and a changing climate. If you are an owner who receives HUD assistance through Sections 202, 811, Section 8 project-based rental assistance, or certain other small programs, you may be eligible for a grant or loan award under one of three pathways (discussed in greater detail below). HUD published implementation guidance to accompany the funding announcements.
ICAST has been closely tracking all IRA and Bipartisan Infrastructure Law (BIL) opportunities relevant to MFAH, and it is intimately familiar with their complexity. To help simplify the process, we created an Instant Cost/Benefit Estimate Calculator, where property owners can quickly estimate the federal funds available to “go green.” Access the calculator here, and contact ICAST if you have questions or need assistance applying for the new HUD funds.
GRRP funding pathways:
- The Elements pathway provides up to $40K per unit or $750K per property. With $140M million in funding, HUD expects to make approximately 200 awards. These awards provide funding for owners to include climate resilience and utility efficiency measures in projects already in the process of a recapitalization transaction. Examples of eligible investments include installing electric HVAC heat pumps, Energy Star windows, fire-resistant roofs, and clean energy generation systems.
- The Leading Edge pathway provides funding of up to $60K per unit or $10M per property. With $400M in funding, HUD expects to make approximately 100 awards. These awards provide funding for retrofit activities to achieve an advanced green certification. Best for properties in the planning stages of a recapitalization effort, these awards complement the existing financing strategy, allowing projects to reach the highest standards of utility efficiency and climate resilience and be recognized under programs like LEED and PHIUS.
- The Comprehensive Pathway provides funding of up to $80K per unit or $20M per property. With $1.47B in funding, HUD expects to make approximately 300 awards. These awards fund properties with the highest need for climate resilience and utility efficiency upgrades, regardless of prior development or environmental retrofit experience. Awardees will have access to support in commissioning property assessments to plan a redevelopment that meets the property’s specific needs and GRRP retrofit objectives.
Learn more here, and for additional assistance, contact: email@example.com or 866.590.4377