New Money Available for HUD-Assisted Multifamily Housing
Green and resilient retrofit program launches
The federal department of Housing and Urban Development (HUD) released details on roughly $2 billion in new funding for improving energy efficiency and climate resilience in certain HUD-assisted properties. The funding opportunity is now open and available under the Green and Resilient Retrofit Program (GRRP).
What is the GRRP?
The Inflation Reduction Act (IRA) included funding specifically for “improving energy efficiency or water efficiency or climate resilience of affordable housing.” HUD is administering these funds and released grant details under the GRRP along with notices of funding opportunities. GRRP will provide owners of HUD-assisted multifamily housing with capital resources to reduce carbon emissions, make utility efficiency improvements, incorporate renewable energy sources, and make properties more resilient against the effects of climate hazards. HUD’s goals with the program are:
- To reduce energy and water use in HUD-assisted multifamily properties
- To make HUD-assisted multifamily properties more resilient to extreme weather events and natural disasters
- To reduce greenhouse gas emissions from HUD-assisted multifamily properties, both directly and by using materials with less embodied carbon
The GRRP has three cohort options of funding available to meet the needs of properties at all stages of redevelopment.
Who is eligible for GRRP?
Eligible owners primarily include owners receiving HUD rental assistance under Multifamily Section 8 project-based rental assistance, Section 202 Supportive Housing for Low-Income Elderly, Section 811 Supportive Housing for Low-Income Persons with Disabilities, or Section 236 program.
Are awards grants or loans?
Awards can either be grants or surplus cash loans based on applicant selection.
What are the three cohort options available?
HUD created GRRP with three “cohorts” or options to choose from:
Elements – $140 million available. Funding of up to $40k per unit or $750K per property. HUD expects to make approximately 200 awards.
Awards are designed to add climate resilience and carbon reduction measures to the construction scopes of in-progress recapitalization transactions. The owner must be materially advanced, but not yet closed, in a recapitalization effort for the property.
A few examples of eligible projects include clean energy production, electric vehicle charging stations, electric air source or ground source heat pumps, electric domestic hot water pumps, energy star windows, responsibly sourced building materials, clean back-up power, electric appliances (ovens, cooktops etc) if converting from gas/oil among others. There are also items for those in certain floodplain, hurricane areas, drought areas, cold weather or fire areas. Finally, different funding limits apply to different projects. For example, a GRRP grant would cover 20% of the cost of an installed electric appliance versus actual cost if a geothermal energy generation system was installed.
Leading Edge – $400 million available. Funding of up to $60K per unit or $10 million per property. HUD estimates making roughly 100 awards.
The awards are to provide funding to owners aiming to pursue high levels of energy efficiency, climate resilience, and emissions reductions. The scope of work must result in a reduction in energy consumption of at least 25% and meet one of the Leading Edge Qualifying Certifications identified in the application. Owners will work on their project without high levels of technical assistance from HUD. HUD-assisted units must constitute 50% or more of the total dwelling units of the property.
Comprehensive – $1.47 billion available. Funding up to $80K per unit or $20 million per property. HUD anticipates making 300 awards.
Provides funding to initiate recapitalization investments designed from inception around deep retrofits, focused on innovative energy efficiency and greenhouse gas emissions reductions, green and healthy housing measures, renewable energy generation, use of building materials with lower embodied carbon, and climate resilience investments. Comprehensive Awards are designed for the widest range of properties, including those that have not yet developed a recapitalization plan. This broad scope of construction will be informed by a suite of assessments to evaluate physical needs, energy and water efficiency needs, capacity for renewable energy generation, climate resilience interventions, and environmental conditions. HUD and the owner will collaborate to develop the property’s scope of work. HUD intends to procure Multifamily Assessment Contractors (MACs) to assist throughout the project. HUD-assisted units must constitute 50% or more of the total dwelling units of the property.
What is the deadline to apply?
Applications are taken on a rolling basis. There are four application periods. An application, if not selected, will remain in the pool for subsequent application periods unless the applicant withdraws it. An applicant may only submit one application for a property.
Elements
- 06/29/2023 to be considered in the First Application Period
- 09/28/2023 to be considered in the Second Application Period
- 01/04/2024 to be considered in the Third Application Period
- 03/28/2024 for all other applications
Leading Edge
- 07/31/2023 to be considered during the First Application Period
- 10/31/2023 to be considered during the Second Application Period
- 01/31/2024 to be considered during the Third Application Period
- 04/30/2024 to be considered during the Third Application Period
Comprehensive
- 08/31/2023 to be considered in the First Application Period
- 11/30/2023 to be considered in the Second Application Period
- 02/28/2024 to be considered in the Third Application Period
- 05/30/2024 for all other application
How CLA can help?
Our affordable housing and health care practice understand you and your business. If you have questions about this grant or CLA’s grant application services, learn more at Grant Application Services at CLA and reach out.
Additional Resources
- Read the IRA (Section 30002) – (congress.gov)
- Find full details — Green and Resilient Retrofit Program (GRRP) | HUD.gov
Jennifer Boese is the Director of Health Care Policy at CLA. She is a highly successful public policy, legislative, advocacy and political affairs leader, including working in both the state and federal government as well as the private sector. She brings over 20 years of government relations and public policy knowledge with her to CLA. Well over half of her career has been spent dedicated to health care policy and the health care industry, affording her a deep understanding of the health care market and environment, health care organizations and health care stakeholders. Her role at CLA is to provide thought leadership, policy analysis and strategic insights to health care providers across the continuum related to the industry's ongoing transformation towards value. A key focus of that work is on market innovations and emerging payment models. Her goal is to help CLA clients navigate and thrive in an increasingly dynamic health care environment.
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