On May 11, the U.S. Department of Housing and Urban Development (HUD) announced the availability of new funding through the Green and Resilient Retrofit Program (GRRP). Eligible owners of HUD-assisted multifamily properties serving low-income residents can apply for funds to retrofit solutions that reduce greenhouse gas emissions; increase energy and water efficiency; and boost climate resiliency.
The Inflation Reduction Act provided HUD with $837.5 million in grant and loan subsidy funding and $4 billion in loan commitment authority for GRRP to make HUD multi-family homes healthier, more energy efficient, and more climate resilient.
Funding can be invested in technologies like solar panels, heat pumps, wind-resistant roofing, insulation, low embodied carbon materials, and more. It’s intended to enhance quality of life, while providing safer and healthier living environments and keeping residents safe during natural disasters and extreme weather events.
There are three award cohorts available:
- Elements Award: $40k/unit or $750k/property. Use funding to add elements to planned renovations that measurably help with climate resilience, energy efficiency, electrification, and renewable energy. For example, install electric HVAC heat pumps, Energy Star windows, fire resistant roofs and clean energy generation systems. HUD expects to make approximately 200 awards with $140 million in funding.
- Leading Edge Award: $60k/unit or $10 million/property. Use funding for retrofit activities that result in net zero, renewable energy generation, building materials with lower Embodied Carbon, and climate resilience. Complementing the owner’s existing finance strategy, awards enable recapitalization to the highest standards of energy efficiency, emissions reductions, and climate resilience, under programs like LEED and PHIUS. HUD expects to make approximately 100 awards with $400 million in funding.
- Comprehensive Award: $80k/unit or $20 million/property. Use funding to upgrade properties with the highest need for climate resilience and utility efficiency upgrades, regardless of prior development or environmental retrofit experience. Awardees will have support commissioning property assessments and planning a redevelopment that meets the property’s specific needs and GRRP retrofit objectives. HUD expects to make approximately 300 awards with $1.47 billion in funding.
Funding will be provided in tranches, providing a few opportunities to apply. Funding will be in the form of grants or loans. Additional information and resources are available:
- To determine which cohort may be right, refer to the fact sheet.
- For complete details about funding, see the Notice H 2023-05.
- For more information, go to hud.gov/grrp.
- To get answers to questions, refer to these FAQs.
While you’re considering whether to apply for funds, also consider whether you can free up some time by partnering with RBT CPAs for your accounting, tax, audit, and financial advisory needs. We’re a leading firm in the Hudson Valley and our professionals believe we succeed when we help our clients succeed. Interested in learning more? Give us a call, today!