A new program offered by the U.S. Department of Housing and Urban Development (HUD) will offer $837.5 million in grants as well as $4 billion in loan authority to help property owners to carry out energy efficient retrofits of HUD-assisted multifamily affordable housing. The Green and Resilient Retrofit Program (GRRP) is part of the Inflation Reduction Act (IRA) passed by Congress last August.
The funding can be used for a wide range of improvements including solar panels, heat pumps, wind-resistant roofing, insulation, and other measures to reduce emissions and make properties healthier for residents. Eligible owners include owners with HUD rental assistance contracts, including Multifamily Section 8 project-based rental assistance (PBRA), Section 202 Supportive Housing for Low-Income Elderly, and Section 811 Supportive Housing for Low-Income Persons with Disabilities.
HUD is making funding available through three different program tracks, described below. Property owners will apply directly to HUD for one of the programs for either grants or loans. Each program will accept applications in multiple waves over the next year, giving property owners time to review their portfolios and apply online. Program materials indicate HUD will be prioritizing highly ready to proceed projects that are close to construction. Applications not funded in a round will automatically be considered in a subsequent round for that track.
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HUD GGRP Cohort |
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Project types |
Provides gap financing for green measures in existing recapitalization transactions. |
Provides funding for ambitious retrofit projects to achieve an advanced green certification. At least 50% of units at the property must be HUD-assisted. |
Provides funding to properties with high needs, regardless of prior retrofit experience from the owner. A HUD-provided contractor will support the owner in creating a transaction plan. At least 50% of units at the property must be HUD-assisted. |
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Project phase |
Recapitalization effort should be materially advanced and ready to close within 12 months. |
Any stage of planning for a recapitalization. |
Properties that do not yet have recapitalization plans. |
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Funding available |
Up to $750k per property or $40k per unit. |
Up to $10 million per property or $60k per unit. |
Up to $20 million per property or $80k per unit. |
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Application waves |
June 2023, September 2023, January 2024, March 2024 |
July 2023, October 2023, January 2024, April 2024 |
August 2023, November 2023, February 2024, May 2024 |
HUD’s GRRP website has links to pages for each funding track, including further information resources, application materials, and contact information for weekly office hours offered by HUD to answer questions. Materials also include information about how funding will be prioritized on a competitive basis.
The Green and Resilient Retrofit Program is one of many programs under the Inflation Reduction Act that may benefit affordable housing in Vermont, and VHFA will continue to share information as it becomes available.
Pictured: Parkview Apartments in Newport, developed by Rural Edge.