The 2022 Inflation Reduction Act provides funding for this new program, which includes $837.5 million in grant funding and $4 billion in loan authority for HUD to make investments in energy or water efficiency, indoor air quality, zero-emission energy generation, low-emission building materials or processes, energy storage or climate resilience strategies in HUD Multifamily Assisted Housing.
Specifically, the goals are to:
Reduce energy and water use in HUD-assisted multifamily properties,
Make HUD-assisted multifamily properties more resilient to extreme weather events and natural disasters, and
Reduce greenhouse gas emissions from HUD-assisted multifamily properties.
Eligible properties are those receiving HUD assistance under Multifamily Section 8 project-based rental assistance, Section 202 Supportive Housing for Low-Income Elderly, and Section 811 Supportive Housing for Low-Income Persons with Disabilities.
The GRRP will provide funding in three categories, each with a separate notice of funding opportunity (NOFO):
Element Awards are for properties that are materially advanced in a recapitalization transaction that includes targeted utility efficiency, carbon emissions, reduction, renewable energy and/or climate resilience measures.
Leading Edge Awards are for properties with a significant capacity to execute a rehabilitation that will achieve an advanced green certification.
Comprehensive Awards are for range of properties, including those not yet developed, where the property owner is interested in improving the utility efficiency and resilience to climate hazards.
Property owners can apply in only one category. Properties that receive awards will require at least five years of extended affordability and a minimum of 15 years of affordability.