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HUD has extended the application deadlines for its FY 2023 Green and Resilient Retrofit Program (GRRP). Authorized and funded by Section 30002 of the Inflation Reduction Act of 2022, (Public Law 117-169) (the “IRA”), the program seeks to amplify recent technological advancements in utility efficiency and energy generation, bring a new focus on preparing for climate hazards by reducing residents’ and properties’ exposure to hazards, and protecting life, livability, and property when disaster strikes.

GRRP, HUD says, is the first HUD program to simultaneously invest in energy efficiency, greenhouse gas emissions reductions, energy generation, green and healthy housing, and climate resilience strategies specifically in HUD-assisted multifamily housing. All the investments under the GRRP will be made in affordable housing communities serving low-income families.

Cohorts and Deadlines

HUD is offering GRRP funding through three separate cohorts designed to meet the different needs of HUD’s assisted multifamily portfolio. The three cohorts of awards will be implemented through three parallel Notices of Funding Opportunity (NOFOs), as follows:

The Elements NOFO provides modest awards designed to add proven and highly impactful climate resilience and carbon reduction measures to the construction scopes of in-progress recapitalization transactions.

The Leading Edge NOFO provides funding to owners aiming to quickly meet ambitious carbon reduction, renewable energy generation, use of building materials with lower embodied carbon, and resilience goals without requiring extensive technical assistance from HUD.

The Comprehensive NOFO 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.

The new deadlines are March 28, 2024, for Elements, April 30, 2024, for Leading Edge, and May 30, 2024, for Comprehensive.

What HUD hopes to accomplish with GRRP

  • Substantially improve energy and water efficiency and reduce emissions, including moving properties toward net zero, zero ready, or zero over time energy and emissions performance standards;
  • Address climate resilience, including synergies that can be achieved between efficiency, emissions reduction, and resilience investments;
  • Enhance indoor air quality and resident health;
  • Implement the use of zero-emission electricity generation and energy storage;
  • Minimize embodied carbon and incorporate low-emission building materials or processes; and
  • Support building electrification.

This NOFO makes available approximately $1,470,000,000 for the Comprehensive Awards and describes the eligibility and process to select properties for this funding. Housing Notice H 2023-05 describes the program requirements that will govern properties and the use of funds after selection.

Applications for eligible properties which are submitted in a timely manner will be ranked based on: (1) the property’s risk as evaluated through the Federal Emergency Management Agency’s (FEMA) National Risk Index; and (2) the property’s utility efficiency profile using either utility consumption benchmarking data entered into the Environmental Protection Agency’s (EPA) Portfolio Manager or, for properties that are unable to receive a score through EPA’s Portfolio Manager, the Multifamily Building Efficiency Screening Tool (MBEST).

HUD expects to make approximately 300 awards from the funds available under this NOFO.

How to prepare for this and future funding rounds

Funding for modernizing properties is always in demand. The GRRP application process is likely to be very competitive.

“These new funds will provide opportunities to modernize properties, both in the traditional sense as well as employing new green design features,” says Scott Precourt, founding partner of US Housing Consultants. “Creating effective and articulate plans for implementing GRRP is going to be very important for properties applying for funding. We’re now offering Energy Audits for GRRP applications, which will connect owners with new funding opportunities. Even. if a property isn’t ready to apply with this NOFO, it’s a good time to start planning for a green building future.”

Joe Miksch is the Public Relations and Marketing Manager for US Housing Consultants.