HUD Extends Commitment to Safer Housing

The U.S. Department of Housing and Urban Development (HUD) has awarded $73.5 million in new loans and grants under the Green and Resilient Retrofit Program (GRRP) to support extensive energy efficiency and climate resilience renovations for low-income Americans as part of President Biden’s Investing in America agenda.

The $73.5 million investment from President Biden’s Inflation Reduction Act will make homes safer, more efficient, and resilient to the climate crisis at 10 HUD-assisted multifamily properties that provide affordable housing for approximately 1,400 low-income families, including 44 homes for low-income seniors.

As of today, HUD has made more than $368 million in GRRP awards to support renovations at 84 multifamily properties that will improve more than 9,000 homes for very low-income households, seniors, and people with disabilities.

Inclusion for all

“The Green and Resilient Retrofit Program ensures low-income individuals and families are not left out of the climate change conversation,” said HUD Secretary Marcia L. Fudge. “HUD wants these families to have better access to clean energy upgrades like solar panels and modern and efficient heating and cooling systems, so that they too can have resilient homes. This additional round of funding builds on President Biden’s Investing in America agenda, as we continue to boost energy efficiency and combat climate change in communities throughout the country.”

President Biden’s Inflation Reduction Act established the GRRP by providing more than $800 million in grant and loan subsidy funding and $4 billion in loan commitment authority for efficiency and resiliency improvements. All the investments under the GRRP will advance President Biden’s environmental justice agenda, in alignment with the Administration’s Justice40 Initiative which aims to deliver 40% of the overall benefits of certain federal investments to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution. Retrofitting these homes will reduce their carbon emissions, make them more resilient to extreme weather events, and enhance their ability to respond to and recover from such events more quickly.

GRRP is the first HUD program to simultaneously invest in energy efficiency, renewable energy generation, climate resilience, and low-embodied carbon materials in HUD-assisted multifamily housing. Investments under the program will be made in affordable housing communities serving low-income families in accordance with President Biden’s agenda for building the American economy from the middle out and the bottom up.

The GRRP Notices of Funding Opportunity (NOFOs) and accompanying guidance detail the multiple funding opportunities to which property owners may apply:

  • GRRP Elements provides funding to owners for proven and meaningful climate resilience and utility efficiency measures in projects that are already in the process of being recapitalized.
  • GRRP Leading Edge provides funding to owners with plans for ambitious retrofit activities to achieve zero energy retrofits and an advanced green certification.
  • GRRP Comprehensive provides funding to properties with the highest need for climate resilience and utility efficiency upgrades, regardless of prior development or environmental retrofit experience.

 

The grants and loans announced are the second set of awards that HUD has made under the GRRP’s Leading Edge category, which requires property owners to commit to achieving recognized high-performance green building certifications, such as the National Green Building Standard’s Gold certification with the Green+ Net Zero Energy designation. The certifications recognize significant property upgrades, such as on-site solar power generation, wind turbines, impact- and wind-resistant roofing, and other substantial energy efficiency and climate resilience improvements.

Boosting the quality of life for many

“Far too many Americans struggle to stay warm in the winter and cool in the summer,” said John Podesta, Senior Advisor to the President for International Climate Policy. “Today’s awards from the Department of Housing and Urban Development will boost the quality of life for thousands of low-income American families by making their homes safer and more comfortable.”

The Inflation Reduction Act also established HUD’s Energy and Water Benchmarking Service, which is available now for properties receiving rental assistance from its Multifamily project-based programs. This service provides participating multifamily property owners with data on energy and water consumption at their properties to aid in identifying opportunities to improve efficiency. Property owners can also use the Energy and Water Benchmarking information to assess rehabilitation efforts that may be eligible for grant or loan funding under the GRRP or other sources of funding.

The 10 properties receiving Leading Edge awards represent a mix of property sizes. The majority are supported by HUD’s Multifamily Section 8 project-based rental assistance program. Six of the properties have between 100 and 200 affordable rental homes, while two properties are smaller than 100 homes. One property, supported by HUD’s Section 202 Supportive Housing for the Elderly program for low-income seniors, has 44 homes.

HUD’s deepened commitment to equitable shelter for all

HUD recently partnered with the Environmental Protection Agency (EPA), and the Department of Health and Human Services (HHS) on two agreements to further their “whole of government” approach to strengthen these agencies’ shared work in ensuring that children—especially those at substantial risk—are not exposed to human health risks from lead hazards. These two Memoranda of Understanding (MOUs) support commitments made in the Lead and Paint Action Plan, EPA’s Strategic Plan, HUD’s Strategic Plan, and HHS’s Strategic Plan, which seek to reduce lead exposures locally with a focus on underserved communities and promote environmental justice through a whole of government approach.

See the full list of grantees below:

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Eric C. Peck

MortgagePoint Managing Digital Editor Eric C. Peck has 25-plus years’ experience covering the mortgage industry. He graduated from the New York Institute of Technology, where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career in New York City with Videography Magazine before landing in the mortgage finance space. Peck has edited three published books, and has served as Copy Editor for Entrepreneur.com.
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