New HUD Grants Geared for Energy Efficient Homes

The U.S. Department of Housing & Urban Development (HUD) has announced $173.8 million in new grant and loan awards under its Green and Resilient Retrofit Program (GRRP), bringing the total funding awarded under this program to a total of $544 million, or more than 50% of funding being awarded through this program.

The announcement was made by HUD Acting Secretary Adrianne Todman and Chicago Mayor Brandon Johnson at Archer Courts in Chicago, which was awarded an $11.76 million grant under the program. The funds will be used by owner Jonathan Rose Companies for substantial energy efficiency renovations at the 146-unit property, which is home to low-income individuals and families.

Click here to view the full list of GRRP grantees.

“The Green and Resilient Retrofit Program is designed to improve the health, safety, quality and comfort of residents’ homes and to ensure HUD-assisted multifamily housing becomes more sustainable,” said HUD Acting Secretary Adrianne Todman. “The Biden-Harris Administration is committed to addressing the negative impacts of climate change and HUD’s programs are an important part of this work.”

The grants and loans announced as part of President Joe Biden’s Investing in America agenda will support energy efficiency and climate resilience renovations at 25 properties participating in HUD’s multifamily project-based rental assistance programs for low-income individuals, families, and seniors.

President Biden’s Inflation Reduction Act, one of the largest climate investments in history, established the GRRP in 2022 to fund energy efficiency and resiliency improvements for HUD’s assisted rental portfolio.

Furthering President Biden’s Justice40 Initiative

All of the investments announced will advance environmental justice in line with President Biden’s Justice40 Initiative which sets a goal that 40% of the overall benefits of certain federal investments flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution. Retrofitting these homes will reduce carbon emissions, make them more resilient to extreme weather events, and advance the President’s housing and clean energy agenda, ensuring affordable housing stays affordable for residents and building owners across the nation.

“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 moderate- and low-income American families by making their homes safer and more comfortable.”

Transforming lives through green efficiency

The GRRP Comprehensive awards provide funding to properties with the highest need for climate resilience and utility efficiency upgrades. The 25 properties receiving Comprehensive awards represent a mix of property sizes, affordable housing program participation, and energy efficiency and climate resilience needs. Eight are properties participating in the HUD Section 202 project-based rental assistance program for low-income seniors and 17 are properties participating in the HUD Section 8 project-based rental assistance program for low-income individuals and families. One property has more than 200 units, 17 properties have between 51-200 units, and seven properties have 50 or fewer units. Five properties have exceedingly high need for energy efficiency improvements and 14 properties have very high climate risks which include the risk of significant damage and disruption to residents from climate and extreme weather hazards, such as extreme heat, hurricanes, flooding, and other catastrophic storm events.

“The power of the Green and Resilient Retrofit Program to transform properties and the lives of low-income families is underscored by the variety of applications we continue to receive for energy efficiency and climate resilience projects,” said Assistant Secretary for Housing Julia Gordon. “Today’s announcement reinforces this Administration’s dual commitment to addressing climate challenges and providing safer and healthier homes for low-income families and seniors.”

Progress to date

  • GRRP simultaneously invests in energy efficiency, renewable energy generation, climate resilience, and low-embodied-carbon materials in HUD-assisted multifamily housing. All of the investments under the GRRP will be made in affordable housing communities serving low-income families, directly benefiting HUD-assisted housing, in alignment with the Justice40 Initiative.
  • At the 50% mark of planned award funding being distributed to 109 properties and more than 12,600 rental homes, to make them greener, healthier, and safer for low-income households, seniors, and persons with disabilities.
  • As of March 28, 2024, HUD has awarded $544.4 million in grants and surplus cash loans under the GRRP; $240.1 million in grants and $304.3 million in surplus cash loans.
  • Of the awardees receiving grants and loans in six rounds of funding, 87 are properties receiving Multifamily Section 8 project-based rental assistance, 21 properties are receiving Section 202 project-based rental assistance for low-income seniors, and one is receiving Section 811 project-based rental assistance for low-income persons with disabilities.
  • GRRP funding is being used for insulation, energy efficient windows and doors, heat-resistant roofs, energy efficient heating and cooling, resiliency measures, and other improvements.
  • GRRP is designed to work for properties of all sizes, and with a range of energy efficiency and climate resilience needs. Almost 20 properties receiving grant and loan awards have fewer than 50 units, some 70 properties have between 50 and 100 units, while 15 have more than 200 units.
  • More than 700 properties have also signed up for HUD’s free energy and water benchmarking service, funded with more than $40 million from the President’s Inflation Reduction Act, so that HUD-assisted housing property owners can better understand the energy and water consumption at their properties in relation to other similar properties. This benchmarking information can in turn be used to assess energy efficiency and water conservation upgrades that can be funded under the GRRP.

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Eric C. Peck

Eric C. Peck

Eric C. Peck has 25-plus years’ experience covering the mortgage industry, most recently serving as Editor-in-Chief for National Mortgage Professional Magazine. 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 with Videography Magazine before landing in the mortgage space. Peck has edited three published books, and has served as Copy Editor for Entrepreneur.com.
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