In our joint Nixon Peabody-Dominion Due Diligence Group webinar, we discuss opportunities presented by GRRP for a greener and more resilient future.
What is the GRRP?
HUD introduced GRRP, authorized by the Inflation Reduction Act of 2022—a historic investment in infrastructure nationwide with an emphasis on both clean energy and climate resiliency. The program implementation builds on a similar program under the American Recovery and Reinvestment Act of 2009. Through GRRP, HUD incentivizes retrofits that improve the energy efficiency, climate resiliency, safety, and resident health in multi-family housing. In particular, the program focuses on historically disadvantaged communities that are heavily burdened by the effects of climate change.
What is covered under GRRP?
GRRP awards funding to properties in HUD’s multifamily assisted portfolio, such as S8 PBRA, Section 202, and Section 811. The program encourages a variety of green retrofit practices, including utility benchmarking, improved utility efficiency, green house gas/carbon emission reduction, climate resiliency upgrades, building electrification, and improved indoor air quality, among other strategies.
Opportunities for funding
Private owners can take advantage of GRRP through one of three funding mechanisms, including: Elements awards, Leading Edge awards, and Comprehensive awards. Each of these funding levels, or “cohorts,” covers progressively larger recapitalization needs and project scopes. Owners can only apply for one cohort at any given time for a particular property.
- Elements awards: This cohort provides an added boost to projects that are already in the advanced stages of recapitalization and ready to close within a year. It provides additional funding and gap financing for owner-driven climate investments and green features, such as high-efficiency heat pumps for HVAC or a rooftop solar array. The award includes a maximum of up to $750,000 per property. Applications are accepted on a rolling basis beginning in June, with waves every three months through March 24.
- Leading Edge awards: This cohort covers more ambitious, owner-driven energy-efficient projects and climate investments, such as renewable energy generation for properties reliant on fossil-fuel equipment. Eligible projects require a Green Building Certification and preliminary plans in play for rehabilitation. The award includes a maximum of up to $10 million per property. Applications are accepted on a rolling basis beginning in July, with waves every three months.
- Comprehensive awards: This award funds collaborative efforts between private owners and HUD on significant retrofitting and recapitalization initiatives, such as utility efficiency, renewable energy generation, and carbon emission reductions. Projects must demonstrate an imminent need for climate resilience upgrades, and are typically at high-risk of flooding, wildlife damage, or other climate hazards. The award includes a maximum of $20 million per property. Applications are accepted on a rolling basis beginning in August, with multiple waves.
Eligibility and affordability requirements
Each cohort includes slightly different eligibility requirements. Generally speaking, HUD will prioritize properties most in need and projects that incorporate utility efficiency upgrades or improvements to protect against climate risks. Additional factors that impact rank include Green Building Certifications, electrification commitments, and participation in the Department of Energy’s Better Buildings Challenge. GRRP loans and grants also include extended affordability requirements.
Before you apply
Owners should consider lead times before applying to a GRRP funding cohort. Visit HUD’s GRRP website to learn more about the application process and eligibility requirements.