Green and Resilient Retrofit Program (GRRP)

To date, Hampden Park has helped non-profit owners secure 15 awards under HUD’s Green and Resilient Retrofit Program (GRRP). Hampden Park successfully closed on the first GRRP grant in the country in April 2024. This project combined a GRRP-Elements award with FHA debt and a RAD for PRAC conversion that enabled the owner to make much needed building repairs.

While the GRRP application process is now closed, we are continuing to assist owners who received awards through closing. If you have received a GRRP award and have questions, please contact us. We’re awaiting HUD’s publication of waitlists for the Leading Edge and Comprehensive cohorts and are hopeful that additional projects will be funded from these waitlists in the coming years.

In addition to our GRRP consulting services, under our one-stop-shop concept we are uniquely situated to offer FHA insured 221(d)(4) loans as a complement to GRRP awards. A 221(d)(4) loan can be utilized to fund GRRP-scope of work items that fall into the “owner-paid” and “cost-share” categories that HUD has identified.

About the Green and Resilient Retrofit Program (GRRP)

  • Funded under the Inflation Reduction Act of 2022.
      • $837.5 million for grants and up to $4 billion in loan authority.
  • The program has the following goals to benefit HUD-assisted multifamily properties:
    • Reduce energy and water use
    • Make properties more resilient to extreme weather events and natural disasters
    • Reduce greenhouse gas emissions
  • The GRRP has three (3) different categories, or “cohorts” that owners can apply under: Comprehensive, Leading Edge, and Elements.

What is the Comprehensive Cohort?

  • Provides funding for a comprehensive energy efficient and resilient scope of work based on a suite of property assessments to identify each property’s greatest opportunities and needs for green and resilient upgrades.
  • Comprehensive Awards are designed for the widest range of properties, including those that have not yet developed a recapitalization plan.
  • Comprehensive Awards prioritize properties with high need for investments in energy efficiency, emissions reductions, and climate resilience.
  • The construction funded by a Comprehensive Award will be informed by a series of assessments that will identify the property’s specific capital needs as well as property-specific opportunities to meet GRRP objectives.
  • Owner has the help of a HUD-hired Multifamily Assessment Contractor (MAC), who will make recommendations regarding the Comprehensive Scope of Work and conduct certain oversight activities on HUD’s behalf with respect to the implementation of the Scope of Work.
  • Maximum awards of up to $20,000,000 per property, with a per unit cap of $80,000

What is the Leading Edge Cohort?

  • Only available to owners/developers who have completed at least 3 recapitalization transactions within the last 5 years which involved more than $60k per unit of hard construction costs.
  • The funded project must achieve one of the identified Leading Edge Qualifying Certifications (i.e. LEED, Passive House) and result in a reduction in energy consumption of at least 25%.
  • Leading Edge funding is provided during the early planning stages of a recapitalization effort. Complements an Owner’s existing financing strategy, allowing them to design the recapitalization to the highest standards of energy efficiency, emissions reductions, and climate resilience.
  • Selection based on the property’s current energy efficiency, as measured by MBEST.
  • Owner driven. No extensive scope collaboration with HUD. Must have a development team member with demonstrated experience with selected green certification.
  • Maximum awards of up to $10,000,000 per property, with a per unit cap of $60,000

What is the Elements Cohort?

  • Provides modest funding to Owners for specific impactful investments, as identified in the NOFO and selected by the Owner in the application. Examples include:
    • Solar/On-site Wind Energy Generation/Geothermal Energy Generation
    • Energy Star 7.0 Windows (GRRP funds 30%)
    • Electric heat pump rated at least 18 SEER or HSPF
    • Electric Domestic Hot Water heat pumps rated 3.3 UEF or greater
    • Improvements that address specific FEMA National Risk Index threats for the subject property (i.e., Hurricane, Tornado, Flooding, Strong Wind).
  • Elements Awards are designed for in-progress recapitalization transactions (i.e. FHA Firm Commitment application submitted) so owners can add green or resilient elements to existing scope of work.
  • Maximum awards of up to $750,000 per property, with a per unit cap of $40,000

Contact us if you received a GRRP award and have any questions.

Sources:           HUD’s GRRP NOFOs, hud.gov/GRRP