Green and Resilient Retrofit Program (GRRP)

What is the Green and Resilient Retrofit Program (GRRP) for Multifamily Housing?

  • 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:
    • To reduce energy and water use
    • To make properties more resilient to extreme weather events and natural disasters
    • To reduce greenhouse gas emissions
  • The GRRP has three (3) different categories, or “cohorts” that owners can apply under.

 

What properties are eligible?

  • Section 202
  • Section 811
  • Section 236
  • Properties assisted by the following types of PBRA HAP Contracts:
    • New Construction
    • State Housing Agencies Program
    • Substantial Rehabilitation
    • Section 202/8
    • Rural Housing Services Section 515/8 (including Section 8 Farmer Home Administration (FmHA))
    • Loan Management Set-Aside (LMSA)
    • Property Disposition Set-Aside (PDSA)
    • Rental Assistance Demonstration (RAD) PBRA Contracts executed on or before September 30, 2021
    • Pension Fund PBRA Contracts executed on or before September 30, 2021
  • Note: for the Leading Edge and Comprehensive cohorts, the assisted units in the property must constitute more than 50% of the total dwelling units in the property.

 

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 app submitted) so owners can add green or resilient elements to existing scopes of work.
  • Maximum awards of up to $750,000 per property, with a per unit cap of $40,000

 

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 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

Applications are being accepted in cohort specific waves that run from June 2023- May 2024.

Contact us to learn more about if GRRP may be a good fit for your properties.

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