HUD invests $837M in energy, climate renovations for multifamily housing
The funds come from the Inflation Reduction Act and $4 billion of loan commitment authority
The U.S. Department of Housing and Urban Development (HUD) on Thursday announced that it will be investing more than $837 million in funds from the 2022 Inflation Reduction Act and its own commitment authority to address energy costs and housing quality in underserved communities.
The funding will be distributed through HUD’s Green and Resilient Retrofit Program (GRRP), which is designed to reduce greenhouse gas emissions, address climate resilience, as well as energy and water efficiency of HUD-assisted multifamily properties located in low-income communities.
HUD Secretary Marcia Fudge will announce the funding initiative during an appearance in Center Line, Michigan.
“Under the leadership of President Biden, HUD is committed to building a more equitable and sustainable housing system and making necessary investments to reduce the impacts of climate change and improve the lives of people across America,” Secretary Fudge said in a statement. “The launch of the Green and Resilient Retrofit Program today will ensure low-income individuals and families have better access to healthy, energy efficient, and resilient homes.”
Last year’s Inflation Reduction Act allocated $837.5 million in grant and loan subsidy funding and $4 billion in loan commitment authority specifically for this program.
An additional $42.5 million will also be going toward a new HUD initiative coming in the summer, which will “collect and assess energy and water usage data from HUD-assisted multifamily housing properties to better target opportunities to save energy and water, cut costs, and reduce emissions,” according to HUD.
“Lower-income communities are often the last to obtain access to state-of-the-art efficiency, resilience, and clean energy technologies,” said Assistant Secretary for Housing and Federal Housing Administration (FHA) Commissioner Julia Gordon. “The Green and Resilient Retrofit Program will change this by providing communities with an opportunity to lead the multifamily sector in retrofitting homes to make them safer and more sustainable for the future.”
HUD noted that building owners will be able to more easily invest in new technologies designed to increase climate resilience and pay more attention to their carbon footprints. These technologies include solar panels for electricity, heat pumps for interior climate control, roofing that is more resistant to heavy winds and others.
“The program’s implementing notice and Notices of Funding Opportunity (NOFOs) released today detail a range of grant and loan funding options for multifamily housing owners with varying levels of expertise with green retrofits,” HUD said.
The agency noted that the GRRP is the first HUD program to offer simultaneous investments in energy and water efficiency, the reduction of greenhouse gas emissions, clean-energy generation and climate resilience strategies in multifamily housing.
Source: Housing Wire
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