This blog is part of a series on the HUD GRRP Program. Click here read the first blog in the series, A Basic Overview of the HUD GRRP Program.
Part of the HUD GRRP, the Elements cohort funding is available to qualifying properties in the process of improving utility efficiency, transitioning to renewable energy, reducing carbon emissions, or boosting climate resilience measures. Funds from the Elements program can be applied to the purchase or preservation of specific climate-resilient or green products necessary to complete the project.
The Green and Resilient Retrofit Program at a Glance
Owners of HUD multifamily dwellings may qualify for funding to improve energy efficiency, implement renewable energy sources, lower carbon emissions, and improve their property’s resilience to climate-induced hazards.
Three facts MUD owners should know about the Elements program are,
- The program provides gap funding for climate resiliency or green initiatives in ongoing projects.
- Projects should have the necessary materials and be ready to finish within 12 months.
- Funding only covers specific products listed in the Notice of Funding Opportunity (NOFO). Examples of covered items include solar panels, heat pumps, and sustainable building materials.
Applicants have four chances to apply for funding in 2023 and 2024.
- June 2023
- September 2023
- January 2024
- March 2024
What HUD GRRP Covers
Elements cohort funding has a $140 million budget. The GRRP will cover up to $750k per property or $40k per individual apartment/unit. The program helps cover the costs associated with project construction. Property owners are responsible for the remaining balance.
How to Apply
The application process is relatively simple. Here’s what you need to know.
Eligibility: MUD properties with an advanced project/s underway. A complete list is included in Section 3 of the Elements NOFO.
Selection: Eligible MUD properties are ranked on the priority categories found in Section V of the Elements NOFO. Some examples of priority categories include committing to electrification throughout the property (moving away from fossil fuels), working toward green certification, or becoming a participant in the Better Buildings/Climate Challenge.
Submission: The following information should be included in the application.
- Property information, proposed sources and uses, operation (project timeline), and Element program selected investments.
- Description of the proposed work
- Documentation of the project transaction status, including letters of commitment from outside funding sources
- Verification of a third-party’s assessment of the project
- Bids substantiating the requested Elements funding.
To learn more about the HUD GRRP Elements Cohort Funding program, click on this link to watch a short and informative video. IF you have any questions surrounding the information, we would be happy to assist.
Elements Cohort Funding Requirements
The key requirements to qualify for Elements Cohort funding are,
- Complete project installation per Elements investments
- Ensure your tenants’ needs are being met
- Extend the property’s affordability commitment by at least 5 years beyond existing use restrictions, and potentially up to 25 years
- Comply with Build America, Buy American, and Section 3 employment requirements
- Complete utility benchmarking after rehab
- All owner requirements are detailed in Housing Notice H 2023-05
Here are a couple of examples of approved Element cohort funding applicants.
- The Southside Apartment complex was awarded 4% tax credits to rehab the buildings. Rising construction costs are forcing the architect to remove certain elements from the plan like solar panels and high-efficiency windows. The Elements funding is allowing these approved items to be included in the project.
- A nonprofit developer just received a Section 202 Capital Advance award to convert a historic school into affordable senior housing. Since the building is in an area prone to climate hazards, the Element funding will help cover costs like installing a reflective roof coating to help residents stay cooler. The funding will also cover expenses associated with a rainwater harvest system to supplement landscape watering.
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To learn more about the HUD GRRP Elements Cohort funding or any of the other HUD GRRP programs contact us today. Call 480-653-8180, email [email protected], or schedule a call that fits your needs by clicking the button below.