The Green and Resilient Retrofit Program (GRRP) provides owners of HUD-assisted multi-family complexes with funding to support programs aimed at reducing carbon emissions, improving utility efficiency, strengthening the property’s resistance to climate hazards, and incorporating sources of renewable energy.
Before qualifying for the GRRP Leading Edge cohort funding, property owners must commit to achieving a green certification listed in the Leading Edge Notice of Funding Opportunity (NOFO). The project can be at any planning stage to qualify, but property owners are responsible for creating the project design and handling the work to address carbon emissions reduction, utility efficiency, and climate resilience needs.
Project development teams can leverage additional financing sources to supplement funding without relying on additional assistance from HUD.
What Does Leading Edge Cohort Funding Cover
The GRRP has a $400 million budget to provide funding up to $10 million per property or $80k for each unit. The funds can be used to cover purchasing and construction costs necessary to receive green certification. Property owners are responsible for covering the project’s balance.
Owners of HUD-assisted MUD properties can submit their applications four times throughout the year.
- July 2023
- October 2023
- January 2024
- April 2024
The Application Process for Leading Edge Cohort Funding
Eligibility: HUD-support MUD properties that are committing to achieving advanced green certification. A complete list of eligibility requirements is available in Section 3 of the Leading Edge NOFO.
Selection: Eligible properties are ranked based on their need for energy efficiency improvements as listed in the Multifamily Building Efficiency Screening Tool (MBEST).
It includes HUD properties in the region and non-metro areas.
Submission: Applications for Leading Edge Cohort Funding must include the following information.
- An application form for Leading Edge that includes the property address, proposed sources and uses of funding, and the selected green certificate the property is aiming to achieve.
- Credentials from the project’s development team, along with a determination from an engineer or architect indicating green certification is achievable.
- Submission of Environmental Due Diligence
- Reduce energy usage by at least 25% to achieve green certification
- Discuss and ensure residents’ needs are being met
- Extend the property’s commitment to affordable housing for at least five years past current use restrictions and potentially up to 25 years.
The rehab project must comply with,
- Section 3 employment requirements
- Build America, Buy America statues
- Davis-Bacon prevailing wage rates for all construction employees
For more information, property owners can check Housing Notice H 2023-05.
Examples of Leading Edge Cohort Funding Applicants
Some examples of the GRRP working to improve climate resiliency and reduce energy usage include the following.
Example 1: An apartment complex was renovated around 20 years ago and is using equipment dependent on fossil fuels. The property owner has funding for a rehab focusing on improving energy efficiency. With a Leading Edge award, the property owner can incorporate sustainable energy sources like solar and wind turbines. The award will also support Fortified Silver roofing and energy-efficient window upgrades. Completion of the project will qualify the MUD property for PHUS REVIVE certification.
Example 2: A villa owner is in the beginning stages of planning a low-income renovation financed by tax credits. A Leading Edge award will allow the property owner to install battery-pack-powered solar panels. The completed installation qualifies the property of a LEED Multifamily Core Silver certification with a Zero Energy designation.
Funding and Incentive Management with Incentive Rebate360
To learn more about the Leading Edge cohort funding, click here for an informative video. MUD property owners can also contact Incentive Rebate360 for additional clarification and incentive recovery management services.
To learn more about the HUD GRRP Leading Edge 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.