GRRP Frequently Asked Questions (FAQs)

What is the goal of GRRP? (5/11/2023)

GRRP was created and designed to improve the quality, health, safety, and comfort of HUD-assisted multifamily housing for its residents, while reducing the greenhouse gas emissions produced by HUD’s assisted portfolio. GRRP provides funds to invest in utility efficiency, renewable energy generation, green and healthy housing, and efforts to make homes that serve the lowest-income Americans and a disproportionate number of older adults and persons with disabilities – who often live in communities particularly vulnerable to the impacts of climate change – more resilient against extreme weather events.

HUD expects properties participating in GRRP, to the greatest extent feasible, to: 

• Substantially improve utility efficiency and reduce emissions, including moving properties toward net zero, zero ready, or zero over time energy and emissions performance standards; 
• Address climate resilience, including synergies that can be achieved between efficiency, emissions reduction, and resilience investments; 
• Enhance indoor air quality and resident health; 
• Implement the use of zero-emission electricity generation and energy storage; 
• Minimize embodied carbon and incorporate low-emission building materials or processes; and 
• Support whole-building electrification. 

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Who is eligible for GRRP funding? (5/11/2023)

In general, eligibility is focused on properties assisted under the Section 8 Project-Based Rental Assistance (PBRA) program, including properties that converted under the RAD Program prior to September 30, 2021; the Section 202 Housing for the Elderly program; the Section 811 Housing for Persons with Disabilities program; or the Section 236 program. For complete information on eligibility, please see the Notices of Funding Opportunity on hud.gov/grrp.

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Why are there three GRRP “cohorts”? How do I determine which one I should apply for? (5/11/2023)

HUD has developed three paths or “cohorts” for owners to participate in GRRP so that the funds could be broadly accessible to as many eligible owners as possible:

• The “Elements” NOFO provides funding to owners to add proven and meaningful climate resilience and energy efficiency measures to the construction scopes of in-progress recapitalization transactions. Since these recapitalizations will lock in technologies for many years to come, GRRP funding will make it possible for Owners to substitute greener or more resilient building components or fixtures in their existing plans. Elements awards are designed for properties already planning renovations so they can add or preserve green or resilient elements in the existing scopes of work. Maximum awards of up to $750,000 per property, with a per unit cap of $40,000.
• The “Leading Edge” NOFO provides funding for retrofit activities to achieve ambitious green certifications which also include climate resilience components. Provided during any stage of a recapitalization effort, the Leading Edge Awards provide resources to complement an Owner’s existing financing strategy, allowing them to design the recapitalization to the highest standards of energy efficiency and climate resilience. Leading Edge awards are designed for Owners aiming to quickly meet ambitious carbon reduction and resilience goals without requiring extensive collaboration with HUD. Maximum awards of up to $10,000,000 per property, with a per unit cap of $60,000.
• The “Comprehensive” NOFO will provide funding to initiate recapitalization investments designed from inception around both proven and innovative measures, including ambitious green building standards or measures, renewable energy generation, use of structural building materials with lower Embodied Carbon, and climate resilience investments. Comprehensive awards prioritize properties with high need for investments in energy efficiency 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. Comprehensive Awards are designed for the widest range of properties, including those that have not yet developed a recapitalization plan. Maximum awards of up to $20,000,000 per property, with a per unit cap of $80,000.

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Each application should reference only one HUD-recognized property in iREMS. Multiple buildings that operate under a single iREMS number should be submitted as a single application. An owner proposing to combine two iREMS properties that will be financed and managed as a single project in the future must submit separate GRRP applications for each iREMS property. If both projects are selected, the owner can proceed with their plans to pursue both properties under a single financing plan. If only one property is selected, the owner can proceed with its plans to pursue both properties under a single financing plan, but with a GRRP award sized only for the awarded property.  Alternatively, the owner could modify their plans and finance the one awarded property on its own.

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What if I'm not able to benchmark in Portfolio Manager because my utility company won't provide utility consumption data? (5/11/2023)

Many utility providers either provide whole building, aggregated consumption data upon request or will release unit-by-unit consumption data upon receipt of signed tenant release forms. Owners are encouraged to contact their utility provider to inquire about these options. However, some owners may be unable to acquire sufficient data to benchmark in Portfolio Manager. To apply to the Comprehensive cohort, owners may choose to submit a completed Multifamily Building Efficiency Screen Tool (MBEST) instead. You can find the both the MBEST tool and an instructional video on how to complete it on hud.gov/grrp.

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Which cohort would I apply to if my proposed work is substantial enough for a Comprehensive-sized award, but I do not need HUD-contractor assistance? (5/11/2023)

Owners interested in large-scale retrofits with a development team already in place who do not otherwise need contractor support may be interested in the Leading Edge cohort. While the Leading Edge NOFO is designed for owners with a capable development team and a vision for achieving an advanced green certification, such an owner could still utilize the Comprehensive NOFO. Comprehensive participants may submit their own reports (e.g. Capital Needs Assessment) and, if deemed to meet HUD’s standards, these existing reports can be used for the property’s assessment suite in lieu of HUD-commissioned reports. HUD’s Multifamily Assistance Contractor (MAC) will work with the owner to review existing reports and conduct any additional assessments needed to satisfy the requirements of the GRRP Notice.  Following the assessment suite, the HUD-provided contractor will work with the owner to develop the scope of work for the property and ensure it addresses all items found in the Assessment Suite, and that scope of work and the transaction plan are complete and acceptable to HUD.

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See Section IIIA.1 of the GRRP NOFOs. Only Rental Assistance Demonstration (RAD) PBRA Contracts executed on or before September 30, 2021 are eligible for GRRP. RAD PBV contracts and public housing projects in the process of converting under are not eligible for GRRP.  Projects that are assisted by a 202 PRAC are eligible for GRRP, but cannot convert under RAD until after the GRRP Award has closed.

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Owners applying for GRRP can choose between requesting their award either as a surplus cash loan or as a grant. The owner’s decision does not impact the selection and award determination, and owners may have the option to switch from the selection made in the GRRP application with the approval of HUD.   GRRP Grants will require a minimum 25 year affordability period and will not be required to be repaid.  Some owners, particularly those assisted under Section 202 or Section 811 PRACs may be required to take grants to comply with other rules governing their HUD assistance (e.g. that PRAC funds cannot be used to pay debt service).  GRRP Surplus Cash Loans will require a minimum 15 year affordability period and will be repaid from 25% of Surplus Cash (Elements Awards) or 50% of Surplus Cash (Leading Edge and Comprehensive Awards).   Some owners may prefer the Surplus Cash Loans for the shorter affordability period and to avoid tax and compliance implications of grants.  Owners should consult with tax and other professionals to determine which form of award should be selected in the application.

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GRRP was designed to maximize the impacts of the funds provided in the Inflation Reduction Act and reach the greatest number of properties and resident homes. To this end, GRRP grant and loan amounts have been sized to cover the anticipated costs of making the green and resilient improvements, while recognizing that retrofits of a property often involve the replacement of other standard lifecycle building systems and components that owners would finance. HUD expects that some projects have greater property needs than GRRP can cover. Owners are encouraged to use other funds including mortgage proceeds, Low Income Housing Tax Credits, state and local funds, and reserves other available funds to finance the overall project scope.

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Owners are encouraged to engage tenants throughout the planning and retrofit processes. At a minimum, owners must provide written notifications to residents about property selection and retrofit activities. All owners must also hold resident meetings, though requirements differ by cohort. As you plan your scope of work, we recommend consulting closely with the property management agent to understand and address frequent sources of tenant complaints or areas of high utility use.  Please refer to Housing Notice H 2023-05 section 8 for more information about resident engagement.

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