Today, the U.S. Department of Housing and Urban Development released Notice H 09-02, which provides guidance on the Green Retrofit Program for Multifamily Housing (GRP), created under the American Recovery and Reinvestment Act. The notice provides details on program implementation, the application process, eligible projects and the approval and allocation process.
The Green Retrofit Program for Multifamily Housing provides $250 million in the form of loans and grants to qualified projects for energy retrofit and green investments. The funds are available for Section 8, Section 202, Section 811 and USDA Section 515 properties with project-based rental assistance. The program provides performance-based financial incentives for owners, including:
- Pre-Development Incentive – 1% of green retrofits, up to $10,000, paid at closing;
- Efficiency Incentive – 3% of green retrofits, up to $30,000, paid upon completion of the rehab;
- Incentive Performance Fee – 3% of collected revenue, paid annually;
- Optional Targeted Job Creation Incentive – 10% of qualified expenditures, up to $25,000 for contracting with eligible residents or eligible business concerns (pursuant to HUD Section 3 guidance)
Successful applications require 14 items of required information, 15 owner certifications and 8 owner commitments. These include but are not limited to: feasibility assessments, financial records, utility releases, rent loss and operating expense assumptions, eligibility certifications, physical condition assessments, and a green operations and maintenance plan.
Applications for GRP funding will be accepted beginning June 15 and will be accepted until no funds remain. read more…
