NAHMA HUD Update: Green and Resilient Retrofit Program(GRRP)Supplemental Housing Notice Published

January 8, 2023

Dear NAHMA Members –

Please see the HUD-MFH update below on their recently published Notice H 2024-1: GRRP Supplemental Notice (attached).  Per HUD-MFH, the changes described in this notice supplements and amends the GRRP Notice (Housing Notice 2023-05); specifically, “to add flexibility in both grant and supplemental loan funds, as well as other administrative changes, that will enhance owners’ and developers’ ability to leverage GRRP for energy efficiency and climate resilience upgrades and rehabilitation projects…the changes apply to current owners who have received a GRRP award as well as to property owners that will be selected in upcoming application periods (see below).”

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Multifamily Housing Partners,

Today, HUD’s Office of Multifamily Housing Programs published a Housing Notice titled Green and Resilient Retrofit Program Supplemental to add flexibility in both grant and supplemental loan funds, as well as other administrative changes, that will enhance owners’ and developers’ ability to leverage GRRP for energy efficiency and climate resilience upgrades and rehabilitation projects. For the convenience and ease of readers see here for a version of the GRRP Notice as it has been amended by Housing Notice 2024-01.

Summary of Notice Changes

The changes made through this Notice apply to current owners who have received a GRRP award as well as to property owners that will be selected in upcoming application periods (see below). This Notice supplements and amends the GRRP Notice (Housing Notice 2023-05) in the following respects:  

  • Disbursement of GRRP Funds. These changes will make it easier for developers to finance the construction stage by allowing more of the GRRP funds to be available during construction. Specifically, it amends the disbursement requirements for the Elements, Leading Age, and Comprehensive awards by revising the process for submitting draw requests, increasing the maximum amount of award funds that may be disbursed during the construction period, clarifying a condition for when remaining funds may be disbursed, and removing the requirement for an Escrow Deposit Agreement for the disbursement of Comprehensive Award funds.  
  • Surplus Cash Loan Terms. These changes update the terms for Surplus Cash Loans by clarifying when payments begin, allowing for the payment of deferred developer fees prior to calculating the Surplus Cash for the first ten years of payments, and extending the term of any Surplus Cash Loan from 15 years to up to 30 years. 
  • Renewable Energy Credits. Provides specific guidance around how long Owners need to purchase renewable energy credits if they are relying on them in order to achieve a Leading Edge Qualifying Certification. Owners must continue to purchase credits for the greater of the duration required by the Certification or three (3) years.  
  • Davis-Bacon Wages and Project Labor Agreements. Provide participants greater predictability on labor costs by specifying when Davis-Bacon wage rates lock in. It also provides new guidance for Owners that elect to enter into project labor agreement (PLA) with unions.  
  • The notice provides additional revisions that clarify discrepancies in the original Notice and simplify administration by participants and HUD. 

Questions?

If you have any questions on this Notice, please contact [email protected] or join us on our weekly office hours on Wednesdays* from 3:00-3:30 PM EST (no registration necessary):https://zoom.us/j/99199273258

Upcoming Application Periods

As a reminder, HUD will continue to accept applications for the three GRRP cohorts by the following due dates in 2024: