Multifamily Housing Set to Receive Billions in Loans and Grants for Energy Efficiency Improvements
The Biden administration has recently announced the availability of over $837 million in grants and loan subsidy funding to finance energy-efficient and climate-resilient upgrades in low-income multifamily housing. This initiative aims to address the disparity in green technology adoption by prioritizing underserved communities that often face higher energy bills and adverse health effects due to outdated infrastructure.
Under the newly created Green and Resilient Retrofit Program (GRRP) introduced by the U.S. Department of Housing and Urban Development (HUD), building owners will have the opportunity to secure financing for various green retrofitting projects. These projects may include the installation of electric heat pumps, solar panels, and energy-efficient windows. By implementing these upgrades, harmful greenhouse gas emissions will be reduced, while energy and water savings will be achieved. This will ultimately help residents lower their energy costs and enhance their overall well-being.
According to Sara McTarnaghan, a senior research associate for the Urban Institute, the transition to electric stoves from gas stoves, for instance, can significantly improve indoor air quality. Additionally, electric heat pumps have gained popularity due to their ability to transfer heat using electricity, offering a public health solution as extreme heatwaves become more frequent. In response to a devastating heatwave in 2021 that resulted in numerous fatalities, Oregon lawmakers approved millions of dollars to assist landlords in covering heat pump installation costs.
Moreover, the green retrofitting initiative will enhance the safety and resilience of buildings by incorporating fire-resistant roof installations and other upgrades. Given the escalating impacts of climate change, including wildfires, floods, and extreme weather events, it is crucial to make buildings more resilient to protect residents. This program aims to ensure that the benefits of the nation’s green transition are accessible to everyone, regardless of their income level.
The GRRP is aligned with the Biden administration’s environmental justice and climate executive orders, recognizing that individuals in HUD-assisted housing are often from marginalized communities, including people of color, people with disabilities, and other underserved populations. Prioritizing these communities is of utmost importance, emphasized McTarnaghan.
This program stands as HUD’s first-ever initiative that simultaneously invests in energy and water efficiency, greenhouse gas emissions reductions, clean energy generation, and climate resilience strategies in multifamily housing. The department anticipates supporting hundreds of projects by providing assistance to property owners with varying levels of expertise in implementing green retrofits. While there have been numerous incentives and initiatives targeting individual homeowners, the gap in funding for multifamily housing, especially affordable properties, has persisted. HUD’s intervention aims to bridge this gap by offering financial support and technical assistance.
However, it is crucial to acknowledge that the program alone cannot address the complete retrofitting needs of all buildings. McTarnaghan highlights the importance of identifying additional funding sources, such as other provisions within the landmark climate law or recovery funds allocated following disasters, to supplement the GRRP funds.
Additionally, as part of the Inflation Reduction Act, approximately $42 million will be allocated to collect and assess energy and water usage data in HUD-assisted multifamily housing. This information will help identify the most effective strategies to reduce consumption and decrease greenhouse gas emissions.
HUD will host a webinar next Tuesday to provide further details about the program, enabling stakeholders to gain a comprehensive understanding of its implementation.
