Federal Grants Support Energy-Efficient Upgrades in Low-Income Housing Across the U.S.
Washington has taken another significant step in its commitment to tackling the climate crisis and advancing environmental justice by announcing a new wave of funding aimed at making homes more energy-efficient and climate-resilient. The U.S. Department of Housing and Urban Development (HUD) has allocated $173.8 million in new grants and loans under its Green and Resilient Retrofit Program (GRRP). This recent allocation brings the total funding awarded under this initiative to an impressive $544 million, marking a critical milestone in the program’s progress.
HUD Acting Secretary Adrianne Todman and Chicago Mayor Brandon Johnson recently unveiled this funding at a press event held at Archer Courts in Chicago. Archer Courts, managed by Jonathan Rose Companies, received an $11.76 million grant for substantial energy efficiency renovations. This 146-unit property provides housing to low-income individuals and families, and the upgrades will significantly improve their living conditions while contributing to broader environmental goals.
The GRRP aims to retrofit 25 properties participating in HUD’s Multifamily project-based rental assistance programs. These properties, home to low-income individuals, families, and seniors, will undergo renovations that enhance energy efficiency and climate resilience. This initiative aligns with President Biden’s Justice40 Initiative, which seeks to ensure that 40 percent of the benefits from federal investments flow to disadvantaged communities. By retrofitting these homes, the program aims to reduce carbon emissions, increase resilience to extreme weather events, and maintain affordable housing for residents and building owners nationwide.
Acting Secretary Todman emphasized the multifaceted benefits of the GRRP, stating that it is designed to improve health, safety, and comfort for residents, while making HUD-assisted multifamily housing more sustainable. Senior Advisor to the President for International Climate Policy, John Podesta, highlighted the dual benefits of the program: enhancing the quality of life for low-income families and addressing climate change by making homes safer and more comfortable.
Brenda Mallory, Chair of the White House Council on Environmental Quality, underscored the program’s role in delivering environmental justice. She noted that every grant awarded under the GRRP is directed toward creating safe and climate-resilient housing for those most in need, particularly in communities at risk of flooding and other climate-fueled extreme weather events.
The GRRP Comprehensive awards target properties with the highest need for climate resilience and utility efficiency upgrades. The 25 properties selected for funding include a diverse mix of sizes and participation in various HUD programs. These properties range from small buildings with fewer than 50 units to larger complexes with over 200 units. Many of these properties face significant risks from climate hazards such as extreme heat, hurricanes, and flooding, making the upgrades essential for protecting residents and maintaining the integrity of the housing stock.
Julia Gordon, Assistant Secretary for Housing, highlighted the transformative potential of the GRRP. She noted that the variety of applications received for energy efficiency and climate resilience projects demonstrates the program’s broad appeal and its capacity to meet diverse needs across the country. The program not only addresses climate challenges but also provides safer and healthier homes for low-income families and seniors.
The Inflation Reduction Act, hailed as the largest climate investment in history, established the GRRP in 2022. The program represents a groundbreaking approach to combining energy efficiency, renewable energy generation, climate resilience, and low-embodied-carbon materials in HUD-assisted multifamily housing. By focusing on affordable housing communities, the GRRP ensures that low-income families directly benefit from these investments, aligning with the broader goals of the Justice40 Initiative.
As of March 2024, HUD has awarded $544.4 million in grants and surplus cash loans under the GRRP. This funding supports a wide range of projects, from targeted energy efficiency upgrades to major net-zero renovations. The 109 properties receiving awards span 38 states and the District of Columbia, encompassing more than 12,600 rental homes. These projects include insulation improvements, energy-efficient windows and doors, heat-resistant roofs, and advanced heating and cooling systems.
Additionally, over 700 properties have signed up for HUD’s free energy and water benchmarking service. Funded with over $40 million from the Inflation Reduction Act, this service helps property owners understand and manage their energy and water consumption, paving the way for future efficiency upgrades that can be funded under the GRRP.
The GRRP offers multiple funding options to property owners, tailored to meet varying levels of need and ambition. The Elements funding stream supports proven climate resilience and utility efficiency measures in properties already undergoing recapitalization. The Leading Edge funding stream is designed for ambitious retrofit activities aimed at achieving zero energy and advanced green certification. The Comprehensive funding stream targets properties with the highest need for climate resilience and utility efficiency upgrades, regardless of prior development experience.
The recent awards illustrate the breadth and impact of the GRRP. For instance, Sterling Senior Housing in Bellingham, WA, received $1.68 million, while Lake View Apartments in Loch Sheldrake, NY, secured $4.72 million. Notable projects also include Austin Renaissance Apartments in Chicago, IL, with $5.68 million, and Broadmeadow Apartments in Covington, TN, which received $11.84 million. Each of these projects represents a significant investment in the future resilience and efficiency of affordable housing.
In summary, the GRRP stands as a testament to the Biden-Harris Administration’s commitment to addressing climate change and promoting environmental justice. Through substantial investments in energy efficiency and climate resilience, the program is not only improving the living conditions of low-income Americans but also contributing to broader environmental and economic goals. By ensuring that the benefits of these investments reach those most in need, the GRRP embodies the principles of equity and sustainability that are central to the administration’s vision for a greener, more resilient future.
For more information on the Green and Resilient Retrofit Program and its impact, you can explore the following resources:
These links provide detailed insights into the program’s goals, funding mechanisms, and the broader context of environmental justice initiatives.
