IRA Funding Is Funneling Through to Multifamily
Columnist Lew Sichelman on the program that awarded grants and loans for sustainable projects at 28 properties.
Twenty-eight multi-family properties will share in $18 million in awards under the first wave of Inflation Reduction Act funding to support energy efficiency and climate resilience. Together, they account for 3,400 assisted rental units.
The largest single amount was $750,000, either as a grant or as a loan, according to the Department of Housing and Urban Development. Some owners received funding for more than one property.
Enterprise Community Development received two loans of $750,000 each—one for Edgewood Commons V in Washington, D.C., and the other for Phase II of the Greens at Irvington Mews in Baltimore. The Silver Spring, Md., company also picked up a $381,850 loan for Park Heights Place, also in Baltimore.
POAH, a national non-profit based in Boston, also won three awards, as did Delshah, a private equity firm based in New York City, and Related Affordable, a wing of the New York City-based Affordable Cos.
All three of POAH’s awards were grants of $750,000 each. Delshah’s were the same, while Related’s included two loans and a $750,000 grant.
The smallest award was a $192,000 grant, which went to the L+M Management Fund for Revive 103 in the Big Apple.
The money comes from the Green And Resilient Retrofit Program and is intended for owners who participate in HUD’s Assisted Multifamily Housing programs. According to HUD, the GRRP is the first government program to simultaneously invest in energy efficiency, energy generation and climate resilience.
HUD Secretary Marsha Fudge hailed the GRRP program as the “largest investment in climate resiliency” in a generation. The program is funded under the Inflation Reduction Act.
Solar, windows and wind
HUD did not report what’s in store for every property, But, according to a press release, the first wave of funding will cover adding solar panels, upgrading HVAC systems and replacing windows.
Under the GRRP program, owners will be able to invest in a range of technologies, such as geothermal energy systems, heat pumps, and wind- and fire-resistant roofing.
Additional rounds of funding will be awarded throughout this year and into next year, HUD said.
The first round went to owners of properties participating in HUD’s Multifamily Section 8 Project-Based Rental Assistance program, Section 202 Supportive Housing for Low-Income Elderly, and Section 811 Supportive Housing for Low-Income Persons with Disabilities.
The funding commitments came from GRRP’s Elements award category, which covers properties that are already in the development process or under rehabilitation.