Sign Up For Novogradac Industry Alert Emails

Department of Housing and Urban Development News Briefs - February 2024

The U.S. Department of Housing and Urban Development (HUD) awarded nearly $175 million in grant funding and loan commitments Dec. 21, 2023, to 30 HUD-assisted multifamily properties under the Green and Resilient Retrofit Program (GRRP). The awardees included the first cohort of 19 properties under the GRRP’s Comprehensive category, which funds properties with the highest need for climate resilience and energy efficiency upgrades. Another 11 properties won awards under the GRRP Elements category, which funds property owners to include climate resilience and energy and water efficiency improvements as part of a development or rehabilitation that is already in process. 

***

HUD extended the deadline in December 2023 and January for Wave 3 and Wave 4 of the GRRP Elements group to March 28 and July 31, respectively. The extended deadlines were made to allow HUD to process the high volume of applications in recent rounds and accelerate the time between the application submission and awards announcements. The Elements cohort provides gap funding for HUD-assisted multifamily properties with a recapitalization transaction that includes utility efficiency, renewable energy, carbon emission reduction and/or climate resilience measures. There is $140 million in total funding, up to $750,000 per property or $40,000 per unit.

***

The Federal Housing Finance Agency Dec. 21, 2023, announced that Fannie Mae and Freddie Mac will each be allowed to invest up to $1 billion annually in low-income housing tax credit (LIHTC) equity beginning in 2024. Fannie and Freddie previously had an $850 million annual cap. The new cap includes a provision that any annual investments beyond $500 million must be for transactions identified as having difficulty attracting investors. The investments will only be in LIHTC developments that have 30-year affordability periods.

Journal Category:

Department of Housing and Urban Development

Authors:

Novogradac

Learn more about Novogradac's expertise and many services