HUD has awarded just over $295 million during the first four of the 12 GRRP funding rounds. HUD recently published the amended Green and Resilient Retrofit Program Supplemental Notice to enhance owners’ ability to access GRRP for energy efficiency and climate resilience upgrades and rehabilitation projects, as well as add some flexibility and make a few administrative changes. Some key changes are:

  • Disbursement of GRRP Funds. These changes will allow for more funding availability to owners during construction. The notice revises the process for submitting draw requests, increases the maximum amount of award funds that may be disbursed during the construction period, clarifies a condition for when remaining funds may be disbursed and removes the requirement that comprehensive awardees use an Escrow Deposit Agreement for the disbursement of funds.
  • Surplus Cash Loan Terms. These changes clarify when surplus cash loan payments begin, allows deferred developer fees to be paid prior to calculating the surplus cash for the first ten years of payments, and extends the term of any surplus cash Loan up to 30 years (previously 15 years).
  • Renewable Energy Credits. The notice clarifies the requirements if an owner is relying on the purchase of renewable energy credits to achieve a Leading Edge Qualifying Certification. Owners must continue to purchase the credits for the greater of the duration required by the certification or three years. 
  • Davis-Bacon Wages and Project Labor Agreements. The changes specify when Davis-Bacon wage rates lock in, providing participants greater predictability on labor costs. The notice also gives new guidance for owners that choose to enter a project labor agreement with local unions. 
  • Technical/ clarifying corrections. The notice makes a handful of additional changes to address discrepancies in the original notice and simplify implementation. 

As a reminder, there are two more application rounds for each of the three GRRP cohorts.  The due dates are as follows:

  • Leading Edge – January 31st and April 30th;
  • Comprehensive – February 28th and May 30th; and
  • Elements – March 28th and July 31st.