Two transactions in Illinois will fund electrification, climate resilience, and energy efficiency renovations in Chicago and Champaign, benefiting low-income seniors.
Today, the U.S. Department of Housing and Urban Development (HUD) announced the recent completion of two transactions totaling $1.5 million to finance energy efficient and climate resilient improvements for affordable homes in Illinois under the Green and Resilient Retrofit Program (GRRP). The rehabilitations will update existing common spaces, including replacing roofing, windows, doors, and lighting for very low-income seniors. Renovations will also include upgrades to mechanical, plumbing, and electrical systems, electrification, insulation, renewable energy integration, and stormwater management.
“I’m proud to serve in an Administration that’s investing in an energy-efficient, climate resilient future for all communities,” said HUD Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon. “Today, we are delivering $1.5 million from President Joe Biden’s Inflation Reduction Act to install high-efficiency windows, support full electrification, and boost solar energy for Illinois families.”
The first project is a $750,000 loan to Brainerd Senior Center, a 60-unit, six-story building in Chicago, Illinois. The second is a $750,000 grant to Round Barn Manor, a 156-unit, two-story building in Champaign, Illinois. These transactions are the first to use GRRP funds for construction projects in Illinois.
“We are pleased to provide Green and Resilient Retrofit Program funding to Brainerd Senior Center and Round Barn Manor to help upgrade their properties, reduce carbon emissions, and make seniors’ homes safer and more energy efficient,” said Ethan Handelman, HUD’s Deputy Assistant Secretary for Multifamily Housing Programs. “Funding this work in Illinois and throughout the country to improve the lives of residents is exactly what this Administration intended by allocating $1 billion in funding for the program through the President’s Inflation Reduction Act.”
Constructed in 2000, Brainerd Senior Center will update all 60 units as well as existing common spaces, which includes replacing roofing, windows, insulation, doors, lighting, electrification improvements, and more. HUD provides rental assistance under the Section 811 Project Rental Assistance program to 12 of the households at the property. The project is also participating in the City of Chicago Decarbonization program, which enables HVAC system updates and the replacement of appliances with electric and energy-efficient alternatives.
Built in 1978, Round Barn Manor will see improvements to vital systems such as mechanical, plumbing, and electrical and the functions of the community spaces. Round Barn Manor will also use Federal Solar Investment Tax Credits (ITC) to implement a major system improvement by installing a ground-mounted solar system adjacent to the site. HUD provides rental assistance under its Section 8 project-based rental assistance program to all of the households at the property.
About GRRP
Funded under the Inflation Reduction Act, GRRP provides funding for direct loans and grants to make improvements to HUD-subsidized properties serving very low-income families, seniors, and persons with disabilities. Properties were selected through three distinct funding opportunities designed to meet the diverse needs of properties across the country. Funding can be used to improve energy or water efficiency, enhance indoor air quality, install zero-emission electricity generation and energy storage equipment, acquire low-emission building materials, implement building electrification strategies, or address and improve climate resilience. The program seeks to amplify recent technological advancements in energy and water efficiency and to bring a new focus on preparing for climate hazards by reducing residents’ and properties’ exposure to hazards and by protecting life, livability, and property when disaster strikes.
HUD has offered funding through three GRRP award types targeting HUD-subsidized affordable housing:
- Elements awards provide modest funding for property owners to incorporate proven and impactful climate resilience and carbon reduction measures to the construction scopes of an in-progress recapitalization transactions. Property owners use the funds to add green or resilient elements to existing scopes of property rehabilitation.
- Leading Edge awards provide funding for property owners to meet ambitious carbon reduction, renewable energy generation, and resilience goals without requiring extensive technical assistance from HUD.\
- Comprehensive awards provide funding for properties with the highest need for climate resilience and energy efficiency upgrades to undertake a deep retrofit, focused on innovative energy efficiency and greenhouse gas emissions reductions, green and healthy housing measures, renewable energy generation, and climate resilience investments. Comprehensive Awards are designed for the widest range of properties and are accompanied by direct support from HUD to achieve the retrofit.
FACT SHEET: Green and Resilient Retrofit Program Progress to Date
- GRRP is the first HUD program to simultaneously invest in energy efficiency, renewable energy generation, climate resilience, and low-embodied-carbon materials in HUD-assisted multifamily housing.
- As of July 23, 2024, GRRP funding has been awarded to 171 properties and more than 20,700 rental homes, to make them greener, healthier, and safer for low-income households, seniors, and persons with disabilities. The projects span the range from targeted upgrades to major net-zero renovation for properties in 38 states, the District of Columbia, and Puerto Rico.
- As of July 23, 2024, HUD has awarded more than $773.4 million in grants and surplus cash loans under the GRRP; $393.6 million in grants and $379.7 million in surplus cash loans.
- GRRP projects range from targeted upgrades supplementing in-progress recapitalization efforts to major net-zero renovations.
- Approximately 900 properties have also signed up for HUD’s free energy and water consumption benchmarking service, also funded through the Inflation Reduction Act. With benchmarking, HUD-assisted housing property owners can better understand the energy and water consumption at their properties to assess potential upgrades.
- In addition to ensuring that participating properties undergo deep retrofit work to increase their efficiency, make them greener and more resilient to climate hazards, it will also serve to preserve these units as affordable housing long-term.
More program information is available on the GRRP Website.