25,000 Apartment Units Set to Be Green With $250M in Government Funds

How will 25,000 apartment units become more energy efficient in the next two years? With the help of approximately $250 million in grants and loans being offered by the U.S. Department of Housing and Urban Development (HUD). This money is being made available through the American Recovery and Reinvestment Act of 2009 (Recovery Act), which was recently signed into law by President Barack Obama. It is designed to create thousands of "green collar jobs" as workers retrofit older federally assisted multifamily apartment developments with the next generation of energy-efficient technologies.

"HUD will begin to accept applications starting June 15, begin obligating funds by September 2009, and owners will begin making improvements immediately thereafter (owners must complete work within two years)," HUD Spokesman Brian E. Sullivan tells MHN.

HUD's new Green Retrofit Program for Multifamily Housing will offer up to $15,000 per residential unit to reduce energy costs, cut water consumption, and improve indoor air quality. Eligible applicants must already be HUD assisted, either through Section 8 project-based rental assistance or the Department's Section 202 (elderly) and Section 811 (disabled) programs.

"This funding will not only improve our housing stock, but will lower energy costs and create green jobs in the process," says HUD Secretary Shaun Donovan. "This administration is working overtime to ensure that Recovery Act funding will not only jumpstart America's economy, but will also put us on a path toward energy independence while improving living conditions for tens of thousands of lower income families."

Grants and loans provided through this program will help private landlords and property management companies in cutting heating and air conditioning costs by installing more efficient heating and cooling systems as well as to reduce water use by replacing faucets and toilets. Additionally, these Recovery Act funds will produce other environmental benefits by encouraging the use of recycled building materials, reflective roofing and low-VOC products to reduce potentially harmful "off gassing." Financial health as well as underwriting and a physical evaluation of the property will be considered while disbursing these funds.

The Recovery Act includes $13.61 billion for projects and programs administered by HUD, nearly 75 percent of which was allocated to state and local recipients soon after the signing of law. The remaining 25 percent of funds are expected to be awarded through a competitive grant process in the coming months.