April updated Green and Resilient Retrofit Program (GRRPE) Elements MODIFICATION FY24_FR-6700-N-91B.pdf

U.S. Department of Housing and Urban Development

Office of Housing

Green and Resilient Retrofit Program (GRRPE) Elements MODIFICATION FY24

FR-6700-N-91B

07/31/2024

Table of Contents

OVERVIEW

I. FUNDING OPPORTUNITY DESCRIPTION

A. Program Description

B. Authority

II. AWARD INFORMATION

A. Available Funds

B. Number of Awards

C. Minimum/Maximum Award Information

D. Period of Performance

E. Type of Funding Instrument

III. ELIGIBILITY INFORMATION

A. Eligible Applicants

B. Ineligible Applicants

C. Cost Sharing or Matching

D. Threshold Eligibility Requirements

E. Statutory and Regulatory Requirements Affecting Eligibility

F. Program-Specific Requirements

G. Criteria for Beneficiaries

IV. APPLICATION AND SUBMISSION INFORMATION

A. Obtain an Application Package

B. Content and Form of Application Submission

C. System for Award Management (SAM) and Unique Entity Identifier (UEI)

D. Application Submission Dates and Times

E. Intergovernmental Review

F. Funding Restrictions

G. Other Submission Requirements

V. APPLICATION REVIEW INFORMATION

A. Review Criteria

B. Review and Selection Process

VI. AWARD ADMINISTRATION INFORMATION

A. Award Notices

B. Administrative, National and Departmental Policy Requirements and Terms for HUD Applicants and Recipients of Financial Assistance Awards

C. Reporting

D. Debriefing

VII. AGENCY CONTACT(S)

VIII. OTHER INFORMATION

APPENDIX

APPENDIX I: HUD’s Guidance for Preparing a Budget Request and Narrative

APPENDIX II: Minimum Standards for Benchmarking Data Entered Into EPA's Portfolio Manager

APPENDIX III: Eligible Elements Investments

Program Office:

Office of Housing Funding Opportunity Title:

Green and Resilient Retrofit Program (GRRPE) Elements MODIFICATION FY24 Funding Opportunity Number:

FR-6700-N-91B

Assistance Listing Number (formerly CFDA Number):

14.021 Due Date for Applications:

07/31/2024

OVERVIEW

The U.S. Department of Housing and Urban Development (HUD) issues this Notice of Funding Opportunity (NOFO) to invite applications from eligible applicants for the program and purpose described within this NOFO. You, as a prospective applicant, should carefully read all instructions in all sections to avoid sending an incomplete or ineligible application. HUD funding is highly competitive. Failure to respond accurately to any submission requirement could result in an incomplete or noncompetitive proposal.

In accordance with Title 24 part 4, subpart B of the Code of Federal Regulations (CFR), during the selection process (which includes HUD’s NOFO development and publication and concludes with the award of assistance), HUD is prohibited from disclosing covered selection information.

Examples of impermissible disclosures include: 1) information regarding any applicant’s relative standing; 2) the amount of assistance requested by any applicant; and 3) any information contained in the application. Prior to the application deadline, HUD may not disclose the identity of any applicant or the number of applicants that have applied for assistance.

For further information regarding this NOFO, direct questions regarding the specific requirements of this NOFO to the agency contact identified in section VII.

Paperwork Reduction Act Statement. In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3501- 3520) (PRA), the Office of Management and Budget (OMB) approved the information collection requirements in this NOFO. HUD may not conduct or sponsor, and a person is not required to respond to a collection of information unless the collection displays a valid OMB control number. This NOFO identifies its applicable OMB control number, unless its collection of information is excluded from these requirements under 5 CFR part 1320.

OMB Approval Number(s):

2502-0624 https://www.ecfr.gov/current/title-24/subtitle-A/part-4/subpart-B https://www.ecfr.gov/current/title-5/chapter-III/subchapter-B/part-1320?toc=1 https://www.ecfr.gov/current/title-5/chapter-III/subchapter-B/part-1320?toc=1

I. FUNDING OPPORTUNITY DESCRIPTION

A. Program Description

1. Purpose

The Green and Resilient Retrofit Program (GRRP) is authorized and funded by Section 30002 of the Inflation Reduction Act of 2022, (Public Law 117-169) (the “IRA”), titled “Improving Energy Efficiency or Water Efficiency or Climate Resilience of Affordable Housing.” The program seeks to amplify recent technological advancements in utility efficiency and energy generation, bring a new focus on preparing for climate hazards by reducing residents’ and properties’ exposure to hazards, and protecting life, livability, and property when disaster strikes.

GRRP is the first HUD program to simultaneously invest in energy efficiency, greenhouse gas emissions reductions, energy generation, green and healthy housing, and climate resilience strategies specifically in HUD-assisted multifamily housing. All the investments under the GRRP will be made in affordable housing communities serving low-income families in alignment with the Administration’s Justice40 initiative. GRRP investments will directly benefit residents of HUD-assisted housing, each a Justice40 disadvantaged community, by improving the quality, health, safety, and comfort of their housing, by strengthening their homes to be more resilient against extreme weather events, and by enhancing their ability to remain in their homes during the recovery from such events. Further, GRRP will advance the Administration’s environmental justice efforts by investing in the quality and resilience of HUD’s rent-assisted portfolio, properties serving the lowest-income Americans and a disproportionate number of older adults and persons with disabilities, often living in communities disproportionately vulnerable to the impacts of climate change.

HUD is offering GRRP funding through three separate cohorts designed to meet the different needs of HUD’s assisted multifamily portfolio. The three cohorts of awards will be implemented through three parallel Notices of Funding Opportunity (NOFOs), as follows:

• The Elements NOFO provides modest awards designed to add proven and highly impactful climate resilience and carbon reduction measures to the construction scopes of in-progress or recently closed recapitalization transactions.

• The Leading Edge NOFO provides funding to owners aiming to quickly meet ambitious carbon reduction, renewable energy generation, use of building materials with lower embodied carbon, and resilience goals without requiring extensive technical assistance from HUD.

• The Comprehensive NOFO provides funding to initiate recapitalization investments designed from inception around deep retrofits, focused on innovative energy efficiency and greenhouse gas emissions reductions, green and healthy housing measures, renewable energy generation, use of building materials with lower embodied carbon, and climate resilience investments. Comprehensive Awards are designed for the widest range of properties, including those that have not yet developed a recapitalization plan.

To the greatest extent feasible, these approaches will:

• Substantially improve energy and water efficiency and reduce emissions, including moving properties toward net zero, zero ready, or zero over time energy and emissions performance standards;

• Address climate resilience, including synergies that can be achieved between efficiency, emissions reduction, and resilience investments;

• Enhance indoor air quality and resident health;

• Implement the use of zero-emission electricity generation and energy storage;

• Minimize embodied carbon and incorporate low-emission building materials or processes; and

• Support building electrification.

This NOFO makes available approximately $140,000,000 for the Elements Awards and describes the eligibility and process to select properties for this funding. Housing Notice H 2023- 05 as amended describes the program requirements that will govern properties and the use of funds after selection. This NOFO is designed to target eligible properties that are pursuing a recapitalization. They must have recently closed on their transaction or be materially advanced but not yet closed on financing and in both cases, have an opportunity to make these transactions greener and more climate resilient through targeted upgrades of specific building components.

These awards, provided in the form of GRRP Grants or Surplus Cash Loans, will enable owners to include proven and highly impactful climate resilience, energy efficiency, and emission reduction measures in their construction scopes of work.

Applications for eligible properties which are submitted in a timely manner will be ranked based on priority categories as set forth in this NOFO.

Applicants selected for funding under this NOFO will receive a commitment letter with a conditional funding award up to the lesser of a) $40,000 per unit at the property, b) $750,000, or

c) the cost of eligible GRRP program investments. Funding shall be available to include proven, high-impact climate resilience strategies, utility efficiency investments, emission reduction measures, and energy generation technologies in their construction scopes of work, which items must be selected from the options set forth in the rules governing this NOFO.

After selection, the applicant will be subject to the terms and requirements set forth in Housing Notice H 2023-05 as amended. Generally, 1) the project must reach financial closing, including the execution of grant and/or loan agreements and other required closing documents, within the timelines set forth in the Notice, 2) property rehabilitation must begin promptly after the financial closing, and 3) the owner must provide information to HUD to confirm completion of the eligible program investments and support ongoing program evaluation. HUD resources may be available to support the Owner’s required benchmarking activities.

An owner must select which cohort is most appropriate for any particular property and may submit an eligible property to only one of the NOFOs available under the GRRP. Once an application for an eligible property has been accepted for review under one of the GRRP NOFOs, any other applications under the GRRP NOFOs for the same property will be considered ineligible. Within a single NOFO, the most recent complete application submitted shall be reviewed and previously submitted applications under the same NOFO are considered invalid. If an owner determines they would like to submit an application under a different NOFO, the owner must withdraw the pending application prior to submitting a new one for a different NOFO. An eligible property cannot receive an award under more than one NOFO.

Housing Notice H 2023-05 as amended provides more detail to guide an owner in choosing a

NOFO.

Further program guidance is provided in Housing Notice H 2023-05 as amended, which all potential applicants should review alongside this NOFO. Capitalized terms used but not defined in this NOFO shall have the definitions ascribed to them in Housing Notice H 2023-05 as amended.

2. HUD and Program-Specific Goals and Objectives

This NOFO supports HUD’s Strategic Plan for Fiscal Years (FY) 2022-2026 to accomplish HUD’s mission and vision. Each of the five goals in the Strategic Plan include what HUD hopes to accomplish, the strategies to accomplish those objectives, and the indicators of success.

However, of the five goals only those applicable to this NOFO are identified below.

You are expected to align your application to the applicable strategic goals and objectives below.

Use the information in this section to describe in your application the specific goals, objectives, and measures that your project is expected to help accomplish. If your project is selected for funding, you are also expected to establish a plan to track progress related to those goals, objectives, and measures. HUD will monitor compliance with the goals, objectives, and measures in your project.

Applicable Goals and Objectives from HUD’s Strategic Plan

1. Strategic Goal 1: Support Underserved Communities Fortify support for underserved communities and support equitable community development for all people.

2. 1A: Advance Housing Justice Fortify support for vulnerable populations, underserved communities, and Fair Housing enforcement.

3. 1B: Reduce Homelessness Strengthen Federal, State, Tribal, and community implementation of the Housing First approach to reducing the prevalence of homelessness, with the ultimate goal of ending homelessness.

4. 1C: Invest in the Success of Communities Promote equitable community development that generates wealth-building for underserved communities, particularly for communities of color.

5. Strategic Goal 2: Ensure Access to and Increase the Production of Affordable Housing Ensure housing demand is matched by adequate production of new homes and equitable access to housing opportunities for all people.

6. 2A: Increase the Supply of Housing Enhance HUD's programs that increase the production and supply of housing across the country.

7. 2B: Improve Rental Assistance Improve rental assistance to address the need for affordable housing.

8. Strategic Goal 3: Promote Homeownership Promote homeownership opportunities, equitable access to credit for purchase and improvements, and wealth-building in underserved communities.

9. 3A: Advance Sustainable Homeownership Advance the deployment of tools and capital that put sustainable homeownership within reach.

10. 3A � Major Initiative: Expand Homeownership Opportunities Promote financing for innovative ownership models to increase the availability of affordable housing.

11. 3B: Create a More Accessible and Inclusive Housing Finance System https://www.hud.gov/HUD-FY22-26-Strategic-Plan-Focus-Areas https://www.hud.gov/HUD-FY22-26-Strategic-Plan-Focus-Areas

Advance new policy, programs, and modernization initiatives that support a more equitable housing finance system. Promote the preservation and creation of affordable housing stock.

12. Strategic Goal 4: Advance Sustainable Communities Advance sustainable communities by strengthening climate resilience and energy efficiency, promoting environmental justice, and recognizing housing's role as essential to health.

13. 4A: Guide Investment in Climate Resilience Invest in climate resilience, energy efficiency, and renewable energy across HUD programs.

14. 4B: Strengthen Environmental Justice Reduce exposure to health risks, environmental hazards, and substandard housing, especially for low-income households and communities of color.

15. 4C: Integrate Health and Housing Advance policies that recognize housing's role as essential to health.

All properties selected under this NOFO will be required to comply with the requirements in Housing Notice H 2023-05 as amended, and will make investments to achieve some or all of the following objectives:

• Lower carbon emissions and improve energy and water efficiency.

• Incorporate renewable energy use, where appropriate.

• Further climate resilience to better withstand the impacts of natural hazard events and protect residents.

• Reduce resident exposure to health risks and environmental hazards.

• Improve the quality of HUD-assisted multifamily housing for residents.

• Support long-term housing preservation through extended affordability requirements.

Funding Opportunity GoalsLower carbon emissions and improve energy and water efficiency.

Incorporate renewable energy use, where appropriate.

Further climate resilience to better withstand the impacts of natural hazard events and protect residents.

Reduce resident exposure to health risks and environmental hazards.

Improve the quality of HUD-assisted multifamily housing for residents.

Support long-term housing preservation through extended affordability requirements.

3. Changes from Previous NOFO

GRRP Elements NOFO Update, December 2023

1. Inclusion of a requirement to submit a HUD assistance contract with application.

o Edit: Insert in the listing of required submission materials “A copy of the applicant property’s HUD assistance contract.”

o Justification: The HUD assistance contract makes the property eligible for GRRP.

Submission of this document will streamline HUD’s review and reduce the instances of curable deficiencies, which will save applicants time.

2. Extension of due date in case of presidentially declared disaster.

o Edit: “If the proposed property or office address fall within a presidentially declared disaster area, the application deadline will be extended an additional 7 days from the original deadline. Applicants covered by this extension must be in a “covered disaster area” listed in FEMA’s Disaster Recovery (DR) Notices found at https://www.fema.gov/disaster/declarations where the Incident Period occurred within 7 days of an Application Period deadline referenced above. Any eligible applicant who is located in a covered disaster area and intends to take advantage of this deadline extension must apply by submitting an application through grants.gov no later than 11:59:59 p.m., ET, 7 days after the original deadline and include documentation confirming the location of the property or office address in the federally declared disaster area.”

o Justification: Applicants in presidentially declared disaster zones may not have the internet availability required to submit their application. This extension was previously available by request, but the adjustment ensures that applicants automatically have the opportunity to submit if impacted by disaster.

3. Clarification of the type of eligible contract types.

o Edit: “Properties assisted by the following types of Section 8 Project-Based

Rental Assistance (PBRA) Housing Assistance Payments (HAP) Contracts:”

o Justification: Many questions have been received about eligibility related to vouchers. This edit will clarify the specific eligibility requirement.

4. Modification of instructions for submitting application materials, specifically clarifying the curable deficiency process and asking for application attachments to include the iREMS reference number in the file name.

o Edit: “As noted above, certain program-specific requirements call for the submission of documents to demonstrate compliance. In evaluating each application, HUD will determine if there are program-specific curable deficiencies that can be remedied through grrp@hud.gov email correspondence with the applicant. The applicant may receive more than one curable deficiency notification. If the applicant does receive more than one deficiency notification, the applicant's responses must be in accordance with the instructions contained in each deficiency notification (e.g., the applicant may not consolidate its responses).

Examples of curable (correctable) deficiencies include inconsistencies in the funding request and failure to submit required certifications or other minor omissions. These examples are non-exhaustive.

All applications must be submitted in Grants.gov. This means that all applicants must have a Grants.gov account and Unique Entity Identifier (UEI) number. A complete application must include all the information, materials, forms and documents listed above, as applicable. Each tab must be submitted as a separate document and must be clearly labeled with the property iREMS number and item name.”

o Justification: This text brings together existing guidance on curable deficiencies previously in two separate locations and adds language requiring each file included in an applicant’s submission to be identified by property.

5. Modification of application deadline for the Third and final Application Period.

o Edit:

"Deadlines. The application deadlines are:

https://www.fema.gov/disaster/declarations mailto:grrp@hud.gov

• 06/29/2023 to be considered in the First Application Period

• 09/28/2023 to be considered in the Second Application Period

• 03/28/2024 to be considered in the Third Application Period

• 07/31/2024 for all other applications" o Justification: The revision provides more time for applicants under this NOFO to submit their applications and avoids an application deadline at a point in the year when there are unlikely to be many qualified applicants due to pre-development cycles.

GRRP Elements NOFO Update, April 2024

1. Conforming edits to reflect the changes to due dates for applications.

o Edit: “Due Date for Applications: 07/31/2024” o Edit: “The application deadline is 11:59:59 PM Eastern time on 07/31/2024” o Edit: “All applications received before 11:59:59 PM Eastern time on 03/28/ 2024, including applications from the First Application Period and the Second Application Period that were not previously selected for funding, shall be considered during the Third Application Period.

o Edit: “All applications received before 11:59:59 PM Eastern time on 07/31/2024, including applications from the First Application Period, the Second Application Period, and the Third Application Period that were not previously selected for funding, shall be considered during the Fourth Application Period. Each such grouping is referred to below as an Application Period.

o Justification: A prior revision to this NOFO modified the third and fourth application period due dates. These edits make conforming edits in other sections of the NOFO.

2. Expansion of threshold eligibility requirements related to the recapitalization.

o Edit: “The Elements NOFO provides modest awards designed to add proven and highly impactful climate resilience and carbon reduction measures to the construction scopes of in-progress or recently closed recapitalization transactions.”

o Edit: “This NOFO is designed to target eligible properties that are pursuing a recapitalization. They must have recently closed on their transaction or be materially advanced but not yet closed on financing and in both cases have an opportunity to make these transactions greener and more climate resilient through targeted upgrades of specific building components.”

o Edit: “6. Recapitalization. The owner must either (1) be materially advanced, but not yet closed, in a recapitalization effort for the property or (2) have closed a recapitalization transaction since May 11, 2023, as evidenced by both:

A. 1. For applications for transactions that have not yet closed, achievement of one of the following prior to submitting a GRRP application, as evidenced by PDF documentation and description in the narrative:"

o Edit: “Issuance of a Section 811 or Section 202 Capital Advance FY2018 - FY2023 award letter, or” o Edit: "2. For transactions that have reached closing since May 11, 2023, evidence of closing on one of the below recapitalization transactions with PDF documentation and description in the narrative:

o 4% or 9% low-income housing tax credit transaction, o Initial Closing on an FHA Loan, o Secured construction or permanent debt from a commercial lender, or o Section 811 or Section 202 Capital Advance FY2018 - FY2023 Award.”

o Edit: "B. Unless the project consists of solely new construction, the applicant has commissioned and received a Capital Needs Assessment (CNA) of the property within the past 24 months, or in the case of a transaction that has recently closed, within 24 months of the date of closing, that was conducted by an independent, third-party capital needs assessor and that was conducted to comply with one of the below sets of requirements:”

o Edit: “Applicants that have not yet closed on their recapitalization transaction may also request up to 10% of the requested funding amount for Eligible Soft Costs. (see Appendix III)” o Edit: “Evidence that the recapitalization effort for the property is materially advanced (PDF) (see Eligibility, Section III.D.6, above) or closed since May 11, 2023.”

o Edit: Insert in the listing of required submission materials “For transactions that closed since May 11, 2023, a certification by the Owner that the Elements Investments have been added on to the scope of the recapitalization since closing or needed to be removed from the scope of work with the sources and uses in place at the closing as a result of construction price changes. The Owner must submit evidence of the sources and uses and scope of work in place and approved by the lender(s) and/or investor at closing.”

o Edit: “Applicants that submit a certification from the project’s architect that the property currently uses (or used prior to a rehab event that closed after May 11, 2023) gas or oil for heat, hot water, or appliances in the residential units, but if rehabilitated according to plans and specifications, will be fully electrified at completion of the rehabilitation or construction.”

o Justification: To make properties that have closed in a recapitalization transaction since 5/11/23 eligible to apply under this NOFO.

3. Modification to References in the GRRP Notice.

o Edit: “Housing Notice H 2023-05 as amended” o Justification: To clarify that the GRRP Notice has been and could continue to be amended.

4. Inclusion of a requirement to submit evidence from SAM.gov showing the property-level UEI with active registration.

o Edit: Insert in the listing of required submission materials “A printout or screenshot from SAM.gov showing the property-level UEI with active registration.”

o Justification: To alleviate review of applications that may have inconsistent or incorrect UEI information.

5. Modification of instructions for submitting application materials.

o Edit: “Each document must be clearly labeled with the property iREMS number and item name.”

o Justification: To simplify the requirements for submitting documentation.

6. Establish a consistent and clear policy on how awards will be selected following the Fourth Application Review Period.

o Edit: “Any remaining funding, including any funding that becomes available from awards that are withdrawn, revoked or modified prior to the Fourth Application Period, shall be available for applications from the Fourth Application Period.

Any funding remaining or the that becomes available after the Fourth Application Period shall, at HUD’s sole discretion, be available to make awards to waitlist properties in the Leading Edge NOFO.”

o Justification: To make replacement awards as program subsidy funds accumulate after the Fourth Application Period closes in a fair and transparent manner, with minimal administrative burden and time delays.

7. Implement new sponsor caps for applications selected in the Fourth Application Period and for total applications.

o Edit: “An applicant or any Affiliates of an applicant shall not receive more than four awards in any of the First, Second, or Third Application Periods and not more than two awards in the Fourth Application Period nor more than 14 awards in total, unless there is funding remaining after funding all other eligible applications.”

o Edit: “Further, to the extent that all minimums cannot be met with the funds allotted per Application Period, HUD will first select properties for participation that satisfy the regional, then non-metropolitan set-asides.”

o Justification: To limit the amount of awards a sponsor can receive in an Application Review Period and align sponsor cap across all cohorts.

8. Clarification on previously completed Environmental Reviews.

o Edit: “Demonstration of environmental due diligence as evidenced by demonstration that an environmental review has already been completed for another funding source, the Submission of its environmental review into HUD’s Environmental Review Online System (HEROS) as required by Section VI.B below or, in the event of technical difficulties with HEROS, a PDF as permitted by Section VI.B below.”

o Edit: “To complete this preliminary environmental screen, HUD will rely on an Environmental Review that has already been completed for another funding source. Where one has not been completed HUD requires all applicants to submit the environmental documentation listed below.”

o Justification: To clarify how the preliminary environmental screen may be unnecessary if a full Environmental Review has already been completed.

9. Amend the contact information for assigning completed HEROS submissions.

o Edit: After the HEROS submission is complete, assign it in the system to

Ladrenna Figueroa, ladrenna.a.figueroa@hud.gov.”

mailto:ladrenna.a.figueroa@hud.gov o Justification: To clarify the new contact person for HEROS submissions.

10. Amend the APPENDIX III: Eligible Elements Investments section to account for expanded eligibility threshold.

o Edits:

“The below items are the eligible investments for Elements awards. Unless otherwise noted below under Funding Limitations, all investments will be funded at the lesser of the actual costs or the award maximum. Actual costs may include cost of installation, but any General Contractor profit, overhead, or general conditions must be separately listed and meet all requirements of the Financial Thresholds included in Exhibit B of Housing Notice H 2023-05 as amended.

Applicants that have closed on a recapitalization transaction since May 11, 2023, will need to meet the Financial Thresholds based on the full sources and uses from the original recapitalization plus any additional costs from the Elements Investments. Applicants shall identify the selected investments and associated costs in the Application Form.

For transactions that have already closed on a recapitalization event, or that close on the recapitalization event after submitting a GRRP Application but prior to award, the following conditions apply:

• The table below has been annotated to identify certain investments that are ineligible.

• Unless the transaction had previously received Environmental Clearance under Part 50 or

Part 58, the application may not propose Elements Investments that require ground disturbance.

• The requirements regarding Environmental Review as stated in Section VI.B.31 of this NOFO apply and any awardee must receive Environmental Clearance before beginning any GRRP-funded work. Where a project has already received environmental clearance under Part 50, the GRRP-funded work may require a re-evaluation. Where an Environmental Review under Part 50 has not yet occurred, HUD will conduct a new Environmental Review (but may rely on documentation produced for a Part 58 review or other local review process)"

Further edits to Appendix III can be found in the Eligible Elements Investments table.

GRRP Elements NOFO Update, August 2023

1. Expansion of eligibility for recent Section 202/811 Capital Advance awardees o Edit: “An entity is an Eligible Applicant and may apply under this NOFO if it …

Is the Sponsor or owner of a property under development through the Section 202 or Section 811 Capital Advance programs and has not yet reached initial closing.”

o Justification: Multifamily Production has been issuing Section 202 firm commitments contingent upon finding additional funding. The GRRP funding may be a portion of the strategy to close this gap. This language change provides projects more flexibility with respect to when they can apply for and close a GRRP award and gives HUD a greater opportunity to green recent Capital Advance awardees.

2. Clarification on cost sharing o Edit: “This Program does not require cost sharing or matching. The Program does require that the Owner be pursuing a recapitalization transaction as described in

Section III.D. Owners receiving a GRRP award will be required to cover costs of property rehabilitation that are not covered by the GRRP funding. These requirements are detailed in Housing Notice H 2023-05. Cost sharing or leverage is not a rating factor in selecting applications for participation in the program.”

o Justification: Provides additional clarity that the recapitalization transaction required in Section III.D. applies.

3. Addition to instructions for submitting the application materials, specifically asking for application attachments to include the iREMS reference number in the file name.

o Edit: Add “Include the property iREMS number in all file names.”

o Justification: This change ensures that each file included in an applicant’s submission is identified by property.

4. Clarification of the documentation required to support Better Buildings Challenge ranking status o Edit: “Applicants that submit their BBC Sponsor’s Better Buildings Challenge partnership agreement for their portfolio.”

o Justification: The NOFO ranks applicants by their commitment to different climate initiatives. One of the categories is participation in the Better Buildings Challenge. The Better Buildings Challenge is a portfolio-wide commitment rather than a commitment at a single property. The current language is inaccurate and confuses applicants.

5. Shortened the grace period for uploading environmental review documents into HEROS o Edit: “HUD will provide the applicant 14 days from the NOFO due date for the applicant to submit the environmental documentation through HEROS. Failure to submit environmental documentation through HEROS by the NOFO application due date or within 14 days of the NOFO application due date will cause the NOFO application to be considered incomplete.”

o Justification: The NOFO expects applicants to submit their environmental review documents into the HEROS on-line portal. However, for applicants who have trouble doing so before the application due date, the NOFO permits them to submit PDFs of their environmental review documents provided they upload the documents to HEROS within a grace period after the application deadline.

Currently, the grace period is 30 days, which has the potential to cause unnecessary delays in the application review process. Two weeks is a more reasonable grace period, balancing leniency for applicants that have trouble getting access to HEROS or uploading the documents into HEROS with the need for rapid application reviews.

6. Addition of IEER specification for heat pumps in the menu of acceptable Elements investments o Edit: “Electric air source or ground source heat pumps rated at least 18 SEER, or 18 HSPF, or 22.5 IEER.”

o Justification: The Elements NOFO specifies investments that GRRP will fund, and the amount of funding provided. Heat pumps are currently in the list and will remain so. Currently, only two measures of efficiency are listed – SEER or HSPF. Heat pumps above 65,000 BTU/hour have their efficiency measured in

IEER rather than SEER or HSPF. The 22.5 IEER benchmark is roughly equivalent to 18 SEER and 18 HSPF.

7. Clarification of ASTM standards o Edits:

• “Phase I Environmental Site Assessment (ESA) Report: The Findings, Opinions, and Conclusions sections of the Phase I ESA must be completed by an Environmental Professional in accordance with ASTM E 1527-13 for applications submitted by or before February 13th, 2024 or ASTM E 1527-21 for applications submitted after February 13th, 2023”

• “(1) Recognized Environmental Conditions (REC), suspect REC, historical REC, and/or de minimis conditions (with all such terms as described in ASTM E 1527-13 or ASTM E1527-21 as applicable),” o Justification: New ASTM standards roll out early 2024 and applications should adhere to the standards in place at the time of submission.

8. Additional specifications for Administrative, National and Departmental Policy Requirements and Terms for HUD Applicants and Recipients of Financial Assistance Awards o Edit: “31. Compliance with 41 U.S.C. § 4712, which includes informing your employees in writing of their rights and remedies, in the predominant native language of the workforce. Under 41 U.S.C. § 4712, employees of a contractor, subcontractor, grantee, subgrantee, and personal services contractor may not be discharged, demoted, or otherwise discriminated against as a reprisal for disclosing information that the employee reasonably believes is evidence of gross mismanagement of a Federal contract or grant, a gross waste of Federal funds, an abuse of authority relating to a Federal contract or grant, a substantial and specific danger to public health or safety, or a violation of law, rule, or regulation related to a Federal contract (including the competition for or negotiation of a contract) or grant. (See Federal Contractor or Grantee Protections | Office of Inspector General, Department of Housing and Urban Development (hudoig.gov)” o Justification: Updated language to match current HUD requirements.

4. Definitions

a. Standard Definitions

Affirmatively Furthering Fair Housing (AFFH) means taking meaningful actions, in addition to combating discrimination to overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunities, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws.

The duty to affirmatively further fair housing extends to all program participant’s activities and programs relating to housing and urban development.

Assistance Listing number refers to the unique number assigned to each Federal assistance program publicly available in the Assistance Listing, which is managed and administered by the General Services Administration. The Assistance Listing number was formerly known as the Catalog of Federal Domestic Assistance (CFDA) number.

Authorized Organization Representative (AOR) is a person authorized to legally bind your organization and submit applications via Grants.gov. The AOR is authorized by the E-Business Point of Contact (E-Biz POC) in the System for Award Management (see E-Biz POC definition).

An AOR may include an Expanded AOR and/or a Standard AOR.

Expanded Authorized Organization Representative is a user in Grants.gov who is authorized by the E-Biz POC to perform the functions of a Standard AOR, initiate and submit applications on behalf of your organization, and is allowed to modify organization-level settings and certifications in Grants.gov.

Standard Authorized Organization Representative is a user in Grants.gov who is authorized by the E-Biz POC to initiate and submit applications in Grants.gov. A Grants.gov user with the Standard AOR role can only submit applications when they are a Participant for that workspace.

Consolidated Plan is the document submitted to HUD that serves as the comprehensive housing affordability strategy, community development plan, and submission for funding under any of the Community Planning and Development formula grant programs (e.g., CDBG, ESG, HOME, and HOPWA). This Plan is prepared in accordance with the process described in 24 CFR part 91.

This plan is completed by engaging in a participatory process to assess their affordable housing and community development needs and market conditions, and to make data-driven, place-based investment decisions with funding from formula grant programs. (See 24 CFR part 91 for HUD’s requirements regarding the Consolidated Plan and related Action Plan).

Contract means, for the purpose of Federal financial assistance, a legal instrument by which a recipient or subrecipient purchases property or services needed to carry out the project or program under a federal award. For additional information on contractor and subrecipient determinations, see 2 CFR 200.331.

Contractor means an entity that receives a contract as defined above and in 2 CFR 200.1.

Cooperative agreement has the same meaning defined at 2 CFR 200.1.

Deficiency, with respect to the making of an application for funding, is information missing or omitted within a submitted application. Examples of deficiencies include missing documents, missing or incomplete information on a form, or some other type of unsatisfied information requirement. Depending on specific criteria, a deficiency may be either Curable or Non-Curable.

A Curable Deficiency is missing or incomplete application information that may be corrected by the applicant with timely action. To be curable, the deficiency must:

• Not be a threshold requirement, except for documentation of applicant eligibility;

• Not influence how an applicant is ranked or scored versus other applicants; and

• Be remedied within the time frame specified in the notice of deficiency.

A Non-Curable Deficiency is missing or incomplete application information that cannot be corrected by an applicant after the submission deadline. A non-curable deficiency is a https://www.ecfr.gov/current/title-24/subtitle-A/part-91 https://www.ecfr.gov/current/title-24/subtitle-A/part-91 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR031321e29ac5bbd/section-200.331 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 deficiency that is a threshold requirement, or a deficiency that, if corrected, would change an applicant’s score or rank versus other applicants. If an application includes a non-curable deficiency, the application may receive an ineligible determination, or the non-curable deficiency may otherwise adversely affect the application’s score and final funding determination.

E-Business Point of Contact (E-Biz POC) is an organization applicant who is responsible for the administration and management of grant activities for his or her organization. The E-Biz POC is likely to be an organization's chief financial officer or authorizing official. The E-Biz POC authorizes representatives of their organization to apply on behalf of the organization (see Authorized Organization Representative definition). There can only be one E-Biz POC per unique entity identifier (see definition of Unique Entity Identifier below).

Eligibility requirements are mandatory requirements for an application to be eligible for funding.

Environmental Justice means investing in environmental improvements, remedying past environmental inequities, and otherwise developing, implementing, and enforcing laws and policies in a manner that advances environmental equity and provides meaningful involvement for people and communities that have been environmentally underserved or overburdened, such as Black and Brown communities, indigenous groups, and individuals with disabilities. This definition does not alter the requirements under HUD’s regulations at 24 CFR 58.5(j) and 24 CFR 50.4(l) implementing Executive Order 12898. E.O. 12898 requires a consideration of how federally assisted projects may have disproportionately high and adverse human health or environmental effects on minority and/or low-income populations. For additional information on environmental review compliance, refer to:

https://www.hud.gov/program_offices/comm_planning/environment_energy/regulations.

Equity has the meaning given to that term in Section 2(a) of Executive Order 13985 and means the consistent and systematic fair, just, and impartial treatment of all individuals, including individuals who belong to underserved communities that have been denied such treatment, such as Black, Latino, and Indigenous and Native American persons, Asian Americans and Pacific Islanders and other persons of color; members of religious minorities; lesbian, gay, bisexual, transgender, and queer (LGBTQ+) persons; persons with disabilities; persons who live in rural areas; and persons otherwise adversely affected by persistent poverty or inequality.

Federal Award, has the meaning, depending on the context, in either paragraphs (1) or (2) of this definition:

(1)

(a) The Federal financial assistance that a recipient receives directly from a Federal awarding agency or a subrecipient receives indirectly from a pass-through entity, as described in 2 CFR 200.101; or

(b) The cost-reimbursement contract under the Federal Acquisition Regulations that a non- Federal entity receives directly from a federal awarding agency or indirectly from a pass- through entity, as described in 2 CFR 200.101.

(2) The instrument setting forth the terms and conditions. The instrument is the grant agreement, cooperative agreement, other agreement for assistance covered in paragraph (2) https://www.ecfr.gov/current/title-24/subtitle-A/part-58/subpart-A/section-58.5 https://www.ecfr.gov/current/title-24/subtitle-A/part-50/subpart-A/section-50.4 https://www.ecfr.gov/current/title-24/subtitle-A/part-50/subpart-A/section-50.4 https://www.archives.gov/files/federal-register/executive-orders/pdf/12898.pdf https://www.hud.gov/program_offices/comm_planning/environment_energy/regulations https://www.federalregister.gov/documents/2021/01/25/2021-01753/advancing-racial-equity-and-support-for-underserved-communities-through-the-federal-government of the definitions of Federal financial assistance in 2 CFR 200.1, and this NOFO, or the cost-reimbursement contract awarded under the Federal Acquisition Regulations.

(3) Federal award does not include other contracts that a Federal agency uses to buy goods or services from a contractor or a contract to operate Federal Government owned, contractor operated facilities (GOCOs).

(4) See also definitions of Federal financial assistance, grant agreement, and cooperative agreement in 2 CFR 200.1.

Federal Financial Assistance has the same meaning defined at 2 CFR 200.1.

Grants.gov is the website serving as the Federal government’s central portal for searching and applying for Federal financial assistance throughout the Federal government. Registration on Grants.gov is required for submission of applications to prospective agencies unless otherwise specified in this NOFO.

Historically Black Colleges and Universities (HBCUs) are any historically Black college or university that was established prior to 1964, whose principal mission was, and is, the education of Black Americans, and that is accredited by a nationally recognized accrediting agency or association determined by the Secretary of Education to be a reliable authority as to the quality of training offered or is, according to such an agency or association, making reasonable progress toward accreditation. A list of accredited HBCUs can be found at the U.S. Department of Education’s website.

Minority-Serving Institutions (MSIs) are

(1) a part B institution (as defined in 20 U.S.C. 1601);

(2) a Hispanic-serving institution (as defined in 20 U.S.C. 1101a(5));

(3) a Tribal College or University (as defined in 20 U.S.C. 1059c);

(4) an Alaska Native-serving institution or a Native Hawaiian-serving institution (as defined in 20 U.S.C. 1059d(b));

(5) a Predominantly Black Institution (as defined in 20 U.S.C. 1059e);

(6) an Asian American and Native American Pacific Islander-serving institution (as defined in 20 U.S.C. 1059g); or

(7) a Native American-serving nontribal institution (as defined in 20 U.S.C. 1059f).

Non-Federal Entity (NFE) means a state, local government, Indian tribe, Institution of Higher Education (IHE), or non-profit organization that carries out a federal award as a recipient or subrecipient.

Primary Point of Contact (PPOC) is the person who may be contacted with questions about the application submitted by the AOR. The PPOC is listed in item 8F on the SF-424.

Racial Equity is the elimination of racial disparities, and is achieved when race can no longer predict opportunities, distribution of resources, or outcomes – particularly for Black and Brown persons, which includes Black, Latino, indigenous, Native American, Asian, Pacific Islander, and other persons of color.

https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200 https://sites.ed.gov/whhbcu/one-hundred-and-five-historically-black-colleges-and-universities/ https://sites.ed.gov/whhbcu/one-hundred-and-five-historically-black-colleges-and-universities/ https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partB-sec1061.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapV-partA-sec1101a.pdf https://www.govinfo.gov/content/pkg/USCODE-2015-title20/pdf/USCODE-2015-title20-chap28-subchapIII-partA-sec1059c.pdf https://www.govinfo.gov/content/pkg/USCODE-2015-title20/pdf/USCODE-2015-title20-chap28-subchapIII-partA-sec1059d.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059e.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059g.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059g.pdf https://www.govinfo.gov/content/pkg/USCODE-2020-title20/pdf/USCODE-2020-title20-chap28-subchapIII-partA-sec1059f.pdf

Recipient means an entity, usually but not limited to non-Federal entities, that receives a federal award directly from HUD. The term recipient does not include subrecipients or individuals that are beneficiaries of the award.

Resilience is a community’s ability to minimize damage and recover quickly from extreme events and changing conditions.

Small business is defined as a privately-owned corporation, partnership, or sole proprietorship that has fewer employees and less annual revenue than regular-sized business. The definition of “small”—in terms of being able to apply for government support and qualify for preferential tax policy—varies by country and industry. The U.S. Small Business Administration defines a small business according to a set of standards based on specific industries. See 13 CFR Part 121.

Subaward means an award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of a federal award received by the pass-through entity. It does not include payments to a contractor or payments to an individual that is a beneficiary of a Federal program. A subaward may be provided through any form of legal agreement, including an agreement that the pass-through entity considers a contract.

Subrecipien…