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Housing complexes secure $1 billion in HUD financing for energy efficiency improvements and climate initiatives.

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Renters living in affordable housing have often felt overlooked in the shift toward cleaner energy solutions. Many of them reside in older structures that, although maintained over the years, still suffer from issues such as drafty windows and outdated appliances that consume excessive energy. Significantly, these residents do not have access to solar energy options.

Adrianne Todman, the head of the U.S. Department of Housing and Urban Development (HUD), learned about these challenges during her visits to various housing complexes. During these interactions, she assured tenant communities and property managers that change was on the horizon. That promise is materializing this week, as HUD publicizes the allocation of the final $30 million from a much larger $1 billion initiative intended to upgrade and rehabilitate older buildings to improve living conditions for thousands of low-income families across the nation.

The initiative aims to make these homes cozier while simultaneously reducing their carbon footprints and enhancing their ability to endure extreme weather events, a pressing issue linked to climate change. The funding has been distributed across the country over the past year, with property owners applying it to install energy-efficient windows, heating and cooling systems, electric vehicle charging points, flood-resistant features, improved roofing, and solar energy systems with storage options. Eligible properties include those with federally subsidized rents aimed at low-income households, senior citizens, and individuals with disabilities.

The Green and Resilient Retrofit Program was established under the Inflation Reduction Act, a significant piece of U.S. climate legislation enacted in 2022. According to the International Energy Agency, approximately 26% of global emissions tied to energy are generated through the operation of buildings, primarily due to the burning of fossil fuels for heating, cooling, powering appliances, and generating hot water.

“This billion-dollar commitment not only addresses essential climate challenges but also brings hope to residents by offering them better, safer, and more comfortable living conditions,” Todman remarked in a recent interview.

For residents like 74-year-old Hilda Bell of New Orleans, these upgrades mean improved safety against severe weather conditions. Bell lives at St. John Berchman’s Manor, an apartment complex geared toward low-income seniors. In September, the building’s owner, Providence Community Housing, secured a substantial $12 million loan from the fund. The place was previously inundated with four feet of water during Hurricane Katrina and took four years to reopen after extensive repairs. Now, it requires stronger roofing materials, upgraded windows, fortified electrical and mechanical systems to withstand flooding, and modern heating and air conditioning facilities to lower energy consumption.

“I understand that this building needs strengthening. The roof requires attention, and the windows should be sealed. This funding can go a long way toward making those necessary replacements,” Bell expressed.

Terri B. North, the president and CEO of Providence Community Housing, emphasized the critical need for affordable housing in their community. She believes that if the building can be enhanced to be energy-efficient and resilient, it could serve the community effectively for another 42 years.

In Pittsburgh, Pennsylvania, residents of Crafton Towers are also anticipating a transformation, as the renovation will enable the building to generate the bulk of its electricity through solar energy. The nonprofit ACTION-Housing, Inc., which owns the property, indicated that substantial upgrades focusing on energy efficiency and carbon-reduction measures are imperative, particularly as increasing energy costs complicate the pursuit of improvements without also raising rents. They were awarded nearly $6.2 million to carry out this important work.

“It is crucial to maintain affordable housing by ensuring these buildings run efficiently, lower utility costs, and become friendlier to our climate. This funding provides essential financial support for that objective,” remarked Sarah Ralich, a senior manager at ACTION-Housing.

Another resident, Joseph Cousineau Sr., 73, acknowledged the pressing need for renovations in his 1970s-era building. Issues such as water seeping through windows and malfunctioning heating and cooling units have made the living environment less than ideal. The renovation plan includes new insulation and windows, paired with electric heat pumps replacing older gas units.

“We have been forgotten for years. There has not been any significant renovation since the building was constructed. We truly need modernization,” Cousineau stated.

Preservation of Affordable Housing, Inc. has been granted a total of 18 awards through this program, with individual funding amounts ranging from $750,000 to $7.8 million. At Island Terrace Apartments, which is a high-rise complex with 240 units for families, critical rehabilitation work is underway. Konrad Schlater, the vice president for development finance at the organization, mentioned that modern features like energy recovery ventilation units are being introduced to enhance air quality without significant energy loss. Resident Bernadine Gibson, 82, noted that she sometimes opens her apartment door for fresh air due to poor circulation.

Schlater commented that without HUD’s assistance, many properties would struggle to undergo the necessary modernization efforts.

Woodland Homes, a community for low-income seniors in Lexington, Tennessee, was among the first to receive funding. The property manager, Wesley Living, utilized a $750,000 grant to switch from gas to electric systems for their furnace and water heater, install new wiring for electrification, and provide electric vehicle charging stations. The renovation also incorporated solar panels on the community center’s roof, complete with energy storage solutions. This project has been successfully completed.

“It’s beneficial not just for our immediate community but for the health of our planet for the long term,” expressed Judy Jones, a 74-year-old resident. Others in her community expressed relief knowing their community center can remain powered even during severe weather.

HUD is committed to monitoring which investments effectively reduce both energy and water consumption while enhancing residents’ quality of life. This information will be shared with affordable housing stakeholders to guide further renovation strategies. Approximately $1.4 billion has been distributed across 270 properties, yielding over 30,000 rental units in 42 states, including the District of Columbia and Puerto Rico.

Todman believes that the actual number of individuals benefiting from these initiatives could be much higher, considering the potential future tenants. She highlighted that without these investments, many housing units would face deterioration, exacerbating the ongoing affordable housing crisis.

“This program ensures HUD’s assisted living units are brought into the modern age. It assures that the low-income demographic does not get left behind in the much-needed energy upgrades occurring nationwide,” she concluded.

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