Deadlines Approaching: Funding for Solar in HUD Housing

Posted on October 3, 2024 by Bobbie Guidry

The Low-Income Communities Bonus Credit Program, administered by the Department of Energy (DOE) and the Department of the Treasury, promotes cost-saving solar or wind investments in low-income communities as part of affordable housing developments, and for projects that benefit low-income households.

The standard Clean Electricity Investment Tax Credit (ITC) provides HUD multifamily owners with a base credit of up to 30% of the cost of a renewable energy project.

Details on Qualifying Projects

For qualifying projects, the Low-Income Communities Bonus, created through the Inflation Reduction Act, can add up to 20 percentage points to the base credit, funding up to 50% of a project. If a project qualifies for additional ITC bonuses, up to 70% of the solar facility costs can be funded.

Earlier this year, HUD’s Office of Multifamily Housing Programs launched a new series of recordings to help owners of HUD-assisted multifamily housing properties and other stakeholders apply for this credit under Category 3 (Qualified Low-Income Residential Project), as most HUD-assisted and public housing are considered eligible covered housing under Category 3 in the 2024 Program Year.

The week of September 30, DOE and Treasury announced upcoming application cut-off dates for Program Year 2024. Questions related to this program can be sent to assetmanagementpolicy@hud.gov with the word ‘SOLAR’ in the subject line.