HUD reportedly axes Biden-era green retrofit program

The program, which had an initial allocation of nearly $840 billion from President Joe Biden’s Inflation Reduction Act, allocated nearly $1.5 billion over the course of its life for the reduction of greenhouse gas emissions, to address climate resilience, and to increase energy and water efficiency of HUD-assisted multifamily properties in low-income communities.

But according to reports from the Associated Press and Newsweek, the program is being halted, targeted for cuts reportedly at the direction of the U.S. DOGE Service — billionaire Elon Musk’s government-wide cost-cutting effort inside the White House.

“A spokesperson for HUD did not respond to repeated requests for comment. But an internal document reviewed by the AP said that the program is being ‘terminated’ at the direction of DOGE,” the AP report said. “Two HUD workers, who have knowledge of the program and spoke to the AP on the condition of anonymity for fear of reprisal, confirmed the directive to shutter it.”

Shortly after the 2024 presidential election, the Biden administration announced the final round of GRRP grant funding, bringing the total amount intended for recipients to $1.43 billion. The Biden administration at the time described this as a “winding down” of the program, with the final round of $30 million in awards intended for 45 properties across 23 states.

The program has funded retrofitting projects for nearly 25,000 housing units across the country, and while not necessarily expanding affordable housing stock, advocates say it plays a critical role in property preservation and resiliency particularly as the nation has been rocked by an accelerating trend of natural disasters.

The AP report solicited input from affordable housing stakeholders who describe serious concerns stemming from the halting of the program. But clarity on the extent of the halting was unclear, inducing frenetic inquiries and anxiety among those who depended on the funds.

“HUD’s lack of communication about the program’s future sent organizations in search of contingency plans, though roughly two dozen projects will still get funding, one HUD employee told the AP. The rest are in limbo,” the report said.

Housing expert and commercial real estate advisory CEO Anthony Luna, who leads firm Coastline Equity, said such a decision is short-sighted.

“Eliminating HUD’s housing retrofit program is a short-sighted policy disguised as efficiency,” Luna said in a statement to HousingWire. “This $1 billion cut directly undermines housing stability for seniors, veterans, and working-class families. For many, these units are the only affordable option between having a home and living on the street.”

Without the funding for preservation of the impacted properties, the impacts could require an even greater expense in the future, he added.

“Without these investments, neglected buildings deteriorate rapidly, requiring far greater public expenditure down the line, a financially reckless decision,” he said.

Properties across 42 states, as well as Puerto Rico and Washington, D.C., could reportedly be impacted by the shuttering of the program. HUD Secretary Scott Turner has lauded the work of DOGE during his time leading the agency, establishing a task force designed to interface directly with the cost-cutting effort.