The Inflationary Reduction Act (IRA)
A Housing Conundrum
The Inflationary Reduction Act (IRA) has made headlines with a staggering $437 billion, but the question remains:
Where is the love for housing programs?
Mainly focusing on the GRRP, a noteworthy $4 billion is earmarked solely for PBRA deals. However, what about PBVA, expiring LIHTC, and ever-relevant naturally occurring affordable housing (NOAH) within the IRA one year later?
While elements like IRA Section 45L, 179D, and 48ITC apply to housing, details on the EPA Greenhouse Gas Reduction Fund (GGRF) and Solar-for-All programs are still awaited.
What can Communities do Now to Prepare for IRA Sources at Your Property?
- Start collecting utility benchmarking information
- Identify relevant climate risks
- Depending on sources for pending recapitalization, consider IRA provisions during pre-development
We encourage developers to check with their State Energy Office regarding the $9 billion distributed through the Department of Energy (DOE) for home energy rebates, which are particularly useful in multifamily housing.
In anticipation of program details, we recommend housing owners/operators start utility benchmarking now, positioning themselves ahead of the application periods.
Green and Energy Needs? D3G is Ready to Assist.