Affordable Housing Funds in the Inflation Reduction Act (IRA)

Friday, March 29, 2024

California's Experts on Affordable

Housing Finance, Advocacy & Policy

Interested in a new funding source to support climate-friendly affordable housing? The 2022 federal Inflation Reduction Act (IRA) offers potentially billions of dollars toward decarbonization affordable housing in California. Unfortunately, the regulations and timing are different for each program which makes accessing IRA resources challenging. The California Housing Partnership held a series of workshops to provide information about the resources in January and February 2024.

The table below is a general summary of three of the main IRA programs potentially accessible to affordable housing providers with links to the recordings of the Partnership’s workshop series. Read more about the IRA's offerings here.

Funding Source

Summary

Renewable Energy Tax Credits

(webinar)

Solar PV, solar hot water, energy storage, and other eligible energy systems in new construction and retrofits

Base credit rate of 30% with several additional factors that can bring the rate to 70%

Green and Resilient Retrofit Program (webinar)

Utility Efficiency: windows, electrical upgrades, water fixtures, HVAC and water heat pumps, ovens, clothes dryers, air seal testing, insulation, heat or energy recovery, ventilators, and others

Climate Resilience: backup power, emergency shelter, emergency water access, storm shutters, green or blue roof, floodproofing, permeable pavement, stormwater storage, impact-resistant windows, water collection systems, fire resistant envelope, and others

Carbon reduction: solar, wind energy generation, geothermal generation, energy storage, EV charging, building materials, soft costs, and others

There are three cohorts:

Elements

Award of up to $750,000 for specific investments in owner driven recapitalization

Leading Edge

Award up to $10 million for specific investments and obtaining a green certification

Comprehensive

Award up to $20 million deep retrofits for properties with the highest need

Rebate Programs

(webinar)

Heat pump water heaters, heat pumps for space heating and cooling, electric stove, cooktops, range, or ovens, electric load service centers, wiring. Insulation, air sealing, and ventilation (Can change subject to the California Energy Commission)

Home Efficiency Rebate

Covers up to 80% of project cost with a maximum of $400,000 per development for retrofits (Can change subject to the California Energy Commission)

Home Electrification and Appliance Rebate

Point of sale rebate to cover 100% of cost up to $14,000 per unit for both new construction and retrofits (Can change subject to the California Energy Commission)

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This Partnership series was presented by Ian Sharples, Andrew Dawson and Jesse Ozanian on behalf of our Sustainable Housing team, with thanks to the Wells Fargo Foundation and the California Energy Commission's Building Initiative For Low-Emissions Development (BUILD) Program. Ian is a Sustainable Housing Program Manager, Andrew is a Policy Advocacy Manager and Jesse is a Senior Housing Finance Consultant at the California Housing Partnership.

About the California Housing Partnership

The California Housing Partnership creates and preserves affordable and sustainable homes for Californians with low incomes by providing expert financial and policy solutions to nonprofit and public partners. Since 1988, the Partnership's on-the-ground technical assistance, applied research, and legislative leadership has leveraged $35 billion in private and public financing to preserve and create more than 93,000 affordable homes. | chpc.net

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