A wide variety of funding opportunities, including grants, loans, tax credits, and rebates, across federal agencies are available to PHAs for green energy, climate resiliency, and disaster recovery at their properties. Click here for information about key green funding programs.
The Internal Revenue Service (IRS) has published final regulations for the Direct Pay of tax credits. Under the direct pay provisions of the Inflation Reduction Act, tax-exempt and governmental entities that do not owe Federal income taxes will be able to receive a payment equal to the full value of tax credits for building qualifying clean energy projects or making qualifying investments.
By filing a return and using direct pay, applicable entities can receive tax-free cash payments from the IRS for clean energy tax credits earned. Direct pay is applicable to 12 different tax credits related to energy generation, including:
- Production Tax Credit (§45)
- Clean Electricity Production Tax Credit (§45Y)
- Investment Tax Credit for Energy Property (§48)
- Clean Electricity Investment Tax Credit (§48E)
- Low-Income Communities Bonus Credit (§48(e), §48E(h))
- Credit for Qualified Commercial Clean Vehicles (§45W)
- Alternative Fuel Vehicle Refueling Property Credit (§30C)
The IRS provided a helpful slideshow detailing how the Direct Pay provisions work and how to apply for them. The final rule also contains a detailed example of how a PHA using Capital Funds for a rooftop solar installation can use the Direct Pay provisions. That example is provided below, for your convenience.
Details of the Direct Pay program and other green funding opportunities are available in CLPHA’s Green Funding Clearinghouse.
Example provided in the final rule involving PHAs and Capital Funds (found on page 157):
The U.S. Department of Housing and Urban Development annually provides Capital Funds to Public Housing Agencies (PHAs) for the development, financing, and modernization of public housing developments and for management improvements. Public Housing Authority H uses its annual allotment of Capital Funds to purchase rooftop solar panels for its property and to pay for the related equipment and labor to install the panels. These purchases are considered among the list of eligible uses, but are not the exclusive uses, of H’s Capital Funds. Although the Capital Funds are exempt from taxation under subtitle A and used to purchase, construct, reconstruct, erect, or otherwise acquire an investment-related credit property, pursuant to paragraph (c)(3)(i) of this section, they are included in basis for purposes of computing the applicable credit amount determined with respect to the applicable credit property. In addition, because the Capital Funds were not given for the specific purpose of purchasing, constructing, reconstructing, erecting, or otherwise acquiring an investment-related credit property, they are not considered restricted tax exempt amounts and the no excess benefit rule found in paragraph (c)(3)(ii) of this section does not apply.
PHAs Can Apply Through Non-Profit Arms or Government Partnerships
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HUD has opened a new funding opportunity which offers $225 million in competitive grant funding for the preservation and revitalization of manufactured housing and eligible manufactured housing communities. PHAs can apply through their non-profit arms or apply as part of a partnership with a state or local government. The application deadline is June 5, 2024. Eligible applicants include:
This program is called the Preservation and Reinvestment Initiative for Community Enhancement (PRICE) and uses the Community Development Block Grant (CDBG) statutory and regulatory framework. This new NOFO is one of a wide range of recent actions taken by the Biden-Harris Administration to Boost Housing Supply. PRICE funding will support low- and moderate-income homeowners with manufactured housing units and manufactured housing communities with critical investments such as repairs, infrastructure improvements, upgrades to increase resilience, services like eviction prevention and housing counseling, and planning activities such as those needed to transition to resident-managed communities. HUD is providing a series of webinars with a specific focus on the PRICE NOFO and application requirements. These one-hour webinars are designed for interested PRICE applicants. The first webinar will be a PRICE NOFO Walkthrough on March 6, 2024 at 3:00 pm ET. Relatedly, FHA is publishing a draft Mortgagee Letter that, once finalized, will create a new program to preserve affordability for existing residents of manufactured housing communities. Under the new program, resident cooperatives and other mission-oriented borrowers will be permitted to use FHA 223(f) multifamily loans to acquire or refinance communities. This is designed to complement the PRICE grant program.
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Applications Due February 1
The Department of Labor has posted a Notice of Funding Opportunity for PHAs; state, city, county, and local governments; independent school districts and others to apply for funding to provide pre-apprentice services that support education, occupational skills training, and employment services to youth, ages 16 to 24, who are performing meaningful work and service to their communities. Approximately 75 grants will be awarded. Individual grants will range from $700,000 to $1.5 million. Applications are due February 1, 2024.
Under this Funding Opportunity Announcement (FOA), DOL will award grants through a competitive process to organizations providing pre-apprenticeship services that support education, occupational skills training, and employment services to opportunity youth, ages 16 to 24, who are performing meaningful work and service to their communities. The YouthBuild program model prepares participants for quality jobs in a variety of careers, in diverse industry sectors, particularly in infrastructure sectors, and includes wrap-around services such as mentoring, trauma-informed care, personal counseling, transportation supports, and employment preparation - all key strategies for addressing violence in communities. YouthBuild applicants must include construction skills training and may include occupational skills training in other in-demand industries. This expansion into additional in-demand industries is the Construction Plus component. Eligible applicants for these grants are public or private non-profit agencies or organizations, including consortia of such agencies or organizations. These organizations include rural, urban, or Native American/Tribal entities that have previously served opportunity youth in a YouthBuild or other similar program. DOL will fund approximately 75 projects across the country. Individual grants will range from $700,000 to $1.5 million and require a 25 percent match from applicants, using sources other than federal funding. This FOA features a matching waiver for Tribal entities and U.S. insular areas which allows these entities to not include a match commitment in their applications. The grant period of performance for this FOA is 40 months, including a four-month planning period and a twelve-month follow-up period. Questions regarding this Funding Opportunity Announcement (FOA) may be emailed to YB_FOA-ETA-24-36@dol.gov.