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HUD Multifamily Posts Draft Notice on Solar Leases

The Office of Multifamily Housing recently posted a draft notice regarding commercial leases for on-site solar systems, cell towers, and other rooftop uses.  Broadly, the draft notice centralizes procedures for applications and approvals for such leases, as well as to establish additional requirements for multifamily owners seeking to install rooftop or other on-site solar systems. This is especially true if any of the electricity generated by the system is used by the property, such as through a Power Purchase Agreement (PPA). In those situations:

  • The owner must perform energy benchmarking within 18 months of the system coming on-line. While HUD is providing no-cost benchmarking through the Green and Resilient Retrofit Program through 2027, after that period owners must independently perform the benchmarking.
  • The owner must complete and submit a new baseline utility analysis at least one year after the solar system has come on-line.

The Department is seeking feedback on the proposed notice through November 10, 2024, and interested members may submit comments to: assetmanagementpolicy@hud.gov.Additionally, HUD will host a stakeholder listening session on October 29, 2024, at 2:00 pm ET. Registration to the listening session is available here.

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