HUD’s Office of Multifamily Housing sent out the following information on October 11, 2024:
The Office of Multifamily Housing Programs published a draft Solar, Cell Tower, and Rooftop Leases notice to the Multifamily Drafting Table for public comment, regarding new guidance that outlines Multifamily’s requirements for on-site solar systems, cell towers, and rooftop commercial leases.
This draft Notice also aims to centralize the process that Multifamily Housing (MFH) staff will follow when reviewing requests from Owners to enter into such leases. The Notice will be applicable to any owner of a HUD-insured or HUD-subsidized multifamily project that is subject to a MFH business agreement that wishes to enter into a rooftop lease or enter into a lease for an on-site, ground mounted solar system.
The Notice includes a HUD Multifamily Solar, Cell Tower, and Rooftop Lease Rider to be fully executed by all parties prior to the installation of the solar electric system, cell tower system, or other rooftop equipment under a commercial lease. It also includes a sample self-certification to be completed by Owners, which requires them to attest to several items, including the condition of the project roof, insurance coverage, and having a plan for removal and reinstallation of rooftop equipment in the event of roof repair or replacement during the lease term.
HUD is interested in any general or specific feedback on the approval process proposed in the Notice. We especially encourage respondents to consider and address the requirement included in the Notice that Owners must undertake initial utility consumption and emissions benchmarking within 18 months of placing a solar electric system that will provide on-site energy to the Project. Further, we are interested in feedback from solar and cell tower vendors regarding the provisions in the “HUD Multifamily Solar, Cell Tower, and Rooftop Lease Rider,” which is found in Appendix B of the draft Notice.
Please follow the instructions in the Response Worksheet to provide your comments and email the worksheet to assetmanagementpolicy@hud.gov.
The deadline for responses is Sunday, November 10, 2024.
MFH will also be hosting a series of listening sessions to solicit feedback from different stakeholder groups. Details regarding timing and the registration process will be included in a forthcoming email bulletin.