The Rate Reduction Incentive (RRI) is a financial incentive for Public Housing Authorities (PHAs) that pursue special and significant efforts beyond what is required by statute and/or regulation to reduce their utility rate. PHAs are eligible for the RRI if a PHA takes action beyond normal public participation in rate-making proceedings, such as wellhead purchase of natural gas, administrative appeals, or legal action to reduce the rate it pays for utilities. PHAs with an eligible action may retain one-half (50%) of the annual savings realized from their actions, or 100% of savings if the RRI is done in conjunction with an EPC.
A PHA interested in pursuing an RRI is required to submit a request through the Operating Fund Web Portal for review. Applications for Funding Year 2025 can be submitted between August 5th, 2024 and September 30th, 2024. No applications will be accepted after that date.
PHAs that receive an approval letter from HUD are eligible to claim RRI savings in their annual Operating Subsidy request provided that the action continues to result in a net savings to the PHA. Savings must be reported in the HUD Form 52722 by the initial submission date as identified in the Operating Subsidy notice for each eligible funding year. In order for a PHA to be eligible to claim an RRI, all PHAs must submit documentation of the savings to their FO no later than September 30th prior to the upcoming funding year.
Coming Soon
For more information about HUD’s Rate Reduction Incentive program please see below or contact us at PIHEnergyBranch@hud.gov
This training helps Public Housing Agency (PHA) staff learn more about the Rate Reduction Incentive (RRI). After the training, participants should understand RRI and be able to calculate rate reduction savings. Participants will also learn about the documentation required for inclusion in the RRI submittal and understand HUD's review process for the RRI.
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