HUD Provides Application Guidelines for the Rate Reduction Incentive (RRI) and the Small Rural Frozen Rolling Base Program
By: Norma Gay, Policy and Legislative Affairs Intern
June 29, 2026
Rate Reduction Incentive (RRI)
On June 23, HUD announced that the FY2027 Rate Reduction Incentive (RRI) application period will open on August 18, 2026. The RRI program encourages PHAs to lower utility costs and allows them to keep part of the savings if successful.
Application guidance includes the following:
- Apply under RRI Notice PIH 2024-31 or current notice.
- Complete the application through the Public Housing Portal between August 18, 2026 and September 30, 2026.
- Submit all documentation through the RRI Module in the Public Housing Portal.
HUD will provide training on the RRI Program and How to Submit RRI Applications in the Portal on the following dates:
Submit questions to PHFMDEnergyBranch@hud.gov with PHA Code and Name in the Subject Line (e.g. AB023 American Housing Authority)
Small Rural Frozen Rolling Base Program
HUD also announced applications for the Small Rural Frozen Rolling Base program. The program allows agencies to use a three-year average of utility consumption data to calculate their Utility Expense Level (UEL). This allows PHAs to lock in the Rolling Base Consumption Level (RBCL) for non-flat-rate utilities at pre-retrofit subsidy levels. Eligible PHAs must be small and rural (fewer than 550 units), pay utilities directly, and have a recent or upcoming energy or water conservation project.
Program guidance includes the following:
- This program is only available to PHAs on REAC’s Small Rural PHA list.
- It is only available for PHA-paid utilities, and for non-flat utilities.
- PHAs can opt into the program for Funding Year 2027 through the Public Housing Portal from now to August 14, 2026.
HUD will hold two training sessions on the program application:
For more information, contact HUD at PIHEnergyBranch@hud.gov or view program website at https://www.hud.gov/helping-americans/public-housing-energy-branch#programs
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