Energy efficiency
Federal funding for energy efficiency
Programs that help improve energy efficiency can significantly impact affordability by reducing occupants’ heating and cooling costs.
Energy efficiency upgrades can range from relatively low-cost measures, such as adding insulation or sealing doors and windows, to more substantial renovations, such as replacing outdated heating or cooling systems. These investments can also make homes more habitable and comfortable year-round, improving occupants’ health and well-being. There is a need for residential energy efficiency investments in single-family and multifamily housing.
Administering the Low Income Home Energy Assistance Program (LIHEAP) LIHEAP and the Weatherization Assistance Program (WAP) jointly. The WAP program is the primary federal resource dedicated to funding residential energy efficiency upgrades. Many jurisdictions administer WAP jointly with LIHEAP, which directly assists low-income households with their energy costs. This streamlined approach helps eligible households manage their utility bill in the short term while also helping them realize long-term cost savings. Administering the programs jointly can also be more cost-efficient for the administering agencies. States may direct up to 15 percent of their LIHEAP allocation towards WAP.
Using WAP and other federal funding sources for multifamily housing. Energy retrofits can reduce the operating costs of multifamily property while improving tenant habitability. Property will sometimes undergo energy efficiency upgrades as part of a broader rehabilitation effort (see the Rental Preservation category for more information). Owners may also be able to access loans when they finance or refinance their properties, although affordable housing owners ensure that rental income is sufficient to support these loans. WAP funds may also go to multifamily properties that meet specific requirements: income-eligible households must primarily occupy the property, and the owner must demonstrate that the cost savings realized through the program will benefit tenants.
Pairing energy efficiency upgrades with other home repairs. Single-family and multifamily property owners may be interested in pursuing multiple home upgrades and repairs at once, which can minimize occupants’ disruption and help reduce labor costs. Jurisdictions can consider offering a streamlined application so that owners can simultaneously secure funds for energy efficiency upgrades, lead hazard remediation, and other home repairs.
For more information on this topic, see this brief on Weatherization Assistance.