Massachusetts Low-Income Housing to be Decarbonized Through a $50 Million Grant

In Massachusetts, there are over 2.6 million homes, many of which are antiquated and energy-inefficient, using fossil fuels for heating and cooking. Interestingly, approximately 30% of the state's carbon emissions originate from buildings. In light of the state's legally binding climate targets, a drastic overhaul of the building sector is not just desirable, but essential.

To expedite this "decarbonization" process - a significant reduction in emissions - the Healey administration disclosed a novel $50 million grant initiative on Thursday. This initiative is specifically designed to fund the retrofitting of low and moderate-income housing units. Managed by the Department of Energy Resources, the grant can be deployed for numerous modifications including replacing fossil fuel heating systems with air or ground-source heat pumps, upgrading electrical panels, substituting outdated windows, enhancing insulation, and installing rooftop solar panels.

Governor Maura Healey stressed the significant burden of energy and housing costs on citizens during her announcement of the new grant program. The initiative is set to directly address these dual challenges, allowing those in the greatest need to gain immediate benefits from healthier, affordable electric heating, cooling, hot water, and energy efficiency.

This new program aspires to achieve several objectives. These include reducing building carbon emissions, improving public health by enhancing indoor air quality, sustaining the affordability of existing low-cost housing, and ensuring that those most affected by fossil fuel usage and other forms of pollution are not left behind.

Rebecca Tepper, the Secretary of Energy and Environmental Affairs, emphasized the program's core focus on environmental justice. By beginning home retrofitting in low-income communities, it will provide cleaner air and lower utility bills to those who need them the most, while rectifying past environmental wrongs and fostering a healthier, more equitable future.

However, the expense associated with renovation and retrofitting should not be underestimated. As anyone who has undertaken a home or apartment renovation can attest, retrofitting a single-family home or apartment can easily exceed $30,000.

Kerry Bowie, president and executive director of Browning the Green Space, highlighted that current state and federal programs typically provide rebates that require upfront full payment, which often proves challenging for lower and moderate-income residents. Moreover, he pointed out the issues faced by renters who rely on their landlords to fund retrofitting, as these property owners may lack the incentive to invest in the work, despite its potential to reduce utility costs and create healthier living environments.

The state's ambitious decarbonization plan, according to a report released last year, involves the retrofitting of 500,000 homes by 2030. This calls for the retrofitting of 20,000-25,000 homes annually until 2025, scaling up to 80,000 homes per year by 2030.

Pat Stanton, the executive director of the environmental nonprofit E4TheFuture, acknowledged that the $50 million grant program might only fund a fraction of the total requirement. However, she emphasized the importance of making a start and celebrating initial successes.

The Low- and Moderate-Income Housing Decarbonization Grant Program receives its initial funding from the Department of Energy Resources ($25 million), the Department of Environmental Protection ($18.5 million), and the remaining state's federal American Rescue Plan Act funds ($6.5 million).

Eligible entities such as individual building owners, non-profits, municipalities, or other public entities can begin submitting applications for the grant funds from June 1. The grants will be disbursed on a rolling basis, with the potential for funding as early as August.

In a related development earlier this year, lawmakers proposed legislation for a similar grant program, dubbed the Zero Carbon Renovation Fund. This initiative proposes the use of $300 million of the remaining federal COVID-relief funds to assist in retrofitting public and affordable housing units, schools, and other municipal buildings.