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The Inflation Reduction Act created two home energy rebates programs, the Home Owner Managing Energy Savings (HOMES) and the High-Efficiency Electric Home Rebate (HEEHR), that can help provide funding support for energy-efficiency improvements or electrification upgrades in multi-family buildings. HOMES funds performance-based rebates for efficiency upgrades while HEEHR funds income qualified electric upgrades, both of which are administered by each state, resulting in variable availability and processes. Owners should consider their current projects and whether they align with HOMES or HEEHR before applying, and keep in mind that factors such as reservation systems, phased rollouts, updated Department of Energy guidance, and funding constraints can all impact access to these rebates.
Understanding Home Energy Rebates for Multifamily Buildings
In the midst of fluctuating energy costs and heightened awareness towards sustainability, two major home energy rebate programs created under the Inflation Reduction Act (IRA) are presenting significant opportunities for multifamily property owners. These programs, named the Home Owner Managing Energy Savings (HOMES) and the High-Efficiency Electric Home Rebate (HEEHR), can provide funding aid for capital projects, energy-efficiency enhancements, and electrification upgrades for multifamily buildings. However, the eligibility conditions and program deployment differ greatly from state to state.
It is, therefore, essential for property owners and investors to understand the unique operational structures of these programs, and evaluate how they could leverage them in accordance with their planned upgrades or improvements. In this article, we shed light on the key aspects of HOMES and HEEHR, the process of their state-level rollout, and the strategic approach multifamily owners should adopt to optimize their access to these rebates.
HOMES and HEEHR: An Overview
HOMES and HEEHR, despite often being discussed together, are distinct programs with their own characteristics and implementation guidelines.
HOMES (IRA §50121), alternatively referred to as Home Efficiency Rebates (HER), offers performance-based rebates for energy-efficiency upgrades that result in a reduction of the overall energy usage within a building by 20-35% or more. Importantly, this program applies to multi-unit residences, not just single-family homes.
HEEHR, previously known as HEAR/HEEHRA (IRA §50122), provides funding of up to $14,000 per unit for income-qualified electric upgrades in eligible low- and moderate-income multifamily buildings. Like HOMES, it also applies to multifamily dwellings.
Navigating the Rebate Programs: Key HOMES and HEEHR Questions Answered
Understanding the unique characteristics and processes of these programs can be complex. Here are the answers to some frequently asked questions about HOMES and HEEHR:
How is the funding for these programs allocated across different states?
Funding allocation for HOMES and HEEHR is determined by the Department of Energy (DOE) through formula grants. The official list of IRA home energy rebates state allocations provides a detailed overview of the funding available for each state.
When will the funding become available?
The availability of funds depends on the individual states’ application to the DOE and their preparation of operational infrastructure. The exact time when the funds become available for multifamily owners is when the state’s program is officially live and there exists a state-approved participation pathway for the project.
Which states have currently activated these programs?
The Home Energy Rebates Tracker, updated in May 2026, provides a list of states that have activated the HOMES or HEEHR programs.
How do HOMES and HEEHR apply to multifamily projects?
HEEHR is typically suitable for income-qualified electric upgrade projects, offering support for eligible upgrades like heat pumps, heat pump water heaters, electrical upgrades, and appliance replacements. HOMES, on the other hand, aligns better with comprehensive building-efficiency strategies like HVAC modernization, insulation and envelope upgrades, coordinated retrofit packages, and performance-based energy reduction plans.
What is the current status of these programs in California?
In California, the rollout of these programs exemplifies how high demand and operational constraints can affect access to HOMES and HEEHR rebates. Since the state launched the first phase of HEEHR in October 2024, demand has exceeded supply, leading to fully booked reservations for single-family residences, paused intake pathways, and delays in processing existing applications for multifamily properties.
What should be considered before pursuing these incentives?
Planning early can help reduce delays and execution risks. Therefore, before taking steps towards these incentives, it is vital to evaluate your project’s alignment with your larger capital planning strategy, check your state’s program status, comprehend the requirements, and anticipate potential funding constraints or waitlists.
How to Leverage HOMES and HEEHR Opportunities Effectively
While HOMES and HEEHR can significantly support multifamily portfolios, successfully accessing the funding requires more than just submitting an application. States control the timing of rollout, eligibility criteria, contractor requirements, and documentation processes, which can all impact the application process, especially in high-demand markets like California.
Therefore, to effectively leverage these incentives, multifamily owners should ensure a thorough evaluation of the incentives across their portfolio footprint, align projects with program eligibility requirements, navigate income qualification and reservation processes, and coordinate contractors, documentation, and timing before work begins. Contact us today for in-depth assistance on fitting HOMES and HEEHR incentives into your multifamily strategy or for support with program requirements in your state.
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