New program helps Boston residents go green with home upgrades

A new loan program offered by the city of Boston helps residents to make energy-efficient and sustainable upgrades to their homes, bringing the city’s clean energy and climate efforts to people’s doorsteps.

In early January, Boston announced the launch of the HomeWorks Green Loan Program, which offers financial assistance to Boston homeowners undertaking energy-efficient and carbon-reducing home improvements. The Boston Home Center, a division of the Mayor’s Office of Housing, is overseeing the program — an effort to bolster the city’s sustainability and resiliency efforts and improve residents’ overall quality of life.

“This program is an investment in Boston’s homeowners and in the future of our neighborhoods,” Mayor Michelle Wu said in a statement. “The HomeWorks Green Loan Program will help residents make critical repairs that improve energy efficiency, safety, and comfort, which will help reduce monthly energy costs long-term while supporting our broader efforts to create a more sustainable and resilient Boston.”

The program is one of many city initiatives to support the city’s climate and clean-energy goals. As Boston seeks to reduce its greenhouse gas emissions and become carbon neutral by 2050, the city is paying particular attention to its buildings, which account for almost 71% of the city’s carbon emissions, according to a city estimate.

Through the HomeWorks Green Loan Program, residents can apply for interest-free deferred loans payable only when owners refinance, transfer or sell their homes. At least one-third of the renovation or repair work must qualify as eligible “green” repairs to be considered for funding.

The loans can cover both interior and exterior work, and focus on green updates that aren’t typically supported by existing incentive programs. Eligible green repairs can include, but aren’t limited to, basement moisture proofing; removal of asbestos, vermiculite, and knob and tube wiring; oil tank removal; electrical upgrades; advanced air sealing and pipe wrap; and installation of energy-efficient windows, doors, ceiling fans, heat pump water heaters, water fixtures and light fixtures.

The program is open to Boston residents who own and occupy homes of one to four units or condos, fall below certain asset limitations, and make no more than 135% of area median income, which would be less than $154,170 for one person and less than $220,320 for a four-person household.

Loan amounts will depend on household income and type of home, according to the city, so owners can receive up to $25,000 for condos, $40,000 for single-family homes, $55,000 for two-family homes, and $70,000 for three-family homes.

Applicants making between 120% and 135% of area median income must provide an equivalent loan match, while applicants making less than 120% have no match requirements. After 10 years, the city will forgive up to one-third of the loan amount associated with the green repairs.

For fiscal 2025, the city has allocated $650,000 for the program, which “is a critical part of our ongoing efforts to help residents improve the energy efficiency and sustainability of their homes,” said Alexander Sturke, communications director for the Mayor’s Office of Housing. The program is fully covered by city funding and doesn’t rely on federal money, he said.

The city expects it will fund about 39 applications for fiscal 2025, though the number could vary depending on the additional incentives available to homeowners, the types of properties, and the scope of work needed.

Sturke said the city views the HomeWorks program as an ongoing initiative and plans to maintain the program in future years as a consistent resource for residents. The city’s long-term goal, he said, is to leverage the program in combination with other incentive programs for residents, to maximize the impact on energy savings and environmental benefits.