Incentives for Rental Properties Serving Income-Qualified Tenants
Energy-efficient upgrades to your rental property are a win-win for you and your tenants. Your property’s value could increase, it will be more appealing to renters, and tenants will save money on their utility bills. Plus, we’ll help you pay for it!
Improvements we’ll help you pay for
Based on the needs of each property, the units approved for this program could receive the following:
- Insulation
- HVAC system (either a central heat pump or ductless heat pump)
- Duct sealing
- Single-pane window replacement with double-pane windows
- Hybrid water heater
If repairs are needed to make those upgrades possible, Tacoma Power might also be able to help with repair costs.
Income Qualified Incentives
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We offer a forgivable loan to help you pay for rental property upgrades. Forgivable loans may cover up to 100% of the project installation costs within cost caps.
To qualify for a 5-year forgivable loan to upgrade your rental property, you must agree to maintain affordable rental rates. This includes:
- Keeping annual rent increases below 6% for the duration of the 5-year loan
- Reporting your rent amounts to Tacoma Power annually
- Maintaining the home as a rental for the term of the loan
If you sell the property, a prorated amount of your loan will be due immediately to Tacoma Power.
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We’ve partnered with PSE to help make home electrification upgrades easier and more accessible. Qualified renters may be eligible for energy-efficiency improvements and electric space-heating upgrades at no upfront cost to them or their landlord.
Visit PSE’s website to learn more about eligibility and available upgrades.
Here are the requirements to qualify
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Both the rental property and the tenants must meet specific requirements to qualify for this program.- The TPU account must be in the tenant’s name.
- The total household income for all tenants in a unit must not exceed 80% of the Area Median Income (see table below).
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Both the rental property and the tenants must meet specific requirements to qualify for this program.- Have four or fewer units per building
- Be served by Tacoma Power
- Have the same owner for the land and manufactured home, if applicable
How to get started
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Ensure the property and tenants meet the basic program requirements above.
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Connect with Tacoma Power
Contact Tacoma Power and speak with our staff, who will guide you through each step, including starting the necessary verification process to confirm your tenants qualify for the program.
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Get an energy audit
Tacoma Power will conduct an energy audit of your property and provide a recommended project scope outlining which upgrades your property qualifies for.
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Reach out to Tacoma Power Participating Contractors
Select at least two Tacoma Power Participating Contractors to bid on your upgrades.
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Submit bids for review
Submit your application materials and contractors’ bids to Tacoma Power. Our team will help you determine which forms you need to submit.
Tacoma Power will review your application and bid materials. If approved, you’ll next select your contractor and finalize your loan documents.
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Get Permission to proceed
Wait to receive your Notice to Proceed.
Once you receive it, your Participating Contractors will obtain any necessary permits and begin upgrading your units. You’ll need to prepare your tenants and provide advance notice to accommodate the contractor’s schedule and access needs.
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Project finalization
Close out your project. This includes a Tacoma Power program inspection and final permit approval. Your contractors will submit their invoices to Tacoma Power for direct payment.
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Enjoy!
Enjoy your upgraded investment property, knowing you provide tenants a comfortable home with manageable utility bills.
Help us connect with your Landlord
Submit your landlord’s information, and we’ll be happy to share program details with them.