Incentives for Rental Properties Serving Income-Qualified Tenants
Making energy efficient upgrades to your rental property is a win-win for you and your tenants. Your property’s value could increase and will be more appealing to renters, while tenants 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:
- HVAC system (either a central heat pump or ductless heat pump)
- Duct sealing
- Single-pane window replacement with double-pane windows
- Smart thermostat
- Hybrid water heater
If repairs are needed to make those upgrades possible, Tacoma Power might also be able to help with repair costs.
Here are the incentives you can choose from
We offer two incentive options to help you pay for upgrades to your rental property. Both options will cover 100% of the project installation costs. Choose one of these incentives:
- 5-year forgivable loan
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
If you sell the property, a prorated amount of your loan will be due immediately to Tacoma Power.
- Split grant and loan details
If the affordability covenant isn’t the right approach for you, we have another option that includes a partial grant and partial loan. Here’s the breakdown of how your project costs would be paid for:
- Free insulation (if needed)
- 30% of the total project costs will be covered by a grant that doesn’t need to be repaid
- The remaining 70% of the project costs will be covered by a 0% interest, 7-year loan, which doesn’t require a credit check.
Here are the requirements to qualify
Both the rental property and tenants must meet certain requirements in order to qualify for this program.
- The tenant’s income must not exceed 80% of the Area Median Income (see table below).
- The TPU account must be in the tenant’s name.
Rental Property Requirements
The property must:
- Have four or less units
- Have electric heat as the main heating source
- Be served by the Tacoma Power
- For manufactured homes, the land must be owned
How it works
Ensure the property and tenants meet the basic program requirements above.
Contact Tacoma Power and talk to our rental program manager, who will guide you through each additional step.
Tacoma Power will perform an energy audit of your property and provide a recommended project scope that outlines what upgrades your property qualifies for.
Pick at least two Tacoma Power Participating Contractors to give you bids for your upgrades.
Once you’ve selected your Participating Contractor, you can work together to fill out and submit your Tacoma Power application material along with the contractor’s bids.
Tacoma Power will review your application and bid material. If approved, you’ll next sign and notarize your loan documents.
Wait to receive your Notice to Proceed. Once you have this, your Participating Contractors will obtain any necessary permits and get to work upgrading your units. You’ll need to prepare your tenants and provide notices ahead of time to accommodate the contractor’s schedule and access needs.
Close out your project. This will include a program inspection by Tacoma Power and finalizing your permits. Your contractors will submit their invoices to Tacoma Power for direct payment.
Enjoy your upgraded investment property, knowing you provide tenants a comfortable home with manageable utility bills.
Contact us at 253-502-8363 or firstname.lastname@example.org.