North Carolina would offer energy grants for older affordable apartment buildings

The State Energy Office within the Department of Environmental Quality would award grants for energy-saving improvements and replacements for fossil-fuel equipment. The usual definition covers buildings with at least five homes. At least half must be reserved for or occupied by households earning no more than 80% of the area's middle household income, adjusted for household size. Buildings must have served as affordable housing for at least 15 years and be in communities the department identifies as potentially underserved. The department could define affordable housing differently from the usual five-home and income requirements. Early-adoption incentives could not exceed $0.75 per square foot of eligible space. Amounts would depend on project scope, demonstrated energy savings, and state performance rules. Grants could also cover related health and safety repairs, planning, and technical help. The program would prioritize lower energy costs for low-income residents, better building performance, healthier indoor conditions, and clean energy goals. The proposal sets July 1, 2026, as its effective date.

North Carolina would set aside $5 million each year from its General Fund for staffing and operating the Affordable Housing Efficiency Grant Program. The Department of Environmental Quality would receive the money to run the grant program. The Department of Environmental Quality could use up to 6% of the money for administrative costs. The recurring funding would begin in the 2026–2027 fiscal year.

Grant recipients would keep their housing affordable and report project results to the State Energy Office each year. Recipients would report energy savings, residents' cost reductions, emissions reductions, and health or environmental benefits. The State Energy Office would report spending, completed projects, program performance, and recommended improvements to the Joint Legislative Commission on Energy Policy. The Department of Environmental Quality would set how long recipients must keep their affordability commitments. Upgrades must meet building codes and energy standards. Applicants using federal money alongside state money must also follow federal requirements. The proposal sets July 1, 2026, as the start date for these requirements. Recipients and the State Energy Office would submit reports annually.