VHFA: on‑bill weatherization program has funded 16 projects, will return $6M and keep $3M to continue pilot

Vermont Housing Finance Agency officials told the House Energy and Digital Infrastructure Committee that the state’s on‑bill weatherization pilot has produced 16 funded projects to date, far below the original target, prompting VHFA to return $6 million of its initial $9 million appropriation and retain $3 million to continue the effort through December 2025.

The program — Weatherization Repayment Assistance Program, or WRAP — was designed to finance comprehensive home weatherization and related measures by placing a repayment charge on a household’s utility meter. "The program funding is targeted to households earning at or below 120% of area median income," said Mia Watson, Central Programs Manager, Vermont Housing Finance Agency, during the committee briefing. Watson said VHFA and participating utilities have moved tariffs so WRAP is not tariff‑limited while the grant remains in place.

WRAP was intended to fill a “middle income” financing gap left between the federal Weatherization Assistance Program (WAP) and market loans, offering low‑cost capital (a 2% interest rate) with long terms (up to 15 years), no traditional credit underwriting and utility‑integrated energy efficiency incentives. Projects must include a Home Performance with ENERGY STAR–verified weatherization scope; WRAP may also finance heat pumps, water heaters and certain health and safety measures.

Committee members were given multiple program details and performance metrics. Watson said the program launched slowly after a 2021 appropriation and a December 2022 kickoff, and did not feel fully scaled until about September 2023. VHFA expected roughly 500 projects per year under the original design but has funded 16 projects to date. Average total project…