Those who are considering making energy-saving improvements to their homes should research what help is available through the many programs created to reduce energy consumption and lower bills.
Arkansas Weatherization Program
This statewide program, which was developed to reduce energy use in severely energy-inefficient homes, pays 50 percent of the cost of improvements that lower energy consumption -- up to $1,500 of $3,000 in improvements. Eligibility requirements include:
• The home must have been built prior to 1997.
• The applicant must be a customer of one of the participating utility companies: Entergy Arkansas, Empire Electric, Southwestern Electric Power Co., Oklahoma Gas & Electric, CenterPoint Energy, SourceGas Arkansas or Arkansas Oklahoma Gas.
• The home must meet three of seven criteria on a self-assessment worksheet, which is available at tinyurl.com/lcoot66 or by contacting the Central Arkansas Development Council office at (501) 603-0909.
Weatherization Assistance Program
This program helps low-income households reduce their heating and cooling bills by providing grant money at the local level. According to the program's website, the average amount spent per home is $6,904 with no required contribution by the homeowner.
Households must meet certain income limitations -- currently they cannot exceed 200 percent of the Federal Poverty Guidelines. The program also awards priority points to households with members who are:
• Elderly
• Handicapped
• Under the age of 7
• American Indian
For more information, visit the program's website at tinyurl.com/ps3m66w or contact the nearest Community Action Agency:
• Black River Area Development in Pocahontas
• Central Arkansas Development Council in Benton
• Community Action Program for Central Arkansas in Conway
• Crowley's Ridge Development Council in Jonesboro
• Crawford-Sebastian Community Development Council in Fort Smith
• Pine Bluff-Jefferson County Economic Opportunities Commission in Pine Bluff
Electric Cooperatives of Arkansas
Electric cooperatives provide energy to more than 60 percent of the state through a member-based system. Each co-op operates independently and the services available vary by co-op. All of the co-ops offer a free, walk-through energy audit, and several offer a diagnostic audit for a fee that will be reimbursed if the member submits receipts for energy-efficient improvements within a specified time frame.
The cooperatives also sponsor an annual contest for a $50,000 home makeover.
Visit the individual cooperatives' websites, which can be accessed from aecc.com/distribution-cooperatives, to learn more.
Federal Housing Administration (FHA) Energy Efficient Mortgage (EEM)
The FHA Energy Efficient Mortgage Program allows consumers to finance the purchase of a home -- or refinance a current mortgage -- and include the cost of energy-saving improvements in the mortgage. To qualify for this type of loan, the buyer must have an energy inspection completed. The inspector provides a report listing recommended cost-efficient energy improvements and the estimated cost for each one.
The mortgage lender places the approved amount of money into an escrow account, and the funds are held until the work is completed and an inspector verifies that the improvements are installed and will meet the target energy savings. Work must be completed within 90 days of the loan closing date.
The FHA EEM fact sheet (available at tinyurl.com/pa82e3s) lists these examples of qualified improvements:
• Replacing a furnace/cooling system
• Fixing or replacing a chimney
• Insulating an attic, crawl space and/or pipes and air ducts
• Replacing doors or windows
• Installing active and passive solar technologies.
HomeStyle on 12/06/2014