Second Round of Grant Funding Under Affordable Housing Decarbonization Grant Program Will Lower Energy Bills, Improve Air Quality and Comfort in 600+ Homes

BOSTON - The Healey-Driscoll Administration today announced the second round of grants under its Affordable Housing Decarbonization Grant Program, with an additional $40 million in funding added to the Department of Energy Resources’ (DOER) program. 

Lieutenant Governor Kim Driscoll, along with Energy and Environmental Affairs Secretary Rebecca Tepper, Housing and Livable Communities Secretary Ed Augustus, DOER Commissioner Elizabeth Mahony, state and local officials, celebrated the awarding of $26.1 million to five organizations for affordable housing projects during an event at the Brian J. Honan Apartments in Allston. The grants will be used to fund deep energy retrofits and energy efficiency upgrades, building system electrification, and onsite renewable energy generation in 625 housing units. 

Grants will help affordable housing properties in five communities' lower energy demand and decarbonize through deep energy retrofits, energy efficiency upgrades and building electrification. The benefits of the grant program include higher-performing buildings that offer residents better indoor air quality and comfort, lower ongoing energy costs for residents and affordable housing providers, the opportunity for affordable housing providers to upgrade their housing stock, and healthier air in the communities where housing is located. 

“Massachusetts is leading the charge with our affordable housing decarbonization program, already transforming more than 1,300 households. This is about reducing costs, improving air quality, and setting the standard of creating climate-resilient affordable housing,” said Governor Maura Healey. “With more funding, we’re doubling down on our mission to tackle high housing and energy costs head-on. By providing modern electric home technologies to those who need them most, we’re not just upgrading homes, we’re significantly lowering emissions from our existing buildings.” 

“This grant program will deliver the benefits of our clean energy transition directly to affordable housing communities across Massachusetts,” said Lieutenant Governor Kim Driscoll. “These investments will empower families in our housing developments, provide opportunities for local workers, and create healthier environments for all residents and businesses. We are paving the way for a brighter, more sustainable future through these deep energy retrofits.” 

The Affordable Housing Decarbonization Grant Program was created in 2023 with $50 million in funding. DOER and the Department of Environmental Protection (MassDEP) directed an additional $40 million in funding in response to the strong interest from housing owners. The Healey-Driscoll Administration awarded over $27.3 million to seven communities in the first round to upgrade equipment, insulation, and other features to lower energy demand and decarbonize. The large-scale grant program funds deep energy retrofits and decarbonization projects in the affordable housing sector that benefit low- and moderate-income residents. The objectives of the program are to improve public health, preserve housing affordability for residents, provide local workforce opportunities, and accelerate Massachusetts’ clean energy transition. 

“Through these funds, more families are going to have comfortable, well-insulated homes and much lower energy bills,” said Secretary Tepper. “Increasing energy efficiency and electrifying buildings is proven to be a cost-effective way to reduce dangerous emissions and lessen our reliance on the imported fossil fuels that are costing families so much.” 

“We can simultaneously achieve our state’s climate goals and preserve and create affordable housing,” said Secretary Augustus. “With the Affordable Homes Act, Governor Healey and Lieutenant Governor Driscoll are committed to making the capital investment necessary to decarbonize our existing public housing stock. Thanks to Secretary Tepper and DOER, we will continue to build a cleaner, more affordable Massachusetts.” 

“We’re thrilled to support these five affordable housing projects. With this additional $40 million, we look forward to more projects like them to enable more equitable access to healthy, resilient homes and communities for years to come,” said DOER Commissioner Mahony. “This combination of reduced heating and cooling loads through energy efficiency and electrification is key to lowering energy bills, reducing emissions from our buildings, and improving the resiliency of our electric grid.” 

“MassDEP is excited to support these grants to provide more comfortable, affordable houses to families in need,” said MassDEP Commissioner Bonnie Heiple. “By investing an additional $40 million in electrified affordable housing, we’re driving down emissions and delivering cleaner air to all Massachusetts residents. We’re looking forward to seeing this program expand and residents being able to enjoy these updated homes.” 

The grant awardees are: 

Boston: 

- Brighton Community Development Corporation will receive $2 million for its Honan Apartments project in Allston. The project will include the full electrification of heating and hot water through the installation of air source heat pumps and energy recovery ventilation. The project aims to become solar-ready to install a 54 kW solar system in future phases. The project estimates a 62% reduction in energy consumption through a combination of efficiency measures including full exterior envelope wrapping, window upgrades, and roof replacements.

- Boston Housing Authority will receive over $5.8 million for its Franklin Field project in Dorchester. The project proposes full decarbonization with a ground source heat pump system to fully electrify and replace the decentralized gas heating and hot water system, a significant upgrade. Gas stoves will be replaced with induction. The project projects a 55% reduction in energy use intensity and anticipates $12,000 in annual energy cost savings. Efficiency upgrades will include exterior cladding of rockwool batting, new roofing, and window upgrades.

- Madison Park Development Corporation will receive over $13.5 million for its Orchard Gardens project in Roxbury. The project seeks to partially displace its natural gas consuming system by converting 100% of cooking, 75% of space heating, and 50% of water heating from gas to electric. The project target is a 50% reduction in energy consumption through installation of a new vapor air barrier or air barrier membrane, continuous insulation and ventilated cladding, new triple pane windows, and attic insulation. 

Somerville:

- Visiting Nurse Communities will receive over $3.8 million for its 259 Lowell Street project in Somerville. The project will include full electrification of heating through an air source heat pump system and of water heating through an air-to-water heat pump system. The project aims for a 40% energy savings and a sizable upgrade to the exterior insulation including new air and vapor barriers, replacing balcony doors, window upgrades, exterior insulation, and a new roof. 

Worcester:

- Worcester Common Ground will receive $820,000 for its projects at 124, 126, 128 Canterbury Street and 6 Florence Street in Worcester. The project goal is electrification through heat pump, energy recovery ventilation and domestic hot water heat pump installations as well as a solar system. The project expects a 65-73% reduction in energy consumption across the buildings. Planned efficiency measures include insulation and new roofs and windows. 

The decarbonization of Massachusetts’ existing buildings is a critical component of the state’s strategy to achieve net-zero emissions by 2050. The program will provide significant investments in the building sector, and leverage programs like Mass Save to help affordable housing developments lower emissions and energy use. 

Awardee Statements and Statements of Support: 

Chrystal Kornegay, CEO, MassHousing: 

“Today’s announcement is another significant step forward in our shared work of advancing the state’s climate goals, while modernizing affordable homes across the Commonwealth. The Healey-Driscoll Administration has set a strong vision of meeting the state’s clean energy and climate goals by combining significant new state investments with federal dollars and private resources. These new partnerships will ensure that Environmental Justice populations and communities benefit from the clean energy transition. We congratulate DOER and all today’s awardees for their shared commitment to decarbonizing affordable homes.”  

Caitlin Robillard, Allston Brighton CDC: 

“Allston Brighton CDC is very grateful to the Healey-Driscoll Administration including Secretary Tepper of the Executive Office of Energy and Environmental Affairs for making these critical funds available to decarbonize our affordable housing stock. Simply put, the Deep Energy Retrofit of the Brian J. Honan Apartments would be infeasible without these state resources. The Decarbonization Grant from Commissioner Mahoney at the Department of Energy Resources will be combined with funding provided by the City of Boston’s Mayor’s Office of Housing and anticipated funding from the Executive Office of Housing and Living Communities to fully electrify these 50, deeply affordable apartments and allow us to install a new, state of the art, highly insulated building envelope, which will reduce energy usage by a whopping 62%. 

Linda Cornell, VNA of Eastern Massachusetts, VNA Senior Living Communities: 

"The VNA Senior Living Community in Somerville provides a home for over 95 low-income seniors who would otherwise be homeless, in a nursing home or institution. We are so grateful that Somerville Senior Phase One LLC, located at 259 Lowell in Somerville, has been selected for DOER’s Affordable Housing Deep Energy Retrofit Grant Program. This decarbonization funding, combined with housing subsidy made available through EOHLC, MassHousing, and the City of Somerville, will allow the VNA, in partnership with WinnDevelopment, to transform this aging property into an all-electric, high performance senior housing community while demonstrating the Commonwealth’s leadership in the creation and preservation of high quality, healthy, and affordable housing."