Shutters and trim have been removed around all the old windows and very soon new energy efficient windows will be professionally installed. A close look reveals a puppy watching through the window.

State and Federal Whole Home Repair Programs: Can They Solve the Weatherization Assistance Program Deferrals Problem?

By Jennifer Moon, Ph.D.

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Investment in weatherization is sound public policy. Weatherization checks all the boxes of improving energy efficiency among low-income households, easing the strain on household budgets, and reducing greenhouse gas emissions. Residents experience improved health and well-being as a result of a more comfortable living environment, with benefits for mental and physical health. Residents also enjoy improved indoor air quality and become more resilient to periods of extreme heat or cold. During such times, there is also less strain on the grid, which improves community resilience generally, with particular benefits for those living with chronic health conditions who rely on a steady power supply. But the ability to make home weatherization improvements is highly dependent upon the home’s condition, shutting too many frontline community members out of these benefits for health and well-being. Whole home repair programs can make needed improvements accessible and affordable and ensure that low-income households have the ability to improve the energy efficiency and health of their homes.  

Background

The Weatherization Assistance Program (WAP) was created in 1976 to help households with incomes under 200% of the Federal Poverty Level reduce energy costs, increase home energy efficiency, and improve the health and safety of their living environment. However, the WAP program policies and funding levels, combined with the condition of the country’s housing stock, pose significant barriers to the ability of frontline communities to take advantage of available weatherization resources and federal climate investments that could increase their ability to adapt to climate change. 

Policy solutions at the state and federal levels are desperately needed to address both the home repair needs that are a barrier to weatherization and to significantly increase weatherization assistance program capacity. Pennsylvania’s Whole Home Repair Program, launched in 2022, is inspiring efforts at the state and federal levels to develop policy solutions that hold promise for tackling the home repair needs piece of the puzzle. 

For those homes that are in fairly good condition, the WAP provides weatherization services that include repairing or replacing heating and cooling systems, installation of insulation, updating lighting and appliances, and solar installation. The program is also authorized to make minor home repairs to windows, doors, walls, and roofs to improve energy efficiency. Populations that are particularly vulnerable, including older adults, households with children, those living with disabilities, and those with high energy cost burdens are prioritized for assistance.1 

In recent years, the WAP has seen an influx of new investment. In 2009, the American Recovery and Reinvestment Act (ARRA) made a $5 billion investment in the program. The Infrastructure Investment and Jobs Act (IIJA) allocated an additional $3.5 billion to the WAP. These funds are available until they are expended. These appropriations were in addition to over $300 million in formula funding and over $600 million directed to the program through the Low-Income Home Energy Assistance Program (LIHEAP) in 2022.2

That said, the WAP clearly does not meet the need. In 2022, there were estimated to be 36 million households that were eligible for the WAP, with a program capacity of about 100,000 houses annually.3 Although multi-family housing is eligible for WAP assistance, renters are reliant upon their landlords to apply and to make needed energy-efficiency improvements. Many low-income mobile homeowners live in homes that were built before 1976 when national quality standards were established. They tend to be especially energy inefficient and less likely to qualify for weatherization assistance, as they often fail to meet structural requirements for energy efficiency upgrades.4 

For those who might be eligible for WAP assistance, however, the scale of home repair needs, particularly in frontline communities, is a significant factor limiting the ability of low-income households to weatherize their homes.5 When homes have structural deficiencies or major repair needs, they are “deferred” from the WAP. In many cases, although this is not an outright denial, it is effectively a denial when households are unable to afford the cost of needed repairs. According to 2021 data, 5.1 million low-income households are both energy burdened and have home repair needs, with an aggregate estimated cost of $22.5 billion.6 More than 25% of energy-burdened low-income homeowners live in a home with at least one repair need costing on average over $4,000.7 

Weatherization Needs and Housing Stock Quality

Low-income households are estimated to spend up to three times as much on energy costs compared to higher-income households. Black, Indigenous, and People of Color (BIPOC) households contend with energy cost burdens that are 43% higher for Black households and 20% higher for Latine households compared to white households. Renters also tend to have a higher energy burden compared to homeowners. More than 25% of U.S. households across the country (approximately 31 million households) are estimated to have an energy cost burden exceeding 6% of household income, and about 50% of households (nearly 16 million) of those have extreme energy cost burdens of greater than 10%. Weatherizing a home can reduce energy cost burden by approximately 25% on average.8 

Despite the new funds that have been dedicated to the program and the clear need for weatherization assistance, the quality of the U.S. housing stock impedes energy-efficiency investments generally and WAP participation specifically. The U.S. housing stock is older than at any time in U.S. history. According to American Community Survey data, over half of U.S. homes (51.3%) were built before 1980.9 With older housing stock comes increased repair and maintenance needs. Nearly 36% of occupied housing units were reported to need repairs in the 2017 American Housing Survey. About 20 million homes built before 1970 have been reported to have repair needs. The cost to address housing quality issues across the country is estimated to be about $127 billion, with low-income households comprising approximately $51 billion of that amount. The average cost of home repairs is estimated to be about $3,000, with about 5% of homes requiring repairs costing more than $5,000. Low-income renters with children, BIPOC households, and older adult homeowners are most likely to live in homes needing repair.10 Older homes are also more likely to be energy inefficient, as the first building energy standard was not developed until 1975.11

Remodeling and repairs are needed for several reasons:

  • To preserve affordable housing stock. Housing availability and affordability is affected not only by the supply, location, and type of new housing units built but also how many existing, older homes can be maintained. 
  • To improve the health and safety of the housing stock. Poor housing quality is associated with respiratory illnesses such as asthma and lung cancer, depression, anxiety, physical injuries, vector-borne illness from pests, and hypothermia.12 
  • To facilitate weatherization. Weatherizing reduces energy cost burdens and greenhouse gas emissions.

There are, however, racial disparities in remodeling activity. Home equity among white homeowners is twice as high as Black homeowners and 37% higher than Latine homeowners, making it less likely that these BIPOC households can access financing or refinancing.13 

The Problem of Deferrals

Homes are deferred from the WAP for deficiencies that include plumbing problems, failing roofs, large holes or leaks in walls, or outdated electrical wiring, like knob and tube. These are problems characterized by the U.S. Department of Housing and Urban Development (HUD) as “moderately or severely inadequate.” Nearly 3 million or 3.4% of owner-occupied homes met this criteria in 2021.14 

Deferral rates of over 10% among WAP applicants are not uncommon, with rates sometimes reaching up to 20%.15 In 2018, agencies receiving WAP funds reported that structural problems, mold, and moisture or standing water were most common reasons for deferrals. Other common problems include heating, plumbing, and electrical issues and pests.16

Recognizing the need for home repair funding, the Consolidated Appropriations Act of 2022 included provisions for a Weatherization Readiness Fund (WRF). In FY 2022, $15 million was appropriated to the WRF, and for FY 2023 and FY 2024, funding was increased to $30 million annually. These funds can be used for more extensive roof repairs, foundation work, mold and moisture remediation, and the like.17 Though significant in its recognition of the problem associated with housing quality issues and the need for pre-weatherization investment, the WRF falls far short of the need.

State-Level Response

Apart from the Weatherization Readiness Fund, funding for home repairs for low-income households primarily consists of a patchwork of local programs and funding sources that, though well-intentioned and meeting the needs of some, are not coordinated, difficult to access, and woefully insufficient.

To date, the most promising response to the deferral problem and the repair needs of low-income households at the state level has been Pennsylvania’s Whole Home Repairs Program. The program grew out of the work of community housing and energy advocates and was championed in the state legislature by State Senator Nikil Saval of Philadelphia. The program offers grants to households with incomes less than 80% of Area Median Income and forgivable loans to small landlords in amounts up to $50,000. The program enables homeowners to make more extensive and necessary repairs to facilitate energy efficiency and safety improvements. It also provides funding for workforce development in the home repair sector. With typical home repair needs of a few thousand dollars, this program held the promise of making needed home repairs within reach for many low-income households. 

The state allocated $125 million in American Rescue Plan Act funds to launch the program, and key sponsors fought for the state to continue program funding. An additional $50 million was included in Gov. Josh Shapiro’s recent budget and was considered by the Pennsylvania State Legislature as part of 2024-25 budget negotiations. Ultimately, renewed program funding was not included in the state budget. 

While efforts continue in Pennsylvania to continue a popular and much-needed program, the Whole Home Repairs Program is inspiring other states such as Maryland and Massachusetts to design similar programs. Legislation has also been introduced in Congress to create a home improvement bill modeled on the Pennsylvania program.18

Conclusion

The success of weatherization efforts will ultimately hinge on the ability to find a fix to the home repair needs of low-income households. The WAP provides much-needed services to low-income households living in homes that meet housing quality standards. Those living in substandard housing, however, are being left behind. Not only do they lack the capacity to make their homes more energy efficient and reduce their energy cost burden, but their health and welfare continues to be jeopardized, they have greater vulnerability to extreme weather, and they face greater risks of homelessness. Recent state initiatives to address home repair needs hold the promise of both increasing housing stability and resilience to climate change.

  1. U.S. Department of Energy, “Weatherization Assistance Program”; U.S. Department of Energy, “Weatherization Assistance Program: Whole-House Weatherization.” ↩︎
  2. National Association for State Community Service Programs, “Weatherization Assistance Program Funding Report, Program Year 2022.” ↩︎
  3. Midwest Energy Efficiency Alliance, “Income-Qualified Program Innovations to Reduce Deferral Rates,” August 2022. ↩︎
  4. Just Solutions, “The Perfect Storm of Extraction, Poverty, and Climate Change,” May 2023. ↩︎
  5. Vox, “How to fight the affordable housing and climate crises at once,” April 17, 2022; NPR, “A low-income energy-efficiency program gets $3.5B boost, but leaves out many in need,” May 13, 2022. ↩︎
  6. Federal Reserve Bank of Philadelphia, “Repair Needs Among Weatherization Assistance–Eligible Homeowners,” March 2023. ↩︎
  7. Federal Reserve Bank of Philadelphia, “Measuring and Understanding Home Repair Costs A National Typology of Households,” September 2019. ↩︎
  8. American Council for an Energy-Efficient Economy, “High High are Household Energy Burdens?: An Assessment of National and Metropolitan Energy Burden Across the United States,” September 2020. ↩︎
  9. U.S. Census Bureau, American Community Survey, 2018-2022 ACS 5-Year Data Profile. ↩︎
  10. Policy Map, “The Real Cost of Home Repairs”; Federal Reserve Bank of Philadelphia, “Measuring and Understanding Home Repair Costs A National Typology of Households,” September 2019. ↩︎
  11. U.S. Department of Energy, “Country Report on Building Energy Codes in the United States,” April 2009; Joint Center for Housing Studies of Harvard University, “Despite a Pandemic Remodeling Boom, Aging US Homes Require Additional Investment,” March 23, 2023.  Lead is also most likely to be present in homes built before 1978. (U.S. Environmental Protection Agency, “Protect Your Family from Sources of Lead.”) ↩︎
  12. Green and Healthy Homes Initiative, “Achieving Health and Social Equity through Housing: Understanding the Impact of Non Energy Benefits in the United States”; Green and Healthy Homes Initiative, “Weatherization and its Impact on Occupant Health Outcomes,” 2017. ↩︎
  13. Joint Center for Housing Studies of Harvard University, “Despite a Pandemic Remodeling Boom, Aging US Homes Require Additional Investment,” March 23, 2023. ↩︎
  14. Joint Center for Housing Studies of Harvard University, “Despite a Pandemic Remodeling Boom, Aging US Homes Require Additional Investment,” March 23, 2023. ↩︎
  15. Joint Center for Housing Studies of Harvard University, “Despite a Pandemic Remodeling Boom, Aging US Homes Require Additional Investment,” March 23, 2023; Oak Ridge National Laboratory, “Exploratory Review of Grantee, Subgrantee and Client Experiences with Deferred Services under the Weatherization Assistance Program,” February 2015. ↩︎
  16.  Midwest Energy Efficiency Alliance, “Income-Qualified Program Innovations to Reduce Deferral Rates,” August 2022; Federal Reserve Bank of Philadelphia, “Repair Needs Among Weatherization Assistance–Eligible Homeowners,” March 2023; National Association for State Community Service Programs, “NASCSP Deferral Tracking Report, Summer 2018.” ↩︎
  17. National Association for State Community Service Programs, “WRF: Deferral Tracking Best Practices,” April 30, 2024; National Association for State Community Service Programs, “Weatherization Readiness Funding,” 2022. ↩︎
  18. Pennsylvania Department of Community and Economic Development, “COVID-19 ARPA Whole-Home Repairs Program”; Spotlight, “Demand for Pennsylvania’s Whole-Home Repairs Program has been overwhelming, but more funding is on hold,” December 11, 2023; WHHY News, “Pa. home repair and energy efficiency program resuscitated in Shapiro’s budget proposal,” February 8, 2024: Joint Center for Housing Studies of Harvard University, “Targeting Weatherization Supporting Low-Income Renters in Multifamily Properties through the Infrastructure Investment and Jobs Act’s Funding of the Weatherization Assistance Program and Beyond,” January 2023; Shelterforce, “Sealing the Cracks in Weatherization and Home Repair,” August 5, 2022; Smart Cities Dive, “A first-in-the-nation home repair program sees overwhelming demand,” April 25, 2024; Pennsylvania State Democrats, “Senator Nikil Saval Responds to Lack of Funding for Whole-Home Repairs in State Budget,” July 12, 2024; City and State Pennsylvania, “John Fetterman introduces federal Whole-Home Repairs legislation,” March 5, 2024; Commonwealth Beacon, “Amid housing crisis, let’s save older homes,” June 11, 2024; Pennsylvania Senate Democrats, “Overwhelming Demand for Whole-Home Repairs Program in Counties Across PA,” February 9, 2023; Spotlight, “More funding for home repair program left out of state budget despite high demand,” July 22, 2024. ↩︎