Key Takeaways:
- HOMES and HEEHR rebates may help support multifamily energy-efficiency and electrification projects, but program eligibility and rollout vary significantly by state.
- Multifamily owners should evaluate whether their projects align more closely with building-wide efficiency upgrades under HOMES or income-qualified electric-to-electric upgrades under HEEHR before pursuing incentives.
- High-demand markets like California demonstrate how reservation systems, phased rollouts, updated Department of Energy guidance, and funding constraints can impact access to HOMES and HEEHR rebates.
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The Inflation Reduction Act (IRA) created two major home energy rebates programs that can apply to multifamily buildings: 1) Home Owner Managing Energy Savings (HOMES) and 2) High-Efficiency Electric Home Rebate (HEEHR). These programs are often discussed together, but they operate differently and are administered by each state — which is why availability and process vary across the country.
If you own, operate, or invest in multifamily properties, understanding how these programs work can help you evaluate whether upcoming capital projects, electrification upgrades, or energy-efficiency improvements may qualify for funding support.
Below, we break down the programs, explain how states are rolling them out under the updated May 2026 Department of Energy (DOE) guidance, and answer the key questions multifamily owners are asking — including what’s happening in California.
About the Two Home Energy Rebates Programs
Here’s key information about the two programs and how they may apply to your multifamily properties:
1. HOMES
The HOMES program (IRA §50121), still referenced as Home Efficiency Rebates or HER in some state trackers, funds performance-based rebates for efficiency upgrades that reduce overall energy use (20–35%+ modeled energy savings at the building level). It can apply to dwellings in multifamily buildings, not just single-family.
Key point for owners: HOMES is generally aligned with whole-building or bundled efficiency scopes, and states can use modeled or measured approaches within federal requirements. Under DOE’s May 2026 guidance, ENERGY STAR certification is optional for HOMES, although states may retain additional program-specific requirements.
2. HEEHR
HEEHR, formerly referred to as HEAR/HEEHRA, (IRA §50122) funds income qualified electric upgrades and supporting measures( generally up to $14,000 per unit for eligible low- and moderate-income multifamily buildings). It also covers dwellings in multifamily buildings.
Key point for owners: HEEHR is designed around income-qualified households (up to 150% of area median income, with higher support at lower income levels) and commonly uses point-of-sale or contractor-driven delivery models.
Frequently Asked Questions About HOMES and HEEAR
Here are answers to some FAQs about these two home energy rebates programs:
How much funding is available in my state for these programs?
The DOE provides funding to states through formula grants. Below are selected large-state allocations (rounded) that often matter to multifamily portfolios (you can find a full list of IRA home energy rebates state allocations here). These are estimated allocations — states still control program design, launch timing, and how funds are deployed.
| State | HOMES (50121) | HEEHRA (50122) | Total (Est.) |
| Texas | $345.3M | $344.0M | $689.3M |
| California | $291.4M | $290.3M | $581.6M |
| Florida | $173.3M | $172.7M | $346.0M |
| New York | $159.0M | $158.4M | $317.4M |
| Illinois | $132.0M | $131.5M | $263.4M |
| Pennsylvania | $129.7M | $129.2M | $258.9M |
| Ohio | $124.6M | $124.2M | $248.8M |
| Georgia | $109.6M | $109.2M | $218.8M |
| North Carolina | $104.7M | $104.3M | $209.0M |
| New Jersey | $91.7M | $91.3M | $183.0M |
What to do with this: Treat the allocation as the ceiling of what a state can deploy. What matters next is whether your state has launched, what measures it supports, and what intake process it is using.
When will funds be available?
These programs are not a single national rollout. States had to submit applications to DOE and build the operating infrastructure (systems, contractor networks, reporting, consumer protections). As a result, some states launched programs quickly, while others remain in development or phased rollout stages.
For multifamily owners, “available” typically means:
- Your state’s program is officially live.
- Your project can access the program through the state’s approved participation pathway.
Which states are currently live?
Because the states with HOMES and HEEHR programs available are continually changing, we recommend using a tracker that is updated on a rolling basis and cites state sources.
According to this tracker (last updated May 2026), there are currently 13 states with available HOMES (listed as HER in the tracker) or HEEHR (listed as HEAR in the tracker) programs. The majority of states are HOMES or HEEHR approved, but do not yet have programs listed as “available”.
How do these programs typically apply to multifamily projects?
Most multifamily owners encounter the programs in one of two ways:
HEEHR for income-qualified electric upgrade projects
If your property includes income-qualified households — or qualifies through a state-approved proxy method — HEEHR may support eligible electric-to-electric upgrades and supporting measures such as:
- Heat pumps
- Heat pump water heaters
- Electrical upgrades
- Appliance replacements
Under DOE’s May 2026 guidance, HEEHR eligibility for existing homes is now generally limited to electric-to-electric upgrades, and homes must use insulation and air-sealing rebates before HEEHR-funded heating/cooling upgrades unless they already meet a DOE-approved, state-specified insulation and air-sealing level. Because these programs often involve income verification, reservations, and state-specific delivery pathways, administrative planning is critical before work begins.
HOMES for building-wide efficiency upgrades
HOMES may align with larger building-efficiency strategies, including:
- HVAC modernization
- Insulation and envelope upgrades
- Coordinated retrofit packages
- Performance-based energy reduction plans
Since rebate value is tied to savings performance, owners should expect documentation, modeling, reporting, and quality assurance requirements. DOE’s May 2026 guidance also makes ENERGY STAR optional under HOMES, although states may retain additional requirements in their own program designs.
What’s happening in California?
California provides one of the clearest examples of how demand and operational constraints can affect these programs.
California received an estimated:
- $291.4 million for HOMES
- $290.3 million for HEEHR
- Approximately $581.6 million total
California launched the first phase of HEEHR in October 2024, beginning with multifamily properties. However, demand accelerated quickly.
As of early 2026:
- Single-family HEEHR reservations were fully reserved statewide.
- Certain intake pathways were paused.
- Multifamily Stage 1 application submissions were temporarily paused due to demand while existing applications were processed.
For multifamily owners, this highlights an important operational reality: programs may appear “open” while still functioning through reservation systems, waitlists, phased intake, or temporary pauses.
Timing, contractor coordination, and documentation readiness can materially impact your ability to access funding.
Is California’s HOMES program active yet?
California continues building out its HOMES program framework, including performance-based approaches tied to measured savings.
For multifamily owners, the important takeaway is that participation may occur through multiple pathways — each with its own rules, documentation standards, and qualification process.
Owners should expect program structures to evolve as implementation expands.
What should you do before pursuing these incentives?
Before moving forward, start by evaluating where your project fits within your broader capital planning strategy.
Questions to consider include:
- Is your project near-term replacement work or part of a longer-term retrofit plan?
- Does your scope align more closely with HOMES efficiency savings or HEEHR electrification-to-electric upgrade requirements?
- Has your state launched the applicable program?
- Are approved contractors or reservation systems required?
- Does your project involve income-qualified households?
- Are funding constraints or waitlists already affecting participation?
Because these programs are highly process-driven, planning early can help reduce delays and execution risk.
How MGO Can Help
HOMES and HEEHR may create meaningful opportunities for multifamily portfolios, but participation is rarely as simple as submitting an application.
States control rollout timing, eligibility standards, contractor requirements, and documentation processes — and in markets like California, funding demand can quickly create operational bottlenecks.
MGO can help you:
- Evaluate incentives across your portfolio footprint
- Identify which state programs are live and how they operate
- Align projects with program eligibility requirements
- Navigate income qualification and reservation processes
- Coordinate contractors, documentation, rebate reservations, and timing before work begins
- Reduce execution risk in high-demand markets
Whether you are planning a near-term capital project or evaluating a broader energy-efficiency strategy, understanding how these programs work upfront can help you position your projects more effectively as state programs continue to evolve.
Contact us today to evaluate how HOMES and HEEHR incentives fit into your multifamily strategy or for support navigating program requirements in your state.