The Montana Department of Environmental Quality has announced a new low-interest loan program aimed at reducing energy costs and improving efficiency in existing multifamily affordable housing across the state.
The Multifamily Energy Retrofit Loan program, known as MERL, will provide financing to owners of multifamily housing facilities seeking to make energy efficiency upgrades. The program is designed to lower utility costs, improve building performance, and increase comfort for residents while addressing a key challenge facing affordable housing providers.
Under the program, DEQ will offer loans ranging from $100,000 to $1 million at a fixed interest rate of 2 percent. There is no application fee. Eligible projects include improvements such as air sealing, insulation upgrades, window replacements, and the installation of more efficient heating and cooling systems.
DEQ officials said the program is intended to support long-term energy savings while strengthening the quality and durability of multifamily housing stock in Montana. Interested property owners can submit an interest form through the agency’s website to begin the application process.
The MERL program is funded through a $5.1 million grant awarded to DEQ by the U.S. Department of Energy. The funding was authorized under the federal Infrastructure Investment and Jobs Act.
State officials view the program as a tool to help housing providers manage rising energy costs while improving living conditions for tenants. The loan program will focus on retrofits in existing buildings, rather than new construction, to maximize efficiency gains in Montana’s current housing inventory.