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The State Bond Commission has voted to put millions of dollars towards establishing a revolving fund to finance energy-efficient multifamily renovations.

The planned $18 million Housing Environmental Improvement Revolving Loan and Grant Fund will be run out of the Connecticut Department of Energy and Environmental Protection, Gov. Ned Lamont’s office said.

It will provide loans and grants for projects like more efficient heating and cooling equipment and building envelope upgrades that produce energy savings.

The program was authorized by the General Assembly over the summer.

“One of the great things about energy efficient upgrades is that they help reduce costs and increase reliability for all ratepayers – not just the person installing an energy efficient upgrade – by reducing wasted energy across the electric grid. With this funding, we’re also removing barriers that prevent people from being able to install energy efficient upgrades. Everyone should be able to realize the savings that can come from installing energy efficient upgrades in the home,” Lamont said in a statement.

When the program begins, $12 million from this initial $18 million allocation will be used to provide loans for developers to install energy upgrades and retrofits in existing multifamily affordable housing, including but not limited to more efficient heating and cooling equipment and building envelope upgrades.

The remaining $6 million will go toward removing barriers that prevent people in lower-income, single family homes from making their homes more energy efficient, including removing asbestos, knob-and-tube wiring, mold and moisture. These barriers would, if not removed, disqualify homes from state and federal weatherization and energy upgrade programs.