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What is the IQEF?

The DCSEU's Income Qualified Efficiency Fund (IQEF) is designed to support lighting and electrical HVAC projects that improve buildings, neighborhoods, and whole communities through energy efficiency as well as direct contracting support. If you own or operate a multifamily property, shelter, or clinic that serves low- to moderate-income District residents, or you are a contractor working on a project at one of these properties, the DCSEU wants to hear from you.

More information on IQEF in FY 2027 will be announced soon.

The back of a women's head with a red hardhat that reads "S.A.F.E." on it as she enters a door.

Eligibility

To benefit from the IQEF, applicants must be a property management organization or owner willing to work with a DCSEU-approved contractor.

Eligible upgrades:

  • HVAC upgrades, including heat pumps and heat pump water heaters, chillers. HVAC upgrades to heat pump technology that require electrification can be considered.
  • Lighting controls, fixtures, and systems

  • Advanced thermostats

  • Variable Frequency Drives (VFDs)

  • Sealing or insulation

  • ENERGY STAR certified appliances such as: refrigerators, dishwashers, heat pump dryers, and clothes washers
     

Additionally, one of the following is required for qualifying multifamily buildings, clinics, and shelters:

  • The building must feature restrictions or other covenants requiring that at least 50% of all units are occupied by households with incomes less than or equal to 80% of the Area Median Income (AMI)
  • The building owner must demonstrate that rent levels in at least 50% of all units are affordable to households with incomes less than or equal to 80% of the AMI
  • Buildings operating as clinics must be on this list of federally approved clinics in the District
A well-lit white and gray hallway of a healthcare clinic with LED fixtures.

1. Income Guidelines for FY 2027*
(October 1, 2026 - September 30, 2027)

Income Qualified Efficiency Fund Income Table

Household Size

Maximum Annual Income

1

$93,050

2

$106,350

3

$119,650

4

$132,900

5

$146,200

6

$159,500

7

$172,800

8

$186,100

2. Rent Level Guidelines for FY 2027*
(October 1, 2026 - September 30, 2027)

Income Qualified Efficiency Fund Maximum Rent Table

Bedrooms

Maximum Rent

Efficiency

$2,170

1 br

$2,480

2 br

$2,780

3 br

$3,400

4 br

$4,020

*Household income amounts listed in this table are effective as of July 2026 and are subject to change. Please visit the Department of Housing and Community Development (DHCD) website for the most up-to-date numbers. Buildings meeting the above income amounts will remain eligible for assistance even if DHCD's income amount guidelines decrease during FY 2027.

Selection Criteria

Projects that achieve more energy savings with fewer dollars spent will receive preference. Savings will be calculated based on the price per MWh or MMBtu of energy saved.

Projects that have more matching funds secured towards the total cost of the upgrades will receive preference.

Projects submitted by contractors that are registered Certified Business Enterprises / (CBEs) / Small Business Enterprises (SBEs) will be given preference. All contractors must be under contract with the DCSEU to qualify for funding.

Customers and contractors who submit their project applications on or before January 16, 2026, will receive preference.

Projects that impact the greatest number of low-income District residents will receive preference.

Project applications must be fully completed and signed by both the contractor and property owner. All measures listed in the data intake form must match what is listed in the application.

Impact Stories & Resources

Hear how owners and managers of affordable multifamily buildings, clinics, and shelters serving DC residents have been able to upgrade and save, unpacking this opportunity with our program resources:

“

Hear from a Property Owner/Manager

We've been able to do things in this building that we would have never been able to do. We have an environment that's working for the patients and for the staff. It's just tremendous.

- Michael Skaist

Administrator, Capitol City Rehabilitation & Health Care Center

Find a Contractor

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