Program Overview
The Multifamily Energy Retrofit Loan (MERL) Program provides low-interest loans to existing multifamily affordable housing facilities for energy efficiency improvements. The MERL program aims to lower energy costs of multifamily housing facilities as well as improve comfort of the facility and reduce the energy intensity of the facility.
Some examples of eligible measures that may be funded under the MERL program include air sealing, insulation, windows, and efficient heating and cooling systems. All measures must be recommended via a qualifying energy audit and must be life cycle cost effective.
The interest rate for 2026 is fixed at 2 percent, 2.055% APR*.
*APR based on a $800,000 loan, 2% interest rate, 15-year term, and $3,142 in closing costs.
The MERL Interest Form and one-on-one meeting with DEQ program staff must be completed before moving forward with an energy audit and application.
Multifamily Energy Retrofit Loan Program Contacts
Energy Resource Professional
Meranda Bass
Mailing Address
P.O. Box 200901,
Helena, MT 59620-0901
Program Documents and Additional Information
- Complete MERL Program Interest Form.
- Complete One-on-One Meeting with DEQ Program Staff.
- Complete Qualified Energy Audit.
- Complete the MERL Program Application Form.
- Program Staff Complete Technical Review of Application Documents.
- Financial Services Contractor Completes Financial Reviews.
- Sign and Execute Final Loan Documents and Contract.
- Borrower Submits Project Milestones and Cost Documentation for Reimbursement.
- DEQ Reviews Reimbursement Requests and Releases Funds. Repeat as needed.
- Site Visit: Program Staff may conduct site visit to verify project installation.
The MERL Interest Form and one-on-one meeting with DEQ program staff must be completed before moving forward with an energy audit and application.
- MERL Interest Form (.docx)
- MERL Application (.docx)
- MERL Checklist of Required Documents (.docx)
The current terms for the program are listed below. Please note that availability of loan funds, loan terms, and closing costs are subject to change without notice. Actual closing costs are set during the application review and will be disclosed to the applicant with a loan commitment statement.
- No application fee
- 2026 interest rate: 2 percent, fixed for the term of the loan, 2.055% APR*
- Minimum loan amount: $100,000
- Maximum loan amount: $1,000,000
- Maximum loan term: 15 years or the useful life of the measures, whichever comes first
- $0 down payment; no early-payment penalty
- Closing costs include origination fee of $3,000; and other fees of approximately $200.
*APR based on a $800,000 loan, 2% interest rate, 15-year term, and $3,142 in closing costs.
- A business, public entity, non-profit, or individual that owns or operates an affordable multifamily housing facility.
- Multifamily means a property with four or more units that are intended for residential use. The units may be attached, detached, semidetached, or row houses.
- The facility must be designated as, or the occupants must be recipients of at least one of the following:
- Section 8
- Public Housing
- Low-Income Housing Tax Credit (LIHTC)
- HOME Investment Partnerships Program
- 50% or more occupants participate in the Low-Income Home Energy Assistance Program
- 50% or more occupants participate in the Weatherization Assistance Program
- 50% or more occupants receive SNAP, TANF, or SSI benefits
- Other programs may qualify upon review