source:
  type: regulation
  id: hud-4000-1-programs-and-products-weatherization
  authority: HUD Handbook 4000.1 — Programs and Products - Weatherization (08/02/2018)
  description: "HUD Handbook 4000.1 section \"Programs and Products - Weatherization\". Gap-fill (verbatim,\
    \ title-diff). \n"
obligations:
- id: hud-4000-1-programs-and-products-weatherization-full
  canonical_id: hud-4000-1-programs-and-products-weatherization-full
  section: HUD Handbook 4000.1
  description: "Programs and Products - Weatherization: l. Weatherization (08/02/2018) \nThe weatherization\
    \ product permits the Borrower to finance the cost of eligible energyrelated weatherization improvements,\
    \ in conjunction with a purchase or refinance. \n(A) Eligible Programs and Transaction Types \nWeatherization\
    \ improvements may be financed in conjunc…"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - hud
  - 4000-1
  - curated
  primary_source:
    tier: 1
    authority: HUD Handbook 4000.1 — Programs and Products - Weatherization (08/02/2018)
    source_class: hud-handbook-4000-1
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: "l. Weatherization (08/02/2018) \nThe weatherization product permits the Borrower\
      \ to finance the cost of eligible energyrelated weatherization improvements, in conjunction with\
      \ a purchase or refinance. \n(A) Eligible Programs and Transaction Types \nWeatherization improvements\
      \ may be financed in conjunction with the following: \n• Section 203(b) \no purchase transaction\
      \ \no no cash-out refinance transaction \n• Energy Efficient Mortgages (EEM) \nFor financing of\
      \ weatherization under the 203(k) Rehabilitation Mortgage Insurance \nProgram, refer to 203(k) Rehabilitation\
      \ Mortgage Insurance Program. \n(B) Eligible Property Types \nWeatherization improvements may be\
      \ used on the following property types: \n• existing Properties (one- to four-units) \n• condominiums\
      \ (one unit) \n• Manufactured Housing (single unit) \n(C) Eligible Weatherization Items \nEligible\
      \ energy-related weatherization items include the following measures: \n• air sealing (including\
      \ weather-stripping doors, caulking window and plumbing \npenetrations) \n• insulation (attic, floors,\
      \ walls, basement) \n• duct sealing and insulation \n• smart thermostats and equipment controls\
      \ \n• windows and doors \n• low flow water fixtures \n• carbon monoxide monitors and other combustion\
      \ appliance safety measures \n(D) Maximum Dollar Amount \nThe maximum allowable cost of energy-related\
      \ weatherization items that can be \nfinanced is: \n• $2,000 (not to exceed actual cost) without\
      \ a separate value determination; \n• $3,500 (not to exceed actual cost) if supported by a value\
      \ determination made \nby an FHA Roster Appraiser; or \n• no limit (not to exceed actual cost) if:\
      \ \n\n \no supported by a value determination made by an FHA Roster Appraiser; \no a separate on-site\
      \ inspection is made by an ICC RCI or CI. \n(E) Required Documentation \nThe Mortgagee must document\
      \ the cost of work including the weatherization \nmaterials and labor. \n(F) Maximum Mortgage Amount\
      \ Calculation \nWhen determining the Adjusted Value, the dollar limit of the energy-related \nweatherization\
      \ items may be added to both the sales price and the Property Value. \n(G) Weatherization Combined\
      \ with Energy Efficient Mortgage \nFor existing Properties, energy-related weatherization items\
      \ may be combined with \nthe EEM. \n(H) Cash-Out \nThe Borrower may not receive cash back from the\
      \ mortgage transaction. If an excess \nexists, funds must be applied to the principal Mortgage balance.\
      \ \n(I) Escrows \nThe Mortgagee must establish an escrow account for the remaining costs of the\
      \ energy \nimprovements if the installation of weatherization items is not complete by the time\
      \ of \nclosing for all Mortgages on existing Properties, except 203(k). The Mortgagee must \nestablish\
      \ an escrow account for the remaining cost of the energy improvements in \naccordance with the Repair\
      \ Completion Escrow Requirements. \nIf the costs of the energy improvements and weatherization items\
      \ are part of a 203(k) \nRehabilitation Mortgage, then the escrowed amounts of the energy improvements\
      \ and \nweatherization items must be included in the rehabilitation escrow account. \n(J) Form HUD-92300,\
      \ Mortgagee’s Assurance of Completion \nWhen funds to complete weatherization improvements are escrowed,\
      \ the Mortgagee \nmust execute form HUD-92300, Mortgagee’s Assurance of Completion, to indicate\
      \ that \nthe escrow for weatherization improvements has been established. \n\n \nii. Completion\
      \ Requirements for Weatherization Measures \n(A) Time of Completion \nInstallation of weatherization\
      \ improvements must be completed within: \n• 30 Days of the mortgage Disbursement; or \n• 90 Days\
      \ of the mortgage Disbursement if the improvements are part of an \nenergy package for an EEM. \n\
      The Mortgagee must apply the remaining weatherization escrow funds to a prepayment \nof the mortgage\
      \ principal if the work is not completed within the required time frames. \nAny funds remaining\
      \ in the escrow account at the end of the improvement period must \nbe applied to pay down the mortgage\
      \ principal. \n(B) Escrow Closeout Certification \nAfter the repair or rehabilitation escrow account\
      \ is closed, the Mortgagee must complete \nthe Escrow Closeout Certification screen in FHAC within\
      \ 30 Days after the escrow \naccount is closed. \n(C) Inspection \nThe Mortgagee or their agent\
      \ must inspect the weatherization items or obtain evidence \nfrom a local authority that the system\
      \ was installed in accordance with local"
    drafter_attestation: Verbatim section from snapshot 8c03836f77f317e1; boundary human-curated + substring-verified
      (2026-07-23).
  judgment: false
