Case Study

Stone House Development & Liberty Home Comfort

Madison, Wisconsin | HEAR IRA Program | 76-Unit Heat Pump Upgrade

The partnership

Stone House Development, founded in 1996 by Helen Bradbury and Richard Arnesen, is a Madison-based full-service developer and property manager specializing in affordable and market-rate multifamily housing. Their portfolio spans 1,000+ affordable and 600 market-rate apartments across 20 Wisconsin properties, with multiple Energy Star certifications — including Wisconsin's first Energy Star-qualified multifamily high-rise.

When Stone House needed to upgrade aging HVAC systems across two affordable housing buildings, they selected Liberty Home Comfort to deliver a fully funded, turnkey heat pump retrofit under the federal HEAR IRA program.

2 BUildings

76 Units

~$1M Rebates

April 2026 Completion

The Challenge

Stone House's two affordable housing buildings had aging AC systems nearing end-of-life. Replacing 76 units of conventional AC

equipment out of pocket would have represented a significant capital expenditure — $3,000–$5,000+ per unit, totaling

$228,000–$380,000 or more. Meanwhile, furnaces were carrying 100% of the heating load every winter, accelerating wear and shortening their useful life.

the LIberty Solution

Liberty Home Comfort delivered a complete hybrid heat pump retrofit — fully funded through the HEAR IRA program administered by Focus On Energy at Zero cost to Stone House

  • Focus on Energy — at zero cost to Stone House.

  • Swapped 76 aging AC systems with brand-new Carrier heat pump systems (indoor coils + outdoor compressors)

  • Existing ductwork retained — same footprint, no structural changes to the buildings

  • Full furnace condition assessment on every unit — life expectancy report provided to Stone House

  • Smart thermostats installed with adjustable economical balance point (heat pump / furnace split)

  • Wiring upgrades completed where required to support new equipment

  • Complete application, documentation, and portal submission to Focus on Energy handled by Liberty

~$1,000,000 in total funded rebates delivered to the property — zero out-of-pocket cost to Stone House

Furnace lifespan extended — backup-only duty means dramatically less wear, fewer cycles, longer life

76 units upgraded from aging AC to Carrier hybrid heat pump systems with primary heating capability

New depreciable asset basis — appraised HVAC systems create tax deductions under MACRS (27.5-year or accelerated)