This project explored the use of minisplit ductless heat pumps in combination with small through-wall transfer fans to provide space conditioning in small single-story homes including manufactured homes and homes built by Habitat for Humanity. The objectives were to reduce space conditioning energy consumption by 50% compared to the 2009 International Energy Conservation Code while maintaining home affordability and thermal comfort. The strategy to achieve this goal also included a highly efficient thermal envelope to reduce space conditioning loads.