Low Income Weatherization Assistance Act of 1981

Low-Income Weatherization Assistance Act of 1981- Amends the Energy Conservation in Existing Buildings Act of 1976 to require a State application for weatherization assistance to contain a State plan which shall include: (1) a description of the State grantee; (2) an analysis of the area to be served; (3) administrative arrangements; (4) the methods for selecting dwellings to be weatherized; (5) priority assistance for the elderly and severely handicapped low-income individuals; (6) information services with respect to the weatherization assistance program; (7) labor policies; (8) plans for the weatherization of rental properties; (9) procedures for keeping financial records; (10) plans for the treatment of Indian tribes; and (11) procedures for dealing with urban and rural areas. Prohibits the payment of funds to States which have not fulfilled their plans for the preceding fiscal year.

Limits the average expenditure per dwelling unit assisted in a State during any year to $1,600.

Authorizes appropriations for fiscal years 1982, 1983, and 1984.

Directs the Secretary of Energy to establish eligibility, and to allocate funds, for weatherization assistance in accordance with standards established in the Home Energy Assistance Act of 1980.