Multifamily Housing Energy Efficiency Improvement Act of 2014 - Requires the Department of Housing and Urban Development (HUD) to analyze and report on the relationship between energy savings improvements to homes and buildings, utility and energy expenses, and mortgage performance. Directs HUD to make the results of the analysis publicly available.
Requires HUD and the Federal Housing Finance Agency to evaluate departmental procedures and policies to assess if they accurately reflect the energy expenses and benefits of energy savings improvements for homeowners and building owners.
Amends the National Housing Act to revise provisions concerning mortgage insurance by establishing a green refinancing program for multifamily housing projects to increase the amount of mortgage loans that may be insured to finance the cost of residential energy conservation measures.
Requires HUD to carry out a Multifamily Housing Energy Innovation Plan to make grants to establish or expand an energy savings plan that will result in at least a 20% reduction in the energy, water, or gas consumption of multifamily housing.
Authorizes HUD to waive during the next five years any requirement regarding the eligibility of multifamily properties for an existing risk-sharing agreement entered into under multifamily mortgage credit programs, if the waiver facilitates the adoption of energy or water conservation measures in the properties.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5004 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 5004
To improve the energy efficiency of multifamily housing in the United
States, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 26, 2014
Mr. Himes (for himself, Mr. Delaney, Mr. Welch, and Mr. Cartwright)
introduced the following bill; which was referred to the Committee on
Financial Services
_______________________________________________________________________
A BILL
To improve the energy efficiency of multifamily housing in the United
States, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Multifamily Housing Energy
Efficiency Improvement Act of 2014''.
SEC. 2. STUDY OF RELATIONSHIP BETWEEN ENERGY SAVINGS IMPROVEMENTS AND
MORTGAGE PERFORMANCE.
(a) Study.--Not later than 90 days after the date of the enactment
of this Act, the Secretary of Housing and Urban Development, in
coordination with the Director of the Federal Housing Finance Agency
and in consultation with the Secretary of Energy, shall commence a
study to analyze the relationship between energy savings improvements
to homes and buildings, utility and energy expenses, and mortgage
performance, which shall include an analysis of--
(1) the likely increase in value of homes or buildings from
energy savings improvements;
(2) the effect of energy savings improvements on mortgage
default rates; and
(3) the risks of financing energy savings improvements
through property assessments and the risks associated with
providing energy efficiency products with senior liens on
buildings or homes.
(b) Protection of Information.--In conducting the study required
under subsection (a), the Secretary shall ensure that data shared with
any third-party or published does not contain any personally
identifiable information.
(c) Publication.--Not later than one year after the date of the
enactment of this Act, the Secretary of Housing and Urban Development
shall--
(1) publish the results of the study required under
subsection (a) on the publicly available website of the
Department of Housing and Urban Development; and
(2) submit a report regarding the results of the study
required under subsection (a) to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate.
(d) Evaluation.--Not later than 12 months after the completion of
the study required by subsection (a), the Secretary and the Director of
the Federal Housing Finance Agency shall evaluate departmental
procedures and policies to assess if they accurately reflect the energy
expenses and benefits of energy savings improvements for homeowners and
building owners.
SEC. 3. IMPROVEMENTS TO EXISTING MULTIFAMILY HOUSING ENERGY EFFICIENCY
PROGRAMS.
(a) Green Refinancing.--Section 223 of the National Housing Act (12
U.S.C. 1715n) is amended by adding at the end the following new
subsection:
``(h) Green Refinancing.--The Secretary shall, by regulation,
establish a green refinancing program for multifamily housing projects
insured under subsection (f) under which any dollar amount limitations
which would otherwise apply with respect to a project may be increased
by up to 20 percent for the cost of residential energy conservation
measures for the project, but the Secretary shall only insure
residential energy conservation measures pursuant to this subsection if
the Secretary verifies that--
``(1) a third-party assessment procured by the lender or
borrower has been conducted of the project's physical needs,
including an energy audit and identification of cost-effective
opportunities for increasing energy and water efficiency and
achieving a reduction in energy and water costs, and such
assessment indicates that such energy conservation measures
will be cost-effective over the life of the conservation
measure; and
``(2) such energy conservation measures will be verified
and monitored over the life of the mortgage, using such method
as the Secretary determines appropriate.
For purposes of this subsection, the term `energy conservation measure'
has the meaning given such term in section 221(k)(3) (12 U.S.C.
1715l(k)(3)).''.
(b) Verification of Cost-Effectiveness of Residential Energy
Conservation Measures.--Subsection (k) of section 221 of the National
Housing Act (12 U.S.C. 1715l(k)) is amended--
(1) by striking ``and will be cost-effective over the life
of the measure'';
(2) by striking ``(k) With respect to any project'' and
inserting the following:
``(k) Financing of Solar Energy Systems and Residential Energy
Conservation Measures.--
``(1) Authority.--Subject to paragraph (2), with respect to
any project''; and
(3) by adding at the end the following new paragraphs:
``(2) Verification regarding residential energy
conservation measures.--The Secretary may increase the dollar
amount limitations pursuant to paragraph (1) with respect to a
project due to residential energy conservation measures for the
project only if the Secretary--
``(A) verifies that in the case of a mortgage
insured under this section financing new construction
of the project, such measures will be cost-effective
over the life of the measures;
``(B) in the case of a mortgage insured under this
section financing repair and rehabilitation of the
project, verifies that a third-party assessment
procured by the lender or borrower has been conducted
of the project's physical needs, including an energy
audit and identification of cost-effective
opportunities for increasing energy and water
efficiency and achieving a reduction in energy and
water costs, and such assessment indicates that the
energy conservation measures to be installed will be
cost-effective over the life of the measures; and
``(C) ensures that the project is provided
information that will enable the project to verify and
monitor the energy savings achieved by the energy
conservation measures on a voluntary basis.
``(3) Definition of energy conservation measure.--For
purposes of this subsection, the term `energy conservation
measure' means, with respect to a project, any measure that
will result in a reduction in energy, water, or gas consumption
for the project.''.
(c) Implementation.--
(1) Guidance.--The Secretary of Housing and Urban
Development shall issue guidance to implement the amendments
made by this section not later than the expiration of the 12-
month period beginning on the date of the enactment of this
Act.
(2) Annual report on energy efficiency improvements.--The
Secretary of Housing and Urban Development shall, on an annual
basis, make available on a publicly available website of the
Department a report describing the implementation of the
amendments made by this section and the programs for financing
residential energy conservation measures under sections 221(k)
and 223(h) of the National Housing Act (12 U.S.C. 1715l(k),
1715n(h)) as amended by such amendments.
SEC. 4. MULTIFAMILY HOUSING ENERGY EFFICIENCY INNOVATION.
(a) Multifamily Housing Energy Innovation Plan.--The Secretary of
Housing and Urban Development shall carry out a program to be known as
the Multifamily Housing Energy Innovation Plan to make grants to
eligible entities to establish or expand an energy savings plan that
uses innovative approaches to reduce energy, water, and/or gas
consumption in multifamily housing.
(b) Submission and Selection of Multifamily Housing Energy
Innovation Plans.--
(1) Application.--To be eligible to receive a grant under
this section, an eligible entity shall submit an application to
the Secretary at such time, in such manner, and containing such
information as the Secretary may require, which shall include--
(A) a description of the energy savings plan
established or expanded using amounts from a grant
under this section that includes goals of the plan, use
of grant funds, and the anticipated outcome of the
plan;
(B) the amount of grant funds needed for such plan
and the amount and sources of other funding, including
matching funds required under subsection (d)(1); and
(C) a description of how implementing such plan
will comply with the energy savings requirement under
subsection (c)(2).
(2) Selection.--The Secretary shall establish criteria for
selection of applications submitted under paragraph (1) to
receive grants under this section and shall select eligible
entities to receive grants based on such criteria. Such
criteria shall be based upon--
(A) the relevant experience and capacity of the
eligible entity to carry out the energy savings plan to
be assisted with grant amounts and to achieve the
stated goals of such plan;
(B) the extent to which such plan provides an
innovative approach to reducing energy consumption in
multifamily housing;
(C) the ability of such plan to be replicated by
others; and
(D) such other factors as the Secretary determines
to be appropriate.
(3) Priority.--In awarding grants under this section, the
Secretary shall give priority to applications based on--
(A) the extent of funding for the energy savings
plan secured by the eligible entity from private,
nonprofit, or government sources in addition to the
matching funds required under subsection (d)(1);
(B) the extent of the proposed benefit of the
energy savings plan to low-income families; and
(C) the extent to which the energy savings plan
would reduce budgetary expenses for the Department of
Housing and Urban Development.
(c) Use of Grant Funds.--
(1) Eligible energy savings plans.--Amounts from grants
under this section may be used only for energy savings plans
that--
(A) are financing demonstrations for multifamily
housing, including for financing through credit
enhancements, revolving loan funds, loan loss reserves,
interest rate subsidies, loan insurance, or other
financing methods approved by the Secretary;
(B) create green jobs, including in the fields of
construction, property management, and technical
analysis, that directly promote the adoption of energy
savings measures in multifamily housing, including
energy savings plans that create green jobs for low-
income families;
(C) acquire and analyze data on the costs,
benefits, challenges, and opportunities associated with
retrofitting multifamily housing for energy efficiency;
or
(D) research and implement a demonstration project
that--
(i) creates retrofit or repair strategies
that use readily available technologies to
reduce or increase the efficiency of energy,
water, and gas consumption that are not
typically used for multifamily housing;
(ii) addresses the split incentive problem,
including implementing changes to methods for
utility metering in multifamily housing;
(iii) creates a system for benchmarking,
tracking, and sharing energy consumption
statistics for multifamily housing; or
(iv) achieves another goal as approved by
the Secretary.
(2) Energy savings requirement.--Amounts from a grant under
this section may be used only to carry out an energy savings
plan described in paragraph (1) that will result in at least a
20-percent reduction in the energy, water, or gas consumption
of multifamily housing and a description of the methodology to
be used to compute the reduction in energy consumption.
(d) Other Requirements.--
(1) Matching funds.--An eligible entity that receives a
grant under this section shall contribute towards the energy
savings plan amounts from private, nonprofit, or government
sources that are not less than the amount of the grant.
(2) Duration.--Grants shall be awarded for a period not to
exceed 24 months.
(3) Eligible entity report.--Not later than 12 months after
the date on which the grant period of an eligible entity that
received a grant under this section ends, each such eligible
entity shall submit to the Secretary a report on the
performance of energy savings plans carried out pursuant to
this section that shall contain such information as the
Secretary shall require.
(e) Definitions.--In this section the following definitions shall
apply:
(1) Eligible entity.--The term ``eligible entity'' means a
partnership between 2 or more of the following entities:
(A) A State or unit of local government.
(B) A provider of utility services.
(C) A community housing development organization as
defined in section 104 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12704).
(D) A public housing agency as defined in section
3(b) of the United States Housing Act of 1937 (42
U.S.C. 1437a(b)).
(E) A non-profit or for-profit entity whose primary
business is management of multifamily housing.
(2) Energy savings plan.--The term ``energy savings plan''
means a program, project, or activity for energy savings or
water and gas efficiency in multifamily housing.
(3) Low-income families.--The term ``low-income families''
has the meaning given that term in section 3(b) of the United
States Housing Act of 1937 (42 U.S.C. 1437a(b)).
(4) Multifamily housing.--The term ``multifamily housing''
means a residence consisting of 5 or more dwelling units.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(6) Split incentive problem.--The term ``split incentive
problem'' means, with respect to multifamily housing, a
situation in which--
(A) the occupant of a dwelling unit in the housing
does not pay for energy, water, or gas consumption for
such unit and is not incentivized to implement an
energy savings measure; or
(B) the owner does not pay for energy, water, or
gas consumption for dwelling units in the housing and
is not incentivized to implement an energy savings
measure.
(7) State.--The term ``State'' means each of the several
States, the District of Columbia, and any territory or
possession of the United States.
(f) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary $25,000,000 for fiscal year 2015,
$20,000,000 for fiscal year 2016, $15,000,000 for fiscal year 2017, and
$10,000,000 for fiscal year 2018 to carry out this section.
SEC. 5. GREEN PRESERVATION EXPANSION.
During the 5-year period beginning on the date of the enactment of
this Act, the Secretary of Housing and Urban Development may waive any
statutory or regulatory requirement regarding the eligibility of
multifamily properties for an existing risk-sharing agreement entered
into under section 542 of the Housing and Community Development Act of
1992 (12 U.S.C. 1715z-22), but only if such waiver facilitates the
adoption of energy or water conservation measures in such properties.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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