Green Neighborhoods Act of 2020
This bill requires the Department of Housing and Urban Development (HUD) to establish annual energy efficiency participation incentives to encourage participants in HUD programs to achieve substantial improvements in energy efficiency.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8021 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 8021
To encourage energy efficiency, conservation, and development of
renewable energy sources for housing, and to create sustainable
communities.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 11, 2020
Mr. Perlmutter (for himself and Mr. Casten of Illinois) introduced the
following bill; which was referred to the Committee on Financial
Services, and in addition to the Committee on Education and Labor, for
a period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To encourage energy efficiency, conservation, and development of
renewable energy sources for housing, and to create sustainable
communities.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Green
Neighborhoods Act of 2020''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Implementation of energy efficiency participation incentives
for HUD programs.
Sec. 3. Basic HUD energy efficiency standards and standards for
additional credit.
Sec. 4. Enhanced energy efficiency underwriting.
Sec. 5. Energy-efficient certifications for manufactured housing with
mortgages.
Sec. 6. Making it green.
Sec. 7. Including sustainable development and transportation strategies
in comprehensive housing affordability
strategies.
Sec. 8. Grant program to increase sustainable low-income community
development capacity.
Sec. 9. Benchmarking.
Sec. 10. Workforce development.
Sec. 11. Ensuring availability of homeowners insurance for homes not
connected to electricity grid.
Sec. 12. Definitions.
SEC. 2. IMPLEMENTATION OF ENERGY EFFICIENCY PARTICIPATION INCENTIVES
FOR HUD PROGRAMS.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Housing and Urban Development
shall issue such regulations as may be necessary to establish annual
energy efficiency participation incentives consistent with this Act to
encourage participants in programs administered by the Secretary,
including recipients under programs for which HUD assistance is
provided, to achieve substantial improvements in energy efficiency.
(b) Requirement for Appropriation of Funds.--The requirement under
subsection (a) for the Secretary to provide annual energy efficiency
participation incentives pursuant to the provisions of this Act shall
be subject to the annual appropriation of necessary funds.
SEC. 3. BASIC HUD ENERGY EFFICIENCY STANDARDS AND STANDARDS FOR
ADDITIONAL CREDIT.
(a) Basic HUD Standard.--
(1) Residential structures.--A residential single-family or
multifamily structure shall be considered to comply with the
energy efficiency standards under this subsection if--
(A) the structure complies with the applicable
provisions of the American Society of Heating,
Refrigerating, and Air-Conditioning Engineers Standard
90.1-2016, as such standard or successor standard is in
effect for purposes of this section pursuant to
subsection (c);
(B) the structure complies with the applicable
provisions of the 2018 International Energy
Conservation Code, as such standard or successor
standard is in effect for purposes of this section
pursuant to subsection (c);
(C) in the case only of an existing structure,
where determined cost effective, the structure has
undergone rehabilitation or improvements, completed
after the date of the enactment of this Act, and the
energy consumption for the structure has been reduced
by at least 20 percent from the previous level of
consumption, as determined in accordance with energy
audits performed both before and after any
rehabilitation or improvements undertaken to reduce
such consumption; or
(D) the structure complies with the applicable
provisions of such other energy efficiency
requirements, standards, checklists, or ratings systems
as the Secretary may adopt and apply by regulation, as
may be necessary, for purposes of this section for
specific types of residential single-family or
multifamily structures or otherwise, except that the
Secretary shall make a determination regarding whether
to adopt and apply any such requirements, standards,
checklists, or rating system for purposes of this
section not later than the expiration of the 180-day
period beginning upon the date of receipt of any
written request, made in such form as the Secretary
shall provide, for such adoption and application.
In addition to compliance with any of subparagraphs (A) through
(D), the Secretary shall by regulation require, for any newly
constructed residential single-family or multifamily structure
to be considered to comply with the energy efficiency standards
under this subsection, that the structure have appropriate
electrical outlets with the facility and capacity to recharge a
standard electric passenger vehicle, including an electric
hybrid vehicle, where such vehicle would normally be parked.
(2) Nonresidential structures.--For purposes of this
section, the Secretary shall identify and adopt by regulation,
as may be necessary, energy efficiency requirements, standards,
checklists, or rating systems applicable to nonresidential
structures that are constructed or rehabilitated with HUD
assistance. A nonresidential structure shall be considered to
comply with the energy efficiency standards under this
subsection if the structure complies with the applicable
provisions of any such energy efficiency requirements,
standards, checklist, or rating systems identified and adopted
by the Secretary pursuant to this paragraph, as such standards
are in effect for purposes of this section pursuant to
subsection (c).
(3) Effect.--Nothing in this subsection may be construed to
require any structure to comply with any standard established
or adopted pursuant to this subsection, or identified in this
subsection, or to provide any benefit or credit under any
Federal program for any structure that complies with any such
standard, except to the extent that--
(A) any provision of law other than this subsection
provides a benefit or credit under a Federal program
for compliance with a standard established or adopted
pursuant to this subsection, or identified in this
subsection; or
(B) the Secretary specifically provides pursuant to
subsection (c) for the applicability of such standard.
(b) Enhanced Energy Efficiency Standards for Purposes of Providing
Additional Credit Under Certain Federally Assisted Housing Programs.--
(1) Purpose and effect.--
(A) Purpose.--The purpose of this subsection is to
establish energy efficiency and conservation standards
and green building standards that--
(i) provide for greater energy efficiency
and conservation in structures than is required
for compliance with the energy efficiency
standards under subsection (a) and then in
effect;
(ii) provide for green and sustainable
building standards not required by such
standards; and
(iii) can be used in connection with
Federal housing, housing finance, and
development programs to provide incentives for
greater energy efficiency and conservation and
for green and sustainable building methods,
elements, practices, and materials.
(B) Effect.--Nothing in this subsection may be
construed to require any structure to comply with any
standard established pursuant to this subsection or to
provide any benefit or credit under any Federal program
for any structure, except to the extent that any
provision of law other than this subsection provides a
benefit or credit under a Federal program for
compliance with a standard established pursuant to this
subsection.
(2) Compliance.--A residential or nonresidential structure
shall be considered to comply with the enhanced energy
efficiency and conservation standards or the green building
standards under this subsection, to the extent that such
structure is verified by a third party as compliant with, or
certified to, the applicable provisions of the standards under
paragraph (3) or (4), respectively (as such standards are in
effect for purposes of this section, pursuant to paragraph
(7)), in a manner that is not required for compliance with the
energy efficiency standards under subsection (a) then in effect
and subject to the Secretary's determination of which standards
are applicable to which structures.
(3) Energy efficiency and conservation standards.--The
energy efficiency and conservation standards under this
paragraph are as follows:
(A) Residential structures.--With respect to
residential structures:
(i) New construction.--For new
construction, the Energy Star for Homes
certification or Energy Star for Multifamily
New Construction certification standards
established by the Environmental Protection
Agency, as such standards are in effect for
purposes of this subsection pursuant to
paragraph (7);
(ii) Existing structures.--For existing
structures, a reduction in energy consumption
from the previous level of consumption for the
structure, as determined in accordance with
energy audits performed both before and after
any rehabilitation or improvements undertaken
to reduce such consumption by at least 30
percent or achievement of ENERGY STAR
certification.
(B) Nonresidential structures.--With respect to
nonresidential structures, such energy efficiency and
conservation requirements, standards, checklists, or
rating systems for nonresidential structures as the
Secretary shall identify and adopt by regulation, as
may be necessary, for purposes of this paragraph.
(4) Green building standards.--The green building standards
under this paragraph are the most recent adopted versions of
the following:
(A) The national Green Communities criteria
checklist for residential construction that provides
criteria for the design, development, and operation of
affordable housing, as such checklist or successor
checklist is in effect for purposes of this section
pursuant to paragraph (7).
(B) The LEED for New Construction rating system,
the LEED for Homes rating system, the LEED for Core and
Shell rating system, as applicable, as such systems or
successor systems are in effect for purposes of this
section pursuant to paragraph (7).
(C) The Green Globes assessment and rating system
of the Green Buildings Initiative.
(D) For manufactured housing, energy star rating
with respect to fixtures, appliances, and equipment in
such housing, as such standard or successor standard is
in effect for purposes of this section pursuant to
paragraph (7).
(E) The National Green Building Standard.
(F) Any other proven requirements, standards,
checklists, or rating systems for green building or
sustainability as the Secretary may identify and adopt
by regulation, as may be necessary for purposes of this
paragraph, except that the Secretary shall make a
determination regarding whether to adopt and apply any
such requirements, standards, checklist, or rating
system for purposes of this section not later than the
expiration of the 180-day period beginning upon date of
receipt of any written request, made in such form as
the Secretary shall provide, for such adoption and
application.
(5) Green building.--For purposes of this subsection, the
term ``green building'' means, with respect to standards for
structures, standards to require use of sustainable design
principles to reduce the use of nonrenewable resources,
minimize the impact of development on the environment, and to
improve indoor air quality.
(6) Energy audits.--The Secretary shall establish standards
and requirements for energy audits for purposes of paragraph
(3)(A)(ii).
(7) Applicability and updating of standards.--
(A) Applicability.--Except as provided in
subparagraph (B), the requirements, standards,
checklists, and rating systems referred to in this
subsection that are in effect for purposes of this
subsection are such requirements, standards,
checklists, and systems are as in existence upon the
date of the enactment of this Act.
(B) Updating.--For purposes of this section, the
Secretary may adopt and apply by regulation, as may be
necessary, future amendments and supplements to, and
editions of, the requirements, standards, checklists,
and rating systems referred to in this subsection.
(c) Authority of Secretary To Apply Standards to Federally Assisted
Housing and Programs.--
(1) HUD housing and programs.--The Secretary of Housing and
Urban Development may, by regulation, provide for the
applicability of the energy efficiency standards under
subsection (a) or the enhanced energy efficiency and
conservation standards and green building standards under
subsection (b), or both, with respect to any covered federally
assisted housing described in paragraph (3)(A) or any HUD
assistance.
(2) Rural housing.--The Secretary of Agriculture may, by
regulation, provide for the applicability of the energy
efficiency standards under subsection (a) or the enhanced
energy efficiency and conservation standards and green building
standards under subsection (b), or both, with respect to any
covered federally assisted housing described in paragraph
(3)(B) or any assistance provided with respect to rural housing
by the Rural Housing Service of the Department of Agriculture.
(3) Covered federally assisted housing.--For purposes of
this subsection, the term ``covered federally assisted
housing'' means--
(A) any residential or nonresidential structure for
which any HUD assistance is provided; and
(B) any new construction of single-family housing
(other than manufactured homes) subject to mortgages
insured, guaranteed, or made by the Secretary of
Agriculture under title V of the Housing Act of 1949
(42 U.S.C. 1471 et seq.).
SEC. 4. ENHANCED ENERGY EFFICIENCY UNDERWRITING.
(a) Definitions.--In this section:
(1) Covered agency.--The term ``covered agency''--
(A) means--
(i) an executive agency, as that term is
defined in section 102 of title 31, United
States Code; and
(ii) any other agency of the Federal
Government; and
(B) includes each enterprise, as that term is
defined under section 1303 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992
(12 U.S.C. 4502).
(2) Covered loan.--The term ``covered loan'' means a loan
secured by a home that is issued, insured, purchased, or
securitized by a covered agency.
(3) Homeowner.--The term ``homeowner'' means the mortgagor
under a covered loan.
(4) Mortgagee.--The term ``mortgagee'' means--
(A) an original lender under a covered loan or the
holder of a covered loan at the time at which that
mortgage transaction is consummated;
(B) any affiliate, agent, subsidiary, successor, or
assignee of an original lender under a covered loan or
the holder of a covered loan at the time at which that
mortgage transaction is consummated;
(C) any servicer of a covered loan; and
(D) any subsequent purchaser, trustee, or
transferee of any covered loan issued by an original
lender.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(6) Servicer.--The term ``servicer'' means the person or
entity responsible for the servicing of a covered loan,
including the person or entity who makes or holds a covered
loan if that person or entity also services the covered loan.
(7) Servicing.--The term ``servicing'' has the meaning
given the term in section 6(i) of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2605(i)).
(b) Findings and Purposes.--
(1) Findings.--The Congress finds that--
(A) energy costs for homeowners are a significant
and increasing portion of their household budgets;
(B) household energy use can vary substantially
depending on the efficiency and characteristics of the
house;
(C) expected energy cost savings are important to
the value of the house;
(D) the current test for loan affordability used by
most covered agencies, commonly known as the ``debt-to-
income'' test, is inadequate because it does not take
into account the expected energy cost savings for the
homeowner of an energy efficient home; and
(E) another loan limitation, commonly known as the
``loan-to-value'' test, is tied to the appraisal, which
often does not adjust for efficiency features of
houses.
(2) Purposes.--The purposes of this section are to--
(A) improve the accuracy of mortgage underwriting
by Federal mortgage agencies by ensuring that energy
cost savings are included in the underwriting process
as described below, and thus to reduce the amount of
energy consumed by homes and to facilitate the creation
of energy efficiency retrofit and construction jobs;
(B) require a covered agency to include the
expected energy cost savings of a homeowner as a
regular expense in the tests, such as the debt-to-
income test, used to determine the ability of the loan
applicant to afford the cost of homeownership for all
loan programs; and
(C) require a covered agency to include the value
home buyers place on the energy efficiency of a house
in tests used to compare the mortgage amount to home
value, taking precautions to avoid double-counting and
to support safe and sound lending.
(c) Enhanced Energy Efficiency Underwriting Criteria.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall, in consultation
with the advisory group established in subsection (f)(2),
develop and issue guidelines for a covered agency to implement
enhanced loan eligibility requirements, for use when testing
the ability of a loan applicant to repay a covered loan, that
account for the expected energy cost savings for a loan
applicant at a subject property, in the manner set forth in
paragraphs (2) and (3).
(2) Requirements to account for energy cost savings.--
(A) In general.--The enhanced loan eligibility
requirements under paragraph (1) shall require that,
for all covered loans for which an energy efficiency
report is voluntarily provided to the mortgagee by the
mortgagor, the covered agency and the mortgagee shall
take into consideration the estimated energy cost
savings expected for the owner of the subject property
in determining whether the loan applicant has
sufficient income to service the mortgage debt plus
other regular expenses.
(B) Expenses as offsets.--To the extent that a
covered agency uses a test, such as a debt-to-income
test, that includes certain regular expenses, such as
hazard insurance and property taxes, the expected
energy cost savings shall be included as an offset to
these expenses.
(C) Assessed energy costs.--Energy costs to be
assessed include the cost of electricity, natural gas,
oil, and any other fuel regularly used to supply energy
to the subject property.
(3) Determination of estimated energy cost savings.--
(A) In general.--The guidelines to be issued under
paragraph (1) shall include instructions for the
covered agency to calculate estimated energy cost
savings using--
(i) the energy efficiency report;
(ii) an estimate of baseline average energy
costs; and
(iii) additional sources of information as
determined by the Secretary.
(B) Report requirements.--For the purposes of
subparagraph (A), an energy efficiency report shall--
(i) estimate the expected energy cost
savings specific to the subject property, based
on specific information about the property;
(ii) be prepared in accordance with the
guidelines to be issued under paragraph (1);
and
(iii) be prepared--
(I) in accordance with the
Residential Energy Service Network's
Home Energy Rating System (commonly
known as ``HERS'') by an individual
certified by the Residential Energy
Service Network, unless the Secretary
finds that the use of HERS does not
further the purposes of this section;
or
(II) by other methods approved by
the Secretary, in consultation with the
Secretary of Energy and the advisory
group established in subsection (f)(2),
for use under this section, which shall
include a quality assurance procedure
approved by the Secretary, in
consultation with the Secretary of
Energy.
(C) Use by appraiser.--If an energy efficiency
report is used under paragraph (2), the energy
efficiency report shall be provided to the appraiser to
estimate the energy efficiency of the subject property
and for potential adjustments for energy efficiency.
(4) Required disclosure to consumer for a home with an
energy efficiency report.--If an energy efficiency report is
used under paragraph (2), the guidelines to be issued under
paragraph (1) shall require the mortgagee to--
(A) inform the loan applicant of the expected
energy costs as estimated in the energy efficiency
report, in a manner and at a time as prescribed by the
Secretary, and if practicable, in the documents
delivered at the time of loan application; and
(B) include the energy efficiency report in the
documentation for the loan provided to the borrower.
(5) Required disclosure to consumer for a home without an
energy efficiency report.--If an energy efficiency report is
not used under paragraph (2), the guidelines to be issued under
paragraph (1) shall require the mortgagee to inform the loan
applicant in a manner and at a time as prescribed by the
Secretary, and if practicable, in the documents delivered at
the time of loan application of--
(A) typical energy cost savings that would be
possible from a cost-effective energy upgrade of a home
of the size and in the region of the subject property;
(B) the impact the typical energy cost savings
would have on monthly ownership costs of a typical
home;
(C) the impact on the size of a mortgage that could
be obtained if the typical energy cost savings were
reflected in an energy efficiency report; and
(D) resources for improving the energy efficiency
of a home.
(6) Pricing of loans.--
(A) In general.--A covered agency may price covered
loans originated under the enhanced loan eligibility
requirements required under this section in accordance
with the estimated risk of the loans.
(B) Imposition of certain material costs,
impediments, or penalties.--In the absence of a
publicly disclosed analysis that demonstrates
significant additional default risk or prepayment risk
associated with the loans, a covered agency shall not
impose material costs, impediments, or penalties on
covered loans merely because the loan uses an energy
efficiency report or the enhanced loan eligibility
requirements required under this section.
(7) Limitations.--
(A) In general.--A covered agency may price covered
loans originated under the enhanced loan eligibility
requirements required under this section in accordance
with the estimated risk of those loans.
(B) Prohibited actions.--A covered agency shall
not--
(i) modify existing underwriting criteria
or adopt new underwriting criteria that
intentionally negate or reduce the impact of
the requirements or resulting benefits that are
set forth or otherwise derived from the
enhanced loan eligibility requirements required
under this subsection; or
(ii) impose greater buy back requirements,
credit overlays, or insurance requirements,
including private mortgage insurance, on
covered loans merely because the loan uses an
energy efficiency report or the enhanced loan
eligibility requirements required under this
subsection.
(8) Applicability and implementation date.--Not later than
3 years after the date of enactment of this Act, and before
December 31, 2023, the enhanced loan eligibility requirements
required under this subsection shall be implemented by each
covered agency to--
(A) apply to any covered loan for the sale, or
refinancing of any loan for the sale, of any home;
(B) be available on any residential real property
(including individual units of condominiums and
cooperatives) that qualifies for a covered loan; and
(C) provide prospective mortgagees with sufficient
guidance and applicable tools to implement the required
underwriting methods.
(d) Enhanced Energy Efficiency Underwriting Valuation Guidelines.--
(1) In general.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall--
(A) in consultation with the Federal Financial
Institutions Examination Council and the advisory group
established in subsection (f)(2), develop and issue
guidelines for a covered agency to determine the
maximum permitted loan amount based on the value of the
property for all covered loans made on properties with
an energy efficiency report that meets the requirements
of subsection (c)(3)(B); and
(B) in consultation with the Secretary of Energy,
issue guidelines for a covered agency to determine the
estimated energy savings under paragraph (3) for
properties with an energy efficiency report.
(2) Requirements.--The enhanced energy efficiency
underwriting valuation guidelines required under paragraph (1)
shall include--
(A) a requirement that if an energy efficiency
report that meets the requirements of subsection
(c)(3)(B) is voluntarily provided to the mortgagee,
such report shall be used by the mortgagee or covered
agency to determine the estimated energy savings of the
subject property; and
(B) a requirement that the estimated energy savings
of the subject property be added to the appraised value
of the subject property by a mortgagee or covered
agency for the purpose of determining the loan-to-value
ratio of the subject property, unless the appraisal
includes the value of the overall energy efficiency of
the subject property, using methods to be established
under the guidelines issued under paragraph (1).
(3) Determination of estimated energy savings.--
(A) Amount of energy savings.--The amount of
estimated energy savings shall be determined by
calculating the difference between the estimated energy
costs for the average comparable houses, as determined
in guidelines to be issued under paragraph (1), and the
estimated energy costs for the subject property based
upon the energy efficiency report.
(B) Duration of energy savings.--The duration of
the estimated energy savings shall be based upon the
estimated life of the applicable equipment, consistent
with the rating system used to produce the energy
efficiency report.
(C) Present value of energy savings.--The present
value of the future savings shall be discounted using
the average interest rate on conventional 30-year
mortgages, in the manner directed by guidelines issued
under paragraph (1).
(4) Ensuring consideration of energy efficient features.--
Section 1110 of the Financial Institutions Reform, Recovery,
and Enforcement Act of 1989 (12 U.S.C. 3339) is amended--
(A) in paragraph (2), by striking ``and'' at the
end;
(B) in paragraph (3), by striking the period at the
end and inserting ``; and''; and
(C) by inserting after paragraph (3) the following:
``(4) that State certified and licensed appraisers have
timely access, whenever practicable, to information from the
property owner and the lender that may be relevant in
developing an opinion of value regarding the energy- and water-
saving improvements or features of a property, such as--
``(A) labels or ratings of buildings;
``(B) installed appliances, measures, systems or
technologies;
``(C) blueprints;
``(D) construction costs;
``(E) financial or other incentives regarding
energy- and water-efficient components and systems
installed in a property;
``(F) utility bills;
``(G) energy consumption and benchmarking data; and
``(H) third-party verifications or representations
of energy and water efficiency performance of a
property, observing all financial privacy requirements
adhered to by certified and licensed appraisers,
including section 501 of the Gramm-Leach-Bliley Act (15
U.S.C. 6801).
Unless a property owner consents to a lender, an appraiser, in
carrying out the requirements of paragraph (4), shall not have
access to the commercial or financial information of the owner
that is privileged or confidential.''.
(5) Transactions requiring state certified and competent
appraisers.--Section 1113 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3342) is
amended--
(A) in paragraph (1), by inserting before the
semicolon the following: ``, or any real property on
which the appraiser makes adjustments using an energy
efficiency report''; and
(B) in paragraph (2), by inserting after
``atypical'' the following: ``, or an appraisal on
which the appraiser makes adjustments using an energy
efficiency report.''.
(6) Appraiser competency requirement.--Mortgagee shall
require that the appraiser conducting an appraisal of any real
property for which an energy report is provided shall have the
requisite knowledge required to perform a professional quality
appraisal, as evidenced by professional certification approved
by the Secretary.
(7) Protections.--
(A) Authority to impose limitations.--The
guidelines to be issued under paragraph (1) shall
include such limitations and conditions as determined
by the Secretary to be necessary to protect against
meaningful under or over valuation of energy cost
savings or duplicative counting of energy efficiency
features or energy cost savings in the valuation of any
subject property that is used to determine a loan
amount.
(B) Additional authority.--At the end of the 7-year
period following the implementation of enhanced
eligibility and underwriting valuation requirements
under this section, the Secretary may modify or apply
additional exceptions to the approach described in
paragraph (2), where the Secretary finds that the
unadjusted appraisal will reflect an accurate market
value of the efficiency of the subject property or that
a modified approach will better reflect an accurate
market value.
(8) Applicability and implementation date.--Not later than
3 years after the date of enactment of this Act, and before
December 31, 2023, each covered agency shall implement the
guidelines required under this subsection, which shall--
(A) apply to any covered loan for the sale, or
refinancing of any loan for the sale, of any home; and
(B) be available on any residential real property,
including individual units of condominiums and
cooperatives, that qualifies for a covered loan.
(e) Monitoring.--Not later than 1 year after the date on which the
enhanced eligibility and underwriting valuation requirements are
implemented under this section, and every year thereafter, each covered
agency with relevant activity shall issue and make available to the
public a report that--
(1) enumerates the number of covered loans of the agency
for which there was an energy efficiency report, and that used
energy efficiency appraisal guidelines and enhanced loan
eligibility requirements;
(2) includes the default rates and rates of foreclosures
for each category of loans; and
(3) describes the risk premium, if any, that the agency has
priced into covered loans for which there was an energy
efficiency report.
(f) Rulemaking.--
(1) In general.--The Secretary shall prescribe regulations
to carry out this section, in consultation with the Secretary
of Energy and the advisory group established in paragraph (2),
which may contain such classifications, differentiations, or
other provisions, and may provide for such proper
implementation and appropriate treatment of different types of
transactions, as the Secretary determines are necessary or
proper to effectuate the purposes of this section, to prevent
circumvention or evasion thereof, or to facilitate compliance
therewith.
(2) Advisory group.--To assist in carrying out this
section, the Secretary shall establish an advisory group,
consisting of individuals representing the interests of--
(A) mortgage lenders;
(B) appraisers;
(C) energy raters and residential energy
consumption experts;
(D) energy efficiency organizations;
(E) real estate agents;
(F) home builders and remodelers;
(G) State energy officials; and
(H) others as determined by the Secretary.
(g) Additional Study.--
(1) In general.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall reconvene the
advisory group established in subsection (f)(2), in addition to
water and locational efficiency experts, to advise the
Secretary on the implementation of the enhanced energy
efficiency underwriting criteria established in subsections (c)
and (d).
(2) Recommendations.--
(A) In general.--The advisory group established in
subsection (f)(2) shall provide recommendations to the
Secretary on any revisions or additions to the enhanced
energy efficiency underwriting criteria deemed
necessary by the group, which may include alternate
methods to better account for home energy costs and
additional factors to account for substantial and
regular costs of homeownership such as location-based
transportation costs and water costs.
(B) Legislative recommendations.--The Secretary
shall forward any legislative recommendations from the
advisory group to Congress for consideration.
SEC. 5. ENERGY-EFFICIENT CERTIFICATIONS FOR MANUFACTURED HOUSING WITH
MORTGAGES.
Section 526 of the National Housing Act (12 U.S.C. 1735f-4(a)) is
amended--
(1) in subsection (a)--
(A) by striking ``, other than manufactured
homes,'' each place such term appears;
(B) by inserting after the period at the end the
following: ``The energy performance requirements
developed and established by the Secretary under this
section for manufactured homes shall require energy
star rating for wall fixtures, appliances, and
equipment in such housing.'';
(C) by inserting ``(1)'' after ``(a)''; and
(D) by adding at the end the following new
paragraphs:
``(2) The Secretary shall require, with respect to any
single- or multi-family residential housing subject to a
mortgage insured under this Act, that any approval or
certification of the housing for meeting any energy efficiency
or conservation criteria, standards, or requirements pursuant
to this title and any approval or certification required
pursuant to this title with respect to energy-conserving
improvements or any renewable energy sources, such as wind,
solar energy geothermal, or biomass, shall be conducted only by
an individual certified by a home energy rating system provider
who has been accredited to conduct such ratings by the Home
Energy Ratings System Council, the Residential Energy Services
Network, or such other appropriate national organization, as
the Secretary may provide, or by licensed professional
architect or engineer. If any organization makes a request to
the Secretary for approval to accredit individuals to conduct
energy efficiency or conservation ratings, the Secretary shall
review and approve or disapprove such request not later than
the expiration of the 6-month period beginning upon receipt of
such request.
``(3) The Secretary shall periodically examine the method
used to conduct inspections for compliance with the
requirements under this section, analyze various other
approaches for conducting such inspections, and review the
costs and benefits of the current method compared with other
methods.''; and
(2) in subsection (b), by striking ``, other than a
manufactured home,''.
SEC. 6. MAKING IT GREEN.
(a) Partnerships With Tree-Planting Organizations.--The Secretary
shall establish and provide incentives for developers of housing for
which any HUD financial assistance, as determined by the Secretary, is
provided for development, maintenance, operation, or other costs, to
enter into agreements and partnerships with tree-planting
organizations, nurseries, and landscapers to certify that trees,
shrubs, grasses, and other plants are planted in the proper manner, are
provided adequate maintenance, and survive for at least 3 years after
planting or are replaced. The financial assistance determined by the
Secretary as eligible under this section shall take into consideration
such factors as cost effectiveness and affordability.
(b) Making It Green Plan.--In the case of any new or substantially
rehabilitated housing for which HUD financial assistance, as determined
in accordance with subsection (a), is provided by the Secretary for the
development, construction, maintenance, rehabilitation, improvement,
operation, or costs of the housing, including financial assistance
provided through the Community Development Block Grant program under
title I of the Housing and Community Development Act of 1974 (42 U.S.C.
5301 et seq.), the Secretary shall require the development of a plan
that provides for--
(1) in the case of new construction and improvements,
siting of such housing and improvements in a manner that
provides for energy efficiency and conservation to the extent
feasible, taking into consideration location and project type;
(2) minimization of the effects of construction,
rehabilitation, or other development on the condition of
existing trees;
(3) selection and installation of indigenous trees, shrubs,
grasses, and other plants based upon applicable design
guidelines and standards of the International Society for
Arboriculture;
(4) post-planting care and maintenance of the landscaping
relating to or affected by the housing in accordance with best
management practices; and
(5) establishment of a goal for minimum greenspace or tree
canopy cover for the housing site for which such financial
assistance is provided, including guidelines and timetables
within which to achieve compliance with such minimum
requirements.
(c) Partnerships.--In carrying out this section, the Secretary is
encouraged to consult, as appropriate, with national organizations
dedicated to providing housing assistance and related services to low-
income families, such as the Alliance for Community Trees and its
affiliates, the American Nursery and Landscape Association, the
American Society of Landscape Architects, and the National Arbor Day
Foundation.
SEC. 7. INCLUDING SUSTAINABLE DEVELOPMENT AND TRANSPORTATION STRATEGIES
IN COMPREHENSIVE HOUSING AFFORDABILITY STRATEGIES.
Section 105(b) of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12705(b)) is amended--
(1) by striking ``and'' at the end of paragraph (19);
(2) by striking the period at the end of paragraph (20) and
inserting ``; and'';
(3) and by inserting after paragraph (20) the following new
paragraphs:
``(21) describe the jurisdiction's strategies to encourage
sustainable development for affordable housing, including
single-family and multifamily housing, as measured by--
``(A) greater energy efficiency and use of
renewable energy sources, including any strategies
regarding compliance with the energy efficiency
standards under section 3(a) of the Green Neighborhoods
Act of 2020 and with the enhanced energy efficiency and
conservation standards, and the green building
standards, under section 3(b) of such Act;
``(B) increased conservation, recycling, and reuse
of resources;
``(C) more effective use of existing
infrastructure;
``(D) use of building materials and methods that
are healthier for residents of the housing, including
use of building materials that are free of added known
carcinogens that are classified as Group 1 Known
Carcinogens by the International Agency for Research on
Cancer; and
``(E) such other criteria as the Secretary
determines, in consultation with the Secretary of
Energy, the Secretary of Agriculture, and the
Administrator of the Environmental Protection Agency,
are in accordance with the purposes of this paragraph;
and
``(22) describe the jurisdiction's efforts to coordinate
its housing strategy with its transportation planning
strategies to ensure to the extent practicable that residents
of affordable housing have access to public transportation.''.
SEC. 8. GRANT PROGRAM TO INCREASE SUSTAINABLE LOW-INCOME COMMUNITY
DEVELOPMENT CAPACITY.
(a) In General.--The Secretary may make grants to nonprofit
organizations to use for any of the following purposes:
(1) Training, educating, supporting, or advising an
eligible community development organization or qualified youth
service and conservation corps in improving energy efficiency,
resource conservation and reuse, design strategies to maximize
energy efficiency, installing or constructing renewable energy
improvements (such as wind, wave, solar, biomass, and
geothermal energy sources), and effective use of existing
infrastructure in affordable housing and economic development
activities in low-income communities, taking into consideration
energy efficiency standards under section 3(a) of this Act and
with the enhanced energy efficiency and conservation standards,
and the green building standards, under section 3(b) of this
Act.
(2) Providing loans, grants, or predevelopment assistance
to eligible community development organizations or qualified
youth service and conservation corps to carry out energy
efficiency improvements that comply with the energy efficiency
standards under section 3(a) of this Act, resource conservation
and reuse, and effective use of existing infrastructure in
affordable housing and economic development activities in low-
income communities. In providing assistance under this
paragraph, the Secretary shall give more preference to
activities based on the extent to which the activities will
result in compliance with the enhanced energy efficiency and
conservation standards, and the green building standards, under
section 3(b) of this Act.
(3) Such other purposes as the Secretary determines are in
accordance with the purposes of this subsection.
(b) Application Requirement.--To be eligible for a grant under this
section, a nonprofit organization shall prepare and submit to the
Secretary an application at such time, in such manner, and containing
such information as the Secretary may require.
(c) Award of Contracts.--Contracts for architectural or engineering
services funded with amounts from grants made under this section shall
be awarded in accordance with chapter 11 of title 40, United States
Code (relating to selection of architects and engineers).
(d) Matching Requirement.--A grant made under this section may not
exceed the amount that the nonprofit organization receiving the grant
certifies, to the Secretary, will be provided (in cash or in-kind) from
nongovernmental sources to carry out the purposes for which the grant
is made.
(e) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Nonprofit organization.--The term ``nonprofit
organization'' has the meaning given such term in section 104
of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12704).
(2) Eligible community development organization.--The term
``eligible community development organization'' means--
(A) a unit of general local government (as defined
in section 104 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12704));
(B) a community housing development organization
(as defined in section 104 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12704));
(C) an Indian tribe or tribally designated housing
entity (as such terms are defined in section 4 of the
Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4103)); or
(D) a public housing agency, as such term is
defined in section 3(b) of the United States Housing
Act of 1937 (42 U.S.C. 1437(b)).
(3) Low-income community.--The term ``low-income
community'' means a census tract in which 50 percent or more of
the households have an income which is less than 80 percent of
the greater of--
(A) the median gross income for such year for the
area in which such census tract is located; or
(B) the median gross income for such year for the
State in which such census tract is located.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section $20,000,000 for
each of fiscal years 2021 through 2025.
SEC. 9. BENCHMARKING.
(a) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(2) Hud-assisted property.--The term ``HUD-assisted
property'' means a property assisted by any of the following
programs:
(A) The program under section 202 of the Housing
Act of 1959 (12 U.S.C. 1701q) for supportive housing
for the elderly.
(B) The program under section 811 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C.
8013) for supportive housing for persons with
disabilities.
(C) Any program under section 8 of the United
States Housing Act of 1937 (42 U.S.C. 1437f) for rental
assistance for low-income families.
(D) Any program for mortgage insurance for single-
family housing under title II of the National Housing
Act (12 U.S.C. 1707 et seq.).
(E) The programs under section 223(a)(7), 223(f),
or 241(a) of the National Housing Act (12 U.S.C.
1715n(a), 1715n(f), 1715z-6(a)).
(3) Benchmarked hud-assisted property.--The term
``benchmarked HUD-assisted property'' means a HUD-assisted
property with respect to which energy and water benchmarking
data is required by a State or local authority to be reported
through the ENERGY STAR Portfolio Manager.
(4) Climate zone.--The term ``Climate Zone'' means a region
of the United States as defined by the Environmental Protection
Agency under the ENERGY STAR program or the Office of Energy
Efficiency and Renewable Energy of the Department of Energy.
(b) Benchmarking Report.--
(1) In general.--Not later than the expiration of the 1-
year period beginning on the date of the enactment of this Act,
the Secretary shall submit to the Committee on Financial
Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate, a report
that includes--
(A) an assessment of the current state of energy
and water use benchmarking in the multifamily property
sector;
(B) data identifying the number and square footage
of multifamily properties that are required by State or
local authorities to report benchmarking data, the
proportion that are HUD-assisted properties, and the
proportion of all HUD-assisted properties that are
subject to such requirements;
(C) data identifying multifamily properties that
participate in each pathway in the HUD Green Mortgage
Insurance Premium program, including the number and
square footage of participating properties and the
proportion of eligible properties participating;
(D) data identifying multifamily properties that
participate in the HUD Better Buildings Challenge,
including the number and square footage of
participating properties;
(E) estimates of the extent of HUD-assisted
properties that are not conducting energy and water
benchmarking;
(F) estimates of potential energy and Federal cost
savings if various levels of efficiency were
implemented in HUD-assisted properties;
(G) information identifying the typical costs of
multifamily benchmarking and resources available to
support multifamily owners and operators in
benchmarking; and
(H) information relevant to the impact of
multifamily benchmarking, including published research
studies.
(2) Public availability.--The Secretary shall make the
report publicly available on the website of HUD.
(c) Provision of Existing Benchmarking Data.--
(1) Policies.--Not later than the expiration of the 6-month
period beginning on the date of the enactment of this Act, the
Secretary shall issue such regulations as may be necessary to
ensure that owners of benchmarked HUD-assisted properties
provide to the Secretary-selected ENERGY STAR Portfolio Manager
data for the property. In developing such regulations, the
Secretary shall--
(A) provide for data to be released in a manner
that protects information that identifies particular
properties, but retains essential geographical and
building characteristics to enable aggregate analysis;
(B) require data sharing not less often than every
three years;
(C) identifies the minimum data to be shared; and
(D) develop mechanisms to streamline data requests
and sharing in collaboration with the Environmental
Protection Agency ENERGY STAR program.
(2) Analysis.--Not later than the expiration of the 2-year
period beginning on the date of the enactment of this Act and
annually thereafter, the Secretary shall conduct an analysis of
the data received under this subsection and shall make the
findings publicly available on the website of HUD.
(d) Energy Use Targets by Climate Zone.--
(1) In general.--Not later than the expiration of the 1-
year period beginning on the date of the enactment of this Act,
the Secretary shall--
(A) compile energy consumption and bill data from
multifamily properties that is provided to HUD in
connection with utility allowance determination and
capital needs assessment activities;
(B) analyze the data in order to better understand
energy consumption patterns and trends throughout the
portfolio of properties represented, including relevant
subcategory types of multifamily properties;
(C) using the data from subparagraphs (A) and (B),
develop energy intensity statistics for each climate
zone and multifamily subcategory; and
(D) using the data from subparagraphs (A) and (B),
develop energy intensity targets for each climate zone
and multifamily subcategory reflecting energy
efficiency performance of at least 25 percent below the
baseline and related to ENERGY STAR performance scores
for each respective climate zone and multifamily
subcategory.
(2) Public availability.--The Secretary shall make the
analysis and energy intensity targets publicly available on the
website of HUD.
(e) Multifamily Utility Benchmarking Toolkit.--The Secretary shall
maintain and update, from time to time, the Multifamily Utility
Benchmarking Toolkit.
(f) Stakeholder Engagement.--In carrying out this section, the
Secretary shall--
(1) engage with stakeholders regarding multifamily
sustainability, including providing education and opportunities
for robust stakeholder input; and
(2) conduct targeted outreach to representatives of public
housing agencies, housing and tenant advocates, multifamily
property owners and managers, energy efficiency organizations,
State and local governments, multifamily finance entities, and
other interested groups.
SEC. 10. WORKFORCE DEVELOPMENT.
Subtitle D of title I of the Workforce Innovation and Opportunity
Act (29 U.S.C. 3221 et seq.) is amended by adding at the end the
following:
``SEC. 173. GRANTS FOR REGISTERED APPRENTICESHIP PROGRAMS IN CERTAIN
INDUSTRIES.
``(a) In General.--The Secretary shall provide grants to workforce
development boards, labor organizations, nonprofit organizations, and
businesses for the purpose of establishing training and registered
apprenticeship programs with respect to the following industries:
``(1) Energy-efficient building, construction, and retrofit
industries.
``(2) Deconstruction and materials use industries.
``(3) Energy efficiency assessment industry serving
residential, commercial, or industrial sectors.
``(4) Manufacturers that produce sustainable processes and
materials.
``(5) Building maintenance and management.
``(b) Requirements.--The Secretary shall require a recipient of a
grant under this section, as a condition of receipt of such grant--
``(1) to advertise opportunities available as a result of
such grant--
``(A) on a publicly available website; and
``(B) to dislocated workers;
``(2) to coordinate such program with related efforts of--
``(A) local governments and subdivisions thereof;
and
``(B) labor, industry, and environmental advocacy
groups;
``(3) on an annual basis, to submit to the Secretary a
report with respect to the area served by the recipient on--
``(A) the availability of employment opportunities
in the relevant field;
``(B) the risk of an increase in unemployment in
such field; and
``(C) other employment trends in such field.
``(c) Eligible Use of Funds.--A recipient of a grant under this
section may use such funds to cover the costs associated with an
employee participating in a Registered Apprenticeship Program,
including wages of, or stipends for, employees for the duration of the
Registered Apprenticeship Program.
``(d) Report.--Not later than 1 year after the date of the
enactment of this Act, and annually thereafter, the Secretary shall
submit to Congress a report on the effects of grants issued under this
section, including a description of--
``(1) the number of individuals who are employed upon
completion of a registered apprenticeship program funded under
this section;
``(2) a description of the wages, benefits, and quality of
employment that such individuals receive upon completion of
such program;
``(3) a description of the demographics of individuals who
receive such employment; and
``(4) the retention rate of individuals who are employed
upon completion of a registered apprenticeship program funded
under this section.
``(e) Authorization.--There is authorized to be appropriated to
carry out this section $100,000,000 for each of fiscal years 2021
through 2025.''.
SEC. 11. ENSURING AVAILABILITY OF HOMEOWNERS INSURANCE FOR HOMES NOT
CONNECTED TO ELECTRICITY GRID.
(a) Congressional Intent.--The Congress intends that--
(1) consumers shall not be denied homeowners insurance for
a dwelling (as such term is defined in subsection (c)) based
solely on the fact that the dwelling is not connected to or
able to receive electricity service from any wholesale or
retail electric power provider;
(2) States should ensure that consumers are able to obtain
homeowners insurance for such dwellings;
(3) States should support insurers that develop voluntary
incentives to provide such insurance; and
(4) States may not prohibit insurers from offering a
homeowners insurance product specifically designed for such
dwellings.
(b) Insuring Homes and Related Property in Indian Areas.--
Notwithstanding any other provision of law, dwellings located in Indian
areas (as such term is defined in section 4 of the Native American
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103))
and constructed or maintained using assistance, loan guarantees, or
other authority under the Native American Housing Assistance and Self-
Determination Act of 1996 may be insured by any tribally owned self-
insurance risk pool approved by the Secretary of Housing and Urban
Development.
(c) Dwelling Defined.--For purposes of this section, the term
``dwelling'' means a residential structure that--
(1) consists of one to four dwelling units;
(2) is provided electricity from renewable energy sources;
and
(3) is not connected to any wholesale or retail electrical
power grid.
SEC. 12. DEFINITIONS.
For purposes of this Act, the following definitions shall apply:
(1) Green building standards.--The term ``green building
standards'' means standards to require use of sustainable
design principles to reduce the use of nonrenewable resources,
encourage energy-efficient construction and rehabilitation and
the use of renewable energy resources, minimize the impact of
development on the environment, and improve indoor air quality.
(2) HUD.--The term ``HUD'' means the Department of Housing
and Urban Development.
(3) HUD assistance.--The term ``HUD assistance'' means
financial assistance that is awarded, competitively or
noncompetitively, allocated by formula, or provided by HUD
through loan insurance or guarantee.
(4) Nonresidential structure.--The term ``nonresidential
structures'' means only nonresidential structures that are
appurtenant to single-family or multifamily housing residential
structures, or those that are funded by the Secretary of
Housing and Urban Development through the HUD Community
Development Block Grant program.
(5) Secretary.--The term ``Secretary'', unless otherwise
specified, means the Secretary of Housing and Urban
Development.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Financial Services, and in addition to the Committee on Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committee on Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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