1.Short title and table of
contents
(a)This Act may be cited
as the Energy Efficiency in Housing
Act of 2009
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
Sec. 4. Implementation of energy efficiency participation
incentives for HUD programs.
Sec. 5. Incentives for energy efficient mortgages and location
efficient mortgages.
Sec. 6. Mortgage incentives for energy efficient multifamily
housing.
Sec. 7. Energy efficiency and conservation demonstration
program for multifamily housing projects assisted with project-based rental
assistance.
Sec. 8. Additional credit for Fannie Mae and Freddie Mac
housing goals for energy efficient mortgages.
Sec. 9. Duty to serve underserved markets for energy efficient
and location efficient mortgages.
Sec. 10. Consideration of energy efficiency under FHA mortgage
insurance programs and Native American and Native Hawaiian loan guarantee
programs.
Sec. 11. Energy efficient mortgages education and outreach
campaign.
Sec. 12. Collection of information on energy efficient and
location efficient mortgages through Home Mortgage Disclosure Act.
Sec. 13. Energy efficiency certifications for housing with
mortgages insured by FHA.
Sec. 14. Assisted housing energy loan pilot
program.
Sec. 15. HOPE VI green developments requirement.
Sec. 16. Consideration of energy efficiency improvements in
appraisals.
Sec. 17. Additional requirements for the Housing Assistance
Council.
Sec. 18. Rural housing and economic development
assistance.
Sec. 19. Revolving fund for loans to States and Indian tribes
to carry out renewable energy sources activities.
Sec. 20. Competitive grant program to increase sustainable
low-income community development capacity.
Sec. 21. Insurance coverage for loans for financing of
renewable energy systems leased for residential use.
Sec. 22. Green banking centers.
Sec. 23. GAO reports on availability of affordable
mortgages.
Sec. 24. Public housing energy cost report.
2.
(a)The Congress finds
that—
(1)making the United States energy efficient
is essential for enhancing national security, fighting climate change, and
creating jobs;
(2)unchecked use of energy resources poses a
significant threat to the national security, economy, public health, and
welfare of the people of the United States, the well-being of other nations,
and the global environment;
(3)prompt, decisive
action is critical to encourage energy efficiency and conservation and the
development of renewable energy sources for housing, commercial structures, and
other buildings, and to create sustainable communities; and
(4)it is possible and desirable to reduce
energy consumption in the United States while employing—
(A)cost containment
measures;
(B)periodic review of
requirements;
(C)an aggressive
program for deploying advanced energy technology; and
(D)programs to assist
low- and middle-income energy consumers.
(b)The
purposes of this Act are—
(1)to encourage the use of energy efficiency
and conservation methods in Federal housing programs;
(2)to expand the use
of energy efficient mortgages;
(3)to provide for the
development and installation of renewable energy sources for housing,
commercial structures, and other buildings;
(4)to create
sustainable communities;
(5)to support the
creation of a stable green jobs
sector by increasing demand for
energy efficient products and professionals with expertise in green building
standards; and
(6)to achieve these
goals while preserving the development, benefits, and affordability of Federal
housing programs.
3.In this Act, the following definitions shall
apply:
(1)The term energy audit means an investment
grade energy audit conducted for purposes of paragraph (2)(B)(iii), in
accordance with such standards as the Secretary shall establish, after optional
consultation with any advisory committee established pursuant to section
7(c)(2) of this Act.
(2)Enhanced energy
efficiency standardsThe term enhanced energy efficiency
standards means any one of the following:
(A)Green building standards, as that term is defined in
paragraph (3).
(B)In the case of a residential single family or
multifamily structure, standards established by the Secretary, by regulation,
that—
(i)impose
requirements additional to, or more stringent than, minimum energy efficiency
standards, as that term is defined in paragraph (6);
(ii)in
the case of a newly constructed structure, are identical to the Energy Star
standards established by the Environmental Protection Agency, or any successor
thereto adopted by the Secretary by regulation;
(iii)in the case of
an existing structure, require 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, that exceeds the reduction
necessary for compliance with minimum energy efficiency standards.
(C)Nonresidential
structuresIn the case of a nonresidential structure, include
such energy efficiency and conservation requirements, standards, checklists, or
rating systems for nonresidential structures as the Secretary determines are
necessary.
(3)The term green building standards means
systems and standards for residential and nonresidential structures that are
established or adopted by the Secretary, by regulation, and that—
(A)require the use
of sustainable design principles to—
(i)reduce the use of
nonrenewable resources;
(ii)encourage energy
efficient construction and rehabilitation and the use of renewable energy
resources;
(iii)minimize the
impact of development on the environment;
(iv)improve indoor
air quality;
(v)maximize water
conservation; and
(vi)encourage the
selection of building materials that reduce adverse impacts on the
environment;
(B)impose
requirements additional to, or more stringent than, minimum energy efficiency
standards, as that term is defined in paragraph (6);
(C)include—
(i)the national Green
Communities criteria checklist for residential construction, which provides
criteria for the design, development, and operation of affordable housing, or
any successor thereto adopted by the Secretary by regulation;
(ii)the Leadership in Energy and Environmental
Design (LEED) certification for new construction, the LEED for Homes rating
system, the LEED for Core and Shell rating system, as applicable, or any
successors thereto adopted by the Secretary by regulation;
(iii)the Green Globes
assessment and rating system of the Green Building Initiative;
(iv)in the case of manufactured housing, the
Energy Star standards established by the Environmental Protection Agency with
respect to fixtures, appliances, and equipment in such housing, or any
successor thereto adopted by the Secretary by regulation;
(v)the National Green Building Standard,
only—
(I)if such standard
is ratified under the American National Standards Institute process;
(II)upon expiration of
the 180-day period beginning upon such ratification; and
(III)if, during such
180-day period, the Secretary does not reject the applicability of such
standard for purposes of this paragraph; and
(vi)any other requirement, standard, checklist,
or rating system for green building or sustainability that the
Secretary—
(I)determines is necessary for a specific type
of residential single family or multifamily structure; or
(II)may determine to adopt or apply not later
than 180 days after the date of receipt of any written request, made in such
form as the Secretary shall provide, for such adoption and application;
and
(D)may be waived by
the Secretary, if the Secretary determines that waiver of such regulations
would promote enhanced energy efficiency or conservation.
(4)The
term HUD means the Department of Housing and Urban
Development.
(5)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.
(6)Minimum energy
efficiency standards
(A)The term minimum energy efficiency standards
has the meaning given that term by regulations of the Secretary.
(B)Regulations for
residential structuresRegulations issued by the Secretary under
subparagraph (A) shall, in the case of a residential single family or
multifamily structure—
(i)require the structure to comply with the
applicable provisions of the American Society of Heating, Refrigerating, and
Air-Conditioning Engineers Standard 90.1–2007, or any successor thereto adopted
by the Secretary, by regulation;
(ii)require the structure to comply with the
applicable provisions of the 2009 International Energy Conservation Code, or
any successor thereto adopted by the Secretary, by regulation;
(iii)in the case of an existing
structure—
(I)where the Secretary determines such action
is cost effective, require—
- (aa)the structure to have undergone
rehabilitation or improvements that are completed after the date of enactment
of this Act; and
- (bb)the energy consumption for the structure to
have been reduced by not less than 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;
(II)if the structure
has 4 stories or more, require the structure to demonstrate a 20 percent
improvement in the proposed building performance rating when compared to a
baseline building performance rating resulting from a whole building project
simulation conducted in accordance with the Building Performance Rating Method
in Appendix G of American Society of Heating, Refrigerating, and
Air-Conditioning Engineers Standard 90.1–2004, or any successor thereto adopted
by the Secretary, by regulation; and
(III)if the
structure has fewer than 4 stories, require the structure to demonstrate, by
modeling based on the Home Energy Rating System Index of the Residential Energy
Services Network, a 20 percent improvement in the proposed building performance
rating; and
(iv)require the structure to comply with any
provisions of such other energy efficiency requirements, standards, checklists,
or ratings systems as the Secretary determines are necessary for a specific
type of residential single family or multifamily structure; and
(C)Regulations for
nonresidential structuresRegulations issued by the Secretary under
subparagraph (a) shall, in the case of a nonresidential structure that is
constructed or rehabilitated with HUD assistance—
(i)require the structure to be not less than
30 percent more energy efficient than required by local residential and
commercial building codes regarding energy efficiency; and
(ii)require the structure to comply with such
additional energy efficiency requirements, standards, checklists, or rating
systems as the Secretary determines are applicable to nonresidential
structures.
(7)Nonresidential
structuresThe 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 through the HUD Community Development Block Grant program established
under title I of the Housing and Community Development Act of 1974 (42 U.S.C.
5301 et seq.).
(8)The
term Secretary, unless otherwise specified, means the Secretary of
Housing and Urban Development.
4.Implementation of
energy efficiency participation incentives for HUD programsNot later than 180 days after the date of
enactment of this Act, the Secretary shall issue such regulations as may be
necessary to establish annual energy efficiency participation incentives 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.
5.Incentives for
energy efficient mortgages and location efficient mortgages
(a)The Secretary shall
establish budget-neutral incentives for encouraging lenders to make, and
homebuyers and homeowners to participate in, energy efficient mortgages and
location efficient mortgages.
(b)The incentives required under subsection
(a) may include—
(1)fee reductions;
(2)fee waivers;
(3)interest rate reductions; and
(4)adjustment of
mortgage qualifications.
(c)In establishing
the incentives required under subsection (a), the Secretary shall consider the
lower risk of default on energy efficient mortgages and location efficient
mortgages in comparison to mortgages that are not energy efficient or location
efficient.
(d)The
terms energy efficient mortgage and location efficient
mortgage have the same meaning as in section 1335(e) of the Federal
Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C.
4565(e)) (as added by section 8 of this Act).
6.Mortgage
incentives for energy efficient multifamily housing
(a)The Secretary shall
establish—
(1)incentives for increasing the energy
efficiency of multifamily housing that is subject to a mortgage to be insured
under title II of the National Housing Act (12 U.S.C. 1707 et seq.) so that
such housing meets minimum energy standards; and
(2)incentives to encourage compliance of such
housing with enhanced energy efficiency standards, to the extent that such
incentives are based on the impact that savings on utility costs have on the
operating costs of the housing, as determined by the Secretary.
(b)The incentives required under subsection
(a) may include, for any such multifamily housing that meets minimum energy
efficiency standards—
(1)providing a
discount on the chargeable premiums for the mortgage insurance for such housing
from the amount otherwise chargeable for such mortgage insurance;
(2)allowing mortgages to exceed the dollar
amount limits otherwise applicable under law to the extent such additional
amounts are used to finance improvements or measures designed to meet the
standards referred to in subsection (a); and
(3)reducing the amount
that the owner of such multifamily housing is required to contribute.
7.Energy
efficiency and conservation demonstration program for multifamily housing
projects assisted with project-based rental assistance
(a)
(1)For multifamily
housing projects for which project-based rental assistance is provided under a
covered multifamily assistance program, the Secretary shall, subject to the
availability of amounts provided in advance in appropriation Acts, carry out a
program to demonstrate the effectiveness of funding a portion of the costs of
meeting enhanced energy efficiency standards.
(2)At the discretion of
the Secretary, the demonstration program required under paragraph (1) may
include incentives for housing that is assisted with Indian housing block
grants provided pursuant to the Native American Housing Assistance and
Self-Determination Act of 1996 (25 U.S.C. 4101 et seq.), but only to the extent
that such inclusion does not violate such Act, regulations promulgated pursuant
to such Act, and the goal of such Act of tribal self-determination.
(b)The demonstration program under this
section shall be carried out in a manner that—
(1)protects the
financial interests of the Federal Government;
(2)reduces the
proportion of funds provided by the Federal Government and by owners and
residents of multifamily housing projects that are used for costs of utilities
for such projects;
(3)encourages energy
efficiency and conservation by owners and residents of multifamily housing
projects and installation of renewable energy improvements, such as
improvements providing for use of solar, wind, geothermal, or biomass energy
sources;
(4)creates incentives
for project owners to carry out such energy efficiency renovations and
improvements by allowing a portion of the savings in operating costs resulting
from such renovations and improvements to be retained by the project owner,
notwithstanding otherwise applicable limitations on dividends;
(5)allows project
owners and tenants to share the savings in operating costs resulting from such
renovations and improvements in accordance with an appropriate ratio;
(6)promotes the installation, in existing
residential buildings, of energy efficient and cost-effective improvements and
renewable energy improvements, such as improvements providing for use of solar,
wind, geothermal, or biomass energy sources;
(7)tests the efficacy
of a variety of energy efficiency measures for multifamily housing projects of
various sizes and in various geographic locations;
(8)tests methods for
addressing the various, and often competing, incentives that impede owners and
residents of multifamily housing projects from working together to achieve
energy efficiency or conservation; and
(9)creates a database
of energy efficiency and conservation, and renewable energy, techniques, energy
savings management practices, and energy efficiency and conservation financing
vehicles.
(c)In carrying out the demonstration program
under this section, the Secretary may take the following actions:
(1)Enter into agreements with the Building
America Program of the Department of Energy and other consensus committees
under which such programs, partnerships, or committees assume some or all of
the functions, obligations, and benefits of the Secretary with respect to
energy savings.
(2)Establish advisory committees to advise the
Secretary and any such third party partners on technological and other
developments in the area of energy efficiency and the creation of an energy
efficiency and conservation credit facility and other financing opportunities
that—
(A)include representatives of homebuilders,
realtors, architects, nonprofit housing organizations, environmental protection
organizations, renewable energy organizations, State housing finance agencies,
and advocacy organizations for low-income individuals, the elderly, and persons
with disabilities; and
(B)are not subject to the Federal Advisory
Committee Act (5 U.S.C. App.).
(3)Develop a
competitive process for the award of such additional assistance for multifamily
housing projects seeking to implement energy efficiency, renewable energy
sources, or conservation measures.
(4)Waive or modify any existing Federal
regulatory provision that would otherwise impair the implementation or
effectiveness of the demonstration program under this section, including
provisions relating to methods for rent adjustments, comparability standards,
maximum rent schedules, and utility allowances. Notwithstanding the preceding
provisions of this paragraph, the Secretary may not waive any statutory
requirement relating to fair housing, nondiscrimination, labor standards, or
the environment, except pursuant to existing authority to waive nonstatutory
environmental and other applicable requirements.
(d)During the 4-year period beginning 12
months after the date of enactment of this Act, the Secretary shall carry out
demonstration programs under this section with respect to not fewer than 50,000
dwelling units.
(e)
(1)
(A)In order to provide a
broad and representative profile for use in designing a program which can
become operational and effective nationwide, the Secretary shall carry out the
demonstration program under this section with respect to dwelling units located
in a wide variety of geographic areas and project types assisted by the various
covered multifamily assistance programs and using a variety of energy
efficiency and conservation and funding techniques to reflect differences in
climate, types of dwelling units, technical and scientific methodologies, and
financing options.
(B)The Secretary shall
ensure that the geographic areas included in the demonstration program under
this section include dwelling units on Indian lands (as that term is defined in
section 2601 of the Energy Policy Act of 1992 (25 U.S.C. 3501)), to the extent
that dwelling units on Indian land have the type of residential structures that
are the focus of the demonstration program.
(2)The Secretary shall provide priority for
selection for participation in the program under this section based on the
extent to which, as a result of assistance provided, the project will meet
minimum energy efficiency standards or enhanced energy efficiency
standards.
(f)Use of existing
partnershipsTo the extent
feasible, the Secretary shall—
(1)utilize the Partnership for Advancing
Technology in Housing of the Department of Housing and Urban Development to
assist in carrying out the requirements of this section and to provide
education and outreach regarding the demonstration program authorized under
this section; and
(2)consult with the Secretary of Energy, the
Administrator of the Environmental Protection Agency, and the Secretary of the
Army regarding utilizing the Building America Program of the Department of
Energy, the Energy Star Program, and the Army Corps of Engineers, respectively,
to determine the manner in which such programs might assist in carrying out the
goals of this section and providing education and outreach regarding the
demonstration program authorized under this section.
(g)
(1)Not later than 2 years
after the date of enactment of this Act, and for each year thereafter during
the term of the demonstration program, the Secretary shall submit to Congress a
report that describes and assesses the demonstration program under this
section.
(2)Not later than 6
months after the expiration of the 4-year period described in subsection (d),
the Secretary shall submit to Congress a final report assessing the
demonstration program that—
(A)assesses the
potential for expanding the demonstration program on a nationwide basis;
and
(B)includes
descriptions of—
(i)the
size of each multifamily housing project for which assistance was provided
under the program;
(ii)the
geographic location of each project assisted, by State and region;
(iii)the criteria
used to select the projects for which assistance is provided under the
program;
(iv)the
energy efficiency and conservation measures and financing sources used for each
project that is assisted under the program;
(v)the difference, before and during
participation in the demonstration program, in the amount of the monthly
assistance payments under the covered multifamily assistance program for each
project assisted under the program;
(vi)the
average length of the term of the assistance provided under the program for a
project;
(vii)the aggregate
amount of savings generated by the demonstration program and the amount of
savings expected to be generated by the program over time on a per-unit and
aggregate program basis;
(viii)the functions
performed in connection with the implementation of the demonstration program
that were transferred or contracted out to any third parties;
(ix)an
evaluation of the overall successes and failures of the demonstration program;
and
(x)recommendations
for any actions to be taken as a result of such successes and failures.
(3)Each
annual report pursuant to paragraph (1) and the final report pursuant to
paragraph (2) shall include—
(A)a description of
the status of each multifamily housing project selected for participation in
the demonstration program under this section; and
(B)findings from the
program and recommendations for any legislative actions.
(h)Covered
multifamily assistance programFor purposes of this section, the term
covered multifamily assistance program
means—
(1)the program under section 8 of the United
States Housing Act of 1937 (42 U.S.C. 1437f) for project-based rental
assistance;
(2)the program under
section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) for assistance for
supportive housing for the elderly;
(3)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; and
(4)the program for
assistance under the Native American Housing Assistance and Self-Determination
Act of 1996 (25 U.S.C. 4111).
(i)Authorization of
appropriationsThere is
authorized to be appropriated to carry out this section $50,000,000 for each
fiscal year in which the demonstration program under this section is carried
out.
(j)Not later than 180 days after the date of
enactment of this Act, the Secretary shall issue any regulations necessary to
carry out this section.
8.Additional credit
for Fannie Mae and Freddie Mac housing goals for energy efficient
mortgagesSection 1336(a) of
the Housing and Community Development Act of 1992 (12 U.S.C. 4566(a)) is
amended—
(1)in paragraph (2),
by striking paragraph (5)
and inserting paragraphs (5)
and (6)
; and
(2)by adding at the
end the following:
(6)Additional
energy efficiency credit
(A)In assigning credit
toward achievement under this section of the housing goals for mortgage
purchase activities of the enterprises, the Director shall assign—
(i)more than 125 percent credit, for purchases
that—
(I)comply with the
requirements of such goals; and
(II)support housing
that meets minimum energy efficiency standards, as that term is defined in
section 3 of the Energy Efficiency in Housing
Act of 2009; and
(ii)credit in addition to credit under clause
(i), for purchases that—
(I)comply with the
requirements of such goals; and
(II)support housing
that complies with enhanced energy efficiency standards, as that term is
defined in section 3 of such Act.
(B)Treatment of
additional creditThe availability of additional credit under
this paragraph shall not be used to increase any housing goal, subgoal, or
target established under this
subpart.
.
9.Duty to serve
underserved markets for energy efficient and location efficient
mortgagesSection 1335 of the
Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4565) is amended—
(1)in subsection
(a)(1), by adding at the end the following:
(D)Markets for
energy efficient and location efficient mortgages
(i)Except
as provided in clause (ii), the enterprise shall develop loan products and
flexible underwriting guidelines to facilitate a secondary market for energy
efficient and location efficient mortgages on housing for very low-, low-, and
moderate-income families, and for second and junior mortgages made for purposes
of energy efficiency or renewable energy improvements.
(ii)Notwithstanding any
other provision of this section, the Director may suspend the applicability of
the requirement under clause (i) with respect to an enterprise, for such period
as is necessary, if the Director determines that exigent circumstances exist
and such suspension is appropriate to ensure the safety and soundness of the
portfolio holdings of the
enterprise.
;
(2)by adding at the
end the following:
(e)For purposes of this section, the following
definitions shall apply:
(1)Energy efficient
mortgageThe term energy efficient mortgage
means
a mortgage loan under which the income of the borrower, for purposes of
qualification for such loan, is considered to be increased by—
(A)not less than $1
for each $1 of savings projected to be realized by the borrower as a result of
cost-effective energy saving design, construction, or improvements (including
use of renewable energy sources, such as solar, geothermal, biomass, and wind,
superinsulation, energy-saving windows, insulating glass and film, and radiant
barrier) for the home for which the loan is made; or
(B)a ratio of income
to savings determined by the Director.
(2)location
efficient mortgageThe term
location efficient mortgage
means a mortgage loan under
which—
(A)the income of the borrower, for purposes of
qualification for such loan, is considered to be increased by—
(i)not less than $1 for each $1 of savings
projected to be realized by the borrower because the location of the home for
which the loan is made will result in decreased transportation costs for the
household of the borrower; or
(ii)a ratio of
income to savings determined by the Director; or
(B)the sum of the
principal, interest, taxes, and insurance due under the mortgage loan is
decreased by—
(i)not less than $1
for each $1 of savings projected to be realized by the borrower because the
location of the home for which loan is made will result in decreased
transportation costs for the household of the borrower; or
(ii)a ratio of
principal, interest, taxes, and insurance due under the mortgage to savings
projected to be realized by the borrower determined by the
Director.
.
10.Consideration of
energy efficiency under FHA mortgage insurance programs and Native American and
Native Hawaiian loan guarantee programs
(a)
(1)Title V of the National Housing Act is
amended by adding after section 542 (12 U.S.C. 1735f–20) the following:
543.Consideration
of energy efficiency
(a)In establishing
underwriting standards for mortgages on single family housing that meets
minimum energy efficiency standards, as that term is defined in section 3 of
the Energy Efficiency in Housing Act of
2009, that are insured under this Act, the Secretary shall
consider the impact that savings on utility costs has on the income of the
mortgagor.
(b)It
is the sense of the Congress that, in carrying out this Act, the Secretary
should endeavor to insure mortgages on single family housing that meets minimum
energy efficiency standards, as that term is defined in section 3 of the
Energy Efficiency in Housing Act of
2009, such that at least 50,000 such mortgages are insured during
the period beginning on the date of enactment of such Act and ending on
December 31,
2012.
.
(2)Section 540(b)(2) of the National Housing Act (12 U.S.C.
1735f–18(b)(2)) is amended by adding at the end the following:
(C)With respect to each collection period that
commences after December 31, 2011—
(i)the total number of mortgages on single
family housing that meets minimum energy efficiency standards, as that term is
defined in section 3 of the Energy Efficiency
in Housing Act of 2009, that are insured by the Secretary during
the applicable collection period;
(ii)the number of defaults and foreclosures
occurring on such mortgages during such period;
(iii)the percentage of the total of such
mortgages insured during such period on which defaults and foreclosure
occurred; and
(iv)the rate for such period of defaults and
foreclosures on such mortgages compared to the overall rate for such period of
defaults and foreclosures on mortgages for single family housing insured under
this Act by the
Secretary.
.
(b)Indian housing
loan guarantees
(1)Section 184 of the Housing and Community
Development Act of 1992 (12 U.S.C. 1715z–13a) is amended—
(A)by redesignating
subsection (l) as subsection (m); and
(B)by inserting after
subsection (k) the following:
(l)Consideration of
energy efficiencyThe
Secretary shall establish a method to consider, in its underwriting standards
for loans for single family housing that meet minimum energy efficiency
standards, as that term is defined in section 3 of the
Energy Efficiency in Housing Act of
2009, that are guaranteed under this section, the impact that
savings on utility costs has on the portion of the income of the borrower that
is available to service the mortgage
debt.
.
(2)Section 540(b)(2) of
the National Housing Act (12 U.S.C. 1735f–18(b)(2)), as amended by subsection
(a)(2) of this section, is amended by adding at the end the following:
(D)With respect to each collection period that
commences after December 31, 2011—
(i)the total number of loans guaranteed under
section 184 of the Housing and Community Development Act of 1992 (12 U.S.C.
1715z–13a) for single family housing that meets enhanced energy efficiency
standards, as that term is defined in section 3 of the
Energy Efficiency in Housing Act of
2009, that are guaranteed by the Secretary during the applicable
collection period;
(ii)the number of defaults and foreclosures
that occur on such loans during such period;
(iii)the percentage of the total number of such
loans guaranteed during such period on which defaults and foreclosures
occurred; and
(iv)the rate for such period of defaults and
foreclosures on such loans compared to the overall rate for such period of
defaults and foreclosures on loans for single family housing guaranteed under
section 184 of such
Act.
.
(c)Native Hawaiian
housing loan guarantees
(1)Section 184A of the Housing and Community
Development Act of 1992 (12 U.S.C. 1715z–13b) is amended by adding at the end
the following:
(m)energy efficient
housing requirementThe
Secretary shall establish a method to consider, in its underwriting standards
for loans for single family housing that meets minimum energy efficiency
standards, as that term is defined in section 3 of the
Energy Efficiency in Housing Act of
2009, that are guaranteed under this section, the impact that
savings on utility costs have on the income of the
borrower.
.
(2)Section 540(b)(2) of
the National Housing Act (12 U.S.C. 1735f–18(b)(2)), as amended by the
preceding provisions of this section, is amended by adding at the end the
following:
(E)With respect to each collection period that
commences after December 31, 2011—
(i)the total number of loans guaranteed under
section 184A of the Housing and Community Development Act of 1992 (12 U.S.C.
1715z–13b) on single family housing that meets enhanced energy efficiency
standards, as that term is defined in section 3 of the
Energy Efficiency in Housing Act of
2009, that are guaranteed by the Secretary during the applicable
collection period;
(ii)the number of defaults and foreclosures
occurring on such loans during such period;
(iii)the percentage of the total of such loans
guaranteed during such period on which defaults and foreclosures occurred;
and
(iv)the rate for such period of defaults and
foreclosures on such loans compared to the overall rate for such period of
defaults and foreclosures on loans for single family housing guaranteed under
such section
184A.
.
11.Energy efficient
mortgages education and outreach campaignSection 513 of the Housing and Community
Development Act of 1992 (12 U.S.C. 1701z–16 note) is amended by adding at the
end the following:
(g)Education and
outreach campaign
(1)Development of
energy efficient mortgage outreach program
(A)The Secretary, in consultation and
coordination with the Secretary of Energy, the Secretary of Education, the
Secretary of Agriculture, and the Administrator of the Environmental Protection
Agency, shall establish a commission to develop and recommend model mortgage
products and underwriting guidelines that provide market-based incentives to
prospective home buyers, lenders, and sellers to incorporate energy efficiency
upgrades in new mortgage loan transactions.
(B)Not later than 24 months after the date of
enactment of this subsection, the Secretary shall submit to Congress a written
report on the results of work of the commission established pursuant to
subparagraph (A) and that identifies model mortgage products and underwriting
guidelines that may encourage energy efficiency.
(2)
(A)After submission of
the report under paragraph (1)(B), the Secretary, in consultation and
coordination with the Secretary of Energy, the Secretary of Education, and the
Administrator of the Environmental Protection Agency, shall carry out a public
awareness, education, and outreach campaign based on the findings of the
commission established pursuant to paragraph (1) to inform and educate
residential lenders and prospective borrowers regarding the availability,
benefits, advantages, and terms of—
(i)energy efficient mortgages made available
pursuant to this section;
(ii)energy efficient mortgages that meet the
requirements of section 1334A of this Act; and
(iii)other mortgages, including mortgages for
multifamily housing, that have energy improvement features.
(B)The Secretary may enter into a contract
with an appropriate entity to publicize and market such mortgages through
appropriate media.
(3)Renewable energy
home product expositionsIt
is the sense of Congress that the Secretary of Housing and Urban Development
should work with appropriate entities to organize and hold renewable energy
expositions that provide an opportunity for the public to view and learn about
renewable energy products for the home that are currently on the market.
(4)Authorization
of appropriationsThere is
authorized to be appropriated to the Secretary to carry out this subsection
$5,000,000 for each of fiscal years 2010 through
2013.
.
12.Collection of
information on energy efficient and location efficient mortgages through Home
Mortgage Disclosure Act
(a)Section 304(b)(1) of
the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803(b)(1)) is
amended—
(1)in paragraph (3),
by striking and
at the end;
(2)in
paragraph (4), by striking the period at the end and inserting a semicolon;
and
(3)by adding at the
end the following new paragraphs:
(5)the number and dollar amount of mortgage
loans for single family housing and for multifamily housing that are energy
efficient mortgages (as such term is defined in section 1334A of the Housing
and Community Development Act of 1992); and
(6)the number and dollar amount of mortgage
loans for single family housing and for multifamily housing that are location
efficient mortgages (as such term is defined in section 1334A of Housing and
Community Development Act of
1992).
.
(b)The
amendment made by subsection (a) shall apply with respect to the first calendar
year that begins after the expiration of the 30-day period beginning on the
date of enactment of this Act.
13.Energy
efficiency certifications for housing with mortgages insured by
FHASection 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 that 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 ratings for wall fixtures, appliances, and
equipment in such homes.
;
(C)by striking (a) To
and
inserting the following:
(a)
(1)To
;
and
(D)by adding at the
end the following:
(2)The Secretary shall require, with respect
to any single family or multifamily 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 that 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 a
licensed professional architect or engineer that has been accredited as a LEED
Accredited Professional by the Green Building Certification Institute. 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 6 months
after receipt of such request.
(3)Each
regional office of the Department of Housing and Urban Development shall
maintain a list of individuals certified by a home energy rating system
provider that has been accredited to conduct such ratings by the Home Energy
Ratings System Council, the Residential Energy Services Network, or such other
appropriate national organizations or professionals as the Secretary may
designate. Such list shall indicate that home energy rating system providers
accredited by the Residential Energy Services Network are preferred by the
Department of Housing and Urban Development.
(4)Periodic
Examination of MethodThe 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)—
(A)by striking
, other than a manufactured home,
; and
(B)by striking
(b) The
and inserting the following:
(b)The
.
14.Assisted housing
energy loan pilot program
(a)Not later than 12 months after the date of
enactment of this Act, the Secretary shall develop and implement a pilot
program to facilitate the financing of cost-effective capital improvements for
covered assisted housing projects to improve the energy efficiency and
conservation of such projects.
(b)The pilot program under this section shall involve not
less than 3 and not more than 5 lenders.
(c)The pilot program under this section shall
provide for a privately financed loan to be made for a covered assisted housing
project that—
(1)finances capital improvements for the
project that meet such requirements as the Secretary shall establish, and may
involve contracts with third parties to perform such capital improvements,
including the design of such improvements by licensed professional architects
or engineers;
(2)has a term to
maturity that is—
(A)not more than 20
years; and
(B)necessary to
realize cost savings sufficient to repay such loan;
(3)is
secured by a mortgage subordinate to the mortgage for the project that is
insured under title II of the National Housing Act; and
(4)provides for a
reduction in the remaining principal obligation under the loan based on the
actual cost savings realized from the capital improvements financed with the
loan.
(d)The Secretary shall establish underwriting requirements
for loans made under the pilot program under this section, which shall—
(1)require the cost
savings projected to be realized from the capital improvements financed with
the loan, during the term of the loan, to exceed the costs of repaying the
loan;
(2)allow the designer
or contractor involved in designing capital improvements to be financed with a
loan under the program to carry out such capital improvements; and
(3)include such
energy, audit, property, financial, ownership, and approval requirements as the
Secretary considers appropriate.
(e)The pilot program under this section shall provide that
the financial benefit from any reduction in the cost of utilities resulting
from capital improvements financed with a loan made under the program shall be
shared between the project owner and the tenants in accordance with an
appropriate ratio, as determined by the Secretary.
(f)Covered assisted
housing projectsFor purposes of this section, the term
covered assisted housing project
means a housing project
that—
(1)is financed by a
loan or mortgage that is—
(A)insured by the
Secretary under paragraph (3) or (4) of section 221(d) of the National Housing
Act (12 U.S.C. 1715l(d)), and bears interest at a rate determined under the
proviso of section 221(d)(5) of such Act; or
(B)insured or assisted
under section 236 of the National Housing Act (12 U.S.C. 1715z–1);
(2)at the time a loan
under this section is made, is provided project-based rental assistance under
section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) for 50
percent or more of the dwelling units in the project; and
(3)is not a housing
project owned or held by the Secretary, or subject to a mortgage held by the
Secretary.
15.HOPE VI green
developments requirement
(a)Section 24(e) of
the United States Housing Act of 1937 (42 U.S.C. 1437v(e)) is amended by adding
at the end the following:
(4)Green
developments requirement
(A)The Secretary may not make a grant under
this section to an applicant unless the proposed revitalization plan of the
applicant to be carried out with such grant amounts meets the following
requirements:
(i)All residential construction under the proposed plan
complies with—
(I)all mandatory
items of the national Green Communities criteria checklist for residential
construction and rehabilitation and such nonmandatory items of such checklist
as are necessary for a residential construction to receive—
- (aa)25
points, in the case of any proposed plan (or portion thereof) consisting of new
construction; and
- (bb)20
points, in the case of any proposed plan (or portion thereof) consisting of
rehabilitation; or
(II)a substantially
equivalent standard, as determined by the Secretary.
(ii)Nonresidential
constructionAll nonresidential construction under the proposed
plan complies with all minimum required levels of the green building rating
systems and levels identified by the Secretary pursuant to subparagraph (C), as
such systems and levels are in effect at the time of the application for the
grant.
(B)
(i)The Secretary shall verify, or provide for verification
sufficient to ensure, that each revitalization plan carried out with amounts
from a grant under this section complies with the requirements under
subparagraph (A).
(ii)In
providing for such verification, the Secretary shall establish procedures to
ensure such compliance with respect to each grantee, and shall submit a report
to Congress with respect to the compliance of each grantee—
(I)not later than 6
months after execution of the grant agreement under this section for the
grantee; and
(II)on completion of
the revitalization plan of the grantee.
(C)Identification of
green buildings rating systems and levels
(i)For purposes of this paragraph, the Secretary, in
consultation with the Secretary of Energy, shall identify rating systems and
levels for green buildings that the Secretary determines to be the most likely
to encourage a comprehensive and environmentally sound approach to ratings and
standards for green buildings.
(ii)In
identifying the green rating systems and levels under clause (i), the Secretary
shall take into consideration—
(I)the ability and
availability of assessors and auditors to independently verify the criteria and
measurement of metrics at the scale necessary to implement this
paragraph;
(II)the ability of the
applicable ratings system organizations to collect and reflect public
comment;
(III)the ability of
the standards to be developed and revised through a consensus-based
process;
(IV)an evaluation of the robustness of the
criteria for a high-performance green building, which shall give credit for
promoting—
- (aa)efficient and
sustainable use of water, energy, and other natural resources;
- (bb)use
of renewable energy sources;
- (cc)improved indoor and outdoor environmental
quality through enhanced indoor and outdoor air quality, thermal comfort,
acoustics, outdoor noise pollution, day lighting, pollutant source control,
sustainable landscaping, and use of building system controls and low- or
no-emission materials, including preference for materials with no added
carcinogens that are classified as Group 1 Known Carcinogens by the
International Agency for Research on Cancer; and
- (dd)such other
criteria as the Secretary determines to be appropriate; and
(V)national
recognition within the building industry.
(iii)At least once every 5 years, the Secretary shall
conduct a study to evaluate and compare available third party green building
rating systems and levels, taking into account the criteria listed in clause
(ii).
(iv)Within 90 days of the completion of each study required by
clause (iii), the Secretary shall review and update the rating systems and
levels, or identify alternative systems and levels for purposes of this
paragraph, taking into account the conclusions of such study.
(D)Applicability
and updating of standards
(i)Except
as provided in clause (ii), the national Green Communities criteria checklist
and green building rating systems and levels referred to in subparagraph (A)
that are in effect for purposes of this paragraph are such checklist systems
and levels as in existence on the date of enactment of the
Energy Efficiency in Housing Act of
2009.
(ii)The
Secretary may, by regulation, adopt and apply for purposes of this paragraph,
future amendments and supplements to, and editions of, the national Green
Communities criteria checklist, any standard or standards that the Secretary
has determined to be substantially equivalent to such checklist, and the green
building ratings systems and levels identified by the Secretary pursuant to
subparagraph
(C).
.
(b)Selection
criteria; graded componentSection 24(e)(2) of the United States
Housing Act of 1937 (42 U.S.C. 1437v(e)(2)) is amended—
(1)in subparagraph
(K), by striking and
at the end;
(2)by
redesignating subparagraph (L) as subparagraph (M); and
(3)by inserting after
subparagraph (K) the following:
(L)the extent to which the proposed
revitalization plan—
(i)in
the case of residential construction, complies with the nonmandatory items of
the national Green Communities criteria checklist identified in paragraph
(4)(A)(i), or any substantially equivalent standard or standards as determined
by the Secretary, but only to the extent such compliance exceeds the compliance
necessary to accumulate the number of points required under such paragraph;
and
(ii)in the case of
nonresidential construction, complies with the components of the green building
rating systems and levels identified by the Secretary pursuant to paragraph
(4)(C), but only to the extent such compliance exceeds the minimum level
required under such systems and levels;
and
.
16.Consideration of
energy efficiency improvements in appraisals
(a)Appraisals in
connection with federally related transactions
(1)Section 1110 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3339) is
amended—
(A)in paragraph (1),
by striking and
at the end;
(B)by redesignating
paragraph (2) as paragraph (3); and
(C)by inserting after
paragraph (1) the following:
(2)that such appraisals be performed in
accordance with appraisal standards that require, in determining the value of a
property, consideration of the ongoing utility savings and increased value from
the savings that result from—
(A)any renewable energy sources for the
property; or
(B)energy efficiency or energy conserving
improvements or features of the property;
and
.
(2)Revision of
appraisal standardsEach
Federal financial institution regulatory agency shall, not later than 6 months
after the date of enactment of this Act, revise its standards for the
performance of real estate appraisals in connection with federally related
transactions under the jurisdiction of the agency to comply with the
requirement under the amendments made by paragraph (1).
(b)Appraiser
certification and licensing requirementsSection 1116 of the Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3345) is
amended—
(1)in subsection (a),
by inserting before the period at the end the following: and meets the
requirements established pursuant to subsection (f) for qualifications
regarding consideration of any renewable energy sources for, or energy
efficiency or energy conserving improvements or features of, the
property
;
(2)in subsection (c),
by inserting before the period at the end the following: , which shall
include compliance with the requirements established pursuant to subsection (f)
regarding consideration of any renewable energy sources for, or energy
efficiency or energy conserving improvements or features of, the
property
;
(3)in subsection (e),
by striking The
and inserting Except as provided in
subsection (f), the
; and
(4)by adding at the
end the following:
(f)Requirements for
appraisers regarding energy efficiency featuresThe Appraisal Subcommittee shall establish
requirements for State certification of State certified real estate appraisers
and for State licensing of State licensed appraisers, to ensure that appraisers
consider and are qualified to consider, in determining the value of a property,
any renewable energy sources for, or energy efficiency or energy conserving
improvements or features of, the
property.
.
(c)Guidelines for
appraising photovoltaic and solar thermal measures and training of
appraisersSection 1122 of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 3351) is amended by adding at
the end the following:
(g)Guidelines for
appraising photovoltaic and solar thermal measures and training of
appraisersThe Appraisal
Subcommittee shall, in consultation with the Secretary of Housing and Urban
Development, the Federal National Mortgage Association, and the Federal Home
Loan Mortgage Corporation, establish specific guidelines for—
(1)appraising off-
and on-grid photovoltaic and solar thermal measures for compliance with the
appraisal standards prescribed pursuant to section 1110(2);
(2)requirements under
section 1116(f) for certification of State certified real estate appraisers and
for State licensing of State licensed appraisers, to ensure that appraisers
consider, and are qualified to consider, such photovoltaic and solar thermal
measures in determining the value of a property; and
(3)training of
appraisers to meet the requirements established pursuant to paragraph (2) of
this
subsection.
.
17.Additional
requirements for the Housing Assistance CouncilThe Secretary shall require the Housing
Assistance Council—
(1)to encourage each
organization that receives assistance from the Council with any amounts made
available from the Secretary to provide that any structure or building
developed or assisted under projects, programs, and activities funded with such
amounts complies with enhanced energy efficiency standards; and
(2)to establish
incentives to encourage each such organization to provide that any such
structure or building complies with enhanced energy efficiency
standards.
18.Rural housing
and economic development assistanceThe Secretary shall—
(1)encourage each tribe, agency, organization,
corporation, and other entity that receives any assistance from the Office of
Rural Housing and Economic Development of the Department of Housing and Urban
Development to provide that any structure or building developed or assisted
under activities funded with such amounts complies with minimum energy
efficiency standards; and
(2)establish
incentives to encourage each such tribe, agency, organization, corporation, and
other entity to provide that any such structure or building comply with
enhanced energy efficiency standards.
19.Revolving fund
for loans to States and Indian tribes to carry out renewable energy sources
activities
(a)There is established in the Treasury of the United States a
revolving fund, to be known as the Alternative Energy Sources State
Revolving Fund
.
(b)The
Fund shall be credited with—
(1)any amounts
appropriated to the Fund pursuant to subsection (g);
(2)any amounts of
principal and interest from loan repayments received by the Secretary pursuant
to subsection (d)(7); and
(3)any interest
earned on investments of amounts in the Fund pursuant to subsection (e).
(c)
(1)Subject to paragraph (2), on request by the Secretary,
the Secretary of the Treasury shall transfer from the Fund to the Secretary
such amounts as the Secretary determines are necessary to provide loans under
subsection (d)(1).
(2)Of the amounts in the Fund, not more than 5 percent
shall be available for each fiscal year to pay the administrative expenses of
the Department of Housing and Urban Development to carry out this
section.
(d)Loans to States
and Indian tribes
(1)The Secretary shall
use amounts in the Fund to provide loans to States and Indian tribes to provide
incentives to owners of single family and multifamily housing, commercial
properties, and public buildings to provide—
(A)renewable energy sources for such
structures, such as wind, wave, solar, biomass, or geothermal energy sources,
including incentives to companies and businesses to change their source of
energy to such renewable energy sources and for changing the sources of energy
for public buildings to such renewable energy sources;
(B)energy efficiency
and energy conserving improvements and features for such structures; or
(C)infrastructure
related to the delivery of electricity and hot water for structures lacking
such amenities.
(2)To be eligible to receive a loan under this
subsection, a State or Indian tribe, directly or through an appropriate State
or tribal agency, shall submit to the Secretary an application at such time, in
such manner, and containing such information as the Secretary may
require.
(3)The Secretary may
approve an application of a State or Indian tribe under paragraph (2) only if
the Secretary determines that the State or tribe will use the funds from the
loan under this subsection to carry out a program to provide incentives
described in paragraph (1) that—
(A)requires that any such renewable energy
sources, and energy efficiency and energy conserving improvements and features,
developed pursuant to assistance under the program result in compliance of the
structure so improved with minimum energy efficiency standards; and
(B)includes such compliance and audit
requirements as the Secretary determines are necessary to ensure that the
program is operated in a sound and effective manner.
(4)In making loans during each fiscal year,
the Secretary shall give preference to States and Indian tribes that have not
previously received a loan under this subsection.
(5)The aggregate outstanding principal amount from loans
under this subsection to any single State or Indian tribe may not exceed
$500,000,000.
(6)Each loan under this
subsection shall have a term to maturity of not more than 10 years and shall
bear interest at an annual rate, determined by the Secretary, that shall not
exceed the interest rate charged by the Federal Reserve Bank of New York to
commercial banks and other depository institutions for very short-term loans
under the primary credit program, as most recently published in the Federal
Reserve Statistical Release on selected interest rates (daily or weekly), and
commonly referred to as the H.15 release, preceding the date of a determination
for purposes of applying this paragraph.
(7)The Secretary shall
require full repayment of each loan made under this section.
(e)
(1)The Secretary of the Treasury shall invest such amounts
in the Fund that are not, in the judgment of the Secretary of the Treasury,
required to meet needs for current withdrawals.
(2)Obligations of
United StatesInvestments may be made only in interest-bearing
obligations of the United States.
(f)
(1)For each year
during the term of a loan made under subsection (d), the State or Indian tribe
that received the loan shall submit to the Secretary a report describing the
State or tribal alternative energy sources program for which the loan was made
and the activities conducted under the program using the loan funds during that
year.
(2)Not later than September 30 of each year that loans made
under subsection (d) are outstanding, the Secretary shall submit a report to
Congress describing the total amount of such loans provided under subsection
(d) to each eligible State and Indian tribe during the fiscal year ending on
such date, and an evaluation on effectiveness of the Fund.
(g)Authorization of
AppropriationsThere is authorized to be appropriated to the Fund
$5,000,000,000.
(h)In
this section, the following definitions shall apply:
(1)The term Indian
tribe
has the meaning given such term in section 4 of the Native
American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C.
4103).
(2)The
term State
means each of the several States, the Commonwealth of
Puerto Rico, the District of Columbia, the Commonwealth of the Northern Mariana
Islands, Guam, the Virgin Islands, American Samoa, the Trust Territories of the
Pacific, or any other possession of the United States.
20.Competitive
grant program to increase sustainable low-income community development
capacity
(a)In
this section:
(1)Eligible
community development organizationThe term eligible
community development organization means—
(A)a unit of general
local government, as that term is defined in section 104 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704));
(B)a community
housing development organization, as that term is 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 those terms are defined in section 4
of the Native American Housing Assistance and Self-Determination Act of 1996
(25 U.S.C. 4103)); and
(D)a public housing
agency, as that term is defined in section 3(b) of the United States Housing
Act of 1937 (42 U.S.C. 1437(b)).
(2)The term low-income community means a
census tract in which 50 percent or more of the households have an annual
income that is less than 80 percent of the greater of—
(A)the median gross
income for that year for the area in which the census tract is located;
or
(B)the median gross
income for that year for the State in which the census tract is located.
(3)The term nonprofit organization has the
same meaning as in section 104 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12704).
(b)The Secretary shall establish a competitive grant
program to make grants to nonprofit organizations to—
(1)carry out a
project described in subsection (c);
(2)train, educate,
support, or advise an eligible community development organization that carries
out a project described in subsection (c);
(3)provide planning
and design assistance to eligible community development organizations;
(4)make loans or
grants to eligible community development organizations; or
(5)carry out other
activities consistent with this section, as the Secretary determines
appropriate.
(c)The
projects described in this subsection are projects—
(1)that take into
consideration minimum energy efficiency standards, enhanced energy efficiency
standards, and green building standards; and
(2)that—
(A)improve the
energy efficiency of residential and nonresidential structures;
(B)promote resource
conservation and reuse;
(C)include design
strategies to maximize the energy efficiency of residential and nonresidential
structures;
(D)install or
construct renewable energy improvements for residential and nonresidential
structures, including wind, wave, solar, biomass, and geothermal energy
sources; or
(E)promote the
effective use of existing infrastructure in affordable housing and economic
development activities in low-income communities.
(d)In
making grants under this section, the Secretary shall give priority to
activities that will result in compliance with minimum energy efficiency
standards, enhanced energy efficiency standards, and green building
standards.
(e)A
nonprofit organization that desires a grant under this section shall submit to
the Secretary an application at such time, in such manner, and containing such
information as the Secretary may require.
(f)Any contract for architectural or engineering services
that is 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).
(g)
(1)The Federal share of the cost of a project under
this section may not exceed 50 percent.
(2)Form of
non-Federal shareThe non-Federal share of the cost of a project
under this section may be in cash or in-kind.
(h)Authorization
of appropriationsThere are authorized to be appropriated to the
Secretary such sums as may be necessary to carry out this section.
21.Insurance
coverage for loans for financing of renewable energy systems leased for
residential use
(a)The purposes of this section are—
(1)to encourage
residential use of renewable energy systems by minimizing upfront costs and
providing immediate utility cost savings to consumers through leasing of such
systems to homeowners;
(2)to reduce carbon
emissions and the use of nonrenewable resources;
(3)to encourage
energy efficient residential construction and rehabilitation;
(4)to encourage the
use of renewable resources by homeowners;
(5)to minimize the
impact of development on the environment;
(6)to reduce consumer
utility costs; and
(7)to encourage
private investment in the green economy.
(b)As
used in this section, the following definitions shall apply:
(1)Authorized
renewable energy lenderThe term authorized renewable
energy lender means a lender authorized by the Secretary to make a loan
under this section.
(2)Renewable energy
system leaseThe term
renewable system energy lease means an agreement between an
authorized renewable energy system owner and a homeowner for a term of not less
than 5 years, pursuant to which the homeowner—
(A)grants an easement to such renewable energy
system owner to install, maintain, use, and otherwise access the renewable
energy system; and
(B)agrees to—
(i)lease the use of such system from such
renewable energy system owner; or
(ii)purchase
electric power from such renewable energy system owner.
(3)Renewable energy
manufacturerThe term renewable energy manufacturer
means a manufacturer of renewable energy systems.
(4)Renewable
energy system ownerThe term renewable energy system
owner means a homebuilder, a manufacturer or installer of a renewable
energy system, or any other person, as determined by the Secretary.
(5)The term renewable energy system means a
system of energy derived from—
(A)a wind, solar
(including photovoltaic and solar thermal), biomass (including biodiesel), or
geothermal source; or
(B)hydrogen derived
from biomass or water using an energy source described in subparagraph
(A).
(c)
(1)The Secretary may,
upon application by an authorized renewable energy system owner, insure or make
a commitment to insure a loan made by an authorized renewable energy lender to
a renewable energy system owner to finance the acquisition of a renewable
energy system for lease to a homeowner for use at the residence of such
homeowner.
(2)The Secretary may prescribe such terms and conditions
for insurance under paragraph (1) as are consistent with the purposes of this
section.
(d)Limitation on
principal amount
(1)The principal amount of a loan insured
under this section shall not exceed the residual value of the renewable energy
system to be acquired with the loan.
(2)For purposes of this subsection—
(A)the residual value
of a renewable energy system is the fair market value of the future revenue
stream from the sale of the expected remaining electricity production from the
system, pursuant to the easement granted in accordance with subsection (e);
and
(B)the fair market
value of the future revenue stream for each year of the remaining life of the
renewable energy system shall be determined based on the net present value of
the power output production warranty for such renewable energy system provided
by the renewable energy manufacturer and the forecast of regional residential
electricity prices made by the Energy Information Administration of the
Department of Energy.
(e)The
Secretary may not insure a loan under this section unless the renewable energy
system owner certifies, in accordance with such requirements as the Secretary
shall establish, consistent with the purposes of this section, that the systems
financed will be leased only to homeowners that grant easements to install,
maintain, use, and otherwise access the system that include the right to sell
electricity produced during the life of the renewable energy system to a
wholesale or retail electrical power grid.
(f)To encourage the
use of renewable energy systems, the Secretary shall ensure that a discount
given to a homeowner by a renewable energy system owner or other investor or
prepayment of a renewable energy system lease by a renewable energy system
owner does not adversely affect the mortgage requirements of such
homeowner.
(g)The Secretary may not insure a loan under this section
unless the lender making the loan—
(1)is an institution
that—
(A)qualifies as a
green banking center under section 8(x) of the Federal Deposit Insurance Act
(12 U.S.C. 1818(x)) or section 206(x) of the Federal Credit Union Act (12
U.S.C. 1786(x)); or
(B)meets such other
requirements as the Secretary shall establish for participation of renewable
energy lenders in the program under this section; and
(2)meets such
qualifications as the Secretary shall establish for all lenders for
participation in the program under this section.
(h)
(1)The Secretary shall issue to a lender that is insured
under this section a certificate that serves as evidence of insurance coverage
under this section.
(2)The certificate
required under paragraph (1) shall set forth the fair market value of the
future revenue stream for each year of the remaining life of the renewable
energy system.
(3)The certificate required under paragraph (1) shall be
backed by the full faith and credit of the United States.
(i)Payment of
insurance claim
(1)The Secretary shall
provide for the filing of claims for insurance under this section and the
payment of such claims.
(2)A claim under paragraph
(1) may be paid only upon a default under the loan insured under this section
and the assignment, transfer, and delivery to the Secretary of—
(A)all rights and interests arising under the
loan; and
(B)all claims of the lender or the assigns of
the lender against the borrower or others arising under the loan
transaction.
(3)
(A)Upon payment of a claim for insurance of a loan under
this section, the Secretary shall hold a lien on the underlying renewable
energy system assets and any associated revenue stream from the use of such
system, which shall be superior to all other liens on such assets.
(B)The residual value of such renewable energy system and the
revenue stream from the use of such system shall be not less than the unpaid
balance of the loan amount covered by the certificate of insurance.
(C)The Secretary shall be entitled to any revenue generated by
such renewable energy system from selling electricity to the grid when an
insurance claim has been paid out.
(j)Assignment and
transferability of insuranceA renewable energy system owner or
an authorized renewable energy lender that is insured under this section may
assign or transfer the insurance in whole or in part, to another owner or
lender, subject to such requirements as the Secretary may prescribe.
(k)
(1)
(A)The Secretary shall
fix and collect premiums for insurance of loans under this section, that shall
be paid by the applicant renewable energy system owner at the time of issuance
of the certificate of insurance to the lender and shall be adequate, in the
determination of the Secretary, to cover the expenses and probable losses of
administering the program under this section.
(B)The Secretary shall
deposit any premiums collected under this subsection in the Renewable Energy
Lease Insurance Fund established under subsection (l).
(2)Prohibition on
other chargesExcept as provided in paragraph (1), the Secretary
may not assess any other fee (including a user fee), insurance premium, or
charge in connection with loan insurance provided under this section.
(l)Renewable Energy
Lease Insurance Fund
(1)There is
established in the Treasury of the United States the Renewable Energy Lease
Insurance Fund (referred to in this subsection as the Fund
),
which shall be available to the Secretary without fiscal year limitation, for
the purpose of providing insurance under this section.
(2)The
Fund shall be credited with any premiums collected under subsection (k)(1), any
amounts collected by the Secretary under subsection (i)(3), and any associated
interest or earnings.
(3)Amounts
in the Fund shall be available to the Secretary for fulfilling any obligations
with respect to insurance for loans provided under this section and paying
administrative expenses in connection with this section.
(4)The Secretary may invest in obligations of the United
States any amounts in the Fund determined by the Secretary to be in excess of
amounts required at the time of such determination to carry out this
section.
(m)
(1)The Secretary shall issue such regulations as may be
necessary to carry out this section.
(2)Not
later than 180 days after the date of enactment of this Act, the Secretary
shall issue interim or final regulations.
(n)Ineligibility
for Purchase by Federal Financing BankNotwithstanding any other
provision of law, no debt obligation that is insured or committed to be insured
by the Secretary under this section shall be subject to the Federal Financing
Bank Act of 1973 (12 U.S.C. 2281 et seq.).
(o)The authority of the Secretary to insure and make
commitments to insure new loans under this Act shall terminate 10 years after
the date of enactment of this Act.
22.
(a)Insured
depository institutionsSection 8 of the Federal Deposit Insurance
Act (12 U.S.C. 1818) is amended by adding at the end the following:
(x)
(1)The Federal banking
agencies shall prescribe guidelines encouraging the establishment and
maintenance of green banking centers by insured depository institutions to
provide any consumer who seeks information on obtaining a mortgage, home
improvement loan, or home equity loan with additional information on—
(A)obtaining a home
energy rating or audit for the residence for which such mortgage or loan is
sought;
(B)obtaining financing for cost-effective
energy-saving improvements to such property; and
(C)obtaining beneficial terms for any mortgage
or loan, or qualifying for a larger mortgage or loan, secured by a residence
which meets or will meet energy efficiency standards.
(2)Information and
referralsThe information made available to consumers under
paragraph (1) may include—
(A)information on obtaining a home energy
rating and contact information on qualified energy raters in the area of the
residence;
(B)information on the secondary market
guidelines that permit lenders to provide more favorable terms by allowing
lenders to increase the ratio on debt-to-income requirements or to use the
projected utility savings as a compensating factor;
(C)information including eligibility
information about, and contact information for, any conservation or renewable
energy programs, grants, or loans offered by the Secretary of Housing and Urban
Development, including the Energy Efficient Mortgage Program;
(D)information including eligibility
information about, and contact information for, any conservation or renewable
energy programs, grants, or loans offered for qualified military personal,
reservists, and veterans by the Secretary of Veterans Affairs;
(E)information about, and contact information
for, the Office of Efficiency and Renewable Energy at the Department of Energy,
including the weatherization assistance program;
(F)information about, and contact information
for, the Energy Star Program of the Environmental Protection Agency;
(G)information from,
and contact information for, the Federal Citizen Information Center of the
General Services Administration on energy efficient mortgages and loans, home
energy rating systems, and the availability of energy efficient mortgage
information from a variety of Federal agencies; and
(H)such other
information as the agencies or the insured depository institution may determine
to be appropriate or
useful.
.
(b)Section 206 of the Federal Credit Union Act (12 U.S.C.
1786) is amended by adding at the end the following:
(x)
(1)The Board shall
prescribe guidelines encouraging the establishment and maintenance of green
banking centers by insured credit unions to provide any member who seeks
information on obtaining a mortgage, home improvement loan, or home equity loan
with additional information on—
(A)obtaining a home
energy rating or audit for the residence for which such mortgage or loan is
sought;
(B)obtaining financing for cost-effective
energy-saving improvements to such property; and
(C)obtaining beneficial terms for any mortgage
or loan, or qualifying for a larger mortgage or loan, secured by a residence
which meets or will meet energy efficiency standards.
(2)Information and
referralsThe information made available to members under
paragraph (1) may include—
(A)information on obtaining a home energy
rating and contact information on qualified energy raters in the area of the
residence;
(B)information on the secondary market
guidelines that permit lenders to provide more favorable terms by allowing
lenders to increase the ratio on debt-to-income requirements or to use the
projected utility savings as a compensating factor;
(C)information including eligibility
information about, and contact information for, any conservation or renewable
energy programs, grants, or loans offered by the Secretary of Housing and Urban
Development, including the Energy Efficient Mortgage Program;
(D)information including eligibility
information about, and contact information for, any conservation or renewable
energy programs, grants, or loans offered for qualified military personnel,
reservists, and veterans by the Secretary of Veterans Affairs;
(E)information about, and contact information
for, the Office of Efficiency and Renewable Energy at the Department of Energy,
including the weatherization assistance program;
(F)information from,
and contact information for, the Federal Citizen Information Center of the
General Services Administration on energy efficient mortgages and loans, home
energy rating systems, and the availability of energy efficient mortgage
information from a variety of Federal agencies;
(G)information about
incentives or financial products that are available for projects that are
consistent with or certified under minimum energy efficiency standards,
enhanced efficiency standards, or green building standards, as those terms are
defined in section 3 of the Energy Efficiency
in Housing Act of 2009; and
(H)such other
information as the Board or the insured credit union may determine to be
appropriate or
useful.
.
23.GAO reports on
availability of affordable mortgages
(a)The Comptroller General of the United
States shall periodically, as necessary to comply with subsection (b), examine
the impact of this Act and the amendments made by this Act on the availability
of affordable mortgages in various areas throughout the United States,
including cities having older infrastructure and limited space for the
development of new housing.
(b)
(1)The Comptroller
General shall submit a report once every 3 years to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives.
(2)The report under
paragraph (1) shall include—
(A)a detailed
statement of the most recent findings pursuant to subsection (a); and
(B)if the Comptroller General finds that this
Act or the amendments made by this Act have directly or indirectly resulted in
consequences that limit the availability or affordability of mortgages in any
area or areas within the United States, including any city having older
infrastructure and limited space for the development of new housing, any
recommendations for any additional actions at the Federal, State, or local
levels that the Comptroller General considers necessary or appropriate to
mitigate such effects.
(3)The first report under paragraph (1) shall
be submitted not later than 3 years after the date of enactment of this
Act.
24.Public housing
energy cost report
(a)Collection of
information by HUD
(1)The Secretary shall
obtain from each public housing agency, at such time as may be necessary to
comply with the reporting requirement under subsection (b), information
regarding the energy costs for public housing administered or operated by the
agency.
(2)For each public
housing agency, such information shall include the monthly energy costs
associated with each separate building and development of the agency, for the
most recently completed 12-month period for which such information is
available, and such other information as the Secretary determines is
appropriate in determining which public housing buildings and developments are
most in need of repairs and improvements to reduce energy needs and costs and
become more energy efficient.
(b)Not
later than 12 months after the date of enactment of this Act, the Secretary
shall submit to Congress a report setting forth the information collected
pursuant to subsection (a).