[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4340 Introduced in Senate (IS)]

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118th CONGRESS
  2d Session
                                S. 4340

     To provide for accurate energy appraisals in connection with 
          residential mortgage loans, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 15, 2024

  Mr. Bennet introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
     To provide for accurate energy appraisals in connection with 
          residential mortgage loans, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Getting Renewable and Energy 
Efficient Neighborhoods Appraisals Act of 2024'' or the ``GREEN 
Appraisals Act of 2024''.

SEC. 2. GETTING RENEWABLE AND ENERGY EFFICIENT NEIGHBORHOODS ACCURATE 
              ENERGY APPRAISALS.

    (a) Disclosure.--The head of each covered agency shall require that 
any creditor to which an application for a covered loan is made shall 
provide to the borrower, on the same date that the creditor delivers or 
places in the mail the disclosures described under section 
1026.19(e)(1)(iii)(A) of title 12, Code of Federal Regulations, for 
such loan, a written disclosure that includes the following:
            (1) A statement that the prospective borrower or current 
        homeowner may provide an energy report, or any information in 
        such report, regarding the property subject to the covered loan 
        to the creditor or to a qualified appraiser or other interested 
        party for consideration during a home appraisal or application 
        for a covered loan.
            (2) A statement that the prospective borrower under the 
        covered loan has the right to request an energy report 
        regarding the property subject to the covered loan.
            (3) A statement that, in developing an appraisal in 
        connection with such covered loan--
                    (A) a qualified appraiser will take the information 
                in the report into consideration; and
                    (B) the appraisers' final opinion of the value of 
                the property may be higher, lower, or no different than 
                if the energy report had not been available for the 
                appraiser to review.
            (4) A statement that, as with any other data considered by 
        the appraiser that affects the appraiser's opinion of the value 
        of a property, consideration of such data may help or hurt the 
        ability of the prospective borrower to obtain a covered loan.
    (b) Required Analysis.--In connection with a covered loan, the 
creditor under such loan shall, in underwriting the loan, use the 
appraised value of the subject property value as determined by a 
qualified appraiser. The consideration of an energy report by the 
qualified appraiser may not be used as a basis to reject a home 
appraisal or application for a covered loan.
    (c) Consideration of Energy Characteristics.--On and after March 1, 
2026, the head of each covered agency shall require, with respect to 
any covered loan for a property for which an energy report is 
available, that upon the prospective borrower's consent the creditor 
shall provide the appraiser with the energy report when the appraiser 
receives the assignment, and any underwriting or verification systems 
used by the creditor shall accommodate any appraisal that takes the 
energy report into consideration.
    (d) Consideration of Information.--A qualified appraiser to whom an 
energy report is provided in connection with a covered loan shall take 
the information in such report into consideration when developing an 
appraised value of the property. In developing the appraised value of 
the property, the qualified appraiser shall take into consideration--
            (1) the energy efficiency characteristics of the property 
        for which the report was prepared, any renewable energy related 
        features of such property, estimated energy savings for such 
        property, the energy consumption for such property relative to 
        comparable homes, or any one or more of such items;
            (2) whether such characteristics of the property are 
        relevant to the market value of the property; and
            (3) any additional information, as determined by the 
        relevant head of a covered agency.
    (e) Portability.--Upon the request of a prospective borrower under 
a covered loan, the creditor shall provide a copy of an energy report 
with respect to the property, at no cost, to the prospective borrower.
    (f) Guidance.--
            (1) In general.--The heads of the covered agencies, after 
        consultation with the advisory committee established pursuant 
        to paragraph (2), shall jointly prescribe guidance for 
        creditors to implement this section which--
                    (A) shall confirm the acceptance, by each of the 
                covered agencies, of all applicable approaches to value 
                utilized by appraisers to demonstrate market reaction 
                to energy efficiency and renewable energy;
                    (B) shall set forth procedures for consumer 
                disclosures, the preparation and sharing of energy 
                reports, and the provision of the reports to qualified 
                appraisers; and
                    (C) shall not provide for how an appraiser shall 
                consider information in an energy report.
            (2) Advisory committee.--The heads of the covered agencies 
        shall jointly establish an advisory committee of stakeholders 
        to advise the heads of the covered agencies in carrying out 
        this section, which shall consist of representatives of housing 
        advocates, energy efficiency and renewable energy 
        organizations, energy raters, home builders, architects, 
        single-family mortgage creditors, consumer advocates, 
        appraisers, and other interested groups.
            (3) Systems requirements.--Not later than the expiration of 
        the 2-year period beginning on the date of the enactment of 
        this Act, the heads of the covered agencies shall jointly 
        require a creditor originating a covered loan for which an 
        energy report is prepared under this section to use origination 
        and underwriting systems that review, score, or rate appraisals 
        in a manner consistent with the creditor guidance issued 
        pursuant to paragraph (1).
    (g) Definitions.--In this section:
            (1) Covered agency.--The term ``covered agency'' means--
                    (A) the Federal Housing Administration of the 
                Department of Housing and Urban Development;
                    (B) the Federal Housing Finance Agency, to the 
                extent that such Agency oversees and regulates the 
                enterprises, as such term is defined in section 1303 of 
                the Federal Housing Enterprises Financial Safety and 
                Soundness Act of 1992 (12 U.S.C. 4502); except that any 
                requirement imposed by this section on such Agency or 
                the Director of such Agency shall be treated as a 
                requirement with respect to the Federal National 
                Mortgage Association and the Federal Home Loan Mortgage 
                Corporation, to be imposed and enforced pursuant to the 
                authority of such Director and Agency to supervise and 
                regulate such enterprises;
                    (C) the Government National Mortgage Association;
                    (D) the Rural Housing Service of the Department of 
                Agriculture; and
                    (E) the Department of Veterans Affairs.
            (2) Covered loan.--The term ``covered loan'' means a 
        residential mortgage loan (as such term is defined in section 
        103 of the Truth in Lending Act (15 U.S.C. 1602)) that is made, 
        insured, purchased, guaranteed, or securitized by a covered 
        agency or intended to be purchased, guaranteed, or securitized 
        by a covered agency.
            (3) Creditor.--The term ``creditor'' has the meaning given 
        such term in section 103 of the Truth in Lending Act (15 U.S.C. 
        1602).
            (4) Energy report.--The term ``energy report'' means, with 
        respect to a property, an analysis that--
                    (A)(i) details the energy-related features in the 
                home;
                    (ii) estimates the expected energy costs or energy 
                savings specific to the property, or both, based on 
                specific information about the property; or
                    (iii) complies with both clauses (i) and (ii);
                    (B) estimates the expected energy generated from 
                installed renewable energy features; and
                    (C) is conducted--
                            (i) in accordance with the guidance issued 
                        under this section;
                            (ii) in accordance with 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;
                            (iii) by the Department of Energy's Home 
                        Energy Score; or
                            (iv) by other methods approved by the 
                        Secretary, in consultation with the Secretary 
                        of Energy and the advisory committee 
                        established pursuant to 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.
            (5) HERS.--The term ``HERS'' means the Home Energy Rating 
        System of the Residential Energy Service Network.
            (6) Qualified appraiser.--The term ``qualified appraiser'' 
        means an appraiser who, with respect to the assignment to 
        conduct an appraisal--
                    (A) is licensed, qualified, or certified to conduct 
                an appraisal in the State in which the property is 
                located;
                    (B) has completed a course of 7 or more hours of 
                continuing education on the consideration of energy 
                reports in the appraisal process that--
                            (i) includes case studies;
                            (ii) includes an examination, which the 
                        appraiser has passed; and
                            (iii) was submitted to, and approved by, 
                        the Appraiser Qualifications Board of the 
                        Appraisal Foundation through its Course 
                        Approval Program; and
                    (C) is, at the time of agreeing to perform the 
                assignment, competent to perform the assignment.
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