[House Report 111-619]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 111-619
======================================================================
GREEN RESOURCES FOR ENERGY EFFICIENT HOUSING ACT OF 2010
_______
September 22, 2010.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Frank of Massachusetts, from the Committee on Financial Services,
submitted the following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany H.R. 2336]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred the
bill (H.R. 2336) to encourage energy efficiency and
conservation and development of renewable energy sources for
housing, commercial structures, and other buildings, and to
create sustainable communities, having considered the same,
report favorably thereon with an amendment and recommend that
the bill as amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 30
Background and Need for Legislation.............................. 31
Hearings......................................................... 34
Committee Consideration.......................................... 35
Committee Votes.................................................. 35
Committee Oversight Findings..................................... 35
Performance Goals and Objectives................................. 35
New Budget Authority, Entitlement Authority, and Tax Expenditures 36
Committee Cost Estimate.......................................... 36
Congressional Budget Office Estimate............................. 36
Federal Mandates Statement....................................... 40
Advisory Committee Statement..................................... 41
Constitutional Authority Statement............................... 41
Applicability to Legislative Branch.............................. 41
Earmark Identification........................................... 41
Section-by-Section Analysis of the Legislation................... 41
Changes in Existing Law Made by the Bill, as Reported............ 47
Additional Views................................................. 60
Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Green Resources for
Energy Efficient Neighborhoods Act of 2010'' or the ``GREEN Act of
2010''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
Sec. 2. Definitions.
Sec. 3. Implementation of energy efficiency participation incentives
for HUD programs.
Sec. 4. Basic HUD energy efficiency standards and standards for
additional credit.
Sec. 5. Energy efficiency and conservation demonstration program for
multifamily housing projects assisted with project-based rental
assistance.
Sec. 6. Consideration of energy efficiency under FHA mortgage insurance
programs and Native American and Native Hawaiian loan guarantee
programs.
Sec. 7. Energy-efficient mortgages and location-efficient mortgages
education and outreach campaign.
Sec. 8. Collection of information on energy-efficient and location-
efficient mortgages through Home Mortgage Disclosure Act.
Sec. 9. Ensuring availability of homeowners insurance for homes not
connected to electricity grid.
Sec. 10. Mortgage incentives for energy-efficient multifamily housing.
Sec. 11. Energy-efficient certifications for manufactured housing with
mortgages.
Sec. 12. Assisted housing energy loan pilot program.
Sec. 13. Making it green.
Sec. 14. Residential energy efficiency block grant program.
Sec. 15. Including sustainable development and transportation
strategies in comprehensive housing affordability strategies.
Sec. 16. Grant program to increase sustainable low-income community
development capacity.
Sec. 17. HOPE VI green developments requirement.
Sec. 18. Consideration of energy efficiency improvements in appraisals.
Sec. 19. Housing Assistance Council.
Sec. 20. Rural housing and economic development assistance.
Sec. 21. Loans to States and Indian tribes to carry out renewable
energy sources activities.
Sec. 22. GAO reports on availability of affordable mortgages.
Sec. 23. Public housing energy cost report.
Sec. 24. Insurance coverage for loans for financing of renewable energy
systems leased for residential use.
Sec. 25. Green guarantees.
Sec. 26. Green dividend program for federally assisted rental housing.
Sec. 27. Use of residual receipts and reserve for replacements funds
for green retrofits of federally assisted rental housing.
Sec. 28. Study on building codes effects on construction and
installation of distributive energy generation measures and water
efficiency measures.
Sec. 29. Community building code administration grants.
SEC. 2. DEFINITIONS.
For purposes of this Act, the following definitions shall apply:
(1) Energy-efficient mortgage.--The term ``energy-efficient
mortgage'' means--
(A) a mortgage loan under which the income of the
borrower, for purposes of qualification for such loan,
is considered to be increased by 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, super-insulation, energy-saving
windows, insulating glass and film, and radiant
barrier) for the home for which the loan is made; or
(B) such other mortgage loan that recognizes such
savings as the Secretary may provide.
(2) Green building standards.--The term ``green building
standards'' means standards to require use of sustainable
design principles to reduce the use of nonrenewable resources,
encourage energy-efficient construction and rehabilitation and
the use of renewable energy resources, minimize the impact of
development on the environment, and improve indoor air quality.
(3) HUD.--The term ``HUD'' means the Department of Housing
and Urban Development.
(4) HUD assistance.--The term ``HUD assistance'' means
financial assistance that is awarded, competitively or
noncompetitively, allocated by formula, or provided by HUD
rental assistance, direct loan, or capital grant.
(5) Location-efficient mortgage.--The term ``location-
efficient mortgage'' means--
(A) a mortgage loan under which--
(i) the income of the borrower, for purposes
of qualification for such loan, is considered
to be increased by 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) the sum of the principal, interest,
taxes, and insurance due under the mortgage
loan is decreased by 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
(B) such other mortgage loan that recognizes such
savings as the Secretary may provide.
(6) Nonresidential structure.--The term ``nonresidential
structures'' means only nonresidential structures that are
appurtenant to single-family or multifamily housing residential
structures, or those that are funded by the Secretary of
Housing and Urban Development through the HUD Community
Development Block Grant program.
(7) Secretary.--The term ``Secretary'', unless otherwise
specified, means the Secretary of Housing and Urban
Development.
SEC. 3. IMPLEMENTATION OF ENERGY EFFICIENCY PARTICIPATION INCENTIVES
FOR HUD PROGRAMS.
(a) In General.--Not later than 180 days after the date of the
enactment of this Act, the Secretary shall issue such regulations as
may be necessary to establish annual energy efficiency participation
incentives consistent with this Act to encourage participants in
programs administered by the Secretary, including recipients under
programs for which HUD assistance is provided, to achieve substantial
improvements in energy efficiency.
(b) Requirement for Appropriation of Funds.--The requirement under
subsection (a) for the Secretary to provide annual energy efficiency
participation incentives pursuant to the provisions of this Act shall
be subject to the annual appropriation of necessary funds.
SEC. 4. BASIC HUD ENERGY EFFICIENCY STANDARDS AND STANDARDS FOR
ADDITIONAL CREDIT.
(a) Basic HUD Standard.--
(1) Residential structures.--A residential single-family or
multifamily structure shall be considered to comply with the
energy efficiency standards under this subsection if--
(A) the structure complies with the applicable
provisions of the American Society of Heating,
Refrigerating, and Air-Conditioning Engineers Standard
90.1-2007, as such standard or successor standard is in
effect for purposes of this section pursuant subsection
(c);
(B) the structure complies with the applicable
provisions of the 2009 International Energy
Conservation Code, or the requirements of a standard
that provides equal or greater energy savings, as such
standard or successor standard is in effect for
purposes of this section pursuant subsection (c);
(C) in the case only of an existing structure, where
determined cost effective, the structure has undergone
rehabilitation or improvements, completed after the
date of the enactment of this Act, and the energy
consumption for the structure has been reduced by at
least 20 percent from the previous level of
consumption, as determined in accordance with energy
audits performed both before and after any
rehabilitation or improvements undertaken to reduce
such consumption; or
(D) the structure complies with the applicable
provisions of such other energy efficiency
requirements, standards, criteria, or ratings systems
as the Secretary may adopt and apply by regulation, as
may be necessary, for purposes of this section for
specific types of residential single-family or
multifamily structures or otherwise, except that the
Secretary shall make a determination regarding whether
to adopt and apply any such requirements, standards,
criteria, or rating system for purposes of this section
not later than the expiration of the 180-day period
beginning upon the date of receipt of any written
request, made in such form as the Secretary shall
provide, for such adoption and application.
In addition to compliance with any of subparagraphs (A) through
(D), the Secretary shall by regulation require, for any newly
constructed residential single-family or multifamily structure
to be considered to comply with the energy efficiency standards
under this subsection, that the structure have appropriate
electrical outlets with the facility and capacity to recharge a
standard electric passenger vehicle, including an electric
hybrid vehicle, where such vehicle would normally be parked.
(2) Nonresidential structures.--For purposes of this section,
the Secretary shall identify and adopt by regulation, as may be
necessary, energy efficiency requirements, standards, criteria,
or rating systems applicable to nonresidential structures that
are constructed or rehabilitated with HUD assistance. A
nonresidential structure shall be considered to comply with the
energy efficiency standards under this subsection if the
structure complies with the applicable provisions of any such
energy efficiency requirements, standards, criteria, or rating
systems identified and adopted by the Secretary pursuant to
this paragraph, as such standards are in effect for purposes of
this section pursuant to subsection (c).
(3) Effect.--Nothing in this subsection may be construed to
require any structure to comply with any standard established
or adopted pursuant to this subsection, or identified in this
subsection, or to provide any benefit or credit under any
Federal program for any structure that complies with any such
standard, except to the extent that--
(A) any provision of law other than this subsection
provides a benefit or credit under a Federal program
for compliance with a standard established or adopted
pursuant to this subsection, or identified in this
subsection; or
(B) the Secretary specifically provides pursuant to
subsection (c) for the applicability of such standard.
(b) Enhanced Energy Efficiency Standards for Purposes of Providing
Additional Credit Under Certain Federally Assisted Housing Programs.--
(1) Purpose and effect.--
(A) Purpose.--The purpose of this subsection is to
identify energy efficiency and conservation standards
and green building standards that--
(i) provide for greater energy efficiency and
conservation in structures than is required for
compliance with the energy efficiency standards
under subsection (a) and then in effect;
(ii) provide for green and sustainable
building standards not required by such
standards; and
(iii) can be used in connection with Federal
housing, housing finance, and development
programs to provide incentives for greater
energy efficiency and conservation and for
green and sustainable building methods,
elements, practices, and materials.
(B) Effect.--Nothing in this subsection may be
construed to require any structure to comply with any
standard established pursuant to this subsection or to
provide any benefit or credit under any Federal program
for any structure, except to the extent that any
provision of law other than this subsection provides a
benefit or credit under a Federal program for
compliance with a standard established pursuant to this
subsection.
(2) Compliance.--A residential or nonresidential structure
shall be considered to comply with the enhanced energy
efficiency and conservation standards or the green building
standards under this subsection, to the extent that such
structure complies with the applicable provisions of the
standards under paragraph (3) or (4), respectively (as such
standards are in effect for purposes of this section, pursuant
to paragraph (7)), in a manner that is not required for
compliance with the energy efficiency standards under
subsection (a) then in effect and subject to the Secretary's
determination of which standards are applicable to which
structures.
(3) Energy efficiency and conservation standards.--The energy
efficiency and conservation standards under this paragraph are
as follows:
(A) Residential structures.--With respect to
residential structures:
(i) New construction.--For new construction,
the Energy Star standards established by the
Environmental Protection Agency, as such
standards are in effect for purposes of this
subsection pursuant to paragraph (7);
(ii) Existing structures.--For existing
structures, a reduction in energy consumption
from the previous level of consumption for the
structure, as determined in accordance with
energy audits performed both before and after
any rehabilitation or improvements undertaken
to reduce such consumption, that exceeds the
reduction necessary for compliance with the
energy efficiency standards under subsection
(a) then in effect and applicable to existing
structures.
(B) Nonresidential structures.--With respect to
nonresidential structures, such energy efficiency and
conservation requirements, standards, criteria, or
rating systems for nonresidential structures as the
Secretary shall identify and adopt by regulation, as
may be necessary, for purposes of this paragraph.
(4) Green building standards.--The green building standards
under this paragraph are as follows:
(A) The national Green Communities criteria for
residential construction that provides criteria for the
design, development, and operation of affordable
housing, as such criteria or successor criteria is in
effect for purposes of this section pursuant to
paragraph (7).
(B) The LEED for Neighborhood Development rating
system for the LEED for New Construction rating system,
the LEED for Homes rating system, the LEED for Core and
Shell rating system, as applicable, as such systems or
successor systems are in effect for purposes of this
section pursuant to paragraph (7).
(C) The Green Globes assessment and rating system of
the Green Buildings Initiative.
(D) For manufactured housing, Energy Star rating with
respect to fixtures, appliances, and equipment in such
housing, as such standard or successor standard is in
effect for purposes of this section pursuant to
paragraph (7).
(E) The 2008 National Green Building Standard (ICC
700).
(F) Any other requirements, standards, criteria, or
rating systems for green building or sustainability as
the Secretary may identify and adopt by regulation, as
may be necessary for purposes of this paragraph, except
that the Secretary shall make a determination regarding
whether to adopt and apply any such requirements,
standards, criteria, or rating system for purposes of
this section not later than the expiration of the 180-
day period beginning upon date of receipt of any
written request, made in such form as the Secretary
shall provide, for such adoption and application.
(5) Green building.--For purposes of this subsection, the
term ``green building'' means a building that meets the green
building standards under paragraph (4).
(6) Energy audits.--The Secretary shall establish standards
and requirements for energy audits for purposes of paragraph
(3)(A)(ii) and, in establishing such standards, may consult
with any advisory committees established pursuant to section
5(c)(2) of this Act.
(7) Applicability and updating of standards.--
(A) Applicability.--Except as provided in
subparagraph (B), the requirements, standards,
criteria, and rating systems referred to in this
subsection that are in effect for purposes of this
subsection are such requirements, standards, criteria,
and systems are as in existence upon the date of the
enactment of this Act.
(B) Updating.--For purposes of this section, the
Secretary may adopt and apply by regulation, as may be
necessary, future amendments and supplements to, and
editions of, the requirements, standards, criteria, and
rating systems referred to in this subsection.
(c) Authority of Secretary to Apply Standards to Federally Assisted
Housing and Programs.--
(1) HUD housing and programs.--The Secretary of Housing and
Urban Development may, by regulation, provide for the
applicability of the energy efficiency standards under
subsection (a), the enhanced energy efficiency and conservation
standards and green building standards under subsection (b),
or, in the case of deconstruction, any applicable provisions of
and points provided under the LEED for New Construction and
Major Renovation rating system, or any combination thereof,
with respect to any covered federally assisted housing
described in paragraph (3)(A) or any HUD assistance.
(2) Rural housing.--The Secretary of Agriculture may, by
regulation, provide for the applicability of the energy
efficiency standards under subsection (a), the enhanced energy
efficiency and conservation standards and green building
standards under subsection (b), or, in the case of
deconstruction, any applicable provisions of and points
provided under the LEED for New Construction and Major
Renovation rating system, or any combination thereof, with
respect to any covered federally assisted housing described in
paragraph (3)(B) or any assistance provided with respect to
rural housing by the Rural Housing Service of the Department of
Agriculture.
(3) Covered federally assisted housing.--For purposes of this
subsection, the term ``covered federally assisted housing''
means--
(A) any residential or nonresidential structure for
which any HUD assistance is provided; and
(B) any new construction of single-family or
multifamily housing (other than manufactured homes)
subject to mortgages insured, guaranteed, or made by
the Secretary of Agriculture under title V of the
Housing Act of 1949 (42 U.S.C. 1471 et seq.).
(d) Deconstruction.--The Secretary of Housing and Urban Development
and the Secretary of Agriculture, as applicable, shall require that any
deconstruction activity conducted under or pursuant to any provision of
this Act or any amendment made by this Act complies with such
deconstruction standards as such Secretaries shall establish for
purposes of this section, taking into consideration the applicable
provisions of and points provided under the LEED for New Construction
and Major Renovation rating system. Such standards may be updated and
revised from time to time, by regulation.
SEC. 5. ENERGY EFFICIENCY AND CONSERVATION DEMONSTRATION PROGRAM FOR
MULTIFAMILY HOUSING PROJECTS ASSISTED WITH PROJECT-
BASED RENTAL ASSISTANCE.
(a) Authority.--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 the enhanced energy efficiency standards under section 4(b). At
the discretion of the Secretary, the demonstration program 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, but only to the extent that such
inclusion does not violate such Act, its regulations, and the goal of
such Act of tribal self-determination.
(b) Goals.--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 the 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) 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;
(6) tests the efficacy of a variety of energy efficiency
measures for multifamily housing projects of various sizes and
in various geographic locations;
(7) 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
(8) creates a database of energy efficiency and conservation,
and renewable energy, techniques, energy-savings management
practices, and energy efficiency and conservation financing
vehicles.
(c) Approaches.--In carrying out the demonstration program under this
section, the Secretary may--
(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, which committees shall include
representatives of homebuilders, realtors, multifamily housing
development and management areas, architects, nonprofit housing
organizations, environmental protection organizations,
renewable energy organizations, and advocacy organizations for
the elderly and persons with disabilities; any advisory
committees established pursuant to this paragraph shall not be
subject to the Federal Advisory Committee Act (5 U.S.C. App.);
(3) approve, for a period not to exceed 10 years, additional
adjustments in the maximum monthly rents or additional project
rental assistance, or additional Indian housing block grant
funds under the Native American Housing Assistance and Self-
Determination Act of 1996, as applicable, for dwelling units in
multifamily housing projects that are provided project-based
rental assistance under a covered multifamily assistance
program, in such amounts as may be necessary to amortize all or
a portion of the cost of energy efficiency and conservation
measures for such projects;
(4) 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; such competitive process shall not be
limited to assess the first costs, but shall assess the degree
to which applicants will meet each of the goals of the
demonstration program under subsection (b); and
(5) waive or modify any existing statutory or regulatory
provision that the Secretary administers 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) Requirement.--During the 5-year period beginning on the date of
the 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) Selection.--
(1) Scope.--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 and technical and
scientific methodologies, and financing options. The Secretary
shall ensure that the geographic areas included in the
demonstration program include dwelling units on Indian lands
(as such 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) Priority.--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 comply with the energy efficiency
standards under subsection (a), (b), or (c) of section 4 of
this Act.
(f) Use of Existing Partnerships.--To 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 they might assist in carrying out the goals of this
section and providing education and outreach regarding the
demonstration program authorized under this section.
(g) Limitation.--No amounts made available under the American
Recovery and Reinvestment Act of 2009 (Public Law 111-5) may be used to
carry out the demonstration program under this section.
(h) Reports.--
(1) Annual.--Within 2 years after the date of the enactment
of this Act, and for each year thereafter during the term of
the demonstration program, the Secretary shall submit a report
to the Congress annually that describes and assesses the
demonstration program under this section.
(2) Final.--Not later than 6 months after the expiration of
the 4-year period described in subsection (d), the Secretary
shall submit a final report to the Congress assessing the
demonstration program, which--
(A) shall assess the potential for expanding the
demonstration program on a nationwide basis; and
(B) shall include 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
such 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 the such successes and
failures.
(3) Contents.--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.
(i) Covered Multifamily Assistance Program.--For 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;
(4) the program under section 236 of the National Housing Act
(12 U.S.C. 1715z-1 for assistance for rental housing projects;
(5) the program for mortgage insurance under section
221(d)(3) of the National Housing Act (12 U.S.C. 1715l(d)(3))
for rental housing projects;
(6) the program under section 515 of the Housing Act of 1949
(42 U.S.C. 1485) for rural rental housing; and
(7) the program for assistance under the Native American
Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4111).
(j) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section, including providing rent
adjustments, additional project rental assistance, and incentives,
$50,000,000 for each fiscal year in which the demonstration program
under this section is carried out.
(k) Regulations.--Not later than the expiration of the 180-day period
beginning on the date of the enactment of this Act, the Secretary shall
issue any regulations necessary to carry out this section.
SEC. 6. CONSIDERATION OF ENERGY EFFICIENCY UNDER FHA MORTGAGE INSURANCE
PROGRAMS AND NATIVE AMERICAN AND NATIVE HAWAIIAN
LOAN GUARANTEE PROGRAMS.
(a) FHA Mortgage Insurance.--
(1) Requirement.--Title V of the National Housing Act is
amended by adding after section 542 (12 U.S.C. 1735f-20) the
following new section:
``SEC. 543. CONSIDERATION OF ENERGY EFFICIENCY.
``(a) Underwriting Standards.--The Secretary shall establish a method
to consider, in its underwriting standards for mortgages on single-
family housing meeting the energy efficiency standards under section
4(a) of the Green Resources for Energy Efficient Neighborhoods Act of
2010 that are insured under this Act, the impact that savings on
utility costs has on the income of the mortgagor.
``(b) Goal.--It is the sense of the Congress that, in carrying out
this Act, the Secretary should endeavor to insure mortgages on single-
family housing meeting the energy efficiency standards under section
4(a) of the Green Resources for Energy Efficient Neighborhoods Act of
2010 such that at least 50,000 such mortgages are insured during the
period beginning upon the date of the enactment of such Act and ending
on December 31, 2012.''.
(2) Reporting on defaults.--Section 540(b) of the National
Housing Act (12 U.S.C. 1735f-18(b)) is amended by adding at the
end the following new paragraph:
``(3) With respect to each collection period that commences
after December 31, 2011, the total number of mortgages on
single-family housing meeting the energy efficiency standards
under section 4(a) of the Green Resources for Energy Efficient
Neighborhoods Act of 2010 that are insured by the Secretary
during the applicable collection period, the number of defaults
and foreclosures occurring on such mortgages during such
period, the percentage of the total of such mortgages insured
during such period on which defaults and foreclosure occurred,
and 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) Requirement.--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
new subsection:
``(l) Consideration of Energy Efficiency.--The Secretary shall
establish a method to consider, in its underwriting standards for loans
for single-family housing meeting the energy efficiency standards under
section 4(a) of the Green Resources for Energy Efficient Neighborhoods
Act of 2010 that are guaranteed under this section, the impact that
savings on utility costs has on the income of the borrower.''.
(2) Reporting on defaults.--Section 540(b) of the National
Housing Act (12 U.S.C. 1735f-18(b)), as amended by subsection
(a)(2) of this section, is further amended by adding at the end
the following new paragraph:
``(4) With respect to each collection period that commences
after December 31, 2011, the total number of loans guaranteed
under section 184 of the Housing and Community Development Act
of 1992 (12 U.S.C. 1715z-13a) on single-family housing meeting
the energy efficiency standards under section 4(a) of the Green
Resources for Energy Efficient Neighborhoods Act of 2010 that
are guaranteed by the Secretary during the applicable
collection period, the number of defaults and foreclosures
occurring on such loans during such period, the percentage of
the total of such loans guaranteed during such period on which
defaults and foreclosure occurred, and 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
184 by the Secretary.''.
(c) Native Hawaiian Housing Loan Guarantees.--
(1) Requirement.--Section 184A of the Housing and Community
Development Act of 1992 (12 U.S.C. 1715z-13b) is amended by
inserting after subsection (l) the following new subsection:
``(m) Energy-efficient Housing Requirement.--The Secretary shall
establish a method to consider, in its underwriting standards for loans
for single-family housing meeting the energy efficiency standards under
section 4(a) of the Green Resources for Energy Efficient Neighborhoods
Act of 2010 that are guaranteed under this section, the impact that
savings on utility costs has on the income of the borrower.''.
(2) Reporting on defaults.--Section 540(b) of the National
Housing Act (12 U.S.C. 1735f-18(b)), as amended by the
preceding provisions of this section, is further amended by
adding at the end the following new paragraph:
``(5) With respect to each collection period that commences
after December 31, 2011, 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 meeting
the energy efficiency standards under section 4(a) of the Green
Resources for Energy Efficient Neighborhoods Act of 2010 that
are guaranteed by the Secretary during the applicable
collection period, the number of defaults and foreclosures
occurring on such loans during such period, the percentage of
the total of such loans guaranteed during such period on which
defaults and foreclosure occurred, and 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 by the Secretary.''.
SEC. 7. ENERGY-EFFICIENT MORTGAGES AND LOCATION-EFFICIENT MORTGAGES
EDUCATION AND OUTREACH CAMPAIGN.
Section 106 of the Energy Policy Act of 1992 (12 U.S.C. 1701z-16) is
amended by adding at the end the following new subsection:
``(g) Education and Outreach Campaign.--
``(1) Development of energy- and location-efficient mortgages
outreach program.--
``(A) Commission.--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 and location
efficiencies in new mortgage loan transactions.
``(B) Report.--Not later than 24 months after the
date of the enactment of this Act, the Secretary shall
provide a written report to the Congress 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 and location efficiency.
``(2) Implementation.--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 energy-
efficient mortgages and location-efficient mortgages made
available pursuant to this section, energy-efficient and
location-efficient mortgages (as such terms are defined in
section 2 of the GREEN Act of 2010), and other mortgages,
including mortgages for multifamily housing, that have energy
improvement features or location efficiency features and to
publicize such availability, benefits, advantages, and terms.
Such actions may include entering into a contract with an
appropriate entity to publicize and market such mortgages
through appropriate media.
``(3) Renewable energy home product expos.--The Congress
hereby encourages the Secretary of Housing and Urban
Development to 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 appropriations.--There is authorized
to be appropriated to the Secretary to carry out this
subsection $5,000,000 for each of fiscal years 2010 through
2014.''.
SEC. 8. COLLECTION OF INFORMATION ON ENERGY-EFFICIENT AND LOCATION-
EFFICIENT MORTGAGES THROUGH HOME MORTGAGE
DISCLOSURE ACT.
(a) In General.--Section 304(b) of the Home Mortgage Disclosure Act
of 1975 (12 U.S.C. 2803(b)) 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
2 of the GREEN Act of 2010); 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 2 of the GREEN Act of 2010).''.
(b) Applicability.--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 the enactment
of this Act.
SEC. 9. ENSURING AVAILABILITY OF HOMEOWNERS INSURANCE FOR HOMES NOT
CONNECTED TO ELECTRICITY GRID.
(a) Congressional Intent.--The Congress intends that--
(1) consumers shall not be denied homeowners insurance for a
dwelling (as such term is defined in subsection (c)) based
solely on the fact that the dwelling is not connected to or
able to receive electricity service from any wholesale or
retail electric power provider;
(2) States should ensure that consumers are able to obtain
homeowners insurance for such dwellings;
(3) States should support insurers that develop voluntary
incentives to provide such insurance; and
(4) States may not prohibit insurers from offering a
homeowners insurance product specifically designed for such
dwellings.
(b) Insuring Homes and Related Property in Indian Areas.--
Notwithstanding any other provision of law, dwellings located in Indian
areas (as such term is defined in section 4 of the Native American
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103))
and constructed or maintained using assistance, loan guarantees, or
other authority under the Native American Housing Assistance and Self-
Determination Act of 1996 may be insured by any tribally owned self-
insurance risk pool approved by the Secretary of Housing and Urban
Development.
(c) Dwelling.--For purposes of this section, the term ``dwelling''
means a residential structure that--
(1) consists of one to four dwelling units;
(2) is provided electricity from renewable energy sources;
and
(3) is not connected to any wholesale or retail electrical
power grid.
SEC. 10. MORTGAGE INCENTIVES FOR ENERGY-EFFICIENT MULTIFAMILY HOUSING.
(a) In General.--The Secretary of Housing and Urban Development shall
establish 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
the housing meets the energy efficiency standards under section 4(a) of
this Act and incentives to encourage compliance of such housing with
the energy efficiency and conservation standards, and the green
building standards, under section 4(b) of this Act, to the extent that
such incentives are based on the impact that savings on utility costs
has on the operating costs of the housing, as determined by the
Secretary.
(b) Incentives.--Such incentives may include, for any such
multifamily housing that complies with the energy efficiency standards
under section 4(a)--
(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 meeting the standards referred to in subsection (a) is
required to contribute.
SEC. 11. ENERGY-EFFICIENT CERTIFICATIONS FOR MANUFACTURED HOUSING WITH
MORTGAGES.
Section 526 of the National Housing Act (12 U.S.C. 1735f-4(a)) is
amended--
(1) in subsection (a)--
(A) by striking ``, other than manufactured homes,''
each place such term appears;
(B) by inserting after the period at the end the
following: ``The energy performance requirements
developed and established by the Secretary under this
section for manufactured homes shall require Energy
Star rating for wall fixtures, appliances, and
equipment in such housing.'';
(C) by inserting ``(1)'' after ``(a)''; and
(D) by adding at the end the following new
paragraphs:
``(2) The Secretary shall require, with respect to any mortgage for
manufactured housing insured under this Act, that any approval or
certification of the housing for meeting any energy efficiency or
conservation criteria, standards, or requirements pursuant to this
title and any approval or certification required pursuant to this title
with respect to energy-conserving improvements or any renewable energy
sources, such as wind, solar energy geothermal, or biomass, shall be
conducted only by an individual certified by a home energy rating
system provider who has been accredited to conduct such ratings by the
Home Energy Ratings System Council, the Residential Energy Services
Network, or such other appropriate national organization, as the
Secretary may provide, or by licensed professional architect or
engineer. If any organization makes a request to the Secretary for
approval to accredit individuals to conduct energy efficiency or
conservation ratings, the Secretary shall review and approve or
disapprove such request not later than the expiration of the 6-month
period beginning upon receipt of such request.
``(3) The Secretary shall periodically examine the method used to
conduct inspections for compliance with the requirements under this
section, analyze various other approaches for conducting such
inspections, and review the costs and benefits of the current method
compared with other methods.''; and
(2) in subsection (b), by striking ``, other than a
manufactured home,''.
SEC. 12. ASSISTED HOUSING ENERGY LOAN PILOT PROGRAM.
(a) Authority.--Not later than the expiration of the 12-month period
beginning on the date of the enactment of this Act, the Secretary shall
develop and implement a pilot program under this section 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) Loans.--The pilot program under this section shall involve not
less than three and not more than five lenders, and shall provide for a
privately financed loan to be made for a covered assisted housing
project, which shall--
(1) finance 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) have a term to maturity of not more than 20 years, which
shall be based upon the duration necessary to realize cost
savings sufficient to repay the loan;
(3) be secured by a mortgage subordinate to the mortgage for
the project that is insured under the National Housing Act; and
(4) provide for a reduction in the remaining principal
obligation under the loan based on the actual resulting cost
savings realized from the capital improvements financed with
the loan.
(c) Underwriting Standards.--The Secretary shall review 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.
(d) Treatment of Savings.--The pilot program under this section shall
provide that the project owner shall receive the full financial benefit
from any reduction in the cost of utilities resulting from capital
improvements financed with a loan made under the program.
(e) Covered Assisted Housing Projects.--For 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--
(i) subsection (d)(3) of section 221 of the
National Housing Act (12 U.S.C. 1715l), and
bears interest at a rate determined under the
proviso of section 221(d)(5) of such Act; or
(ii) subsection (d)(4) of such section 221;
(B) insured or assisted under section 236 of the
National Housing Act (12 U.S.C. 1715z-1); or
(C) is assisted with a capital advance under section
202 of the Housing Act of 1959 (12 U.S.C. 1701q) or a
loan under such section (as in effect before October 1,
1991);
(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) , or
project rental assistance under section 202 of the Housing Act
of 1959, as applicable, 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.
SEC. 13. MAKING IT GREEN.
(a) Partnerships With Tree-planting Organizations.--The Secretary
shall establish and provide incentives for developers of housing for
which any HUD financial assistance, as determined by the Secretary, is
provided for development, maintenance, operation, or other costs, to
enter into agreements and partnerships with tree-planting
organizations, nurseries, and landscapers to certify that trees,
shrubs, grasses, and other plants are planted in the proper manner, are
provided adequate maintenance, and survive for at least 3 years after
planting or are replaced. The financial assistance determined by the
Secretary as eligible under this section shall take into consideration
such factors as cost effectiveness and affordability.
(b) Making It Green Plan.--In the case of any new or substantially
rehabilitated housing for which HUD financial assistance, as determined
in accordance with subsection (a), is provided by the Secretary for the
development, construction, maintenance, rehabilitation, improvement,
operation, or costs of the housing, including financial assistance
provided through the Community Development Block Grant program under
title I of the Housing and Community Development Act of 1974 (42 U.S.C.
5301 et seq.), the Secretary shall require the development of a plan
that provides for--
(1) in the case of new construction and improvements, siting
of such housing and improvements in a manner that provides for
energy efficiency and conservation to the extent feasible,
taking into consideration location and project type;
(2) minimization of the effects of construction,
rehabilitation, or other development on the condition of
existing trees;
(3) selection and installation of indigenous trees, shrubs,
grasses, and other plants based upon applicable design
guidelines and standards of the International Society for
Arboriculture;
(4) post-planting care and maintenance of the landscaping
relating to or affected by the housing in accordance with best
management practices; and
(5) establishment of a goal for minimum greenspace or tree
canopy cover for the housing site for which such financial
assistance is provided, including guidelines and timetables
within which to achieve compliance with such minimum
requirements.
(c) Partnerships.--In carrying out this section, the Secretary is
encouraged to consult, as appropriate, with national organizations
dedicated to providing housing assistance and related services to low-
income families, such as the Alliance for Community Trees and its
affiliates, the American Nursery and Landscape Association, the
American Society of Landscape Architects, and the National Arbor Day
Foundation.
SEC. 14. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT PROGRAM.
Title I of the Housing and Community Development Act of 1974 (42
U.S.C. 5301 et seq.) is amended by adding at the end the following new
section:
``SEC. 123. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT PROGRAM.
``(a) In General.--To the extent amounts are made available for
grants under this section, the Secretary shall make grants under this
section to States, metropolitan cities and urban counties, Indian
tribes, and insular areas to carry out energy efficiency improvements
in new and existing single-family and multifamily housing.
``(b) Allocations.--
``(1) In general.--Of the total amount made available for
each fiscal year for grants under this section that remains
after reserving amounts pursuant to paragraph (2), the
Secretary shall allocate for insular areas, for metropolitan
cities and urban counties, and for States, an amount that bears
the same ratio to such total amount as the amount allocated for
such fiscal year under section 106 for Indian tribes, for
insular areas, for metropolitan cities and urban counties, and
for States, respectively, bears to the total amount made
available for such fiscal year for grants under section 106.
``(2) Set aside for indian tribes.--Of the total amount made
available for each fiscal year for grants under this section,
the Secretary shall allocate not less than 1 percent to Indian
tribes.
``(c) Grant Amounts.--
``(1) Entitlement communities.--From the amounts allocated
pursuant to subsection (b) for metropolitan cities and urban
counties for each fiscal year, the Secretary shall make a grant
for such fiscal year to each metropolitan city and urban county
that complies with the requirement under subsection (d), in the
amount that bears the same ratio such total amount so allocated
as the amount of the grant for such fiscal year under section
106 for such metropolitan city or urban county bears to the
aggregate amount of all grants for such fiscal year under
section 106 for all metropolitan cities and urban counties.
``(2) States.--From the amounts allocated pursuant to
subsection (b) for States for each fiscal year, the Secretary
shall make a grant for such fiscal year to each State that
complies with the requirement under subsection (d), in the
amount that bears the same ratio such total amount so allocated
as the amount of the grant for such fiscal year under section
106 for such State bears to the aggregate amount of all grants
for such fiscal year under section 106 for all States. Grant
amounts received by a State shall be used only for eligible
activities under subsection (e) carried out in nonentitlement
areas of the State.
``(3) Indian tribes.--From the amounts allocated pursuant to
subsection (b) for Indian tribes, the Secretary shall make
grants to Indian tribes that comply with the requirement under
subsection (d) on the basis of a competition conducted pursuant
to specific criteria, as the Secretary shall establish by
regulation, for the selection of Indian tribes to receive such
amount.
``(4) Insular areas.--From the amounts allocated pursuant to
subsection (b) for insular areas, the Secretary shall make a
grant to each insular area that complies with the requirement
under subsection (d) on the basis of the ratio of the
population of the insular area to the aggregate population of
all insular areas. In determining the distribution of amounts
to insular areas, the Secretary may also include other
statistical criteria as data become available from the Bureau
of Census of the Department of Labor, but only if such criteria
are set forth by regulation issued after notice and an
opportunity for comment.
``(d) Statement of Activities.--
``(1) Requirement.--Before receipt the receipt in any fiscal
year of a grant under subsection (c) by any grantee, the
grantee shall have prepared a final statement of housing energy
efficiency objectives and projected use of funds as the
Secretary shall require and shall have provided the Secretary
with such certifications regarding such objectives and use as
the Secretary may require. In the case of metropolitan cities,
urban counties, units of general local government, and insular
areas receiving grants, the statement of projected use of funds
shall consist of proposed housing energy efficiency activities.
In the case of States receiving grants, the statement of
projected use of funds shall consist of the method by which the
States will distribute funds to units of general local
government.
``(2) Public participation.--The Secretary may establish
requirements to ensure the public availability of information
regarding projected use of grant amounts and public
participation in determining such projected use.
``(e) Eligible Activities.--
``(1) Requirement.--Amounts from a grant under this section
may be used only to carry out activities for single-family or
multifamily housing that are designed to improve the energy
efficiency of the housing so that the housing complies with the
energy efficiency standards under section 4(a) of the Green
Resources for Energy Efficient Neighborhoods Act of 2010,
including such activities to provide energy for such housing
from renewable sources, such as wind, waves, solar, biomass,
and geothermal sources.
``(2) Preference for compliance beyond basic requirements.--
In selecting activities to be funded with amounts from a grant
under this section, a grantee shall give more preference to
activities based on the extent to which the activities will
result in compliance by the housing with the enhanced energy
efficiency and conservation standards, and the green building
standards, under section 4(b) of such Act.
``(f) Reports.--Each grantee of a grant under this section for a
fiscal year shall submit to the Secretary, at a time determined by the
Secretary, a performance and evaluation report concerning the use of
grant amounts, which shall contain an assessment by the grantee of the
relationship of such use to the objectives identified in the grantees
statement under subsection (d).
``(g) Applicability of CDBG Provisions.--Sections 109, 110, and 111
of the Housing and Community Development Act of 1974 (42 U.S.C. 5309,
5310, 5311) shall apply to assistance received under this section to
the same extent and in the same manner that such sections apply to
assistance received under title I of such Act.
``(h) Authorization of Appropriations.--There is authorized to be
appropriated for grants under this section $2,500,000,000 for fiscal
year 2010 and such sums as may be necessary for each fiscal year
thereafter.''.
SEC. 15. INCLUDING SUSTAINABLE DEVELOPMENT AND TRANSPORTATION
STRATEGIES IN COMPREHENSIVE HOUSING AFFORDABILITY
STRATEGIES.
Section 105(b) of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12705(b)) is amended--
(1) by striking ``and'' at the end of paragraph (19);
(2) by striking the period at the end of paragraph (20) and
inserting ``; and'';
(3) and by inserting after paragraph (20) the following new
paragraphs:
``(21) describe the jurisdiction's strategies to encourage
sustainable development for affordable housing, including
single-family and multifamily housing, as measured by--
``(A) greater energy efficiency and use of renewable
energy sources, including any strategies regarding
compliance with the energy efficiency standards under
section 4(a) of the Green Resources for Energy
Efficient Neighborhoods Act of 2010 and with the
enhanced energy efficiency and conservation standards,
and the green building standards, under section 4(b) of
such Act;
``(B) increased conservation, recycling, and reuse of
resources;
``(C) more effective use of existing infrastructure;
``(D) use of building materials and methods that are
healthier for residents of the housing, including use
of building materials that are free of added known
carcinogens that are classified as Group 1 Known
Carcinogens by the International Agency for Research on
Cancer; and
``(E) such other criteria as the Secretary
determines, in consultation with the Secretary of
Energy, the Secretary of Agriculture, and the
Administrator of the Environmental Protection Agency,
are in accordance with the purposes of this paragraph;
and
``(22) describe the jurisdiction's efforts to coordinate its
housing strategy with its transportation planning strategies to
ensure to the extent practicable that residents of affordable
housing have access to public transportation.''.
SEC. 16. GRANT PROGRAM TO INCREASE SUSTAINABLE LOW-INCOME COMMUNITY
DEVELOPMENT CAPACITY.
(a) In General.--The Secretary may make grants to nonprofit
organizations to use for any of the following purposes:
(1) Training, educating, supporting, or advising an eligible
community development organization or qualified youth service
and conservation corps in improving energy efficiency, resource
conservation and reuse, design strategies to maximize energy
efficiency, installing or constructing renewable energy
improvements (such as wind, wave, solar, biomass, and
geothermal energy sources), and effective use of existing
infrastructure in affordable housing and economic development
activities in low-income communities, taking into consideration
energy efficiency standards under section 4(a) of this Act and
with the enhanced energy efficiency and conservation standards,
and the green building standards, under section 4(b) of this
Act.
(2) Providing loans, grants, or predevelopment assistance to
eligible community development organizations or qualified youth
service and conservation corps to carry out energy efficiency
improvements that comply with the energy efficiency standards
under section 4(a) of this Act, resource conservation and
reuse, and effective use of existing infrastructure in
affordable housing and economic development activities in low-
income communities. In providing assistance under this
paragraph, the Secretary shall give more preference to
activities based on the extent to which the activities will
result in compliance with the enhanced energy efficiency and
conservation standards, and the green building standards, under
section 4(b) of this Act.
(3) Such other purposes as the Secretary determines are in
accordance with the purposes of this subsection.
(b) Application Requirement.--To be eligible for a grant under this
section, a nonprofit organization shall prepare and submit to the
Secretary an application at such time, in such manner, and containing
such information as the Secretary may require.
(c) Award of Contracts.--Contracts for architectural or engineering
services funded with amounts from grants made under this section shall
be awarded in accordance with chapter 11 of title 40, United States
Code (relating to selection of architects and engineers).
(d) Matching Requirement.--A grant made under this section may not
exceed the amount that the nonprofit organization receiving the grant
certifies, to the Secretary, will be provided (in cash or in-kind) from
nongovernmental sources to carry out the purposes for which the grant
is made.
(e) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) The term ``nonprofit organization'' has the meaning given
such term in section 104 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12704).
(2) The term ``eligible community development organization''
means--
(A) a unit of general local government (as defined in
section 104 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12704));
(B) a community housing development organization (as
defined in section 104 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12704));
(C) an Indian tribe or tribally designated housing
entity (as such terms are defined in section 4 of the
Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4103)); or
(D) a public housing agency, as such term is defined
in section 3(b) of the United States Housing Act of
1937 (42 U.S.C. 1437(b)).
(3) The term ``low-income community'' means a census tract in
which 50 percent or more of the households have an income which
is less than 80 percent of the greater of--
(A) the median gross income for such year for the
area in which such census tract is located; or
(B) the median gross income for such year for the
State in which such census tract is located.
(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary to carry out this section $10,000,000 for
each of fiscal years 2010 through 2014.
SEC. 17. HOPE VI GREEN DEVELOPMENTS REQUIREMENT.
(a) Mandatory Component.--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 new paragraph:
``(4) Green developments requirement.--
``(A) Requirement.--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) Green communities criteria.--All
residential construction under the proposed
plan complies with the national Green
Communities criteria for residential
construction and rehabilitation that provides
criteria for the design, development, and
operation of affordable housing, as such
criteria are in effect for purposes of this
paragraph pursuant to subparagraph (D) at the
date of the application for the grant, or any
substantially equivalent standard or standards
as determined by the Secretary, as follows:
``(I) The proposed plan shall comply
with all items of the national Green
Communities criteria for residential
construction and rehabilitation that
are identified as mandatory.
``(II) The proposed plan shall comply
with such other nonmandatory items of
such national Green Communities
criteria so as to result in a
cumulative number of points
attributable to such nonmandatory items
under such criteria of not less than--
``(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.
``(ii) Green buildings certification
system.--All 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 for purposes of this
paragraph pursuant to subparagraph (D) at the
time of the application for the grant.
``(B) Verification.--
``(i) In general.--The Secretary shall
verify, or provide for verification, sufficient
to ensure that each proposed revitalization
plan carried out with amounts from a grant
under this section complies with the
requirements under subparagraph (A) and that
the revitalization plan is carried out in
accordance with such requirements and plan.
``(ii) Timing.--In providing for such
verification, the Secretary shall establish
procedures to ensure such compliance with
respect to each grantee, and shall report to
the Congress with respect to the compliance of
each grantee, at each of the following times:
``(I) Not later than 6 months after
execution of the grant agreement under
this section for the grantee.
``(II) Upon completion of the
revitalization plan of the grantee.
``(C) Identification of green buildings rating
systems and levels.--
``(i) In general.--For purposes of this
paragraph, the Secretary 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. The identification of the
ratings systems and levels shall be based on
the criteria specified in clause (ii), shall
identify the highest levels the Secretary
determines are appropriate above the minimum
levels required under the systems selected.
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.
``(ii) Criteria.--In identifying the green
rating systems and levels, 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) 5-year evaluation.--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).
``(D) Applicability and updating of standards.--
``(i) Applicability.--Except as provided in
clause (ii) of this subparagraph, the national
Green Communities criteria and green building
rating systems and levels referred to in
clauses (i) and (ii) of subparagraph (A) that
are in effect for purposes of this paragraph
are such criteria and systems, and levels as in
existence upon the date of the enactment of the
Green Resources for Energy Efficient
Neighborhoods Act of 2010.
``(ii) Updating.--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, any standard or
standards that the Secretary has determined to
be substantially equivalent to such criteria,
and the green building ratings systems and
levels identified by the Secretary pursuant to
subparagraph (C).''.
(b) Selection Criteria; Graded Component.--Section 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 new
subparagraph:
``(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 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''.
SEC. 18. CONSIDERATION OF ENERGY EFFICIENCY IMPROVEMENTS IN APPRAISALS.
(a) Appraisals in Connection With Federally Related Transactions.--
(1) Requirement.--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
new paragraph:
``(2) that such appraisals be performed in accordance with
appraisal standards that require, in determining the value of a
property, consideration of any renewable energy sources for, or
energy efficiency or energy-conserving improvements or features
of, the property;''.
(2) Revision of appraisal standards.--Each Federal financial
institutions regulatory agency shall, in accordance with
sections 1107 and 1111 (12 U.S.C. 3336, 3340) and in
coordination with Federal officials, including the Secretary of
Energy, the Administrator of the Environmental Protection
Agency, and the Administrator of the General Services
Administration, 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)
of this subsection.
(b) Ensuring Consideration of Energy-efficient Features When Reaching
Conclusions of Market Value.--Section 1110 of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C.
3339), as amended by subsection (a) of this section, is further
amended--
(1) in paragraph (3) (as so redesignated by subsection
(a)(1)(B) of this section), by striking the period and
inserting ``; and''; and
(2) by inserting after such paragraph (3) the following:
``(4) that State-certified and licensed appraisers have
timely access, whenever practicable, to information from the
lender relevant to an appraisal of the energy and water
efficiency or conserving improvements or features of a
property, such as labels or ratings of buildings and installed
appliances, blueprints, construction costs, incentives
regarding energy- and water-efficient components and systems
installed in a property, and third-party verifications or
representations of energy and water efficiency performance of a
property, observing all financial privacy requirements adhered
to by certified and licensed appraisers, including section 501
of the Gramm-Leach-Bliley Act (15 U.S.C. 6801); unless the
property owner consents to the lender, an appraiser shall not
have access to the commercial of financial information of the
owner that is privileged or confidential.''.
(c) Transactions Requiring State Certified Appraisers.--Section 1113
of the Financial Institutions Reform, Recovery, and Enforcement Act of
1989 (12 U.S.C. 3342) is amended--
(1) in paragraph (1), by inserting before the semicolon the
following: ``or any real property with energy-efficiency or
energy-conserving improvements or features''; and
(2) in paragraph (2) by inserting after ``complexity'' the
following: ``(such as identifying and supporting the
contribution to market value of energy-efficiency or energy-
conserving improvements or features)''.
SEC. 19. HOUSING ASSISTANCE COUNCIL.
The Secretary shall require the Housing Assistance Council--
(1) to encourage each organization that receives loan
assistance from the Council with any amounts made available
from the Secretary to provide that any structures and buildings
developed or assisted under projects, programs, and activities
funded with such amounts complies with the energy efficiency
standards under section 4(a) of this Act; and
(2) to establish incentives to encourage each such
organization to provide that any such structures and buildings
comply with the energy efficiency and conservation standards,
and the green building standards, under section 4(b) of such
Act.
SEC. 20. RURAL HOUSING AND ECONOMIC DEVELOPMENT ASSISTANCE.
The Secretary shall--
(1) require 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 structures
and buildings developed or assisted under activities funded
with such amounts complies with the energy efficiency standards
under section 4(a) of this Act; and
(2) establish incentives to encourage each such tribe,
agency, organization, corporation, and other entity to provide
that any such structures and buildings comply with the enhanced
energy efficiency and conservation standards, and the green
building standards, under section 4(b) of such Act.
SEC. 21. LOANS TO STATES AND INDIAN TRIBES TO CARRY OUT RENEWABLE
ENERGY SOURCES ACTIVITIES.
(a) Establishment of Fund.--There is established in the Treasury of
the United States a fund, to be known as the ``Alternative Energy
Sources State Loan Fund''.
(b) Expenditures.--
(1) In general.--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
(c)(1).
(2) Administrative expenses.--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.
(c) Loans to States and Indian Tribes.--
(1) In general.--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) Eligibility.--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) Criteria for approval.--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 the energy efficiency
standards under section 4(a) of this Act; 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) Preference.--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) Maximum amount.--The aggregate outstanding principal
amount from loans under this subsection to any single State or
Indian tribe may not exceed $500,000,000.
(6) Loan terms.--Each loan under this subsection shall have a
term to maturity of not more than 10 years and shall bear
interest at annual rate, determined by the Secretary, that
shall not exceed 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) Loan repayment.--The Secretary shall require full
repayment of each loan made under this section.
(d) Investment of Amounts.--
(1) In general.--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 states.--Investments may be made
only in interest-bearing obligations of the United States.
(e) Reports.--
(1) Reports to secretary.--For each year during the term of a
loan made under subsection (c), 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) Report to congress.--Not later than September 30 of each
year that loans made under subsection (c) are outstanding, the
Secretary shall submit a report to the Congress describing the
total amount of such loans provided under subsection (c) to
each eligible State and Indian tribe during the fiscal year
ending on such date, and an evaluation on effectiveness of the
Fund.
(f) Authorization of Appropriations.--There is authorized to be
appropriated to the Fund $5,000,000,000.
(g) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Indian tribe.--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) State.--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.
SEC. 22. GAO REPORTS ON AVAILABILITY OF AFFORDABLE MORTGAGES.
(a) Study.--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) Reports.--The Comptroller General shall submit reports under this
subsection to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate that shall include--
(1) a detailed statement of the most recent findings pursuant
to subsection (a); and
(2) 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.
The first report under this subsection shall be submitted not later
than the expiration of the 3-year period beginning on the date of the
enactment of this Act and thereafter, the Comptroller General shall
submit a report pursuant to a joint request for such a report made by
the Chairman and Ranking Members of the Committee on Financial Services
of the House of Representatives and of the Committee on Banking,
Housing, and Urban Affairs of the Senate.
SEC. 23. PUBLIC HOUSING ENERGY COST REPORT.
(a) Collection of Information by HUD.--The Secretary of Housing and
Urban Development shall obtain from each public housing agency, by 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. 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) Report.--Not later than the expiration of the 12-month period
beginning on the date of the enactment of this Act, the Secretary of
Housing and Urban Development shall submit a report to the Congress
setting forth the information collected pursuant to subsection (a).
SEC. 24. INSURANCE COVERAGE FOR LOANS FOR FINANCING OF RENEWABLE ENERGY
SYSTEMS LEASED FOR RESIDENTIAL USE.
(a) Purposes.--The purposes of this section are--
(1) to encourage residential use of renewable energy systems
by minimizing up-front 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) Authority.--The Secretary of Housing and Urban Development may,
upon application by an authorized renewable energy lender and in
accordance with such terms and conditions as the Secretary may
prescribe, consistent with the purposes of this section, make
commitments to insure, and insure, loans made by such lenders to
homebuilders, renewable energy installers or manufacturers, public or
private corporations or partnerships, associations, trusts, or other
qualified persons or entities, to finance the acquisition of renewable
energy systems for lease to homeowners for use at their residences.
(c) Effective Date of Insurance.--Insurance provided pursuant to this
section for a loan shall become effective only upon the expiration of
the 5-year period beginning upon the original execution of a renewable
energy system lease (as such term is defined in subsection (o)) for the
renewable energy system.
(d) Limitation on Principal Amount.--
(1) Limitation.--The principal amount of the loan insured
under this section shall not exceed the residual value of the
renewable energy system.
(2) Residual value.--For purposes of this subsection--
(A) the residual value of a renewable energy system
shall be the amount that is equal to 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 renewable energy system
manufacturer's power output production warranty for the
system and the forecast of regional residential
electricity prices made by the Energy Information
Administration of the Department of Energy.
(e) Easement for Sale of Remaining Electricity.--The Secretary may
not insure a loan for financing of renewable energy systems under this
section unless the borrower under the loan ensures, 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 sufficient to provide for the sale
of remaining electricity production from the system to a wholesale or
retail electrical power grid.
(f) Discount or Prepayment.--To encourage utilization of renewable
energy systems, the Secretary shall ensure that a homebuilder's or
other investor's discount or prepayment of a homeowner's renewable
energy system lease shall not adversely affect that homeowner's
mortgage requirements.
(g) Eligibility of Lenders.--The Secretary may not insure a loan
under this section unless the lender making the loan--
(1)(A) is an institution that qualifies as a green banking
center pursuant to 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 and is approved by the Secretary as meeting
such qualifications.
(h) Certificate of Insurance.--Insurance of a loan under this section
shall be evidenced by a certificate of insurance coverage issued by the
Secretary to the lender under the loan. Such certificate shall set
forth the fair market value of the future revenue stream for each year
of the remaining life of the renewable energy system as determined in
accordance with subsection (d).
(i) Payment of Insurance.--
(1) In general.--The Secretary shall provide for the filing
of claims for insurance under this section and the payment of
such claims. A claim may be paid only upon a default under the
loan insured under this section and the assignment, transfer,
and delivery to the Secretary of all rights and interests
arising under the loan and all claims of the lender or the
assigns of the lender against the borrower or others arising
under the loan transaction.
(2) Lien.--Upon payment of a claim for insurance of a loan
under this section, the Secretary shall be granted a lien on
the underlying renewable energy system assets and any
associated revenue stream from use of that system, which shall
be superior to all other liens on such assets, and the residual
value of that system and the revenue stream shall be at least
equal to the unpaid balance of the loan amount covered by the
certificate of insurance. The Secretary shall be entitled to
any revenue generated by the renewable energy system from
selling electricity to the grid when an insurance claim has
been paid out.
(j) Assignment and Transferability of Insurance.--The holder of
insurance provided under this section may assign or transfer the
insurance in whole or in part, to another lender, subject to such
requirements as the Secretary may prescribe.
(k) Premiums and Charges.--
(1) Insurance fee.--The Secretary shall fix and collect
premiums for insurance of loans under this section, that shall
be paid by the qualified applicant 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
expenses and probable losses, including any costs (as such term
is defined in section 502 of the Federal Credit Reform Act of
1990 (2 U.S.C. 661a) of loan insurance under this section. In
no event may such premium exceed 3 percent of the principal
obligation of the loan being insured.
(2) Prohibition on other charges.--Except as provided in
paragraph (1), the Secretary may not assess any fees, including
user fees, insurance premiums, or charges in connection with
loan insurance provided under this section.
(l) Full Faith and Credit.--The certificate of insurance issued by
the Secretary under this section shall be backed by the full faith and
credit of the United States of America.
(m) Regulations.--The Secretary shall issue such regulations as may
be necessary to carry out this section. The Secretary shall issue final
or interim final regulations not later than the expiration of the 180-
day period beginning on the date of the enactment of this Act.
(n) Ineligibility for Purchase by Federal Financing Bank.--
Notwithstanding the provisions of the Federal Financing Bank Act of
1973 (12 U.S.C. 2281 et seq.) or 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 provisions of such Act.
(o) Definitions.--For purposes of this section, the following
definitions apply:
(1) Renewable energy system lease.--The term ``renewable
system energy lease'' means an agreement between a qualified
investor in a renewable energy system and a homeowner pursuant
to which the homeowner grants an easement to the investor to
install, maintain, use, and otherwise access the renewable
energy system and leases the use of that system from the
qualified investor for a specified term.
(2) Renewable energy system.--The term ``renewable energy
system'' means a system that generates energy from naturally
replenished energy sources such as sunlight, wind, rain, tides
or geothermal heat.
(3) Renewable energy manufacturer.--The term ``renewable
energy manufacturer'' means a manufacturer of renewable energy
systems.
SEC. 25. GREEN GUARANTEES.
(a) Authority To Guarantee ``Green Portion'' of Eligible Mortgages.--
(1) In general.--The Secretary of Housing and Urban
Development may make commitments to guarantee under this
section and may guarantee, the repayment of the portions of the
principal obligations of eligible mortgages that are used to
finance eligible sustainable building elements for the housing
that is subject to the mortgage.
(2) Amount of guarantee.--A guarantee under this section by
the Secretary in connection with an eligible mortgage shall not
exceed a percentage of the green portion (as such term is
defined in subsection (g)) of the mortgage, as shall be
established by the Secretary and may be established on a
regional basis as the Secretary determines appropriate.
(b) Eligible Mortgages.--To be considered an eligible mortgage for
purposes of this section, a mortgage shall comply with all of the
following requirements:
(1) Acquisition or construction of housing.--The mortgage
shall be made for the acquisition or construction of single- or
multifamily housing and repayment of the mortgage shall be
secured by an interest in such housing.
(2) Financing of eligible sustainable building elements
through green portion of mortgage.--A portion of the principal
obligation of the mortgage, which meets the requirements under
subsection (c), shall be used only for financing the provision
of eligible sustainable building elements for the housing for
which the mortgage was made.
(3) Maximum mortgage amount.--The principal obligation of the
mortgage (including the eligible portion of such mortgage, and
such initial service charges, appraisal, inspection, and other
fees as the Secretary shall approve) may not exceed the
following amounts:
(A) Single-family housing.--Such dollar amounts for
single-family housing as the Secretary shall establish,
which may be established on the basis of the number of
dwelling units in the housing, as the Secretary
considers appropriate.
(B) Multifamily housing.--Such dollar amounts for
multifamily housing as the Secretary shall establish,
which may be established on the basis of the number of
dwelling units in the housing and the number of
bedrooms in such dwelling units, as the Secretary
considers appropriate.
(4) Repayment.--The mortgage meets such requirements as the
Secretary shall establish to ensure that there is a reasonable
prospect of repayment of the principal and interest on the
obligation by the mortgagor.
(5) Mortgage terms.--The mortgage shall meet such
requirements with respect to loan-to-value ratio, mortgagor
credit scores, debt-to-income ratio, and other underwriting
standards, term to maturity, interest rates and amortization,
including amortization of the green portion of the mortgage,
and other mortgage terms as the Secretary shall establish.
(c) Limitations on Green Portion of Mortgage.--The requirements under
this subsection with respect to the green portion of an eligible
mortgage are as follows:
(1) Percentage limitation.--Such portion shall not exceed, in
the case of single-family or multifamily housing, 10 percent of
the total principal obligation of the mortgage.
(2) Dollar amount limitation.--Such portion shall not
exceed--
(A) in the case of single-family housing, such
maximum dollar amount limitation as the Secretary shall
establish, which may be established on the basis of the
number of dwelling units in the housing, as the
Secretary considers appropriate; and
(B) in the case of multifamily housing, such maximum
dollar amount limitation as the Secretary shall
establish, which limitation may be established on the
basis of the number of dwelling units in the housing
and the number of bedrooms in such dwelling units, as
the Secretary considers appropriate.
(3) Cost-effectiveness limitation.--Such portion shall not
exceed the total present value of the savings (as determined in
accordance with subsection (d)) attributable to the
incorporation of the eligible sustainable building elements to
be financed with the green portion of the mortgage that are to
be realized over the useful life of such elements.
(d) Eligible Sustainable Building Elements.--The Secretary may not
guarantee any eligible mortgage under this section unless the mortgagor
has demonstrated, in accordance with such requirements as the Secretary
shall establish, the amount of savings attributable to incorporation of
the sustainable building elements to be financed with the green portion
of the mortgage, as measured by the National Green Building Standard
for all residential construction developed by the National Association
of Home Builders and the U.S. Green Building Council, and approved by
the American National Standards Institute, as updated and in effect at
the time of such demonstration.
(e) Guarantee Fee.--
(1) Assessment and collection.--The Secretary shall assess
and collect fees for guarantees under this section in amounts
that the Secretary determines are sufficient to cover the costs
(as such term is defined in section 502 of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a)) of such guarantees.
(2) Availability.--Fees collected under this subsection shall
be deposited by the Secretary in the Treasury of the United
States and shall remain available until expended, subject to
such other conditions as are contained in annual appropriations
Acts.
(f) Payment of Guarantee.--
(1) Default.--
(A) Right to payment.--If a mortgagor under a
mortgage guaranteed under this section defaults (as
defined in regulations issued by the Secretary and
specified in the guarantee contract) on the obligation
under the mortgage--
(i) the holder of the guarantee shall have
the right to demand payment of the unpaid
amount of the guaranteed portion of the
mortgage, to the extent provided under
subsection (a)(2), from the Secretary; and
(ii) within such period as may be specified
in the guarantee or related agreements, the
Secretary shall pay to the holder of the
guarantee, to the extent provided under
subsection (a)(2), the unpaid interest on, and
unpaid principal of the portion of guaranteed
portion of the mortgage with respect to which
the borrower has defaulted, unless the
Secretary finds that there was no default by
the borrower in the payment of interest or
principal or that the default has been
remedied.
(B) Forbearance.--Nothing in this paragraph precludes
any forbearance by the holder of an eligible mortgage
for the benefit of the mortgagor which may be agreed
upon by the parties to the mortgage and approved by the
Secretary.
(2) Subrogation.--
(A) In general.--If the Secretary makes a payment
under paragraph (1), the Secretary shall be subrogated
to the extent of such payment to the rights of the
recipient of the payment as specified in the guarantee
or related agreements including, if appropriate, the
authority (notwithstanding any other provision of
law)--
(i) to complete, maintain, operate, lease, or
otherwise dispose of any property acquired
pursuant to such guarantee or related
agreements; or
(ii) to permit the mortgagor, pursuant to an
agreement with the Secretary, to continue to
occupy the property subject to the mortgage, if
the Secretary determines such occupancy to be
appropriate.
(B) Allocation of rights and responsibilities.--In
the event of a payment under paragraph (1), the rights
of the Secretary, with respect to any property acquired
pursuant to a guarantee or related agreements, shall be
superior to the rights of any other person with respect
to the property, except that as long as amounts remain
due to the recipient of the payment under the terms of
the eligible mortgage and as long as the recipient
diligently pursues collection of all amounts due under
the eligible mortgage, all decisions with respect to
the eligible mortgage, including efforts to collect the
unpaid amounts, shall be made by the recipient,
Provided, That any amounts collected by the recipient
less reasonable out-of-pocket costs of collection shall
be shared with the Secretary in the same ratio as the
guaranteed portion bears to the original principal
amount of the eligible mortgage.
(C) Terms and conditions.--A guarantee agreement
shall include such detailed terms and conditions as the
Secretary determines appropriate to protect the
interests of the United States in the case of default.
(3) Full faith and credit.--The full faith and credit of the
United States is pledged to the payment of all guarantees
issued under this section with respect to principal and
interest.
(g) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Eligible mortgage.--The term ``eligible mortgage'' means
a mortgage that meets the requirements under subsection (b).
(2) Green portion.--The term ``green portion'' means, with
respect to an eligible mortgage, the portion of the mortgage
principal referred to in subsection (b)(2) that is
attributable, as determined in accordance with regulations
issued by the Secretary, to the increased costs incurred in
financing provision of sustainable building elements for the
housing for which the mortgage was made, as compared to the
costs that would have been incurred in financing the provision
of other building elements for the housing for the same
purposes that are commonly or conventionally used but are not
sustainable building elements.
(3) Guaranteed portion.--The term ``guaranteed portion''
means, with respect to an eligible mortgage guaranteed under
this section, the green portion of the mortgage that is so
guaranteed.
(4) Mortgage.--The term ``mortgage'' has the meaning given
such term in section 201 of the National Housing Act (12 U.S.C.
1707).
(5) Multifamily housing.--The term ``multifamily housing''
means a residential property consisting of five or more
dwelling units.
(6) Secretary.--The term ``Secretary'' means the Secretary of
Housing and Urban Development.
(7) Single-family housing.--The term ``single-family
housing'' means a residential property consisting of one to
four dwelling units.
(8) Sustainable building element.--The term ``sustainable
building element'' means such building elements, as the
Secretary shall define, that have energy efficiency or
environmental sustainability qualities that are superior to
such qualities for other building elements for the same
purposes that are commonly or conventionally used.
(h) Authorization of Appropriations.--There is authorized to be
appropriated for costs (as such term is defined in section 502 of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661a) of guarantees under
this section $500,000,000 for each of fiscal years 2010 through 2014.
(i) Regulations.--The Secretary shall issue any regulations necessary
to carry out this section.
SEC. 26. GREEN DIVIDEND PROGRAM FOR FEDERALLY ASSISTED RENTAL HOUSING.
(a) Authority.--The Secretary shall establish a program under this
section to provide green dividends to owners of covered federally
assisted housing projects who undertake utility cost-saving measures
that result in utility cost savings for such housing.
(b) Green Dividends.--
(1) In general.--A green dividend under this section with
respect to a covered federally assisted housing project shall
be an annual distribution, to the owner of the project, of an
amount of the surplus project funds that is equal to the sum
of--
(A) 50 percent of the annual utility cost savings
resulting from the utility cost-saving measures
conducted for the project; and
(B) any reasonable costs, as determined by the
Secretary pursuant to subsection (d)(4), incurred by
the owner in carrying out the utility cost-saving
measures, including required reporting and monitoring
costs and financing costs incurred by the owner or a
third party, in compliance with guidelines established
pursuant to subsection (d)(3).
(2) Additional to standard distribution.--Notwithstanding any
other law or regulation relating to a limitation on
distributions for a covered federally assisted housing project,
a green dividend under this section shall be in addition to the
standard distribution that the owner of the project is
authorized to receive from the project pursuant to the
regulations of the Secretary.
(c) Standards for Measurement and Monitoring.--In carrying out the
program under this section, the Secretary shall establish and utilize
the following standardized methods:
(1) Methods that an owner of a covered federally assisted
housing project may use to accurately measure the baseline
utility use of the project before undertaking the utility cost-
saving measures for the project.
(2) Methods that an owner of a covered federally assisted
housing project may use to effectively monitor reductions in
the utility use of the project resulting from the completed
utility cost-saving measures for the project.
(3) Methods that an owner of a covered federally assisted
housing project may use to track, and that the Secretary may
use to verify, utility cost savings resulting from the utility
cost-saving measures for the project that account for the
effect of changes in utility costs and such other factors that
the Secretary considers necessary or appropriate.
(d) Other Requirements.--
(1) Application and selection.--The Secretary shall establish
requirements for owners of covered federally assisted housing
projects to apply for participation in the program under this
section and shall select among such applications based upon
selection criteria, which the Secretary shall establish.
(2) Cost-effectiveness.--The Secretary shall establish
guidelines to ensure that any utility cost-saving measures
undertaken pursuant to the program under this section are cost-
effective in relation to the utility cost savings resulting
from the measures and the green dividend provided under this
section to the owner.
(3) Energy performance contracts.--The Secretary shall
establish guidelines for the use of energy performance
contracting in carrying out utility cost-saving measures
pursuant to the program under this section.
(4) Financing costs.--The Secretary shall establish
guidelines for the financing of the reasonable costs incurred
by an owner of a covered federally assisted housing project in
carrying out utility cost-saving measures under the program
under this section, and whether such costs, whether financed by
the limited dividend owner or a third party, shall be repayable
from project funds.
(5) Reporting.--
(A) To secretary.--The Secretary shall require each
owner of a covered federally assisted housing project
for which a green dividend is provided pursuant to the
program under this section to submit to the Secretary
such reports regarding the project, the utility cost-
saving measures undertaken for the project, and the
utility cost savings of the project in accordance with
such requirements as the Secretary shall establish.
(B) To congress.--The Secretary shall submit reports
to the Congress describing the implementation and
operation of the program under this section, as
follows:
(i) Initial report.--The Secretary shall
submit reports describing the initial
implementation and operation of the program not
later than the expiration of the 180-day period
beginning upon the date of the enactment of
this Act.
(ii) Annual reports.--Not later than the
expiration of the 12-month period that begins
upon the expiration of the period specified
clause (i), and upon the expiration of each
successive 12-month period thereafter, the
Secretary shall submit a report describing the
ongoing operation of the program.
(e) Preemption of Conflicting State Laws Limiting Distributions.--
(1) In general.--Except as provided in paragraph (2), no
State or political subdivision of a State may establish,
continue in effect, or enforce any law, regulation, or
administrative requirement that limits or restricts, to an
amount that is less than the sum of the amounts provided for
under paragraphs (1) and (2) of subsection (b), the amount of
surplus project funds accruing after the date of the enactment
of this section that may be distributed from any covered
federally assisted housing project.
(2) Exception and waiver.--Paragraph (1) shall not apply to
any law or regulation to the extent such law or regulation
applies to--
(A) a State-financed covered federally assisted
housing project; or
(B) a covered federally assisted housing project for
which the owner has elected to waive the applicability
of paragraph (1).
(f) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Covered federally assisted housing project.--The term
``covered federally assisted housing project'' means any
multifamily rental housing project that--
(A) is provided any rental assistance, subsidy, or
other financial assistance by the Secretary; and
(B) that is subject to a limitation on distributions
to the owner, whether for-profit or non-for-profit, of
project funds under section 200.106(a), 236.1(c),
880.205(a) or (b), 881.205(a) or (b), or 883.306(a) or
(b) of title 24 of the Code of Federal Regulations, or
any other statute or regulation applicable to the
project.
(2) Secretary.--The term ``Secretary'' means the Secretary of
Housing and Urban Development.
(3) Surplus project funds.--The term ``surplus project
funds'' means, with respect to a covered federally assisted
housing project, the net revenue of the project after all
project expenses have been paid, or funds have been set aside
for the payment thereof, and any reserve requirements
applicable to the project have been met.
(4) Utility cost savings.--The term ``utility cost savings''
means, with respect to utility cost-saving measures undertaken
for a covered federally assisted housing project, the
difference between--
(A) the energy or water costs that would have been
incurred for the project if such utility cost-saving
measures were not completed; and
(B) the actual energy or water costs for the project
after completion of the utility cost-saving measures.
(5) Utility cost-saving measures.--The term ``utility cost-
saving measures'' means, with respect to a covered federally
assisted housing project, any rehabilitation, renovation,
retrofit, improvement, or alteration for the project that
incorporates any technology, equipment, fixture, or material,
or promotes any practice, designed to reduce the energy or
water consumption of the project. Such measures shall utilize
Energy Star or WaterSense rated products or devices at a
minimum. In cases in which there is no Energy Star or
WaterSense designated product or device, the Secretary shall
designate the minimum standards.
(g) Regulations.--Not later than the expiration of the 180-day period
beginning on the date of the enactment of this Act, the Secretary shall
issue any regulations necessary to carry out this section.
SEC. 27. USE OF RESIDUAL RECEIPTS AND RESERVE FOR REPLACEMENTS FUNDS
FOR GREEN RETROFITS OF FEDERALLY ASSISTED RENTAL
HOUSING.
The Secretary of Housing and Urban Development shall--
(1) review the regulations and agreements of the Department
of Housing and Urban Development concerning residual receipts
accounts in federally assisted rental housing that is subject
to a limitation on distributions, to the owner, of project
funds under section 200.106(a), 236.1(c), 880.205, 881.205, or
883.306 of title 24 of the Code of Federal Regulations, or any
other statute or regulation applicable to the project, to
clarify whether the use of such funds for other project
purposes includes activities related to the energy efficiency
at properties with such residual receipts accounts; and
(2) revise its policies with regard to the use of reserve for
replacement funds to encourage the use of such reserves, where
practical, for energy efficiency items.
SEC. 28. STUDY ON BUILDING CODES EFFECTS ON CONSTRUCTION AND
INSTALLATION OF DISTRIBUTIVE ENERGY GENERATION
MEASURES AND WATER EFFICIENCY MEASURES.
(a) Study.--The Comptroller General of the United States shall
conduct a study to analyze to what extent provisions of State and local
building codes create obstacles or otherwise conflict with efforts to
enable and encourage the construction and installation in such projects
of distributive energy generation measures and water efficiency
measures.
(b) Provision of Information to Energy Information Administration.--
The Comptroller General shall provide any information collected in
conducting the study under this section to the Secretary of Energy to
supplement information collected and maintained by the Energy
Information Administration of the Department of Energy regarding
residential energy consumption.
(c) Report.--Not later than the expiration of the 6-month period
beginning on the date of the enactment of this Act, the Comptroller
General shall submit a report to the Congress and to the Secretary of
Energy setting forth the results and conclusions of the study under
this section.
SEC. 29. COMMUNITY BUILDING CODE ADMINISTRATION GRANTS.
(a) Short Title.--This section may be cited as the ``Community
Building Code Administration Grant Act of 2009''.
(b) Grant Program Authorized.--
(1) Grant authorization.--The Secretary of Housing and Urban
Development shall, to the extent amounts are made available for
grants under this section, provide grants to local building
code enforcement departments.
(2) Competitive awards.--The Secretary shall award grants
under paragraph (1) on a competitive basis pursuant to the
criteria set forth in subsection (f), but also taking into
consideration the following:
(A) The financial need of each building code
enforcement department.
(B) The benefit to the jurisdiction of having an
adequately funded building code enforcement department.
(C) The demonstrated ability of each building code
enforcement department to work cooperatively with other
local code enforcement offices, health departments, and
local prosecutorial agencies.
(3) Maximum amount.--The maximum amount of any grant awarded
under this subsection shall not exceed $1,000,000.
(c) Required Elements in Grant Proposals.--In order to be eligible
for a grant under subsection (b), a building code enforcement
department of a jurisdiction shall submit to the Secretary the
following:
(1) A demonstration of the jurisdiction's needs in executing
building code enforcement administration.
(2) A plan for the use of any funds received from a grant
under this section that addresses the needs discussed in
paragraph (1) and that is consistent with the authorized uses
established in subsection (d).
(3) A plan for local governmental actions to be taken to
establish and sustain local building code enforcement
administration functions, without continuing Federal support,
at a level at least equivalent to that proposed in the grant
application.
(4) A plan to create and maintain a program of public
outreach that includes a regularly updated and readily
accessible means of public communication, interaction, and
reporting regarding the services and work of the building code
enforcement department to be supported by the grant.
(5) A plan for ensuring the timely and effective
administrative enforcement of building safety and fire
prevention violations.
(d) Use of Funds; Matching Funds.--
(1) Authorized uses.--Amounts from grants awarded under
subsection (b) may be used by the grant recipient to supplement
existing State or local funding for administration of building
code enforcement. Such amounts may be used to increase
staffing, provide staff training, increase staff competence and
professional qualifications, or support individual
certification or departmental accreditation, or for capital
expenditures specifically dedicated to the administration of
the building code enforcement department.
(2) Additional requirement.--Each building code enforcement
department receiving a grant under subsection (b) shall empanel
a code administration and enforcement team consisting of at
least 1 full-time building code enforcement officer, a city
planner, and a health planner or similar officer.
(3) Matching funds required.--
(A) In general.--To be eligible to receive a grant
under this section, a building code enforcement
department shall provide matching, non-Federal funds in
the following amount:
(i) In the case of a building code
enforcement department serving an area with a
population of more than 50,000, an amount equal
to not less than 50 percent of the total amount
of any grant to be awarded under this section.
(ii) In the case of a building code
enforcement department serving an area with a
population of between 20,001 and 50,000, an
amount equal to not less than 25 percent of the
total amount of any grant to be awarded under
this section
(iii) In the case of a building code
enforcement department serving an area with a
population of less than 20,000, an amount equal
to not less than 12.5 percent of the total
amount of any grant to be awarded under this
section.
(B) Economic distress.--
(i) In general.--The Secretary may waive the
matching fund requirements under subparagraph
(A), and institute, by regulation, new matching
fund requirements based upon the level of
economic distress of the jurisdiction in which
the local building code enforcement department
seeking such grant is located.
(ii) Content of regulations.--Any regulations
instituted under clause (i) shall include--
(I) a method that allows for a
comparison of the degree of economic
distress among the local jurisdictions
of grant applicants, as measured by the
differences in the extent of growth
lag, the extent of poverty, and the
adjusted age of housing in such
jurisdiction; and
(II) any other factor determined to
be relevant by the Secretary in
assessing the comparative degree of
economic distress among such
jurisdictions.
(4) In-kind contributions.--In determining the non-Federal
share required to be provided under paragraph (3), the
Secretary shall consider in-kind contributions, not to exceed
50 percent of the amount that the department contributes in
non-Federal funds.
(5) Waiver of matching requirement.--The Secretary shall
waive the matching fund requirements under paragraph (3) for
any recipient jurisdiction that has dedicated all building code
permitting fees to the conduct of local building code
enforcement.
(e) Rating and Ranking of Applications.--Eligible applications will
be rated and ranked according to the criteria under subsection (f). All
complete applications shall be compared to one another and points shall
be assigned on a continuum within each criteria with the maximum points
awarded to the application that best meets the criteria.
(f) Criteria.--The criteria under this subsection are as follows:
(1) Need and community benefit from code enforcement grant
funds.--The degree to which the application demonstrates the
intent and means to ensure cooperative and effective working
relationships between local building code enforcement officials
and other local agencies, as well as a community-oriented
approach to building code enforcement, with points awarded as
follows:
----------------------------------------------------------------------------------------------------------------
Description Maximum Points
----------------------------------------------------------------------------------------------------------------
A detailed description of the capital expenditures to be acquired with 0-10
grant funds and a demonstration that the items' costs are reasonable.
The jurisdiction's need for the capital expenditure and how the grant 0-10
funds will fulfill this need.
The joint benefits provided by the proposed expenditure for the 0-5
following groups or activities. Provide a brief explanation of the
benefit. (1 point will be awarded for each response, 5 points maximum).
1. Code enforcement program.
2. Community or jurisdiction.
3. Interdisciplinary code enforcement team.
4. Housing preservation, rehabilitation programs, or neighborhood
improvement programs.
5. Special needs groups (disabled, elderly or low or very-low income,
etc.).
Does the proposed capital expenditure provide a cost savings benefit to 0-5.
the jurisdiction? Provide a brief explanation of the cost savings.
----------------------------------------------------------------------------------------------------------------
(2) Current code enforcement and housing conservation plan.--
Whether the local legislative body in which the applicant
resides has adopted a plan that addresses residential structure
conservation and building code enforcement. Points shall be
awarded, based on which of the descriptions from the following
list best reflects such jurisdiction's plan for building code
enforcement activities, as follows:
----------------------------------------------------------------------------------------------------------------
Description Maximum Points
----------------------------------------------------------------------------------------------------------------
The plan provides for proactive code enforcement (not just responding to 10
complaints), an interdisciplinary approach, and includes funding
options for repairs and rehabilitation.
The plan only provides for proactive code enforcement (not just 8
responding to complaints) and calls for an interdisciplinary approach
and does not address funding options for repairs and rehabilitation.
The plan provides for some type of proactive code enforcement (other 6
than just responding to complaints) but doesn't address coordinated
interdisciplinary activities with other local public agencies or
funding options.
The plan provides for only reactive code enforcement. 4
The plan only refers to a need to preserve and/or improve existing 2
housing stock, without any code enforcement program.
No existing plan. 0.
----------------------------------------------------------------------------------------------------------------
(3) Community-oriented or interdisciplinary code
enforcement.--The degree to which the application demonstrates
the intent and means to ensure cooperative and effective
working relationships between building code enforcement
officials and other local agencies, as well as a community-
oriented approach to code enforcement, with points awarded as
follows:
----------------------------------------------------------------------------------------------------------------
Description Maximum Points
----------------------------------------------------------------------------------------------------------------
Identify current or proposed interdisciplinary code enforcement programs 0-10
or activities and the team members (example: code enforcement, police,
local prosecutors, health department, building and planning, fire,
etc.). Provide a description of the team's code enforcement and
coordination procedures, activities and services provided. If the
current programs or resources are limited in scope, explain how receipt
of the grant will be used to improve the program.
Identify current or proposed community-oriented code enforcement 0-10.
programs, activities, or services. (Examples: community clean-ups,
Neighborhood Watch programs, community meetings, door-to-door code
enforcement knock and talks, etc.). If the current programs or
resources are limited in scope, explain how receipt of the grant will
be used to improve the program.
----------------------------------------------------------------------------------------------------------------
(4) Proactive code enforcement activities.--The effectiveness
of the proposed or existing proactive activities and programs
operated by any existing building code enforcement program,
which shall include points awarded as follows for any such
activities or programs:
----------------------------------------------------------------------------------------------------------------
Description Maximum Points
----------------------------------------------------------------------------------------------------------------
Encourages repairs and preservation, rather than demolition or 0-5
abandonment, of substandard residences.
Abatement of (a) lead hazards and lead-based paints, (b) toxic molds and 0-5
dampness, and (c) displacement or relocation of residents.
Community clean-up campaigns. This may include recycling dates, free or 0-5
reduced disposal rates at dumpsite, public clean-up days that encourage
removal of unwanted or excess debris by making available extra trash
pick-ups, dumpsites or trash/recycling containers on specific dates to
dispose of household debris, inoperable vehicles, tires, toxic
materials, etc.
Resource or referral programs for Federal, State, local, and private 0-5
funds and other resources available in your jurisdiction that can
assist with housing rehabilitation and repairs to rectify code
violations.
Public education programs on housing issues. These could include 0-5
community housing meetings dealing with homeownership, tenant/landlord
issues, housing code enforcement, school age children's programs with
coloring books or handouts, housing safety pamphlets, etc.
Programs that encourage community involvement with groups; such as 0-5.
schools, church nonprofits, community service groups, utility
companies, local stores, housing agency banks, etc.
----------------------------------------------------------------------------------------------------------------
(5) Capacity to financially and technically support proposed
capital expenditures.--The degree to which the application
demonstrates the jurisdiction's financial and technical
capacity to properly use and successfully support the proposed
capital expenditure during the term of the grant, with points
awarded as follows:
----------------------------------------------------------------------------------------------------------------
Description Maximum Points
----------------------------------------------------------------------------------------------------------------
The anticipated ongoing program funding for the duration of the grant 0-5
program is adequate to financially support the use of the grant-
financed equipment. Include details of funding and technical support
sources for the capital expenditure (examples: insurance, paper,
maintenance, training, supplies, personnel, monthly billing costs,
etc.).
The jurisdiction has the technical capabilities to use and support 0-5.
equipment (examples: adequately trained staff or resources to provide
training to operate technical equipment, local service provider for
cell phones or 2-way radios, trained personnel to operate equipment,
etc.).
----------------------------------------------------------------------------------------------------------------
(g) Evaluation and Report.--
(1) In general.--Grant recipients shall--
(A) be obligated to fully account and report for the
use of all grants funds; and
(B) provide a report to the Secretary on the
effectiveness of the program undertaken by the grantee
and any other criteria requested by the Secretary for
the purpose of indicating the effectiveness of, and
ideas for, refinement of the grant program.
(2) Report.--The report required under paragraph (1)(B) shall
include a discussion of--
(A) the specific capabilities and functions in local
building code enforcement administration that were
addressed using funds received under this section;
(B) the lessons learned in carrying out the plans
supported by the grant; and
(C) the manner in which the programs supported by the
grant are to be maintained by the grantee.
(3) Content of reports.--The Secretary shall--
(A) require each recipient of a grant under this
section to file interim and final reports under
paragraph (2) to ensure that grant funds are being used
as intended and to measure the effectiveness and
benefits of the grant program; and
(B) develop and maintain a means whereby the public
can access such reports, at no cost, via the Internet.
(h) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Building code enforcement.--The term ``building code
enforcement'' means the enforcement of any code, adopted by a
State or local government, that regulates the construction of
buildings and facilities to mitigate hazards to life or
property. Such term includes building codes, electrical codes,
energy codes, fire codes, fuel gas codes, mechanical codes, and
plumbing codes.
(2) Building code enforcement department.--The term
``building code enforcement department'' means an inspection or
enforcement agency of a jurisdiction that is responsible for
conducting building code enforcement.
(3) Jurisdiction.--The term ``jurisdiction'' means a city,
county, parish, city and county authority, or city and parish
authority having local authority to enforce building codes and
regulations and to collect fees for building permits.
(4) Secretary.--The term ``Secretary'' means the Secretary of
Housing and Urban Development.
(i) Authorization of Appropriations.--
(1) In general.--There are authorized to be appropriated
$20,000,000 for each of fiscal years 2010 through 2014 to the
Secretary of Housing and Urban Development to carry out the
provisions of this section.
(2) Reservation.--From the amount made available under
paragraph (1), the Secretary may reserve not more than 5
percent for administrative costs.
(3) Availability.--Any funds appropriated pursuant to
paragraph (1) shall remain available until expended.
Purpose and Summary
The purpose of H.R. 2336, the ``Green Resources for Energy
Efficient Neighborhoods Act of 2010'' or the ``GREEN Act'' is
to reduce the harmful effects that buildings have on the
environment by encouraging energy-efficiency and conservation
and the development and installation of renewable energy
sources for housing and commercial buildings, thereby creating
sustainable communities. The GREEN Act also is designed to
improve the energy efficiency of buildings within very low, low
and moderate income communities, which will lower the utility
costs and negative health factors affecting single and multi-
family dwellings.
Background and Need for Legislation
Efforts to promote energy-efficiency have taken on new
urgency in light of escalating demand for energy and rising
fuel costs. According to the Department of Energy (DOE), the
building sector is responsible for 39 percent of total U.S.
carbon dioxide emissions. Furthermore, both the DOE and the
U.S. Environmental Protection Agency (EPA) have stated that
improving energy efficiency in our homes, businesses, schools,
governments, and industries, which together consume more than
70 percent of the natural gas and electricity used in the
country, is one of the most constructive, cost-effective ways
to address the challenges of high energy prices, energy
security and independence, air pollution, and global climate
change. Analysis by both the DOE and EPA has concluded that
increased investment in energy efficiency in homes, buildings,
and industries can lower energy bills, reduce demand for fossil
fuels, help stabilize energy prices, enhance electric and
natural gas system reliability, and help reduce air pollutants
and greenhouse gases.
A joint five-year initiative carried out by the United
States Department of Housing and Urban Development (HUD) and
DOE concluded that significant energy and cost savings for both
residents and the Federal Government can be realized by
improving the energy efficiency of public and assisted housing.
It also found that alternative sources of financial assistance
for energy improvements were shown to be available, helping to
refute the perception that energy-efficient housing is
expensive. The findings indicated that energy efficiency is a
key element in assuring the creation and maintenance of truly
affordable housing for low- and moderate-income households.
Moreover, in testimony before the Subcommittee on Housing
and Community Opportunity on the GREEN Act last year, HUD
Deputy Secretary Ron Sims stated that HUD's own budget is
directly affected by utility costs. Deputy Secretary Sims noted
that HUD spends an estimated $5 billion on energy, either
directly in the form of public housing operating subsidies or
indirectly through utility allowances and Section 8 contracts
in assisted multifamily housing, adding that this is an area
where significant cost savings are possible, freeing revenue
for other important capital investments or rental assistance
needs. He gave the example that achieving a savings of just 5
percent per year could generate a savings of $1 billion over
the next 5 years.
Analysis by HUD on the cost of utilities in public and
federally-assisted housing further demonstrates the value and
cost savings that can be achieved through energy efficiency
activities. In public housing, HUD data shows that the overall
cost of utilities (including water and sewer charges) in 2006
totaled $1.85 billion, including an estimated $421 million that
was spent through utility allowances on tenant-paid utilities.
In federally-assisted housing, utility costs have also
increased. According to HUD data, average owner-paid per-unit
utility costs increased by 28 percent between 2000 and 2005.
Furthermore, HUD spent an estimated $3.2 billion on project-
and tenant-based utility allowances in 2007. The average
tenant-based Section 8 utility allowance is now $1,467 per
year.
Congress has taken a number of steps in recent years to
promote energy efficiency and lower utility costs for HUD
rental assistance housing programs. In 2007, Congress approved
the Energy Independence and Security Act of 2007, which was
signed into law (P.L. 110-140) by the President on December 19,
2007. That Act required the Department of Housing and Urban
Development to update energy efficiency standards for all
public and assisted housing. More recently, Congress passed the
American Recovery and Reinvestment Act of 2009, which was
signed into law (P.L. 111-5) by the President on February 17,
2009. That Act established a $250 million competitive grant/
loan program to provide incentives to owners of multi-family
housing to undertake energy efficiency retrofits.
The GREEN Act builds on these laws by establishing programs
within HUD and the Rural Housing Service (RHS) of the United
States Department of Agriculture, that are designed to make
residences energy efficient to the 2009 International Energy
Conservation Code (IECC), which contains energy efficiency
criteria for residential and commercial buildings and additions
to existing buildings. The bill also provides HUD and RHS, as
well as state, tribal and local governments, with additional
tools and incentives to undertake important energy efficiency
activities, reduce utility costs, and create jobs. Indeed, a
study by the American Institute of Architects estimates that
the bill will save or create approximately 140,000 jobs per
year.
Following are some of the ways the GREEN Act seeks to
promote energy efficiency, reduce utility costs and create
jobs:
ENERGY EFFICIENCY AND CONSERVATION DEMONSTRATION PROGRAMS
The GREEN Act authorizes the establishment of an energy
efficiency and conservation demonstration program for multi-
family housing projects assisted with project-based rental
assistance. The demonstration program would be conducted by HUD
over a four-year period, and would include no less than 50,000
multi-family homes. The Committee notes, however that this
section does not include the multi-family units in the
demonstration project authorized under the American Recovery
and Reinvestment Act. HUD's demonstration program will evaluate
the effectiveness of funding a portion of the costs for
carrying out energy efficiency, conservation, and
sustainability measures for multi-family housing. The HUD
Secretary will have the discretion to include incentives in the
demonstration program for housing that is assisted with the
Native American housing block grant provided pursuant to the
Native American Housing Assistance and Self Determination Act
of 1996. The demonstration program will include rural housing
as well as urban housing.
The GREEN Act also establishes a pilot program for energy-
efficiency and conservation capital improvements for assisted
living housing projects. It is the Committee's expectation that
the energy cost savings realized at a project will fully
amortize the costs of the capital improvements, including a
reasonable fee to the project owner for incurring the debt and
supervising the energy retrofit work.
The GREEN Act further authorizes HUD to provide grants to
nonprofit organizations to train, educate and advise eligible
community development organizations in effective design
strategies to maximize the energy efficiency of existing
infrastructure in affordable housing and low income
communities.
RENEWABLE ENERGY SYSTEMS
The up-front cost to acquire renewable energy systems is
often prohibitively expensive for the average homeowner.
Consequently, the bill seeks to spur private sector capital
investment to make renewable energy leasing readily accessible
for the average American by authorizing the HUD Secretary to
insure loans for the financing of renewable energy systems
leased for residential use. The bill provides this insurance to
minimize the initial cost of installing and utilizing renewable
energy sources such as solar panels.
Under the bill, the HUD Secretary may insure loans made by
lenders to solar equipment owners such as homebuilders, public
or private corporations and other qualifying persons and
entities for the acquisition of renewable energy systems to
lease to homeowners. The insurance provided through HUD is
effective no earlier than five years beginning from the
original date the renewable energy lease was executed and
insures an amount up to the residual value of the renewable
energy system.
Additionally, the principal amount of the loan insured
under this section shall not exceed the residual value of the
renewable energy system. The residual value of a renewable
energy system shall be the amount that is equal to the fair
market value of future energy production from the system. Upon
entering into a lease agreement, the homeowner will grant an
easement on the area of the home where installation is
required.
The Committee notes that this section is not intended to
effect the calculation of the sales price of the home equipped
with a renewable energy system. Moreover, it is the Committee's
intent for the Secretary to make clear that any lien granted to
the Secretary in the renewable energy system as a result of the
payment of an insurance claim is granted separate and apart
from any first or subordinate security interest(s) that may
exist or come to exist in the residential real property.
Furthermore, the lien granted to the Secretary is granted only
for the renewable energy system and the revenue stream
generated from the energy it produces.
The Committee also notes that this section is not intended
to undermine the homeowners' obligations on the mortgage
instrument, or the security interest of any party or parties in
the residential real property and associated contracts. The
guidelines adopted by the Secretary shall recognize the
separate nature of the renewable energy systems leasing and
power purchase agreements.
RESIDENTIAL ENERGY EFFICIENT BLOCK GRANT PROGRAM
The GREEN Act establishes a residential energy efficient
block grant program, which is modeled on the distribution
formula of the Community Development Block Grant Program.
Grants will be provided to states, cities, counties, Native
American tribes, and other municipal entities to carry-out
energy efficiency improvements for single-family and multi-
family housing to meet the 2009 International Energy
Conservation Code standards. Grants also will be provided to
non-profits to help community organizations improve their
energy efficiency and economic development in low-income
communities by training, educating and providing loans to their
communities. In addition to the grant program, the bill
establishes a loan fund aimed at states and Native American
tribes for renewable energy sources activities.
HOME APPRAISALS
The GREEN Act also updates the home appraisal process. Bank
regulators would be responsible for developing consistent
guidelines for lenders and underwriters, designed to ensure
appraisals consider renewable energy sources or energy
conserving improvements.
GREEN MORTGAGES
The bill also provides HUD with authority to guarantee a
green portion of eligible mortgages. Under this provision, the
Secretary may make commitments to repay portions of the
principal obligations of mortgages that are used to finance
eligible sustainable building elements. This section is one of
several in the GREEN Act creating new financing mechanisms for
energy efficient improvements in the marketplace.
FINANCING FOR MULTIFAMILY GREEN RETROFITS
The GREEN Act authorizes the HUD Secretary to establish
incentives to increase the energy efficiency of multi-family
homes, including a discount on the chargeable premiums for the
mortgage insurance. The bill also establishes a green dividend
program for owners of federally-assisted multi-family housing
projects who undertake utility cost-saving measures that result
in utility cost-savings measures and establishes incentives for
owners of HUD-assisted multifamily housing projects to
undertake energy efficiency retrofits.
The Committee has determined that residual receipts
constitute a potential untapped source of funds to pay for
energy retrofits on those properties that have accumulated
substantial residual receipts while also ensuring the continued
long-term affordability of these properties. As such, the GREEN
Act includes a section authorizing the Secretary to promulgate
guidance to encourage and facilitate the use of these funds in
this manner.
Hearings
The Subcommittee on Housing and Community Opportunity held
a hearing on June 11, 2009, on ``H.R. 2336, the GREEN Act of
2009'' (part one). The following witnesses testified:
WITNESS LIST
Panel One
Mr. Gerald M. Howard, President, National Association of
Homebuilders
Mr. Doug Gatlin, Vice President, Market Development, U.S.
Green Building Council
Ms. Doris Koo, President and Chief Executive Officer,
Enterprise Community Partners, Inc.
Mr. Scott Bernstein, President, Center for Neighborhood
Technology
Mr. Edward Mazria, Architecture 2030
Mr. Roy Willis, Executive Vice President, Lennar Urban
(Southern California division)
Mr. David Wluka, Director, National Association of Realtors
The Subcommittee on Housing and Community Opportunity held
a subsequent hearing on June 16, 2009, on ``H.R. 2336, the
GREEN Act of 2009'' (part two). The following witness
testified:
WITNESS LIST
The Honorable Ron Sims, Deputy Secretary, U.S. Department
of Housing and Urban Development
Committee Consideration
The Committee on Financial Services met in open session on
April 22, 2010, and ordered H.R. 2336, Green Resources for
Energy Efficient Neighborhoods Act of 2009 or the GREEN Act of
2009, as amended, favorably reported to the House by a voice
vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto. No
record votes were taken in conjunction with the consideration
of this legislation. A motion by Mr. Frank to report the bill,
as amended, to the House with a favorable recommendation was
agreed to by a voice vote. During consideration of the bill,
the following amendments were considered:
An amendment by Mr. Perlmutter (and Mrs. Biggert), No. 1, a
manager's amendment, was agreed to by a voice vote.
An amendment by Mr. Cleaver, No. 2, relating to
deconstruction standards, was agreed to by a voice vote.
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee has held hearings and
made findings that are reflected in this report.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the Committee establishes the
following performance related goals and objectives for this
legislation:
The purpose of H.R. 2336 is to reduce the harmful effects
that buildings have on the environment by encouraging energy-
efficiency and conservation and the development and
installation of renewable energy sources for housing and
commercial buildings, thereby creating sustainable communities.
The Act also is designed to improve the energy efficiency of
buildings within very low, low and moderate income communities,
which will lower the utility costs and negative health factors
affecting single and multi-family dwellings.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Committee Cost Estimate
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
Congressional Budget Office Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
June 30, 2010.
Hon. Barney Frank,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 2336, the GREEN
Act of 2010.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Chad Chirico.
Sincerely,
Douglas W. Elmendorf.
Enclosure.
H.R. 2336--GREEN Act of 2010
Summary: H.R. 2336 would define minimum energy efficiency
standards for properties that are assisted by the Department of
Housing and Urban Development (HUD) and authorize a number of
programs to encourage residential energy efficiency and
conservation. CBO estimates that implementing H.R. 2336 would
cost about $10 billion over the 2011-2015 period, assuming
appropriation of the necessary amounts. Enacting the bill would
not affect direct spending or revenues; therefore, pay-as-you-
go procedures would not apply.
H.R. 2336 contains an intergovernmental mandate as defined
in the Unfunded Mandates Reform Act (UMRA) because it would
preempt underwriting laws and regulations established by public
housing finance authorities. CBO estimates the cost of
complying with the mandate would be small and would fall well
below the threshold established in UMRA for intergovernmental
mandates ($70 million in 2010, adjusted annually for
inflation).
H.R. 2336 would impose a mandate on the private sector as
defined in UMRA. It would increase the reporting requirements
on mortgage lenders for certain loans. CBO estimates that the
aggregate cost of complying with this mandate would not exceed
the threshold established by UMRA for private-sector mandates
($141 million in 2010, adjusted annually for inflation).
Estimated cost to the Federal Government: The estimated
budgetary impact of H.R. 2336 is shown in the following table.
The costs of this legislation fall within budget functions 450
(community and regional development) and 600 (income security).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
--------------------------------------------------
2011 2012 2013 2014 2015 2011-2015
----------------------------------------------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Residential Energy Efficiency Block Grants:
Estimated Authorization Level............................ 2,500 2,525 2,552 2,582 2,621 12,780
Estimated Outlays........................................ 25 650 1,957 2,427 2,503 7,562
Green Guarantees:
Authorization Level...................................... 500 500 500 500 0 2,000
Estimated Outlays........................................ 500 500 500 500 0 2,000
Alternative Energy Sources State Loan Fund:
Estimated Authorization Level............................ 100 0 0 0 0 100
Estimated Outlays........................................ 8 14 24 20 12 78
Energy Efficiency and Conservation Demonstration Program:
Authorization Level...................................... 50 50 50 50 50 250
Estimated Outlays........................................ 17 34 50 50 50 201
Community Building Code Administration Grants:
Authorization Level...................................... 20 20 20 20 0 80
Estimated Outlays........................................ 5 15 20 20 15 75
Sustainable Community Development Capacity Grants:
Authorization Level...................................... 10 10 10 10 0 40
Estimated Outlays........................................ 2 6 10 10 8 36
Energy-Efficient Mortgages Education and Outreach Campaign:
Authorization Level...................................... 5 5 5 5 0 20
Estimated Outlays........................................ 1 5 5 5 4 20
HOPE VI Green Developments:
Estimated Authorization Level............................ 15 15 15 16 16 77
Estimated Outlays........................................ * 1 3 6 9 19
Total Changes:
Estimated Authorization Level............................ 3,200 3,125 3,152 3,183 2,687 15,347
Estimated Outlays........................................ 558 1,225 2,569 3,038 2,601 9,991
----------------------------------------------------------------------------------------------------------------
Note: * = less than $500,000.
Basis of estimate: For this estimate, CBO assumes that H.R.
2336 will be enacted by the end of fiscal year 2010, that
amounts authorized and estimated to be necessary will be
appropriated near the beginning of each fiscal year, and that
outlays will follow historical spending patterns for similar
programs. Components of the estimated costs are described
below.
Residential energy efficiency block grants
Section 14 would authorize the appropriation of $2.5
billion for the first year and such sums as may be necessary
for subsequent years for HUD to make grants to state and local
governments to encourage energy efficiency improvements in
single-family and multifamily residences. CBO estimates that
the program would continue at the $2.5 billion per year level,
adjust for anticipated inflation. Implementation of the new
program, including the formula used to distribute funding,
would be similar to HUD's Community Development Block Grant
(CDBG) program. Based on historical expenditures for CDBG and
other similar federal programs, CBO estimates that implementing
this provision would cost about $7.6 billion over the 2011-2015
period.
Green guarantees
Section 25 would authorize HUD to guarantee the repayment
of the portion of a mortgage that is used to finance energy
efficiency or environmental sustainability elements for the
housing that is subject to the mortgage. Such guarantees could
not exceed 10 percent of the total principal obligation of the
mortgage. The bill would authorize $500 million for each of
fiscal years 2011 through 2014 for the subsidy cost of such
guarantees. Assuming appropriation of the authorized amounts
beginning in 2011, CBO estimates that implementing this section
would cost $2.0 billion over the 2011-2015 period.
Alternative energy sources state loan fund
Section 21 would authorize appropriations for an
Alternative Energy Sources State Loan Fund in the Department of
the Treasury. The bill would allow HUD to use the fund for the
cost of making direct loans to states and Indian tribes to
provide incentives for property owners to use renewable energy
sources, build infrastructure, and undertake energy efficiency
and conservation projects. Loans would be for a term of no
longer than 10 years and would bear interest at a rate not to
exceed the primary credit rate charged by the Federal Reserve
Bank (also known as the discount rate). Based on historical
defaults in other direct loan programs for states and Indian
tribes and CBO's projected interest rates, CBO estimates that
the subsidy rate for these loans would vary between 1 percent
and 10 percent over the next five years. Due to the limited
experience of the states with this type of program and the
large amount of grant funding recently provided to the states
for similar purposes, we expect the demand for loans would be
low in the first few years of the program (between $1 billion
and $2 billion over the first five years). CBO estimates the
subsidy cost of providing that level of loans and the
administrative costs associated with such loans under this
section would total $78 million over the 2011-2015 period.
Energy efficiency and conservation demonstration program
Section 5 would authorize the appropriation of $50 million
each year to implement a demonstration program to assist
properties that receive project-based rental assistance to meet
new energy efficiency standards. The demonstration program
would assist not fewer than 50,000 units over the five-year
period after the date of enactment. Assuming appropriation of
the authorized amounts, CBO estimates that implementing this
section would cost $201 million over the 2011-2015 period.
Community building code administration grants
Section 29 would authorize the appropriation of $20 million
for each of fiscal years 2011 through 2014 for HUD to make
grants to local departments that enforce building codes.
Funding would be used to increase staff levels, provide
training and accreditation, and cover capital expenditures
related to department administration. Based on historical
spending patterns for similar federal programs, CBO estimates
that implementing this provision would cost $75 million over
the 2011-2015 period.
Sustainable community development capacity grants
Section 16 would authorize the appropriation of $10 million
for each of fiscal years 2011 through 2014 for HUD to make
grants to nonprofit organizations that work on affordable
housing to improve energy efficiency and conservation. Funds
would be used to cover no more than half of the cost of
providing education and training programs, direct loans,
grants, and other support to local governments, community
housing development organizations, Indian tribes, and public
housing agencies. Based on historical spending patterns for
similar federal programs, CBO estimates that implementing this
provision would cost $36 million over the next five years.
Energy-efficient mortgages education and outreach campaign
Section 7 would authorize the appropriation of $5 million
for each of fiscal years 2011 through 2014 to establish a
commission to develop and recommend model mortgage products and
underwriting guidelines to provide incentives to incorporate
energy efficiency upgrades as a component of new mortgage
transactions. Assuming appropriation of the authorized amounts
beginning in 2011, CBO estimates that implementing this section
would cost $20 million over the 2011-2015 period.
HOPE VI green developments
Section 17 would require that HOPE VI grant recipients
comply with the national Green Communities criteria checklist,
which sets certain standards for residential construction and
rehabilitation. Based on information from HUD and industry
groups. CBO estimates that meeting the Green Communities
criteria would increase the cost of HOPE VI construction by
between 5 percent and 10 percent. In 2010, $200 million was
appropriated for the HOPE VI program. Assuming that annual
appropriations are increased accordingly, and adjusting for
inflation, CBO estimates that implementing this provision would
result in outlays of $20 million over the 2011-2015 period.
Insurance for loans for financing of renewable energy systems
Section 24 would authorize HUD to guarantee loans to third
parties that finance the acquisition and installation of
residential renewable energy systems and lease those systems to
homeowners. The amount of such guarantees would be limited to
the residual value of renewable energy systems as defined by
the bill. Specifically, a system's residual value would reflect
the estimated fair market value of electricity (based on price
forecasts by the Energy Information Administration) that could
be sold during a system's remaining useful life.
To cover the subsidy cost of the proposed loan guarantees,
the bill would direct HUD to charge lenders an upfront premium
of not more than 3 percent of the principal of the loan being
insured. Consistent with the Federal Credit Reform Act, HUD's
authority to issue loan guarantees would be subject to limits
on loan levels specified in annual appropriation acts.
CBO estimates that allowing HUD to charge premiums of up to
3 percent would enable the agency to charge fees that, on
average, would offset the program's subsidy costs, resulting in
no significant net cost or savings to the federal government.
That estimate is based on information from industry experts
about the credit worthiness of homeowners and firms likely to
participate in transactions that would be guaranteed by the
federal government. For purposes of this estimate, CBO assumes
that underlying contracts, warranties, and property insurance
related to covered renewable energy systems would minimize
technology risk faced by the federal government. CBO also
assumes that each loan guaranteed would finance multiple
residential installations, thereby spreading risk across a wide
portfolio of properties.
Pay-as-you-go considerations: None.
Estimated impact on State, local, and tribal governments:
Under current law, public housing finance authorities can
establish regulations, including underwriting policies, that
apply to borrowers who receive state and federal resources. The
bill would preempt state and local laws that limit the amount
of funds that may be distributed to certain borrowers of
federal housing funds. However, because the preemption would
simply limit the application of state and local laws, CBO
estimates that it would not impose significant costs and would
fall well below the threshold established in UMRA for
intergovernmental mandates ($70 million in 2010, adjusted
annually for inflation).
Estimated impact on the private sector: H.R. 2336 would
impose a private-sector mandate as defined in UMRA, on mortgage
lenders, particularly those lenders who support projects that
increase the energy efficiency of housing units.
The bill would require all lenders subject to the Home
Mortgage Disclosure Act to report both the number and dollar
amount of loans, for single-family and multifamily housing,
that are either energy-efficient mortgages or location-
efficient mortgages. The initial direct cost of complying with
this mandate, which would be higher than the continuing cost,
would be to begin collecting, compiling, and reporting such
information in addition to what is already reported.
CBO estimates that the direct cost of this mandate would be
less than UMRA's threshold of $141 million in 2010, adjusted
annually for inflation.
Estimate prepared by: Federal Costs: Chad Chirico, Megan
Carroll, and Dan Hoople; Impact on State, Local, and Tribal
Governments: Lisa Ramirez-Branum; Impact on the Private Sector:
Sarah Axeen.
Estimate approved by: Peter H. Fontaine, Assistant Director
for Budget Analysis.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional Authority of Congress to enact this legislation
is provided by Article 1, section 8, clause 1 (relating to the
general welfare of the United States) and clause 3 (relating to
the power to regulate interstate commerce).
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Earmark Identification
H.R. 2336 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI.
Section-by-Section Analysis of the Legislation
Sec. 1. Short title and table of contents
This section sets forth the short title and table of
contents.
This Act may be cited as the ``Green Resources for Energy
Efficient Neighborhoods Act of 2009'' or the ``GREEN Act of
2009''.
Sec. 2. Definitions
This section establishes definitions for various terms,
including: ``green building standards,'' ``HUD,'' ``HUD
Assistance,'' ``Nonresidential Structure,'' ``Secretary''.
Specifically, ``green building standards'' are building
standards based on renewable energy design principals to reduce
the use of nonrenewable resources, encourage energy-efficient
construction and rehabilitation and the use of renewable energy
resources, minimize the impact of development on the
environment, and improve indoor air quality.
Sec. 3. Implementation of energy efficiency participation incentives
for HUD programs
This section authorizes the Secretary of HUD, not later
than 180 days of enactment, to establish annual energy
efficiency participation incentives within the programs under
HUD jurisdiction.
Sec. 4. Basic HUD energy efficiency standards and standards for
additional credit
Subsection (a) establishes minimum HUD energy efficiency
standards. This section serves as a reference for the rest of
the bill.
For new single-family or multi-family structures,
the applicable provisions of the American Society of Heating,
Refrigerating, and Air-Conditioning Engineers Standard (ASHRAE)
and the applicable provisions of the 2009 International Energy
Conservation Code (IECC) will apply. These approved standards
cover the buildings, ceilings, walls, floors, foundations, and
the mechanical, lighting and power systems.
For existing structures to comply with energy
efficiency goals when undergoing rehabilitation or
improvements, a 20 percent reduction in energy consumption must
be accomplished. The percentage reduction is determined by an
energy audit.
The Secretary shall review the adoption of any such
requirements, standards, checklists, or rating systems for
purposes of this section no later then 180-day period beginning
upon the date of receipt of any written request.
For nonresidential structures, the Secretary will adopt
regulation for energy efficiency requirements that are
constructed or rehabilitated with HUD assistance.
Subsection (b) establishes enhanced energy efficiency
standards for residential or nonresidential structures to
receive additional credit.
For the new construction of residential
structures, the standard for additional credit will be Energy
Star Standards.
For existing residential structures, a reduction
in energy consumption above 20 percent will comply for
additional credit.
For nonresidential structures, the following
standards will apply: the national Green Communities; the LEED
for New Construction rating system, the LEED for Homes rating
system and the LEED for Core and Shell rating system; and the
Green Globes assessment and rating system of the Green Building
Initiative.
For manufactured housing, the Energy Star rating
with respect to fixtures, appliances, and equipments will
comply for additional credit.
The National Green Building Standard will also
apply.
This section also authorizes the Secretary to update by
regulation the requirements, standards, criteria and rating
systems.
This section further directs the Secretary to review the
adoption of any such requirements, standards, criteria, or
rating systems for purposes of this section no later then 180-
day period beginning upon the date of receipt of any written
request.
Sec. 5. Energy efficiency and conservation demonstration program for
multifamily housing projects assisted with project-based rental
assistance
This section authorizes HUD to conduct a section 8
demonstration program comprised of 50,000 units for four years
to demonstrate the effectiveness of funding a portion of the
costs for carrying out energy efficiency and conservation and
sustainability measures for multi-family housing.
The Secretary shall conduct this project subject to the
availability of amounts provided in advance in appropriation
Acts. There will be additional project rental assistance or
additional assistance under the Native American Housing
Assistance and Self-Determination Act of 1996. The Secretary
will work with homebuilders, realtors, nonprofit housing
organizations, environmental protection organizations,
renewable energy organizations, and advocacy organizations for
the elderly and persons with disabilities for advisement. The
goals of the project will be to encourage energy efficient
improvements, and the installation of renewable energy sources
such as solar, wind, geothermal, or biomass sources.
Sec. 6. Consideration of energy efficiency under FHA mortgage insurance
programs and Native American and Native Hawaiian loan guarantee
programs
This section directs the Secretary to develop underwriting
standards for single-family housing to capture the impact that
savings on utility costs has on the income of the mortgager for
mortgages insured under this act. The bill encourages the
Secretary to insure, through FHA, at least 50,000 mortgages,
which meet the energy-efficient standards set forth in the
bill, by December 31, 2012. The Secretary shall apply the same
underwriting standards to Indian and Native Hawaiian housing
loan guarantees.
Data will be collected after December 31, 2011, on the
number of mortgages meeting the energy-efficient standards that
went into default or foreclosure. The percentage of such
mortgages experiencing default or foreclosure will be gathered,
along with the rate of such mortgages compared to the overall
rate of single-family housing mortgages experiencing default or
foreclosure. The Secretary shall apply the same data collection
methods to Indian and Native Hawaiian housing loan guarantees.
Sec. 7. Energy efficient mortgages and location-efficient mortgages
education and outreach campaign
This section directs the Secretary, in consultation with
other government officials, to establish a commission to
develop and recommend market-based incentives to prospective
home buyers, lenders, and sellers to incorporate energy
efficiency upgrades in new mortgage loan transactions. Not
later than 24 months after the date of enactment the commission
will provide a written report to Congress on the work of the
commission. After submission of the report the Secretary in
consultation with other government officials shall carry out a
public awareness, education and outreach campaign based on the
findings of the commission.
Sec. 8. Collection of information on energy-efficient and location
efficient mortgages through home mortgage disclosure act
This section amends the Home Mortgage Disclosure Act to
provide for the collection of information on the number of, and
dollar amount of, mortgage loans for single family and multi-
family homes that are energy efficient and location efficient.
Sec. 9. Ensuring availability of homeowners insurance for homes not
connected to electricity grid
This section ensures that consumers will not be denied
homeowners insurance for a dwelling based solely on the fact
that the dwelling is not connected to or able to receive
electricity service from any wholesale or retail electric power
provider.
Sec. 10. Mortgage incentives for energy efficient multifamily housing
This section authorizes the HUD Secretary to establish
incentives to increase the energy efficiency of multi-family
homes. Incentives will include a discount on the chargeable
premiums for the mortgage insurance.
Sec. 11. Energy efficiency certifications for manufactured housing with
mortgages insured by FHA
This section establishes minimum energy efficiency
standards for manufactured homes. Specifically, manufactured
homes must comply with the energy star ratings for wall
fixtures, appliances and equipment. The Secretary shall require
individuals who have been accredited by the home energy ratings
system council, the residential energy services network, or
other appropriate national organization to certify any single
or multi-family housing seeking to meet energy efficiency
criteria.
Sec. 12. Assisted housing energy loan pilot program
This section authorizes the HUD Secretary to establish a
program for energy efficiency and conservation for assisted
living housing projects. The Secretary shall develop a pilot
program that is available to service debt and provide
appropriate owner incentives in an amount equal to the total
savings through lower utility bills. The requirements will be
set by the Secretary and the work may be contracted out if
necessary.
Sec. 13. Making it green
This section authorizes the HUD Secretary to establish a
minimum goal where assistance is provided in consultation with
national organizations in the low-income housing community and
the arbor community. The bill includes incentives for
developers to enter into agreements with tree planting and
landscaping organizations.
Sec. 14. Residential energy efficiency block grant program
This section authorizes the HUD Secretary to establish a
residential energy efficiency block grant program. Grants will
be given to states, cities, counties, and Indian tribes, to
carry-out energy efficiency improvements for single-family and
multi-family housing that complies with the International
Energy Conservation Code standards. The formula used for
distribution will be the same as the community development
block grant. Grantees are required to prepare a statement of
energy-efficiency objectives and projected use of funds for the
HUD Secretary. Grantees must also meet nondiscrimination
standards and Davis-Bacon laws.
Sec. 15. Including sustainable development and transportation
strategies in comprehensive housing affordability strategies
This section amends the Cranston-Gonzalez National
Affordability Act to encourage greater energy efficiency and
use of renewable energy sources in single-family and multi-
family housing as part of a jurisdiction's strategies. The
strategies suggest increased conservation, recycling, reuse of
resources and more effective use of existing infrastructure.
Sec. 16. Grant program to increase sustainable low-income community
development capacity
This section authorizes the HUD Secretary to provide grants
to nonprofit organizations to train, educate, and advise
eligible community development organizations in effective
design strategies to maximize the energy efficiency of existing
infrastructure in affordable housing and low income
communities. Loans and grants may also be used to carry out
energy efficiency improvements that comply with the standards
set forth in the bill. Applications and matching requirements
will exist prior to distribution of the funds.
Sec. 17. HOPE VI green developments
This section establishes new requirements for HOPE VI
construction projects. Specifically, the bill requires that new
HOPE VI construction must comply with the mandatory items in
the national Green Communities criteria. For non-mandatory
items on the checklist, points must be accumulated (25 points
for new construction and 20 points for rehab). The Secretary is
authorized to identify rating systems and levels for green
buildings that will encourage a comprehensive and
environmentally sound approach. The systems and levels must
meet certain criteria for green building, public comment, and
verification.
Sec. 18. Consideration of energy-efficiency improvements in appraisals
This section authorizes banking regulators to develop
consistent guidelines for lenders and underwriters to ensure
that renewable energy sources or energy-conserving improvements
are accounted for in appraisals. This bill also elevates
appraiser qualifications to require that any real property with
energy efficiency features be appraised by a State Certified
appraiser who has met higher minimum education, experience and
testing requirements.
Sec. 19. Housing assistance council
This section requires the Housing Assistance Council to
encourage entities that use federal assistance from the Council
to develop or assist structures and buildings to comply with
the 2009 International Energy Conservation Code standards. This
section also requires the Council to establish incentives to
encourage entities that receive federal assistance from the
Council to meet such standards.
Sec. 20. Rural housing and economic development assistance
This section provides incentives to tribes, agencies,
organizations, and corporations receiving any assistance from
HUD's Office of Rural Housing and Economic Development to
assist in the compliance of the energy efficiency requirements
under the bill.
Sec. 21. Loans to States and Indian Tribes to carry out renewable
energy sources activities
This section establishes an alternative energy sources
revolving fund in the Department of Treasury. The fund will
provide loans to states and Indian tribes, which in turn will
provide assistance to owners of single-family and multi-family
housing to provide renewable energy sources and energy
efficiency improvements and features.
Sec. 22. GAO report on availability of affordable mortgages
This section directs the Comptroller General to submit a
report to Congress on how the amendments made by this Act have
directly or indirectly resulted in consequences that limit the
availability or affordability of mortgages in any area.
Sec. 23. Public housing energy cost report
This section authorizes the HUD Secretary to collect
information from each public housing agency regarding the
energy costs for the housing administered by the agency. The
information will include the monthly energy costs and such
information the Secretary determines is appropriate.
Sec. 24. Insurance coverage for loans for financing of renewable energy
systems leased for residential use
This section authorizes the HUD Secretary to insure loans
made by qualified energy lenders to homebuilders, renewable
energy installers or manufacturers, public or private
corporations or partnerships, associations, trusts, or other
qualified persons or entities, to finance the acquisition of
renewable energy systems for lease to homeowners for use at
their residences.
Sec. 25. Green guarantees
This section authorizes the HUD Secretary to make
commitments to guarantee the repayment of a portion of the
principal obligations of mortgages that are used to finance
eligible sustainable building elements. Eligible mortgages
shall be made for the construction of single or multi-family
housing.
Sec. 26. Green divided program for Federally assisted rental housing
This section authorizes the HUD Secretary to establish a
program to provide green dividends to owners of federally
assisted housing projects to undertake energy, water, and
utility cost-saving measures that result in utility cost
savings.
Sec. 27. Use of residual receipts and reserve for replacement funds for
green retrofits of Federally assisted rental housing
This section authorizes the HUD Secretary to study whether
residual receipts may be used to undertake activities related
to energy efficiency and to revise its policies with respect to
the use of reserve for replacement funds to encourage the use
of such reserves, where practicable, for energy efficiency.
Sec. 28. Study on building codes effects on construction and
installation of distributive energy generation measures and
water efficiency measures
This section directs the GAO Comptroller General to
undertake a six-month study to determine to what extent
provisions of state and local building codes create obstacles
or otherwise conflict with efforts to enable and encourage the
construction and installation of distributive energy generation
measures and water efficiency measures.
Sec. 29. Community building code administrative grants
This section authorizes the HUD Secretary to establish a
competitive, matching grant program to provide incentives to
local governments to update and enforce local building codes.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
NATIONAL HOUSING ACT
* * * * * * *
TITLE V--MISCELLANEOUS
* * * * * * *
MINIMUM PROPERTY STANDARDS
Sec. 526. (a)(1) To the maximum extent feasible, the
Secretary of Housing and Urban Development shall promote the
use of energy saving techniques through minimum property
standards established by him for newly constructed residential
housing[, other than manufactured homes,] subject to mortgages
insured under this Act. Such standards shall establish energy
performance requirements that will achieve a significant
increase in the energy efficiency of new construction. Such
requirements shall be implemented as soon as practicable after
the date of enactment of this sentence. Following the effective
date of this sentence, the energy performance requirements
developed and established by the Secretary under this
subsection for newly constructed residential housing[, other
than manufactured homes,] shall be at least as effective in
performance as the energy performance requirements incorporated
in the minimum property standards that were in effect under
this subsection on September 30, 1982. The energy performance
requirements developed and established by the Secretary under
this section for manufactured homes shall require Energy Star
rating for wall fixtures, appliances, and equipment in such
housing.
(2) The Secretary shall require, with respect to any mortgage
for manufactured housing insured under this Act, that any
approval or certification of the housing for meeting any energy
efficiency or conservation criteria, standards, or requirements
pursuant to this title and any approval or certification
required pursuant to this title with respect to energy-
conserving improvements or any renewable energy sources, such
as wind, solar energy geothermal, or biomass, shall be
conducted only by an individual certified by a home energy
rating system provider who has been accredited to conduct such
ratings by the Home Energy Ratings System Council, the
Residential Energy Services Network, or such other appropriate
national organization, as the Secretary may provide, or by
licensed professional architect or engineer. If any
organization makes a request to the Secretary for approval to
accredit individuals to conduct energy efficiency or
conservation ratings, the Secretary shall review and approve or
disapprove such request not later than the expiration of the 6-
month period beginning upon receipt of such request.
(3) The Secretary shall periodically examine the method used
to conduct inspections for compliance with the requirements
under this section, analyze various other approaches for
conducting such inspections, and review the costs and benefits
of the current method compared with other methods.
(b) The Secretary may require that each property[, other than
a manufactured home,] subject to a mortgage insured under this
Act shall, with respect to health and safety, comply with one
of the nationally recognized model building codes, or with a
State or local building code based on one of the nationally
recognized model building codes or their equivalent. The
Secretary shall be responsible for determining the
comparability of the State and local codes to such model codes
and for selecting for compliance purposes an appropriate
nationally recognized model building code where no such model
code has been duly adopted or where the Secretary determines
the adopted code is not comparable.
* * * * * * *
INFORMATION REGARDING EARLY DEFAULTS AND FORECLOSURES ON INSURED
MORTGAGES
Sec. 540. (a) * * *
(b) Contents.--
(1) * * *
* * * * * * *
(3) With respect to each collection period that
commences after December 31, 2011, the total number of
mortgages on single-family housing meeting the energy
efficiency standards under section 4(a) of the Green
Resources for Energy Efficient Neighborhoods Act of
2010 that are insured by the Secretary during the
applicable collection period, the number of defaults
and foreclosures occurring on such mortgages during
such period, the percentage of the total of such
mortgages insured during such period on which defaults
and foreclosure occurred, and 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.
(4) With respect to each collection period that
commences after December 31, 2011, the total number of
loans guaranteed under section 184 of the Housing and
Community Development Act of 1992 (12 U.S.C. 1715z-13a)
on single-family housing meeting the energy efficiency
standards under section 4(a) of the Green Resources for
Energy Efficient Neighborhoods Act of 2010 that are
guaranteed by the Secretary during the applicable
collection period, the number of defaults and
foreclosures occurring on such loans during such
period, the percentage of the total of such loans
guaranteed during such period on which defaults and
foreclosure occurred, and 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 184 by the Secretary.
(5) With respect to each collection period that
commences after December 31, 2011, 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 meeting the energy efficiency
standards under section 4(a) of the Green Resources for
Energy Efficient Neighborhoods Act of 2010 that are
guaranteed by the Secretary during the applicable
collection period, the number of defaults and
foreclosures occurring on such loans during such
period, the percentage of the total of such loans
guaranteed during such period on which defaults and
foreclosure occurred, and 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 by the Secretary.
* * * * * * *
SEC. 543. CONSIDERATION OF ENERGY EFFICIENCY.
(a) Underwriting Standards.--The Secretary shall establish a
method to consider, in its underwriting standards for mortgages
on single-family housing meeting the energy efficiency
standards under section 4(a) of the Green Resources for Energy
Efficient Neighborhoods Act of 2010 that are insured under this
Act, the impact that savings on utility costs has on the income
of the mortgagor.
(b) Goal.--It is the sense of the Congress that, in carrying
out this Act, the Secretary should endeavor to insure mortgages
on single-family housing meeting the energy efficiency
standards under section 4(a) of the Green Resources for Energy
Efficient Neighborhoods Act of 2010 such that at least 50,000
such mortgages are insured during the period beginning upon the
date of the enactment of such Act and ending on December 31,
2012.
* * * * * * *
----------
HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1992
TITLE I--HOUSING ASSISTANCE
* * * * * * *
Subtitle E--Homeownership Programs
* * * * * * *
SEC. 184. LOAN GUARANTEES FOR INDIAN HOUSING.
(a)* * *
* * * * * * *
(l) Consideration of Energy Efficiency.--The Secretary shall
establish a method to consider, in its underwriting standards
for loans for single-family housing meeting the energy
efficiency standards under section 4(a) of the Green Resources
for Energy Efficient Neighborhoods Act of 2010 that are
guaranteed under this section, the impact that savings on
utility costs has on the income of the borrower.
[(l)] (m) Definitions.--For purposes of this section:
(1) * * *
* * * * * * *
SEC. 184A. LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUSING.
(a) * * *
* * * * * * *
(m) Energy-Efficient Housing Requirement.--The Secretary
shall establish a method to consider, in its underwriting
standards for loans for single-family housing meeting the
energy efficiency standards under section 4(a) of the Green
Resources for Energy Efficient Neighborhoods Act of 2010 that
are guaranteed under this section, the impact that savings on
utility costs has on the income of the borrower.
* * * * * * *
----------
SECTION 106 OF THE ENERGY POLICY ACT OF 1992
SEC. 106. ENERGY EFFICIENT MORTGAGES PILOT PROGRAM.
(a) * * *
* * * * * * *
(g) Education and Outreach Campaign.--
(1) Development of energy- and location-efficient
mortgages outreach program.--
(A) Commission.--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 and
location efficiencies in new mortgage loan
transactions.
(B) Report.--Not later than 24 months after
the date of the enactment of this Act, the
Secretary shall provide a written report to the
Congress 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 and location efficiency.
(2) Implementation.--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
energy-efficient mortgages and location-efficient
mortgages made available pursuant to this section,
energy-efficient and location-efficient mortgages (as
such terms are defined in section 2 of the GREEN Act of
2010), and other mortgages, including mortgages for
multifamily housing, that have energy improvement
features or location efficiency features and to
publicize such availability, benefits, advantages, and
terms. Such actions may include entering into a
contract with an appropriate entity to publicize and
market such mortgages through appropriate media.
(3) Renewable energy home product expos.--The
Congress hereby encourages the Secretary of Housing and
Urban Development to 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 appropriations.--There is
authorized to be appropriated to the Secretary to carry
out this subsection $5,000,000 for each of fiscal years
2010 through 2014.
* * * * * * *
----------
SECTION 304 OF THE HOME MORTGAGE DISCLOSURE ACT OF 1975
MAINTENANCE OF RECORDS AND PUBLIC DISCLOSURE
Sec. 304. (a) * * *
(b) Any item of information relating to mortgage loans
required to be maintained under subsection (a) shall be further
itemized in order to disclose for each such item--
(1) * * *
* * * * * * *
(3) the number and dollar amount of home improvement
loans; [and]
(4) the number and dollar amount of mortgage loans
and completed applications involving mortgagors or
mortgage applicants grouped according to census tract,
income level, racial characteristics, and gender[.];
(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 2 of the GREEN Act of 2010); 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 2 of the GREEN Act of 2010).
* * * * * * *
----------
HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974
TITLE I--COMMUNITY DEVELOPMENT
* * * * * * *
SEC. 123. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT PROGRAM.
(a) In General.--To the extent amounts are made available for
grants under this section, the Secretary shall make grants
under this section to States, metropolitan cities and urban
counties, Indian tribes, and insular areas to carry out energy
efficiency improvements in new and existing single-family and
multifamily housing.
(b) Allocations.--
(1) In general.--Of the total amount made available
for each fiscal year for grants under this section that
remains after reserving amounts pursuant to paragraph
(2), the Secretary shall allocate for insular areas,
for metropolitan cities and urban counties, and for
States, an amount that bears the same ratio to such
total amount as the amount allocated for such fiscal
year under section 106 for Indian tribes, for insular
areas, for metropolitan cities and urban counties, and
for States, respectively, bears to the total amount
made available for such fiscal year for grants under
section 106.
(2) Set aside for indian tribes.--Of the total amount
made available for each fiscal year for grants under
this section, the Secretary shall allocate not less
than 1 percent to Indian tribes.
(c) Grant Amounts.--
(1) Entitlement communities.--From the amounts
allocated pursuant to subsection (b) for metropolitan
cities and urban counties for each fiscal year, the
Secretary shall make a grant for such fiscal year to
each metropolitan city and urban county that complies
with the requirement under subsection (d), in the
amount that bears the same ratio such total amount so
allocated as the amount of the grant for such fiscal
year under section 106 for such metropolitan city or
urban county bears to the aggregate amount of all
grants for such fiscal year under section 106 for all
metropolitan cities and urban counties.
(2) States.--From the amounts allocated pursuant to
subsection (b) for States for each fiscal year, the
Secretary shall make a grant for such fiscal year to
each State that complies with the requirement under
subsection (d), in the amount that bears the same ratio
such total amount so allocated as the amount of the
grant for such fiscal year under section 106 for such
State bears to the aggregate amount of all grants for
such fiscal year under section 106 for all States.
Grant amounts received by a State shall be used only
for eligible activities under subsection (e) carried
out in nonentitlement areas of the State.
(3) Indian tribes.--From the amounts allocated
pursuant to subsection (b) for Indian tribes, the
Secretary shall make grants to Indian tribes that
comply with the requirement under subsection (d) on the
basis of a competition conducted pursuant to specific
criteria, as the Secretary shall establish by
regulation, for the selection of Indian tribes to
receive such amount.
(4) Insular areas.--From the amounts allocated
pursuant to subsection (b) for insular areas, the
Secretary shall make a grant to each insular area that
complies with the requirement under subsection (d) on
the basis of the ratio of the population of the insular
area to the aggregate population of all insular areas.
In determining the distribution of amounts to insular
areas, the Secretary may also include other statistical
criteria as data become available from the Bureau of
Census of the Department of Labor, but only if such
criteria are set forth by regulation issued after
notice and an opportunity for comment.
(d) Statement of Activities.--
(1) Requirement.--Before receipt the receipt in any
fiscal year of a grant under subsection (c) by any
grantee, the grantee shall have prepared a final
statement of housing energy efficiency objectives and
projected use of funds as the Secretary shall require
and shall have provided the Secretary with such
certifications regarding such objectives and use as the
Secretary may require. In the case of metropolitan
cities, urban counties, units of general local
government, and insular areas receiving grants, the
statement of projected use of funds shall consist of
proposed housing energy efficiency activities. In the
case of States receiving grants, the statement of
projected use of funds shall consist of the method by
which the States will distribute funds to units of
general local government.
(2) Public participation.--The Secretary may
establish requirements to ensure the public
availability of information regarding projected use of
grant amounts and public participation in determining
such projected use.
(e) Eligible Activities.--
(1) Requirement.--Amounts from a grant under this
section may be used only to carry out activities for
single-family or multifamily housing that are designed
to improve the energy efficiency of the housing so that
the housing complies with the energy efficiency
standards under section 4(a) of the Green Resources for
Energy Efficient Neighborhoods Act of 2010, including
such activities to provide energy for such housing from
renewable sources, such as wind, waves, solar, biomass,
and geothermal sources.
(2) Preference for compliance beyond basic
requirements.--In selecting activities to be funded
with amounts from a grant under this section, a grantee
shall give more preference to activities based on the
extent to which the activities will result in
compliance by the housing with the enhanced energy
efficiency and conservation standards, and the green
building standards, under section 4(b) of such Act.
(f) Reports.--Each grantee of a grant under this section for
a fiscal year shall submit to the Secretary, at a time
determined by the Secretary, a performance and evaluation
report concerning the use of grant amounts, which shall contain
an assessment by the grantee of the relationship of such use to
the objectives identified in the grantees statement under
subsection (d).
(g) Applicability of CDBG Provisions.--Sections 109, 110, and
111 of the Housing and Community Development Act of 1974 (42
U.S.C. 5309, 5310, 5311) shall apply to assistance received
under this section to the same extent and in the same manner
that such sections apply to assistance received under title I
of such Act.
(h) Authorization of Appropriations.--There is authorized to
be appropriated for grants under this section $2,500,000,000
for fiscal year 2010 and such sums as may be necessary for each
fiscal year thereafter.
* * * * * * *
----------
SECTION 105 OF THE CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT
SEC. 105. STATE AND LOCAL HOUSING STRATEGIES.
(a) * * *
(b) Contents.--A housing strategy submitted under this
section shall be in a form that the Secretary determines to be
appropriate for the assistance the jurisdiction may be provided
and shall--
(1) * * *
* * * * * * *
(19) for any housing strategy submitted for fiscal
year 1994 or any fiscal year thereafter and taking into
consideration factors over which the jurisdiction has
control, describe the jurisdiction's goals, programs,
and policies for reducing the number of households with
incomes below the poverty line (as defined by the
Office of Management and Budget and revised annually),
and, in consultation with other appropriate public and
private agencies, state how the jurisdiction's goals,
programs, and policies for producing and preserving
affordable housing set forth in the housing strategy
will be coordinated with other programs and services
for which the jurisdiction is responsible and the
extent to which they will reduce (or assist in
reducing) the number of households with incomes below
the poverty line; [and]
(20) describe the jurisdictions activities to enhance
coordination between public and assisted housing
providers and private and governmental health, mental
health, and service agencies[.]; and
(21) describe the jurisdiction's strategies to
encourage sustainable development for affordable
housing, including single-family and multifamily
housing, as measured by--
(A) greater energy efficiency and use of
renewable energy sources, including any
strategies regarding compliance with the energy
efficiency standards under section 4(a) of the
Green Resources for Energy Efficient
Neighborhoods Act of 2010 and with the enhanced
energy efficiency and conservation standards,
and the green building standards, under section
4(b) of such Act;
(B) increased conservation, recycling, and
reuse of resources;
(C) more effective use of existing
infrastructure;
(D) use of building materials and methods
that are healthier for residents of the
housing, including use of building materials
that are free of added known carcinogens that
are classified as Group 1 Known Carcinogens by
the International Agency for Research on
Cancer; and
(E) such other criteria as the Secretary
determines, in consultation with the Secretary
of Energy, the Secretary of Agriculture, and
the Administrator of the Environmental
Protection Agency, are in accordance with the
purposes of this paragraph; and
(22) describe the jurisdiction's efforts to
coordinate its housing strategy with its transportation
planning strategies to ensure to the extent practicable
that residents of affordable housing have access to
public transportation.
* * * * * * *
----------
SECTION 24 OF THE UNITED STATES HOUSING ACT OF 1937
SEC. 24. DEMOLITION, SITE REVITALIZATION, REPLACEMENT HOUSING, AND
TENANT-BASED ASSISTANCE GRANTS FOR PROJECTS.
(a) * * *
* * * * * * *
(e) Application and Selection.--
(1) * * *
(2) Selection criteria.--The Secretary shall
establish criteria for the award of grants under this
section and shall include among the factors--
(A) * * *
* * * * * * *
(K) the extent to which the plan gives to
existing residents priority for occupancy in
dwelling units which are public housing
dwelling units, or for residents who can afford
to live in other units, priority for those
units in the revitalized community; [and]
(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 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
[(L)] (M) such other factors as the Secretary
considers appropriate.
* * * * * * *
(4) Green developments requirement.--
(A) Requirement.--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) Green communities criteria.--All
residential construction under the
proposed plan complies with the
national Green Communities criteria for
residential construction and
rehabilitation that provides criteria
for the design, development, and
operation of affordable housing, as
such criteria are in effect for
purposes of this paragraph pursuant to
subparagraph (D) at the date of the
application for the grant, or any
substantially equivalent standard or
standards as determined by the
Secretary, as follows:
(I) The proposed plan shall
comply with all items of the
national Green Communities
criteria for residential
construction and rehabilitation
that are identified as
mandatory.
(II) The proposed plan shall
comply with such other
nonmandatory items of such
national Green Communities
criteria so as to result in a
cumulative number of points
attributable to such
nonmandatory items under such
criteria of not less than--
(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.
(ii) Green buildings certification
system.--All 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 for purposes of this paragraph
pursuant to subparagraph (D) at the
time of the application for the grant.
(B) Verification.--
(i) In general.--The Secretary shall
verify, or provide for verification,
sufficient to ensure that each proposed
revitalization plan carried out with
amounts from a grant under this section
complies with the requirements under
subparagraph (A) and that the
revitalization plan is carried out in
accordance with such requirements and
plan.
(ii) Timing.--In providing for such
verification, the Secretary shall
establish procedures to ensure such
compliance with respect to each
grantee, and shall report to the
Congress with respect to the compliance
of each grantee, at each of the
following times:
(I) Not later than 6 months
after execution of the grant
agreement under this section
for the grantee.
(II) Upon completion of the
revitalization plan of the
grantee.
(C) Identification of green buildings rating
systems and levels.--
(i) In general.--For purposes of this
paragraph, the Secretary 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. The identification of
the ratings systems and levels shall be
based on the criteria specified in
clause (ii), shall identify the highest
levels the Secretary determines are
appropriate above the minimum levels
required under the systems selected.
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.
(ii) Criteria.--In identifying the
green rating systems and levels, 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) 5-year evaluation.--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).
(D) Applicability and updating of
standards.--
(i) Applicability.--Except as
provided in clause (ii) of this
subparagraph, the national Green
Communities criteria and green building
rating systems and levels referred to
in clauses (i) and (ii) of subparagraph
(A) that are in effect for purposes of
this paragraph are such criteria and
systems, and levels as in existence
upon the date of the enactment of the
Green Resources for Energy Efficient
Neighborhoods Act of 2010.
(ii) Updating.--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, any standard or
standards that the Secretary has
determined to be substantially
equivalent to such criteria, and the
green building ratings systems and
levels identified by the Secretary
pursuant to subparagraph (C).
* * * * * * *
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FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT OF 1989
* * * * * * *
TITLE XI--REAL ESTATE APPRAISAL REFORM AMENDMENTS
* * * * * * *
SEC. 1110. FUNCTIONS OF THE FEDERAL FINANCIAL INSTITUTIONS REGULATORY
AGENCIES RELATING TO APPRAISAL STANDARDS.
Each Federal financial institutions regulatory agency and the
Resolution Trust Corporation shall prescribe appropriate
standards for the performance of real estate appraisals in
connection with federally related transactions under the
jurisdiction of each such agency or instrumentality. These
rules shall require, at a minimum--
(1) that real estate appraisals be performed in
accordance with generally accepted appraisal standards
as evidenced by the appraisal standards promulgated by
the Appraisal Standards Board of the Appraisal
Foundation; [and]
(2) that such appraisals be performed in accordance
with appraisal standards that require, in determining
the value of a property, consideration of any renewable
energy sources for, or energy efficiency or energy-
conserving improvements or features of, the property;
[(2)] (3) that such appraisals shall be written
appraisals[.]; and
(4) that State-certified and licensed appraisers have
timely access, whenever practicable, to information
from the lender relevant to an appraisal of the energy
and water efficiency or conserving improvements or
features of a property, such as labels or ratings of
buildings and installed appliances, blueprints,
construction costs, incentives regarding energy- and
water-efficient components and systems installed in a
property, and third-party verifications or
representations of energy and water efficiency
performance of a property, observing all financial
privacy requirements adhered to by certified and
licensed appraisers, including section 501 of the
Gramm-Leach-Bliley Act (15 U.S.C. 6801); unless the
property owner consents to the lender, an appraiser
shall not have access to the commercial of financial
information of the owner that is privileged or
confidential.
* * * * * * *
SEC. 1113. TRANSACTIONS REQUIRING THE SERVICES OF A STATE CERTIFIED
APPRAISER.
In determining whether an appraisal in connection with a
federally related transaction shall be performed by a State
certified appraiser, an agency or instrumentality under this
title shall consider whether transactions, either individually
or collectively, are of sufficient financial or public policy
importance to the United States that an individual who performs
an appraisal in connection with such transactions should be a
State certified appraiser, except that--
(1) a State certified appraiser shall be required for
all federally related transactions having a value of
$1,000,000 or more or any real property with energy-
efficiency or energy-conserving improvements or
features; and
(2) 1-to-4 unit, single family residential appraisals
may be performed by State licensed appraisers unless
the size and complexity (such as identifying and
supporting the contribution to market value of energy-
efficiency or energy-conserving improvements or
features) requires a State certified appraiser.
* * * * * * *
ADDITIONAL VIEWS
Republicans support the stated goals of H.R. 2336, which
are 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. However, as in previous iterations of the bill,
some of H.R. 2336's provisions could impede rather than
encourage green building, making it more costly rather than
more affordable. H.R. 2336 also authorizes billions of dollars
in new Federal spending during a time of record debts and
deficits. Accordingly, we believe that changes to the
legislation are necessary before it is considered by the full
House.
The Congressional Budget Office (CBO) estimates that H.R.
2336 will cost $10 billion from 2011-2015. Included in the bill
is a $5 billion revolving loan fund to promote energy
efficiency improvements in single and multifamily dwellings; a
$2.5 billion Residential Energy Efficient block grant program;
and a $5 million outreach campaign to pay for energy efficiency
mortgage education. The legislation also includes a provision
that sets the Federal Housing Administration (FHA) on a path to
insure 50,000 green mortgages. FHA is already under
considerable financial strain, with its capital reserve ratio
near zero, and now is not the time to be placing additional
demands on its limited resources.
Another concern for Committee Republicans is the overall
cost to taxpayers from promoting ``green'' lending without
meaningful evidence from government regulators or industry
experts as to the viability of these loans. For example, the
Federal Housing Finance Agency (FHFA) suspended purchases of
certain energy retrofit loans by Fannie Mae and Freddie Mac on
July 6, 2010, citing ``the absence of robust underwriting
standards to protect homeowners and the lack of energy retrofit
standards to assist homeowners, appraisers, inspectors, and
lenders [in] determine [ing] the value of retrofit products.''
FHFA also questioned whether certain home improvements actually
produce meaningful reductions in energy consumption. For these
reasons, FHFA believes these loans pose safety and soundness
issues for the GSEs. Until these loans can be prudently and
uniformly underwritten to the satisfaction of one arm of the
federal government, other arms should not rush to start funding
them. These loans must be properly valued and judged for
volatility and environmental impact before taxpayers are
exposed to losses from potential defaults in these new
programs.
Although the GREEN Act allows some flexibility, the
standards set forth in the bill may still limit innovation in
green building. Green building requires continuous tests of new
practices and products in order to determine the most efficient
and viable strategies. The constantly evolving green building
marketplace has numerous systems currently in development that
may be more suitable for the energy efficiency projects. More
regionally appropriate methods can be implemented only when
green legislation is flexibly crafted. At issue is whether the
energy efficiency standards in the bill would impede rather
than encourage green building, as well as whether the bill's
massive new spending can be justified at a time of ballooning
federal deficits.
Spencer Bachus.
Randy Neugebauer.
J. Gresham Barrett.
Shelley Moore Capito.
Ron Paul.