[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5104 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 5104
To authorize the Secretary of Housing and Urban Development to carry
out a demonstration program to enter into budget-neutral, performance-
based contracts for energy and water conservation improvements for
multifamily residential units.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 14, 2014
Mr. Ross (for himself, Mr. Himes, Mr. Delaney, Mr. Duffy, Mr. Cleaver,
and Mrs. Wagner) introduced the following bill; which was referred to
the Committee on Financial Services
_______________________________________________________________________
A BILL
To authorize the Secretary of Housing and Urban Development to carry
out a demonstration program to enter into budget-neutral, performance-
based contracts for energy and water conservation improvements for
multifamily residential units.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Pay For Success Affordable Housing
Energy Modernization Act of 2014''.
SEC. 2. BUDGET-NEUTRAL DEMONSTRATION PROGRAM FOR ENERGY AND WATER
CONSERVATION IMPROVEMENTS AT MULTIFAMILY RESIDENTIAL
UNITS.
(a) Establishment.--The Secretary of Housing and Urban Development
(referred to in this section as the ``Secretary'') shall establish a
demonstration program under which, during the period beginning on the
date of enactment of this Act, and ending on September 30, 2017, the
Secretary may enter into budget-neutral, performance-based agreements
that result in a reduction in energy or water costs with such entities
as the Secretary determines to be appropriate under which the entities
shall carry out projects for energy or water conservation improvements
at not more than 20,000 residential units in multifamily buildings
participating in--
(1) the project-based rental assistance program under
section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f), other than assistance provided under section 8(o) of
that Act;
(2) the supportive housing for the elderly program under
section 202 of the Housing Act of 1959 (12 U.S.C. 1701q); or
(3) the supportive housing for persons with disabilities
program under section 811(d)(2) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 8013(d)(2)).
(b) Requirements.--
(1) Payments contingent on savings.--
(A) In general.--The Secretary shall provide to an
entity a payment under an agreement under this section
only during applicable years for which an energy or
water cost savings is achieved with respect to the
applicable multifamily portfolio of properties, as
determined by the Secretary, in accordance with
subparagraph (B).
(B) Payment methodology.--
(i) In general.--Each agreement under this
section shall include a pay-for-success
provision--
(I) that will serve as a payment
threshold for the term of the
agreement; and
(II) pursuant to which the
Department of Housing and Urban
Development shall share a percentage of
the savings at a level determined by
the Secretary that is sufficient to
cover the administrative costs of
carrying out this section.
(ii) Limitations.--A payment made by the
Secretary under an agreement under this section
shall--
(I) be contingent on documented
utility savings; and
(II) not exceed the utility savings
achieved by the date of the payment,
and not previously paid, as a result of
the improvements made under the
agreement.
(C) Third-party verification.--Savings payments
made by the Secretary under this section shall be based
on a measurement and verification protocol that
includes at least--
(i) establishment of a weather-normalized
and occupancy-normalized utility consumption
baseline established pre-retrofit;
(ii) annual third-party confirmation of
actual utility consumption and cost for owner-
paid utilities;
(iii) annual third-party validation of the
tenant utility allowances in effect during the
applicable year and vacancy rates for each unit
type; and
(iv) annual third-party determination of
savings to the Secretary.
(2) Term.--The term of an agreement under this section
shall be not longer than 12 years.
(3) Entity eligibility.--The Secretary shall--
(A) establish a competitive process for entering
into agreements under this section; and
(B) enter into such agreements only with entities
that demonstrate significant experience relating to--
(i) financing and operating properties
receiving assistance under a program described
in subsection (a);
(ii) oversight of energy and water
conservation programs, including oversight of
contractors; and
(iii) raising capital for energy and water
conservation improvements from charitable
organizations or private investors.
(4) Geographical diversity.--Each agreement entered into
under this section shall provide for the inclusion of
properties with the greatest feasible regional and State
variance.
(c) Plan and Reports.--
(1) Plan.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall submit to the
Committees on Appropriations of the House of Representatives
and the Senate a detailed plan for the implementation of this
section.
(2) Reports.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter, the Secretary
shall--
(A) conduct an evaluation of the program under this
section; and
(B) submit to Congress a report describing each
evaluation conducted under subparagraph (A).
(d) Funding.--For each fiscal year during which an agreement under
this section is in effect, the Secretary may use to carry out this
section any funds appropriated to the Secretary for the renewal of
contracts under a program described in subsection (a).
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