[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2997 Referred in Senate (RFS)]
114th CONGRESS
1st Session
H. R. 2997
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 15, 2015
Received; read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
AN ACT
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 ``Private Investment in Housing Act of
2015''.
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
(in this section referred to as the ``Secretary'') shall establish a
demonstration program under which the Secretary may execute budget-
neutral, performance-based agreements in fiscal years 2016 through 2019
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 that--
(I) shall serve as a payment
threshold for the term of the
agreement; and
(II) requires that payments shall
be contingent on realized cost savings
associated with reduced utility
consumption in the participating
properties.
(ii) Limitations.--A payment made by the
Secretary under an agreement under this
section--
(I) shall be contingent on
documented utility savings; and
(II) shall 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
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.
An agreement under this section with an entity shall
provide that the entity shall cover costs associated
with third-party verification under this subparagraph.
(2) Terms of performance-based agreements.--A performance-
based agreement under this section shall include--
(A) the period that the agreement will be in effect
and during which payments may be made, which may not be
longer than 12 years;
(B) the performance measures that will serve as
payment thresholds during the term of the agreement;
(C) an audit protocol for the properties covered by
the agreement;
(D) a requirement that payments shall be contingent
on realized cost savings associated with reduced
utility consumption in the participating properties;
and
(E) such other requirements and terms as determined
to be appropriate by the Secretary.
(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, either jointly or individually, demonstrate
significant experience relating to--
(i) financing or operating properties
receiving assistance under a program identified
in subsection (a);
(ii) oversight of energy or water
conservation programs, including oversight of
contractors; and
(iii) raising capital for energy or 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.
(5) Properties.--A property may only be included in the
demonstration under this section only if the property is
subject to affordability restrictions for at least 15 years
after the date of the completion of any conservation
improvements made to the property under the demonstration
program. Such restrictions may be made through an extended
affordability agreement for the property under a new housing
assistance payments contract with the Secretary of Housing and
Urban Development or through an enforceable covenant with the
owner of the property.
(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 and Financial Services of the
House of Representatives and the Committees on Appropriations
and Banking, Housing, and Urban Affairs of 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).
Passed the House of Representatives July 14, 2015.
Attest:
KAREN L. HAAS,
Clerk.