H.R.5186 - To provide financing incentives to promote energy efficiency in residential buildings, and for other purposes.102nd Congress (1991-1992)
|Sponsor:||Rep. Sanders, Bernard [I-VT-At Large] (Introduced 05/14/1992)|
|Committees:||House - Banking, Finance, and Urban Affairs; Veterans' Affairs|
|Latest Action:||House - 06/01/1992 Referred to the Subcommittee on Housing and Community Development. (All Actions)|
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Text: H.R.5186 — 102nd Congress (1991-1992)All Information (Except Text)
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Introduced in House
HR 5186 IH 102d CONGRESS 2d Session H. R. 5186 To provide financing incentives to promote energy efficiency in residential buildings, and for other purposes. IN THE HOUSE OF REPRESENTATIVES May 14, 1992 Mr. SANDERS introduced the following bill; which was referred jointly to the Committees on Banking, Finance and Urban Affairs and Veterans' Affairs A BILL To provide financing incentives to promote energy efficiency in residential buildings, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. ENERGY EFFICIENT MORTGAGES. (a) DEFINITION OF ENERGY EFFICIENT MORTGAGE- Section 104 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704) is amended by adding at the end the following new paragraph: `(24) The term `energy efficient mortgage' means a mortgage that provides financial incentives for the purchase of energy efficient homes, or that provides financial incentives to make energy efficiency improvements in existing homes by incorporating the cost of such improvements in the mortgage.'. (b) UNIFORM MORTGAGE FINANCING PLAN FOR ENERGY EFFICIENCY- Section 946 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12712 note) is amended-- (1) in subsection (a), by striking `mortgage financing incentives for energy efficiency' and inserting `energy efficient mortgages (as such term is defined in section 104 of this Act)'; and (2) in subsection (b)-- (A) in the second sentence, by inserting `, but not be limited to,' after `include'; and (B) by inserting after the period at the end the following new sentence: `The Task Force shall determine whether notifying potential home purchasers of the availability of energy efficient mortgages would promote energy efficiency in residential buildings, and if so, the Task Force shall recommend appropriate notification guidelines, and agencies and organizations referred to in the preceding sentence are authorized to implement such guidelines.'. SEC. 2. ENERGY EFFICIENT MORTGAGE PILOT PROGRAM. (a) IN GENERAL- The Secretary of Housing and Urban Development and the Secretary of Veterans Affairs shall, within 6 months after the date of the enactment of this Act, jointly establish an energy efficient mortgage pilot program in 5 States, which shall promote the purchase of new and existing energy efficient residential buildings and the installation of cost-effective improvements in existing residential buildings. (b) ELIGIBILITY- To be eligibile for insurance or guarantee under the pilot program established under this section a mortgage shall meet the following requirements: (1) The base loan covered by the mortgage shall be originated by a lender in accordance with title II of the National Housing Act or title 38, United States Code, as applicable. (2) The mortgagor shall have a satisfactory income and credit record and shall have an approved application for a base loan. (3) The cost of cost-effective energy efficiency improvements to the mortgaged property may not exceed 5 percent of the value of the dwelling (not to exceed $8,000) or $4,000, whichever is greater. (c) AUTHORITY- The Secretary of Housing and Urban Development and the Secretary of Veterans Affairs may insure and guarantee energy efficient mortgages under the pilot program established under this section, and the applicable Secretary shall grant mortgagees the authority to-- (1) permit the total loan amount covered by the mortgage to exceed the maximum allowable amount under title II of the National Housing Act or title 38, United States Code, as applicable, by an amount not to exceed 100 percent of the cost of the cost-effective energy efficiency improvements, provided that the mortgagor's request to add the cost of such improvements is received by the mortgagee before funding of the base loan; (2) hold in escrow all funds provided to the mortgagor to undertake the energy efficiency improvements until the improvements are actually installed; and (3) transfer or sell the energy efficient mortgage to an appropriate secondary market agency after the mortgage is issued but before the energy efficiency improvements are actually installed. (d) PROMOTION OF PILOT PROGRAM- The Secretary of Housing and Urban Development, the Secretary of Veterans Affairs, and the Secretary of Energy shall encourage participation in the energy efficient mortgage pilot program under this section by-- (1) making information available to lending agencies and other appropriate authorities regarding the availability and benefits of energy efficient mortgages; (2) requiring mortgagees and designated lending authorities to provide written notice of the availability and benefits of the pilot program to mortgagors applying for financing in States designated by the Secretary for participation under the pilot program; and (3) requiring all applicants for insurance or guarantee of mortgages (under title II of the National Housing Act or title 38, United States Code) in States participating under the pilot program to sign a statement stating that they have been informed of the program and understand the procedures of the program and the benefits of energy efficient mortgages. (e) TRAINING PROGRAM- Not later than 9 months after the date of the enactment of this Act, the Secretary of Housing and Urban Development, in consultation with the Secretary of Veterans Affairs, the Secretary of Energy, and the National Home Energy Rating System Council and other appropriate organizations, shall establish and implement a program for training personnel at relevant lending agencies, real estate companies, and other appropriate organizations regarding the benefits of energy efficient mortgages and the operation of the pilot program under this section. (f) REPORT- Not later than 18 months after the date of the enactment of this Act, the Secretary of Housing and Urban Development and the Secretary of Veterans Affairs shall submit a report to the Congress describing the effectiveness and implementation of the energy efficient mortgage pilot program under this section, which shall include an assessment of the potential for expanding the pilot program nationwide. (g) EXPANSION OF PROGRAM- Not later than the expiration of the 2-year period beginning on the date of the implementation of the energy efficient mortgage pilot program under this section, the Secretary of Housing and Urban Development and the Secretary of Veterans Affairs shall expand the pilot program on a nationwide basis, unless the Secretaries determine that such an extension would not be practicable and submit to the Congress, before the expiration of such period, a report explaining why the program should not be expanded. (h) DEFINITIONS- For purposes of this section: (1) The term `base loan' means any mortgage loan for a residential building eligible for insurance or guarantee under title II of the National Housing Act or title 38, United States Code, that does not include the cost of cost-effective energy improvements. (2) The term `cost-effective' means, with respect to energy efficiency improvements to a residential building, the production by such improvement of an immediate and quantifiable positive cash flow and a resulting monthly energy savings greater than the resulting increase in the monthly loan payment when 100 percent of the cost of improvements is added to the base loan. For purposes of this paragraph, savings and cost-effectiveness shall be determined pursuant to a home energy rating report sufficient for purposes of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, or by other technically accurate methods. (3) The term `energy efficient mortgage' means a mortgage on a residential building that recognizes the energy savings of a home that has cost-effective energy saving construction or improvements (including solar water heaters, solar-assisted air conditioners and ventilators, super-insulation, and insulating glass and film) and that has the effect of not disqualifying a borrower who, but for the expenditures on energy saving construction or improvements, would otherwise have qualified for a base loan. (4) The term `residential building' means any attached or unattached single family residence. (i) RULE OF CONSTRUCTION- This section may not be construed to affect any other programs of the Secretary of Housing and Urban Development or the Secretary of Veterans Affairs for energy-efficient mortgages. The pilot program carried out under this section shall not replace or result in the termination of such other programs. (j) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated such sums as may be necessary to carry out this section.