Text: H.R.5186 — 102nd Congress (1991-1992)All Information (Except Text)

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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.

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