Solar and Water-Efficient Homes Act of 2015

Summary: Solar and Water-Efficient Homes Act of 2015  This bill amends the National Housing Act, with respect to Department of Housing and Urban Development (HUD) insurance of financial institutions which finance housing alterations, repairs, improvements, or conversions, to increase the premium charge from 1% per annum of the net proceeds of a loan, advance of credit, or purchase, for the term of the obligation, to 1.5% per year of the remaining insured principal balance, with a specified exclusion and without taking into account delinquent payments or prepayments.  There may also be a single upfront additional premium charge of 2.75% of the original insured principal obligation with respect to existing single-family or multi-family structures. HUD may increase the limitations on premium payments to percentages greater than these but only if necessary, and not in excess of the minimum increase necessary to maintain a negative credit subsidy for insurance of loans, advances of credit, or certain purchases. The maximum insurance amount (10% of the total amount of such loans, advances of credit, and purchases) any financial institution may receive is repealed. The maximum obligation of an individual loan, advance of credit, or purchase that may be insured for improvements: (1) to an existing single-family dwelling is increased from $25,000 to $42,000; and (2) to an existing multi-family structure is increased from $60,000 to $100,380, with an average amount of $20,076 (currently $12,000) per family unit. HUD shall develop a method of indexing to increase these dollar amount limitations annually, based on consumer price index data on housing collected by the Bureau of Labor Statistics of the Department of Labor. These dollar amount limitations may also be increased by up to 150%, not to exceed the dollar amount of the loan used for purchasing or installing solar energy systems or for purchasing or implementing water conserving improvements.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Solar and Water-Efficient Homes Act 
of 2015''.

SEC. 2. MODIFICATION TO PREMIUM CHARGES ON FINANCING CERTAIN 
              ALTERATIONS, REPAIRS, AND IMPROVEMENTS TO, OR CONVERSIONS 
              OF, EXISTING STRUCTURES.

    Subsection (f) of section 2 of the National Housing Act (12 U.S.C. 
1703(f)) is amended--
            (1) in paragraph (1), by striking ``1 per centum per annum 
        of the net proceeds of such loan, advance of credit, or 
        purchase, for the term of such obligation'' and inserting ``1.5 
        per centum per year of the remaining insured principal balance 
        (excluding the portion of such balance attributable to the 
        premium that may be collected under paragraph (3) and without 
        taking into account delinquent payments or prepayments)'';
            (2) by inserting at the end the following new paragraphs:
            ``(3) Upfront premium charge for financing alterations, 
        repairs, improvements, or conversions.--In addition to the 
        annual premium collected under paragraph (1), in the case of a 
        loan, advance of credit, or purchase in connection with 
        insurance granted under subparagraph (A)(i) or subparagraph (B) 
        of subsection (b)(1), the Secretary may, at the time of the 
        making of the loan, advance of credit, or purchase, charge a 
        single premium payment in an amount not to exceed 2.75 percent 
        of the amount of the original insured principal obligation. 
        Such premium charge shall be payable in advance by the 
        financial institution in such manner as may be prescribed by 
        the Secretary.
            ``(4) Increase in premium charge limitations for financing 
        alterations, repairs, and improvements, or conversions.--The 
        Secretary may increase the limitations on premium payments to 
        percentages greater than those set forth in paragraphs (1) and 
        (3), but only if necessary, and not in excess of the minimum 
        increase necessary (as determined based upon risk to the 
        Federal Government under existing underwriting requirements) to 
        maintain a negative credit subsidy for insurance of loans, 
        advances of credit, or purchases under subparagraph (A)(i) or 
        subparagraph (B) of subsection (b)(1).''.

SEC. 3. MODIFICATION TO CERTAIN INSURANCE CAPS AND LOAN LIMITATIONS.

    (a) Modification to Cap on Insurance to Financial Institutions.--
The second sentence of section 2(a) of the National Housing Act (12 
U.S.C. 1703(a)) is amended by striking ``in no case'' and all that 
follows through the period at the end and inserting ``the Secretary 
may, by notice, establish additional requirements relating to the 
insurance granted under this section by any such financial 
institution.''.
    (b) Modification to Loan Limitation for Financing Certain 
Alterations, Repairs, and Improvements to, or Conversions of, Existing 
Structures.--Subsection (b) of section 2 of such Act (12 U.S.C. 
1703(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A)(i), by striking ``$25,000'' 
                and inserting ``$42,000''; and
                    (B) in subparagraph (B)--
                            (i) by striking ``$60,000'' and inserting 
                        ``$100,380''; and
                            (ii) by striking ``$12,000'' and inserting 
                        ``$20,076''; and
                    (C) in the matter after and below subparagraph (G), 
                by adding at the end the following: ``The Secretary 
                may, by notice, annually, increase the dollar amount 
                limitation in subparagraphs (A)(i) and (B) (as such 
                limitation may have been previously adjusted under this 
                sentence) in accordance with the index established 
                pursuant to paragraph (12).''; and
            (2) by adding at the end the following new paragraph:
            ``(12) Annual indexing of loans for financing alterations, 
        repairs, and improvements to, or conversions of, existing 
        structures.--Not later than 1 year after the date of enactment 
        of the `Solar and Water-Efficient Homes Act of 2015', the 
        Secretary shall develop a method of indexing to annually 
        increase the dollar amount limitations established in 
        subparagraphs (A)(i) and (B) of paragraph (1). Such index shall 
        be based on consumer price index data on housing collected by 
        the Bureau of Labor Statistics.''.
    (c) Technical Amendments.--Section 2 of such Act (12 U.S.C. 1703) 
is amended--
            (1) in the fourth undesignated paragraph of subsection 
        (a)--
                    (A) in paragraph (2), by striking ``and'' at the 
                end; and
                    (B) in paragraph (3), by striking the period at the 
                end and inserting ``; and''; and
            (2) in subsection (b)(1)--
                    (A) in subparagraph (D), by striking ``and'' at the 
                end; and
                    (B) in subparagraph (E), by striking the period at 
                the end and inserting ``; and''.

SEC. 4. MODIFICATION TO LOAN LIMITATION FOR ENERGY EFFICIENCY AND WATER 
              CONSERVING HOME IMPROVEMENTS.

    Subsection (b) of section 2 of the National Housing Act (12 U.S.C. 
1703(b)), as amended by section 3(b) of this Act, is further amended by 
adding at the end the following new paragraph:
            ``(13) Adjustment for energy conserving improvements or the 
        installation of solar energy systems.--The dollar amount 
        limitations otherwise applicable under subparagraph (A)(i) and 
        subparagraph (B) of paragraph (1) (as adjusted by paragraph 
        (12)) may be increased up to 150 percent of such limitation, 
        but such increase may not exceed the dollar amount of the loan 
        that will be used for purchasing or implementing energy 
        conserving improvements or purchasing or installing solar 
        energy systems (as such terms are defined in the last paragraph 
        of subsection (a)), or for purchasing or implementing water 
        conserving improvements (as defined by the Secretary).''.