Private Investment in Housing Act of 2015

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.

Summary: Private Investment in Housing Act of 2015 Directs the Department of Housing and Urban Development (HUD) to establish a demonstration program under which, in FY2016 through FY2019, HUD may execute budget-neutral, performance-based agreements that result in a reduction in energy or water costs with appropriate entities to carry out projects for energy or water conservation improvements at up to 20,000 residential units in multifamily buildings participating in: Section 8 project-based rental assistance programs under the United States Housing Act of 1937, other than Section 8 assistance. Supportive housing for the elderly programs under the Housing Act of 1959. Or supportive housing for persons with disabilities programs under the Cranston-Gonzalez National Affordable Housing Act. Specifies requirements for payment under an agreement, which shall be contingent on documented utility savings, as well as for agreement terms, eligibility, geographical diversity, and funding for the program. Limits this demonstration program to properties subject to affordability restrictions, which may be through an affordability agreement under a new housing assistance payments contract with HUD, or through an enforceable covenant with the property owner, for at least 15 years after completion of any conservation improvements made under the program. Requires HUD to submit to specified congressional committees a detailed plan for the implementation of this Act. Authorizes HUD, for each fiscal year during which an agreement is in effect, to use any HUD appropriated funds for the renewal of contracts under the program.