IB 

Union Calendar No. 361 

111TH CONGRESS 

2D SESSION H. R. 2336 

[Report No. 111–619] 

To encourage energy efficiency and conservation and development of renewable 

energy sources for housing, commercial structures, and other buildings, 

and to create sustainable communities. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 7, 2009 

Mr. PERLMUTTER (for himself, Mrs. BIGGERT, Mr. BLUMENAUER, Mr. 

ELLISON, Mr. FRANK of Massachusetts, Mr. GUTIERREZ, Mr. HODES, 

Mr. ISRAEL, Mr. MARKEY of Massachusetts, Mrs. MCCARTHY of New 

York, Mr. MCNERNEY, Mr. SHERMAN, Mr. SIRES, Ms. TSONGAS, and 

Mr. HIMES) introduced the following bill; which was referred to the Committee on Financial Services 

SEPTEMBER 22, 2010 

Additional sponsors: Mr. KLEIN of Florida, Mr. WILSON of Ohio, Mr. MCGOVERN, Mr. FILNER, Mr. ROTHMAN of New Jersey, Ms. ZOE LOFGREN of 

California, Mr. MOORE of Kansas, Mr. WU, and Mr. LARSON of Connecticut 

SEPTEMBER 22, 2010 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on May 7, 2009] 


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A BILL 

To encourage energy efficiency and conservation and development of renewable energy sources for housing, commercial structures, and other buildings, and to create sustainable communities. 


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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Green Resources for Energy Efficient Neighborhoods Act 

6 of 2010’’ or the ‘‘GREEN Act of 2010’’. 

7 (b) TABLE OF CONTENTS.—The table of contents for 

8 this Act is as follows: 

Sec. 1. Short title and table of contents. 

Sec. 2. Definitions. 

Sec. 3. Implementation of energy efficiency participation incentives for HUD 

programs. 

Sec. 4. Basic HUD energy efficiency standards and standards for additional 

credit. 

Sec. 5. Energy efficiency and conservation demonstration program for multifamily housing projects assisted with project-based rental assistance. 

Sec. 6. Consideration of energy efficiency under FHA mortgage insurance programs and Native American and Native Hawaiian loan guarantee programs. 

Sec. 7. Energy-efficient mortgages and location-efficient mortgages education and 

outreach campaign. 

Sec. 8. Collection of information on energy-efficient and location-efficient mortgages through Home Mortgage Disclosure Act. 

Sec. 9. Ensuring availability of homeowners insurance for homes not connected 

to electricity grid. 

Sec. 10. Mortgage incentives for energy-efficient multifamily housing. 

Sec. 11. Energy-efficient certifications for manufactured housing with mortgages. 

Sec. 12. Assisted housing energy loan pilot program. 

Sec. 13. Making it green. 

Sec. 14. Residential energy efficiency block grant program. 

Sec. 15. Including sustainable development and transportation strategies in comprehensive housing affordability strategies. 

Sec. 16. Grant program to increase sustainable low-income community development capacity. 

Sec. 17. HOPE VI green developments requirement. 

Sec. 18. Consideration of energy efficiency improvements in appraisals. 

Sec. 19. Housing Assistance Council. 

Sec. 20. Rural housing and economic development assistance. 

Sec. 21. Loans to States and Indian tribes to carry out renewable energy sources 

activities. 

Sec. 22. GAO reports on availability of affordable mortgages. 

Sec. 23. Public housing energy cost report. 

Sec. 24. Insurance coverage for loans for financing of renewable energy systems 

leased for residential use. 

Sec. 25. Green guarantees. 


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Sec. 26. Green dividend program for federally assisted rental housing. 

Sec. 27. Use of residual receipts and reserve for replacements funds for green retrofits of federally assisted rental housing. 

Sec. 28. Study on building codes effects on construction and installation of distributive energy generation measures and water efficiency measures. 

Sec. 29. Community building code administration grants. 

1 SEC. 2. DEFINITIONS. 

2 For purposes of this Act, the following definitions shall 

3 apply: 

4 (1) ENERGY-EFFICIENT MORTGAGE.—The term 

5 ‘‘energy-efficient mortgage’’ means— 

6 (A) a mortgage loan under which the in7 come of the borrower, for purposes of qualifica8 tion for such loan, is considered to be increased 

9 by not less than $1 for each $1 of savings pro10 jected to be realized by the borrower as a result 

11 of cost-effective energy-saving design, construc12 tion or improvements (including use of renew13 able energy sources, such as solar, geothermal, 

14 biomass, and wind, super-insulation, energy-sav15 ing windows, insulating glass and film, and ra16 diant barrier) for the home for which the loan is 

17 made; or 

18 (B) such other mortgage loan that recog19 nizes such savings as the Secretary may provide. 

20 (2) GREEN BUILDING STANDARDS.—The term 

21 ‘‘green building standards’’ means standards to re22 quire use of sustainable design principles to reduce 


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1 the use of nonrenewable resources, encourage energy2 efficient construction and rehabilitation and the use 

3 of renewable energy resources, minimize the impact of 

4 development on the environment, and improve indoor 

5 air quality. 

6 (3) HUD.—The term ‘‘HUD’’ means the Depart7 ment of Housing and Urban Development. 

8 (4) HUD ASSISTANCE.—The term ‘‘HUD assist9 ance’’ means financial assistance that is awarded, 

10 competitively or noncompetitively, allocated by for11 mula, or provided by HUD rental assistance, direct 

12 loan, or capital grant. 

13 (5) LOCATION-EFFICIENT MORTGAGE.—The term 

14 ‘‘location-efficient mortgage’’ means— 

15 (A) a mortgage loan under which— 

16 (i) the income of the borrower, for pur17 poses of qualification for such loan, is con18 sidered to be increased by not less than $1 

19 for each $1 of savings projected to be real20 ized by the borrower because the location of 

21 the home for which loan is made will result 

22 in decreased transportation costs for the 

23 household of the borrower; or 

24 (ii) the sum of the principal, interest, 

25 taxes, and insurance due under the mortVerDate Mar 15 2010 22:52 Sep 22, 2010 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6203 E:\BILLS\H2336.RH H2336

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1 gage loan is decreased by not less than $1 

2 for each $1 of savings projected to be real3 ized by the borrower because the location of 

4 the home for which loan is made will result 

5 in decreased transportation costs for the 

6 household of the borrower; or 

7 (B) such other mortgage loan that recog8 nizes such savings as the Secretary may provide. 

9 (6) NONRESIDENTIAL STRUCTURE.—The term 

10 ‘‘nonresidential structures’’ means only nonresidential 

11 structures that are appurtenant to single-family or 

12 multifamily housing residential structures, or those 

13 that are funded by the Secretary of Housing and 

14 Urban Development through the HUD Community 

15 Development Block Grant program. 

16 (7) SECRETARY.—The term ‘‘Secretary’’, unless 

17 otherwise specified, means the Secretary of Housing 

18 and Urban Development. 

19 SEC. 3. IMPLEMENTATION OF ENERGY EFFICIENCY PAR20 TICIPATION INCENTIVES FOR HUD PRO21 GRAMS. 

22 (a) IN GENERAL.—Not later than 180 days after the 

23 date of the enactment of this Act, the Secretary shall issue 

24 such regulations as may be necessary to establish annual 

25 energy efficiency participation incentives consistent with 


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1 this Act to encourage participants in programs adminis2 tered by the Secretary, including recipients under programs 

3 for which HUD assistance is provided, to achieve substan4 tial improvements in energy efficiency. 

5 (b) REQUIREMENT FOR APPROPRIATION OF FUNDS.— 

6 The requirement under subsection (a) for the Secretary to 

7 provide annual energy efficiency participation incentives 

8 pursuant to the provisions of this Act shall be subject to 

9 the annual appropriation of necessary funds. 

10 SEC. 4. BASIC HUD ENERGY EFFICIENCY STANDARDS AND 

11 STANDARDS FOR ADDITIONAL CREDIT. 

12 (a) BASIC HUD STANDARD.— 

13 (1) RESIDENTIAL STRUCTURES.—A residential 

14 single-family or multifamily structure shall be consid15 ered to comply with the energy efficiency standards 

16 under this subsection if— 

17 (A) the structure complies with the applica18 ble provisions of the American Society of Heat19 ing, Refrigerating, and Air-Conditioning Engi20 neers Standard 90.1–2007, as such standard or 

21 successor standard is in effect for purposes of this 

22 section pursuant subsection (c); 

23 (B) the structure complies with the applica24 ble provisions of the 2009 International Energy 

25 Conservation Code, or the requirements of a 


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1 standard that provides equal or greater energy 

2 savings, as such standard or successor standard 

3 is in effect for purposes of this section pursuant 

4 subsection (c); 

5 (C) in the case only of an existing structure, 

6 where determined cost effective, the structure has 

7 undergone rehabilitation or improvements, com8 pleted after the date of the enactment of this Act, 

9 and the energy consumption for the structure has 

10 been reduced by at least 20 percent from the pre11 vious level of consumption, as determined in ac12 cordance with energy audits performed both be13 fore and after any rehabilitation or improve14 ments undertaken to reduce such consumption; or 

15 (D) the structure complies with the applica16 ble provisions of such other energy efficiency re17 quirements, standards, criteria, or ratings sys18 tems as the Secretary may adopt and apply by 

19 regulation, as may be necessary, for purposes of 

20 this section for specific types of residential sin21 gle-family or multifamily structures or other22 wise, except that the Secretary shall make a de23 termination regarding whether to adopt and 

24 apply any such requirements, standards, cri25 teria, or rating system for purposes of this secVerDate Mar 15 2010 22:52 Sep 22, 2010 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6203 E:\BILLS\H2336.RH H2336

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1 tion not later than the expiration of the 180-day 

2 period beginning upon the date of receipt of any 

3 written request, made in such form as the Sec4 retary shall provide, for such adoption and ap5 plication. 

6 In addition to compliance with any of subparagraphs 

7 (A) through (D), the Secretary shall by regulation re8 quire, for any newly constructed residential single9 family or multifamily structure to be considered to 

10 comply with the energy efficiency standards under 

11 this subsection, that the structure have appropriate 

12 electrical outlets with the facility and capacity to re13 charge a standard electric passenger vehicle, including 

14 an electric hybrid vehicle, where such vehicle would 

15 normally be parked. 

16 (2) NONRESIDENTIAL STRUCTURES.—For pur17 poses of this section, the Secretary shall identify and 

18 adopt by regulation, as may be necessary, energy effi19 ciency requirements, standards, criteria, or rating 

20 systems applicable to nonresidential structures that 

21 are constructed or rehabilitated with HUD assistance. 

22 A nonresidential structure shall be considered to com23 ply with the energy efficiency standards under this 

24 subsection if the structure complies with the applica25 ble provisions of any such energy efficiency requireVerDate Mar 15 2010 22:52 Sep 22, 2010 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6203 E:\BILLS\H2336.RH H2336

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1 ments, standards, criteria, or rating systems identi2 fied and adopted by the Secretary pursuant to this 

3 paragraph, as such standards are in effect for pur4 poses of this section pursuant to subsection (c). 

5 (3) EFFECT.—Nothing in this subsection may be 

6 construed to require any structure to comply with 

7 any standard established or adopted pursuant to this 

8 subsection, or identified in this subsection, or to pro9 vide any benefit or credit under any Federal program 

10 for any structure that complies with any such stand11 ard, except to the extent that— 

12 (A) any provision of law other than this 

13 subsection provides a benefit or credit under a 

14 Federal program for compliance with a standard 

15 established or adopted pursuant to this sub16 section, or identified in this subsection; or 

17 (B) the Secretary specifically provides pur18 suant to subsection (c) for the applicability of 

19 such standard. 

20 (b) ENHANCED ENERGY EFFICIENCY STANDARDS FOR

21 PURPOSES OF PROVIDING ADDITIONAL CREDIT UNDER

22 CERTAIN FEDERALLY ASSISTED HOUSING PROGRAMS.— 

23 (1) PURPOSE AND EFFECT.— 

24 (A) PURPOSE.—The purpose of this sub25 section is to identify energy efficiency and conVerDate Mar 15 2010 22:52 Sep 22, 2010 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6203 E:\BILLS\H2336.RH H2336

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1 servation standards and green building stand2 ards that— 

3 (i) provide for greater energy efficiency 

4 and conservation in structures than is re5 quired for compliance with the energy effi6 ciency standards under subsection (a) and 

7 then in effect; 

8 (ii) provide for green and sustainable 

9 building standards not required by such 

10 standards; and 

11 (iii) can be used in connection with 

12 Federal housing, housing finance, and de13 velopment programs to provide incentives 

14 for greater energy efficiency and conserva15 tion and for green and sustainable building 

16 methods, elements, practices, and materials. 

17 (B) EFFECT.—Nothing in this subsection 

18 may be construed to require any structure to 

19 comply with any standard established pursuant 

20 to this subsection or to provide any benefit or 

21 credit under any Federal program for any struc22 ture, except to the extent that any provision of 

23 law other than this subsection provides a benefit 

24 or credit under a Federal program for compliVerDate Mar 15 2010 22:52 Sep 22, 2010 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6203 E:\BILLS\H2336.RH H2336

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1 ance with a standard established pursuant to 

2 this subsection. 

3 (2) COMPLIANCE.—A residential or nonresiden4 tial structure shall be considered to comply with the 

5 enhanced energy efficiency and conservation stand6 ards or the green building standards under this sub7 section, to the extent that such structure complies with 

8 the applicable provisions of the standards under 

9 paragraph (3) or (4), respectively (as such standards 

10 are in effect for purposes of this section, pursuant to 

11 paragraph (7)), in a manner that is not required for 

12 compliance with the energy efficiency standards 

13 under subsection (a) then in effect and subject to the 

14 Secretary’s determination of which standards are ap15 plicable to which structures. 

16 (3) ENERGY EFFICIENCY AND CONSERVATION

17 STANDARDS.—The energy efficiency and conservation 

18 standards under this paragraph are as follows: 

19 (A) RESIDENTIAL STRUCTURES.—With re20 spect to residential structures: 

21 (i) NEW CONSTRUCTION.—For new 

22 construction, the Energy Star standards es23 tablished by the Environmental Protection 

24 Agency, as such standards are in effect for 


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1 purposes of this subsection pursuant to 

2 paragraph (7); 

3 (ii) EXISTING STRUCTURES.—For ex4 isting structures, a reduction in energy con5 sumption from the previous level of con6 sumption for the structure, as determined in 

7 accordance with energy audits performed 

8 both before and after any rehabilitation or 

9 improvements undertaken to reduce such 

10 consumption, that exceeds the reduction nec11 essary for compliance with the energy effi12 ciency standards under subsection (a) then 

13 in effect and applicable to existing struc14 tures. 

15 (B) NONRESIDENTIAL STRUCTURES.—With 

16 respect to nonresidential structures, such energy 

17 efficiency and conservation requirements, stand18 ards, criteria, or rating systems for nonresiden19 tial structures as the Secretary shall identify 

20 and adopt by regulation, as may be necessary, 

21 for purposes of this paragraph. 

22 (4) GREEN BUILDING STANDARDS.—The green 

23 building standards under this paragraph are as fol24 lows: 


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1 (A) The national Green Communities cri2 teria for residential construction that provides 

3 criteria for the design, development, and oper4 ation of affordable housing, as such criteria or 

5 successor criteria is in effect for purposes of this 

6 section pursuant to paragraph (7). 

7 (B) The LEED for Neighborhood Develop8 ment rating system for the LEED for New Con9 struction rating system, the LEED for Homes 

10 rating system, the LEED for Core and Shell rat11 ing system, as applicable, as such systems or suc12 cessor systems are in effect for purposes of this 

13 section pursuant to paragraph (7). 

14 (C) The Green Globes assessment and rating 

15 system of the Green Buildings Initiative. 

16 (D) For manufactured housing, Energy 

17 Star rating with respect to fixtures, appliances, 

18 and equipment in such housing, as such stand19 ard or successor standard is in effect for pur20 poses of this section pursuant to paragraph (7). 

21 (E) The 2008 National Green Building 

22 Standard (ICC 700). 

23 (F) Any other requirements, standards, cri24 teria, or rating systems for green building or 

25 sustainability as the Secretary may identify and 


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1 adopt by regulation, as may be necessary for 

2 purposes of this paragraph, except that the Sec3 retary shall make a determination regarding 

4 whether to adopt and apply any such require5 ments, standards, criteria, or rating system for 

6 purposes of this section not later than the expira7 tion of the 180-day period beginning upon date 

8 of receipt of any written request, made in such 

9 form as the Secretary shall provide, for such 

10 adoption and application. 

11 (5) GREEN BUILDING.—For purposes of this sub12 section, the term ‘‘green building’’ means a building 

13 that meets the green building standards under para14 graph (4). 

15 (6) ENERGY AUDITS.—The Secretary shall estab16 lish standards and requirements for energy audits for 

17 purposes of paragraph (3)(A)(ii) and, in establishing 

18 such standards, may consult with any advisory com19 mittees established pursuant to section 5(c)(2) of this 

20 Act. 

21 (7) APPLICABILITY AND UPDATING OF STAND22 ARDS.— 

23 (A) APPLICABILITY.—Except as provided in 

24 subparagraph (B), the requirements, standards, 

25 criteria, and rating systems referred to in this 


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1 subsection that are in effect for purposes of this 

2 subsection are such requirements, standards, cri3 teria, and systems are as in existence upon the 

4 date of the enactment of this Act. 

5 (B) UPDATING.—For purposes of this sec6 tion, the Secretary may adopt and apply by reg7 ulation, as may be necessary, future amendments 

8 and supplements to, and editions of, the require9 ments, standards, criteria, and rating systems 

10 referred to in this subsection. 

11 (c) AUTHORITY OF SECRETARY TO APPLY STANDARDS

12 TO FEDERALLY ASSISTED HOUSING AND PROGRAMS.— 

13 (1) HUD HOUSING AND PROGRAMS.—The Sec14 retary of Housing and Urban Development may, by 

15 regulation, provide for the applicability of the energy 

16 efficiency standards under subsection (a), the en17 hanced energy efficiency and conservation standards 

18 and green building standards under subsection (b), 

19 or, in the case of deconstruction, any applicable pro20 visions of and points provided under the LEED for 

21 New Construction and Major Renovation rating sys22 tem, or any combination thereof, with respect to any 

23 covered federally assisted housing described in para24 graph (3)(A) or any HUD assistance. 


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1 (2) RURAL HOUSING.—The Secretary of Agri2 culture may, by regulation, provide for the applica3 bility of the energy efficiency standards under sub4 section (a), the enhanced energy efficiency and con5 servation standards and green building standards 

6 under subsection (b), or, in the case of deconstruction, 

7 any applicable provisions of and points provided 

8 under the LEED for New Construction and Major 

9 Renovation rating system, or any combination there10 of, with respect to any covered federally assisted hous11 ing described in paragraph (3)(B) or any assistance 

12 provided with respect to rural housing by the Rural 

13 Housing Service of the Department of Agriculture. 

14 (3) COVERED FEDERALLY ASSISTED HOUSING.— 

15 For purposes of this subsection, the term ‘‘covered fed16 erally assisted housing’’ means— 

17 (A) any residential or nonresidential struc18 ture for which any HUD assistance is provided; 

19 and 

20 (B) any new construction of single-family 

21 or multifamily housing (other than manufac22 tured homes) subject to mortgages insured, guar23 anteed, or made by the Secretary of Agriculture 

24 under title V of the Housing Act of 1949 (42 

25 U.S.C. 1471 et seq.). 


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1 (d) DECONSTRUCTION.—The Secretary of Housing and 

2 Urban Development and the Secretary of Agriculture, as 

3 applicable, shall require that any deconstruction activity 

4 conducted under or pursuant to any provision of this Act 

5 or any amendment made by this Act complies with such 

6 deconstruction standards as such Secretaries shall establish 

7 for purposes of this section, taking into consideration the 

8 applicable provisions of and points provided under the 

9 LEED for New Construction and Major Renovation rating 

10 system. Such standards may be updated and revised from 

11 time to time, by regulation. 

12 SEC. 5. ENERGY EFFICIENCY AND CONSERVATION DEM13 ONSTRATION PROGRAM FOR MULTIFAMILY 

14 HOUSING PROJECTS ASSISTED WITH 

15 PROJECT-BASED RENTAL ASSISTANCE. 

16 (a) AUTHORITY.—For multifamily housing projects for 

17 which project-based rental assistance is provided under a 

18 covered multifamily assistance program, the Secretary 

19 shall, subject to the availability of amounts provided in ad20 vance in appropriation Acts, carry out a program to dem21 onstrate the effectiveness of funding a portion of the costs 

22 of meeting the enhanced energy efficiency standards under 

23 section 4(b). At the discretion of the Secretary, the dem24 onstration program may include incentives for housing that 

25 is assisted with Indian housing block grants provided purVerDate Mar 15 2010 22:52 Sep 22, 2010 Jkt 089200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6203 E:\BILLS\H2336.RH H2336

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1 suant to the Native American Housing Assistance and Self2 Determination Act of 1996, but only to the extent that such 

3 inclusion does not violate such Act, its regulations, and the 

4 goal of such Act of tribal self-determination. 

5 (b) GOALS.—The demonstration program under this 

6 section shall be carried out in a manner that— 

7 (1) protects the financial interests of the Federal 

8 Government; 

9 (2) reduces the proportion of funds provided by 

10 the Federal Government and by owners and residents 

11 of multifamily housing projects that are used for costs 

12 of utilities for the projects; 

13 (3) encourages energy efficiency and conservation 

14 by owners and residents of multifamily housing 

15 projects and installation of renewable energy improve16 ments, such as improvements providing for use of 

17 solar, wind, geothermal, or biomass energy sources; 

18 (4) creates incentives for project owners to carry 

19 out such energy efficiency renovations and improve20 ments by allowing a portion of the savings in oper21 ating costs resulting from such renovations and im22 provements to be retained by the project owner, not23 withstanding otherwise applicable limitations on 

24 dividends; 


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1 (5) promotes the installation, in existing residen2 tial buildings, of energy-efficient and cost-effective im3 provements and renewable energy improvements, such 

4 as improvements providing for use of solar, wind, 

5 geothermal, or biomass energy sources; 

6 (6) tests the efficacy of a variety of energy effi7 ciency measures for multifamily housing projects of 

8 various sizes and in various geographic locations; 

9 (7) tests methods for addressing the various, and 

10 often competing, incentives that impede owners and 

11 residents of multifamily housing projects from work12 ing together to achieve energy efficiency or conserva13 tion; and 

14 (8) creates a database of energy efficiency and 

15 conservation, and renewable energy, techniques, en16 ergy-savings management practices, and energy effi17 ciency and conservation financing vehicles. 

18 (c) APPROACHES.—In carrying out the demonstration 

19 program under this section, the Secretary may— 

20 (1) enter into agreements with the Building 

21 America Program of the Department of Energy and 

22 other consensus committees under which such pro23 grams, partnerships, or committees assume some or 

24 all of the functions, obligations, and benefits of the 

25 Secretary with respect to energy savings; 


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1 (2) establish advisory committees to advise the 

2 Secretary and any such third-party partners on tech3 nological and other developments in the area of en4 ergy efficiency and the creation of an energy effi5 ciency and conservation credit facility and other fi6 nancing opportunities, which committees shall include 

7 representatives of homebuilders, realtors, multifamily 

8 housing development and management areas, archi9 tects, nonprofit housing organizations, environmental 

10 protection organizations, renewable energy organiza11 tions, and advocacy organizations for the elderly and 

12 persons with disabilities; any advisory committees es13 tablished pursuant to this paragraph shall not be sub14 ject to the Federal Advisory Committee Act (5 U.S.C. 

15 App.); 

16 (3) approve, for a period not to exceed 10 years, 

17 additional adjustments in the maximum monthly 

18 rents or additional project rental assistance, or addi19 tional Indian housing block grant funds under the 

20 Native American Housing Assistance and Self-Deter21 mination Act of 1996, as applicable, for dwelling 

22 units in multifamily housing projects that are pro23 vided project-based rental assistance under a covered 

24 multifamily assistance program, in such amounts as 

25 may be necessary to amortize all or a portion of the 


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1 cost of energy efficiency and conservation measures 

2 for such projects; 

3 (4) develop a competitive process for the award 

4 of such additional assistance for multifamily housing 

5 projects seeking to implement energy efficiency, re6 newable energy sources, or conservation measures; 

7 such competitive process shall not be limited to assess 

8 the first costs, but shall assess the degree to which ap9 plicants will meet each of the goals of the demonstra10 tion program under subsection (b); and 

11 (5) waive or modify any existing statutory or 

12 regulatory provision that the Secretary administers 

13 that would otherwise impair the implementation or 

14 effectiveness of the demonstration program under this 

15 section, including provisions relating to methods for 

16 rent adjustments, comparability standards, maximum 

17 rent schedules, and utility allowances; notwith18 standing the preceding provisions of this paragraph, 

19 the Secretary may not waive any statutory require20 ment relating to fair housing, nondiscrimination, 

21 labor standards, or the environment, except pursuant 

22 to existing authority to waive nonstatutory environ23 mental and other applicable requirements. 

24 (d) REQUIREMENT.—During the 5-year period begin25 ning on the date of the enactment of this Act, the Secretary 


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1 shall carry out demonstration programs under this section 

2 with respect to not fewer than 50,000 dwelling units. 

3 (e) SELECTION.— 

4 (1) SCOPE.—In order to provide a broad and 

5 representative profile for use in designing a program 

6 which can become operational and effective nation7 wide, the Secretary shall carry out the demonstration 

8 program under this section with respect to dwelling 

9 units located in a wide variety of geographic areas 

10 and project types assisted by the various covered mul11 tifamily assistance programs and using a variety of 

12 energy efficiency and conservation and funding tech13 niques to reflect differences in climate, types of dwell14 ing units and technical and scientific methodologies, 

15 and financing options. The Secretary shall ensure 

16 that the geographic areas included in the demonstra17 tion program include dwelling units on Indian lands 

18 (as such term is defined in section 2601 of the Energy 

19 Policy Act of 1992 (25 U.S.C. 3501), to the extent 

20 that dwelling units on Indian land have the type of 

21 residential structures that are the focus of the dem22 onstration program. 

23 (2) PRIORITY.—The Secretary shall provide pri24 ority for selection for participation in the program 

25 under this section based on the extent to which, as a 


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1 result of assistance provided, the project will comply 

2 with the energy efficiency standards under subsection 

3 (a), (b), or (c) of section 4 of this Act. 

4 (f) USE OF EXISTING PARTNERSHIPS.—To the extent 

5 feasible, the Secretary shall— 

6 (1) utilize the Partnership for Advancing Tech7 nology in Housing of the Department of Housing and 

8 Urban Development to assist in carrying out the re9 quirements of this section and to provide education 

10 and outreach regarding the demonstration program 

11 authorized under this section; and 

12 (2) consult with the Secretary of Energy, the Ad13 ministrator of the Environmental Protection Agency, 

14 and the Secretary of the Army regarding utilizing the 

15 Building America Program of the Department of En16 ergy, the Energy Star Program, and the Army Corps 

17 of Engineers, respectively, to determine the manner in 

18 which they might assist in carrying out the goals of 

19 this section and providing education and outreach re20 garding the demonstration program authorized under 

21 this section. 

22 (g) LIMITATION.—No amounts made available under 

23 the American Recovery and Reinvestment Act of 2009 (Pub24 lic Law 111–5) may be used to carry out the demonstration 

25 program under this section. 


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1 (h) REPORTS.— 

2 (1) ANNUAL.—Within 2 years after the date of 

3 the enactment of this Act, and for each year thereafter 

4 during the term of the demonstration program, the 

5 Secretary shall submit a report to the Congress annu6 ally that describes and assesses the demonstration 

7 program under this section. 

8 (2) FINAL.—Not later than 6 months after the 

9 expiration of the 4-year period described in subsection 

10 (d), the Secretary shall submit a final report to the 

11 Congress assessing the demonstration program, 

12 which— 

13 (A) shall assess the potential for expanding 

14 the demonstration program on a nationwide 

15 basis; and 

16 (B) shall include descriptions of— 

17 (i) the size of each multifamily housing 

18 project for which assistance was provided 

19 under the program; 

20 (ii) the geographic location of each 

21 project assisted, by State and region; 

22 (iii) the criteria used to select the 

23 projects for which assistance is provided 

24 under the program; 


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1 (iv) the energy efficiency and conserva2 tion measures and financing sources used 

3 for each project that is assisted under the 

4 program; 

5 (v) the difference, before and during 

6 participation in the demonstration pro7 gram, in the amount of the monthly assist8 ance payments under the covered multi9 family assistance program for each project 

10 assisted under the program; 

11 (vi) the average length of the term of 

12 the such assistance provided under the pro13 gram for a project; 

14 (vii) the aggregate amount of savings 

15 generated by the demonstration program 

16 and the amount of savings expected to be 

17 generated by the program over time on a 

18 per-unit and aggregate program basis; 

19 (viii) the functions performed in con20 nection with the implementation of the dem21 onstration program that were transferred or 

22 contracted out to any third parties; 

23 (ix) an evaluation of the overall suc24 cesses and failures of the demonstration pro25 gram; and 


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1 (x) recommendations for any actions to 

2 be taken as a result of the such successes 

3 and failures. 

4 (3) CONTENTS.—Each annual report pursuant 

5 to paragraph (1) and the final report pursuant to 

6 paragraph (2) shall include— 

7 (A) a description of the status of each mul8 tifamily housing project selected for participa9 tion in the demonstration program under this 

10 section; and 

11 (B) findings from the program and rec12 ommendations for any legislative actions. 

13 (i) COVERED MULTIFAMILY ASSISTANCE PROGRAM.— 

14 For purposes of this section, the term ‘‘covered multifamily 

15 assistance program’’ means— 

16 (1) the program under section 8 of the United 

17 States Housing Act of 1937 (42 U.S.C. 1437f) for 

18 project-based rental assistance; 

19 (2) the program under section 202 of the Hous20 ing Act of 1959 (12 U.S.C. 1701q) for assistance for 

21 supportive housing for the elderly; 

22 (3) the program under section 811 of the Cran23 ston-Gonzalez National Affordable Housing Act (42 

24 U.S.C. 8013) for supportive housing for persons with 

25 disabilities; 


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1 (4) the program under section 236 of the Na2 tional Housing Act (12 U.S.C. 1715z–1 for assistance 

3 for rental housing projects; 

4 (5) the program for mortgage insurance under 

5 section 221(d)(3) of the National Housing Act (12 

6 U.S.C. 1715l(d)(3)) for rental housing projects; 

7 (6) the program under section 515 of the Hous8 ing Act of 1949 (42 U.S.C. 1485) for rural rental 

9 housing; and 

10 (7) the program for assistance under the Native 

11 American Housing Assistance and Self-Determination 

12 Act of 1996 (25 U.S.C. 4111). 

13 (j) AUTHORIZATION OF APPROPRIATIONS.—There is 

14 authorized to be appropriated to carry out this section, in15 cluding providing rent adjustments, additional project rent16 al assistance, and incentives, $50,000,000 for each fiscal 

17 year in which the demonstration program under this sec18 tion is carried out. 

19 (k) REGULATIONS.—Not later than the expiration of 

20 the 180-day period beginning on the date of the enactment 

21 of this Act, the Secretary shall issue any regulations nec22 essary to carry out this section. 


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1 SEC. 6. CONSIDERATION OF ENERGY EFFICIENCY UNDER 

2 FHA MORTGAGE INSURANCE PROGRAMS AND 

3 NATIVE AMERICAN AND NATIVE HAWAIIAN 

4 LOAN GUARANTEE PROGRAMS. 

5 (a) FHA MORTGAGE INSURANCE.— 

6 (1) REQUIREMENT.—Title V of the National 

7 Housing Act is amended by adding after section 542 

8 (12 U.S.C. 1735f–20) the following new section: 

9 ‘‘SEC. 543. CONSIDERATION OF ENERGY EFFICIENCY. 

10 ‘‘(a) UNDERWRITING STANDARDS.—The Secretary 

11 shall establish a method to consider, in its underwriting 

12 standards for mortgages on single-family housing meeting 

13 the energy efficiency standards under section 4(a) of the 

14 Green Resources for Energy Efficient Neighborhoods Act of 

15 2010 that are insured under this Act, the impact that sav16 ings on utility costs has on the income of the mortgagor. 

17 ‘‘(b) GOAL.—It is the sense of the Congress that, in 

18 carrying out this Act, the Secretary should endeavor to in19 sure mortgages on single-family housing meeting the energy 

20 efficiency standards under section 4(a) of the Green Re21 sources for Energy Efficient Neighborhoods Act of 2010 such 

22 that at least 50,000 such mortgages are insured during the 

23 period beginning upon the date of the enactment of such 

24 Act and ending on December 31, 2012.’’. 

25 (2) REPORTING ON DEFAULTS.—Section 540(b) 

26 of the National Housing Act (12 U.S.C. 1735f–18(b)) 


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1 is amended by adding at the end the following new 

2 paragraph: 

3 ‘‘(3) With respect to each collection period that 

4 commences after December 31, 2011, the total number 

5 of mortgages on single-family housing meeting the en6 ergy efficiency standards under section 4(a) of the 

7 Green Resources for Energy Efficient Neighborhoods 

8 Act of 2010 that are insured by the Secretary during 

9 the applicable collection period, the number of de10 faults and foreclosures occurring on such mortgages 

11 during such period, the percentage of the total of such 

12 mortgages insured during such period on which de13 faults and foreclosure occurred, and the rate for such 

14 period of defaults and foreclosures on such mortgages 

15 compared to the overall rate for such period of de16 faults and foreclosures on mortgages for single-family 

17 housing insured under this Act by the Secretary.’’. 

18 (b) INDIAN HOUSING LOAN GUARANTEES.— 

19 (1) REQUIREMENT.—Section 184 of the Housing 

20 and Community Development Act of 1992 (12 U.S.C. 

21 1715z–13a) is amended— 

22 (A) by redesignating subsection (l) as sub23 section (m); and 

24 (B) by inserting after subsection (k) the fol25 lowing new subsection: 


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1 ‘‘(l) CONSIDERATION OF ENERGY EFFICIENCY.—The 

2 Secretary shall establish a method to consider, in its under3 writing standards for loans for single-family housing meet4 ing the energy efficiency standards under section 4(a) of 

5 the Green Resources for Energy Efficient Neighborhoods Act 

6 of 2010 that are guaranteed under this section, the impact 

7 that savings on utility costs has on the income of the bor8 rower.’’. 

9 (2) REPORTING ON DEFAULTS.—Section 540(b) 

10 of the National Housing Act (12 U.S.C. 1735f–18(b)), 

11 as amended by subsection (a)(2) of this section, is fur12 ther amended by adding at the end the following new 

13 paragraph: 

14 ‘‘(4) With respect to each collection period that 

15 commences after December 31, 2011, the total number 

16 of loans guaranteed under section 184 of the Housing 

17 and Community Development Act of 1992 (12 U.S.C. 

18 1715z–13a) on single-family housing meeting the en19 ergy efficiency standards under section 4(a) of the 

20 Green Resources for Energy Efficient Neighborhoods 

21 Act of 2010 that are guaranteed by the Secretary dur22 ing the applicable collection period, the number of de23 faults and foreclosures occurring on such loans during 

24 such period, the percentage of the total of such loans 

25 guaranteed during such period on which defaults and 


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1 foreclosure occurred, and the rate for such period of 

2 defaults and foreclosures on such loans compared to 

3 the overall rate for such period of defaults and fore4 closures on loans for single-family housing guaranteed 

5 under such section 184 by the Secretary.’’. 

6 (c) NATIVE HAWAIIAN HOUSING LOAN GUARAN7 TEES.— 

8 (1) REQUIREMENT.—Section 184A of the Hous9 ing and Community Development Act of 1992 (12 

10 U.S.C. 1715z–13b) is amended by inserting after sub11 section (l) the following new subsection: 

12 ‘‘(m) ENERGY-EFFICIENT HOUSING REQUIREMENT.— 

13 The Secretary shall establish a method to consider, in its 

14 underwriting standards for loans for single-family housing 

15 meeting the energy efficiency standards under section 4(a) 

16 of the Green Resources for Energy Efficient Neighborhoods 

17 Act of 2010 that are guaranteed under this section, the im18 pact that savings on utility costs has on the income of the 

19 borrower.’’. 

20 (2) REPORTING ON DEFAULTS.—Section 540(b) 

21 of the National Housing Act (12 U.S.C. 1735f–18(b)), 

22 as amended by the preceding provisions of this sec23 tion, is further amended by adding at the end the fol24 lowing new paragraph: 


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1 ‘‘(5) With respect to each collection period that 

2 commences after December 31, 2011, the total number 

3 of loans guaranteed under section 184A of the Hous4 ing and Community Development Act of 1992 (12 

5 U.S.C. 1715z–13b) on single-family housing meeting 

6 the energy efficiency standards under section 4(a) of 

7 the Green Resources for Energy Efficient Neighbor8 hoods Act of 2010 that are guaranteed by the Sec9 retary during the applicable collection period, the 

10 number of defaults and foreclosures occurring on such 

11 loans during such period, the percentage of the total 

12 of such loans guaranteed during such period on which 

13 defaults and foreclosure occurred, and the rate for 

14 such period of defaults and foreclosures on such loans 

15 compared to the overall rate for such period of de16 faults and foreclosures on loans for single-family 

17 housing guaranteed under such section 184A by the 

18 Secretary.’’. 

19 SEC. 7. ENERGY-EFFICIENT MORTGAGES AND LOCATION-EF20 FICIENT MORTGAGES EDUCATION AND OUT21 REACH CAMPAIGN. 

22 Section 106 of the Energy Policy Act of 1992 (12 

23 U.S.C. 1701z–16) is amended by adding at the end the fol24 lowing new subsection: 

25 ‘‘(g) EDUCATION AND OUTREACH CAMPAIGN.— 


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1 ‘‘(1) DEVELOPMENT OF ENERGY- AND LOCATION2 EFFICIENT MORTGAGES OUTREACH PROGRAM.— 

3 ‘‘(A) COMMISSION.—The Secretary, in con4 sultation and coordination with the Secretary of 

5 Energy, the Secretary of Education, the Sec6 retary of Agriculture, and the Administrator of 

7 the Environmental Protection Agency, shall es8 tablish a commission to develop and recommend 

9 model mortgage products and underwriting 

10 guidelines that provide market-based incentives 

11 to prospective home buyers, lenders, and sellers 

12 to incorporate energy efficiency upgrades and lo13 cation efficiencies in new mortgage loan trans14 actions. 

15 ‘‘(B) REPORT.—Not later than 24 months 

16 after the date of the enactment of this Act, the 

17 Secretary shall provide a written report to the 

18 Congress on the results of work of the commission 

19 established pursuant to subparagraph (A) and 

20 that identifies model mortgage products and un21 derwriting guidelines that may encourage energy 

22 and location efficiency. 

23 ‘‘(2) IMPLEMENTATION.—After submission of the 

24 report under paragraph (1)(B), the Secretary, in con25 sultation and coordination with the Secretary of EnVerDate Mar 15 2010 22:52 Sep 22, 2010 Jkt 089200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6203 E:\BILLS\H2336.RH H2336

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1 ergy, the Secretary of Education, and the Adminis2 trator of the Environmental Protection Agency, shall 

3 carry out a public awareness, education, and outreach 

4 campaign based on the findings of the commission es5 tablished pursuant to paragraph (1) to inform and 

6 educate residential lenders and prospective borrowers 

7 regarding the availability, benefits, advantages, and 

8 terms of energy-efficient mortgages and location-effi9 cient mortgages made available pursuant to this sec10 tion, energy-efficient and location-efficient mortgages 

11 (as such terms are defined in section 2 of the GREEN 

12 Act of 2010), and other mortgages, including mort13 gages for multifamily housing, that have energy im14 provement features or location efficiency features and 

15 to publicize such availability, benefits, advantages, 

16 and terms. Such actions may include entering into a 

17 contract with an appropriate entity to publicize and 

18 market such mortgages through appropriate media. 

19 ‘‘(3) RENEWABLE ENERGY HOME PRODUCT

20 EXPOS.—The Congress hereby encourages the Sec21 retary of Housing and Urban Development to work 

22 with appropriate entities to organize and hold renew23 able energy expositions that provide an opportunity 

24 for the public to view and learn about renewable enVerDate Mar 15 2010 22:52 Sep 22, 2010 Jkt 089200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6203 E:\BILLS\H2336.RH H2336

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1 ergy products for the home that are currently on the 

2 market. 

3 ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— 

4 There is authorized to be appropriated to the Sec5 retary to carry out this subsection $5,000,000 for each 

6 of fiscal years 2010 through 2014.’’. 

7 SEC. 8. COLLECTION OF INFORMATION ON ENERGY-EFFI8 CIENT AND LOCATION-EFFICIENT MORT9 GAGES THROUGH HOME MORTGAGE DISCLO10 SURE ACT. 

11 (a) IN GENERAL.—Section 304(b) of the Home Mort12 gage Disclosure Act of 1975 (12 U.S.C. 2803(b)) is amend13 ed— 

14 (1) in paragraph (3), by striking ‘‘and’’ at the 

15 end; 

16 (2) in paragraph (4), by striking the period at 

17 the end and inserting a semicolon; and 

18 (3) by adding at the end the following new para19 graphs: 

20 ‘‘(5) the number and dollar amount of mortgage 

21 loans for single-family housing and for multifamily 

22 housing that are energy-efficient mortgages (as such 

23 term is defined in section 2 of the GREEN Act of 

24 2010); and 


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1 ‘‘(6) the number and dollar amount of mortgage 

2 loans for single-family housing and for multifamily 

3 housing that are location-efficient mortgages (as such 

4 term is defined in section 2 of the GREEN Act of 

5 2010).’’. 

6 (b) APPLICABILITY.—The amendment made by sub7 section (a) shall apply with respect to the first calendar 

8 year that begins after the expiration of the 30-day period 

9 beginning on the date of the enactment of this Act. 

10 SEC. 9. ENSURING AVAILABILITY OF HOMEOWNERS INSUR11 ANCE FOR HOMES NOT CONNECTED TO ELEC12 TRICITY GRID. 

13 (a) CONGRESSIONAL INTENT.—The Congress intends 

14 that— 

15 (1) consumers shall not be denied homeowners 

16 insurance for a dwelling (as such term is defined in 

17 subsection (c)) based solely on the fact that the dwell18 ing is not connected to or able to receive electricity 

19 service from any wholesale or retail electric power 

20 provider; 

21 (2) States should ensure that consumers are able 

22 to obtain homeowners insurance for such dwellings; 

23 (3) States should support insurers that develop 

24 voluntary incentives to provide such insurance; and 


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1 (4) States may not prohibit insurers from offer2 ing a homeowners insurance product specifically de3 signed for such dwellings. 

4 (b) INSURING HOMES AND RELATED PROPERTY IN IN5 DIAN AREAS.—Notwithstanding any other provision of law, 

6 dwellings located in Indian areas (as such term is defined 

7 in section 4 of the Native American Housing Assistance and 

8 Self-Determination Act of 1996 (25 U.S.C. 4103)) and con9 structed or maintained using assistance, loan guarantees, 

10 or other authority under the Native American Housing As11 sistance and Self-Determination Act of 1996 may be in12 sured by any tribally owned self-insurance risk pool ap13 proved by the Secretary of Housing and Urban Develop14 ment. 

15 (c) DWELLING.—For purposes of this section, the term 

16 ‘‘dwelling’’ means a residential structure that— 

17 (1) consists of one to four dwelling units; 

18 (2) is provided electricity from renewable energy 

19 sources; and 

20 (3) is not connected to any wholesale or retail 

21 electrical power grid. 

22 SEC. 10. MORTGAGE INCENTIVES FOR ENERGY-EFFICIENT 

23 MULTIFAMILY HOUSING. 

24 (a) IN GENERAL.—The Secretary of Housing and 

25 Urban Development shall establish incentives for increasing 


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1 the energy efficiency of multifamily housing that is subject 

2 to a mortgage to be insured under title II of the National 

3 Housing Act (12 U.S.C. 1707 et seq.) so that the housing 

4 meets the energy efficiency standards under section 4(a) of 

5 this Act and incentives to encourage compliance of such 

6 housing with the energy efficiency and conservation stand7 ards, and the green building standards, under section 4(b) 

8 of this Act, to the extent that such incentives are based on 

9 the impact that savings on utility costs has on the operating 

10 costs of the housing, as determined by the Secretary. 

11 (b) INCENTIVES.—Such incentives may include, for 

12 any such multifamily housing that complies with the energy 

13 efficiency standards under section 4(a)— 

14 (1) providing a discount on the chargeable pre15 miums for the mortgage insurance for such housing 

16 from the amount otherwise chargeable for such mort17 gage insurance; 

18 (2) allowing mortgages to exceed the dollar 

19 amount limits otherwise applicable under law to the 

20 extent such additional amounts are used to finance 

21 improvements or measures designed to meet the stand22 ards referred to in subsection (a); and 

23 (3) reducing the amount that the owner of such 

24 multifamily housing meeting the standards referred to 

25 in subsection (a) is required to contribute. 


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1 SEC. 11. ENERGY-EFFICIENT CERTIFICATIONS FOR MANU2 FACTURED HOUSING WITH MORTGAGES. 

3 Section 526 of the National Housing Act (12 U.S.C. 

4 1735f–4(a)) is amended— 

5 (1) in subsection (a)— 

6 (A) by striking ‘‘, other than manufactured 

7 homes,’’ each place such term appears; 

8 (B) by inserting after the period at the end 

9 the following: ‘‘The energy performance require10 ments developed and established by the Secretary 

11 under this section for manufactured homes shall 

12 require Energy Star rating for wall fixtures, ap13 pliances, and equipment in such housing.’’; 

14 (C) by inserting ‘‘(1)’’ after ‘‘(a)’’; and 

15 (D) by adding at the end the following new 

16 paragraphs: 

17 ‘‘(2) The Secretary shall require, with respect to any 

18 mortgage for manufactured housing insured under this Act, 

19 that any approval or certification of the housing for meet20 ing any energy efficiency or conservation criteria, stand21 ards, or requirements pursuant to this title and any ap22 proval or certification required pursuant to this title with 

23 respect to energy-conserving improvements or any renew24 able energy sources, such as wind, solar energy geothermal, 

25 or biomass, shall be conducted only by an individual cer26 tified by a home energy rating system provider who has 


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1 been accredited to conduct such ratings by the Home Energy 

2 Ratings System Council, the Residential Energy Services 

3 Network, or such other appropriate national organization, 

4 as the Secretary may provide, or by licensed professional 

5 architect or engineer. If any organization makes a request 

6 to the Secretary for approval to accredit individuals to con7 duct energy efficiency or conservation ratings, the Secretary 

8 shall review and approve or disapprove such request not 

9 later than the expiration of the 6-month period beginning 

10 upon receipt of such request. 

11 ‘‘(3) The Secretary shall periodically examine the 

12 method used to conduct inspections for compliance with the 

13 requirements under this section, analyze various other ap14 proaches for conducting such inspections, and review the 

15 costs and benefits of the current method compared with 

16 other methods.’’; and 

17 (2) in subsection (b), by striking ‘‘, other than a 

18 manufactured home,’’. 

19 SEC. 12. ASSISTED HOUSING ENERGY LOAN PILOT PRO20 GRAM. 

21 (a) AUTHORITY.—Not later than the expiration of the 

22 12-month period beginning on the date of the enactment of 

23 this Act, the Secretary shall develop and implement a pilot 

24 program under this section to facilitate the financing of 

25 cost-effective capital improvements for covered assisted 


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1 housing projects to improve the energy efficiency and con2 servation of such projects. 

3 (b) LOANS.—The pilot program under this section 

4 shall involve not less than three and not more than five 

5 lenders, and shall provide for a privately financed loan to 

6 be made for a covered assisted housing project, which 

7 shall— 

8 (1) finance capital improvements for the project 

9 that meet such requirements as the Secretary shall es10 tablish, and may involve contracts with third parties 

11 to perform such capital improvements, including the 

12 design of such improvements by licensed professional 

13 architects or engineers; 

14 (2) have a term to maturity of not more than 20 

15 years, which shall be based upon the duration nec16 essary to realize cost savings sufficient to repay the 

17 loan; 

18 (3) be secured by a mortgage subordinate to the 

19 mortgage for the project that is insured under the Na20 tional Housing Act; and 

21 (4) provide for a reduction in the remaining 

22 principal obligation under the loan based on the ac23 tual resulting cost savings realized from the capital 

24 improvements financed with the loan. 


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1 (c) UNDERWRITING STANDARDS.—The Secretary shall 

2 review underwriting requirements for loans made under the 

3 pilot program under this section, which shall— 

4 (1) require the cost savings projected to be real5 ized from the capital improvements financed with the 

6 loan, during the term of the loan, to exceed the costs 

7 of repaying the loan; 

8 (2) allow the designer or contractor involved in 

9 designing capital improvements to be financed with a 

10 loan under the program to carry out such capital im11 provements; and 

12 (3) include such energy, audit, property, finan13 cial, ownership, and approval requirements as the 

14 Secretary considers appropriate. 

15 (d) TREATMENT OF SAVINGS.—The pilot program 

16 under this section shall provide that the project owner shall 

17 receive the full financial benefit from any reduction in the 

18 cost of utilities resulting from capital improvements fi19 nanced with a loan made under the program. 

20 (e) COVERED ASSISTED HOUSING PROJECTS.—For 

21 purposes of this section, the term ‘‘covered assisted housing 

22 project’’ means a housing project that— 

23 (1) is financed by a loan or mortgage that is— 

24 (A) insured by the Secretary under— 


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1 (i) subsection (d)(3) of section 221 of 

2 the National Housing Act (12 U.S.C. 

3 1715l), and bears interest at a rate deter4 mined under the proviso of section 

5 221(d)(5) of such Act; or 

6 (ii) subsection (d)(4) of such section 

7 221; 

8 (B) insured or assisted under section 236 of 

9 the National Housing Act (12 U.S.C. 1715z–1); 

10 or 

11 (C) is assisted with a capital advance under 

12 section 202 of the Housing Act of 1959 (12 

13 U.S.C. 1701q) or a loan under such section (as 

14 in effect before October 1, 1991); 

15 (2) at the time a loan under this section is made, 

16 is provided project-based rental assistance under sec17 tion 8 of the United States Housing Act of 1937 (42 

18 U.S.C. 1437f) , or project rental assistance under sec19 tion 202 of the Housing Act of 1959, as applicable, 

20 for 50 percent or more of the dwelling units in the 

21 project; and 

22 (3) is not a housing project owned or held by the 

23 Secretary, or subject to a mortgage held by the Sec24 retary. 


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1 SEC. 13. MAKING IT GREEN. 

2 (a) PARTNERSHIPS WITH TREE-PLANTING ORGANIZA3 TIONS.—The Secretary shall establish and provide incen4 tives for developers of housing for which any HUD financial 

5 assistance, as determined by the Secretary, is provided for 

6 development, maintenance, operation, or other costs, to 

7 enter into agreements and partnerships with tree-planting 

8 organizations, nurseries, and landscapers to certify that 

9 trees, shrubs, grasses, and other plants are planted in the 

10 proper manner, are provided adequate maintenance, and 

11 survive for at least 3 years after planting or are replaced. 

12 The financial assistance determined by the Secretary as eli13 gible under this section shall take into consideration such 

14 factors as cost effectiveness and affordability. 

15 (b) MAKING IT GREEN PLAN.—In the case of any new 

16 or substantially rehabilitated housing for which HUD fi17 nancial assistance, as determined in accordance with sub18 section (a), is provided by the Secretary for the develop19 ment, construction, maintenance, rehabilitation, improve20 ment, operation, or costs of the housing, including financial 

21 assistance provided through the Community Development 

22 Block Grant program under title I of the Housing and 

23 Community Development Act of 1974 (42 U.S.C. 5301 et 

24 seq.), the Secretary shall require the development of a plan 

25 that provides for— 


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1 (1) in the case of new construction and improve2 ments, siting of such housing and improvements in a 

3 manner that provides for energy efficiency and con4 servation to the extent feasible, taking into consider5 ation location and project type; 

6 (2) minimization of the effects of construction, 

7 rehabilitation, or other development on the condition 

8 of existing trees; 

9 (3) selection and installation of indigenous trees, 

10 shrubs, grasses, and other plants based upon applica11 ble design guidelines and standards of the Inter12 national Society for Arboriculture; 

13 (4) post-planting care and maintenance of the 

14 landscaping relating to or affected by the housing in 

15 accordance with best management practices; and 

16 (5) establishment of a goal for minimum 

17 greenspace or tree canopy cover for the housing site 

18 for which such financial assistance is provided, in19 cluding guidelines and timetables within which to 

20 achieve compliance with such minimum requirements. 

21 (c) PARTNERSHIPS.—In carrying out this section, the 

22 Secretary is encouraged to consult, as appropriate, with na23 tional organizations dedicated to providing housing assist24 ance and related services to low-income families, such as 

25 the Alliance for Community Trees and its affiliates, the 


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1 American Nursery and Landscape Association, the Amer2 ican Society of Landscape Architects, and the National 

3 Arbor Day Foundation. 

4 SEC. 14. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT 

5 PROGRAM. 

6 Title I of the Housing and Community Development 

7 Act of 1974 (42 U.S.C. 5301 et seq.) is amended by adding 

8 at the end the following new section: 

9 ‘‘SEC. 123. RESIDENTIAL ENERGY EFFICIENCY BLOCK 

10 GRANT PROGRAM. 

11 ‘‘(a) IN GENERAL.—To the extent amounts are made 

12 available for grants under this section, the Secretary shall 

13 make grants under this section to States, metropolitan cities 

14 and urban counties, Indian tribes, and insular areas to 

15 carry out energy efficiency improvements in new and exist16 ing single-family and multifamily housing. 

17 ‘‘(b) ALLOCATIONS.— 

18 ‘‘(1) IN GENERAL.—Of the total amount made 

19 available for each fiscal year for grants under this 

20 section that remains after reserving amounts pursu21 ant to paragraph (2), the Secretary shall allocate for 

22 insular areas, for metropolitan cities and urban coun23 ties, and for States, an amount that bears the same 

24 ratio to such total amount as the amount allocated for 

25 such fiscal year under section 106 for Indian tribes, 


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1 for insular areas, for metropolitan cities and urban 

2 counties, and for States, respectively, bears to the 

3 total amount made available for such fiscal year for 

4 grants under section 106. 

5 ‘‘(2) SET ASIDE FOR INDIAN TRIBES.—Of the 

6 total amount made available for each fiscal year for 

7 grants under this section, the Secretary shall allocate 

8 not less than 1 percent to Indian tribes. 

9 ‘‘(c) GRANT AMOUNTS.— 

10 ‘‘(1) ENTITLEMENT COMMUNITIES.—From the 

11 amounts allocated pursuant to subsection (b) for met12 ropolitan cities and urban counties for each fiscal 

13 year, the Secretary shall make a grant for such fiscal 

14 year to each metropolitan city and urban county that 

15 complies with the requirement under subsection (d), 

16 in the amount that bears the same ratio such total 

17 amount so allocated as the amount of the grant for 

18 such fiscal year under section 106 for such metropoli19 tan city or urban county bears to the aggregate 

20 amount of all grants for such fiscal year under sec21 tion 106 for all metropolitan cities and urban coun22 ties. 

23 ‘‘(2) STATES.—From the amounts allocated pur24 suant to subsection (b) for States for each fiscal year, 

25 the Secretary shall make a grant for such fiscal year 


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1 to each State that complies with the requirement 

2 under subsection (d), in the amount that bears the 

3 same ratio such total amount so allocated as the 

4 amount of the grant for such fiscal year under section 

5 106 for such State bears to the aggregate amount of 

6 all grants for such fiscal year under section 106 for 

7 all States. Grant amounts received by a State shall 

8 be used only for eligible activities under subsection (e) 

9 carried out in nonentitlement areas of the State. 

10 ‘‘(3) INDIAN TRIBES.—From the amounts allo11 cated pursuant to subsection (b) for Indian tribes, the 

12 Secretary shall make grants to Indian tribes that 

13 comply with the requirement under subsection (d) on 

14 the basis of a competition conducted pursuant to spe15 cific criteria, as the Secretary shall establish by regu16 lation, for the selection of Indian tribes to receive such 

17 amount. 

18 ‘‘(4) INSULAR AREAS.—From the amounts allo19 cated pursuant to subsection (b) for insular areas, the 

20 Secretary shall make a grant to each insular area 

21 that complies with the requirement under subsection 

22 (d) on the basis of the ratio of the population of the 

23 insular area to the aggregate population of all insular 

24 areas. In determining the distribution of amounts to 

25 insular areas, the Secretary may also include other 


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1 statistical criteria as data become available from the 

2 Bureau of Census of the Department of Labor, but 

3 only if such criteria are set forth by regulation issued 

4 after notice and an opportunity for comment. 

5 ‘‘(d) STATEMENT OF ACTIVITIES.— 

6 ‘‘(1) REQUIREMENT.—Before receipt the receipt 

7 in any fiscal year of a grant under subsection (c) by 

8 any grantee, the grantee shall have prepared a final 

9 statement of housing energy efficiency objectives and 

10 projected use of funds as the Secretary shall require 

11 and shall have provided the Secretary with such cer12 tifications regarding such objectives and use as the 

13 Secretary may require. In the case of metropolitan 

14 cities, urban counties, units of general local govern15 ment, and insular areas receiving grants, the state16 ment of projected use of funds shall consist of pro17 posed housing energy efficiency activities. In the case 

18 of States receiving grants, the statement of projected 

19 use of funds shall consist of the method by which the 

20 States will distribute funds to units of general local 

21 government. 

22 ‘‘(2) PUBLIC PARTICIPATION.—The Secretary 

23 may establish requirements to ensure the public avail24 ability of information regarding projected use of 


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1 grant amounts and public participation in deter2 mining such projected use. 

3 ‘‘(e) ELIGIBLE ACTIVITIES.— 

4 ‘‘(1) REQUIREMENT.—Amounts from a grant 

5 under this section may be used only to carry out ac6 tivities for single-family or multifamily housing that 

7 are designed to improve the energy efficiency of the 

8 housing so that the housing complies with the energy 

9 efficiency standards under section 4(a) of the Green 

10 Resources for Energy Efficient Neighborhoods Act of 

11 2010, including such activities to provide energy for 

12 such housing from renewable sources, such as wind, 

13 waves, solar, biomass, and geothermal sources. 

14 ‘‘(2) PREFERENCE FOR COMPLIANCE BEYOND

15 BASIC REQUIREMENTS.—In selecting activities to be 

16 funded with amounts from a grant under this section, 

17 a grantee shall give more preference to activities based 

18 on the extent to which the activities will result in 

19 compliance by the housing with the enhanced energy 

20 efficiency and conservation standards, and the green 

21 building standards, under section 4(b) of such Act. 

22 ‘‘(f) REPORTS.—Each grantee of a grant under this 

23 section for a fiscal year shall submit to the Secretary, at 

24 a time determined by the Secretary, a performance and 

25 evaluation report concerning the use of grant amounts, 


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1 which shall contain an assessment by the grantee of the rela2 tionship of such use to the objectives identified in the grant3 ees statement under subsection (d). 

4 ‘‘(g) APPLICABILITY OF CDBG PROVISIONS.—Sections 

5 109, 110, and 111 of the Housing and Community Develop6 ment Act of 1974 (42 U.S.C. 5309, 5310, 5311) shall apply 

7 to assistance received under this section to the same extent 

8 and in the same manner that such sections apply to assist9 ance received under title I of such Act. 

10 ‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There is 

11 authorized to be appropriated for grants under this section 

12 $2,500,000,000 for fiscal year 2010 and such sums as may 

13 be necessary for each fiscal year thereafter.’’. 

14 SEC. 15. INCLUDING SUSTAINABLE DEVELOPMENT AND 

15 TRANSPORTATION STRATEGIES IN COM16 PREHENSIVE HOUSING AFFORDABILITY 

17 STRATEGIES. 

18 Section 105(b) of the Cranston-Gonzalez National Af19 fordable Housing Act (42 U.S.C. 12705(b)) is amended— 

20 (1) by striking ‘‘and’’ at the end of paragraph 

21 (19); 

22 (2) by striking the period at the end of para23 graph (20) and inserting ‘‘; and’’; 

24 (3) and by inserting after paragraph (20) the 

25 following new paragraphs: 


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1 ‘‘(21) describe the jurisdiction’s strategies to en2 courage sustainable development for affordable hous3 ing, including single-family and multifamily housing, 

4 as measured by— 

5 ‘‘(A) greater energy efficiency and use of re6 newable energy sources, including any strategies 

7 regarding compliance with the energy efficiency 

8 standards under section 4(a) of the Green Re9 sources for Energy Efficient Neighborhoods Act 

10 of 2010 and with the enhanced energy efficiency 

11 and conservation standards, and the green build12 ing standards, under section 4(b) of such Act; 

13 ‘‘(B) increased conservation, recycling, and 

14 reuse of resources; 

15 ‘‘(C) more effective use of existing infra16 structure; 

17 ‘‘(D) use of building materials and methods 

18 that are healthier for residents of the housing, in19 cluding use of building materials that are free of 

20 added known carcinogens that are classified as 

21 Group 1 Known Carcinogens by the Inter22 national Agency for Research on Cancer; and 

23 ‘‘(E) such other criteria as the Secretary de24 termines, in consultation with the Secretary of 

25 Energy, the Secretary of Agriculture, and the 


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1 Administrator of the Environmental Protection 

2 Agency, are in accordance with the purposes of 

3 this paragraph; and 

4 ‘‘(22) describe the jurisdiction’s efforts to coordi5 nate its housing strategy with its transportation 

6 planning strategies to ensure to the extent practicable 

7 that residents of affordable housing have access to 

8 public transportation.’’. 

9 SEC. 16. GRANT PROGRAM TO INCREASE SUSTAINABLE 

10 LOW-INCOME COMMUNITY DEVELOPMENT CA11 PACITY. 

12 (a) IN GENERAL.—The Secretary may make grants to 

13 nonprofit organizations to use for any of the following pur14 poses: 

15 (1) Training, educating, supporting, or advising 

16 an eligible community development organization or 

17 qualified youth service and conservation corps in im18 proving energy efficiency, resource conservation and 

19 reuse, design strategies to maximize energy efficiency, 

20 installing or constructing renewable energy improve21 ments (such as wind, wave, solar, biomass, and geo22 thermal energy sources), and effective use of existing 

23 infrastructure in affordable housing and economic de24 velopment activities in low-income communities, tak25 ing into consideration energy efficiency standards 


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1 under section 4(a) of this Act and with the enhanced 

2 energy efficiency and conservation standards, and the 

3 green building standards, under section 4(b) of this 

4 Act. 

5 (2) Providing loans, grants, or predevelopment 

6 assistance to eligible community development organi7 zations or qualified youth service and conservation 

8 corps to carry out energy efficiency improvements 

9 that comply with the energy efficiency standards 

10 under section 4(a) of this Act, resource conservation 

11 and reuse, and effective use of existing infrastructure 

12 in affordable housing and economic development ac13 tivities in low-income communities. In providing as14 sistance under this paragraph, the Secretary shall 

15 give more preference to activities based on the extent 

16 to which the activities will result in compliance with 

17 the enhanced energy efficiency and conservation 

18 standards, and the green building standards, under 

19 section 4(b) of this Act. 

20 (3) Such other purposes as the Secretary deter21 mines are in accordance with the purposes of this 

22 subsection. 

23 (b) APPLICATION REQUIREMENT.—To be eligible for a 

24 grant under this section, a nonprofit organization shall pre25 pare and submit to the Secretary an application at such 


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1 time, in such manner, and containing such information as 

2 the Secretary may require. 

3 (c) AWARD OF CONTRACTS.—Contracts for architec4 tural or engineering services funded with amounts from 

5 grants made under this section shall be awarded in accord6 ance with chapter 11 of title 40, United States Code (relat7 ing to selection of architects and engineers). 

8 (d) MATCHING REQUIREMENT.—A grant made under 

9 this section may not exceed the amount that the nonprofit 

10 organization receiving the grant certifies, to the Secretary, 

11 will be provided (in cash or in-kind) from nongovernmental 

12 sources to carry out the purposes for which the grant is 

13 made. 

14 (e) DEFINITIONS.—For purposes of this section, the fol15 lowing definitions shall apply: 

16 (1) The term ‘‘nonprofit organization’’ has the 

17 meaning given such term in section 104 of the Cran18 ston-Gonzalez National Affordable Housing Act (42 

19 U.S.C. 12704). 

20 (2) The term ‘‘eligible community development 

21 organization’’ means— 

22 (A) a unit of general local government (as 

23 defined in section 104 of the Cranston-Gonzalez 

24 National Affordable Housing Act (42 U.S.C. 

25 12704)); 


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1 (B) a community housing development or2 ganization (as defined in section 104 of the 

3 Cranston-Gonzalez National Affordable Housing 

4 Act (42 U.S.C. 12704)); 

5 (C) an Indian tribe or tribally designated 

6 housing entity (as such terms are defined in sec7 tion 4 of the Native American Housing Assist8 ance and Self-Determination Act of 1996 (25 

9 U.S.C. 4103)); or 

10 (D) a public housing agency, as such term 

11 is defined in section 3(b) of the United States 

12 Housing Act of 1937 (42 U.S.C. 1437(b)). 

13 (3) The term ‘‘low-income community’’ means a 

14 census tract in which 50 percent or more of the house15 holds have an income which is less than 80 percent 

16 of the greater of— 

17 (A) the median gross income for such year 

18 for the area in which such census tract is lo19 cated; or 

20 (B) the median gross income for such year 

21 for the State in which such census tract is lo22 cated. 

23 (f) AUTHORIZATION OF APPROPRIATIONS.—There are 

24 authorized to be appropriated to the Secretary to carry out 


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1 this section $10,000,000 for each of fiscal years 2010 

2 through 2014. 

3 SEC. 17. HOPE VI GREEN DEVELOPMENTS REQUIREMENT. 

4 (a) MANDATORY COMPONENT.—Section 24(e) of the 

5 United States Housing Act of 1937 (42 U.S.C. 1437v(e)) 

6 is amended by adding at the end the following new para7 graph: 

8 ‘‘(4) GREEN DEVELOPMENTS REQUIREMENT.— 

9 ‘‘(A) REQUIREMENT.—The Secretary may 

10 not make a grant under this section to an appli11 cant unless the proposed revitalization plan of 

12 the applicant to be carried out with such grant 

13 amounts meets the following requirements: 

14 ‘‘(i) GREEN COMMUNITIES CRITERIA.— 

15 All residential construction under the pro16 posed plan complies with the national 

17 Green Communities criteria for residential 

18 construction and rehabilitation that pro19 vides criteria for the design, development, 

20 and operation of affordable housing, as such 

21 criteria are in effect for purposes of this 

22 paragraph pursuant to subparagraph (D) 

23 at the date of the application for the grant, 

24 or any substantially equivalent standard or 


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1 standards as determined by the Secretary, 

2 as follows: 

3 ‘‘(I) The proposed plan shall com4 ply with all items of the national 

5 Green Communities criteria for resi6 dential construction and rehabilitation 

7 that are identified as mandatory. 

8 ‘‘(II) The proposed plan shall 

9 comply with such other nonmandatory 

10 items of such national Green Commu11 nities criteria so as to result in a cu12 mulative number of points attributable 

13 to such nonmandatory items under 

14 such criteria of not less than— 

15 ‘‘(aa) 25 points, in the case 

16 of any proposed plan (or portion 

17 thereof) consisting of new con18 struction; and 

19 ‘‘(bb) 20 points, in the case 

20 of any proposed plan (or portion 

21 thereof) consisting of rehabilita22 tion. 

23 ‘‘(ii) GREEN BUILDINGS CERTIFI24 CATION SYSTEM.—All nonresidential con25 struction under the proposed plan complies 


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1 with all minimum required levels of the 

2 green building rating systems and levels 

3 identified by the Secretary pursuant to sub4 paragraph (C), as such systems and levels 

5 are in effect for purposes of this paragraph 

6 pursuant to subparagraph (D) at the time 

7 of the application for the grant. 

8 ‘‘(B) VERIFICATION.— 

9 ‘‘(i) IN GENERAL.—The Secretary shall 

10 verify, or provide for verification, sufficient 

11 to ensure that each proposed revitalization 

12 plan carried out with amounts from a 

13 grant under this section complies with the 

14 requirements under subparagraph (A) and 

15 that the revitalization plan is carried out in 

16 accordance with such requirements and 

17 plan. 

18 ‘‘(ii) TIMING.—In providing for such 

19 verification, the Secretary shall establish 

20 procedures to ensure such compliance with 

21 respect to each grantee, and shall report to 

22 the Congress with respect to the compliance 

23 of each grantee, at each of the following 

24 times: 


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1 ‘‘(I) Not later than 6 months after 

2 execution of the grant agreement under 

3 this section for the grantee. 

4 ‘‘(II) Upon completion of the revi5 talization plan of the grantee. 

6 ‘‘(C) IDENTIFICATION OF GREEN BUILDINGS

7 RATING SYSTEMS AND LEVELS.— 

8 ‘‘(i) IN GENERAL.—For purposes of 

9 this paragraph, the Secretary shall identify 

10 rating systems and levels for green build11 ings that the Secretary determines to be the 

12 most likely to encourage a comprehensive 

13 and environmentally sound approach to 

14 ratings and standards for green buildings. 

15 The identification of the ratings systems 

16 and levels shall be based on the criteria 

17 specified in clause (ii), shall identify the 

18 highest levels the Secretary determines are 

19 appropriate above the minimum levels re20 quired under the systems selected. Within 90 

21 days of the completion of each study re22 quired by clause (iii), the Secretary shall 

23 review and update the rating systems and 

24 levels, or identify alternative systems and 


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1 levels for purposes of this paragraph, taking 

2 into account the conclusions of such study. 

3 ‘‘(ii) CRITERIA.—In identifying the 

4 green rating systems and levels, the Sec5 retary shall take into consideration— 

6 ‘‘(I) the ability and availability of 

7 assessors and auditors to independently 

8 verify the criteria and measurement of 

9 metrics at the scale necessary to imple10 ment this paragraph; 

11 ‘‘(II) the ability of the applicable 

12 ratings system organizations to collect 

13 and reflect public comment; 

14 ‘‘(III) the ability of the standards 

15 to be developed and revised through a 

16 consensus-based process; 

17 ‘‘(IV) An evaluation of the 

18 robustness of the criteria for a high19 performance green building, which 

20 shall give credit for promoting— 

21 ‘‘(aa) efficient and sustain22 able use of water, energy, and 

23 other natural resources; 

24 ‘‘(bb) use of renewable energy 

25 sources; 


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1 ‘‘(cc) improved indoor and 

2 outdoor environmental quality 

3 through enhanced indoor and out4 door air quality, thermal comfort, 

5 acoustics, outdoor noise pollution, 

6 day lighting, pollutant source con7 trol, sustainable landscaping, and 

8 use of building system controls 

9 and low- or no-emission mate10 rials, including preference for ma11 terials with no added carcinogens 

12 that are classified as Group 1 

13 Known Carcinogens by the Inter14 national Agency for Research on 

15 Cancer; and 

16 ‘‘(dd) such other criteria as 

17 the Secretary determines to be ap18 propriate; and 

19 ‘‘(V) national recognition within 

20 the building industry. 

21 ‘‘(iii) 5-YEAR EVALUATION.—At least 

22 once every 5 years, the Secretary shall con23 duct a study to evaluate and compare avail24 able third-party green building rating sysVerDate Mar 15 2010 22:52 Sep 22, 2010 Jkt 089200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6203 E:\BILLS\H2336.RH H2336

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1 tems and levels, taking into account the cri2 teria listed in clause (ii). 

3 ‘‘(D) APPLICABILITY AND UPDATING OF

4 STANDARDS.— 

5 ‘‘(i) APPLICABILITY.—Except as pro6 vided in clause (ii) of this subparagraph, 

7 the national Green Communities criteria 

8 and green building rating systems and lev9 els referred to in clauses (i) and (ii) of sub10 paragraph (A) that are in effect for pur11 poses of this paragraph are such criteria 

12 and systems, and levels as in existence upon 

13 the date of the enactment of the Green Re14 sources for Energy Efficient Neighborhoods 

15 Act of 2010. 

16 ‘‘(ii) UPDATING.—The Secretary may, 

17 by regulation, adopt and apply, for pur18 poses of this paragraph, future amendments 

19 and supplements to, and editions of, the na20 tional Green Communities criteria, any 

21 standard or standards that the Secretary 

22 has determined to be substantially equiva23 lent to such criteria, and the green building 

24 ratings systems and levels identified by the 

25 Secretary pursuant to subparagraph (C).’’. 


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1 (b) SELECTION CRITERIA; GRADED COMPONENT.— 

2 Section 24(e)(2) of the United States Housing Act of 1937 

3 (42 U.S.C. 1437v(e)(2)) is amended— 

4 (1) in subparagraph (K), by striking ‘‘and’’ at 

5 the end; 

6 (2) by redesignating subparagraph (L) as sub7 paragraph (M); and 

8 (3) by inserting after subparagraph (K) the fol9 lowing new subparagraph: 

10 ‘‘(L) the extent to which the proposed revi11 talization plan— 

12 ‘‘(i) in the case of residential construc13 tion, complies with the nonmandatory items 

14 of the national Green Communities criteria 

15 identified in paragraph (4)(A)(i), or any 

16 substantially equivalent standard or stand17 ards as determined by the Secretary, but 

18 only to the extent such compliance exceeds 

19 the compliance necessary to accumulate the 

20 number of points required under such para21 graph; and 

22 ‘‘(ii) in the case of nonresidential con23 struction, complies with the components of 

24 the green building rating systems and levels 

25 identified by the Secretary pursuant to 


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1 paragraph (4)(C), but only to the extent 

2 such compliance exceeds the minimum level 

3 required under such systems and levels; 

4 and’’. 

5 SEC. 18. CONSIDERATION OF ENERGY EFFICIENCY IM6 PROVEMENTS IN APPRAISALS. 

7 (a) APPRAISALS IN CONNECTION WITH FEDERALLY

8 RELATED TRANSACTIONS.— 

9 (1) REQUIREMENT.—Section 1110 of the Finan10 cial Institutions Reform, Recovery, and Enforcement 

11 Act of 1989 (12 U.S.C. 3339) is amended— 

12 (A) in paragraph (1), by striking ‘‘and’’ at 

13 the end; 

14 (B) by redesignating paragraph (2) as 

15 paragraph (3); and 

16 (C) by inserting after paragraph (1) the fol17 lowing new paragraph: 

18 ‘‘(2) that such appraisals be performed in ac19 cordance with appraisal standards that require, in 

20 determining the value of a property, consideration of 

21 any renewable energy sources for, or energy efficiency 

22 or energy-conserving improvements or features of, the 

23 property;’’. 

24 (2) REVISION OF APPRAISAL STANDARDS.—Each 

25 Federal financial institutions regulatory agency shall, 


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1 in accordance with sections 1107 and 1111 (12 

2 U.S.C. 3336, 3340) and in coordination with Federal 

3 officials, including the Secretary of Energy, the Ad4 ministrator of the Environmental Protection Agency, 

5 and the Administrator of the General Services Ad6 ministration, revise its standards for the performance 

7 of real estate appraisals in connection with federally 

8 related transactions under the jurisdiction of the 

9 agency to comply with the requirement under the 

10 amendments made by paragraph (1) of this sub11 section. 

12 (b) ENSURING CONSIDERATION OF ENERGY-EFFICIENT

13 FEATURES WHEN REACHING CONCLUSIONS OF MARKET

14 VALUE.—Section 1110 of the Financial Institutions Re15 form, Recovery, and Enforcement Act of 1989 (12 U.S.C. 

16 3339), as amended by subsection (a) of this section, is fur17 ther amended— 

18 (1) in paragraph (3) (as so redesignated by sub19 section (a)(1)(B) of this section), by striking the pe20 riod and inserting ‘‘; and’’; and 

21 (2) by inserting after such paragraph (3) the fol22 lowing: 

23 ‘‘(4) that State-certified and licensed appraisers 

24 have timely access, whenever practicable, to informa25 tion from the lender relevant to an appraisal of the 


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1 energy and water efficiency or conserving improve2 ments or features of a property, such as labels or rat3 ings of buildings and installed appliances, blueprints, 

4 construction costs, incentives regarding energy- and 

5 water-efficient components and systems installed in a 

6 property, and third-party verifications or representa7 tions of energy and water efficiency performance of a 

8 property, observing all financial privacy requirements 

9 adhered to by certified and licensed appraisers, in10 cluding section 501 of the Gramm–Leach–Bliley Act 

11 (15 U.S.C. 6801); unless the property owner consents 

12 to the lender, an appraiser shall not have access to the 

13 commercial of financial information of the owner that 

14 is privileged or confidential.’’. 

15 (c) TRANSACTIONS REQUIRING STATE CERTIFIED AP16 PRAISERS.—Section 1113 of the Financial Institutions Re17 form, Recovery, and Enforcement Act of 1989 (12 U.S.C. 

18 3342) is amended— 

19 (1) in paragraph (1), by inserting before the 

20 semicolon the following: ‘‘or any real property with 

21 energy-efficiency or energy-conserving improvements 

22 or features’’; and 

23 (2) in paragraph (2) by inserting after ‘‘com24 plexity’’ the following: ‘‘(such as identifying and sup25 porting the contribution to market value of energy-efVerDate Mar 15 2010 22:52 Sep 22, 2010 Jkt 089200 PO 00000 Frm 00068 Fmt 6652 Sfmt 6203 E:\BILLS\H2336.RH H2336

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1 ficiency or energy-conserving improvements or fea2 tures)’’. 

3 SEC. 19. HOUSING ASSISTANCE COUNCIL. 

4 The Secretary shall require the Housing Assistance 

5 Council— 

6 (1) to encourage each organization that receives 

7 loan assistance from the Council with any amounts 

8 made available from the Secretary to provide that 

9 any structures and buildings developed or assisted 

10 under projects, programs, and activities funded with 

11 such amounts complies with the energy efficiency 

12 standards under section 4(a) of this Act; and 

13 (2) to establish incentives to encourage each such 

14 organization to provide that any such structures and 

15 buildings comply with the energy efficiency and con16 servation standards, and the green building stand17 ards, under section 4(b) of such Act. 

18 SEC. 20. RURAL HOUSING AND ECONOMIC DEVELOPMENT 

19 ASSISTANCE. 

20 The Secretary shall— 

21 (1) require each tribe, agency, organization, cor22 poration, and other entity that receives any assistance 

23 from the Office of Rural Housing and Economic De24 velopment of the Department of Housing and Urban 

25 Development to provide that any structures and 


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1 buildings developed or assisted under activities funded 

2 with such amounts complies with the energy efficiency 

3 standards under section 4(a) of this Act; and 

4 (2) establish incentives to encourage each such 

5 tribe, agency, organization, corporation, and other en6 tity to provide that any such structures and buildings 

7 comply with the enhanced energy efficiency and con8 servation standards, and the green building stand9 ards, under section 4(b) of such Act. 

10 SEC. 21. LOANS TO STATES AND INDIAN TRIBES TO CARRY 

11 OUT RENEWABLE ENERGY SOURCES ACTIVI12 TIES. 

13 (a) ESTABLISHMENT OF FUND.—There is established 

14 in the Treasury of the United States a fund, to be known 

15 as the ‘‘Alternative Energy Sources State Loan Fund’’. 

16 (b) EXPENDITURES.— 

17 (1) IN GENERAL.—Subject to paragraph (2), on 

18 request by the Secretary, the Secretary of the Treas19 ury shall transfer from the Fund to the Secretary 

20 such amounts as the Secretary determines are nec21 essary to provide loans under subsection (c)(1). 

22 (2) ADMINISTRATIVE EXPENSES.—Of the 

23 amounts in the Fund, not more than 5 percent shall 

24 be available for each fiscal year to pay the adminisVerDate Mar 15 2010 22:52 Sep 22, 2010 Jkt 089200 PO 00000 Frm 00070 Fmt 6652 Sfmt 6203 E:\BILLS\H2336.RH H2336

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1 trative expenses of the Department of Housing and 

2 Urban Development to carry out this section. 

3 (c) LOANS TO STATES AND INDIAN TRIBES.— 

4 (1) IN GENERAL.—The Secretary shall use 

5 amounts in the Fund to provide loans to States and 

6 Indian tribes to provide incentives to owners of sin7 gle-family and multifamily housing, commercial 

8 properties, and public buildings to provide— 

9 (A) renewable energy sources for such struc10 tures, such as wind, wave, solar, biomass, or geo11 thermal energy sources, including incentives to 

12 companies and businesses to change their source 

13 of energy to such renewable energy sources and 

14 for changing the sources of energy for public 

15 buildings to such renewable energy sources; 

16 (B) energy-efficiency and energy-conserving 

17 improvements and features for such structures; 

18 or 

19 (C) infrastructure related to the delivery of 

20 electricity and hot water for structures lacking 

21 such amenities. 

22 (2) ELIGIBILITY.—To be eligible to receive a loan 

23 under this subsection, a State or Indian tribe, di24 rectly or through an appropriate State or tribal agen25 cy, shall submit to the Secretary an application at 


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1 such time, in such manner, and containing such in2 formation as the Secretary may require. 

3 (3) CRITERIA FOR APPROVAL.—The Secretary 

4 may approve an application of a State or Indian 

5 tribe under paragraph (2) only if the Secretary deter6 mines that the State or tribe will use the funds from 

7 the loan under this subsection to carry out a program 

8 to provide incentives described in paragraph (1) 

9 that— 

10 (A) requires that any such renewable energy 

11 sources, and energy-efficiency and energy-con12 serving improvements and features, developed 

13 pursuant to assistance under the program result 

14 in compliance of the structure so improved with 

15 the energy efficiency standards under section 

16 4(a) of this Act; and 

17 (B) includes such compliance and audit re18 quirements as the Secretary determines are nec19 essary to ensure that the program is operated in 

20 a sound and effective manner. 

21 (4) PREFERENCE.—In making loans during each 

22 fiscal year, the Secretary shall give preference to 

23 States and Indian tribes that have not previously re24 ceived a loan under this subsection. 


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1 (5) MAXIMUM AMOUNT.—The aggregate out2 standing principal amount from loans under this 

3 subsection to any single State or Indian tribe may 

4 not exceed $500,000,000. 

5 (6) LOAN TERMS.—Each loan under this sub6 section shall have a term to maturity of not more 

7 than 10 years and shall bear interest at annual rate, 

8 determined by the Secretary, that shall not exceed in9 terest rate charged by the Federal Reserve Bank of 

10 New York to commercial banks and other depository 

11 institutions for very short-term loans under the pri12 mary credit program, as most recently published in 

13 the Federal Reserve Statistical Release on selected in14 terest rates (daily or weekly), and commonly referred 

15 to as the H.15 release, preceding the date of a deter16 mination for purposes of applying this paragraph. 

17 (7) LOAN REPAYMENT.—The Secretary shall re18 quire full repayment of each loan made under this 

19 section. 

20 (d) INVESTMENT OF AMOUNTS.— 

21 (1) IN GENERAL.—The Secretary of the Treasury 

22 shall invest such amounts in the Fund that are not, 

23 in the judgment of the Secretary of the Treasury, re24 quired to meet needs for current withdrawals. 


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1 (2) OBLIGATIONS OF UNITED STATES.—Invest2 ments may be made only in interest-bearing obliga3 tions of the United States. 

4 (e) REPORTS.— 

5 (1) REPORTS TO SECRETARY.—For each year 

6 during the term of a loan made under subsection (c), 

7 the State or Indian tribe that received the loan shall 

8 submit to the Secretary a report describing the State 

9 or tribal alternative energy sources program for which 

10 the loan was made and the activities conducted under 

11 the program using the loan funds during that year. 

12 (2) REPORT TO CONGRESS.—Not later than Sep13 tember 30 of each year that loans made under sub14 section (c) are outstanding, the Secretary shall submit 

15 a report to the Congress describing the total amount 

16 of such loans provided under subsection (c) to each el17 igible State and Indian tribe during the fiscal year 

18 ending on such date, and an evaluation on effective19 ness of the Fund. 

20 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

21 authorized to be appropriated to the Fund $5,000,000,000. 

22 (g) DEFINITIONS.—For purposes of this section, the 

23 following definitions shall apply: 

24 (1) INDIAN TRIBE.—The term ‘‘Indian tribe’’ has 

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1 tive American Housing Assistance and Self-Deter2 mination Act of 1996 (25 U.S.C. 4103). 

3 (2) STATE.—The term ‘‘State’’ means each of the 

4 several States, the Commonwealth of Puerto Rico, the 

5 District of Columbia, the Commonwealth of the North6 ern Mariana Islands, Guam, the Virgin Islands, 

7 American Samoa, the Trust Territories of the Pacific, 

8 or any other possession of the United States. 

9 SEC. 22. GAO REPORTS ON AVAILABILITY OF AFFORDABLE 

10 MORTGAGES. 

11 (a) STUDY.—The Comptroller General of the United 

12 States shall periodically, as necessary to comply with sub13 section (b), examine the impact of this Act and the amend14 ments made by this Act on the availability of affordable 

15 mortgages in various areas throughout the United States, 

16 including cities having older infrastructure and limited 

17 space for the development of new housing. 

18 (b) REPORTS.—The Comptroller General shall submit 

19 reports under this subsection to the Committee on Financial 

20 Services of the House of Representatives and the Committee 

21 on Banking, Housing, and Urban Affairs of the Senate that 

22 shall include— 

23 (1) a detailed statement of the most recent find24 ings pursuant to subsection (a); and 


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1 (2) if the Comptroller General finds that this Act 

2 or the amendments made by this Act have directly or 

3 indirectly resulted in consequences that limit the 

4 availability or affordability of mortgages in any area 

5 or areas within the United States, including any city 

6 having older infrastructure and limited space for the 

7 development of new housing, any recommendations 

8 for any additional actions at the Federal, State, or 

9 local levels that the Comptroller General considers 

10 necessary or appropriate to mitigate such effects. 

11 The first report under this subsection shall be submitted not 

12 later than the expiration of the 3-year period beginning on 

13 the date of the enactment of this Act and thereafter, the 

14 Comptroller General shall submit a report pursuant to a 

15 joint request for such a report made by the Chairman and 

16 Ranking Members of the Committee on Financial Services 

17 of the House of Representatives and of the Committee on 

18 Banking, Housing, and Urban Affairs of the Senate. 

19 SEC. 23. PUBLIC HOUSING ENERGY COST REPORT. 

20 (a) COLLECTION OF INFORMATION BY HUD.—The 

21 Secretary of Housing and Urban Development shall obtain 

22 from each public housing agency, by such time as may be 

23 necessary to comply with the reporting requirement under 

24 subsection (b), information regarding the energy costs for 

25 public housing administered or operated by the agency. For 


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1 each public housing agency, such information shall include 

2 the monthly energy costs associated with each separate 

3 building and development of the agency, for the most re4 cently completed 12-month period for which such informa5 tion is available, and such other information as the Sec6 retary determines is appropriate in determining which 

7 public housing buildings and developments are most in need 

8 of repairs and improvements to reduce energy needs and 

9 costs and become more energy efficient. 

10 (b) REPORT.—Not later than the expiration of the 12- 

11 month period beginning on the date of the enactment of this 

12 Act, the Secretary of Housing and Urban Development shall 

13 submit a report to the Congress setting forth the informa14 tion collected pursuant to subsection (a). 

15 SEC. 24. INSURANCE COVERAGE FOR LOANS FOR FINANC16 ING OF RENEWABLE ENERGY SYSTEMS 

17 LEASED FOR RESIDENTIAL USE. 

18 (a) PURPOSES.—The purposes of this section are— 

19 (1) to encourage residential use of renewable en20 ergy systems by minimizing up-front costs and pro21 viding immediate utility cost savings to consumers 

22 through leasing of such systems to homeowners; 

23 (2) to reduce carbon emissions and the use of 

24 nonrenewable resources; 


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1 (3) to encourage energy-efficient residential con2 struction and rehabilitation; 

3 (4) to encourage the use of renewable resources 

4 by homeowners; 

5 (5) to minimize the impact of development on 

6 the environment; 

7 (6) to reduce consumer utility costs; and 

8 (7) to encourage private investment in the green 

9 economy. 

10 (b) AUTHORITY.—The Secretary of Housing and 

11 Urban Development may, upon application by an author12 ized renewable energy lender and in accordance with such 

13 terms and conditions as the Secretary may prescribe, con14 sistent with the purposes of this section, make commitments 

15 to insure, and insure, loans made by such lenders to home16 builders, renewable energy installers or manufacturers, pub17 lic or private corporations or partnerships, associations, 

18 trusts, or other qualified persons or entities, to finance the 

19 acquisition of renewable energy systems for lease to home20 owners for use at their residences. 

21 (c) EFFECTIVE DATE OF INSURANCE.—Insurance pro22 vided pursuant to this section for a loan shall become effec23 tive only upon the expiration of the 5-year period beginning 

24 upon the original execution of a renewable energy system 


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1 lease (as such term is defined in subsection (o)) for the re2 newable energy system. 

3 (d) LIMITATION ON PRINCIPAL AMOUNT.— 

4 (1) LIMITATION.—The principal amount of the 

5 loan insured under this section shall not exceed the 

6 residual value of the renewable energy system. 

7 (2) RESIDUAL VALUE.—For purposes of this sub8 section— 

9 (A) the residual value of a renewable energy 

10 system shall be the amount that is equal to the 

11 fair market value of the future revenue stream 

12 from the sale of the expected remaining elec13 tricity production from the system, pursuant to 

14 the easement granted in accordance with sub15 section (e); and 

16 (B) the fair market value of the future rev17 enue stream for each year of the remaining life 

18 of the renewable energy system shall be deter19 mined based on the net present value of the re20 newable energy system manufacturer’s power 

21 output production warranty for the system and 

22 the forecast of regional residential electricity 

23 prices made by the Energy Information Admin24 istration of the Department of Energy. 


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1 (e) EASEMENT FOR SALE OF REMAINING ELEC2 TRICITY.—The Secretary may not insure a loan for financ3 ing of renewable energy systems under this section unless 

4 the borrower under the loan ensures, in accordance with 

5 such requirements as the Secretary shall establish, con6 sistent with the purposes of this section, that the systems 

7 financed will be leased only to homeowners that grant ease8 ments sufficient to provide for the sale of remaining elec9 tricity production from the system to a wholesale or retail 

10 electrical power grid. 

11 (f) DISCOUNT OR PREPAYMENT.—To encourage utili12 zation of renewable energy systems, the Secretary shall en13 sure that a homebuilder’s or other investor’s discount or 

14 prepayment of a homeowner’s renewable energy system lease 

15 shall not adversely affect that homeowner’s mortgage re16 quirements. 

17 (g) ELIGIBILITY OF LENDERS.—The Secretary may 

18 not insure a loan under this section unless the lender mak19 ing the loan— 

20 (1)(A) is an institution that qualifies as a green 

21 banking center pursuant to section 8(x) of the Federal 

22 Deposit Insurance Act (12 U.S.C. 1818(x)) or section 

23 206(x) of the Federal Credit Union Act (12 U.S.C. 

24 1786(x)); or 


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1 (B) meets such other requirements as the Sec2 retary shall establish for participation of renewable 

3 energy lenders in the program under this section; and 

4 (2) meets such qualifications as the Secretary 

5 shall establish for all lenders for participation in the 

6 program under this section and is approved by the 

7 Secretary as meeting such qualifications. 

8 (h) CERTIFICATE OF INSURANCE.—Insurance of a loan 

9 under this section shall be evidenced by a certificate of in10 surance coverage issued by the Secretary to the lender under 

11 the loan. Such certificate shall set forth the fair market 

12 value of the future revenue stream for each year of the re13 maining life of the renewable energy system as determined 

14 in accordance with subsection (d). 

15 (i) PAYMENT OF INSURANCE.— 

16 (1) IN GENERAL.—The Secretary shall provide 

17 for the filing of claims for insurance under this sec18 tion and the payment of such claims. A claim may 

19 be paid only upon a default under the loan insured 

20 under this section and the assignment, transfer, and 

21 delivery to the Secretary of all rights and interests 

22 arising under the loan and all claims of the lender or 

23 the assigns of the lender against the borrower or oth24 ers arising under the loan transaction. 


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1 (2) LIEN.—Upon payment of a claim for insur2 ance of a loan under this section, the Secretary shall 

3 be granted a lien on the underlying renewable energy 

4 system assets and any associated revenue stream from 

5 use of that system, which shall be superior to all other 

6 liens on such assets, and the residual value of that 

7 system and the revenue stream shall be at least equal 

8 to the unpaid balance of the loan amount covered by 

9 the certificate of insurance. The Secretary shall be en10 titled to any revenue generated by the renewable en11 ergy system from selling electricity to the grid when 

12 an insurance claim has been paid out. 

13 (j) ASSIGNMENT AND TRANSFERABILITY OF INSUR14 ANCE.—The holder of insurance provided under this section 

15 may assign or transfer the insurance in whole or in part, 

16 to another lender, subject to such requirements as the Sec17 retary may prescribe. 

18 (k) PREMIUMS AND CHARGES.— 

19 (1) INSURANCE FEE.—The Secretary shall fix 

20 and collect premiums for insurance of loans under 

21 this section, that shall be paid by the qualified appli22 cant at the time of issuance of the certificate of insur23 ance to the lender and shall be adequate, in the deter24 mination of the Secretary, to cover expenses and prob25 able losses, including any costs (as such term is deVerDate Mar 15 2010 22:52 Sep 22, 2010 Jkt 089200 PO 00000 Frm 00082 Fmt 6652 Sfmt 6203 E:\BILLS\H2336.RH H2336

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1 fined in section 502 of the Federal Credit Reform Act 

2 of 1990 (2 U.S.C. 661a) of loan insurance under this 

3 section. In no event may such premium exceed 3 per4 cent of the principal obligation of the loan being in5 sured. 

6 (2) PROHIBITION ON OTHER CHARGES.—Except 

7 as provided in paragraph (1), the Secretary may not 

8 assess any fees, including user fees, insurance pre9 miums, or charges in connection with loan insurance 

10 provided under this section. 

11 (l) FULL FAITH AND CREDIT.—The certificate of in12 surance issued by the Secretary under this section shall be 

13 backed by the full faith and credit of the United States of 

14 America. 

15 (m) REGULATIONS.—The Secretary shall issue such 

16 regulations as may be necessary to carry out this section. 

17 The Secretary shall issue final or interim final regulations 

18 not later than the expiration of the 180-day period begin19 ning on the date of the enactment of this Act. 

20 (n) INELIGIBILITY FOR PURCHASE BY FEDERAL FI21 NANCING BANK.—Notwithstanding the provisions of the 

22 Federal Financing Bank Act of 1973 (12 U.S.C. 2281 et 

23 seq.) or any other provision of law, no debt obligation that 

24 is insured or committed to be insured by the Secretary 


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1 under this section shall be subject to the provisions of such 

2 Act. 

3 (o) DEFINITIONS.—For purposes of this section, the 

4 following definitions apply: 

5 (1) RENEWABLE ENERGY SYSTEM LEASE.—The 

6 term ‘‘renewable system energy lease’’ means an 

7 agreement between a qualified investor in a renewable 

8 energy system and a homeowner pursuant to which 

9 the homeowner grants an easement to the investor to 

10 install, maintain, use, and otherwise access the re11 newable energy system and leases the use of that sys12 tem from the qualified investor for a specified term. 

13 (2) RENEWABLE ENERGY SYSTEM.—The term 

14 ‘‘renewable energy system’’ means a system that gen15 erates energy from naturally replenished energy 

16 sources such as sunlight, wind, rain, tides or geo17 thermal heat. 

18 (3) RENEWABLE ENERGY MANUFACTURER.—The 

19 term ‘‘renewable energy manufacturer’’ means a man20 ufacturer of renewable energy systems. 

21 SEC. 25. GREEN GUARANTEES. 

22 (a) AUTHORITY TO GUARANTEE ‘‘GREEN PORTION’’ 

23 OF ELIGIBLE MORTGAGES.— 

24 (1) IN GENERAL.—The Secretary of Housing and 

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1 antee under this section and may guarantee, the re2 payment of the portions of the principal obligations 

3 of eligible mortgages that are used to finance eligible 

4 sustainable building elements for the housing that is 

5 subject to the mortgage. 

6 (2) AMOUNT OF GUARANTEE.—A guarantee 

7 under this section by the Secretary in connection with 

8 an eligible mortgage shall not exceed a percentage of 

9 the green portion (as such term is defined in sub10 section (g)) of the mortgage, as shall be established by 

11 the Secretary and may be established on a regional 

12 basis as the Secretary determines appropriate. 

13 (b) ELIGIBLE MORTGAGES.—To be considered an eligi14 ble mortgage for purposes of this section, a mortgage shall 

15 comply with all of the following requirements: 

16 (1) ACQUISITION OR CONSTRUCTION OF HOUS17 ING.—The mortgage shall be made for the acquisition 

18 or construction of single- or multifamily housing and 

19 repayment of the mortgage shall be secured by an in20 terest in such housing. 

21 (2) FINANCING OF ELIGIBLE SUSTAINABLE

22 BUILDING ELEMENTS THROUGH GREEN PORTION OF

23 MORTGAGE.—A portion of the principal obligation of 

24 the mortgage, which meets the requirements under 

25 subsection (c), shall be used only for financing the 


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1 provision of eligible sustainable building elements for 

2 the housing for which the mortgage was made. 

3 (3) MAXIMUM MORTGAGE AMOUNT.—The prin4 cipal obligation of the mortgage (including the eligible 

5 portion of such mortgage, and such initial service 

6 charges, appraisal, inspection, and other fees as the 

7 Secretary shall approve) may not exceed the following 

8 amounts: 

9 (A) SINGLE-FAMILY HOUSING.—Such dollar 

10 amounts for single-family housing as the Sec11 retary shall establish, which may be established 

12 on the basis of the number of dwelling units in 

13 the housing, as the Secretary considers appro14 priate. 

15 (B) MULTIFAMILY HOUSING.—Such dollar 

16 amounts for multifamily housing as the Sec17 retary shall establish, which may be established 

18 on the basis of the number of dwelling units in 

19 the housing and the number of bedrooms in such 

20 dwelling units, as the Secretary considers appro21 priate. 

22 (4) REPAYMENT.—The mortgage meets such re23 quirements as the Secretary shall establish to ensure 

24 that there is a reasonable prospect of repayment of the 


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1 principal and interest on the obligation by the mort2 gagor. 

3 (5) MORTGAGE TERMS.—The mortgage shall 

4 meet such requirements with respect to loan-to-value 

5 ratio, mortgagor credit scores, debt-to-income ratio, 

6 and other underwriting standards, term to maturity, 

7 interest rates and amortization, including amortiza8 tion of the green portion of the mortgage, and other 

9 mortgage terms as the Secretary shall establish. 

10 (c) LIMITATIONS ON GREEN PORTION OF MORT11 GAGE.—The requirements under this subsection with respect 

12 to the green portion of an eligible mortgage are as follows: 

13 (1) PERCENTAGE LIMITATION.—Such portion 

14 shall not exceed, in the case of single-family or multi15 family housing, 10 percent of the total principal obli16 gation of the mortgage. 

17 (2) DOLLAR AMOUNT LIMITATION.—Such portion 

18 shall not exceed— 

19 (A) in the case of single-family housing, 

20 such maximum dollar amount limitation as the 

21 Secretary shall establish, which may be estab22 lished on the basis of the number of dwelling 

23 units in the housing, as the Secretary considers 

24 appropriate; and 


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1 (B) in the case of multifamily housing, such 

2 maximum dollar amount limitation as the Sec3 retary shall establish, which limitation may be 

4 established on the basis of the number of dwelling 

5 units in the housing and the number of bedrooms 

6 in such dwelling units, as the Secretary con7 siders appropriate. 

8 (3) COST-EFFECTIVENESS LIMITATION.—Such 

9 portion shall not exceed the total present value of the 

10 savings (as determined in accordance with subsection 

11 (d)) attributable to the incorporation of the eligible 

12 sustainable building elements to be financed with the 

13 green portion of the mortgage that are to be realized 

14 over the useful life of such elements. 

15 (d) ELIGIBLE SUSTAINABLE BUILDING ELEMENTS.— 

16 The Secretary may not guarantee any eligible mortgage 

17 under this section unless the mortgagor has demonstrated, 

18 in accordance with such requirements as the Secretary shall 

19 establish, the amount of savings attributable to incorpora20 tion of the sustainable building elements to be financed with 

21 the green portion of the mortgage, as measured by the Na22 tional Green Building Standard for all residential con23 struction developed by the National Association of Home 

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1 proved by the American National Standards Institute, as 

2 updated and in effect at the time of such demonstration. 

3 (e) GUARANTEE FEE.— 

4 (1) ASSESSMENT AND COLLECTION.—The Sec5 retary shall assess and collect fees for guarantees 

6 under this section in amounts that the Secretary de7 termines are sufficient to cover the costs (as such term 

8 is defined in section 502 of the Federal Credit Reform 

9 Act of 1990 (2 U.S.C. 661a)) of such guarantees. 

10 (2) AVAILABILITY.—Fees collected under this 

11 subsection shall be deposited by the Secretary in the 

12 Treasury of the United States and shall remain avail13 able until expended, subject to such other conditions 

14 as are contained in annual appropriations Acts. 

15 (f) PAYMENT OF GUARANTEE.— 

16 (1) DEFAULT.— 

17 (A) RIGHT TO PAYMENT.—If a mortgagor 

18 under a mortgage guaranteed under this section 

19 defaults (as defined in regulations issued by the 

20 Secretary and specified in the guarantee con21 tract) on the obligation under the mortgage— 

22 (i) the holder of the guarantee shall 

23 have the right to demand payment of the 

24 unpaid amount of the guaranteed portion of 


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1 the mortgage, to the extent provided under 

2 subsection (a)(2), from the Secretary; and 

3 (ii) within such period as may be spec4 ified in the guarantee or related agreements, 

5 the Secretary shall pay to the holder of the 

6 guarantee, to the extent provided under sub7 section (a)(2), the unpaid interest on, and 

8 unpaid principal of the portion of guaran9 teed portion of the mortgage with respect to 

10 which the borrower has defaulted, unless the 

11 Secretary finds that there was no default by 

12 the borrower in the payment of interest or 

13 principal or that the default has been rem14 edied. 

15 (B) FORBEARANCE.—Nothing in this para16 graph precludes any forbearance by the holder of 

17 an eligible mortgage for the benefit of the mort18 gagor which may be agreed upon by the parties 

19 to the mortgage and approved by the Secretary. 

20 (2) SUBROGATION.— 

21 (A) IN GENERAL.—If the Secretary makes a 

22 payment under paragraph (1), the Secretary 

23 shall be subrogated to the extent of such payment 

24 to the rights of the recipient of the payment as 

25 specified in the guarantee or related agreements 


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1 including, if appropriate, the authority (not2 withstanding any other provision of law)— 

3 (i) to complete, maintain, operate, 

4 lease, or otherwise dispose of any property 

5 acquired pursuant to such guarantee or re6 lated agreements; or 

7 (ii) to permit the mortgagor, pursuant 

8 to an agreement with the Secretary, to con9 tinue to occupy the property subject to the 

10 mortgage, if the Secretary determines such 

11 occupancy to be appropriate. 

12 (B) ALLOCATION OF RIGHTS AND RESPON13 SIBILITIES.—In the event of a payment under 

14 paragraph (1), the rights of the Secretary, with 

15 respect to any property acquired pursuant to a 

16 guarantee or related agreements, shall be supe17 rior to the rights of any other person with re18 spect to the property, except that as long as 

19 amounts remain due to the recipient of the pay20 ment under the terms of the eligible mortgage 

21 and as long as the recipient diligently pursues 

22 collection of all amounts due under the eligible 

23 mortgage, all decisions with respect to the eligi24 ble mortgage, including efforts to collect the un25 paid amounts, shall be made by the recipient, 


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1 Provided, That any amounts collected by the re2 cipient less reasonable out-of-pocket costs of col3 lection shall be shared with the Secretary in the 

4 same ratio as the guaranteed portion bears to the 

5 original principal amount of the eligible mort6 gage. 

7 (C) TERMS AND CONDITIONS.—A guarantee 

8 agreement shall include such detailed terms and 

9 conditions as the Secretary determines appro10 priate to protect the interests of the United 

11 States in the case of default. 

12 (3) FULL FAITH AND CREDIT.—The full faith 

13 and credit of the United States is pledged to the pay14 ment of all guarantees issued under this section with 

15 respect to principal and interest. 

16 (g) DEFINITIONS.—For purposes of this section, the 

17 following definitions shall apply: 

18 (1) ELIGIBLE MORTGAGE.—The term ‘‘eligible 

19 mortgage’’ means a mortgage that meets the require20 ments under subsection (b). 

21 (2) GREEN PORTION.—The term ‘‘green portion’’ 

22 means, with respect to an eligible mortgage, the por23 tion of the mortgage principal referred to in sub24 section (b)(2) that is attributable, as determined in 

25 accordance with regulations issued by the Secretary, 


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1 to the increased costs incurred in financing provision 

2 of sustainable building elements for the housing for 

3 which the mortgage was made, as compared to the 

4 costs that would have been incurred in financing the 

5 provision of other building elements for the housing 

6 for the same purposes that are commonly or conven7 tionally used but are not sustainable building ele8 ments. 

9 (3) GUARANTEED PORTION.—The term ‘‘guaran10 teed portion’’ means, with respect to an eligible mort11 gage guaranteed under this section, the green portion 

12 of the mortgage that is so guaranteed. 

13 (4) MORTGAGE.—The term ‘‘mortgage’’ has the 

14 meaning given such term in section 201 of the Na15 tional Housing Act (12 U.S.C. 1707). 

16 (5) MULTIFAMILY HOUSING.—The term ‘‘multi17 family housing’’ means a residential property con18 sisting of five or more dwelling units. 

19 (6) SECRETARY.—The term ‘‘Secretary’’ means 

20 the Secretary of Housing and Urban Development. 

21 (7) SINGLE-FAMILY HOUSING.—The term ‘‘single22 family housing’’ means a residential property con23 sisting of one to four dwelling units. 

24 (8) SUSTAINABLE BUILDING ELEMENT.—The 

25 term ‘‘sustainable building element’’ means such 


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1 building elements, as the Secretary shall define, that 

2 have energy efficiency or environmental sustainability 

3 qualities that are superior to such qualities for other 

4 building elements for the same purposes that are com5 monly or conventionally used. 

6 (h) AUTHORIZATION OF APPROPRIATIONS.—There is 

7 authorized to be appropriated for costs (as such term is de8 fined in section 502 of the Federal Credit Reform Act of 

9 1990 (2 U.S.C. 661a) of guarantees under this section 

10 $500,000,000 for each of fiscal years 2010 through 2014. 

11 (i) REGULATIONS.—The Secretary shall issue any reg12 ulations necessary to carry out this section. 

13 SEC. 26. GREEN DIVIDEND PROGRAM FOR FEDERALLY AS14 SISTED RENTAL HOUSING. 

15 (a) AUTHORITY.—The Secretary shall establish a pro16 gram under this section to provide green dividends to own17 ers of covered federally assisted housing projects who under18 take utility cost-saving measures that result in utility cost 

19 savings for such housing. 

20 (b) GREEN DIVIDENDS.— 

21 (1) IN GENERAL.—A green dividend under this 

22 section with respect to a covered federally assisted 

23 housing project shall be an annual distribution, to the 

24 owner of the project, of an amount of the surplus 

25 project funds that is equal to the sum of— 


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1 (A) 50 percent of the annual utility cost 

2 savings resulting from the utility cost-saving 

3 measures conducted for the project; and 

4 (B) any reasonable costs, as determined by 

5 the Secretary pursuant to subsection (d)(4), in6 curred by the owner in carrying out the utility 

7 cost-saving measures, including required report8 ing and monitoring costs and financing costs in9 curred by the owner or a third party, in compli10 ance with guidelines established pursuant to sub11 section (d)(3). 

12 (2) ADDITIONAL TO STANDARD DISTRIBUTION.— 

13 Notwithstanding any other law or regulation relating 

14 to a limitation on distributions for a covered federally 

15 assisted housing project, a green dividend under this 

16 section shall be in addition to the standard distribu17 tion that the owner of the project is authorized to re18 ceive from the project pursuant to the regulations of 

19 the Secretary. 

20 (c) STANDARDS FOR MEASUREMENT AND MONI21 TORING.—In carrying out the program under this section, 

22 the Secretary shall establish and utilize the following stand23 ardized methods: 

24 (1) Methods that an owner of a covered federally 

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1 ure the baseline utility use of the project before under2 taking the utility cost-saving measures for the project. 

3 (2) Methods that an owner of a covered federally 

4 assisted housing project may use to effectively monitor 

5 reductions in the utility use of the project resulting 

6 from the completed utility cost-saving measures for 

7 the project. 

8 (3) Methods that an owner of a covered federally 

9 assisted housing project may use to track, and that 

10 the Secretary may use to verify, utility cost savings 

11 resulting from the utility cost-saving measures for the 

12 project that account for the effect of changes in utility 

13 costs and such other factors that the Secretary con14 siders necessary or appropriate. 

15 (d) OTHER REQUIREMENTS.— 

16 (1) APPLICATION AND SELECTION.—The Sec17 retary shall establish requirements for owners of cov18 ered federally assisted housing projects to apply for 

19 participation in the program under this section and 

20 shall select among such applications based upon selec21 tion criteria, which the Secretary shall establish. 

22 (2) COST-EFFECTIVENESS.—The Secretary shall 

23 establish guidelines to ensure that any utility cost24 saving measures undertaken pursuant to the program 

25 under this section are cost-effective in relation to the 


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1 utility cost savings resulting from the measures and 

2 the green dividend provided under this section to the 

3 owner. 

4 (3) ENERGY PERFORMANCE CONTRACTS.—The 

5 Secretary shall establish guidelines for the use of en6 ergy performance contracting in carrying out utility 

7 cost-saving measures pursuant to the program under 

8 this section. 

9 (4) FINANCING COSTS.—The Secretary shall es10 tablish guidelines for the financing of the reasonable 

11 costs incurred by an owner of a covered federally as12 sisted housing project in carrying out utility cost-sav13 ing measures under the program under this section, 

14 and whether such costs, whether financed by the lim15 ited dividend owner or a third party, shall be repay16 able from project funds. 

17 (5) REPORTING.— 

18 (A) TO SECRETARY.—The Secretary shall 

19 require each owner of a covered federally assisted 

20 housing project for which a green dividend is 

21 provided pursuant to the program under this 

22 section to submit to the Secretary such reports 

23 regarding the project, the utility cost-saving 

24 measures undertaken for the project, and the 

25 utility cost savings of the project in accordance 


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1 with such requirements as the Secretary shall es2 tablish. 

3 (B) TO CONGRESS.—The Secretary shall 

4 submit reports to the Congress describing the im5 plementation and operation of the program 

6 under this section, as follows: 

7 (i) INITIAL REPORT.—The Secretary 

8 shall submit reports describing the initial 

9 implementation and operation of the pro10 gram not later than the expiration of the 

11 180-day period beginning upon the date of 

12 the enactment of this Act. 

13 (ii) ANNUAL REPORTS.—Not later than 

14 the expiration of the 12-month period that 

15 begins upon the expiration of the period 

16 specified clause (i), and upon the expiration 

17 of each successive 12-month period there18 after, the Secretary shall submit a report 

19 describing the ongoing operation of the pro20 gram. 

21 (e) PREEMPTION OF CONFLICTING STATE LAWS LIM22 ITING DISTRIBUTIONS.— 

23 (1) IN GENERAL.—Except as provided in para24 graph (2), no State or political subdivision of a State 

25 may establish, continue in effect, or enforce any law, 


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1 regulation, or administrative requirement that limits 

2 or restricts, to an amount that is less than the sum 

3 of the amounts provided for under paragraphs (1) 

4 and (2) of subsection (b), the amount of surplus 

5 project funds accruing after the date of the enactment 

6 of this section that may be distributed from any cov7 ered federally assisted housing project. 

8 (2) EXCEPTION AND WAIVER.—Paragraph (1) 

9 shall not apply to any law or regulation to the extent 

10 such law or regulation applies to— 

11 (A) a State-financed covered federally as12 sisted housing project; or 

13 (B) a covered federally assisted housing 

14 project for which the owner has elected to waive 

15 the applicability of paragraph (1). 

16 (f) DEFINITIONS.—For purposes of this section, the fol17 lowing definitions shall apply: 

18 (1) COVERED FEDERALLY ASSISTED HOUSING

19 PROJECT.—The term ‘‘covered federally assisted hous20 ing project’’ means any multifamily rental housing 

21 project that— 

22 (A) is provided any rental assistance, sub23 sidy, or other financial assistance by the Sec24 retary; and 


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1 (B) that is subject to a limitation on dis2 tributions to the owner, whether for-profit or 

3 non-for-profit, of project funds under section 

4 200.106(a), 236.1(c), 880.205(a) or (b), 

5 881.205(a) or (b), or 883.306(a) or (b) of title 24 

6 of the Code of Federal Regulations, or any other 

7 statute or regulation applicable to the project. 

8 (2) SECRETARY.—The term ‘‘Secretary’’ means 

9 the Secretary of Housing and Urban Development. 

10 (3) SURPLUS PROJECT FUNDS.—The term ‘‘sur11 plus project funds’’ means, with respect to a covered 

12 federally assisted housing project, the net revenue of 

13 the project after all project expenses have been paid, 

14 or funds have been set aside for the payment thereof, 

15 and any reserve requirements applicable to the project 

16 have been met. 

17 (4) UTILITY COST SAVINGS.—The term ‘‘utility 

18 cost savings’’ means, with respect to utility cost-sav19 ing measures undertaken for a covered federally as20 sisted housing project, the difference between— 

21 (A) the energy or water costs that would 

22 have been incurred for the project if such utility 

23 cost-saving measures were not completed; and 


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1 (B) the actual energy or water costs for the 

2 project after completion of the utility cost-saving 

3 measures. 

4 (5) UTILITY COST-SAVING MEASURES.—The term 

5 ‘‘utility cost-saving measures’’ means, with respect to 

6 a covered federally assisted housing project, any reha7 bilitation, renovation, retrofit, improvement, or alter8 ation for the project that incorporates any technology, 

9 equipment, fixture, or material, or promotes any 

10 practice, designed to reduce the energy or water con11 sumption of the project. Such measures shall utilize 

12 Energy Star or WaterSense rated products or devices 

13 at a minimum. In cases in which there is no Energy 

14 Star or WaterSense designated product or device, the 

15 Secretary shall designate the minimum standards. 

16 (g) REGULATIONS.—Not later than the expiration of 

17 the 180-day period beginning on the date of the enactment 

18 of this Act, the Secretary shall issue any regulations nec19 essary to carry out this section. 

20 SEC. 27. USE OF RESIDUAL RECEIPTS AND RESERVE FOR 

21 REPLACEMENTS FUNDS FOR GREEN RETRO22 FITS OF FEDERALLY ASSISTED RENTAL 

23 HOUSING. 

24 The Secretary of Housing and Urban Development 

25 shall— 


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1 (1) review the regulations and agreements of the 

2 Department of Housing and Urban Development con3 cerning residual receipts accounts in federally assisted 

4 rental housing that is subject to a limitation on dis5 tributions, to the owner, of project funds under section 

6 200.106(a), 236.1(c), 880.205, 881.205, or 883.306 of 

7 title 24 of the Code of Federal Regulations, or any 

8 other statute or regulation applicable to the project, to 

9 clarify whether the use of such funds for other project 

10 purposes includes activities related to the energy effi11 ciency at properties with such residual receipts ac12 counts; and 

13 (2) revise its policies with regard to the use of 

14 reserve for replacement funds to encourage the use of 

15 such reserves, where practical, for energy efficiency 

16 items. 

17 SEC. 28. STUDY ON BUILDING CODES EFFECTS ON CON18 STRUCTION AND INSTALLATION OF DIS19 TRIBUTIVE ENERGY GENERATION MEASURES 

20 AND WATER EFFICIENCY MEASURES. 

21 (a) STUDY.—The Comptroller General of the United 

22 States shall conduct a study to analyze to what extent pro23 visions of State and local building codes create obstacles or 

24 otherwise conflict with efforts to enable and encourage the 


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1 construction and installation in such projects of distributive 

2 energy generation measures and water efficiency measures. 

3 (b) PROVISION OF INFORMATION TO ENERGY INFORMA4 TION ADMINISTRATION.—The Comptroller General shall 

5 provide any information collected in conducting the study 

6 under this section to the Secretary of Energy to supplement 

7 information collected and maintained by the Energy Infor8 mation Administration of the Department of Energy re9 garding residential energy consumption. 

10 (c) REPORT.—Not later than the expiration of the 6- 

11 month period beginning on the date of the enactment of this 

12 Act, the Comptroller General shall submit a report to the 

13 Congress and to the Secretary of Energy setting forth the 

14 results and conclusions of the study under this section. 

15 SEC. 29. COMMUNITY BUILDING CODE ADMINISTRATION 

16 GRANTS. 

17 (a) SHORT TITLE.—This section may be cited as the 

18 ‘‘Community Building Code Administration Grant Act of 

19 2009’’. 

20 (b) GRANT PROGRAM AUTHORIZED.— 

21 (1) GRANT AUTHORIZATION.—The Secretary of 

22 Housing and Urban Development shall, to the extent 

23 amounts are made available for grants under this sec24 tion, provide grants to local building code enforce25 ment departments. 


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1 (2) COMPETITIVE AWARDS.—The Secretary shall 

2 award grants under paragraph (1) on a competitive 

3 basis pursuant to the criteria set forth in subsection 

4 (f), but also taking into consideration the following: 

5 (A) The financial need of each building code 

6 enforcement department. 

7 (B) The benefit to the jurisdiction of having 

8 an adequately funded building code enforcement 

9 department. 

10 (C) The demonstrated ability of each build11 ing code enforcement department to work coop12 eratively with other local code enforcement of13 fices, health departments, and local prosecutorial 

14 agencies. 

15 (3) MAXIMUM AMOUNT.—The maximum amount 

16 of any grant awarded under this subsection shall not 

17 exceed $1,000,000. 

18 (c) REQUIRED ELEMENTS IN GRANT PROPOSALS.—In 

19 order to be eligible for a grant under subsection (b), a build20 ing code enforcement department of a jurisdiction shall sub21 mit to the Secretary the following: 

22 (1) A demonstration of the jurisdiction’s needs in 

23 executing building code enforcement administration. 

24 (2) A plan for the use of any funds received from 

25 a grant under this section that addresses the needs 


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1 discussed in paragraph (1) and that is consistent 

2 with the authorized uses established in subsection (d). 

3 (3) A plan for local governmental actions to be 

4 taken to establish and sustain local building code en5 forcement administration functions, without con6 tinuing Federal support, at a level at least equivalent 

7 to that proposed in the grant application. 

8 (4) A plan to create and maintain a program of 

9 public outreach that includes a regularly updated and 

10 readily accessible means of public communication, 

11 interaction, and reporting regarding the services and 

12 work of the building code enforcement department to 

13 be supported by the grant. 

14 (5) A plan for ensuring the timely and effective 

15 administrative enforcement of building safety and fire 

16 prevention violations. 

17 (d) USE OF FUNDS; MATCHING FUNDS.— 

18 (1) AUTHORIZED USES.—Amounts from grants 

19 awarded under subsection (b) may be used by the 

20 grant recipient to supplement existing State or local 

21 funding for administration of building code enforce22 ment. Such amounts may be used to increase staffing, 

23 provide staff training, increase staff competence and 

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1 ital expenditures specifically dedicated to the admin2 istration of the building code enforcement department. 

3 (2) ADDITIONAL REQUIREMENT.—Each building 

4 code enforcement department receiving a grant under 

5 subsection (b) shall empanel a code administration 

6 and enforcement team consisting of at least 1 full7 time building code enforcement officer, a city planner, 

8 and a health planner or similar officer. 

9 (3) MATCHING FUNDS REQUIRED.— 

10 (A) IN GENERAL.—To be eligible to receive 

11 a grant under this section, a building code en12 forcement department shall provide matching, 

13 non-Federal funds in the following amount: 

14 (i) In the case of a building code en15 forcement department serving an area with 

16 a population of more than 50,000, an 

17 amount equal to not less than 50 percent of 

18 the total amount of any grant to be award19 ed under this section. 

20 (ii) In the case of a building code en21 forcement department serving an area with 

22 a population of between 20,001 and 50,000, 

23 an amount equal to not less than 25 percent 

24 of the total amount of any grant to be 

25 awarded under this section 


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1 (iii) In the case of a building code en2 forcement department serving an area with 

3 a population of less than 20,000, an 

4 amount equal to not less than 12.5 percent 

5 of the total amount of any grant to be 

6 awarded under this section. 

7 (B) ECONOMIC DISTRESS.— 

8 (i) IN GENERAL.—The Secretary may 

9 waive the matching fund requirements 

10 under subparagraph (A), and institute, by 

11 regulation, new matching fund requirements 

12 based upon the level of economic distress of 

13 the jurisdiction in which the local building 

14 code enforcement department seeking such 

15 grant is located. 

16 (ii) CONTENT OF REGULATIONS.—Any 

17 regulations instituted under clause (i) shall 

18 include— 

19 (I) a method that allows for a 

20 comparison of the degree of economic 

21 distress among the local jurisdictions of 

22 grant applicants, as measured by the 

23 differences in the extent of growth lag, 

24 the extent of poverty, and the adjusted 


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1 age of housing in such jurisdiction; 

2 and 

3 (II) any other factor determined 

4 to be relevant by the Secretary in as5 sessing the comparative degree of eco6 nomic distress among such jurisdic7 tions. 

8 (4) IN-KIND CONTRIBUTIONS.—In determining 

9 the non-Federal share required to be provided under 

10 paragraph (3), the Secretary shall consider in-kind 

11 contributions, not to exceed 50 percent of the amount 

12 that the department contributes in non-Federal funds. 

13 (5) WAIVER OF MATCHING REQUIREMENT.—The 

14 Secretary shall waive the matching fund requirements 

15 under paragraph (3) for any recipient jurisdiction 

16 that has dedicated all building code permitting fees to 

17 the conduct of local building code enforcement. 

18 (e) RATING AND RANKING OF APPLICATIONS.—Eligible 

19 applications will be rated and ranked according to the cri20 teria under subsection (f). All complete applications shall 

21 be compared to one another and points shall be assigned 

22 on a continuum within each criteria with the maximum 

23 points awarded to the application that best meets the cri24 teria. 


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1 (f) CRITERIA.—The criteria under this subsection are 

2 as follows: 

3 (1) NEED AND COMMUNITY BENEFIT FROM CODE

4 ENFORCEMENT GRANT FUNDS.—The degree to which 

5 the application demonstrates the intent and means to 

6 ensure cooperative and effective working relationships 

7 between local building code enforcement officials and 

8 other local agencies, as well as a community-oriented 

9 approach to building code enforcement, with points 

10 awarded as follows: 

Description Maximum Points 

A detailed description of the capital expenditures to 

be acquired with grant funds and a demonstration 

that the items’ costs are reasonable. 

0–10 

The jurisdiction’s need for the capital expenditure 

and how the grant funds will fulfill this need. 

0–10 

The joint benefits provided by the proposed expenditure for the following groups or activities. Provide 

a brief explanation of the benefit. (1 point will be 

awarded for each response, 5 points maximum). 

1. Code enforcement program. 

2. Community or jurisdiction. 

3. Interdisciplinary code enforcement team. 

4. Housing preservation, rehabilitation programs, or 

neighborhood improvement programs. 

5. Special needs groups (disabled, elderly or low or 

very-low income, etc.). 

0–5 

Does the proposed capital expenditure provide a cost 

savings benefit to the jurisdiction? Provide a brief 

explanation of the cost savings. 

0–5. 

11 (2) CURRENT CODE ENFORCEMENT AND HOUSING

12 CONSERVATION PLAN.—Whether the local legislative 

13 body in which the applicant resides has adopted a 

14 plan that addresses residential structure conservation 

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1 ed, based on which of the descriptions from the fol2 lowing list best reflects such jurisdiction’s plan for 

3 building code enforcement activities, as follows: 

Description Maximum Points 

The plan provides for proactive code enforcement 

(not just responding to complaints), an interdisciplinary approach, and includes funding options for repairs and rehabilitation. 

10 

The plan only provides for proactive code enforcement (not just responding to complaints) and calls 

for an interdisciplinary approach and does not 

address funding options for repairs and rehabilitation. 

8 

The plan provides for some type of proactive code enforcement (other than just responding to complaints) but doesn’t address coordinated interdisciplinary activities with other local public 

agencies or funding options. 

6 

The plan provides for only reactive code enforcement. 4 

The plan only refers to a need to preserve and/or improve existing housing stock, without any code enforcement program. 2 

No existing plan. 0. 

4 (3) COMMUNITY-ORIENTED OR INTERDISCIPLI5 NARY CODE ENFORCEMENT.—The degree to which the 

6 application demonstrates the intent and means to en7 sure cooperative and effective working relationships 

8 between building code enforcement officials and other 

9 local agencies, as well as a community-oriented ap10 proach to code enforcement, with points awarded as 

11 follows: 


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Description Maximum Points 

Identify current or proposed interdisciplinary code 

enforcement programs or activities and the team 

members (example: code enforcement, police, local 

prosecutors, health department, building and planning, fire, etc.). Provide a description of the team’s 

code enforcement and coordination procedures, activities and services provided. If the current programs or resources are limited in scope, explain 

how receipt of the grant will be used to improve 

the program. 

0–10 

Identify current or proposed community-oriented 

code enforcement programs, activities, or services. 

(Examples: community clean-ups, Neighborhood 

Watch programs, community meetings, door-todoor code enforcement knock and talks, etc.). If the 

current programs or resources are limited in 

scope, explain how receipt of the grant will be used 

to improve the program. 

0–10. 

1 (4) PROACTIVE CODE ENFORCEMENT ACTIVI2 TIES.—The effectiveness of the proposed or existing 

3 proactive activities and programs operated by any ex4 isting building code enforcement program, which shall 

5 include points awarded as follows for any such activi6 ties or programs: 

Description Maximum Points 

Encourages repairs and preservation, rather than 

demolition or abandonment, of substandard residences. 

0–5 

Abatement of (a) lead hazards and lead-based paints, 

(b) toxic molds and dampness, and (c) displacement or relocation of residents. 

0–5 

Community clean-up campaigns. This may include 

recycling dates, free or reduced disposal rates at 

dumpsite, public clean-up days that encourage removal of unwanted or excess debris by making 

available extra trash pick-ups, dumpsites or trash/ 

recycling containers on specific dates to dispose of 

household debris, inoperable vehicles, tires, toxic 

materials, etc. 

0–5 


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Description Maximum Points 

Resource or referral programs for Federal, State, 

local, and private funds and other resources available in your jurisdiction that can assist with 

housing rehabilitation and repairs to rectify code 

violations. 

0–5 

Public education programs on housing issues. These 

could include community housing meetings dealing with homeownership, tenant/landlord issues, 

housing code enforcement, school age children’s 

programs with coloring books or handouts, housing 

safety pamphlets, etc. 

0–5 

Programs that encourage community involvement 

with groups; such as schools, church nonprofits, 

community service groups, utility companies, local 

stores, housing agency banks, etc. 

0–5. 

1 (5) CAPACITY TO FINANCIALLY AND TECHNICALLY

2 SUPPORT PROPOSED CAPITAL EXPENDITURES.—The 

3 degree to which the application demonstrates the ju4 risdiction’s financial and technical capacity to prop5 erly use and successfully support the proposed capital 

6 expenditure during the term of the grant, with points 

7 awarded as follows: 

Description Maximum Points 

The anticipated ongoing program funding for the 

duration of the grant program is adequate to financially support the use of the grant-financed 

equipment. Include details of funding and technical support sources for the capital expenditure 

(examples: insurance, paper, maintenance, training, supplies, personnel, monthly billing costs, 

etc.). 

0–5 

The jurisdiction has the technical capabilities to use 

and support equipment (examples: adequately 

trained staff or resources to provide training to 

operate technical equipment, local service provider 

for cell phones or 2-way radios, trained personnel 

to operate equipment, etc.). 

0–5. 

8 (g) EVALUATION AND REPORT.— 


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1 (1) IN GENERAL.—Grant recipients shall— 

2 (A) be obligated to fully account and report 

3 for the use of all grants funds; and 

4 (B) provide a report to the Secretary on the 

5 effectiveness of the program undertaken by the 

6 grantee and any other criteria requested by the 

7 Secretary for the purpose of indicating the effec8 tiveness of, and ideas for, refinement of the grant 

9 program. 

10 (2) REPORT.—The report required under para11 graph (1)(B) shall include a discussion of— 

12 (A) the specific capabilities and functions 

13 in local building code enforcement administra14 tion that were addressed using funds received 

15 under this section; 

16 (B) the lessons learned in carrying out the 

17 plans supported by the grant; and 

18 (C) the manner in which the programs sup19 ported by the grant are to be maintained by the 

20 grantee. 

21 (3) CONTENT OF REPORTS.—The Secretary 

22 shall— 

23 (A) require each recipient of a grant under 

24 this section to file interim and final reports 

25 under paragraph (2) to ensure that grant funds 


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1 are being used as intended and to measure the 

2 effectiveness and benefits of the grant program; 

3 and 

4 (B) develop and maintain a means whereby 

5 the public can access such reports, at no cost, via 

6 the Internet. 

7 (h) DEFINITIONS.—For purposes of this section, the 

8 following definitions shall apply: 

9 (1) BUILDING CODE ENFORCEMENT.—The term 

10 ‘‘building code enforcement’’ means the enforcement of 

11 any code, adopted by a State or local government, 

12 that regulates the construction of buildings and facili13 ties to mitigate hazards to life or property. Such term 

14 includes building codes, electrical codes, energy codes, 

15 fire codes, fuel gas codes, mechanical codes, and 

16 plumbing codes. 

17 (2) BUILDING CODE ENFORCEMENT DEPART18 MENT.—The term ‘‘building code enforcement depart19 ment’’ means an inspection or enforcement agency of 

20 a jurisdiction that is responsible for conducting build21 ing code enforcement. 

22 (3) JURISDICTION.—The term ‘‘jurisdiction’’ 

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1 ity to enforce building codes and regulations and to 

2 collect fees for building permits. 

3 (4) SECRETARY.—The term ‘‘Secretary’’ means 

4 the Secretary of Housing and Urban Development. 

5 (i) AUTHORIZATION OF APPROPRIATIONS.— 

6 (1) IN GENERAL.—There are authorized to be ap7 propriated $20,000,000 for each of fiscal years 2010 

8 through 2014 to the Secretary of Housing and Urban 

9 Development to carry out the provisions of this sec10 tion. 

11 (2) RESERVATION.—From the amount made 

12 available under paragraph (1), the Secretary may re13 serve not more than 5 percent for administrative 

14 costs. 

15 (3) AVAILABILITY.—Any funds appropriated 

16 pursuant to paragraph (1) shall remain available 

17 until expended. 


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Union Calendar No. 361 

111TH CONGRESS 

2D SESSION H. R. 2336 

[Report No. 111–619] 

A BILL 

To encourage energy efficiency and conservation 

ings, and to create sustainable communities. housing, commercial structures, and other buildand development of renewable energy sources for 

SEPTEMBER 22, 2010 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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