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[House Report 111-619]
[From the U.S. Government Publishing Office]

111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     111-619

======================================================================

 
        GREEN RESOURCES FOR ENERGY EFFICIENT HOUSING ACT OF 2010

                                _______
                                

 September 22, 2010.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Frank of Massachusetts, from the Committee on Financial Services, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 2336]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Financial Services, to whom was referred the 
bill (H.R. 2336) to encourage energy efficiency and 
conservation and development of renewable energy sources for 
housing, commercial structures, and other buildings, and to 
create sustainable communities, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................    30
Background and Need for Legislation..............................    31
Hearings.........................................................    34
Committee Consideration..........................................    35
Committee Votes..................................................    35
Committee Oversight Findings.....................................    35
Performance Goals and Objectives.................................    35
New Budget Authority, Entitlement Authority, and Tax Expenditures    36
Committee Cost Estimate..........................................    36
Congressional Budget Office Estimate.............................    36
Federal Mandates Statement.......................................    40
Advisory Committee Statement.....................................    41
Constitutional Authority Statement...............................    41
Applicability to Legislative Branch..............................    41
Earmark Identification...........................................    41
Section-by-Section Analysis of the Legislation...................    41
Changes in Existing Law Made by the Bill, as Reported............    47
Additional Views.................................................    60

                               Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Green Resources for 
Energy Efficient Neighborhoods Act of 2010'' or the ``GREEN Act of 
2010''.
  (b) Table of Contents.--The table of contents for 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.
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.

SEC. 2. DEFINITIONS.

  For purposes of this Act, the following definitions shall apply:
          (1) Energy-efficient mortgage.--The term ``energy-efficient 
        mortgage'' means--
                  (A) a mortgage loan under which the income of the 
                borrower, for purposes of qualification for such loan, 
                is considered to be increased by not less than $1 for 
                each $1 of savings projected to be realized by the 
                borrower as a result of cost-effective energy-saving 
                design, construction or improvements (including use of 
                renewable energy sources, such as solar, geothermal, 
                biomass, and wind, super-insulation, energy-saving 
                windows, insulating glass and film, and radiant 
                barrier) for the home for which the loan is made; or
                  (B) such other mortgage loan that recognizes such 
                savings as the Secretary may provide.
          (2) Green building standards.--The term ``green building 
        standards'' means standards to require use of sustainable 
        design principles to reduce the use of nonrenewable resources, 
        encourage energy-efficient construction and rehabilitation and 
        the use of renewable energy resources, minimize the impact of 
        development on the environment, and improve indoor air quality.
          (3) HUD.--The term ``HUD'' means the Department of Housing 
        and Urban Development.
          (4) HUD assistance.--The term ``HUD assistance'' means 
        financial assistance that is awarded, competitively or 
        noncompetitively, allocated by formula, or provided by HUD 
        rental assistance, direct loan, or capital grant.
          (5) Location-efficient mortgage.--The term ``location-
        efficient mortgage'' means--
                  (A) a mortgage loan under which--
                          (i) the income of the borrower, for purposes 
                        of qualification for such loan, is considered 
                        to be increased by not less than $1 for each $1 
                        of savings projected to be realized by the 
                        borrower because the location of the home for 
                        which loan is made will result in decreased 
                        transportation costs for the household of the 
                        borrower; or
                          (ii) the sum of the principal, interest, 
                        taxes, and insurance due under the mortgage 
                        loan is decreased by not less than $1 for each 
                        $1 of savings projected to be realized by the 
                        borrower because the location of the home for 
                        which loan is made will result in decreased 
                        transportation costs for the household of the 
                        borrower; or
                  (B) such other mortgage loan that recognizes such 
                savings as the Secretary may provide.
          (6) Nonresidential structure.--The term ``nonresidential 
        structures'' means only nonresidential structures that are 
        appurtenant to single-family or multifamily housing residential 
        structures, or those that are funded by the Secretary of 
        Housing and Urban Development through the HUD Community 
        Development Block Grant program.
          (7) Secretary.--The term ``Secretary'', unless otherwise 
        specified, means the Secretary of Housing and Urban 
        Development.

SEC. 3. IMPLEMENTATION OF ENERGY EFFICIENCY PARTICIPATION INCENTIVES 
                    FOR HUD PROGRAMS.

  (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall issue such regulations as 
may be necessary to establish annual energy efficiency participation 
incentives consistent with this Act to encourage participants in 
programs administered by the Secretary, including recipients under 
programs for which HUD assistance is provided, to achieve substantial 
improvements in energy efficiency.
  (b) Requirement for Appropriation of Funds.--The requirement under 
subsection (a) for the Secretary to provide annual energy efficiency 
participation incentives pursuant to the provisions of this Act shall 
be subject to the annual appropriation of necessary funds.

SEC. 4. BASIC HUD ENERGY EFFICIENCY STANDARDS AND STANDARDS FOR 
                    ADDITIONAL CREDIT.

  (a) Basic HUD Standard.--
          (1) Residential structures.--A residential single-family or 
        multifamily structure shall be considered to comply with the 
        energy efficiency standards under this subsection if--
                  (A) the structure complies with the applicable 
                provisions of the American Society of Heating, 
                Refrigerating, and Air-Conditioning Engineers Standard 
                90.1-2007, as such standard or successor standard is in 
                effect for purposes of this section pursuant subsection 
                (c);
                  (B) the structure complies with the applicable 
                provisions of the 2009 International Energy 
                Conservation Code, or the requirements of a standard 
                that provides equal or greater energy savings, as such 
                standard or successor standard is in effect for 
                purposes of this section pursuant subsection (c);
                  (C) in the case only of an existing structure, where 
                determined cost effective, the structure has undergone 
                rehabilitation or improvements, completed after the 
                date of the enactment of this Act, and the energy 
                consumption for the structure has been reduced by at 
                least 20 percent from the previous level of 
                consumption, as determined in accordance with energy 
                audits performed both before and after any 
                rehabilitation or improvements undertaken to reduce 
                such consumption; or
                  (D) the structure complies with the applicable 
                provisions of such other energy efficiency 
                requirements, standards, criteria, or ratings systems 
                as the Secretary may adopt and apply by regulation, as 
                may be necessary, for purposes of this section for 
                specific types of residential single-family or 
                multifamily structures or otherwise, except that the 
                Secretary shall make a determination regarding whether 
                to adopt and apply any such requirements, standards, 
                criteria, or rating system for purposes of this section 
                not later than the expiration of the 180-day period 
                beginning upon the date of receipt of any written 
                request, made in such form as the Secretary shall 
                provide, for such adoption and application.
        In addition to compliance with any of subparagraphs (A) through 
        (D), the Secretary shall by regulation require, for any newly 
        constructed residential single-family or multifamily structure 
        to be considered to comply with the energy efficiency standards 
        under this subsection, that the structure have appropriate 
        electrical outlets with the facility and capacity to recharge a 
        standard electric passenger vehicle, including an electric 
        hybrid vehicle, where such vehicle would normally be parked.
          (2) Nonresidential structures.--For purposes of this section, 
        the Secretary shall identify and adopt by regulation, as may be 
        necessary, energy efficiency requirements, standards, criteria, 
        or rating systems applicable to nonresidential structures that 
        are constructed or rehabilitated with HUD assistance. A 
        nonresidential structure shall be considered to comply with the 
        energy efficiency standards under this subsection if the 
        structure complies with the applicable provisions of any such 
        energy efficiency requirements, standards, criteria, or rating 
        systems identified and adopted by the Secretary pursuant to 
        this paragraph, as such standards are in effect for purposes of 
        this section pursuant to subsection (c).
          (3) Effect.--Nothing in this subsection may be construed to 
        require any structure to comply with any standard established 
        or adopted pursuant to this subsection, or identified in this 
        subsection, or to provide any benefit or credit under any 
        Federal program for any structure that complies with any such 
        standard, except to the extent that--
                  (A) any provision of law other than this subsection 
                provides a benefit or credit under a Federal program 
                for compliance with a standard established or adopted 
                pursuant to this subsection, or identified in this 
                subsection; or
                  (B) the Secretary specifically provides pursuant to 
                subsection (c) for the applicability of such standard.
  (b) Enhanced Energy Efficiency Standards for Purposes of Providing 
Additional Credit Under Certain Federally Assisted Housing Programs.--
          (1) Purpose and effect.--
                  (A) Purpose.--The purpose of this subsection is to 
                identify energy efficiency and conservation standards 
                and green building standards that--
                          (i) provide for greater energy efficiency and 
                        conservation in structures than is required for 
                        compliance with the energy efficiency standards 
                        under subsection (a) and then in effect;
                          (ii) provide for green and sustainable 
                        building standards not required by such 
                        standards; and
                          (iii) can be used in connection with Federal 
                        housing, housing finance, and development 
                        programs to provide incentives for greater 
                        energy efficiency and conservation and for 
                        green and sustainable building methods, 
                        elements, practices, and materials.
                  (B) Effect.--Nothing in this subsection may be 
                construed to require any structure to comply with any 
                standard established pursuant to this subsection or to 
                provide any benefit or credit under any Federal program 
                for any structure, except to the extent that any 
                provision of law other than this subsection provides a 
                benefit or credit under a Federal program for 
                compliance with a standard established pursuant to this 
                subsection.
          (2) Compliance.--A residential or nonresidential structure 
        shall be considered to comply with the enhanced energy 
        efficiency and conservation standards or the green building 
        standards under this subsection, to the extent that such 
        structure complies with the applicable provisions of the 
        standards under paragraph (3) or (4), respectively (as such 
        standards are in effect for purposes of this section, pursuant 
        to paragraph (7)), in a manner that is not required for 
        compliance with the energy efficiency standards under 
        subsection (a) then in effect and subject to the Secretary's 
        determination of which standards are applicable to which 
        structures.
          (3) Energy efficiency and conservation standards.--The energy 
        efficiency and conservation standards under this paragraph are 
        as follows:
                  (A) Residential structures.--With respect to 
                residential structures:
                          (i) New construction.--For new construction, 
                        the Energy Star standards established by the 
                        Environmental Protection Agency, as such 
                        standards are in effect for purposes of this 
                        subsection pursuant to paragraph (7);
                          (ii) Existing structures.--For existing 
                        structures, a reduction in energy consumption 
                        from the previous level of consumption for the 
                        structure, as determined in accordance with 
                        energy audits performed both before and after 
                        any rehabilitation or improvements undertaken 
                        to reduce such consumption, that exceeds the 
                        reduction necessary for compliance with the 
                        energy efficiency standards under subsection 
                        (a) then in effect and applicable to existing 
                        structures.
                  (B) Nonresidential structures.--With respect to 
                nonresidential structures, such energy efficiency and 
                conservation requirements, standards, criteria, or 
                rating systems for nonresidential structures as the 
                Secretary shall identify and adopt by regulation, as 
                may be necessary, for purposes of this paragraph.
          (4) Green building standards.--The green building standards 
        under this paragraph are as follows:
                  (A) The national Green Communities criteria for 
                residential construction that provides criteria for the 
                design, development, and operation of affordable 
                housing, as such criteria or successor criteria is in 
                effect for purposes of this section pursuant to 
                paragraph (7).
                  (B) The LEED for Neighborhood Development rating 
                system for the LEED for New Construction rating system, 
                the LEED for Homes rating system, the LEED for Core and 
                Shell rating system, as applicable, as such systems or 
                successor systems are in effect for purposes of this 
                section pursuant to paragraph (7).
                  (C) The Green Globes assessment and rating system of 
                the Green Buildings Initiative.
                  (D) For manufactured housing, Energy Star rating with 
                respect to fixtures, appliances, and equipment in such 
                housing, as such standard or successor standard is in 
                effect for purposes of this section pursuant to 
                paragraph (7).
                  (E) The 2008 National Green Building Standard (ICC 
                700).
                  (F) Any other requirements, standards, criteria, or 
                rating systems for green building or sustainability as 
                the Secretary may identify and adopt by regulation, as 
                may be necessary for purposes of this paragraph, except 
                that the Secretary shall make a determination regarding 
                whether to adopt and apply any such requirements, 
                standards, criteria, or rating system for purposes of 
                this section not later than the expiration of the 180-
                day period beginning upon date of receipt of any 
                written request, made in such form as the Secretary 
                shall provide, for such adoption and application.
          (5) Green building.--For purposes of this subsection, the 
        term ``green building'' means a building that meets the green 
        building standards under paragraph (4).
          (6) Energy audits.--The Secretary shall establish standards 
        and requirements for energy audits for purposes of paragraph 
        (3)(A)(ii) and, in establishing such standards, may consult 
        with any advisory committees established pursuant to section 
        5(c)(2) of this Act.
          (7) Applicability and updating of standards.--
                  (A) Applicability.--Except as provided in 
                subparagraph (B), the requirements, standards, 
                criteria, and rating systems referred to in this 
                subsection that are in effect for purposes of this 
                subsection are such requirements, standards, criteria, 
                and systems are as in existence upon the date of the 
                enactment of this Act.
                  (B) Updating.--For purposes of this section, the 
                Secretary may adopt and apply by regulation, as may be 
                necessary, future amendments and supplements to, and 
                editions of, the requirements, standards, criteria, and 
                rating systems referred to in this subsection.
  (c) Authority of Secretary to Apply Standards to Federally Assisted 
Housing and Programs.--
          (1) HUD housing and programs.--The Secretary of Housing and 
        Urban Development may, by regulation, provide for the 
        applicability of the energy efficiency standards under 
        subsection (a), the enhanced energy efficiency and conservation 
        standards and green building standards under subsection (b), 
        or, in the case of deconstruction, any applicable provisions of 
        and points provided under the LEED for New Construction and 
        Major Renovation rating system, or any combination thereof, 
        with respect to any covered federally assisted housing 
        described in paragraph (3)(A) or any HUD assistance.
          (2) Rural housing.--The Secretary of Agriculture may, by 
        regulation, provide for the applicability of the energy 
        efficiency standards under subsection (a), the enhanced energy 
        efficiency and conservation standards and green building 
        standards under subsection (b), or, in the case of 
        deconstruction, any applicable provisions of and points 
        provided under the LEED for New Construction and Major 
        Renovation rating system, or any combination thereof, with 
        respect to any covered federally assisted housing described in 
        paragraph (3)(B) or any assistance provided with respect to 
        rural housing by the Rural Housing Service of the Department of 
        Agriculture.
          (3) Covered federally assisted housing.--For purposes of this 
        subsection, the term ``covered federally assisted housing'' 
        means--
                  (A) any residential or nonresidential structure for 
                which any HUD assistance is provided; and
                  (B) any new construction of single-family or 
                multifamily housing (other than manufactured homes) 
                subject to mortgages insured, guaranteed, or made by 
                the Secretary of Agriculture under title V of the 
                Housing Act of 1949 (42 U.S.C. 1471 et seq.).
  (d) Deconstruction.--The Secretary of Housing and Urban Development 
and the Secretary of Agriculture, as applicable, shall require that any 
deconstruction activity conducted under or pursuant to any provision of 
this Act or any amendment made by this Act complies with such 
deconstruction standards as such Secretaries shall establish for 
purposes of this section, taking into consideration the applicable 
provisions of and points provided under the LEED for New Construction 
and Major Renovation rating system. Such standards may be updated and 
revised from time to time, by regulation.

SEC. 5. ENERGY EFFICIENCY AND CONSERVATION DEMONSTRATION PROGRAM FOR 
                    MULTIFAMILY HOUSING PROJECTS ASSISTED WITH PROJECT-
                    BASED RENTAL ASSISTANCE.

  (a) Authority.--For multifamily housing projects for which project-
based rental assistance is provided under a covered multifamily 
assistance program, the Secretary shall, subject to the availability of 
amounts provided in advance in appropriation Acts, carry out a program 
to demonstrate the effectiveness of funding a portion of the costs of 
meeting the enhanced energy efficiency standards under section 4(b). At 
the discretion of the Secretary, the demonstration program may include 
incentives for housing that is assisted with Indian housing block 
grants provided pursuant to the Native American Housing Assistance and 
Self-Determination Act of 1996, but only to the extent that such 
inclusion does not violate such Act, its regulations, and the goal of 
such Act of tribal self-determination.
  (b) Goals.--The demonstration program under this section shall be 
carried out in a manner that--
          (1) protects the financial interests of the Federal 
        Government;
          (2) reduces the proportion of funds provided by the Federal 
        Government and by owners and residents of multifamily housing 
        projects that are used for costs of utilities for the projects;
          (3) encourages energy efficiency and conservation by owners 
        and residents of multifamily housing projects and installation 
        of renewable energy improvements, such as improvements 
        providing for use of solar, wind, geothermal, or biomass energy 
        sources;
          (4) creates incentives for project owners to carry out such 
        energy efficiency renovations and improvements by allowing a 
        portion of the savings in operating costs resulting from such 
        renovations and improvements to be retained by the project 
        owner, notwithstanding otherwise applicable limitations on 
        dividends;
          (5) promotes the installation, in existing residential 
        buildings, of energy-efficient and cost-effective improvements 
        and renewable energy improvements, such as improvements 
        providing for use of solar, wind, geothermal, or biomass energy 
        sources;
          (6) tests the efficacy of a variety of energy efficiency 
        measures for multifamily housing projects of various sizes and 
        in various geographic locations;
          (7) tests methods for addressing the various, and often 
        competing, incentives that impede owners and residents of 
        multifamily housing projects from working together to achieve 
        energy efficiency or conservation; and
          (8) creates a database of energy efficiency and conservation, 
        and renewable energy, techniques, energy-savings management 
        practices, and energy efficiency and conservation financing 
        vehicles.
  (c) Approaches.--In carrying out the demonstration program under this 
section, the Secretary may--
          (1) enter into agreements with the Building America Program 
        of the Department of Energy and other consensus committees 
        under which such programs, partnerships, or committees assume 
        some or all of the functions, obligations, and benefits of the 
        Secretary with respect to energy savings;
          (2) establish advisory committees to advise the Secretary and 
        any such third-party partners on technological and other 
        developments in the area of energy efficiency and the creation 
        of an energy efficiency and conservation credit facility and 
        other financing opportunities, which committees shall include 
        representatives of homebuilders, realtors, multifamily housing 
        development and management areas, architects, nonprofit housing 
        organizations, environmental protection organizations, 
        renewable energy organizations, and advocacy organizations for 
        the elderly and persons with disabilities; any advisory 
        committees established pursuant to this paragraph shall not be 
        subject to the Federal Advisory Committee Act (5 U.S.C. App.);
          (3) approve, for a period not to exceed 10 years, additional 
        adjustments in the maximum monthly rents or additional project 
        rental assistance, or additional Indian housing block grant 
        funds under the Native American Housing Assistance and Self-
        Determination Act of 1996, as applicable, for dwelling units in 
        multifamily housing projects that are provided project-based 
        rental assistance under a covered multifamily assistance 
        program, in such amounts as may be necessary to amortize all or 
        a portion of the cost of energy efficiency and conservation 
        measures for such projects;
          (4) develop a competitive process for the award of such 
        additional assistance for multifamily housing projects seeking 
        to implement energy efficiency, renewable energy sources, or 
        conservation measures; such competitive process shall not be 
        limited to assess the first costs, but shall assess the degree 
        to which applicants will meet each of the goals of the 
        demonstration program under subsection (b); and
          (5) waive or modify any existing statutory or regulatory 
        provision that the Secretary administers that would otherwise 
        impair the implementation or effectiveness of the demonstration 
        program under this section, including provisions relating to 
        methods for rent adjustments, comparability standards, maximum 
        rent schedules, and utility allowances; notwithstanding the 
        preceding provisions of this paragraph, the Secretary may not 
        waive any statutory requirement relating to fair housing, 
        nondiscrimination, labor standards, or the environment, except 
        pursuant to existing authority to waive nonstatutory 
        environmental and other applicable requirements.
  (d) Requirement.--During the 5-year period beginning on the date of 
the enactment of this Act, the Secretary shall carry out demonstration 
programs under this section with respect to not fewer than 50,000 
dwelling units.
  (e) Selection.--
          (1) Scope.--In order to provide a broad and representative 
        profile for use in designing a program which can become 
        operational and effective nationwide, the Secretary shall carry 
        out the demonstration program under this section with respect 
        to dwelling units located in a wide variety of geographic areas 
        and project types assisted by the various covered multifamily 
        assistance programs and using a variety of energy efficiency 
        and conservation and funding techniques to reflect differences 
        in climate, types of dwelling units and technical and 
        scientific methodologies, and financing options. The Secretary 
        shall ensure that the geographic areas included in the 
        demonstration program include dwelling units on Indian lands 
        (as such term is defined in section 2601 of the Energy Policy 
        Act of 1992 (25 U.S.C. 3501), to the extent that dwelling units 
        on Indian land have the type of residential structures that are 
        the focus of the demonstration program.
          (2) Priority.--The Secretary shall provide priority for 
        selection for participation in the program under this section 
        based on the extent to which, as a result of assistance 
        provided, the project will comply with the energy efficiency 
        standards under subsection (a), (b), or (c) of section 4 of 
        this Act.
  (f) Use of Existing Partnerships.--To the extent feasible, the 
Secretary shall--
          (1) utilize the Partnership for Advancing Technology in 
        Housing of the Department of Housing and Urban Development to 
        assist in carrying out the requirements of this section and to 
        provide education and outreach regarding the demonstration 
        program authorized under this section; and
          (2) consult with the Secretary of Energy, the Administrator 
        of the Environmental Protection Agency, and the Secretary of 
        the Army regarding utilizing the Building America Program of 
        the Department of Energy, the Energy Star Program, and the Army 
        Corps of Engineers, respectively, to determine the manner in 
        which they might assist in carrying out the goals of this 
        section and providing education and outreach regarding the 
        demonstration program authorized under this section.
  (g) Limitation.--No amounts made available under the American 
Recovery and Reinvestment Act of 2009 (Public Law 111-5) may be used to 
carry out the demonstration program under this section.
  (h) Reports.--
          (1) Annual.--Within 2 years after the date of the enactment 
        of this Act, and for each year thereafter during the term of 
        the demonstration program, the Secretary shall submit a report 
        to the Congress annually that describes and assesses the 
        demonstration program under this section.
          (2) Final.--Not later than 6 months after the expiration of 
        the 4-year period described in subsection (d), the Secretary 
        shall submit a final report to the Congress assessing the 
        demonstration program, which--
                  (A) shall assess the potential for expanding the 
                demonstration program on a nationwide basis; and
                  (B) shall include descriptions of--
                          (i) the size of each multifamily housing 
                        project for which assistance was provided under 
                        the program;
                          (ii) the geographic location of each project 
                        assisted, by State and region;
                          (iii) the criteria used to select the 
                        projects for which assistance is provided under 
                        the program;
                          (iv) the energy efficiency and conservation 
                        measures and financing sources used for each 
                        project that is assisted under the program;
                          (v) the difference, before and during 
                        participation in the demonstration program, in 
                        the amount of the monthly assistance payments 
                        under the covered multifamily assistance 
                        program for each project assisted under the 
                        program;
                          (vi) the average length of the term of the 
                        such assistance provided under the program for 
                        a project;
                          (vii) the aggregate amount of savings 
                        generated by the demonstration program and the 
                        amount of savings expected to be generated by 
                        the program over time on a per-unit and 
                        aggregate program basis;
                          (viii) the functions performed in connection 
                        with the implementation of the demonstration 
                        program that were transferred or contracted out 
                        to any third parties;
                          (ix) an evaluation of the overall successes 
                        and failures of the demonstration program; and
                          (x) recommendations for any actions to be 
                        taken as a result of the such successes and 
                        failures.
          (3) Contents.--Each annual report pursuant to paragraph (1) 
        and the final report pursuant to paragraph (2) shall include--
                  (A) a description of the status of each multifamily 
                housing project selected for participation in the 
                demonstration program under this section; and
                  (B) findings from the program and recommendations for 
                any legislative actions.
  (i) Covered Multifamily Assistance Program.--For purposes of this 
section, the term ``covered multifamily assistance program'' means--
          (1) the program under section 8 of the United States Housing 
        Act of 1937 (42 U.S.C. 1437f) for project-based rental 
        assistance;
          (2) the program under section 202 of the Housing Act of 1959 
        (12 U.S.C. 1701q) for assistance for supportive housing for the 
        elderly;
          (3) the program under section 811 of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 8013) for supportive 
        housing for persons with disabilities;
          (4) the program under section 236 of the National Housing Act 
        (12 U.S.C. 1715z-1 for assistance for rental housing projects;
          (5) the program for mortgage insurance under section 
        221(d)(3) of the National Housing Act (12 U.S.C. 1715l(d)(3)) 
        for rental housing projects;
          (6) the program under section 515 of the Housing Act of 1949 
        (42 U.S.C. 1485) for rural rental housing; and
          (7) the program for assistance under the Native American 
        Housing Assistance and Self-Determination Act of 1996 (25 
        U.S.C. 4111).
  (j) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section, including providing rent 
adjustments, additional project rental assistance, and incentives, 
$50,000,000 for each fiscal year in which the demonstration program 
under this section is carried out.
  (k) Regulations.--Not later than the expiration of the 180-day period 
beginning on the date of the enactment of this Act, the Secretary shall 
issue any regulations necessary to carry out this section.

SEC. 6. CONSIDERATION OF ENERGY EFFICIENCY UNDER FHA MORTGAGE INSURANCE 
                    PROGRAMS AND NATIVE AMERICAN AND NATIVE HAWAIIAN 
                    LOAN GUARANTEE PROGRAMS.

  (a) FHA Mortgage Insurance.--
          (1) Requirement.--Title V of the National Housing Act is 
        amended by adding after section 542 (12 U.S.C. 1735f-20) the 
        following new section:

``SEC. 543. CONSIDERATION OF ENERGY EFFICIENCY.

  ``(a) Underwriting Standards.--The Secretary shall establish a method 
to consider, in its underwriting standards for mortgages on single-
family housing meeting the energy efficiency standards under section 
4(a) of the Green Resources for Energy Efficient Neighborhoods Act of 
2010 that are insured under this Act, the impact that savings on 
utility costs has on the income of the mortgagor.
  ``(b) Goal.--It is the sense of the Congress that, in carrying out 
this Act, the Secretary should endeavor to insure mortgages on single-
family housing meeting the energy efficiency standards under section 
4(a) of the Green Resources for Energy Efficient Neighborhoods Act of 
2010 such that at least 50,000 such mortgages are insured during the 
period beginning upon the date of the enactment of such Act and ending 
on December 31, 2012.''.
          (2) Reporting on defaults.--Section 540(b) of the National 
        Housing Act (12 U.S.C. 1735f-18(b)) is amended by adding at the 
        end the following new paragraph:
          ``(3) With respect to each collection period that commences 
        after December 31, 2011, the total number of mortgages on 
        single-family housing meeting the energy efficiency standards 
        under section 4(a) of the Green Resources for Energy Efficient 
        Neighborhoods Act of 2010 that are insured by the Secretary 
        during the applicable collection period, the number of defaults 
        and foreclosures occurring on such mortgages during such 
        period, the percentage of the total of such mortgages insured 
        during such period on which defaults and foreclosure occurred, 
        and the rate for such period of defaults and foreclosures on 
        such mortgages compared to the overall rate for such period of 
        defaults and foreclosures on mortgages for single-family 
        housing insured under this Act by the Secretary.''.
  (b) Indian Housing Loan Guarantees.--
          (1) Requirement.--Section 184 of the Housing and Community 
        Development Act of 1992 (12 U.S.C. 1715z-13a) is amended--
                  (A) by redesignating subsection (l) as subsection 
                (m); and
                  (B) by inserting after subsection (k) the following 
                new subsection:
  ``(l) Consideration of Energy Efficiency.--The Secretary shall 
establish a method to consider, in its underwriting standards for loans 
for single-family housing meeting the energy efficiency standards under 
section 4(a) of the Green Resources for Energy Efficient Neighborhoods 
Act of 2010 that are guaranteed under this section, the impact that 
savings on utility costs has on the income of the borrower.''.
          (2) Reporting on defaults.--Section 540(b) of the National 
        Housing Act (12 U.S.C. 1735f-18(b)), as amended by subsection 
        (a)(2) of this section, is further amended by adding at the end 
        the following new paragraph:
          ``(4) With respect to each collection period that commences 
        after December 31, 2011, the total number of loans guaranteed 
        under section 184 of the Housing and Community Development Act 
        of 1992 (12 U.S.C. 1715z-13a) on single-family housing meeting 
        the energy efficiency standards under section 4(a) of the Green 
        Resources for Energy Efficient Neighborhoods Act of 2010 that 
        are guaranteed by the Secretary during the applicable 
        collection period, the number of defaults and foreclosures 
        occurring on such loans during such period, the percentage of 
        the total of such loans guaranteed during such period on which 
        defaults and foreclosure occurred, and the rate for such period 
        of defaults and foreclosures on such loans compared to the 
        overall rate for such period of defaults and foreclosures on 
        loans for single-family housing guaranteed under such section 
        184 by the Secretary.''.
  (c) Native Hawaiian Housing Loan Guarantees.--
          (1) Requirement.--Section 184A of the Housing and Community 
        Development Act of 1992 (12 U.S.C. 1715z-13b) is amended by 
        inserting after subsection (l) the following new subsection:
  ``(m) Energy-efficient Housing Requirement.--The Secretary shall 
establish a method to consider, in its underwriting standards for loans 
for single-family housing meeting the energy efficiency standards under 
section 4(a) of the Green Resources for Energy Efficient Neighborhoods 
Act of 2010 that are guaranteed under this section, the impact that 
savings on utility costs has on the income of the borrower.''.
          (2) Reporting on defaults.--Section 540(b) of the National 
        Housing Act (12 U.S.C. 1735f-18(b)), as amended by the 
        preceding provisions of this section, is further amended by 
        adding at the end the following new paragraph:
          ``(5) With respect to each collection period that commences 
        after December 31, 2011, the total number of loans guaranteed 
        under section 184A of the Housing and Community Development Act 
        of 1992 (12 U.S.C. 1715z-13b) on single-family housing meeting 
        the energy efficiency standards under section 4(a) of the Green 
        Resources for Energy Efficient Neighborhoods Act of 2010 that 
        are guaranteed by the Secretary during the applicable 
        collection period, the number of defaults and foreclosures 
        occurring on such loans during such period, the percentage of 
        the total of such loans guaranteed during such period on which 
        defaults and foreclosure occurred, and the rate for such period 
        of defaults and foreclosures on such loans compared to the 
        overall rate for such period of defaults and foreclosures on 
        loans for single-family housing guaranteed under such section 
        184A by the Secretary.''.

SEC. 7. ENERGY-EFFICIENT MORTGAGES AND LOCATION-EFFICIENT MORTGAGES 
                    EDUCATION AND OUTREACH CAMPAIGN.

  Section 106 of the Energy Policy Act of 1992 (12 U.S.C. 1701z-16) is 
amended by adding at the end the following new subsection:
  ``(g) Education and Outreach Campaign.--
          ``(1) Development of energy- and location-efficient mortgages 
        outreach program.--
                  ``(A) Commission.--The Secretary, in consultation and 
                coordination with the Secretary of Energy, the 
                Secretary of Education, the Secretary of Agriculture, 
                and the Administrator of the Environmental Protection 
                Agency, shall establish a commission to develop and 
                recommend model mortgage products and underwriting 
                guidelines that provide market-based incentives to 
                prospective home buyers, lenders, and sellers to 
                incorporate energy efficiency upgrades and location 
                efficiencies in new mortgage loan transactions.
                  ``(B) Report.--Not later than 24 months after the 
                date of the enactment of this Act, the Secretary shall 
                provide a written report to the Congress on the results 
                of work of the commission established pursuant to 
                subparagraph (A) and that identifies model mortgage 
                products and underwriting guidelines that may encourage 
                energy and location efficiency.
          ``(2) Implementation.--After submission of the report under 
        paragraph (1)(B), the Secretary, in consultation and 
        coordination with the Secretary of Energy, the Secretary of 
        Education, and the Administrator of the Environmental 
        Protection Agency, shall carry out a public awareness, 
        education, and outreach campaign based on the findings of the 
        commission established pursuant to paragraph (1) to inform and 
        educate residential lenders and prospective borrowers regarding 
        the availability, benefits, advantages, and terms of energy-
        efficient mortgages and location-efficient mortgages made 
        available pursuant to this section, energy-efficient and 
        location-efficient mortgages (as such terms are defined in 
        section 2 of the GREEN Act of 2010), and other mortgages, 
        including mortgages for multifamily housing, that have energy 
        improvement features or location efficiency features and to 
        publicize such availability, benefits, advantages, and terms. 
        Such actions may include entering into a contract with an 
        appropriate entity to publicize and market such mortgages 
        through appropriate media.
          ``(3) Renewable energy home product expos.--The Congress 
        hereby encourages the Secretary of Housing and Urban 
        Development to work with appropriate entities to organize and 
        hold renewable energy expositions that provide an opportunity 
        for the public to view and learn about renewable energy 
        products for the home that are currently on the market.
          ``(4) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary to carry out this 
        subsection $5,000,000 for each of fiscal years 2010 through 
        2014.''.

SEC. 8. COLLECTION OF INFORMATION ON ENERGY-EFFICIENT AND LOCATION-
                    EFFICIENT MORTGAGES THROUGH HOME MORTGAGE 
                    DISCLOSURE ACT.

  (a) In General.--Section 304(b) of the Home Mortgage Disclosure Act 
of 1975 (12 U.S.C. 2803(b)) is amended--
          (1) in paragraph (3), by striking ``and'' at the end;
          (2) in paragraph (4), by striking the period at the end and 
        inserting a semicolon; and
          (3) by adding at the end the following new paragraphs:
          ``(5) the number and dollar amount of mortgage loans for 
        single-family housing and for multifamily housing that are 
        energy-efficient mortgages (as such term is defined in section 
        2 of the GREEN Act of 2010); and
          ``(6) the number and dollar amount of mortgage loans for 
        single-family housing and for multifamily housing that are 
        location-efficient mortgages (as such term is defined in 
        section 2 of the GREEN Act of 2010).''.
  (b) Applicability.--The amendment made by subsection (a) shall apply 
with respect to the first calendar year that begins after the 
expiration of the 30-day period beginning on the date of the enactment 
of this Act.

SEC. 9. ENSURING AVAILABILITY OF HOMEOWNERS INSURANCE FOR HOMES NOT 
                    CONNECTED TO ELECTRICITY GRID.

  (a) Congressional Intent.--The Congress intends that--
          (1) consumers shall not be denied homeowners insurance for a 
        dwelling (as such term is defined in subsection (c)) based 
        solely on the fact that the dwelling is not connected to or 
        able to receive electricity service from any wholesale or 
        retail electric power provider;
          (2) States should ensure that consumers are able to obtain 
        homeowners insurance for such dwellings;
          (3) States should support insurers that develop voluntary 
        incentives to provide such insurance; and
          (4) States may not prohibit insurers from offering a 
        homeowners insurance product specifically designed for such 
        dwellings.
  (b) Insuring Homes and Related Property in Indian Areas.--
Notwithstanding any other provision of law, dwellings located in Indian 
areas (as such term is defined in section 4 of the Native American 
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103)) 
and constructed or maintained using assistance, loan guarantees, or 
other authority under the Native American Housing Assistance and Self-
Determination Act of 1996 may be insured by any tribally owned self-
insurance risk pool approved by the Secretary of Housing and Urban 
Development.
  (c) Dwelling.--For purposes of this section, the term ``dwelling'' 
means a residential structure that--
          (1) consists of one to four dwelling units;
          (2) is provided electricity from renewable energy sources; 
        and
          (3) is not connected to any wholesale or retail electrical 
        power grid.

SEC. 10. MORTGAGE INCENTIVES FOR ENERGY-EFFICIENT MULTIFAMILY HOUSING.

  (a) In General.--The Secretary of Housing and Urban Development shall 
establish incentives for increasing the energy efficiency of 
multifamily housing that is subject to a mortgage to be insured under 
title II of the National Housing Act (12 U.S.C. 1707 et seq.) so that 
the housing meets the energy efficiency standards under section 4(a) of 
this Act and incentives to encourage compliance of such housing with 
the energy efficiency and conservation standards, and the green 
building standards, under section 4(b) of this Act, to the extent that 
such incentives are based on the impact that savings on utility costs 
has on the operating costs of the housing, as determined by the 
Secretary.
  (b) Incentives.--Such incentives may include, for any such 
multifamily housing that complies with the energy efficiency standards 
under section 4(a)--
          (1) providing a discount on the chargeable premiums for the 
        mortgage insurance for such housing from the amount otherwise 
        chargeable for such mortgage insurance;
          (2) allowing mortgages to exceed the dollar amount limits 
        otherwise applicable under law to the extent such additional 
        amounts are used to finance improvements or measures designed 
        to meet the standards referred to in subsection (a); and
          (3) reducing the amount that the owner of such multifamily 
        housing meeting the standards referred to in subsection (a) is 
        required to contribute.

SEC. 11. ENERGY-EFFICIENT CERTIFICATIONS FOR MANUFACTURED HOUSING WITH 
                    MORTGAGES.

  Section 526 of the National Housing Act (12 U.S.C. 1735f-4(a)) is 
amended--
          (1) in subsection (a)--
                  (A) by striking ``, other than manufactured homes,'' 
                each place such term appears;
                  (B) by inserting after the period at the end the 
                following: ``The energy performance requirements 
                developed and established by the Secretary under this 
                section for manufactured homes shall require Energy 
                Star rating for wall fixtures, appliances, and 
                equipment in such housing.'';
                  (C) by inserting ``(1)'' after ``(a)''; and
                  (D) by adding at the end the following new 
                paragraphs:
  ``(2) The Secretary shall require, with respect to any mortgage for 
manufactured housing insured under this Act, that any approval or 
certification of the housing for meeting any energy efficiency or 
conservation criteria, standards, or requirements pursuant to this 
title and any approval or certification required pursuant to this title 
with respect to energy-conserving improvements or any renewable energy 
sources, such as wind, solar energy geothermal, or biomass, shall be 
conducted only by an individual certified by a home energy rating 
system provider who has been accredited to conduct such ratings by the 
Home Energy Ratings System Council, the Residential Energy Services 
Network, or such other appropriate national organization, as the 
Secretary may provide, or by licensed professional architect or 
engineer. If any organization makes a request to the Secretary for 
approval to accredit individuals to conduct energy efficiency or 
conservation ratings, the Secretary shall review and approve or 
disapprove such request not later than the expiration of the 6-month 
period beginning upon receipt of such request.
  ``(3) The Secretary shall periodically examine the method used to 
conduct inspections for compliance with the requirements under this 
section, analyze various other approaches for conducting such 
inspections, and review the costs and benefits of the current method 
compared with other methods.''; and
          (2) in subsection (b), by striking ``, other than a 
        manufactured home,''.

SEC. 12. ASSISTED HOUSING ENERGY LOAN PILOT PROGRAM.

  (a) Authority.--Not later than the expiration of the 12-month period 
beginning on the date of the enactment of this Act, the Secretary shall 
develop and implement a pilot program under this section to facilitate 
the financing of cost-effective capital improvements for covered 
assisted housing projects to improve the energy efficiency and 
conservation of such projects.
  (b) Loans.--The pilot program under this section shall involve not 
less than three and not more than five lenders, and shall provide for a 
privately financed loan to be made for a covered assisted housing 
project, which shall--
          (1) finance capital improvements for the project that meet 
        such requirements as the Secretary shall establish, and may 
        involve contracts with third parties to perform such capital 
        improvements, including the design of such improvements by 
        licensed professional architects or engineers;
          (2) have a term to maturity of not more than 20 years, which 
        shall be based upon the duration necessary to realize cost 
        savings sufficient to repay the loan;
          (3) be secured by a mortgage subordinate to the mortgage for 
        the project that is insured under the National Housing Act; and
          (4) provide for a reduction in the remaining principal 
        obligation under the loan based on the actual resulting cost 
        savings realized from the capital improvements financed with 
        the loan.
  (c) Underwriting Standards.--The Secretary shall review underwriting 
requirements for loans made under the pilot program under this section, 
which shall--
          (1) require the cost savings projected to be realized from 
        the capital improvements financed with the loan, during the 
        term of the loan, to exceed the costs of repaying the loan;
          (2) allow the designer or contractor involved in designing 
        capital improvements to be financed with a loan under the 
        program to carry out such capital improvements; and
          (3) include such energy, audit, property, financial, 
        ownership, and approval requirements as the Secretary considers 
        appropriate.
  (d) Treatment of Savings.--The pilot program under this section shall 
provide that the project owner shall receive the full financial benefit 
from any reduction in the cost of utilities resulting from capital 
improvements financed with a loan made under the program.
  (e) Covered Assisted Housing Projects.--For purposes of this section, 
the term ``covered assisted housing project'' means a housing project 
that--
          (1) is financed by a loan or mortgage that is--
                  (A) insured by the Secretary under--
                          (i) subsection (d)(3) of section 221 of the 
                        National Housing Act (12 U.S.C. 1715l), and 
                        bears interest at a rate determined under the 
                        proviso of section 221(d)(5) of such Act; or
                          (ii) subsection (d)(4) of such section 221;
                  (B) insured or assisted under section 236 of the 
                National Housing Act (12 U.S.C. 1715z-1); or
                  (C) is assisted with a capital advance under section 
                202 of the Housing Act of 1959 (12 U.S.C. 1701q) or a 
                loan under such section (as in effect before October 1, 
                1991);
          (2) at the time a loan under this section is made, is 
        provided project-based rental assistance under section 8 of the 
        United States Housing Act of 1937 (42 U.S.C. 1437f) , or 
        project rental assistance under section 202 of the Housing Act 
        of 1959, as applicable, for 50 percent or more of the dwelling 
        units in the project; and
          (3) is not a housing project owned or held by the Secretary, 
        or subject to a mortgage held by the Secretary.

SEC. 13. MAKING IT GREEN.

  (a) Partnerships With Tree-planting Organizations.--The Secretary 
shall establish and provide incentives for developers of housing for 
which any HUD financial assistance, as determined by the Secretary, is 
provided for development, maintenance, operation, or other costs, to 
enter into agreements and partnerships with tree-planting 
organizations, nurseries, and landscapers to certify that trees, 
shrubs, grasses, and other plants are planted in the proper manner, are 
provided adequate maintenance, and survive for at least 3 years after 
planting or are replaced. The financial assistance determined by the 
Secretary as eligible under this section shall take into consideration 
such factors as cost effectiveness and affordability.
  (b) Making It Green Plan.--In the case of any new or substantially 
rehabilitated housing for which HUD financial assistance, as determined 
in accordance with subsection (a), is provided by the Secretary for the 
development, construction, maintenance, rehabilitation, improvement, 
operation, or costs of the housing, including financial assistance 
provided through the Community Development Block Grant program under 
title I of the Housing and Community Development Act of 1974 (42 U.S.C. 
5301 et seq.), the Secretary shall require the development of a plan 
that provides for--
          (1) in the case of new construction and improvements, siting 
        of such housing and improvements in a manner that provides for 
        energy efficiency and conservation to the extent feasible, 
        taking into consideration location and project type;
          (2) minimization of the effects of construction, 
        rehabilitation, or other development on the condition of 
        existing trees;
          (3) selection and installation of indigenous trees, shrubs, 
        grasses, and other plants based upon applicable design 
        guidelines and standards of the International Society for 
        Arboriculture;
          (4) post-planting care and maintenance of the landscaping 
        relating to or affected by the housing in accordance with best 
        management practices; and
          (5) establishment of a goal for minimum greenspace or tree 
        canopy cover for the housing site for which such financial 
        assistance is provided, including guidelines and timetables 
        within which to achieve compliance with such minimum 
        requirements.
  (c) Partnerships.--In carrying out this section, the Secretary is 
encouraged to consult, as appropriate, with national organizations 
dedicated to providing housing assistance and related services to low-
income families, such as the Alliance for Community Trees and its 
affiliates, the American Nursery and Landscape Association, the 
American Society of Landscape Architects, and the National Arbor Day 
Foundation.

SEC. 14. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT PROGRAM.

  Title I of the Housing and Community Development Act of 1974 (42 
U.S.C. 5301 et seq.) is amended by adding at the end the following new 
section:

``SEC. 123. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT PROGRAM.

  ``(a) In General.--To the extent amounts are made available for 
grants under this section, the Secretary shall make grants under this 
section to States, metropolitan cities and urban counties, Indian 
tribes, and insular areas to carry out energy efficiency improvements 
in new and existing single-family and multifamily housing.
  ``(b) Allocations.--
          ``(1) In general.--Of the total amount made available for 
        each fiscal year for grants under this section that remains 
        after reserving amounts pursuant to paragraph (2), the 
        Secretary shall allocate for insular areas, for metropolitan 
        cities and urban counties, and for States, an amount that bears 
        the same ratio to such total amount as the amount allocated for 
        such fiscal year under section 106 for Indian tribes, for 
        insular areas, for metropolitan cities and urban counties, and 
        for States, respectively, bears to the total amount made 
        available for such fiscal year for grants under section 106.
          ``(2) Set aside for indian tribes.--Of the total amount made 
        available for each fiscal year for grants under this section, 
        the Secretary shall allocate not less than 1 percent to Indian 
        tribes.
  ``(c) Grant Amounts.--
          ``(1) Entitlement communities.--From the amounts allocated 
        pursuant to subsection (b) for metropolitan cities and urban 
        counties for each fiscal year, the Secretary shall make a grant 
        for such fiscal year to each metropolitan city and urban county 
        that complies with the requirement under subsection (d), in the 
        amount that bears the same ratio such total amount so allocated 
        as the amount of the grant for such fiscal year under section 
        106 for such metropolitan city or urban county bears to the 
        aggregate amount of all grants for such fiscal year under 
        section 106 for all metropolitan cities and urban counties.
          ``(2) States.--From the amounts allocated pursuant to 
        subsection (b) for States for each fiscal year, the Secretary 
        shall make a grant for such fiscal year to each State that 
        complies with the requirement under subsection (d), in the 
        amount that bears the same ratio such total amount so allocated 
        as the amount of the grant for such fiscal year under section 
        106 for such State bears to the aggregate amount of all grants 
        for such fiscal year under section 106 for all States. Grant 
        amounts received by a State shall be used only for eligible 
        activities under subsection (e) carried out in nonentitlement 
        areas of the State.
          ``(3) Indian tribes.--From the amounts allocated pursuant to 
        subsection (b) for Indian tribes, the Secretary shall make 
        grants to Indian tribes that comply with the requirement under 
        subsection (d) on the basis of a competition conducted pursuant 
        to specific criteria, as the Secretary shall establish by 
        regulation, for the selection of Indian tribes to receive such 
        amount.
          ``(4) Insular areas.--From the amounts allocated pursuant to 
        subsection (b) for insular areas, the Secretary shall make a 
        grant to each insular area that complies with the requirement 
        under subsection (d) on the basis of the ratio of the 
        population of the insular area to the aggregate population of 
        all insular areas. In determining the distribution of amounts 
        to insular areas, the Secretary may also include other 
        statistical criteria as data become available from the Bureau 
        of Census of the Department of Labor, but only if such criteria 
        are set forth by regulation issued after notice and an 
        opportunity for comment.
  ``(d) Statement of Activities.--
          ``(1) Requirement.--Before receipt the receipt in any fiscal 
        year of a grant under subsection (c) by any grantee, the 
        grantee shall have prepared a final statement of housing energy 
        efficiency objectives and projected use of funds as the 
        Secretary shall require and shall have provided the Secretary 
        with such certifications regarding such objectives and use as 
        the Secretary may require. In the case of metropolitan cities, 
        urban counties, units of general local government, and insular 
        areas receiving grants, the statement of projected use of funds 
        shall consist of proposed housing energy efficiency activities. 
        In the case of States receiving grants, the statement of 
        projected use of funds shall consist of the method by which the 
        States will distribute funds to units of general local 
        government.
          ``(2) Public participation.--The Secretary may establish 
        requirements to ensure the public availability of information 
        regarding projected use of grant amounts and public 
        participation in determining such projected use.
  ``(e) Eligible Activities.--
          ``(1) Requirement.--Amounts from a grant under this section 
        may be used only to carry out activities for single-family or 
        multifamily housing that are designed to improve the energy 
        efficiency of the housing so that the housing complies with the 
        energy efficiency standards under section 4(a) of the Green 
        Resources for Energy Efficient Neighborhoods Act of 2010, 
        including such activities to provide energy for such housing 
        from renewable sources, such as wind, waves, solar, biomass, 
        and geothermal sources.
          ``(2) Preference for compliance beyond basic requirements.--
        In selecting activities to be funded with amounts from a grant 
        under this section, a grantee shall give more preference to 
        activities based on the extent to which the activities will 
        result in compliance by the housing with the enhanced energy 
        efficiency and conservation standards, and the green building 
        standards, under section 4(b) of such Act.
  ``(f) Reports.--Each grantee of a grant under this section for a 
fiscal year shall submit to the Secretary, at a time determined by the 
Secretary, a performance and evaluation report concerning the use of 
grant amounts, which shall contain an assessment by the grantee of the 
relationship of such use to the objectives identified in the grantees 
statement under subsection (d).
  ``(g) Applicability of CDBG Provisions.--Sections 109, 110, and 111 
of the Housing and Community Development Act of 1974 (42 U.S.C. 5309, 
5310, 5311) shall apply to assistance received under this section to 
the same extent and in the same manner that such sections apply to 
assistance received under title I of such Act.
  ``(h) Authorization of Appropriations.--There is authorized to be 
appropriated for grants under this section $2,500,000,000 for fiscal 
year 2010 and such sums as may be necessary for each fiscal year 
thereafter.''.

SEC. 15. INCLUDING SUSTAINABLE DEVELOPMENT AND TRANSPORTATION 
                    STRATEGIES IN COMPREHENSIVE HOUSING AFFORDABILITY 
                    STRATEGIES.

  Section 105(b) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12705(b)) is amended--
          (1) by striking ``and'' at the end of paragraph (19);
          (2) by striking the period at the end of paragraph (20) and 
        inserting ``; and'';
          (3) and by inserting after paragraph (20) the following new 
        paragraphs:
          ``(21) describe the jurisdiction's strategies to encourage 
        sustainable development for affordable housing, including 
        single-family and multifamily housing, as measured by--
                  ``(A) greater energy efficiency and use of renewable 
                energy sources, including any strategies regarding 
                compliance with the energy efficiency standards under 
                section 4(a) of the Green Resources for Energy 
                Efficient Neighborhoods Act of 2010 and with the 
                enhanced energy efficiency and conservation standards, 
                and the green building standards, under section 4(b) of 
                such Act;
                  ``(B) increased conservation, recycling, and reuse of 
                resources;
                  ``(C) more effective use of existing infrastructure;
                  ``(D) use of building materials and methods that are 
                healthier for residents of the housing, including use 
                of building materials that are free of added known 
                carcinogens that are classified as Group 1 Known 
                Carcinogens by the International Agency for Research on 
                Cancer; and
                  ``(E) such other criteria as the Secretary 
                determines, in consultation with the Secretary of 
                Energy, the Secretary of Agriculture, and the 
                Administrator of the Environmental Protection Agency, 
                are in accordance with the purposes of this paragraph; 
                and
          ``(22) describe the jurisdiction's efforts to coordinate its 
        housing strategy with its transportation planning strategies to 
        ensure to the extent practicable that residents of affordable 
        housing have access to public transportation.''.

SEC. 16. GRANT PROGRAM TO INCREASE SUSTAINABLE LOW-INCOME COMMUNITY 
                    DEVELOPMENT CAPACITY.

  (a) In General.--The Secretary may make grants to nonprofit 
organizations to use for any of the following purposes:
          (1) Training, educating, supporting, or advising an eligible 
        community development organization or qualified youth service 
        and conservation corps in improving energy efficiency, resource 
        conservation and reuse, design strategies to maximize energy 
        efficiency, installing or constructing renewable energy 
        improvements (such as wind, wave, solar, biomass, and 
        geothermal energy sources), and effective use of existing 
        infrastructure in affordable housing and economic development 
        activities in low-income communities, taking into consideration 
        energy efficiency standards under section 4(a) of this Act and 
        with the enhanced energy efficiency and conservation standards, 
        and the green building standards, under section 4(b) of this 
        Act.
          (2) Providing loans, grants, or predevelopment assistance to 
        eligible community development organizations or qualified youth 
        service and conservation corps to carry out energy efficiency 
        improvements that comply with the energy efficiency standards 
        under section 4(a) of this Act, resource conservation and 
        reuse, and effective use of existing infrastructure in 
        affordable housing and economic development activities in low-
        income communities. In providing assistance under this 
        paragraph, the Secretary shall give more preference to 
        activities based on the extent to which the activities will 
        result in compliance with the enhanced energy efficiency and 
        conservation standards, and the green building standards, under 
        section 4(b) of this Act.
          (3) Such other purposes as the Secretary determines are in 
        accordance with the purposes of this subsection.
  (b) Application Requirement.--To be eligible for a grant under this 
section, a nonprofit organization shall prepare and submit to the 
Secretary an application at such time, in such manner, and containing 
such information as the Secretary may require.
  (c) Award of Contracts.--Contracts for architectural or engineering 
services funded with amounts from grants made under this section shall 
be awarded in accordance with chapter 11 of title 40, United States 
Code (relating to selection of architects and engineers).
  (d) Matching Requirement.--A grant made under this section may not 
exceed the amount that the nonprofit organization receiving the grant 
certifies, to the Secretary, will be provided (in cash or in-kind) from 
nongovernmental sources to carry out the purposes for which the grant 
is made.
  (e) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) The term ``nonprofit organization'' has the meaning given 
        such term in section 104 of the Cranston-Gonzalez National 
        Affordable Housing Act (42 U.S.C. 12704).
          (2) The term ``eligible community development organization'' 
        means--
                  (A) a unit of general local government (as defined in 
                section 104 of the Cranston-Gonzalez National 
                Affordable Housing Act (42 U.S.C. 12704));
                  (B) a community housing development organization (as 
                defined in section 104 of the Cranston-Gonzalez 
                National Affordable Housing Act (42 U.S.C. 12704));
                  (C) an Indian tribe or tribally designated housing 
                entity (as such terms are defined in section 4 of the 
                Native American Housing Assistance and Self-
                Determination Act of 1996 (25 U.S.C. 4103)); or
                  (D) a public housing agency, as such term is defined 
                in section 3(b) of the United States Housing Act of 
                1937 (42 U.S.C. 1437(b)).
          (3) The term ``low-income community'' means a census tract in 
        which 50 percent or more of the households have an income which 
        is less than 80 percent of the greater of--
                  (A) the median gross income for such year for the 
                area in which such census tract is located; or
                  (B) the median gross income for such year for the 
                State in which such census tract is located.
  (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section $10,000,000 for 
each of fiscal years 2010 through 2014.

SEC. 17. HOPE VI GREEN DEVELOPMENTS REQUIREMENT.

  (a) Mandatory Component.--Section 24(e) of the United States Housing 
Act of 1937 (42 U.S.C. 1437v(e)) is amended by adding at the end the 
following new paragraph:
          ``(4) Green developments requirement.--
                  ``(A) Requirement.--The Secretary may not make a 
                grant under this section to an applicant unless the 
                proposed revitalization plan of the applicant to be 
                carried out with such grant amounts meets the following 
                requirements:
                          ``(i) Green communities criteria.--All 
                        residential construction under the proposed 
                        plan complies with the national Green 
                        Communities criteria for residential 
                        construction and rehabilitation that provides 
                        criteria for the design, development, and 
                        operation of affordable housing, as such 
                        criteria are in effect for purposes of this 
                        paragraph pursuant to subparagraph (D) at the 
                        date of the application for the grant, or any 
                        substantially equivalent standard or standards 
                        as determined by the Secretary, as follows:
                                  ``(I) The proposed plan shall comply 
                                with all items of the national Green 
                                Communities criteria for residential 
                                construction and rehabilitation that 
                                are identified as mandatory.
                                  ``(II) The proposed plan shall comply 
                                with such other nonmandatory items of 
                                such national Green Communities 
                                criteria so as to result in a 
                                cumulative number of points 
                                attributable to such nonmandatory items 
                                under such criteria of not less than--
                                          ``(aa) 25 points, in the case 
                                        of any proposed plan (or 
                                        portion thereof) consisting of 
                                        new construction; and
                                          ``(bb) 20 points, in the case 
                                        of any proposed plan (or 
                                        portion thereof) consisting of 
                                        rehabilitation.
                          ``(ii) Green buildings certification 
                        system.--All nonresidential construction under 
                        the proposed plan complies with all minimum 
                        required levels of the green building rating 
                        systems and levels identified by the Secretary 
                        pursuant to subparagraph (C), as such systems 
                        and levels are in effect for purposes of this 
                        paragraph pursuant to subparagraph (D) at the 
                        time of the application for the grant.
                  ``(B) Verification.--
                          ``(i) In general.--The Secretary shall 
                        verify, or provide for verification, sufficient 
                        to ensure that each proposed revitalization 
                        plan carried out with amounts from a grant 
                        under this section complies with the 
                        requirements under subparagraph (A) and that 
                        the revitalization plan is carried out in 
                        accordance with such requirements and plan.
                          ``(ii) Timing.--In providing for such 
                        verification, the Secretary shall establish 
                        procedures to ensure such compliance with 
                        respect to each grantee, and shall report to 
                        the Congress with respect to the compliance of 
                        each grantee, at each of the following times:
                                  ``(I) Not later than 6 months after 
                                execution of the grant agreement under 
                                this section for the grantee.
                                  ``(II) Upon completion of the 
                                revitalization plan of the grantee.
                  ``(C) Identification of green buildings rating 
                systems and levels.--
                          ``(i) In general.--For purposes of this 
                        paragraph, the Secretary shall identify rating 
                        systems and levels for green buildings that the 
                        Secretary determines to be the most likely to 
                        encourage a comprehensive and environmentally 
                        sound approach to ratings and standards for 
                        green buildings. The identification of the 
                        ratings systems and levels shall be based on 
                        the criteria specified in clause (ii), shall 
                        identify the highest levels the Secretary 
                        determines are appropriate above the minimum 
                        levels required under the systems selected. 
                        Within 90 days of the completion of each study 
                        required by clause (iii), the Secretary shall 
                        review and update the rating systems and 
                        levels, or identify alternative systems and 
                        levels for purposes of this paragraph, taking 
                        into account the conclusions of such study.
                          ``(ii) Criteria.--In identifying the green 
                        rating systems and levels, the Secretary shall 
                        take into consideration--
                                  ``(I) the ability and availability of 
                                assessors and auditors to independently 
                                verify the criteria and measurement of 
                                metrics at the scale necessary to 
                                implement this paragraph;
                                  ``(II) the ability of the applicable 
                                ratings system organizations to collect 
                                and reflect public comment;
                                  ``(III) the ability of the standards 
                                to be developed and revised through a 
                                consensus-based process;
                                  ``(IV) An evaluation of the 
                                robustness of the criteria for a high-
                                performance green building, which shall 
                                give credit for promoting--
                                          ``(aa) efficient and 
                                        sustainable use of water, 
                                        energy, and other natural 
                                        resources;
                                          ``(bb) use of renewable 
                                        energy sources;
                                          ``(cc) improved indoor and 
                                        outdoor environmental quality 
                                        through enhanced indoor and 
                                        outdoor air quality, thermal 
                                        comfort, acoustics, outdoor 
                                        noise pollution, day lighting, 
                                        pollutant source control, 
                                        sustainable landscaping, and 
                                        use of building system controls 
                                        and low- or no-emission 
                                        materials, including preference 
                                        for materials with no added 
                                        carcinogens that are classified 
                                        as Group 1 Known Carcinogens by 
                                        the International Agency for 
                                        Research on Cancer; and
                                          ``(dd) such other criteria as 
                                        the Secretary determines to be 
                                        appropriate; and
                                  ``(V) national recognition within the 
                                building industry.
                          ``(iii) 5-year evaluation.--At least once 
                        every 5 years, the Secretary shall conduct a 
                        study to evaluate and compare available third-
                        party green building rating systems and levels, 
                        taking into account the criteria listed in 
                        clause (ii).
                  ``(D) Applicability and updating of standards.--
                          ``(i) Applicability.--Except as provided in 
                        clause (ii) of this subparagraph, the national 
                        Green Communities criteria and green building 
                        rating systems and levels referred to in 
                        clauses (i) and (ii) of subparagraph (A) that 
                        are in effect for purposes of this paragraph 
                        are such criteria and systems, and levels as in 
                        existence upon the date of the enactment of the 
                        Green Resources for Energy Efficient 
                        Neighborhoods Act of 2010.
                          ``(ii) Updating.--The Secretary may, by 
                        regulation, adopt and apply, for purposes of 
                        this paragraph, future amendments and 
                        supplements to, and editions of, the national 
                        Green Communities criteria, any standard or 
                        standards that the Secretary has determined to 
                        be substantially equivalent to such criteria, 
                        and the green building ratings systems and 
                        levels identified by the Secretary pursuant to 
                        subparagraph (C).''.
  (b) Selection Criteria; Graded Component.--Section 24(e)(2) of the 
United States Housing Act of 1937 (42 U.S.C. 1437v(e)(2)) is amended--
          (1) in subparagraph (K), by striking ``and'' at the end;
          (2) by redesignating subparagraph (L) as subparagraph (M); 
        and
          (3) by inserting after subparagraph (K) the following new 
        subparagraph:
                  ``(L) the extent to which the proposed revitalization 
                plan--
                          ``(i) in the case of residential 
                        construction, complies with the nonmandatory 
                        items of the national Green Communities 
                        criteria identified in paragraph (4)(A)(i), or 
                        any substantially equivalent standard or 
                        standards as determined by the Secretary, but 
                        only to the extent such compliance exceeds the 
                        compliance necessary to accumulate the number 
                        of points required under such paragraph; and
                          ``(ii) in the case of nonresidential 
                        construction, complies with the components of 
                        the green building rating systems and levels 
                        identified by the Secretary pursuant to 
                        paragraph (4)(C), but only to the extent such 
                        compliance exceeds the minimum level required 
                        under such systems and levels; and''.

SEC. 18. CONSIDERATION OF ENERGY EFFICIENCY IMPROVEMENTS IN APPRAISALS.

  (a) Appraisals in Connection With Federally Related Transactions.--
          (1) Requirement.--Section 1110 of the Financial Institutions 
        Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 3339) 
        is amended--
                  (A) in paragraph (1), by striking ``and'' at the end;
                  (B) by redesignating paragraph (2) as paragraph (3); 
                and
                  (C) by inserting after paragraph (1) the following 
                new paragraph:
          ``(2) that such appraisals be performed in accordance with 
        appraisal standards that require, in determining the value of a 
        property, consideration of any renewable energy sources for, or 
        energy efficiency or energy-conserving improvements or features 
        of, the property;''.
          (2) Revision of appraisal standards.--Each Federal financial 
        institutions regulatory agency shall, in accordance with 
        sections 1107 and 1111 (12 U.S.C. 3336, 3340) and in 
        coordination with Federal officials, including the Secretary of 
        Energy, the Administrator of the Environmental Protection 
        Agency, and the Administrator of the General Services 
        Administration, revise its standards for the performance of 
        real estate appraisals in connection with federally related 
        transactions under the jurisdiction of the agency to comply 
        with the requirement under the amendments made by paragraph (1) 
        of this subsection.
  (b) Ensuring Consideration of Energy-efficient Features When Reaching 
Conclusions of Market Value.--Section 1110 of the Financial 
Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 
3339), as amended by subsection (a) of this section, is further 
amended--
          (1) in paragraph (3) (as so redesignated by subsection 
        (a)(1)(B) of this section), by striking the period and 
        inserting ``; and''; and
          (2) by inserting after such paragraph (3) the following:
          ``(4) that State-certified and licensed appraisers have 
        timely access, whenever practicable, to information from the 
        lender relevant to an appraisal of the energy and water 
        efficiency or conserving improvements or features of a 
        property, such as labels or ratings of buildings and installed 
        appliances, blueprints, construction costs, incentives 
        regarding energy- and water-efficient components and systems 
        installed in a property, and third-party verifications or 
        representations of energy and water efficiency performance of a 
        property, observing all financial privacy requirements adhered 
        to by certified and licensed appraisers, including section 501 
        of the Gramm-Leach-Bliley Act (15 U.S.C. 6801); unless the 
        property owner consents to the lender, an appraiser shall not 
        have access to the commercial of financial information of the 
        owner that is privileged or confidential.''.
  (c) Transactions Requiring State Certified Appraisers.--Section 1113 
of the Financial Institutions Reform, Recovery, and Enforcement Act of 
1989 (12 U.S.C. 3342) is amended--
          (1) in paragraph (1), by inserting before the semicolon the 
        following: ``or any real property with energy-efficiency or 
        energy-conserving improvements or features''; and
          (2) in paragraph (2) by inserting after ``complexity'' the 
        following: ``(such as identifying and supporting the 
        contribution to market value of energy-efficiency or energy-
        conserving improvements or features)''.

SEC. 19. HOUSING ASSISTANCE COUNCIL.

  The Secretary shall require the Housing Assistance Council--
          (1) to encourage each organization that receives loan 
        assistance from the Council with any amounts made available 
        from the Secretary to provide that any structures and buildings 
        developed or assisted under projects, programs, and activities 
        funded with such amounts complies with the energy efficiency 
        standards under section 4(a) of this Act; and
          (2) to establish incentives to encourage each such 
        organization to provide that any such structures and buildings 
        comply with the energy efficiency and conservation standards, 
        and the green building standards, under section 4(b) of such 
        Act.

SEC. 20. RURAL HOUSING AND ECONOMIC DEVELOPMENT ASSISTANCE.

  The Secretary shall--
          (1) require each tribe, agency, organization, corporation, 
        and other entity that receives any assistance from the Office 
        of Rural Housing and Economic Development of the Department of 
        Housing and Urban Development to provide that any structures 
        and buildings developed or assisted under activities funded 
        with such amounts complies with the energy efficiency standards 
        under section 4(a) of this Act; and
          (2) establish incentives to encourage each such tribe, 
        agency, organization, corporation, and other entity to provide 
        that any such structures and buildings comply with the enhanced 
        energy efficiency and conservation standards, and the green 
        building standards, under section 4(b) of such Act.

SEC. 21. LOANS TO STATES AND INDIAN TRIBES TO CARRY OUT RENEWABLE 
                    ENERGY SOURCES ACTIVITIES.

  (a) Establishment of Fund.--There is established in the Treasury of 
the United States a fund, to be known as the ``Alternative Energy 
Sources State Loan Fund''.
  (b) Expenditures.--
          (1) In general.--Subject to paragraph (2), on request by the 
        Secretary, the Secretary of the Treasury shall transfer from 
        the Fund to the Secretary such amounts as the Secretary 
        determines are necessary to provide loans under subsection 
        (c)(1).
          (2) Administrative expenses.--Of the amounts in the Fund, not 
        more than 5 percent shall be available for each fiscal year to 
        pay the administrative expenses of the Department of Housing 
        and Urban Development to carry out this section.
  (c) Loans to States and Indian Tribes.--
          (1) In general.--The Secretary shall use amounts in the Fund 
        to provide loans to States and Indian tribes to provide 
        incentives to owners of single-family and multifamily housing, 
        commercial properties, and public buildings to provide--
                  (A) renewable energy sources for such structures, 
                such as wind, wave, solar, biomass, or geothermal 
                energy sources, including incentives to companies and 
                businesses to change their source of energy to such 
                renewable energy sources and for changing the sources 
                of energy for public buildings to such renewable energy 
                sources;
                  (B) energy-efficiency and energy-conserving 
                improvements and features for such structures; or
                  (C) infrastructure related to the delivery of 
                electricity and hot water for structures lacking such 
                amenities.
          (2) Eligibility.--To be eligible to receive a loan under this 
        subsection, a State or Indian tribe, directly or through an 
        appropriate State or tribal agency, shall submit to the 
        Secretary an application at such time, in such manner, and 
        containing such information as the Secretary may require.
          (3) Criteria for approval.--The Secretary may approve an 
        application of a State or Indian tribe under paragraph (2) only 
        if the Secretary determines that the State or tribe will use 
        the funds from the loan under this subsection to carry out a 
        program to provide incentives described in paragraph (1) that--
                  (A) requires that any such renewable energy sources, 
                and energy-efficiency and energy-conserving 
                improvements and features, developed pursuant to 
                assistance under the program result in compliance of 
                the structure so improved with the energy efficiency 
                standards under section 4(a) of this Act; and
                  (B) includes such compliance and audit requirements 
                as the Secretary determines are necessary to ensure 
                that the program is operated in a sound and effective 
                manner.
          (4) Preference.--In making loans during each fiscal year, the 
        Secretary shall give preference to States and Indian tribes 
        that have not previously received a loan under this subsection.
          (5) Maximum amount.--The aggregate outstanding principal 
        amount from loans under this subsection to any single State or 
        Indian tribe may not exceed $500,000,000.
          (6) Loan terms.--Each loan under this subsection shall have a 
        term to maturity of not more than 10 years and shall bear 
        interest at annual rate, determined by the Secretary, that 
        shall not exceed interest rate charged by the Federal Reserve 
        Bank of New York to commercial banks and other depository 
        institutions for very short-term loans under the primary credit 
        program, as most recently published in the Federal Reserve 
        Statistical Release on selected interest rates (daily or 
        weekly), and commonly referred to as the H.15 release, 
        preceding the date of a determination for purposes of applying 
        this paragraph.
          (7) Loan repayment.--The Secretary shall require full 
        repayment of each loan made under this section.
  (d) Investment of Amounts.--
          (1) In general.--The Secretary of the Treasury shall invest 
        such amounts in the Fund that are not, in the judgment of the 
        Secretary of the Treasury, required to meet needs for current 
        withdrawals.
          (2) Obligations of united states.--Investments may be made 
        only in interest-bearing obligations of the United States.
  (e) Reports.--
          (1) Reports to secretary.--For each year during the term of a 
        loan made under subsection (c), the State or Indian tribe that 
        received the loan shall submit to the Secretary a report 
        describing the State or tribal alternative energy sources 
        program for which the loan was made and the activities 
        conducted under the program using the loan funds during that 
        year.
          (2) Report to congress.--Not later than September 30 of each 
        year that loans made under subsection (c) are outstanding, the 
        Secretary shall submit a report to the Congress describing the 
        total amount of such loans provided under subsection (c) to 
        each eligible State and Indian tribe during the fiscal year 
        ending on such date, and an evaluation on effectiveness of the 
        Fund.
  (f) Authorization of Appropriations.--There is authorized to be 
appropriated to the Fund $5,000,000,000.
  (g) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Indian tribe.--The term ``Indian tribe'' has the meaning 
        given such term in section 4 of the Native American Housing 
        Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103).
          (2) State.--The term ``State'' means each of the several 
        States, the Commonwealth of Puerto Rico, the District of 
        Columbia, the Commonwealth of the Northern Mariana Islands, 
        Guam, the Virgin Islands, American Samoa, the Trust Territories 
        of the Pacific, or any other possession of the United States.

SEC. 22. GAO REPORTS ON AVAILABILITY OF AFFORDABLE MORTGAGES.

  (a) Study.--The Comptroller General of the United States shall 
periodically, as necessary to comply with subsection (b), examine the 
impact of this Act and the amendments made by this Act on the 
availability of affordable mortgages in various areas throughout the 
United States, including cities having older infrastructure and limited 
space for the development of new housing.
  (b) Reports.--The Comptroller General shall submit reports under this 
subsection to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate that shall include--
          (1) a detailed statement of the most recent findings pursuant 
        to subsection (a); and
          (2) if the Comptroller General finds that this Act or the 
        amendments made by this Act have directly or indirectly 
        resulted in consequences that limit the availability or 
        affordability of mortgages in any area or areas within the 
        United States, including any city having older infrastructure 
        and limited space for the development of new housing, any 
        recommendations for any additional actions at the Federal, 
        State, or local levels that the Comptroller General considers 
        necessary or appropriate to mitigate such effects.
The first report under this subsection shall be submitted not later 
than the expiration of the 3-year period beginning on the date of the 
enactment of this Act and thereafter, the Comptroller General shall 
submit a report pursuant to a joint request for such a report made by 
the Chairman and Ranking Members of the Committee on Financial Services 
of the House of Representatives and of the Committee on Banking, 
Housing, and Urban Affairs of the Senate.

SEC. 23. PUBLIC HOUSING ENERGY COST REPORT.

  (a) Collection of Information by HUD.--The Secretary of Housing and 
Urban Development shall obtain from each public housing agency, by such 
time as may be necessary to comply with the reporting requirement under 
subsection (b), information regarding the energy costs for public 
housing administered or operated by the agency. For each public housing 
agency, such information shall include the monthly energy costs 
associated with each separate building and development of the agency, 
for the most recently completed 12-month period for which such 
information is available, and such other information as the Secretary 
determines is appropriate in determining which public housing buildings 
and developments are most in need of repairs and improvements to reduce 
energy needs and costs and become more energy efficient.
  (b) Report.--Not later than the expiration of the 12-month period 
beginning on the date of the enactment of this Act, the Secretary of 
Housing and Urban Development shall submit a report to the Congress 
setting forth the information collected pursuant to subsection (a).

SEC. 24. INSURANCE COVERAGE FOR LOANS FOR FINANCING OF RENEWABLE ENERGY 
                    SYSTEMS LEASED FOR RESIDENTIAL USE.

  (a) Purposes.--The purposes of this section are--
          (1) to encourage residential use of renewable energy systems 
        by minimizing up-front costs and providing immediate utility 
        cost savings to consumers through leasing of such systems to 
        homeowners;
          (2) to reduce carbon emissions and the use of nonrenewable 
        resources;
          (3) to encourage energy-efficient residential construction 
        and rehabilitation;
          (4) to encourage the use of renewable resources by 
        homeowners;
          (5) to minimize the impact of development on the environment;
          (6) to reduce consumer utility costs; and
          (7) to encourage private investment in the green economy.
  (b) Authority.--The Secretary of Housing and Urban Development may, 
upon application by an authorized renewable energy lender and in 
accordance with such terms and conditions as the Secretary may 
prescribe, consistent with the purposes of this section, make 
commitments to insure, and insure, loans made by such lenders to 
homebuilders, renewable energy installers or manufacturers, public or 
private corporations or partnerships, associations, trusts, or other 
qualified persons or entities, to finance the acquisition of renewable 
energy systems for lease to homeowners for use at their residences.
  (c) Effective Date of Insurance.--Insurance provided pursuant to this 
section for a loan shall become effective only upon the expiration of 
the 5-year period beginning upon the original execution of a renewable 
energy system lease (as such term is defined in subsection (o)) for the 
renewable energy system.
  (d) Limitation on Principal Amount.--
          (1) Limitation.--The principal amount of the loan insured 
        under this section shall not exceed the residual value of the 
        renewable energy system.
          (2) Residual value.--For purposes of this subsection--
                  (A) the residual value of a renewable energy system 
                shall be the amount that is equal to the fair market 
                value of the future revenue stream from the sale of the 
                expected remaining electricity production from the 
                system, pursuant to the easement granted in accordance 
                with subsection (e); and
                  (B) the fair market value of the future revenue 
                stream for each year of the remaining life of the 
                renewable energy system shall be determined based on 
                the net present value of the renewable energy system 
                manufacturer's power output production warranty for the 
                system and the forecast of regional residential 
                electricity prices made by the Energy Information 
                Administration of the Department of Energy.
  (e) Easement for Sale of Remaining Electricity.--The Secretary may 
not insure a loan for financing of renewable energy systems under this 
section unless the borrower under the loan ensures, in accordance with 
such requirements as the Secretary shall establish, consistent with the 
purposes of this section, that the systems financed will be leased only 
to homeowners that grant easements sufficient to provide for the sale 
of remaining electricity production from the system to a wholesale or 
retail electrical power grid.
  (f) Discount or Prepayment.--To encourage utilization of renewable 
energy systems, the Secretary shall ensure that a homebuilder's or 
other investor's discount or prepayment of a homeowner's renewable 
energy system lease shall not adversely affect that homeowner's 
mortgage requirements.
  (g) Eligibility of Lenders.--The Secretary may not insure a loan 
under this section unless the lender making the loan--
          (1)(A) is an institution that qualifies as a green banking 
        center pursuant to section 8(x) of the Federal Deposit 
        Insurance Act (12 U.S.C. 1818(x)) or section 206(x) of the 
        Federal Credit Union Act (12 U.S.C. 1786(x)); or
          (B) meets such other requirements as the Secretary shall 
        establish for participation of renewable energy lenders in the 
        program under this section; and
          (2) meets such qualifications as the Secretary shall 
        establish for all lenders for participation in the program 
        under this section and is approved by the Secretary as meeting 
        such qualifications.
  (h) Certificate of Insurance.--Insurance of a loan under this section 
shall be evidenced by a certificate of insurance coverage issued by the 
Secretary to the lender under the loan. Such certificate shall set 
forth the fair market value of the future revenue stream for each year 
of the remaining life of the renewable energy system as determined in 
accordance with subsection (d).
  (i) Payment of Insurance.--
          (1) In general.--The Secretary shall provide for the filing 
        of claims for insurance under this section and the payment of 
        such claims. A claim may be paid only upon a default under the 
        loan insured under this section and the assignment, transfer, 
        and delivery to the Secretary of all rights and interests 
        arising under the loan and all claims of the lender or the 
        assigns of the lender against the borrower or others arising 
        under the loan transaction.
          (2) Lien.--Upon payment of a claim for insurance of a loan 
        under this section, the Secretary shall be granted a lien on 
        the underlying renewable energy system assets and any 
        associated revenue stream from use of that system, which shall 
        be superior to all other liens on such assets, and the residual 
        value of that system and the revenue stream shall be at least 
        equal to the unpaid balance of the loan amount covered by the 
        certificate of insurance. The Secretary shall be entitled to 
        any revenue generated by the renewable energy system from 
        selling electricity to the grid when an insurance claim has 
        been paid out.
  (j) Assignment and Transferability of Insurance.--The holder of 
insurance provided under this section may assign or transfer the 
insurance in whole or in part, to another lender, subject to such 
requirements as the Secretary may prescribe.
  (k) Premiums and Charges.--
          (1) Insurance fee.--The Secretary shall fix and collect 
        premiums for insurance of loans under this section, that shall 
        be paid by the qualified applicant at the time of issuance of 
        the certificate of insurance to the lender and shall be 
        adequate, in the determination of the Secretary, to cover 
        expenses and probable losses, including any costs (as such term 
        is defined in section 502 of the Federal Credit Reform Act of 
        1990 (2 U.S.C. 661a) of loan insurance under this section. In 
        no event may such premium exceed 3 percent of the principal 
        obligation of the loan being insured.
          (2) Prohibition on other charges.--Except as provided in 
        paragraph (1), the Secretary may not assess any fees, including 
        user fees, insurance premiums, or charges in connection with 
        loan insurance provided under this section.
  (l) Full Faith and Credit.--The certificate of insurance issued by 
the Secretary under this section shall be backed by the full faith and 
credit of the United States of America.
  (m) Regulations.--The Secretary shall issue such regulations as may 
be necessary to carry out this section. The Secretary shall issue final 
or interim final regulations not later than the expiration of the 180-
day period beginning on the date of the enactment of this Act.
  (n) Ineligibility for Purchase by Federal Financing Bank.--
Notwithstanding the provisions of the Federal Financing Bank Act of 
1973 (12 U.S.C. 2281 et seq.) or any other provision of law, no debt 
obligation that is insured or committed to be insured by the Secretary 
under this section shall be subject to the provisions of such Act.
  (o) Definitions.--For purposes of this section, the following 
definitions apply:
          (1) Renewable energy system lease.--The term ``renewable 
        system energy lease'' means an agreement between a qualified 
        investor in a renewable energy system and a homeowner pursuant 
        to which the homeowner grants an easement to the investor to 
        install, maintain, use, and otherwise access the renewable 
        energy system and leases the use of that system from the 
        qualified investor for a specified term.
          (2) Renewable energy system.--The term ``renewable energy 
        system'' means a system that generates energy from naturally 
        replenished energy sources such as sunlight, wind, rain, tides 
        or geothermal heat.
          (3) Renewable energy manufacturer.--The term ``renewable 
        energy manufacturer'' means a manufacturer of renewable energy 
        systems.

SEC. 25. GREEN GUARANTEES.

  (a) Authority To Guarantee ``Green Portion'' of Eligible Mortgages.--
          (1) In general.--The Secretary of Housing and Urban 
        Development may make commitments to guarantee under this 
        section and may guarantee, the repayment of the portions of the 
        principal obligations of eligible mortgages that are used to 
        finance eligible sustainable building elements for the housing 
        that is subject to the mortgage.
          (2) Amount of guarantee.--A guarantee under this section by 
        the Secretary in connection with an eligible mortgage shall not 
        exceed a percentage of the green portion (as such term is 
        defined in subsection (g)) of the mortgage, as shall be 
        established by the Secretary and may be established on a 
        regional basis as the Secretary determines appropriate.
  (b) Eligible Mortgages.--To be considered an eligible mortgage for 
purposes of this section, a mortgage shall comply with all of the 
following requirements:
          (1) Acquisition or construction of housing.--The mortgage 
        shall be made for the acquisition or construction of single- or 
        multifamily housing and repayment of the mortgage shall be 
        secured by an interest in such housing.
          (2) Financing of eligible sustainable building elements 
        through green portion of mortgage.--A portion of the principal 
        obligation of the mortgage, which meets the requirements under 
        subsection (c), shall be used only for financing the provision 
        of eligible sustainable building elements for the housing for 
        which the mortgage was made.
          (3) Maximum mortgage amount.--The principal obligation of the 
        mortgage (including the eligible portion of such mortgage, and 
        such initial service charges, appraisal, inspection, and other 
        fees as the Secretary shall approve) may not exceed the 
        following amounts:
                  (A) Single-family housing.--Such dollar amounts for 
                single-family housing as the Secretary shall establish, 
                which may be established on the basis of the number of 
                dwelling units in the housing, as the Secretary 
                considers appropriate.
                  (B) Multifamily housing.--Such dollar amounts for 
                multifamily housing as the Secretary shall establish, 
                which may be established on the basis of the number of 
                dwelling units in the housing and the number of 
                bedrooms in such dwelling units, as the Secretary 
                considers appropriate.
          (4) Repayment.--The mortgage meets such requirements as the 
        Secretary shall establish to ensure that there is a reasonable 
        prospect of repayment of the principal and interest on the 
        obligation by the mortgagor.
          (5) Mortgage terms.--The mortgage shall meet such 
        requirements with respect to loan-to-value ratio, mortgagor 
        credit scores, debt-to-income ratio, and other underwriting 
        standards, term to maturity, interest rates and amortization, 
        including amortization of the green portion of the mortgage, 
        and other mortgage terms as the Secretary shall establish.
  (c) Limitations on Green Portion of Mortgage.--The requirements under 
this subsection with respect to the green portion of an eligible 
mortgage are as follows:
          (1) Percentage limitation.--Such portion shall not exceed, in 
        the case of single-family or multifamily housing, 10 percent of 
        the total principal obligation of the mortgage.
          (2) Dollar amount limitation.--Such portion shall not 
        exceed--
                  (A) in the case of single-family housing, such 
                maximum dollar amount limitation as the Secretary shall 
                establish, which may be established on the basis of the 
                number of dwelling units in the housing, as the 
                Secretary considers appropriate; and
                  (B) in the case of multifamily housing, such maximum 
                dollar amount limitation as the Secretary shall 
                establish, which limitation may be established on the 
                basis of the number of dwelling units in the housing 
                and the number of bedrooms in such dwelling units, as 
                the Secretary considers appropriate.
          (3) Cost-effectiveness limitation.--Such portion shall not 
        exceed the total present value of the savings (as determined in 
        accordance with subsection (d)) attributable to the 
        incorporation of the eligible sustainable building elements to 
        be financed with the green portion of the mortgage that are to 
        be realized over the useful life of such elements.
  (d) Eligible Sustainable Building Elements.--The Secretary may not 
guarantee any eligible mortgage under this section unless the mortgagor 
has demonstrated, in accordance with such requirements as the Secretary 
shall establish, the amount of savings attributable to incorporation of 
the sustainable building elements to be financed with the green portion 
of the mortgage, as measured by the National Green Building Standard 
for all residential construction developed by the National Association 
of Home Builders and the U.S. Green Building Council, and approved by 
the American National Standards Institute, as updated and in effect at 
the time of such demonstration.
  (e) Guarantee Fee.--
          (1) Assessment and collection.--The Secretary shall assess 
        and collect fees for guarantees under this section in amounts 
        that the Secretary determines are sufficient to cover the costs 
        (as such term is defined in section 502 of the Federal Credit 
        Reform Act of 1990 (2 U.S.C. 661a)) of such guarantees.
          (2) Availability.--Fees collected under this subsection shall 
        be deposited by the Secretary in the Treasury of the United 
        States and shall remain available until expended, subject to 
        such other conditions as are contained in annual appropriations 
        Acts.
  (f) Payment of Guarantee.--
          (1) Default.--
                  (A) Right to payment.--If a mortgagor under a 
                mortgage guaranteed under this section defaults (as 
                defined in regulations issued by the Secretary and 
                specified in the guarantee contract) on the obligation 
                under the mortgage--
                          (i) the holder of the guarantee shall have 
                        the right to demand payment of the unpaid 
                        amount of the guaranteed portion of the 
                        mortgage, to the extent provided under 
                        subsection (a)(2), from the Secretary; and
                          (ii) within such period as may be specified 
                        in the guarantee or related agreements, the 
                        Secretary shall pay to the holder of the 
                        guarantee, to the extent provided under 
                        subsection (a)(2), the unpaid interest on, and 
                        unpaid principal of the portion of guaranteed 
                        portion of the mortgage with respect to which 
                        the borrower has defaulted, unless the 
                        Secretary finds that there was no default by 
                        the borrower in the payment of interest or 
                        principal or that the default has been 
                        remedied.
                  (B) Forbearance.--Nothing in this paragraph precludes 
                any forbearance by the holder of an eligible mortgage 
                for the benefit of the mortgagor which may be agreed 
                upon by the parties to the mortgage and approved by the 
                Secretary.
          (2) Subrogation.--
                  (A) In general.--If the Secretary makes a payment 
                under paragraph (1), the Secretary shall be subrogated 
                to the extent of such payment to the rights of the 
                recipient of the payment as specified in the guarantee 
                or related agreements including, if appropriate, the 
                authority (notwithstanding any other provision of 
                law)--
                          (i) to complete, maintain, operate, lease, or 
                        otherwise dispose of any property acquired 
                        pursuant to such guarantee or related 
                        agreements; or
                          (ii) to permit the mortgagor, pursuant to an 
                        agreement with the Secretary, to continue to 
                        occupy the property subject to the mortgage, if 
                        the Secretary determines such occupancy to be 
                        appropriate.
                  (B) Allocation of rights and responsibilities.--In 
                the event of a payment under paragraph (1), the rights 
                of the Secretary, with respect to any property acquired 
                pursuant to a guarantee or related agreements, shall be 
                superior to the rights of any other person with respect 
                to the property, except that as long as amounts remain 
                due to the recipient of the payment under the terms of 
                the eligible mortgage and as long as the recipient 
                diligently pursues collection of all amounts due under 
                the eligible mortgage, all decisions with respect to 
                the eligible mortgage, including efforts to collect the 
                unpaid amounts, shall be made by the recipient, 
                Provided, That any amounts collected by the recipient 
                less reasonable out-of-pocket costs of collection shall 
                be shared with the Secretary in the same ratio as the 
                guaranteed portion bears to the original principal 
                amount of the eligible mortgage.
                  (C) Terms and conditions.--A guarantee agreement 
                shall include such detailed terms and conditions as the 
                Secretary determines appropriate to protect the 
                interests of the United States in the case of default.
          (3) Full faith and credit.--The full faith and credit of the 
        United States is pledged to the payment of all guarantees 
        issued under this section with respect to principal and 
        interest.
  (g) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Eligible mortgage.--The term ``eligible mortgage'' means 
        a mortgage that meets the requirements under subsection (b).
          (2) Green portion.--The term ``green portion'' means, with 
        respect to an eligible mortgage, the portion of the mortgage 
        principal referred to in subsection (b)(2) that is 
        attributable, as determined in accordance with regulations 
        issued by the Secretary, to the increased costs incurred in 
        financing provision of sustainable building elements for the 
        housing for which the mortgage was made, as compared to the 
        costs that would have been incurred in financing the provision 
        of other building elements for the housing for the same 
        purposes that are commonly or conventionally used but are not 
        sustainable building elements.
          (3) Guaranteed portion.--The term ``guaranteed portion'' 
        means, with respect to an eligible mortgage guaranteed under 
        this section, the green portion of the mortgage that is so 
        guaranteed.
          (4) Mortgage.--The term ``mortgage'' has the meaning given 
        such term in section 201 of the National Housing Act (12 U.S.C. 
        1707).
          (5) Multifamily housing.--The term ``multifamily housing'' 
        means a residential property consisting of five or more 
        dwelling units.
          (6) Secretary.--The term ``Secretary'' means the Secretary of 
        Housing and Urban Development.
          (7) Single-family housing.--The term ``single-family 
        housing'' means a residential property consisting of one to 
        four dwelling units.
          (8) Sustainable building element.--The term ``sustainable 
        building element'' means such building elements, as the 
        Secretary shall define, that have energy efficiency or 
        environmental sustainability qualities that are superior to 
        such qualities for other building elements for the same 
        purposes that are commonly or conventionally used.
  (h) Authorization of Appropriations.--There is authorized to be 
appropriated for costs (as such term is defined in section 502 of the 
Federal Credit Reform Act of 1990 (2 U.S.C. 661a) of guarantees under 
this section $500,000,000 for each of fiscal years 2010 through 2014.
  (i) Regulations.--The Secretary shall issue any regulations necessary 
to carry out this section.

SEC. 26. GREEN DIVIDEND PROGRAM FOR FEDERALLY ASSISTED RENTAL HOUSING.

  (a) Authority.--The Secretary shall establish a program under this 
section to provide green dividends to owners of covered federally 
assisted housing projects who undertake utility cost-saving measures 
that result in utility cost savings for such housing.
  (b) Green Dividends.--
          (1) In general.--A green dividend under this section with 
        respect to a covered federally assisted housing project shall 
        be an annual distribution, to the owner of the project, of an 
        amount of the surplus project funds that is equal to the sum 
        of--
                  (A) 50 percent of the annual utility cost savings 
                resulting from the utility cost-saving measures 
                conducted for the project; and
                  (B) any reasonable costs, as determined by the 
                Secretary pursuant to subsection (d)(4), incurred by 
                the owner in carrying out the utility cost-saving 
                measures, including required reporting and monitoring 
                costs and financing costs incurred by the owner or a 
                third party, in compliance with guidelines established 
                pursuant to subsection (d)(3).
          (2) Additional to standard distribution.--Notwithstanding any 
        other law or regulation relating to a limitation on 
        distributions for a covered federally assisted housing project, 
        a green dividend under this section shall be in addition to the 
        standard distribution that the owner of the project is 
        authorized to receive from the project pursuant to the 
        regulations of the Secretary.
  (c) Standards for Measurement and Monitoring.--In carrying out the 
program under this section, the Secretary shall establish and utilize 
the following standardized methods:
          (1) Methods that an owner of a covered federally assisted 
        housing project may use to accurately measure the baseline 
        utility use of the project before undertaking the utility cost-
        saving measures for the project.
          (2) Methods that an owner of a covered federally assisted 
        housing project may use to effectively monitor reductions in 
        the utility use of the project resulting from the completed 
        utility cost-saving measures for the project.
          (3) Methods that an owner of a covered federally assisted 
        housing project may use to track, and that the Secretary may 
        use to verify, utility cost savings resulting from the utility 
        cost-saving measures for the project that account for the 
        effect of changes in utility costs and such other factors that 
        the Secretary considers necessary or appropriate.
  (d) Other Requirements.--
          (1) Application and selection.--The Secretary shall establish 
        requirements for owners of covered federally assisted housing 
        projects to apply for participation in the program under this 
        section and shall select among such applications based upon 
        selection criteria, which the Secretary shall establish.
          (2) Cost-effectiveness.--The Secretary shall establish 
        guidelines to ensure that any utility cost-saving measures 
        undertaken pursuant to the program under this section are cost-
        effective in relation to the utility cost savings resulting 
        from the measures and the green dividend provided under this 
        section to the owner.
          (3) Energy performance contracts.--The Secretary shall 
        establish guidelines for the use of energy performance 
        contracting in carrying out utility cost-saving measures 
        pursuant to the program under this section.
          (4) Financing costs.--The Secretary shall establish 
        guidelines for the financing of the reasonable costs incurred 
        by an owner of a covered federally assisted housing project in 
        carrying out utility cost-saving measures under the program 
        under this section, and whether such costs, whether financed by 
        the limited dividend owner or a third party, shall be repayable 
        from project funds.
          (5) Reporting.--
                  (A) To secretary.--The Secretary shall require each 
                owner of a covered federally assisted housing project 
                for which a green dividend is provided pursuant to the 
                program under this section to submit to the Secretary 
                such reports regarding the project, the utility cost-
                saving measures undertaken for the project, and the 
                utility cost savings of the project in accordance with 
                such requirements as the Secretary shall establish.
                  (B) To congress.--The Secretary shall submit reports 
                to the Congress describing the implementation and 
                operation of the program under this section, as 
                follows:
                          (i) Initial report.--The Secretary shall 
                        submit reports describing the initial 
                        implementation and operation of the program not 
                        later than the expiration of the 180-day period 
                        beginning upon the date of the enactment of 
                        this Act.
                          (ii) Annual reports.--Not later than the 
                        expiration of the 12-month period that begins 
                        upon the expiration of the period specified 
                        clause (i), and upon the expiration of each 
                        successive 12-month period thereafter, the 
                        Secretary shall submit a report describing the 
                        ongoing operation of the program.
  (e) Preemption of Conflicting State Laws Limiting Distributions.--
          (1) In general.--Except as provided in paragraph (2), no 
        State or political subdivision of a State may establish, 
        continue in effect, or enforce any law, regulation, or 
        administrative requirement that limits or restricts, to an 
        amount that is less than the sum of the amounts provided for 
        under paragraphs (1) and (2) of subsection (b), the amount of 
        surplus project funds accruing after the date of the enactment 
        of this section that may be distributed from any covered 
        federally assisted housing project.
          (2) Exception and waiver.--Paragraph (1) shall not apply to 
        any law or regulation to the extent such law or regulation 
        applies to--
                  (A) a State-financed covered federally assisted 
                housing project; or
                  (B) a covered federally assisted housing project for 
                which the owner has elected to waive the applicability 
                of paragraph (1).
  (f) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Covered federally assisted housing project.--The term 
        ``covered federally assisted housing project'' means any 
        multifamily rental housing project that--
                  (A) is provided any rental assistance, subsidy, or 
                other financial assistance by the Secretary; and
                  (B) that is subject to a limitation on distributions 
                to the owner, whether for-profit or non-for-profit, of 
                project funds under section 200.106(a), 236.1(c), 
                880.205(a) or (b), 881.205(a) or (b), or 883.306(a) or 
                (b) of title 24 of the Code of Federal Regulations, or 
                any other statute or regulation applicable to the 
                project.
          (2) Secretary.--The term ``Secretary'' means the Secretary of 
        Housing and Urban Development.
          (3) Surplus project funds.--The term ``surplus project 
        funds'' means, with respect to a covered federally assisted 
        housing project, the net revenue of the project after all 
        project expenses have been paid, or funds have been set aside 
        for the payment thereof, and any reserve requirements 
        applicable to the project have been met.
          (4) Utility cost savings.--The term ``utility cost savings'' 
        means, with respect to utility cost-saving measures undertaken 
        for a covered federally assisted housing project, the 
        difference between--
                  (A) the energy or water costs that would have been 
                incurred for the project if such utility cost-saving 
                measures were not completed; and
                  (B) the actual energy or water costs for the project 
                after completion of the utility cost-saving measures.
          (5) Utility cost-saving measures.--The term ``utility cost-
        saving measures'' means, with respect to a covered federally 
        assisted housing project, any rehabilitation, renovation, 
        retrofit, improvement, or alteration for the project that 
        incorporates any technology, equipment, fixture, or material, 
        or promotes any practice, designed to reduce the energy or 
        water consumption of the project. Such measures shall utilize 
        Energy Star or WaterSense rated products or devices at a 
        minimum. In cases in which there is no Energy Star or 
        WaterSense designated product or device, the Secretary shall 
        designate the minimum standards.
  (g) Regulations.--Not later than the expiration of the 180-day period 
beginning on the date of the enactment of this Act, the Secretary shall 
issue any regulations necessary to carry out this section.

SEC. 27. USE OF RESIDUAL RECEIPTS AND RESERVE FOR REPLACEMENTS FUNDS 
                    FOR GREEN RETROFITS OF FEDERALLY ASSISTED RENTAL 
                    HOUSING.

  The Secretary of Housing and Urban Development shall--
          (1) review the regulations and agreements of the Department 
        of Housing and Urban Development concerning residual receipts 
        accounts in federally assisted rental housing that is subject 
        to a limitation on distributions, to the owner, of project 
        funds under section 200.106(a), 236.1(c), 880.205, 881.205, or 
        883.306 of title 24 of the Code of Federal Regulations, or any 
        other statute or regulation applicable to the project, to 
        clarify whether the use of such funds for other project 
        purposes includes activities related to the energy efficiency 
        at properties with such residual receipts accounts; and
          (2) revise its policies with regard to the use of reserve for 
        replacement funds to encourage the use of such reserves, where 
        practical, for energy efficiency items.

SEC. 28. STUDY ON BUILDING CODES EFFECTS ON CONSTRUCTION AND 
                    INSTALLATION OF DISTRIBUTIVE ENERGY GENERATION 
                    MEASURES AND WATER EFFICIENCY MEASURES.

  (a) Study.--The Comptroller General of the United States shall 
conduct a study to analyze to what extent provisions of State and local 
building codes create obstacles or otherwise conflict with efforts to 
enable and encourage the construction and installation in such projects 
of distributive energy generation measures and water efficiency 
measures.
  (b) Provision of Information to Energy Information Administration.--
The Comptroller General shall provide any information collected in 
conducting the study under this section to the Secretary of Energy to 
supplement information collected and maintained by the Energy 
Information Administration of the Department of Energy regarding 
residential energy consumption.
  (c) Report.--Not later than the expiration of the 6-month period 
beginning on the date of the enactment of this Act, the Comptroller 
General shall submit a report to the Congress and to the Secretary of 
Energy setting forth the results and conclusions of the study under 
this section.

SEC. 29. COMMUNITY BUILDING CODE ADMINISTRATION GRANTS.

  (a) Short Title.--This section may be cited as the ``Community 
Building Code Administration Grant Act of 2009''.
  (b) Grant Program Authorized.--
          (1) Grant authorization.--The Secretary of Housing and Urban 
        Development shall, to the extent amounts are made available for 
        grants under this section, provide grants to local building 
        code enforcement departments.
          (2) Competitive awards.--The Secretary shall award grants 
        under paragraph (1) on a competitive basis pursuant to the 
        criteria set forth in subsection (f), but also taking into 
        consideration the following:
                  (A) The financial need of each building code 
                enforcement department.
                  (B) The benefit to the jurisdiction of having an 
                adequately funded building code enforcement department.
                  (C) The demonstrated ability of each building code 
                enforcement department to work cooperatively with other 
                local code enforcement offices, health departments, and 
                local prosecutorial agencies.
          (3) Maximum amount.--The maximum amount of any grant awarded 
        under this subsection shall not exceed $1,000,000.
  (c) Required Elements in Grant Proposals.--In order to be eligible 
for a grant under subsection (b), a building code enforcement 
department of a jurisdiction shall submit to the Secretary the 
following:
          (1) A demonstration of the jurisdiction's needs in executing 
        building code enforcement administration.
          (2) A plan for the use of any funds received from a grant 
        under this section that addresses the needs discussed in 
        paragraph (1) and that is consistent with the authorized uses 
        established in subsection (d).
          (3) A plan for local governmental actions to be taken to 
        establish and sustain local building code enforcement 
        administration functions, without continuing Federal support, 
        at a level at least equivalent to that proposed in the grant 
        application.
          (4) A plan to create and maintain a program of public 
        outreach that includes a regularly updated and readily 
        accessible means of public communication, interaction, and 
        reporting regarding the services and work of the building code 
        enforcement department to be supported by the grant.
          (5) A plan for ensuring the timely and effective 
        administrative enforcement of building safety and fire 
        prevention violations.
  (d) Use of Funds; Matching Funds.--
          (1) Authorized uses.--Amounts from grants awarded under 
        subsection (b) may be used by the grant recipient to supplement 
        existing State or local funding for administration of building 
        code enforcement. Such amounts may be used to increase 
        staffing, provide staff training, increase staff competence and 
        professional qualifications, or support individual 
        certification or departmental accreditation, or for capital 
        expenditures specifically dedicated to the administration of 
        the building code enforcement department.
          (2) Additional requirement.--Each building code enforcement 
        department receiving a grant under subsection (b) shall empanel 
        a code administration and enforcement team consisting of at 
        least 1 full-time building code enforcement officer, a city 
        planner, and a health planner or similar officer.
          (3) Matching funds required.--
                  (A) In general.--To be eligible to receive a grant 
                under this section, a building code enforcement 
                department shall provide matching, non-Federal funds in 
                the following amount:
                          (i) In the case of a building code 
                        enforcement department serving an area with a 
                        population of more than 50,000, an amount equal 
                        to not less than 50 percent of the total amount 
                        of any grant to be awarded under this section.
                          (ii) In the case of a building code 
                        enforcement department serving an area with a 
                        population of between 20,001 and 50,000, an 
                        amount equal to not less than 25 percent of the 
                        total amount of any grant to be awarded under 
                        this section
                          (iii) In the case of a building code 
                        enforcement department serving an area with a 
                        population of less than 20,000, an amount equal 
                        to not less than 12.5 percent of the total 
                        amount of any grant to be awarded under this 
                        section.
                  (B) Economic distress.--
                          (i) In general.--The Secretary may waive the 
                        matching fund requirements under subparagraph 
                        (A), and institute, by regulation, new matching 
                        fund requirements based upon the level of 
                        economic distress of the jurisdiction in which 
                        the local building code enforcement department 
                        seeking such grant is located.
                          (ii) Content of regulations.--Any regulations 
                        instituted under clause (i) shall include--
                                  (I) a method that allows for a 
                                comparison of the degree of economic 
                                distress among the local jurisdictions 
                                of grant applicants, as measured by the 
                                differences in the extent of growth 
                                lag, the extent of poverty, and the 
                                adjusted age of housing in such 
                                jurisdiction; and
                                  (II) any other factor determined to 
                                be relevant by the Secretary in 
                                assessing the comparative degree of 
                                economic distress among such 
                                jurisdictions.
          (4) In-kind contributions.--In determining the non-Federal 
        share required to be provided under paragraph (3), the 
        Secretary shall consider in-kind contributions, not to exceed 
        50 percent of the amount that the department contributes in 
        non-Federal funds.
          (5) Waiver of matching requirement.--The Secretary shall 
        waive the matching fund requirements under paragraph (3) for 
        any recipient jurisdiction that has dedicated all building code 
        permitting fees to the conduct of local building code 
        enforcement.
  (e) Rating and Ranking of Applications.--Eligible applications will 
be rated and ranked according to the criteria under subsection (f). All 
complete applications shall be compared to one another and points shall 
be assigned on a continuum within each criteria with the maximum points 
awarded to the application that best meets the criteria.
  (f) Criteria.--The criteria under this subsection are as follows:
          (1) Need and community benefit from code enforcement grant 
        funds.--The degree to which the application demonstrates the 
        intent and means to ensure cooperative and effective working 
        relationships between local building code enforcement officials 
        and other local agencies, as well as a community-oriented 
        approach to building code enforcement, with points awarded as 
        follows:

----------------------------------------------------------------------------------------------------------------
                               Description                                            Maximum Points
----------------------------------------------------------------------------------------------------------------
A detailed description of the capital expenditures to be acquired with    0-10
 grant funds and a demonstration that the items' costs are reasonable.
The jurisdiction's need for the capital expenditure and how the grant     0-10
 funds will fulfill this need.
The joint benefits provided by the proposed expenditure for the           0-5
 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.).
Does the proposed capital expenditure provide a cost savings benefit to   0-5.
 the jurisdiction? Provide a brief explanation of the cost savings.
----------------------------------------------------------------------------------------------------------------

          (2) Current code enforcement and housing conservation plan.--
        Whether the local legislative body in which the applicant 
        resides has adopted a plan that addresses residential structure 
        conservation and building code enforcement. Points shall be 
        awarded, based on which of the descriptions from the following 
        list best reflects such jurisdiction's plan for building code 
        enforcement activities, as follows:

----------------------------------------------------------------------------------------------------------------
                               Description                                            Maximum Points
----------------------------------------------------------------------------------------------------------------
The plan provides for proactive code enforcement (not just responding to  10
 complaints), an interdisciplinary approach, and includes funding
 options for repairs and rehabilitation.
The plan only provides for proactive code enforcement (not just           8
 responding to complaints) and calls for an interdisciplinary approach
 and does not address funding options for repairs and rehabilitation.
The plan provides for some type of proactive code enforcement (other      6
 than just responding to complaints) but doesn't address coordinated
 interdisciplinary activities with other local public agencies or
 funding options.
The plan provides for only reactive code enforcement.                     4
The plan only refers to a need to preserve and/or improve existing        2
 housing stock, without any code enforcement program.
No existing plan.                                                         0.
----------------------------------------------------------------------------------------------------------------

          (3) Community-oriented or interdisciplinary code 
        enforcement.--The degree to which the application demonstrates 
        the intent and means to ensure cooperative and effective 
        working relationships between building code enforcement 
        officials and other local agencies, as well as a community-
        oriented approach to code enforcement, with points awarded as 
        follows:

----------------------------------------------------------------------------------------------------------------
                               Description                                            Maximum Points
----------------------------------------------------------------------------------------------------------------
Identify current or proposed interdisciplinary code enforcement programs  0-10
 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.
Identify current or proposed community-oriented code enforcement          0-10.
 programs, activities, or services. (Examples: community clean-ups,
 Neighborhood Watch programs, community meetings, door-to-door 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.
----------------------------------------------------------------------------------------------------------------

          (4) Proactive code enforcement activities.--The effectiveness 
        of the proposed or existing proactive activities and programs 
        operated by any existing building code enforcement program, 
        which shall include points awarded as follows for any such 
        activities or programs:

----------------------------------------------------------------------------------------------------------------
                               Description                                            Maximum Points
----------------------------------------------------------------------------------------------------------------
Encourages repairs and preservation, rather than demolition or            0-5
 abandonment, of substandard residences.
Abatement of (a) lead hazards and lead-based paints, (b) toxic molds and  0-5
 dampness, and (c) displacement or relocation of residents.
Community clean-up campaigns. This may include recycling dates, free or   0-5
 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.
Resource or referral programs for Federal, State, local, and private      0-5
 funds and other resources available in your jurisdiction that can
 assist with housing rehabilitation and repairs to rectify code
 violations.
Public education programs on housing issues. These could include          0-5
 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.
Programs that encourage community involvement with groups; such as        0-5.
 schools, church nonprofits, community service groups, utility
 companies, local stores, housing agency banks, etc.
----------------------------------------------------------------------------------------------------------------

          (5) Capacity to financially and technically support proposed 
        capital expenditures.--The degree to which the application 
        demonstrates the jurisdiction's financial and technical 
        capacity to properly use and successfully support the proposed 
        capital expenditure during the term of the grant, with points 
        awarded as follows:

----------------------------------------------------------------------------------------------------------------
                               Description                                            Maximum Points
----------------------------------------------------------------------------------------------------------------
The anticipated ongoing program funding for the duration of the grant     0-5
 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.).
The jurisdiction has the technical capabilities to use and support        0-5.
 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.).
----------------------------------------------------------------------------------------------------------------

  (g) Evaluation and Report.--
          (1) In general.--Grant recipients shall--
                  (A) be obligated to fully account and report for the 
                use of all grants funds; and
                  (B) provide a report to the Secretary on the 
                effectiveness of the program undertaken by the grantee 
                and any other criteria requested by the Secretary for 
                the purpose of indicating the effectiveness of, and 
                ideas for, refinement of the grant program.
          (2) Report.--The report required under paragraph (1)(B) shall 
        include a discussion of--
                  (A) the specific capabilities and functions in local 
                building code enforcement administration that were 
                addressed using funds received under this section;
                  (B) the lessons learned in carrying out the plans 
                supported by the grant; and
                  (C) the manner in which the programs supported by the 
                grant are to be maintained by the grantee.
          (3) Content of reports.--The Secretary shall--
                  (A) require each recipient of a grant under this 
                section to file interim and final reports under 
                paragraph (2) to ensure that grant funds are being used 
                as intended and to measure the effectiveness and 
                benefits of the grant program; and
                  (B) develop and maintain a means whereby the public 
                can access such reports, at no cost, via the Internet.
  (h) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Building code enforcement.--The term ``building code 
        enforcement'' means the enforcement of any code, adopted by a 
        State or local government, that regulates the construction of 
        buildings and facilities to mitigate hazards to life or 
        property. Such term includes building codes, electrical codes, 
        energy codes, fire codes, fuel gas codes, mechanical codes, and 
        plumbing codes.
          (2) Building code enforcement department.--The term 
        ``building code enforcement department'' means an inspection or 
        enforcement agency of a jurisdiction that is responsible for 
        conducting building code enforcement.
          (3) Jurisdiction.--The term ``jurisdiction'' means a city, 
        county, parish, city and county authority, or city and parish 
        authority having local authority to enforce building codes and 
        regulations and to collect fees for building permits.
          (4) Secretary.--The term ``Secretary'' means the Secretary of 
        Housing and Urban Development.
  (i) Authorization of Appropriations.--
          (1) In general.--There are authorized to be appropriated 
        $20,000,000 for each of fiscal years 2010 through 2014 to the 
        Secretary of Housing and Urban Development to carry out the 
        provisions of this section.
          (2) Reservation.--From the amount made available under 
        paragraph (1), the Secretary may reserve not more than 5 
        percent for administrative costs.
          (3) Availability.--Any funds appropriated pursuant to 
        paragraph (1) shall remain available until expended.

                          Purpose and Summary

    The purpose of H.R. 2336, the ``Green Resources for Energy 
Efficient Neighborhoods Act of 2010'' or the ``GREEN Act'' is 
to reduce the harmful effects that buildings have on the 
environment by encouraging energy-efficiency and conservation 
and the development and installation of renewable energy 
sources for housing and commercial buildings, thereby creating 
sustainable communities. The GREEN Act also is designed to 
improve the energy efficiency of buildings within very low, low 
and moderate income communities, which will lower the utility 
costs and negative health factors affecting single and multi-
family dwellings.

                  Background and Need for Legislation

    Efforts to promote energy-efficiency have taken on new 
urgency in light of escalating demand for energy and rising 
fuel costs. According to the Department of Energy (DOE), the 
building sector is responsible for 39 percent of total U.S. 
carbon dioxide emissions. Furthermore, both the DOE and the 
U.S. Environmental Protection Agency (EPA) have stated that 
improving energy efficiency in our homes, businesses, schools, 
governments, and industries, which together consume more than 
70 percent of the natural gas and electricity used in the 
country, is one of the most constructive, cost-effective ways 
to address the challenges of high energy prices, energy 
security and independence, air pollution, and global climate 
change. Analysis by both the DOE and EPA has concluded that 
increased investment in energy efficiency in homes, buildings, 
and industries can lower energy bills, reduce demand for fossil 
fuels, help stabilize energy prices, enhance electric and 
natural gas system reliability, and help reduce air pollutants 
and greenhouse gases.
    A joint five-year initiative carried out by the United 
States Department of Housing and Urban Development (HUD) and 
DOE concluded that significant energy and cost savings for both 
residents and the Federal Government can be realized by 
improving the energy efficiency of public and assisted housing. 
It also found that alternative sources of financial assistance 
for energy improvements were shown to be available, helping to 
refute the perception that energy-efficient housing is 
expensive. The findings indicated that energy efficiency is a 
key element in assuring the creation and maintenance of truly 
affordable housing for low- and moderate-income households.
    Moreover, in testimony before the Subcommittee on Housing 
and Community Opportunity on the GREEN Act last year, HUD 
Deputy Secretary Ron Sims stated that HUD's own budget is 
directly affected by utility costs. Deputy Secretary Sims noted 
that HUD spends an estimated $5 billion on energy, either 
directly in the form of public housing operating subsidies or 
indirectly through utility allowances and Section 8 contracts 
in assisted multifamily housing, adding that this is an area 
where significant cost savings are possible, freeing revenue 
for other important capital investments or rental assistance 
needs. He gave the example that achieving a savings of just 5 
percent per year could generate a savings of $1 billion over 
the next 5 years.
    Analysis by HUD on the cost of utilities in public and 
federally-assisted housing further demonstrates the value and 
cost savings that can be achieved through energy efficiency 
activities. In public housing, HUD data shows that the overall 
cost of utilities (including water and sewer charges) in 2006 
totaled $1.85 billion, including an estimated $421 million that 
was spent through utility allowances on tenant-paid utilities. 
In federally-assisted housing, utility costs have also 
increased. According to HUD data, average owner-paid per-unit 
utility costs increased by 28 percent between 2000 and 2005. 
Furthermore, HUD spent an estimated $3.2 billion on project- 
and tenant-based utility allowances in 2007. The average 
tenant-based Section 8 utility allowance is now $1,467 per 
year.
    Congress has taken a number of steps in recent years to 
promote energy efficiency and lower utility costs for HUD 
rental assistance housing programs. In 2007, Congress approved 
the Energy Independence and Security Act of 2007, which was 
signed into law (P.L. 110-140) by the President on December 19, 
2007. That Act required the Department of Housing and Urban 
Development to update energy efficiency standards for all 
public and assisted housing. More recently, Congress passed the 
American Recovery and Reinvestment Act of 2009, which was 
signed into law (P.L. 111-5) by the President on February 17, 
2009. That Act established a $250 million competitive grant/
loan program to provide incentives to owners of multi-family 
housing to undertake energy efficiency retrofits.
    The GREEN Act builds on these laws by establishing programs 
within HUD and the Rural Housing Service (RHS) of the United 
States Department of Agriculture, that are designed to make 
residences energy efficient to the 2009 International Energy 
Conservation Code (IECC), which contains energy efficiency 
criteria for residential and commercial buildings and additions 
to existing buildings. The bill also provides HUD and RHS, as 
well as state, tribal and local governments, with additional 
tools and incentives to undertake important energy efficiency 
activities, reduce utility costs, and create jobs. Indeed, a 
study by the American Institute of Architects estimates that 
the bill will save or create approximately 140,000 jobs per 
year.
    Following are some of the ways the GREEN Act seeks to 
promote energy efficiency, reduce utility costs and create 
jobs:

       ENERGY EFFICIENCY AND CONSERVATION DEMONSTRATION PROGRAMS

    The GREEN Act authorizes the establishment of an energy 
efficiency and conservation demonstration program for multi-
family housing projects assisted with project-based rental 
assistance. The demonstration program would be conducted by HUD 
over a four-year period, and would include no less than 50,000 
multi-family homes. The Committee notes, however that this 
section does not include the multi-family units in the 
demonstration project authorized under the American Recovery 
and Reinvestment Act. HUD's demonstration program will evaluate 
the effectiveness of funding a portion of the costs for 
carrying out energy efficiency, conservation, and 
sustainability measures for multi-family housing. The HUD 
Secretary will have the discretion to include incentives in the 
demonstration program for housing that is assisted with the 
Native American housing block grant provided pursuant to the 
Native American Housing Assistance and Self Determination Act 
of 1996. The demonstration program will include rural housing 
as well as urban housing.
    The GREEN Act also establishes a pilot program for energy-
efficiency and conservation capital improvements for assisted 
living housing projects. It is the Committee's expectation that 
the energy cost savings realized at a project will fully 
amortize the costs of the capital improvements, including a 
reasonable fee to the project owner for incurring the debt and 
supervising the energy retrofit work.
    The GREEN Act further authorizes HUD to provide grants to 
nonprofit organizations to train, educate and advise eligible 
community development organizations in effective design 
strategies to maximize the energy efficiency of existing 
infrastructure in affordable housing and low income 
communities.

                        RENEWABLE ENERGY SYSTEMS

    The up-front cost to acquire renewable energy systems is 
often prohibitively expensive for the average homeowner. 
Consequently, the bill seeks to spur private sector capital 
investment to make renewable energy leasing readily accessible 
for the average American by authorizing the HUD Secretary to 
insure loans for the financing of renewable energy systems 
leased for residential use. The bill provides this insurance to 
minimize the initial cost of installing and utilizing renewable 
energy sources such as solar panels.
    Under the bill, the HUD Secretary may insure loans made by 
lenders to solar equipment owners such as homebuilders, public 
or private corporations and other qualifying persons and 
entities for the acquisition of renewable energy systems to 
lease to homeowners. The insurance provided through HUD is 
effective no earlier than five years beginning from the 
original date the renewable energy lease was executed and 
insures an amount up to the residual value of the renewable 
energy system.
    Additionally, the principal amount of the loan insured 
under this section shall not exceed the residual value of the 
renewable energy system. The residual value of a renewable 
energy system shall be the amount that is equal to the fair 
market value of future energy production from the system. Upon 
entering into a lease agreement, the homeowner will grant an 
easement on the area of the home where installation is 
required.
    The Committee notes that this section is not intended to 
effect the calculation of the sales price of the home equipped 
with a renewable energy system. Moreover, it is the Committee's 
intent for the Secretary to make clear that any lien granted to 
the Secretary in the renewable energy system as a result of the 
payment of an insurance claim is granted separate and apart 
from any first or subordinate security interest(s) that may 
exist or come to exist in the residential real property. 
Furthermore, the lien granted to the Secretary is granted only 
for the renewable energy system and the revenue stream 
generated from the energy it produces.
    The Committee also notes that this section is not intended 
to undermine the homeowners' obligations on the mortgage 
instrument, or the security interest of any party or parties in 
the residential real property and associated contracts. The 
guidelines adopted by the Secretary shall recognize the 
separate nature of the renewable energy systems leasing and 
power purchase agreements.

            RESIDENTIAL ENERGY EFFICIENT BLOCK GRANT PROGRAM

    The GREEN Act establishes a residential energy efficient 
block grant program, which is modeled on the distribution 
formula of the Community Development Block Grant Program. 
Grants will be provided to states, cities, counties, Native 
American tribes, and other municipal entities to carry-out 
energy efficiency improvements for single-family and multi-
family housing to meet the 2009 International Energy 
Conservation Code standards. Grants also will be provided to 
non-profits to help community organizations improve their 
energy efficiency and economic development in low-income 
communities by training, educating and providing loans to their 
communities. In addition to the grant program, the bill 
establishes a loan fund aimed at states and Native American 
tribes for renewable energy sources activities.

                            HOME APPRAISALS

    The GREEN Act also updates the home appraisal process. Bank 
regulators would be responsible for developing consistent 
guidelines for lenders and underwriters, designed to ensure 
appraisals consider renewable energy sources or energy 
conserving improvements.

                            GREEN MORTGAGES

    The bill also provides HUD with authority to guarantee a 
green portion of eligible mortgages. Under this provision, the 
Secretary may make commitments to repay portions of the 
principal obligations of mortgages that are used to finance 
eligible sustainable building elements. This section is one of 
several in the GREEN Act creating new financing mechanisms for 
energy efficient improvements in the marketplace.

               FINANCING FOR MULTIFAMILY GREEN RETROFITS

    The GREEN Act authorizes the HUD Secretary to establish 
incentives to increase the energy efficiency of multi-family 
homes, including a discount on the chargeable premiums for the 
mortgage insurance. The bill also establishes a green dividend 
program for owners of federally-assisted multi-family housing 
projects who undertake utility cost-saving measures that result 
in utility cost-savings measures and establishes incentives for 
owners of HUD-assisted multifamily housing projects to 
undertake energy efficiency retrofits.
    The Committee has determined that residual receipts 
constitute a potential untapped source of funds to pay for 
energy retrofits on those properties that have accumulated 
substantial residual receipts while also ensuring the continued 
long-term affordability of these properties. As such, the GREEN 
Act includes a section authorizing the Secretary to promulgate 
guidance to encourage and facilitate the use of these funds in 
this manner.

                                Hearings

    The Subcommittee on Housing and Community Opportunity held 
a hearing on June 11, 2009, on ``H.R. 2336, the GREEN Act of 
2009'' (part one). The following witnesses testified:

                              WITNESS LIST

Panel One

    Mr. Gerald M. Howard, President, National Association of 
Homebuilders
    Mr. Doug Gatlin, Vice President, Market Development, U.S. 
Green Building Council
    Ms. Doris Koo, President and Chief Executive Officer, 
Enterprise Community Partners, Inc.
    Mr. Scott Bernstein, President, Center for Neighborhood 
Technology
    Mr. Edward Mazria, Architecture 2030
    Mr. Roy Willis, Executive Vice President, Lennar Urban 
(Southern California division)
    Mr. David Wluka, Director, National Association of Realtors

    The Subcommittee on Housing and Community Opportunity held 
a subsequent hearing on June 16, 2009, on ``H.R. 2336, the 
GREEN Act of 2009'' (part two). The following witness 
testified:

                              WITNESS LIST

    The Honorable Ron Sims, Deputy Secretary, U.S. Department 
of Housing and Urban Development

                        Committee Consideration

    The Committee on Financial Services met in open session on 
April 22, 2010, and ordered H.R. 2336, Green Resources for 
Energy Efficient Neighborhoods Act of 2009 or the GREEN Act of 
2009, as amended, favorably reported to the House by a voice 
vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. No 
record votes were taken in conjunction with the consideration 
of this legislation. A motion by Mr. Frank to report the bill, 
as amended, to the House with a favorable recommendation was 
agreed to by a voice vote. During consideration of the bill, 
the following amendments were considered:
    An amendment by Mr. Perlmutter (and Mrs. Biggert), No. 1, a 
manager's amendment, was agreed to by a voice vote.
    An amendment by Mr. Cleaver, No. 2, relating to 
deconstruction standards, was agreed to by a voice vote.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has held hearings and 
made findings that are reflected in this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee establishes the 
following performance related goals and objectives for this 
legislation:
    The purpose of H.R. 2336 is to reduce the harmful effects 
that buildings have on the environment by encouraging energy-
efficiency and conservation and the development and 
installation of renewable energy sources for housing and 
commercial buildings, thereby creating sustainable communities. 
The Act also is designed to improve the energy efficiency of 
buildings within very low, low and moderate income communities, 
which will lower the utility costs and negative health factors 
affecting single and multi-family dwellings.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                                     June 30, 2010.
Hon. Barney Frank,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2336, the GREEN 
Act of 2010.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Chad Chirico.
            Sincerely,
                                              Douglas W. Elmendorf.
    Enclosure.

H.R. 2336--GREEN Act of 2010

    Summary: H.R. 2336 would define minimum energy efficiency 
standards for properties that are assisted by the Department of 
Housing and Urban Development (HUD) and authorize a number of 
programs to encourage residential energy efficiency and 
conservation. CBO estimates that implementing H.R. 2336 would 
cost about $10 billion over the 2011-2015 period, assuming 
appropriation of the necessary amounts. Enacting the bill would 
not affect direct spending or revenues; therefore, pay-as-you-
go procedures would not apply.
    H.R. 2336 contains an intergovernmental mandate as defined 
in the Unfunded Mandates Reform Act (UMRA) because it would 
preempt underwriting laws and regulations established by public 
housing finance authorities. CBO estimates the cost of 
complying with the mandate would be small and would fall well 
below the threshold established in UMRA for intergovernmental 
mandates ($70 million in 2010, adjusted annually for 
inflation).
    H.R. 2336 would impose a mandate on the private sector as 
defined in UMRA. It would increase the reporting requirements 
on mortgage lenders for certain loans. CBO estimates that the 
aggregate cost of complying with this mandate would not exceed 
the threshold established by UMRA for private-sector mandates 
($141 million in 2010, adjusted annually for inflation).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 2336 is shown in the following table. 
The costs of this legislation fall within budget functions 450 
(community and regional development) and 600 (income security).

----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year, in millions of dollars--
                                                              --------------------------------------------------
                                                                2011    2012    2013    2014    2015   2011-2015
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Residential Energy Efficiency Block Grants:
    Estimated Authorization Level............................   2,500   2,525   2,552   2,582   2,621     12,780
    Estimated Outlays........................................      25     650   1,957   2,427   2,503      7,562
Green Guarantees:
    Authorization Level......................................     500     500     500     500       0      2,000
    Estimated Outlays........................................     500     500     500     500       0      2,000
Alternative Energy Sources State Loan Fund:
    Estimated Authorization Level............................     100       0       0       0       0        100
    Estimated Outlays........................................       8      14      24      20      12         78
Energy Efficiency and Conservation Demonstration Program:
    Authorization Level......................................      50      50      50      50      50        250
    Estimated Outlays........................................      17      34      50      50      50        201
Community Building Code Administration Grants:
    Authorization Level......................................      20      20      20      20       0         80
    Estimated Outlays........................................       5      15      20      20      15         75
Sustainable Community Development Capacity Grants:
    Authorization Level......................................      10      10      10      10       0         40
    Estimated Outlays........................................       2       6      10      10       8         36
Energy-Efficient Mortgages Education and Outreach Campaign:
    Authorization Level......................................       5       5       5       5       0         20
    Estimated Outlays........................................       1       5       5       5       4         20
HOPE VI Green Developments:
    Estimated Authorization Level............................      15      15      15      16      16         77
    Estimated Outlays........................................       *       1       3       6       9         19
Total Changes:
    Estimated Authorization Level............................   3,200   3,125   3,152   3,183   2,687     15,347
    Estimated Outlays........................................     558   1,225   2,569   3,038   2,601     9,991
----------------------------------------------------------------------------------------------------------------
Note: * = less than $500,000.

    Basis of estimate: For this estimate, CBO assumes that H.R. 
2336 will be enacted by the end of fiscal year 2010, that 
amounts authorized and estimated to be necessary will be 
appropriated near the beginning of each fiscal year, and that 
outlays will follow historical spending patterns for similar 
programs. Components of the estimated costs are described 
below.

Residential energy efficiency block grants

    Section 14 would authorize the appropriation of $2.5 
billion for the first year and such sums as may be necessary 
for subsequent years for HUD to make grants to state and local 
governments to encourage energy efficiency improvements in 
single-family and multifamily residences. CBO estimates that 
the program would continue at the $2.5 billion per year level, 
adjust for anticipated inflation. Implementation of the new 
program, including the formula used to distribute funding, 
would be similar to HUD's Community Development Block Grant 
(CDBG) program. Based on historical expenditures for CDBG and 
other similar federal programs, CBO estimates that implementing 
this provision would cost about $7.6 billion over the 2011-2015 
period.

Green guarantees

    Section 25 would authorize HUD to guarantee the repayment 
of the portion of a mortgage that is used to finance energy 
efficiency or environmental sustainability elements for the 
housing that is subject to the mortgage. Such guarantees could 
not exceed 10 percent of the total principal obligation of the 
mortgage. The bill would authorize $500 million for each of 
fiscal years 2011 through 2014 for the subsidy cost of such 
guarantees. Assuming appropriation of the authorized amounts 
beginning in 2011, CBO estimates that implementing this section 
would cost $2.0 billion over the 2011-2015 period.

Alternative energy sources state loan fund

    Section 21 would authorize appropriations for an 
Alternative Energy Sources State Loan Fund in the Department of 
the Treasury. The bill would allow HUD to use the fund for the 
cost of making direct loans to states and Indian tribes to 
provide incentives for property owners to use renewable energy 
sources, build infrastructure, and undertake energy efficiency 
and conservation projects. Loans would be for a term of no 
longer than 10 years and would bear interest at a rate not to 
exceed the primary credit rate charged by the Federal Reserve 
Bank (also known as the discount rate). Based on historical 
defaults in other direct loan programs for states and Indian 
tribes and CBO's projected interest rates, CBO estimates that 
the subsidy rate for these loans would vary between 1 percent 
and 10 percent over the next five years. Due to the limited 
experience of the states with this type of program and the 
large amount of grant funding recently provided to the states 
for similar purposes, we expect the demand for loans would be 
low in the first few years of the program (between $1 billion 
and $2 billion over the first five years). CBO estimates the 
subsidy cost of providing that level of loans and the 
administrative costs associated with such loans under this 
section would total $78 million over the 2011-2015 period.

Energy efficiency and conservation demonstration program

    Section 5 would authorize the appropriation of $50 million 
each year to implement a demonstration program to assist 
properties that receive project-based rental assistance to meet 
new energy efficiency standards. The demonstration program 
would assist not fewer than 50,000 units over the five-year 
period after the date of enactment. Assuming appropriation of 
the authorized amounts, CBO estimates that implementing this 
section would cost $201 million over the 2011-2015 period.

Community building code administration grants

    Section 29 would authorize the appropriation of $20 million 
for each of fiscal years 2011 through 2014 for HUD to make 
grants to local departments that enforce building codes. 
Funding would be used to increase staff levels, provide 
training and accreditation, and cover capital expenditures 
related to department administration. Based on historical 
spending patterns for similar federal programs, CBO estimates 
that implementing this provision would cost $75 million over 
the 2011-2015 period.

Sustainable community development capacity grants

    Section 16 would authorize the appropriation of $10 million 
for each of fiscal years 2011 through 2014 for HUD to make 
grants to nonprofit organizations that work on affordable 
housing to improve energy efficiency and conservation. Funds 
would be used to cover no more than half of the cost of 
providing education and training programs, direct loans, 
grants, and other support to local governments, community 
housing development organizations, Indian tribes, and public 
housing agencies. Based on historical spending patterns for 
similar federal programs, CBO estimates that implementing this 
provision would cost $36 million over the next five years.

Energy-efficient mortgages education and outreach campaign

    Section 7 would authorize the appropriation of $5 million 
for each of fiscal years 2011 through 2014 to establish a 
commission to develop and recommend model mortgage products and 
underwriting guidelines to provide incentives to incorporate 
energy efficiency upgrades as a component of new mortgage 
transactions. Assuming appropriation of the authorized amounts 
beginning in 2011, CBO estimates that implementing this section 
would cost $20 million over the 2011-2015 period.

HOPE VI green developments

    Section 17 would require that HOPE VI grant recipients 
comply with the national Green Communities criteria checklist, 
which sets certain standards for residential construction and 
rehabilitation. Based on information from HUD and industry 
groups. CBO estimates that meeting the Green Communities 
criteria would increase the cost of HOPE VI construction by 
between 5 percent and 10 percent. In 2010, $200 million was 
appropriated for the HOPE VI program. Assuming that annual 
appropriations are increased accordingly, and adjusting for 
inflation, CBO estimates that implementing this provision would 
result in outlays of $20 million over the 2011-2015 period.

Insurance for loans for financing of renewable energy systems

    Section 24 would authorize HUD to guarantee loans to third 
parties that finance the acquisition and installation of 
residential renewable energy systems and lease those systems to 
homeowners. The amount of such guarantees would be limited to 
the residual value of renewable energy systems as defined by 
the bill. Specifically, a system's residual value would reflect 
the estimated fair market value of electricity (based on price 
forecasts by the Energy Information Administration) that could 
be sold during a system's remaining useful life.
    To cover the subsidy cost of the proposed loan guarantees, 
the bill would direct HUD to charge lenders an upfront premium 
of not more than 3 percent of the principal of the loan being 
insured. Consistent with the Federal Credit Reform Act, HUD's 
authority to issue loan guarantees would be subject to limits 
on loan levels specified in annual appropriation acts.
    CBO estimates that allowing HUD to charge premiums of up to 
3 percent would enable the agency to charge fees that, on 
average, would offset the program's subsidy costs, resulting in 
no significant net cost or savings to the federal government. 
That estimate is based on information from industry experts 
about the credit worthiness of homeowners and firms likely to 
participate in transactions that would be guaranteed by the 
federal government. For purposes of this estimate, CBO assumes 
that underlying contracts, warranties, and property insurance 
related to covered renewable energy systems would minimize 
technology risk faced by the federal government. CBO also 
assumes that each loan guaranteed would finance multiple 
residential installations, thereby spreading risk across a wide 
portfolio of properties.
    Pay-as-you-go considerations: None.
    Estimated impact on State, local, and tribal governments: 
Under current law, public housing finance authorities can 
establish regulations, including underwriting policies, that 
apply to borrowers who receive state and federal resources. The 
bill would preempt state and local laws that limit the amount 
of funds that may be distributed to certain borrowers of 
federal housing funds. However, because the preemption would 
simply limit the application of state and local laws, CBO 
estimates that it would not impose significant costs and would 
fall well below the threshold established in UMRA for 
intergovernmental mandates ($70 million in 2010, adjusted 
annually for inflation).
    Estimated impact on the private sector: H.R. 2336 would 
impose a private-sector mandate as defined in UMRA, on mortgage 
lenders, particularly those lenders who support projects that 
increase the energy efficiency of housing units.
    The bill would require all lenders subject to the Home 
Mortgage Disclosure Act to report both the number and dollar 
amount of loans, for single-family and multifamily housing, 
that are either energy-efficient mortgages or location-
efficient mortgages. The initial direct cost of complying with 
this mandate, which would be higher than the continuing cost, 
would be to begin collecting, compiling, and reporting such 
information in addition to what is already reported.
    CBO estimates that the direct cost of this mandate would be 
less than UMRA's threshold of $141 million in 2010, adjusted 
annually for inflation.
    Estimate prepared by: Federal Costs: Chad Chirico, Megan 
Carroll, and Dan Hoople; Impact on State, Local, and Tribal 
Governments: Lisa Ramirez-Branum; Impact on the Private Sector: 
Sarah Axeen.
    Estimate approved by: Peter H. Fontaine, Assistant Director 
for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional Authority of Congress to enact this legislation 
is provided by Article 1, section 8, clause 1 (relating to the 
general welfare of the United States) and clause 3 (relating to 
the power to regulate interstate commerce).

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    H.R. 2336 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

             Section-by-Section Analysis of the Legislation

Sec. 1. Short title and table of contents

    This section sets forth the short title and table of 
contents.
    This Act may be cited as the ``Green Resources for Energy 
Efficient Neighborhoods Act of 2009'' or the ``GREEN Act of 
2009''.

Sec. 2. Definitions

    This section establishes definitions for various terms, 
including: ``green building standards,'' ``HUD,'' ``HUD 
Assistance,'' ``Nonresidential Structure,'' ``Secretary''. 
Specifically, ``green building standards'' are building 
standards based on renewable energy design principals to reduce 
the use of nonrenewable resources, encourage energy-efficient 
construction and rehabilitation and the use of renewable energy 
resources, minimize the impact of development on the 
environment, and improve indoor air quality.

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

    This section authorizes the Secretary of HUD, not later 
than 180 days of enactment, to establish annual energy 
efficiency participation incentives within the programs under 
HUD jurisdiction.

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

    Subsection (a) establishes minimum HUD energy efficiency 
standards. This section serves as a reference for the rest of 
the bill.
     For new single-family or multi-family structures, 
the applicable provisions of the American Society of Heating, 
Refrigerating, and Air-Conditioning Engineers Standard (ASHRAE) 
and the applicable provisions of the 2009 International Energy 
Conservation Code (IECC) will apply. These approved standards 
cover the buildings, ceilings, walls, floors, foundations, and 
the mechanical, lighting and power systems.
     For existing structures to comply with energy 
efficiency goals when undergoing rehabilitation or 
improvements, a 20 percent reduction in energy consumption must 
be accomplished. The percentage reduction is determined by an 
energy audit.
    The Secretary shall review the adoption of any such 
requirements, standards, checklists, or rating systems for 
purposes of this section no later then 180-day period beginning 
upon the date of receipt of any written request.
    For nonresidential structures, the Secretary will adopt 
regulation for energy efficiency requirements that are 
constructed or rehabilitated with HUD assistance.
    Subsection (b) establishes enhanced energy efficiency 
standards for residential or nonresidential structures to 
receive additional credit.
     For the new construction of residential 
structures, the standard for additional credit will be Energy 
Star Standards.
     For existing residential structures, a reduction 
in energy consumption above 20 percent will comply for 
additional credit.
     For nonresidential structures, the following 
standards will apply: the national Green Communities; the LEED 
for New Construction rating system, the LEED for Homes rating 
system and the LEED for Core and Shell rating system; and the 
Green Globes assessment and rating system of the Green Building 
Initiative.
     For manufactured housing, the Energy Star rating 
with respect to fixtures, appliances, and equipments will 
comply for additional credit.
     The National Green Building Standard will also 
apply.
    This section also authorizes the Secretary to update by 
regulation the requirements, standards, criteria and rating 
systems.
    This section further directs the Secretary to review the 
adoption of any such requirements, standards, criteria, or 
rating systems for purposes of this section no later then 180-
day period beginning upon the date of receipt of any written 
request.

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

    This section authorizes HUD to conduct a section 8 
demonstration program comprised of 50,000 units for four years 
to demonstrate the effectiveness of funding a portion of the 
costs for carrying out energy efficiency and conservation and 
sustainability measures for multi-family housing.
    The Secretary shall conduct this project subject to the 
availability of amounts provided in advance in appropriation 
Acts. There will be additional project rental assistance or 
additional assistance under the Native American Housing 
Assistance and Self-Determination Act of 1996. The Secretary 
will work with homebuilders, realtors, nonprofit housing 
organizations, environmental protection organizations, 
renewable energy organizations, and advocacy organizations for 
the elderly and persons with disabilities for advisement. The 
goals of the project will be to encourage energy efficient 
improvements, and the installation of renewable energy sources 
such as solar, wind, geothermal, or biomass sources.

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

    This section directs the Secretary to develop underwriting 
standards for single-family housing to capture the impact that 
savings on utility costs has on the income of the mortgager for 
mortgages insured under this act. The bill encourages the 
Secretary to insure, through FHA, at least 50,000 mortgages, 
which meet the energy-efficient standards set forth in the 
bill, by December 31, 2012. The Secretary shall apply the same 
underwriting standards to Indian and Native Hawaiian housing 
loan guarantees.
    Data will be collected after December 31, 2011, on the 
number of mortgages meeting the energy-efficient standards that 
went into default or foreclosure. The percentage of such 
mortgages experiencing default or foreclosure will be gathered, 
along with the rate of such mortgages compared to the overall 
rate of single-family housing mortgages experiencing default or 
foreclosure. The Secretary shall apply the same data collection 
methods to Indian and Native Hawaiian housing loan guarantees.

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

    This section directs the Secretary, in consultation with 
other government officials, to establish a commission to 
develop and recommend market-based incentives to prospective 
home buyers, lenders, and sellers to incorporate energy 
efficiency upgrades in new mortgage loan transactions. Not 
later than 24 months after the date of enactment the commission 
will provide a written report to Congress on the work of the 
commission. After submission of the report the Secretary in 
consultation with other government officials shall carry out a 
public awareness, education and outreach campaign based on the 
findings of the commission.

Sec. 8. Collection of information on energy-efficient and location 
        efficient mortgages through home mortgage disclosure act

    This section amends the Home Mortgage Disclosure Act to 
provide for the collection of information on the number of, and 
dollar amount of, mortgage loans for single family and multi-
family homes that are energy efficient and location efficient.

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

    This section ensures that consumers will not be denied 
homeowners insurance for a dwelling based solely on the fact 
that the dwelling is not connected to or able to receive 
electricity service from any wholesale or retail electric power 
provider.

Sec. 10. Mortgage incentives for energy efficient multifamily housing

    This section authorizes the HUD Secretary to establish 
incentives to increase the energy efficiency of multi-family 
homes. Incentives will include a discount on the chargeable 
premiums for the mortgage insurance.

Sec. 11. Energy efficiency certifications for manufactured housing with 
        mortgages insured by FHA

    This section establishes minimum energy efficiency 
standards for manufactured homes. Specifically, manufactured 
homes must comply with the energy star ratings for wall 
fixtures, appliances and equipment. The Secretary shall require 
individuals who have been accredited by the home energy ratings 
system council, the residential energy services network, or 
other appropriate national organization to certify any single 
or multi-family housing seeking to meet energy efficiency 
criteria.

Sec. 12. Assisted housing energy loan pilot program

    This section authorizes the HUD Secretary to establish a 
program for energy efficiency and conservation for assisted 
living housing projects. The Secretary shall develop a pilot 
program that is available to service debt and provide 
appropriate owner incentives in an amount equal to the total 
savings through lower utility bills. The requirements will be 
set by the Secretary and the work may be contracted out if 
necessary.

Sec. 13. Making it green

    This section authorizes the HUD Secretary to establish a 
minimum goal where assistance is provided in consultation with 
national organizations in the low-income housing community and 
the arbor community. The bill includes incentives for 
developers to enter into agreements with tree planting and 
landscaping organizations.

Sec. 14. Residential energy efficiency block grant program

    This section authorizes the HUD Secretary to establish a 
residential energy efficiency block grant program. Grants will 
be given to states, cities, counties, and Indian tribes, to 
carry-out energy efficiency improvements for single-family and 
multi-family housing that complies with the International 
Energy Conservation Code standards. The formula used for 
distribution will be the same as the community development 
block grant. Grantees are required to prepare a statement of 
energy-efficiency objectives and projected use of funds for the 
HUD Secretary. Grantees must also meet nondiscrimination 
standards and Davis-Bacon laws.

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

    This section amends the Cranston-Gonzalez National 
Affordability Act to encourage greater energy efficiency and 
use of renewable energy sources in single-family and multi-
family housing as part of a jurisdiction's strategies. The 
strategies suggest increased conservation, recycling, reuse of 
resources and more effective use of existing infrastructure.

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

    This section authorizes the HUD Secretary to provide grants 
to nonprofit organizations to train, educate, and advise 
eligible community development organizations in effective 
design strategies to maximize the energy efficiency of existing 
infrastructure in affordable housing and low income 
communities. Loans and grants may also be used to carry out 
energy efficiency improvements that comply with the standards 
set forth in the bill. Applications and matching requirements 
will exist prior to distribution of the funds.

Sec. 17. HOPE VI green developments

    This section establishes new requirements for HOPE VI 
construction projects. Specifically, the bill requires that new 
HOPE VI construction must comply with the mandatory items in 
the national Green Communities criteria. For non-mandatory 
items on the checklist, points must be accumulated (25 points 
for new construction and 20 points for rehab). The Secretary is 
authorized to identify rating systems and levels for green 
buildings that will encourage a comprehensive and 
environmentally sound approach. The systems and levels must 
meet certain criteria for green building, public comment, and 
verification.

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

    This section authorizes banking regulators to develop 
consistent guidelines for lenders and underwriters to ensure 
that renewable energy sources or energy-conserving improvements 
are accounted for in appraisals. This bill also elevates 
appraiser qualifications to require that any real property with 
energy efficiency features be appraised by a State Certified 
appraiser who has met higher minimum education, experience and 
testing requirements.

Sec. 19. Housing assistance council

    This section requires the Housing Assistance Council to 
encourage entities that use federal assistance from the Council 
to develop or assist structures and buildings to comply with 
the 2009 International Energy Conservation Code standards. This 
section also requires the Council to establish incentives to 
encourage entities that receive federal assistance from the 
Council to meet such standards.

Sec. 20. Rural housing and economic development assistance

    This section provides incentives to tribes, agencies, 
organizations, and corporations receiving any assistance from 
HUD's Office of Rural Housing and Economic Development to 
assist in the compliance of the energy efficiency requirements 
under the bill.

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

    This section establishes an alternative energy sources 
revolving fund in the Department of Treasury. The fund will 
provide loans to states and Indian tribes, which in turn will 
provide assistance to owners of single-family and multi-family 
housing to provide renewable energy sources and energy 
efficiency improvements and features.

Sec. 22. GAO report on availability of affordable mortgages

    This section directs the Comptroller General to submit a 
report to Congress on how the amendments made by this Act have 
directly or indirectly resulted in consequences that limit the 
availability or affordability of mortgages in any area.

Sec. 23. Public housing energy cost report

    This section authorizes the HUD Secretary to collect 
information from each public housing agency regarding the 
energy costs for the housing administered by the agency. The 
information will include the monthly energy costs and such 
information the Secretary determines is appropriate.

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

    This section authorizes the HUD Secretary to insure loans 
made by qualified energy lenders to homebuilders, renewable 
energy installers or manufacturers, public or private 
corporations or partnerships, associations, trusts, or other 
qualified persons or entities, to finance the acquisition of 
renewable energy systems for lease to homeowners for use at 
their residences.

Sec. 25. Green guarantees

    This section authorizes the HUD Secretary to make 
commitments to guarantee the repayment of a portion of the 
principal obligations of mortgages that are used to finance 
eligible sustainable building elements. Eligible mortgages 
shall be made for the construction of single or multi-family 
housing.

Sec. 26. Green divided program for Federally assisted rental housing

    This section authorizes the HUD Secretary to establish a 
program to provide green dividends to owners of federally 
assisted housing projects to undertake energy, water, and 
utility cost-saving measures that result in utility cost 
savings.

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

    This section authorizes the HUD Secretary to study whether 
residual receipts may be used to undertake activities related 
to energy efficiency and to revise its policies with respect to 
the use of reserve for replacement funds to encourage the use 
of such reserves, where practicable, for energy efficiency.

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

    This section directs the GAO Comptroller General to 
undertake a six-month study to determine to what extent 
provisions of state and local building codes create obstacles 
or otherwise conflict with efforts to enable and encourage the 
construction and installation of distributive energy generation 
measures and water efficiency measures.

Sec. 29. Community building code administrative grants

    This section authorizes the HUD Secretary to establish a 
competitive, matching grant program to provide incentives to 
local governments to update and enforce local building codes.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

NATIONAL HOUSING ACT

           *       *       *       *       *       *       *

TITLE V--MISCELLANEOUS

           *       *       *       *       *       *       *

                       MINIMUM PROPERTY STANDARDS

  Sec. 526. (a)(1) To the maximum extent feasible, the 
Secretary of Housing and Urban Development shall promote the 
use of energy saving techniques through minimum property 
standards established by him for newly constructed residential 
housing[, other than manufactured homes,] subject to mortgages 
insured under this Act. Such standards shall establish energy 
performance requirements that will achieve a significant 
increase in the energy efficiency of new construction. Such 
requirements shall be implemented as soon as practicable after 
the date of enactment of this sentence. Following the effective 
date of this sentence, the energy performance requirements 
developed and established by the Secretary under this 
subsection for newly constructed residential housing[, other 
than manufactured homes,] shall be at least as effective in 
performance as the energy performance requirements incorporated 
in the minimum property standards that were in effect under 
this subsection on September 30, 1982. The energy performance 
requirements developed and established by the Secretary under 
this section for manufactured homes shall require Energy Star 
rating for wall fixtures, appliances, and equipment in such 
housing.
  (2) The Secretary shall require, with respect to any mortgage 
for manufactured housing insured under this Act, that any 
approval or certification of the housing for meeting any energy 
efficiency or conservation criteria, standards, or requirements 
pursuant to this title and any approval or certification 
required pursuant to this title with respect to energy-
conserving improvements or any renewable energy sources, such 
as wind, solar energy geothermal, or biomass, shall be 
conducted only by an individual certified by a home energy 
rating system provider who has been accredited to conduct such 
ratings by the Home Energy Ratings System Council, the 
Residential Energy Services Network, or such other appropriate 
national organization, as the Secretary may provide, or by 
licensed professional architect or engineer. If any 
organization makes a request to the Secretary for approval to 
accredit individuals to conduct energy efficiency or 
conservation ratings, the Secretary shall review and approve or 
disapprove such request not later than the expiration of the 6-
month period beginning upon receipt of such request.
  (3) The Secretary shall periodically examine the method used 
to conduct inspections for compliance with the requirements 
under this section, analyze various other approaches for 
conducting such inspections, and review the costs and benefits 
of the current method compared with other methods.
  (b) The Secretary may require that each property[, other than 
a manufactured home,] subject to a mortgage insured under this 
Act shall, with respect to health and safety, comply with one 
of the nationally recognized model building codes, or with a 
State or local building code based on one of the nationally 
recognized model building codes or their equivalent. The 
Secretary shall be responsible for determining the 
comparability of the State and local codes to such model codes 
and for selecting for compliance purposes an appropriate 
nationally recognized model building code where no such model 
code has been duly adopted or where the Secretary determines 
the adopted code is not comparable.

           *       *       *       *       *       *       *

   INFORMATION REGARDING EARLY DEFAULTS AND FORECLOSURES ON INSURED 
                               MORTGAGES

  Sec. 540. (a) * * *
  (b) Contents.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) With respect to each collection period that 
        commences after December 31, 2011, the total number of 
        mortgages on single-family housing meeting the energy 
        efficiency standards under section 4(a) of the Green 
        Resources for Energy Efficient Neighborhoods Act of 
        2010 that are insured by the Secretary during the 
        applicable collection period, the number of defaults 
        and foreclosures occurring on such mortgages during 
        such period, the percentage of the total of such 
        mortgages insured during such period on which defaults 
        and foreclosure occurred, and the rate for such period 
        of defaults and foreclosures on such mortgages compared 
        to the overall rate for such period of defaults and 
        foreclosures on mortgages for single-family housing 
        insured under this Act by the Secretary.
          (4) With respect to each collection period that 
        commences after December 31, 2011, the total number of 
        loans guaranteed under section 184 of the Housing and 
        Community Development Act of 1992 (12 U.S.C. 1715z-13a) 
        on single-family housing meeting the energy efficiency 
        standards under section 4(a) of the Green Resources for 
        Energy Efficient Neighborhoods Act of 2010 that are 
        guaranteed by the Secretary during the applicable 
        collection period, the number of defaults and 
        foreclosures occurring on such loans during such 
        period, the percentage of the total of such loans 
        guaranteed during such period on which defaults and 
        foreclosure occurred, and the rate for such period of 
        defaults and foreclosures on such loans compared to the 
        overall rate for such period of defaults and 
        foreclosures on loans for single-family housing 
        guaranteed under such section 184 by the Secretary.
          (5) With respect to each collection period that 
        commences after December 31, 2011, the total number of 
        loans guaranteed under section 184A of the Housing and 
        Community Development Act of 1992 (12 U.S.C. 1715z-13b) 
        on single-family housing meeting the energy efficiency 
        standards under section 4(a) of the Green Resources for 
        Energy Efficient Neighborhoods Act of 2010 that are 
        guaranteed by the Secretary during the applicable 
        collection period, the number of defaults and 
        foreclosures occurring on such loans during such 
        period, the percentage of the total of such loans 
        guaranteed during such period on which defaults and 
        foreclosure occurred, and the rate for such period of 
        defaults and foreclosures on such loans compared to the 
        overall rate for such period of defaults and 
        foreclosures on loans for single-family housing 
        guaranteed under such section 184A by the Secretary.

           *       *       *       *       *       *       *

SEC. 543. CONSIDERATION OF ENERGY EFFICIENCY.

  (a) Underwriting Standards.--The Secretary shall establish a 
method to consider, in its underwriting standards for mortgages 
on single-family housing meeting the energy efficiency 
standards under section 4(a) of the Green Resources for Energy 
Efficient Neighborhoods Act of 2010 that are insured under this 
Act, the impact that savings on utility costs has on the income 
of the mortgagor.
  (b) Goal.--It is the sense of the Congress that, in carrying 
out this Act, the Secretary should endeavor to insure mortgages 
on single-family housing meeting the energy efficiency 
standards under section 4(a) of the Green Resources for Energy 
Efficient Neighborhoods Act of 2010 such that at least 50,000 
such mortgages are insured during the period beginning upon the 
date of the enactment of such Act and ending on December 31, 
2012.

           *       *       *       *       *       *       *

                              ----------                              

             HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1992

TITLE I--HOUSING ASSISTANCE

           *       *       *       *       *       *       *

Subtitle E--Homeownership Programs

           *       *       *       *       *       *       *

SEC. 184. LOAN GUARANTEES FOR INDIAN HOUSING.

  (a)* * *

           *       *       *       *       *       *       *

  (l) Consideration of Energy Efficiency.--The Secretary shall 
establish a method to consider, in its underwriting standards 
for loans for single-family housing meeting the energy 
efficiency standards under section 4(a) of the Green Resources 
for Energy Efficient Neighborhoods Act of 2010 that are 
guaranteed under this section, the impact that savings on 
utility costs has on the income of the borrower.
  [(l)] (m) Definitions.--For purposes of this section:
          (1) * * *

           *       *       *       *       *       *       *

SEC. 184A. LOAN GUARANTEES FOR NATIVE HAWAIIAN HOUSING.

  (a) * * *

           *       *       *       *       *       *       *

  (m) Energy-Efficient Housing Requirement.--The Secretary 
shall establish a method to consider, in its underwriting 
standards for loans for single-family housing meeting the 
energy efficiency standards under section 4(a) of the Green 
Resources for Energy Efficient Neighborhoods Act of 2010 that 
are guaranteed under this section, the impact that savings on 
utility costs has on the income of the borrower.

           *       *       *       *       *       *       *

                              ----------                              

              SECTION 106 OF THE ENERGY POLICY ACT OF 1992

SEC. 106. ENERGY EFFICIENT MORTGAGES PILOT PROGRAM.

  (a) * * *

           *       *       *       *       *       *       *

  (g) Education and Outreach Campaign.--
          (1) Development of energy- and location-efficient 
        mortgages outreach program.--
                  (A) Commission.--The Secretary, in 
                consultation and coordination with the 
                Secretary of Energy, the Secretary of 
                Education, the Secretary of Agriculture, and 
                the Administrator of the Environmental 
                Protection Agency, shall establish a commission 
                to develop and recommend model mortgage 
                products and underwriting guidelines that 
                provide market-based incentives to prospective 
                home buyers, lenders, and sellers to 
                incorporate energy efficiency upgrades and 
                location efficiencies in new mortgage loan 
                transactions.
                  (B) Report.--Not later than 24 months after 
                the date of the enactment of this Act, the 
                Secretary shall provide a written report to the 
                Congress on the results of work of the 
                commission established pursuant to subparagraph 
                (A) and that identifies model mortgage products 
                and underwriting guidelines that may encourage 
                energy and location efficiency.
          (2) Implementation.--After submission of the report 
        under paragraph (1)(B), the Secretary, in consultation 
        and coordination with the Secretary of Energy, the 
        Secretary of Education, and the Administrator of the 
        Environmental Protection Agency, shall carry out a 
        public awareness, education, and outreach campaign 
        based on the findings of the commission established 
        pursuant to paragraph (1) to inform and educate 
        residential lenders and prospective borrowers regarding 
        the availability, benefits, advantages, and terms of 
        energy-efficient mortgages and location-efficient 
        mortgages made available pursuant to this section, 
        energy-efficient and location-efficient mortgages (as 
        such terms are defined in section 2 of the GREEN Act of 
        2010), and other mortgages, including mortgages for 
        multifamily housing, that have energy improvement 
        features or location efficiency features and to 
        publicize such availability, benefits, advantages, and 
        terms. Such actions may include entering into a 
        contract with an appropriate entity to publicize and 
        market such mortgages through appropriate media.
          (3) Renewable energy home product expos.--The 
        Congress hereby encourages the Secretary of Housing and 
        Urban Development to work with appropriate entities to 
        organize and hold renewable energy expositions that 
        provide an opportunity for the public to view and learn 
        about renewable energy products for the home that are 
        currently on the market.
          (4) Authorization of appropriations.--There is 
        authorized to be appropriated to the Secretary to carry 
        out this subsection $5,000,000 for each of fiscal years 
        2010 through 2014.

           *       *       *       *       *       *       *

                              ----------                              

        SECTION 304 OF THE HOME MORTGAGE DISCLOSURE ACT OF 1975

              MAINTENANCE OF RECORDS AND PUBLIC DISCLOSURE

  Sec. 304. (a) * * *
  (b) Any item of information relating to mortgage loans 
required to be maintained under subsection (a) shall be further 
itemized in order to disclose for each such item--
          (1) * * *

           *       *       *       *       *       *       *

          (3) the number and dollar amount of home improvement 
        loans; [and]
          (4) the number and dollar amount of mortgage loans 
        and completed applications involving mortgagors or 
        mortgage applicants grouped according to census tract, 
        income level, racial characteristics, and gender[.];
          (5) the number and dollar amount of mortgage loans 
        for single-family housing and for multifamily housing 
        that are energy-efficient mortgages (as such term is 
        defined in section 2 of the GREEN Act of 2010); and
          (6) the number and dollar amount of mortgage loans 
        for single-family housing and for multifamily housing 
        that are location-efficient mortgages (as such term is 
        defined in section 2 of the GREEN Act of 2010).

           *       *       *       *       *       *       *

                              ----------                              

             HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974

TITLE I--COMMUNITY DEVELOPMENT

           *       *       *       *       *       *       *

SEC. 123. RESIDENTIAL ENERGY EFFICIENCY BLOCK GRANT PROGRAM.

  (a) In General.--To the extent amounts are made available for 
grants under this section, the Secretary shall make grants 
under this section to States, metropolitan cities and urban 
counties, Indian tribes, and insular areas to carry out energy 
efficiency improvements in new and existing single-family and 
multifamily housing.
  (b) Allocations.--
          (1) In general.--Of the total amount made available 
        for each fiscal year for grants under this section that 
        remains after reserving amounts pursuant to paragraph 
        (2), the Secretary shall allocate for insular areas, 
        for metropolitan cities and urban counties, and for 
        States, an amount that bears the same ratio to such 
        total amount as the amount allocated for such fiscal 
        year under section 106 for Indian tribes, for insular 
        areas, for metropolitan cities and urban counties, and 
        for States, respectively, bears to the total amount 
        made available for such fiscal year for grants under 
        section 106.
          (2) Set aside for indian tribes.--Of the total amount 
        made available for each fiscal year for grants under 
        this section, the Secretary shall allocate not less 
        than 1 percent to Indian tribes.
  (c) Grant Amounts.--
          (1) Entitlement communities.--From the amounts 
        allocated pursuant to subsection (b) for metropolitan 
        cities and urban counties for each fiscal year, the 
        Secretary shall make a grant for such fiscal year to 
        each metropolitan city and urban county that complies 
        with the requirement under subsection (d), in the 
        amount that bears the same ratio such total amount so 
        allocated as the amount of the grant for such fiscal 
        year under section 106 for such metropolitan city or 
        urban county bears to the aggregate amount of all 
        grants for such fiscal year under section 106 for all 
        metropolitan cities and urban counties.
          (2) States.--From the amounts allocated pursuant to 
        subsection (b) for States for each fiscal year, the 
        Secretary shall make a grant for such fiscal year to 
        each State that complies with the requirement under 
        subsection (d), in the amount that bears the same ratio 
        such total amount so allocated as the amount of the 
        grant for such fiscal year under section 106 for such 
        State bears to the aggregate amount of all grants for 
        such fiscal year under section 106 for all States. 
        Grant amounts received by a State shall be used only 
        for eligible activities under subsection (e) carried 
        out in nonentitlement areas of the State.
          (3) Indian tribes.--From the amounts allocated 
        pursuant to subsection (b) for Indian tribes, the 
        Secretary shall make grants to Indian tribes that 
        comply with the requirement under subsection (d) on the 
        basis of a competition conducted pursuant to specific 
        criteria, as the Secretary shall establish by 
        regulation, for the selection of Indian tribes to 
        receive such amount.
          (4) Insular areas.--From the amounts allocated 
        pursuant to subsection (b) for insular areas, the 
        Secretary shall make a grant to each insular area that 
        complies with the requirement under subsection (d) on 
        the basis of the ratio of the population of the insular 
        area to the aggregate population of all insular areas. 
        In determining the distribution of amounts to insular 
        areas, the Secretary may also include other statistical 
        criteria as data become available from the Bureau of 
        Census of the Department of Labor, but only if such 
        criteria are set forth by regulation issued after 
        notice and an opportunity for comment.
  (d) Statement of Activities.--
          (1) Requirement.--Before receipt the receipt in any 
        fiscal year of a grant under subsection (c) by any 
        grantee, the grantee shall have prepared a final 
        statement of housing energy efficiency objectives and 
        projected use of funds as the Secretary shall require 
        and shall have provided the Secretary with such 
        certifications regarding such objectives and use as the 
        Secretary may require. In the case of metropolitan 
        cities, urban counties, units of general local 
        government, and insular areas receiving grants, the 
        statement of projected use of funds shall consist of 
        proposed housing energy efficiency activities. In the 
        case of States receiving grants, the statement of 
        projected use of funds shall consist of the method by 
        which the States will distribute funds to units of 
        general local government.
          (2) Public participation.--The Secretary may 
        establish requirements to ensure the public 
        availability of information regarding projected use of 
        grant amounts and public participation in determining 
        such projected use.
  (e) Eligible Activities.--
          (1) Requirement.--Amounts from a grant under this 
        section may be used only to carry out activities for 
        single-family or multifamily housing that are designed 
        to improve the energy efficiency of the housing so that 
        the housing complies with the energy efficiency 
        standards under section 4(a) of the Green Resources for 
        Energy Efficient Neighborhoods Act of 2010, including 
        such activities to provide energy for such housing from 
        renewable sources, such as wind, waves, solar, biomass, 
        and geothermal sources.
          (2) Preference for compliance beyond basic 
        requirements.--In selecting activities to be funded 
        with amounts from a grant under this section, a grantee 
        shall give more preference to activities based on the 
        extent to which the activities will result in 
        compliance by the housing with the enhanced energy 
        efficiency and conservation standards, and the green 
        building standards, under section 4(b) of such Act.
  (f) Reports.--Each grantee of a grant under this section for 
a fiscal year shall submit to the Secretary, at a time 
determined by the Secretary, a performance and evaluation 
report concerning the use of grant amounts, which shall contain 
an assessment by the grantee of the relationship of such use to 
the objectives identified in the grantees statement under 
subsection (d).
  (g) Applicability of CDBG Provisions.--Sections 109, 110, and 
111 of the Housing and Community Development Act of 1974 (42 
U.S.C. 5309, 5310, 5311) shall apply to assistance received 
under this section to the same extent and in the same manner 
that such sections apply to assistance received under title I 
of such Act.
  (h) Authorization of Appropriations.--There is authorized to 
be appropriated for grants under this section $2,500,000,000 
for fiscal year 2010 and such sums as may be necessary for each 
fiscal year thereafter.

           *       *       *       *       *       *       *

                              ----------                              

  SECTION 105 OF THE CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT

SEC. 105. STATE AND LOCAL HOUSING STRATEGIES.

  (a) * * *
  (b) Contents.--A housing strategy submitted under this 
section shall be in a form that the Secretary determines to be 
appropriate for the assistance the jurisdiction may be provided 
and shall--
          (1) * * *

           *       *       *       *       *       *       *

          (19) for any housing strategy submitted for fiscal 
        year 1994 or any fiscal year thereafter and taking into 
        consideration factors over which the jurisdiction has 
        control, describe the jurisdiction's goals, programs, 
        and policies for reducing the number of households with 
        incomes below the poverty line (as defined by the 
        Office of Management and Budget and revised annually), 
        and, in consultation with other appropriate public and 
        private agencies, state how the jurisdiction's goals, 
        programs, and policies for producing and preserving 
        affordable housing set forth in the housing strategy 
        will be coordinated with other programs and services 
        for which the jurisdiction is responsible and the 
        extent to which they will reduce (or assist in 
        reducing) the number of households with incomes below 
        the poverty line; [and]
          (20) describe the jurisdictions activities to enhance 
        coordination between public and assisted housing 
        providers and private and governmental health, mental 
        health, and service agencies[.]; and
          (21) describe the jurisdiction's strategies to 
        encourage sustainable development for affordable 
        housing, including single-family and multifamily 
        housing, as measured by--
                  (A) greater energy efficiency and use of 
                renewable energy sources, including any 
                strategies regarding compliance with the energy 
                efficiency standards under section 4(a) of the 
                Green Resources for Energy Efficient 
                Neighborhoods Act of 2010 and with the enhanced 
                energy efficiency and conservation standards, 
                and the green building standards, under section 
                4(b) of such Act;
                  (B) increased conservation, recycling, and 
                reuse of resources;
                  (C) more effective use of existing 
                infrastructure;
                  (D) use of building materials and methods 
                that are healthier for residents of the 
                housing, including use of building materials 
                that are free of added known carcinogens that 
                are classified as Group 1 Known Carcinogens by 
                the International Agency for Research on 
                Cancer; and
                  (E) such other criteria as the Secretary 
                determines, in consultation with the Secretary 
                of Energy, the Secretary of Agriculture, and 
                the Administrator of the Environmental 
                Protection Agency, are in accordance with the 
                purposes of this paragraph; and
          (22) describe the jurisdiction's efforts to 
        coordinate its housing strategy with its transportation 
        planning strategies to ensure to the extent practicable 
        that residents of affordable housing have access to 
        public transportation.

           *       *       *       *       *       *       *

                              ----------                              

          SECTION 24 OF THE UNITED STATES HOUSING ACT OF 1937

SEC. 24. DEMOLITION, SITE REVITALIZATION, REPLACEMENT HOUSING, AND 
                    TENANT-BASED ASSISTANCE GRANTS FOR PROJECTS.

  (a) * * *

           *       *       *       *       *       *       *

  (e) Application and Selection.--
          (1) * * *
          (2) Selection criteria.--The Secretary shall 
        establish criteria for the award of grants under this 
        section and shall include among the factors--
                  (A) * * *

           *       *       *       *       *       *       *

                  (K) the extent to which the plan gives to 
                existing residents priority for occupancy in 
                dwelling units which are public housing 
                dwelling units, or for residents who can afford 
                to live in other units, priority for those 
                units in the revitalized community; [and]
                  (L) the extent to which the proposed 
                revitalization plan--
                          (i) in the case of residential 
                        construction, complies with the 
                        nonmandatory items of the national 
                        Green Communities criteria identified 
                        in paragraph (4)(A)(i), or any 
                        substantially equivalent standard or 
                        standards as determined by the 
                        Secretary, but only to the extent such 
                        compliance exceeds the compliance 
                        necessary to accumulate the number of 
                        points required under such paragraph; 
                        and
                          (ii) in the case of nonresidential 
                        construction, complies with the 
                        components of the green building rating 
                        systems and levels identified by the 
                        Secretary pursuant to paragraph (4)(C), 
                        but only to the extent such compliance 
                        exceeds the minimum level required 
                        under such systems and levels; and
                  [(L)] (M) such other factors as the Secretary 
                considers appropriate.

           *       *       *       *       *       *       *

          (4) Green developments requirement.--
                  (A) Requirement.--The Secretary may not make 
                a grant under this section to an applicant 
                unless the proposed revitalization plan of the 
                applicant to be carried out with such grant 
                amounts meets the following requirements:
                          (i) Green communities criteria.--All 
                        residential construction under the 
                        proposed plan complies with the 
                        national Green Communities criteria for 
                        residential construction and 
                        rehabilitation that provides criteria 
                        for the design, development, and 
                        operation of affordable housing, as 
                        such criteria are in effect for 
                        purposes of this paragraph pursuant to 
                        subparagraph (D) at the date of the 
                        application for the grant, or any 
                        substantially equivalent standard or 
                        standards as determined by the 
                        Secretary, as follows:
                                  (I) The proposed plan shall 
                                comply with all items of the 
                                national Green Communities 
                                criteria for residential 
                                construction and rehabilitation 
                                that are identified as 
                                mandatory.
                                  (II) The proposed plan shall 
                                comply with such other 
                                nonmandatory items of such 
                                national Green Communities 
                                criteria so as to result in a 
                                cumulative number of points 
                                attributable to such 
                                nonmandatory items under such 
                                criteria of not less than--
                                          (aa) 25 points, in 
                                        the case of any 
                                        proposed plan (or 
                                        portion thereof) 
                                        consisting of new 
                                        construction; and
                                          (bb) 20 points, in 
                                        the case of any 
                                        proposed plan (or 
                                        portion thereof) 
                                        consisting of 
                                        rehabilitation.
                          (ii) Green buildings certification 
                        system.--All nonresidential 
                        construction under the proposed plan 
                        complies with all minimum required 
                        levels of the green building rating 
                        systems and levels identified by the 
                        Secretary pursuant to subparagraph (C), 
                        as such systems and levels are in 
                        effect for purposes of this paragraph 
                        pursuant to subparagraph (D) at the 
                        time of the application for the grant.
                  (B) Verification.--
                          (i) In general.--The Secretary shall 
                        verify, or provide for verification, 
                        sufficient to ensure that each proposed 
                        revitalization plan carried out with 
                        amounts from a grant under this section 
                        complies with the requirements under 
                        subparagraph (A) and that the 
                        revitalization plan is carried out in 
                        accordance with such requirements and 
                        plan.
                          (ii) Timing.--In providing for such 
                        verification, the Secretary shall 
                        establish procedures to ensure such 
                        compliance with respect to each 
                        grantee, and shall report to the 
                        Congress with respect to the compliance 
                        of each grantee, at each of the 
                        following times:
                                  (I) Not later than 6 months 
                                after execution of the grant 
                                agreement under this section 
                                for the grantee.
                                  (II) Upon completion of the 
                                revitalization plan of the 
                                grantee.
                  (C) Identification of green buildings rating 
                systems and levels.--
                          (i) In general.--For purposes of this 
                        paragraph, the Secretary shall identify 
                        rating systems and levels for green 
                        buildings that the Secretary determines 
                        to be the most likely to encourage a 
                        comprehensive and environmentally sound 
                        approach to ratings and standards for 
                        green buildings. The identification of 
                        the ratings systems and levels shall be 
                        based on the criteria specified in 
                        clause (ii), shall identify the highest 
                        levels the Secretary determines are 
                        appropriate above the minimum levels 
                        required under the systems selected. 
                        Within 90 days of the completion of 
                        each study required by clause (iii), 
                        the Secretary shall review and update 
                        the rating systems and levels, or 
                        identify alternative systems and levels 
                        for purposes of this paragraph, taking 
                        into account the conclusions of such 
                        study.
                          (ii) Criteria.--In identifying the 
                        green rating systems and levels, the 
                        Secretary shall take into 
                        consideration--
                                  (I) the ability and 
                                availability of assessors and 
                                auditors to independently 
                                verify the criteria and 
                                measurement of metrics at the 
                                scale necessary to implement 
                                this paragraph;
                                  (II) the ability of the 
                                applicable ratings system 
                                organizations to collect and 
                                reflect public comment;
                                  (III) the ability of the 
                                standards to be developed and 
                                revised through a consensus-
                                based process;
                                  (IV) An evaluation of the 
                                robustness of the criteria for 
                                a high-performance green 
                                building, which shall give 
                                credit for promoting--
                                          (aa) efficient and 
                                        sustainable use of 
                                        water, energy, and 
                                        other natural 
                                        resources;
                                          (bb) use of renewable 
                                        energy sources;
                                          (cc) improved indoor 
                                        and outdoor 
                                        environmental quality 
                                        through enhanced indoor 
                                        and outdoor air 
                                        quality, thermal 
                                        comfort, acoustics, 
                                        outdoor noise 
                                        pollution, day 
                                        lighting, pollutant 
                                        source control, 
                                        sustainable 
                                        landscaping, and use of 
                                        building system 
                                        controls and low- or 
                                        no-emission materials, 
                                        including preference 
                                        for materials with no 
                                        added carcinogens that 
                                        are classified as Group 
                                        1 Known Carcinogens by 
                                        the International 
                                        Agency for Research on 
                                        Cancer; and
                                          (dd) such other 
                                        criteria as the 
                                        Secretary determines to 
                                        be appropriate; and
                                  (V) national recognition 
                                within the building industry.
                          (iii) 5-year evaluation.--At least 
                        once every 5 years, the Secretary shall 
                        conduct a study to evaluate and compare 
                        available third-party green building 
                        rating systems and levels, taking into 
                        account the criteria listed in clause 
                        (ii).
                  (D) Applicability and updating of 
                standards.--
                          (i) Applicability.--Except as 
                        provided in clause (ii) of this 
                        subparagraph, the national Green 
                        Communities criteria and green building 
                        rating systems and levels referred to 
                        in clauses (i) and (ii) of subparagraph 
                        (A) that are in effect for purposes of 
                        this paragraph are such criteria and 
                        systems, and levels as in existence 
                        upon the date of the enactment of the 
                        Green Resources for Energy Efficient 
                        Neighborhoods Act of 2010.
                          (ii) Updating.--The Secretary may, by 
                        regulation, adopt and apply, for 
                        purposes of this paragraph, future 
                        amendments and supplements to, and 
                        editions of, the national Green 
                        Communities criteria, any standard or 
                        standards that the Secretary has 
                        determined to be substantially 
                        equivalent to such criteria, and the 
                        green building ratings systems and 
                        levels identified by the Secretary 
                        pursuant to subparagraph (C).

           *       *       *       *       *       *       *

                              ----------                              

FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT OF 1989

           *       *       *       *       *       *       *

TITLE XI--REAL ESTATE APPRAISAL REFORM AMENDMENTS

           *       *       *       *       *       *       *

SEC. 1110. FUNCTIONS OF THE FEDERAL FINANCIAL INSTITUTIONS REGULATORY 
                    AGENCIES RELATING TO APPRAISAL STANDARDS.

  Each Federal financial institutions regulatory agency and the 
Resolution Trust Corporation shall prescribe appropriate 
standards for the performance of real estate appraisals in 
connection with federally related transactions under the 
jurisdiction of each such agency or instrumentality. These 
rules shall require, at a minimum--
          (1) that real estate appraisals be performed in 
        accordance with generally accepted appraisal standards 
        as evidenced by the appraisal standards promulgated by 
        the Appraisal Standards Board of the Appraisal 
        Foundation; [and]
          (2) that such appraisals be performed in accordance 
        with appraisal standards that require, in determining 
        the value of a property, consideration of any renewable 
        energy sources for, or energy efficiency or energy-
        conserving improvements or features of, the property;
          [(2)] (3) that such appraisals shall be written 
        appraisals[.]; and
          (4) that State-certified and licensed appraisers have 
        timely access, whenever practicable, to information 
        from the lender relevant to an appraisal of the energy 
        and water efficiency or conserving improvements or 
        features of a property, such as labels or ratings of 
        buildings and installed appliances, blueprints, 
        construction costs, incentives regarding energy- and 
        water-efficient components and systems installed in a 
        property, and third-party verifications or 
        representations of energy and water efficiency 
        performance of a property, observing all financial 
        privacy requirements adhered to by certified and 
        licensed appraisers, including section 501 of the 
        Gramm-Leach-Bliley Act (15 U.S.C. 6801); unless the 
        property owner consents to the lender, an appraiser 
        shall not have access to the commercial of financial 
        information of the owner that is privileged or 
        confidential.

           *       *       *       *       *       *       *

SEC. 1113. TRANSACTIONS REQUIRING THE SERVICES OF A STATE CERTIFIED 
                    APPRAISER.

  In determining whether an appraisal in connection with a 
federally related transaction shall be performed by a State 
certified appraiser, an agency or instrumentality under this 
title shall consider whether transactions, either individually 
or collectively, are of sufficient financial or public policy 
importance to the United States that an individual who performs 
an appraisal in connection with such transactions should be a 
State certified appraiser, except that--
          (1) a State certified appraiser shall be required for 
        all federally related transactions having a value of 
        $1,000,000 or more or any real property with energy-
        efficiency or energy-conserving improvements or 
        features; and
          (2) 1-to-4 unit, single family residential appraisals 
        may be performed by State licensed appraisers unless 
        the size and complexity (such as identifying and 
        supporting the contribution to market value of energy-
        efficiency or energy-conserving improvements or 
        features) requires a State certified appraiser.

           *       *       *       *       *       *       *

                            ADDITIONAL VIEWS

    Republicans support the stated goals of H.R. 2336, which 
are to encourage energy efficiency and conservation and the 
development of renewable energy sources for housing, commercial 
structures, and other buildings, and to create sustainable 
communities. However, as in previous iterations of the bill, 
some of H.R. 2336's provisions could impede rather than 
encourage green building, making it more costly rather than 
more affordable. H.R. 2336 also authorizes billions of dollars 
in new Federal spending during a time of record debts and 
deficits. Accordingly, we believe that changes to the 
legislation are necessary before it is considered by the full 
House.
    The Congressional Budget Office (CBO) estimates that H.R. 
2336 will cost $10 billion from 2011-2015. Included in the bill 
is a $5 billion revolving loan fund to promote energy 
efficiency improvements in single and multifamily dwellings; a 
$2.5 billion Residential Energy Efficient block grant program; 
and a $5 million outreach campaign to pay for energy efficiency 
mortgage education. The legislation also includes a provision 
that sets the Federal Housing Administration (FHA) on a path to 
insure 50,000 green mortgages. FHA is already under 
considerable financial strain, with its capital reserve ratio 
near zero, and now is not the time to be placing additional 
demands on its limited resources.
    Another concern for Committee Republicans is the overall 
cost to taxpayers from promoting ``green'' lending without 
meaningful evidence from government regulators or industry 
experts as to the viability of these loans. For example, the 
Federal Housing Finance Agency (FHFA) suspended purchases of 
certain energy retrofit loans by Fannie Mae and Freddie Mac on 
July 6, 2010, citing ``the absence of robust underwriting 
standards to protect homeowners and the lack of energy retrofit 
standards to assist homeowners, appraisers, inspectors, and 
lenders [in] determine [ing] the value of retrofit products.'' 
FHFA also questioned whether certain home improvements actually 
produce meaningful reductions in energy consumption. For these 
reasons, FHFA believes these loans pose safety and soundness 
issues for the GSEs. Until these loans can be prudently and 
uniformly underwritten to the satisfaction of one arm of the 
federal government, other arms should not rush to start funding 
them. These loans must be properly valued and judged for 
volatility and environmental impact before taxpayers are 
exposed to losses from potential defaults in these new 
programs.
    Although the GREEN Act allows some flexibility, the 
standards set forth in the bill may still limit innovation in 
green building. Green building requires continuous tests of new 
practices and products in order to determine the most efficient 
and viable strategies. The constantly evolving green building 
marketplace has numerous systems currently in development that 
may be more suitable for the energy efficiency projects. More 
regionally appropriate methods can be implemented only when 
green legislation is flexibly crafted. At issue is whether the 
energy efficiency standards in the bill would impede rather 
than encourage green building, as well as whether the bill's 
massive new spending can be justified at a time of ballooning 
federal deficits.

                                   Spencer Bachus.
                                   Randy Neugebauer.
                                   J. Gresham Barrett.
                                   Shelley Moore Capito.
                                   Ron Paul.

                                  
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