I 

114TH CONGRESS 

1ST SESSION H. R. 2997 

To authorize the Secretary of Housing and Urban Development to carry 

out a demonstration program to enter into budget-neutral, performancebased contracts for energy and water conservation improvements for 

multifamily residential units. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 9, 2015 

Mr. ROSS (for himself, Mr. CLEAVER, Mr. HIMES, and Mr. DELANEY) introduced the following bill; which was referred to the Committee on Financial Services 

A BILL 

To authorize the Secretary of Housing and Urban Development to carry out a demonstration program to enter 

into budget-neutral, performance-based contracts for energy and water conservation improvements for multifamily residential units. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Private Investment in 

5 Housing Act of 2015’’. 


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1 SEC. 2. BUDGET-NEUTRAL DEMONSTRATION PROGRAM 

2 FOR ENERGY AND WATER CONSERVATION IM3 PROVEMENTS AT MULTIFAMILY RESIDEN4 TIAL UNITS. 

5 (a) ESTABLISHMENT.—The Secretary of Housing 

6 and Urban Development (in this section referred to as the 

7 ‘‘Secretary’’) shall establish a demonstration program 

8 under which the Secretary may execute budget-neutral, 

9 performance-based agreements in fiscal years 2016 

10 through 2019 that result in a reduction in energy or water 

11 costs with such entities as the Secretary determines to be 

12 appropriate under which the entities shall carry out 

13 projects for energy or water conservation improvements at 

14 not more than 20,000 residential units in multifamily 

15 buildings participating in— 

16 (1) the project-based rental assistance program 

17 under section 8 of the United States Housing Act of 

18 1937 (42 U.S.C. 1437f), other than assistance pro19 vided under section 8(o) of that Act; 

20 (2) the supportive housing for the elderly pro21 gram under section 202 of the Housing Act of 1959 

22 (12 U.S.C. 1701q); or 

23 (3) the supportive housing for persons with dis24 abilities program under section 811(d)(2) of the 

25 Cranston-Gonzalez National Affordable Housing Act 

26 (42 U.S.C. 8013(d)(2)). 


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1 (b) REQUIREMENTS.— 

2 (1) PAYMENTS CONTINGENT ON SAVINGS.— 

3 (A) IN GENERAL.—The Secretary shall 

4 provide to an entity a payment under an agree5 ment under this section only during applicable 

6 years for which an energy or water cost savings 

7 is achieved with respect to the applicable multi8 family portfolio of properties, as determined by 

9 the Secretary, in accordance with subparagraph 

10 (B). 

11 (B) PAYMENT METHODOLOGY.— 

12 (i) IN GENERAL.—Each agreement 

13 under this section shall include a pay-for14 success provision that— 

15 (I) shall serve as a payment 

16 threshold for the term of the agree17 ment; and 

18 (II) requires that payments shall 

19 be contingent on realized cost savings 

20 associated with reduced utility con21 sumption in the participating prop22 erties. 

23 (ii) LIMITATIONS.—A payment made 

24 by the Secretary under an agreement 

25 under this section— 


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1 (I) shall be contingent on docu2 mented utility savings; and 

3 (II) shall not exceed the utility 

4 savings achieved by the date of the 

5 payment, and not previously paid, as 

6 a result of the improvements made 

7 under the agreement. 

8 (C) THIRD-PARTY VERIFICATION.—Savings 

9 payments made by the Secretary under this sec10 tion shall be based on a measurement and 

11 verification protocol that includes at least— 

12 (i) establishment of a weather-normal13 ized and occupancy-normalized utility con14 sumption baseline established pre-retrofit; 

15 (ii) annual third-party confirmation of 

16 actual utility consumption and cost for 

17 utilities; 

18 (iii) annual third-party validation of 

19 the tenant utility allowances in effect dur20 ing the applicable year and vacancy rates 

21 for each unit type; and 

22 (iv) annual third-party determination 

23 of savings to the Secretary. 

24 An agreement under this section with an entity 

25 shall provide that the entity shall cover costs 


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1 associated with third-party verification under 

2 this subparagraph. 

3 (2) TERMS OF PERFORMANCE-BASED AGREE4 MENTS.—A performance-based agreement under this 

5 section shall include— 

6 (A) the period that the agreement will be 

7 in effect and during which payments may be 

8 made, which may not be longer than 12 years; 

9 (B) the performance measures that will 

10 serve as payment thresholds during the term of 

11 the agreement; 

12 (C) an audit protocol for the properties 

13 covered by the agreement; 

14 (D) a requirement that payments shall be 

15 contingent on realized cost savings associated 

16 with reduced utility consumption in the partici17 pating properties; and 

18 (E) such other requirements and terms as 

19 determined to be appropriate by the Secretary. 

20 (3) ENTITY ELIGIBILITY.—The Secretary 

21 shall— 

22 (A) establish a competitive process for en23 tering into agreements under this section; and 


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1 (B) enter into such agreements only with 

2 entities that, either jointly or individually, dem3 onstrate significant experience relating to— 

4 (i) financing or operating properties 

5 receiving assistance under a program iden6 tified in subsection (a); 

7 (ii) oversight of energy or water con8 servation programs, including oversight of 

9 contractors; and 

10 (iii) raising capital for energy or 

11 water conservation improvements from 

12 charitable organizations or private inves13 tors. 

14 (4) GEOGRAPHICAL DIVERSITY.—Each agree15 ment entered into under this section shall provide 

16 for the inclusion of properties with the greatest fea17 sible regional and State variance. 

18 (5) PROPERTIES.—A property may only be in19 cluded in the demonstration under this section only 

20 if the property is subject to affordability restrictions 

21 for at least 15 years after the date of the completion 

22 of any conservation improvements made to the prop23 erty under the demonstration program. Such restric24 tions may be made through an extended affordability 

25 agreement for the property under a new housing asVerDate Sep 11 2014 01:00 Jul 11, 2015 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H2997.IH H2997

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1 sistance payments contract with the Secretary of 

2 Housing and Urban Development or through an en3 forceable covenant with the owner of the property. 

4 (c) PLAN AND REPORTS.— 

5 (1) PLAN.—Not later than 90 days after the 

6 date of enactment of this Act, the Secretary shall 

7 submit to the Committees on Appropriations and Fi8 nancial Services of the House of Representatives and 

9 the Committees on Appropriations and Banking, 

10 Housing, and Urban Affairs of the Senate a detailed 

11 plan for the implementation of this section. 

12 (2) REPORTS.—Not later than 1 year after the 

13 date of enactment of this Act, and annually there14 after, the Secretary shall— 

15 (A) conduct an evaluation of the program 

16 under this section; and 

17 (B) submit to Congress a report describing 

18 each evaluation conducted under subparagraph 

19 (A). 

20 (d) FUNDING.—For each fiscal year during which an 

21 agreement under this section is in effect, the Secretary 

22 may use to carry out this section any funds appropriated 

23 to the Secretary for the renewal of contracts under a pro24 gram described in subsection (a). 

Æ 


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