114TH CONGRESS 

1ST SESSION H. R. 2997 

AN ACT 

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, 
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1 SECTION 1. SHORT TITLE. 

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

3 Housing Act of 2015’’. 

4 SEC. 2. BUDGET-NEUTRAL DEMONSTRATION PROGRAM 

5 FOR ENERGY AND WATER CONSERVATION IM6 PROVEMENTS AT MULTIFAMILY RESIDEN7 TIAL UNITS. 

8 (a) ESTABLISHMENT.—The Secretary of Housing 

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

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

11 under which the Secretary may execute budget-neutral, 

12 performance-based agreements in fiscal years 2016 

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

14 costs with such entities as the Secretary determines to be 

15 appropriate under which the entities shall carry out 

16 projects for energy or water conservation improvements at 

17 not more than 20,000 residential units in multifamily 

18 buildings participating in— 

19 (1) the project-based rental assistance program 

20 under section 8 of the United States Housing Act of 

21 1937 (42 U.S.C. 1437f), other than assistance pro22 vided under section 8(o) of that Act; 

23 (2) the supportive housing for the elderly pro24 gram under section 202 of the Housing Act of 1959 

25 (12 U.S.C. 1701q); or 
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1 (3) the supportive housing for persons with dis2 abilities program under section 811(d)(2) of the 

3 Cranston-Gonzalez National Affordable Housing Act 

4 (42 U.S.C. 8013(d)(2)). 

5 (b) REQUIREMENTS.— 

6 (1) PAYMENTS CONTINGENT ON SAVINGS.— 

7 (A) IN GENERAL.—The Secretary shall 

8 provide to an entity a payment under an agree9 ment under this section only during applicable 

10 years for which an energy or water cost savings 

11 is achieved with respect to the applicable multi12 family portfolio of properties, as determined by 

13 the Secretary, in accordance with subparagraph 

14 (B). 

15 (B) PAYMENT METHODOLOGY.— 

16 (i) IN GENERAL.—Each agreement 

17 under this section shall include a pay-for18 success provision that— 

19 (I) shall serve as a payment 

20 threshold for the term of the agree21 ment; and 

22 (II) requires that payments shall 

23 be contingent on realized cost savings 

24 associated with reduced utility con-
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1 sumption in the participating prop2 erties. 

3 (ii) LIMITATIONS.—A payment made 

4 by the Secretary under an agreement 

5 under this section— 

6 (I) shall be contingent on docu7 mented utility savings; and 

8 (II) shall not exceed the utility 

9 savings achieved by the date of the 

10 payment, and not previously paid, as 

11 a result of the improvements made 

12 under the agreement. 

13 (C) THIRD-PARTY VERIFICATION.—Savings 

14 payments made by the Secretary under this sec15 tion shall be based on a measurement and 

16 verification protocol that includes at least— 

17 (i) establishment of a weather-normal18 ized and occupancy-normalized utility con19 sumption baseline established pre-retrofit; 

20 (ii) annual third-party confirmation of 

21 actual utility consumption and cost for 

22 utilities; 

23 (iii) annual third-party validation of 

24 the tenant utility allowances in effect dur-
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1 ing the applicable year and vacancy rates 

2 for each unit type; and 

3 (iv) annual third-party determination 

4 of savings to the Secretary. 

5 An agreement under this section with an entity 

6 shall provide that the entity shall cover costs 

7 associated with third-party verification under 

8 this subparagraph. 

9 (2) TERMS OF PERFORMANCE-BASED AGREE10 MENTS.—A performance-based agreement under this 

11 section shall include— 

12 (A) the period that the agreement will be 

13 in effect and during which payments may be 

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

15 (B) the performance measures that will 

16 serve as payment thresholds during the term of 

17 the agreement; 

18 (C) an audit protocol for the properties 

19 covered by the agreement; 

20 (D) a requirement that payments shall be 

21 contingent on realized cost savings associated 

22 with reduced utility consumption in the partici23 pating properties; and 

24 (E) such other requirements and terms as 

25 determined to be appropriate by the Secretary. 
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1 (3) ENTITY ELIGIBILITY.—The Secretary 

2 shall— 

3 (A) establish a competitive process for en4 tering into agreements under this section; and 

5 (B) enter into such agreements only with 

6 entities that, either jointly or individually, dem7 onstrate significant experience relating to— 

8 (i) financing or operating properties 

9 receiving assistance under a program iden10 tified in subsection (a); 

11 (ii) oversight of energy or water con12 servation programs, including oversight of 

13 contractors; and 

14 (iii) raising capital for energy or 

15 water conservation improvements from 

16 charitable organizations or private inves17 tors. 

18 (4) GEOGRAPHICAL DIVERSITY.—Each agree19 ment entered into under this section shall provide 

20 for the inclusion of properties with the greatest fea21 sible regional and State variance. 

22 (5) PROPERTIES.—A property may only be in23 cluded in the demonstration under this section only 

24 if the property is subject to affordability restrictions 

25 for at least 15 years after the date of the completion 
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1 of any conservation improvements made to the prop2 erty under the demonstration program. Such restric3 tions may be made through an extended affordability 

4 agreement for the property under a new housing as5 sistance payments contract with the Secretary of 

6 Housing and Urban Development or through an en7 forceable covenant with the owner of the property. 

8 (c) PLAN AND REPORTS.— 

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

10 date of enactment of this Act, the Secretary shall 

11 submit to the Committees on Appropriations and Fi12 nancial Services of the House of Representatives and 

13 the Committees on Appropriations and Banking, 

14 Housing, and Urban Affairs of the Senate a detailed 

15 plan for the implementation of this section. 

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

17 date of enactment of this Act, and annually there18 after, the Secretary shall— 

19 (A) conduct an evaluation of the program 

20 under this section; and 

21 (B) submit to Congress a report describing 

22 each evaluation conducted under subparagraph 

23 (A). 

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

25 agreement under this section is in effect, the Secretary 
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1 may use to carry out this section any funds appropriated 

2 to the Secretary for the renewal of contracts under a pro3 gram described in subsection (a). 

Passed the House of Representatives July 14, 2015. 

Attest: 

Clerk. 

114TH CONGRESS 

1ST SESSION H. R. 2997 

AN ACT 

To authorize the Secretary of Housing and Urban 

units. tion improvements for multifamily residential based contracts for energy and water conservagram to enter into budget-neutral, performanceDevelopment to carry out a demonstration pro-