I 

111TH CONGRESS 

1ST SESSION H. R. 4106 

To authorize the Secretary of Housing and Urban Development to make 

grants and loans to owners of federally assisted housing projects for 

costs of making green retrofit improvements to such projects. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 18, 2009 

Mr. HIMES (for himself, Mr. WELCH, and Mr. OLVER) 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 make grants and loans to owners of federally 

assisted housing projects for costs of making green retrofit improvements to such projects. 

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 ‘‘Green Affordable 

5 Housing Act of 2009’’. 

6 SEC. 2. GREEN RETROFIT GRANT AND LOAN PROGRAM. 

7 (a) ESTABLISHMENT.—The Secretary of Housing 

8 and Urban Development shall carry out a program to 


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1 make grants and loans under this section to owners of eli2 gible federally assisted housing projects for making eligible 

3 green retrofit improvements to such projects. 

4 (b) ELIGIBLE FEDERALLY ASSISTED HOUSING

5 PROJECTS.—Grants and loans under this section may be 

6 provided only for eligible green retrofit improvements 

7 under subsection (c) for— 

8 (1) housing for which project-based assistance 

9 is provided under section 8 of the United States 

10 Housing Act of 1937 (42 U.S.C. 1437f); 

11 (2) housing that is assisted under section 202 

12 of the Housing Act of 1959 (12 U.S.C. 1701q); 

13 (3) housing that is assisted under section 202 

14 of the Housing Act of 1959, as such section existed 

15 before the enactment of the Cranston-Gonzalez Na16 tional Affordable Housing Act (Public Law 101– 

17 625); 

18 (4) housing that is assisted under section 811 

19 of the Cranston-Gonzalez National Affordable Hous20 ing Act (42 U.S.C. 8013); 

21 (5) housing financed by a loan or mortgage in22 sured under section 221(d)(3) of the National Hous23 ing Act (12 U.S.C. 1715l(d)(3)) that bears interest 

24 at a rate determined under the proviso of section 

25 221(d)(5) of such Act (12 U.S.C. 1715l(d)(5)); 


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1 (6) housing insured, assisted, or held by the 

2 Secretary or a State or State agency under section 

3 236 of the National Housing Act (12 U.S.C. 1715z– 

4 1); 

5 (7) housing constructed or substantially reha6 bilitated pursuant to assistance provided under sec7 tion 8(b)(2) of the United States Housing Act of 

8 1937, as in effect before October 1, 1983, that is as9 sisted under a contract for assistance under such 

10 section; 

11 (8) housing assisted or formerly assisted under 

12 section 101 of the Housing and Urban Development 

13 Act of 1965 (12 U.S.C. 1701s); 

14 (9) multifamily housing projects assisted with 

15 amounts made available under the HOME Invest16 ment Partnerships Act (42 U.S.C. 12721 et seq.); 

17 (10) housing for which a loan is made or in18 sured under section 515 of the Housing Act of 1949 

19 (42 U.S.C. 1485); and 

20 (11) housing for which a low-income housing 

21 tax credit is provided pursuant to section 42 of the 

22 Internal Revenue Code of 1986 (26 U.S.C. 42). 

23 (c) ELIGIBLE GREEN RETROFIT IMPROVEMENTS.— 

24 (1) IN GENERAL.—For purposes of this section, 

25 eligible green retrofit improvements are improveVerDate Nov 24 2008 00:16 Nov 19, 2009 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4106.IH H4106

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1 ments to an eligible federally assisted housing 

2 project that are approved by the Secretary as having 

3 one or more of the following attributes, as compared 

4 with the comparable component that would normally 

5 be used by owners of similar properties in the same 

6 market area: 

7 (A) Materially lower electric, heating fuel, 

8 or water consumption. 

9 (B) Materially lower emissions of chemicals 

10 thought to be harmful to humans. 

11 (C) Materially longer useful life. 

12 (D) Materially more biodegradable. 

13 (E) Materially more easily recycled. 

14 (F) Materially lower use of raw materials 

15 or use of materially more recycled content. 

16 (G) Materially lower transportation costs 

17 of products delivered to the project. 

18 For purposes of this paragraph, determinations of 

19 materiality shall be made by the Secretary in the 

20 sole discretion of the Secretary. 

21 (2) RELATED IMPROVEMENTS.—For purposes 

22 of this section, eligible green retrofit improvements 

23 shall include improvements approved by the Sec24 retary as related or collateral to the undertaking or 

25 provision of eligible green retrofit improvements apVerDate Nov 24 2008 00:16 Nov 19, 2009 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4106.IH H4106

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1 proved pursuant to paragraph (1) for an eligible fed2 erally assisted housing project. 

3 (3) VERIFICATION.—For purposes of verifying 

4 improvements as eligible green retrofit improvements 

5 under this subsection, the Secretary shall, by regula6 tion, provide for the following: 

7 (A) Certification of building energy and 

8 environment auditors, inspectors, and raters by 

9 the Residential Energy Services Network 

10 (RESNET), or an equivalent certification sys11 tem as determined by the Secretary. 

12 (B) Certification or licensing of building 

13 energy and environmental retrofit contractors 

14 by the Building Performance Institute (BPI), 

15 or an equivalent certification or licensing sys16 tem as determined by the Secretary. 

17 (C) Use of equipment and procedures of 

18 the Building Performance Institute, Residential 

19 Energy Services Network, or other appropriate 

20 equipment and procedures (such as infrared 

21 photography and pressurized testing, and tests 

22 for water use and indoor air quality), as deter23 mined by the Secretary, to test the energy and 

24 environmental efficiency of buildings effectively. 


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1 (D) Determination of energy savings by 

2 comparison of scores on the Home Energy Rat3 ing System (HERS) Index before and after ret4 rofit, with the final score produced by an objec5 tive third party. 

6 (d) EXTENSION OF AFFORDABILITY RESTRIC7 TIONS.— 

8 (1) GRANTS.— 

9 (A) IN GENERAL.—The Secretary may 

10 provide a grant under this section for an eligi11 ble federally assisted housing project only if the 

12 owner of the project enters into such binding 

13 commitments as the Secretary shall require, 

14 which shall be applicable to any subsequent 

15 owner, to ensure that the project will be oper16 ated, until the expiration of the period specified 

17 in subparagraph (B), in accordance with all af18 fordability restrictions that are applicable to the 

19 project under the federal assistance program re20 ferred to in subsection (b) under which assist21 ance is provided for the project. 

22 (B) PERIOD.—The period specified in this 

23 paragraph for an eligible federally assisted 

24 housing project is the period that— 


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1 (i) begins upon the date of the expira2 tion of applicability, to the project, of the 

3 affordability restrictions under the federal 

4 assistance program referred to in sub5 section (b) under which assistance is pro6 vided for the project; 

7 (ii) has such duration, as determined 

8 by the Secretary, as commensurate with 

9 the amount of the loan or grant assistance 

10 provided under this section for the project; 

11 and 

12 (iii) in no case exceeds 30 years. 

13 The Secretary may make such adjustments to 

14 such period as may be necessary to take into 

15 consideration any more significant restrictions 

16 accompanying other subsidies for the project. 

17 (2) LOANS.—In providing loans under this sec18 tion for eligible federally assisted housing projects, 

19 the Secretary may require the project to comply with 

20 affordability restrictions as the Secretary may estab21 lish, the terms of which shall be commensurate with 

22 the term and amount of the loan. 

23 (e) LIMITATION ON AMOUNT.—The amount of a 

24 grant or loan under this section for an eligible federally 

25 assisted housing project may not exceed— 


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1 (1) a percentage, as determined by the Sec2 retary, of the cost of the eligible green retrofit im3 provements for the project described in the retrofit 

4 plan under subsection (f)(2) for the project; and 

5 (2) a dollar amount limitation, as the Secretary 

6 may establish. 

7 (f) APPLICATIONS.— 

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

9 for owners of eligible federally assisted housing 

10 project to submit applications to the Secretary for 

11 grants and loans under this subsection. The Sec12 retary shall require each such application to include 

13 a retrofit plan under paragraph (2). 

14 (2) RETROFIT PLAN.— 

15 (A) REQUIREMENTS.—The Secretary may 

16 not make any grant or loan under this section 

17 for any eligible green retrofit improvements for 

18 an eligible federally assisted housing project un19 less the owner of the project has submitted to 

20 the Secretary, and the Secretary has approved 

21 (pursuant to any amendments or changes as 

22 the Secretary may require), a detailed written 

23 plan regarding such improvements that com24 plies with such requirements as the Secretary 


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1 shall establish, which shall include the fol2 lowing: 

3 (i) The plan shall set forth the cur4 rent utility costs for the project, including 

5 costs for water, heat, and electricity. 

6 (ii) The plan shall describe the eligible 

7 green retrofit improvements to be made for 

8 the project, setting forth— 

9 (I) a schedule for completing 

10 each such improvement; 

11 (II) the cost of and sources of 

12 funding for each such improvement; 

13 (III) the amount of anticipated 

14 cost savings resulting from each such 

15 improvement; and 

16 (IV) a schedule for such savings 

17 for each such improvement based on 

18 the current utility costs for the project 

19 set forth pursuant to clause (i), except 

20 that such cost-savings schedule may 

21 not have a term exceeding 10 years. 

22 (B) COST-EFFICIENCY; COST SAVINGS.— 

23 The Secretary may approve a retrofit plan 

24 under this subsection only if the Secretary de25 termines that— 


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1 (i) the total present value of the cost 

2 savings resulting from the eligible green 

3 retrofit improvements specified in the plan 

4 and to be recovered over the term of the 

5 cost-savings schedule included in the plan 

6 will exceed the cost of making such im7 provements; and 

8 (ii) the eligible green retrofit improve9 ments specified in the plan will result in 

10 savings in utility or other operating costs 

11 for the eligible federally assisted housing 

12 project of not less than 20 percent, in com13 parison to utility and operating costs of 

14 such project absent the eligible green ret15 rofit improvements to be undertaken under 

16 the plan. 

17 (3) SELECTION PRIORITIES.—In selecting appli18 cations for loans and grants under this section the 

19 Secretary may— 

20 (A) give priority to applications providing 

21 for eligible green retrofit improvements that are 

22 funded in part with amounts from sources other 

23 than grants and loans under this section, and 

24 the extent of such priority provided may be 


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1 based on the ratio of such funding from other 

2 sources; and 

3 (B) give priority to applications based on 

4 the net amount of energy efficiency savings re5 sulting from the eligible green retrofit improve6 ments to be funded by such loans and grants. 

7 (g) LOANS.—In such circumstances as the Secretary 

8 may provide, the Secretary may provide assistance under 

9 this section in the form of a loan, which shall have such 

10 term to maturity, shall bear interest, and shall have such 

11 other terms and conditions as the Secretary may establish. 

12 (h) TREATMENT OF GRANT AMOUNTS.—Notwith13 standing any other provision of law, assistance amounts 

14 under this section may be treated as amounts not derived 

15 from a Federal grant. 

16 (i) MONITORING.— 

17 (1) SUBMISSION OF INFORMATION TO SEC18 RETARY.—The Secretary shall require each owner of 

19 an eligible federally assisted housing project for 

20 which a grant or loan under this section is made to 

21 submit to the Secretary such information, on a reg22 ular basis during the term of the cost savings sched23 ule included in the retrofit plan for project for which 

24 such grant or loan is made or during such other 

25 term, and in such form and manner, as the SecVerDate Nov 24 2008 00:16 Nov 19, 2009 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H4106.IH H4106

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1 retary considers appropriate to determine the cost 

2 savings resulting from the eligible green retrofit im3 provements funded with such grant or loan and to 

4 provide such other information as the Secretary con5 siders necessary. 

6 (2) OTHER MONITORING.—With respect to eli7 gible federally assisted housing projects for which el8 igible green retrofit improvements have been made 

9 with assistance under this section, the Secretary 

10 shall— 

11 (A) establish guidelines for obtaining cer12 tification of such projects, after retrofit, as En13 ergy Star buildings, for assigning Home Energy 

14 Rating System (HERS) rating for such 

15 projects, and for completing applicable building 

16 performance labels; and 

17 (B) establish processes for tracking the 

18 numbers and locations of such projects and ob19 taining information on projected and actual 

20 savings of energy and its value over time. 

21 (j) DEFINITIONS.—For purposes of this section, the 

22 following definitions shall apply: 

23 (1) AFFORDABILITY RESTRICTIONS.—The term 

24 ‘‘affordability restrictions’’ means, with respect to an 

25 eligible federally assisted housing project, limits imVerDate Nov 24 2008 00:16 Nov 19, 2009 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H4106.IH H4106

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1 posed by statute, regulation, or regulatory agree2 ment on tenant rents, rent contributions, or income 

3 eligibility. 

4 (2) COST-SAVINGS SCHEDULE.—The term 

5 ‘‘cost-savings schedule’’ means, with respect to a ret6 rofit plan for an eligible federally assisted housing 

7 project, the schedule included in such plan pursuant 

8 to subsection (f)(2)(A)(ii)(IV). 

9 (3) ELIGIBLE FEDERALLY ASSISTED HOUSING

10 PROJECT.—The term ‘‘eligible federally assisted 

11 housing project’’ means a housing project described 

12 in subsection (b). 

13 (4) RETROFIT PLAN.—The term ‘‘retrofit plan’’ 

14 means a plan required under subsection (f)(2). 

15 (5) SECRETARY.—The term ‘‘Secretary’’ means 

16 the Secretary of Housing and Urban Development. 

17 (k) AUTHORIZATION OF APPROPRIATIONS.—There is 

18 authorized to be appropriated such sums for each of fiscal 

19 years 2010 through 2014, which shall be available for— 

20 (1) grants under this section; and 

21 (2) costs (as such term in defined in section 

22 502 of the Federal Credit Reform Act of 1990 (2 

23 U.S.C. 661a) of loans under this section. 


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1 (l) REGULATIONS.—The Secretary shall issue any 

2 regulations necessary to carry out this section. 

Æ 


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