I 

113TH CONGRESS 

2D SESSION H. R. 5104 

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 14, 2014 

Mr. ROSS (for himself, Mr. HIMES, Mr. DELANEY, Mr. DUFFY, Mr. CLEAVER, 

and Mrs. WAGNER) 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 ‘‘Pay For Success Af5 fordable Housing Energy Modernization Act of 2014’’. 


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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 (referred to in this section as the 

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

8 under which, during the period beginning on the date of 

9 enactment of this Act, and ending on September 30, 2017, 

10 the Secretary may enter into budget-neutral, performance11 based agreements that result in a reduction in energy or 

12 water costs with such entities as the Secretary determines 

13 to be appropriate under which the entities shall carry out 

14 projects for energy or water conservation improvements at 

15 not more than 20,000 residential units in multifamily 

16 buildings participating in— 

17 (1) the project-based rental assistance program 

18 under section 8 of the United States Housing Act of 

19 1937 (42 U.S.C. 1437f), other than assistance pro20 vided under section 8(o) of that Act; 

21 (2) the supportive housing for the elderly pro22 gram under section 202 of the Housing Act of 1959 

23 (12 U.S.C. 1701q); or 

24 (3) the supportive housing for persons with dis25 abilities program under section 811(d)(2) of the 


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1 Cranston-Gonzalez National Affordable Housing Act 

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

3 (b) REQUIREMENTS.— 

4 (1) PAYMENTS CONTINGENT ON SAVINGS.— 

5 (A) IN GENERAL.—The Secretary shall 

6 provide to an entity a payment under an agree7 ment under this section only during applicable 

8 years for which an energy or water cost savings 

9 is achieved with respect to the applicable multi10 family portfolio of properties, as determined by 

11 the Secretary, in accordance with subparagraph 

12 (B). 

13 (B) PAYMENT METHODOLOGY.— 

14 (i) IN GENERAL.—Each agreement 

15 under this section shall include a pay-for16 success provision— 

17 (I) that will serve as a payment 

18 threshold for the term of the agree19 ment; and 

20 (II) pursuant to which the De21 partment of Housing and Urban De22 velopment shall share a percentage of 

23 the savings at a level determined by 

24 the Secretary that is sufficient to 


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1 cover the administrative costs of car2 rying out this section. 

3 (ii) LIMITATIONS.—A payment made 

4 by the Secretary under an agreement 

5 under this section shall— 

6 (I) be contingent on documented 

7 utility savings; and 

8 (II) not exceed the utility savings 

9 achieved by the date of the payment, 

10 and not previously paid, as a result of 

11 the improvements made under the 

12 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 owner-paid utilities; 

23 (iii) annual third-party validation of 

24 the tenant utility allowances in effect durVerDate Mar 15 2010 23:35 Jul 18, 2014 Jkt 039060 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5104.IH H5104

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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 (2) TERM.—The term of an agreement under 

6 this section shall be not longer than 12 years. 

7 (3) ENTITY ELIGIBILITY.—The Secretary 

8 shall— 

9 (A) establish a competitive process for en10 tering into agreements under this section; and 

11 (B) enter into such agreements only with 

12 entities that demonstrate significant experience 

13 relating to— 

14 (i) financing and operating properties 

15 receiving assistance under a program de16 scribed in subsection (a); 

17 (ii) oversight of energy and water con18 servation programs, including oversight of 

19 contractors; and 

20 (iii) raising capital for energy and 

21 water conservation improvements from 

22 charitable organizations or private inves23 tors. 

24 (4) GEOGRAPHICAL DIVERSITY.—Each agree25 ment entered into under this section shall provide 


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1 for the inclusion of properties with the greatest fea2 sible regional and State variance. 

3 (c) PLAN AND REPORTS.— 

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

5 date of enactment of this Act, the Secretary shall 

6 submit to the Committees on Appropriations of the 

7 House of Representatives and the Senate a detailed 

8 plan for the implementation of this section. 

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

10 date of enactment of this Act, and annually there11 after, the Secretary shall— 

12 (A) conduct an evaluation of the program 

13 under this section; and 

14 (B) submit to Congress a report describing 

15 each evaluation conducted under subparagraph 

16 (A). 

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

18 agreement under this section is in effect, the Secretary 

19 may use to carry out this section any funds appropriated 

20 to the Secretary for the renewal of contracts under a pro21 gram described in subsection (a). 

Æ 


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