Solar and Water-Efficient Homes Act of 2015

To amend title I of the National Housing Act to modify premium charges and the dollar amount limitation on loans for financing alterations, repairs, and improvements to, or conversion of, existing structures, including energy efficiency or water conserving home improvements, and for other purposes. 1. Short title This Act may be cited as the Solar and Water-Efficient Homes Act of 2015 2. Modification to premium charges on financing certain alterations, repairs, and improvements to, or conversions of, existing structures Subsection (f) of section 2 of the National Housing Act ( 12 U.S.C. 1703(f) (1) in paragraph (1), by striking 1 per centum per annum of the net proceeds of such loan, advance of credit, or purchase, for the term of such obligation 1.5 per centum per year of the remaining insured principal balance (excluding the portion of such balance attributable to the premium that may be collected under paragraph (3) and without taking into account delinquent payments or prepayments) (2) by inserting at the end the following new paragraphs: (3) Upfront premium charge for financing alterations, repairs, improvements, or conversions In addition to the annual premium collected under paragraph (1), in the case of a loan, advance of credit, or purchase in connection with insurance granted under subparagraph (A)(i) or subparagraph (B) of subsection (b)(1), the Secretary may, at the time of the making of the loan, advance of credit, or purchase, charge a single premium payment in an amount not to exceed 2.75 percent of the amount of the original insured principal obligation. Such premium charge shall be payable in advance by the financial institution in such manner as may be prescribed by the Secretary. (4) Increase in premium charge limitations for financing alterations, repairs, and improvements, or conversions The Secretary may increase the limitations on premium payments to percentages greater than those set forth in paragraphs (1) and (3), but only if necessary, and not in excess of the minimum increase necessary (as determined based upon risk to the Federal Government under existing underwriting requirements) to maintain a negative credit subsidy for insurance of loans, advances of credit, or purchases under subparagraph (A)(i) or subparagraph (B) of subsection (b)(1). . 3. Modification to certain insurance caps and loan limitations (a) Modification to cap on insurance to financial institutions The second sentence of section 2(a) of the National Housing Act ( 12 U.S.C. 1703(a) in no case the Secretary may, by notice, establish additional requirements relating to the insurance granted under this section by any such financial institution. (b) Modification to loan limitation for financing certain alterations, repairs, and improvements to, or conversions of, existing structures Subsection (b) of section 2 of such Act ( 12 U.S.C. 1703(b) (1) in paragraph (1)— (A) in subparagraph (A)(i), by striking $25,000 $42,000 (B) in subparagraph (B)— (i) by striking $60,000 $100,380 (ii) by striking $12,000 $20,076 (C) in the matter after and below subparagraph (G), by adding at the end the following: The Secretary may, by notice, annually, increase the dollar amount limitation in subparagraphs (A)(i) and (B) (as such limitation may have been previously adjusted under this sentence) in accordance with the index established pursuant to paragraph (12). (2) by adding at the end the following new paragraph: (12) Annual indexing of loans for financing alterations, repairs, and improvements to, or conversions of, existing structures Not later than 1 year after the date of enactment of the Solar and Water-Efficient Homes Act of 2015 . (c) Technical amendments Section 2 of such Act ( 12 U.S.C. 1703 (1) in the fourth undesignated paragraph of subsection (a)— (A) in paragraph (2), by striking and (B) in paragraph (3), by striking the period at the end and inserting ; and (2) in subsection (b)(1)— (A) in subparagraph (D), by striking and (B) in subparagraph (E), by striking the period at the end and inserting ; and 4. Modification to loan limitation for energy efficiency and water conserving home improvements Subsection (b) of section 2 of the National Housing Act ( 12 U.S.C. 1703(b) (13) Adjustment for energy conserving improvements or the installation of solar energy systems The dollar amount limitations otherwise applicable under subparagraph (A)(i) and subparagraph (B) of paragraph (1) (as adjusted by paragraph (12)) may be increased up to 150 percent of such limitation, but such increase may not exceed the dollar amount of the loan that will be used for purchasing or implementing energy conserving improvements or purchasing or installing solar energy systems (as such terms are defined in the last paragraph of subsection (a)), or for purchasing or implementing water conserving improvements (as defined by the Secretary). .

Summary: Solar and Water-Efficient Homes Act of 2015 This bill amends the National Housing Act, with respect to Department of Housing and Urban Development (HUD) insurance of financial institutions which finance housing alterations, repairs, improvements, or conversions, to increase the premium charge from 1% per annum of the net proceeds of a loan, advance of credit, or purchase, for the term of the obligation, to 1.5% per year of the remaining insured principal balance, with a specified exclusion and without taking into account delinquent payments or prepayments. There may also be a single upfront additional premium charge of 2.75% of the original insured principal obligation with respect to existing single-family or multi-family structures. HUD may increase the limitations on premium payments to percentages greater than these but only if necessary, and not in excess of the minimum increase necessary to maintain a negative credit subsidy for insurance of loans, advances of credit, or certain purchases. The maximum insurance amount (10% of the total amount of such loans, advances of credit, and purchases) any financial institution may receive is repealed. The maximum obligation of an individual loan, advance of credit, or purchase that may be insured for improvements: (1) to an existing single-family dwelling is increased from $25,000 to $42,000; and (2) to an existing multi-family structure is increased from $60,000 to $100,380, with an average amount of $20,076 (currently $12,000) per family unit. HUD shall develop a method of indexing to increase these dollar amount limitations annually, based on consumer price index data on housing collected by the Bureau of Labor Statistics of the Department of Labor. These dollar amount limitations may also be increased by up to 150%, not to exceed the dollar amount of the loan used for purchasing or installing solar energy systems or for purchasing or implementing water conserving improvements.