I 
113TH CONGRESS 
2D SESSION 
H. R. 5004 
To improve the energy efficiency of multifamily housing in the United States, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 26, 2014 
Mr. HIMES (for himself, Mr. DELANEY, Mr. WELCH, and Mr. CARTWRIGHT) 
introduced the following bill; which was referred to the Committee on Fi-
nancial Services 
A BILL 
To improve the energy efficiency of multifamily housing in 
the United States, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Multifamily Housing 
Energy Efficiency Improvement Act of 2014’’. 
SEC. 2. STUDY OF RELATIONSHIP BETWEEN ENERGY SAV-
INGS IMPROVEMENTS AND MORTGAGE PER-
FORMANCE. 
(a) STUDY.—Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Housing 
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and Urban Development, in coordination with the Director 
of the Federal Housing Finance Agency and in consulta-
tion with the Secretary of Energy, shall commence a study 
to analyze the relationship between energy savings im-
provements to homes and buildings, utility and energy ex-
penses, and mortgage performance, which shall include an 
analysis of— 
(1) the likely increase in value of homes or 
buildings from energy savings improvements; 
(2) the effect of energy savings improvements 
on mortgage default rates; and 
(3) the risks of financing energy savings im-
provements through property assessments and the 
risks associated with providing energy efficiency 
products with senior liens on buildings or homes. 
(b) PROTECTION OF INFORMATION.—In conducting 
the study required under subsection (a), the Secretary 
shall ensure that data shared with any third-party or pub-
lished does not contain any personally identifiable infor-
mation. 
(c) PUBLICATION.—Not later than one year after the 
date of the enactment of this Act, the Secretary of Hous-
ing and Urban Development shall— 
(1) publish the results of the study required 
under subsection (a) on the publicly available 
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website of the Department of Housing and Urban 
Development; and 
(2) submit a report regarding the results of the 
study required under subsection (a) to the Com-
mittee on Financial Services of the House of Rep-
resentatives and the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate. 
(d) EVALUATION.—Not later than 12 months after 
the completion of the study required by subsection (a), the 
Secretary and the Director of the Federal Housing Fi-
nance Agency shall evaluate departmental procedures and 
policies to assess if they accurately reflect the energy ex-
penses and benefits of energy savings improvements for 
homeowners and building owners. 
SEC. 3. IMPROVEMENTS TO EXISTING MULTIFAMILY HOUS-
ING ENERGY EFFICIENCY PROGRAMS. 
(a) GREEN REFINANCING.—Section 223 of the Na-
tional Housing Act (12 U.S.C. 1715n) is amended by add-
ing at the end the following new subsection: 
‘‘(h) GREEN REFINANCING.—The Secretary shall, by 
regulation, establish a green refinancing program for mul-
tifamily housing projects insured under subsection (f) 
under which any dollar amount limitations which would 
otherwise apply with respect to a project may be increased 
by up to 20 percent for the cost of residential energy con-
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servation measures for the project, but the Secretary shall 
only insure residential energy conservation measures pur-
suant to this subsection if the Secretary verifies that— 
‘‘(1) a third-party assessment procured by the 
lender or borrower has been conducted of the 
project’s physical needs, including an energy audit 
and identification of cost-effective opportunities for 
increasing energy and water efficiency and achieving 
a reduction in energy and water costs, and such as-
sessment indicates that such energy conservation 
measures will be cost-effective over the life of the 
conservation measure; and 
‘‘(2) such energy conservation measures will be 
verified and monitored over the life of the mortgage, 
using such method as the Secretary determines ap-
propriate. 
For purposes of this subsection, the term ‘energy con-
servation measure’ has the meaning given such term in 
section 221(k)(3) (12 U.S.C. 1715l(k)(3)).’’. 
(b) VERIFICATION
OF
COST-EFFECTIVENESS
OF 
RESIDENTIAL
ENERGY
CONSERVATION
MEASURES.— 
Subsection (k) of section 221 of the National Housing Act 
(12 U.S.C. 1715l(k)) is amended— 
(1) by striking ‘‘and will be cost-effective over 
the life of the measure’’; 
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(2) by striking ‘‘(k) With respect to any 
project’’ and inserting the following: 
‘‘(k) FINANCING OF SOLAR ENERGY SYSTEMS AND 
RESIDENTIAL ENERGY CONSERVATION MEASURES.— 
‘‘(1) AUTHORITY.—Subject to paragraph (2), 
with respect to any project’’; and 
(3) by adding at the end the following new 
paragraphs: 
‘‘(2) VERIFICATION
REGARDING
RESIDENTIAL 
ENERGY CONSERVATION MEASURES.—The Secretary 
may increase the dollar amount limitations pursuant 
to paragraph (1) with respect to a project due to 
residential energy conservation measures for the 
project only if the Secretary— 
‘‘(A) verifies that in the case of a mortgage 
insured under this section financing new con-
struction of the project, such measures will be 
cost-effective over the life of the measures; 
‘‘(B) in the case of a mortgage insured 
under this section financing repair and rehabili-
tation of the project, verifies that a third-party 
assessment procured by the lender or borrower 
has been conducted of the project’s physical 
needs, including an energy audit and identifica-
tion of cost-effective opportunities for increas-
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ing energy and water efficiency and achieving a 
reduction in energy and water costs, and such 
assessment indicates that the energy conserva-
tion measures to be installed will be cost-effec-
tive over the life of the measures; and 
‘‘(C) ensures that the project is provided 
information that will enable the project to verify 
and monitor the energy savings achieved by the 
energy conservation measures on a voluntary 
basis. 
‘‘(3) DEFINITION OF ENERGY CONSERVATION 
MEASURE.—For purposes of this subsection, the 
term ‘energy conservation measure’ means, with re-
spect to a project, any measure that will result in a 
reduction in energy, water, or gas consumption for 
the project.’’. 
(c) IMPLEMENTATION.— 
(1) GUIDANCE.—The Secretary of Housing and 
Urban Development shall issue guidance to imple-
ment the amendments made by this section not later 
than the expiration of the 12-month period begin-
ning on the date of the enactment of this Act. 
(2) ANNUAL REPORT ON ENERGY EFFICIENCY 
IMPROVEMENTS.—The Secretary of Housing and 
Urban Development shall, on an annual basis, make 
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available on a publicly available website of the De-
partment a report describing the implementation of 
the amendments made by this section and the pro-
grams for financing residential energy conservation 
measures under sections 221(k) and 223(h) of the 
National 
Housing 
Act 
(12 
U.S.C. 
1715l(k), 
1715n(h)) as amended by such amendments. 
SEC. 4. MULTIFAMILY HOUSING ENERGY EFFICIENCY IN-
NOVATION. 
(a) MULTIFAMILY HOUSING ENERGY INNOVATION 
PLAN.—The Secretary of Housing and Urban Develop-
ment shall carry out a program to be known as the Multi-
family Housing Energy Innovation Plan to make grants 
to eligible entities to establish or expand an energy savings 
plan that uses innovative approaches to reduce energy, 
water, and/or gas consumption in multifamily housing. 
(b) SUBMISSION AND SELECTION OF MULTIFAMILY 
HOUSING ENERGY INNOVATION PLANS.— 
(1) APPLICATION.—To be eligible to receive a 
grant under this section, an eligible entity shall sub-
mit an application to the Secretary at such time, in 
such manner, and containing such information as 
the Secretary may require, which shall include— 
(A) a description of the energy savings 
plan established or expanded using amounts 
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from a grant under this section that includes 
goals of the plan, use of grant funds, and the 
anticipated outcome of the plan; 
(B) the amount of grant funds needed for 
such plan and the amount and sources of other 
funding, including matching funds required 
under subsection (d)(1); and 
(C) a description of how implementing 
such plan will comply with the energy savings 
requirement under subsection (c)(2). 
(2) SELECTION.—The Secretary shall establish 
criteria for selection of applications submitted under 
paragraph (1) to receive grants under this section 
and shall select eligible entities to receive grants 
based on such criteria. Such criteria shall be based 
upon— 
(A) the relevant experience and capacity of 
the eligible entity to carry out the energy sav-
ings plan to be assisted with grant amounts and 
to achieve the stated goals of such plan; 
(B) the extent to which such plan provides 
an innovative approach to reducing energy con-
sumption in multifamily housing; 
(C) the ability of such plan to be replicated 
by others; and 
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(D) such other factors as the Secretary de-
termines to be appropriate. 
(3) PRIORITY.—In awarding grants under this 
section, the Secretary shall give priority to applica-
tions based on— 
(A) the extent of funding for the energy 
savings plan secured by the eligible entity from 
private, nonprofit, or government sources in ad-
dition to the matching funds required under 
subsection (d)(1); 
(B) the extent of the proposed benefit of 
the energy savings plan to low-income families; 
and 
(C) the extent to which the energy savings 
plan would reduce budgetary expenses for the 
Department of Housing and Urban Develop-
ment. 
(c) USE OF GRANT FUNDS.— 
(1) ELIGIBLE
ENERGY
SAVINGS
PLANS.— 
Amounts from grants under this section may be 
used only for energy savings plans that— 
(A) are financing demonstrations for mul-
tifamily 
housing, 
including 
for 
financing 
through credit enhancements, revolving loan 
funds, loan loss reserves, interest rate subsidies, 
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loan insurance, or other financing methods ap-
proved by the Secretary; 
(B) create green jobs, including in the 
fields of construction, property management, 
and technical analysis, that directly promote the 
adoption of energy savings measures in multi-
family housing, including energy savings plans 
that create green jobs for low-income families; 
(C) acquire and analyze data on the costs, 
benefits, challenges, and opportunities associ-
ated with retrofitting multifamily housing for 
energy efficiency; or 
(D) research and implement a demonstra-
tion project that— 
(i) creates retrofit or repair strategies 
that use readily available technologies to 
reduce or increase the efficiency of energy, 
water, and gas consumption that are not 
typically used for multifamily housing; 
(ii) addresses the split incentive prob-
lem, including implementing changes to 
methods for utility metering in multifamily 
housing; 
(iii) 
creates 
a 
system 
for 
benchmarking, tracking, and sharing en-
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ergy consumption statistics for multifamily 
housing; or 
(iv) achieves another goal as approved 
by the Secretary. 
(2) 
ENERGY
SAVINGS
REQUIREMENT.— 
Amounts from a grant under this section may be 
used only to carry out an energy savings plan de-
scribed in paragraph (1) that will result in at least 
a 20-percent reduction in the energy, water, or gas 
consumption of multifamily housing and a descrip-
tion of the methodology to be used to compute the 
reduction in energy consumption. 
(d) OTHER REQUIREMENTS.— 
(1) MATCHING FUNDS.—An eligible entity that 
receives a grant under this section shall contribute 
towards the energy savings plan amounts from pri-
vate, nonprofit, or government sources that are not 
less than the amount of the grant. 
(2) DURATION.—Grants shall be awarded for a 
period not to exceed 24 months. 
(3) ELIGIBLE ENTITY REPORT.—Not later than 
12 months after the date on which the grant period 
of an eligible entity that received a grant under this 
section ends, each such eligible entity shall submit to 
the Secretary a report on the performance of energy 
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savings plans carried out pursuant to this section 
that shall contain such information as the Secretary 
shall require. 
(e) DEFINITIONS.—In this section the following defi-
nitions shall apply: 
(1) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means a partnership between 2 or more of the 
following entities: 
(A) A State or unit of local government. 
(B) A provider of utility services. 
(C) A community housing development or-
ganization as defined in section 104 of the 
Cranston-Gonzalez National Affordable Hous-
ing Act (42 U.S.C. 12704). 
(D) A public housing agency as defined in 
section 3(b) of the United States Housing Act 
of 1937 (42 U.S.C. 1437a(b)). 
(E) A non-profit or for-profit entity whose 
primary business is management of multifamily 
housing. 
(2) ENERGY SAVINGS PLAN.—The term ‘‘energy 
savings plan’’ means a program, project, or activity 
for energy savings or water and gas efficiency in 
multifamily housing. 
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(3) LOW-INCOME FAMILIES.—The term ‘‘low-in-
come families’’ has the meaning given that term in 
section 3(b) of the United States Housing Act of 
1937 (42 U.S.C. 1437a(b)). 
(4) MULTIFAMILY HOUSING.—The term ‘‘multi-
family housing’’ means a residence consisting of 5 or 
more dwelling units. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
(6) SPLIT
INCENTIVE
PROBLEM.—The term 
‘‘split incentive problem’’ means, with respect to 
multifamily housing, a situation in which— 
(A) the occupant of a dwelling unit in the 
housing does not pay for energy, water, or gas 
consumption 
for 
such 
unit 
and 
is 
not 
incentivized to implement an energy savings 
measure; or 
(B) the owner does not pay for energy, 
water, or gas consumption for dwelling units in 
the housing and is not incentivized to imple-
ment an energy savings measure. 
(7) STATE.—The term ‘‘State’’ means each of 
the several States, the District of Columbia, and any 
territory or possession of the United States. 
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(f) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized 
to 
be 
appropriated 
to 
the 
Secretary 
$25,000,000 for fiscal year 2015, $20,000,000 for fiscal 
year 2016, $15,000,000 for fiscal year 2017, and 
$10,000,000 for fiscal year 2018 to carry out this section. 
SEC. 5. GREEN PRESERVATION EXPANSION. 
During the 5-year period beginning on the date of 
the enactment of this Act, the Secretary of Housing and 
Urban Development may waive any statutory or regu-
latory requirement regarding the eligibility of multifamily 
properties for an existing risk-sharing agreement entered 
into under section 542 of the Housing and Community 
Development Act of 1992 (12 U.S.C. 1715z–22), but only 
if such waiver facilitates the adoption of energy or water 
conservation measures in such properties. 
Æ 
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