Cranston-Gonzalez National Affordable Housing Act 
(42 U.S.C. 8013(d)(2)). 
(b) REQUIREMENTS.— 
(1) PAYMENTS CONTINGENT ON SAVINGS.— 
(A) IN
GENERAL.—The Secretary shall 
provide to an entity a payment under an agree-
ment under this section only during applicable 
years for which an energy or water cost savings 
is achieved with respect to the applicable multi-
family portfolio of properties, as determined by 
the Secretary, in accordance with subparagraph 
(B). 
(B) PAYMENT METHODOLOGY.— 
(i) IN
GENERAL.—Each agreement 
under this section shall include a pay-for- 
success provision— 
(I) that will serve as a payment 
threshold for the term of the agree-
ment; and 
(II) pursuant to which the De-
partment of Housing and Urban De-
velopment shall share a percentage of 
the savings at a level determined by 
the Secretary that is sufficient to 
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cover the administrative costs of car-
rying out this section. 
(ii) LIMITATIONS.—A payment made 
by the Secretary under an agreement 
under this section shall— 
(I) be contingent on documented 
utility savings; and 
(II) not exceed the utility savings 
achieved by the date of the payment, 
and not previously paid, as a result of 
the improvements made under the 
agreement. 
(C) THIRD-PARTY VERIFICATION.—Savings 
payments made by the Secretary under this sec-
tion shall be based on a measurement and 
verification protocol that includes at least— 
(i) establishment of a weather-normal-
ized and occupancy-normalized utility con-
sumption baseline established pre-retrofit; 
(ii) annual third-party confirmation of 
actual utility consumption and cost for 
owner-paid utilities; 
(iii) annual third-party validation of 
the tenant utility allowances in effect dur-
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ing the applicable year and vacancy rates 
for each unit type; and 
(iv) annual third-party determination 
of savings to the Secretary. 
(2) TERM.—The term of an agreement under 
this section shall be not longer than 12 years. 
(3) 
ENTITY
ELIGIBILITY.—The 
Secretary 
shall— 
(A) establish a competitive process for en-
tering into agreements under this section; and 
(B) enter into such agreements only with 
entities that demonstrate significant experience 
relating to— 
(i) financing and operating properties 
receiving assistance under a program de-
scribed in subsection (a); 
(ii) oversight of energy and water con-
servation programs, including oversight of 
contractors; and 
(iii) raising capital for energy and 
water conservation improvements from 
charitable organizations or private inves-
tors. 
(4) GEOGRAPHICAL
DIVERSITY.—Each agree-
ment entered into under this section shall provide 
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for the inclusion of properties with the greatest fea-
sible regional and State variance. 
(c) PLAN AND REPORTS.— 
(1) PLAN.—Not later than 90 days after the 
date of enactment of this Act, the Secretary shall 
submit to the Committees on Appropriations of the 
House of Representatives and the Senate a detailed 
plan for the implementation of this section. 
(2) REPORTS.—Not later than 1 year after the 
date of enactment of this Act, and annually there-
after, the Secretary shall— 
(A) conduct an evaluation of the program 
under this section; and 
(B) submit to Congress a report describing 
each evaluation conducted under subparagraph 
(A). 
(d) FUNDING.—For each fiscal year during which an 
agreement under this section is in effect, the Secretary 
may use to carry out this section any funds appropriated 
to the Secretary for the renewal of contracts under a pro-
gram described in subsection (a). 
Æ 
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