114TH CONGRESS 
1ST SESSION H. R. 2997 
AN ACT 
To authorize the Secretary of Housing and Urban Develop-
ment to carry out a demonstration program to enter 
into budget-neutral, performance-based contracts for en-
ergy and water conservation improvements for multi-
family residential units. 
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 ‘‘Private Investment in 
Housing Act of 2015’’. 
SEC. 2. BUDGET-NEUTRAL DEMONSTRATION PROGRAM 
FOR ENERGY AND WATER CONSERVATION IM-
PROVEMENTS AT MULTIFAMILY RESIDEN-
TIAL UNITS. 
(a) ESTABLISHMENT.—The Secretary of Housing 
and Urban Development (in this section referred to as the 
‘‘Secretary’’) shall establish a demonstration program 
under which the Secretary may execute budget-neutral, 
performance-based agreements in fiscal years 2016 
through 2019 that result in a reduction in energy or water 
costs with such entities as the Secretary determines to be 
appropriate under which the entities shall carry out 
projects for energy or water conservation improvements at 
not more than 20,000 residential units in multifamily 
buildings participating in— 
(1) the project-based rental assistance program 
under section 8 of the United States Housing Act of 
1937 (42 U.S.C. 1437f), other than assistance pro-
vided under section 8(o) of that Act; 
(2) the supportive housing for the elderly pro-
gram under section 202 of the Housing Act of 1959 
(12 U.S.C. 1701q); or
(3) the supportive housing for persons with dis-
abilities program under section 811(d)(2) of the 
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 that— 
(I) shall serve as a payment 
threshold for the term of the agree-
ment; and 
(II) requires that payments shall 
be contingent on realized cost savings 
associated with reduced utility con-
sumption in the participating prop-
erties. 
(ii) LIMITATIONS.—A payment made 
by the Secretary under an agreement 
under this section— 
(I) shall be contingent on docu-
mented utility savings; and 
(II) shall 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 
utilities; 
(iii) annual third-party validation of 
the tenant utility allowances in effect dur-
ing the applicable year and vacancy rates 
for each unit type; and 
(iv) annual third-party determination 
of savings to the Secretary. 
An agreement under this section with an entity 
shall provide that the entity shall cover costs 
associated with third-party verification under 
this subparagraph. 
(2) TERMS
OF
PERFORMANCE-BASED
AGREE-
MENTS.—A performance-based agreement under this 
section shall include— 
(A) the period that the agreement will be 
in effect and during which payments may be 
made, which may not be longer than 12 years; 
(B) the performance measures that will 
serve as payment thresholds during the term of 
the agreement; 
(C) an audit protocol for the properties 
covered by the agreement; 
(D) a requirement that payments shall be 
contingent on realized cost savings associated 
with reduced utility consumption in the partici-
pating properties; and 
(E) such other requirements and terms as 
determined to be appropriate by the Secretary.
(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, either jointly or individually, dem-
onstrate significant experience relating to— 
(i) financing or operating properties 
receiving assistance under a program iden-
tified in subsection (a); 
(ii) oversight of energy or water con-
servation programs, including oversight of 
contractors; and 
(iii) raising capital for energy or 
water conservation improvements from 
charitable organizations or private inves-
tors. 
(4) GEOGRAPHICAL
DIVERSITY.—Each agree-
ment entered into under this section shall provide 
for the inclusion of properties with the greatest fea-
sible regional and State variance. 
(5) PROPERTIES.—A property may only be in-
cluded in the demonstration under this section only 
if the property is subject to affordability restrictions 
for at least 15 years after the date of the completion
of any conservation improvements made to the prop-
erty under the demonstration program. Such restric-
tions may be made through an extended affordability 
agreement for the property under a new housing as-
sistance payments contract with the Secretary of 
Housing and Urban Development or through an en-
forceable covenant with the owner of the property. 
(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 and Fi-
nancial Services of the House of Representatives and 
the Committees on Appropriations and Banking, 
Housing, and Urban Affairs of 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