I 
114TH CONGRESS 
1ST SESSION H. R. 2982 
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, in-
cluding energy efficiency or water conserving home improvements, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 8, 2015 
Mr. HUFFMAN (for himself and Mr. HECK of Washington) introduced the 
following bill; which was referred to the Committee on Financial Services 
A BILL 
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 improve-
ments to, or conversion of, existing structures, including 
energy efficiency or water conserving home improve-
ments, 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 ‘‘Solar and Water-Effi-
cient Homes Act of 2015’’. 
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SEC. 2. MODIFICATION TO PREMIUM CHARGES ON FINANC-
ING 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)) is amended— 
(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 obliga-
tion’’ and inserting ‘‘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 with-
out taking into account delinquent payments or pre-
payments)’’; 
(2) by inserting at the end the following new 
paragraphs: 
‘‘(3) UPFRONT PREMIUM CHARGE FOR FINANC-
ING
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 in-
surance granted under subparagraph (A)(i) or sub-
paragraph (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 pay-
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ment 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 LIMITA-
TIONS 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 para-
graphs (1) and (3), but only if necessary, and not 
in excess of the minimum increase necessary (as de-
termined based upon risk to the Federal Govern-
ment under existing underwriting requirements) to 
maintain a negative credit subsidy for insurance of 
loans, advances of credit, or purchases under sub-
paragraph (A)(i) or subparagraph (B) of subsection 
(b)(1).’’. 
SEC. 3. MODIFICATION TO CERTAIN INSURANCE CAPS AND 
LOAN LIMITATIONS. 
(a) MODIFICATION TO CAP ON INSURANCE TO FI-
NANCIAL INSTITUTIONS.—The second sentence of section 
2(a) of the National Housing Act (12 U.S.C. 1703(a)) is 
amended by striking ‘‘in no case’’ and all that follows 
through the period at the end and inserting ‘‘the Secretary 
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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 FI-
NANCING CERTAIN ALTERATIONS, REPAIRS, AND IM-
PROVEMENTS TO, OR CONVERSIONS OF, EXISTING STRUC-
TURES.—Subsection (b) of section 2 of such Act (12 
U.S.C. 1703(b)) is amended— 
(1) in paragraph (1)— 
(A) in subparagraph (A)(i), by striking 
‘‘$25,000’’ and inserting ‘‘$42,000’’; and 
(B) in subparagraph (B)— 
(i) by striking ‘‘$60,000’’ and insert-
ing ‘‘$100,380’’; and 
(ii) by striking ‘‘$12,000’’ and insert-
ing ‘‘$20,076’’; and 
(C) in the matter after and below subpara-
graph (G), by adding at the end the following: 
‘‘The Secretary may, by notice, annually, in-
crease the dollar amount limitation in subpara-
graphs (A)(i) and (B) (as such limitation may 
have been previously adjusted under this sen-
tence) in accordance with the index established 
pursuant to paragraph (12).’’; and 
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(2) by adding at the end the following new 
paragraph: 
‘‘(12) ANNUAL INDEXING OF LOANS FOR FI-
NANCING
ALTERATIONS, REPAIRS, AND
IMPROVE-
MENTS TO, OR CONVERSIONS OF, EXISTING STRUC-
TURES.—Not later than 1 year after the date of en-
actment of the ‘Solar and Water-Efficient Homes 
Act of 2015’, the Secretary shall develop a method 
of indexing to annually increase the dollar amount 
limitations established in subparagraphs (A)(i) and 
(B) of paragraph (1). Such index shall be based on 
consumer price index data on housing collected by 
the Bureau of Labor Statistics.’’. 
(c) TECHNICAL AMENDMENTS.—Section 2 of such 
Act (12 U.S.C. 1703) is amended— 
(1) in the fourth undesignated paragraph of 
subsection (a)— 
(A) in paragraph (2), by striking ‘‘and’’ at 
the end; and 
(B) in paragraph (3), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(2) in subsection (b)(1)— 
(A) in subparagraph (D), by striking 
‘‘and’’ at the end; and 
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(B) in subparagraph (E), by striking the 
period at the end and inserting ‘‘; and’’. 
SEC. 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)), as amended by section 3(b) of 
this Act, is further amended by adding at the end the fol-
lowing new paragraph: 
‘‘(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 im-
provements or purchasing or installing solar energy 
systems (as such terms are defined in the last para-
graph of subsection (a)), or for purchasing or imple-
menting water conserving improvements (as defined 
by the Secretary).’’. 
Æ 
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