I 
112TH CONGRESS 
1ST SESSION 
H. R. 627 
To require energy audits to be conducted for any single-family and multifamily 
housing purchased using federally related housing loans, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 10, 2011 
Mr. CLEAVER introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To require energy audits to be conducted for any single- 
family and multifamily housing purchased using federally 
related housing loans, 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 ‘‘Home Energy Loss 
Prevention Act’’. 
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SEC. 2. ENERGY AUDIT REQUIREMENT FOR SINGLE-FAMILY 
AND MULTIFAMILY HOUSING PURCHASED 
USING A FEDERALLY RELATED HOUSING 
LOAN. 
(a) REQUIREMENTS.—Except as provided in sub-
section (d) and section 3, a seller of single-family or multi-
family housing that will be purchased with the assistance 
of a federally related housing loan may not sell such hous-
ing, unless— 
(1) not less than 5 years before the time of sale 
of the housing, an energy audit meeting the require-
ments of subsection (b) is conducted with respect to 
such housing; 
(2) the seller provides the purchaser a copy of 
the results of the energy audit referred to in para-
graph (1); and 
(3) the results of the energy audit referred to 
in paragraph (1) are submitted to the Secretary of 
Housing and Urban Development. 
(b) ENERGY AUDIT.—An energy audit meets the re-
quirements under this subsection only if— 
(1) the audit is conducted by a home energy 
auditor or equivalent, as determined by the Sec-
retary; 
(2) the results of the audit are recorded using 
energy audit and disclosure forms prescribed by reg-
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ulation by the Secretary for single-family or multi-
family housing, as applicable; and 
(3) the results of the audit include— 
(A) a standardized ratings score, based on 
a scoring system approved by the Secretary, in 
consultation with the Secretary of Energy, that 
allows the energy efficiency of the housing to be 
compared to the energy efficiency of similar 
housing, as determined by the Secretary; and 
(B) a prioritized list, based on cost-effec-
tiveness and energy savings, of potential energy 
efficiency improvements for the housing. 
(c) NOTICE.—A person who accepts applications for 
federally related housing loans shall provide to each appli-
cant for such a loan, at the time of such application, writ-
ten notice of the following: 
(1) The requirements under subsection (a). 
(2) The exception under subsection (d) and ex-
emption under section 3. 
(3) That the Department of Housing and 
Urban Development maintains, on an Internet 
website, a database containing copies of the results 
of energy audits conducted pursuant to this Act. 
(4) That the applicant for the loan may obtain, 
from the Department of Housing and Urban Devel-
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opment, copies of any energy audits with respect to 
the housing for which the loan application is made 
that have been submitted to such Department. 
(d) EXCEPTION
FOR
NEW
ENERGY
EFFICIENT 
HOUSING.—The requirements under this section shall not 
apply with respect to the seller of single-family housing 
or multifamily housing that will be purchased with the as-
sistance of a federally related housing loan if such hous-
ing— 
(1) was constructed not more than 5 years be-
fore the time of sale involving such loan; and 
(2) is— 
(A) Energy Star qualified; 
(B) certified under the Leadership in En-
ergy and Environmental Design (LEED) Green 
Building Rating System of the United States 
Green Building Council; or 
(C) certified under an equivalent certifi-
cation system approved by the Secretary, in 
consultation with the Secretary of Energy. 
(e) ACCESSIBILITY OF ENERGY AUDIT RESULTS.— 
(1) LOCAL HOUSING OFFICES.—The Secretary 
shall coordinate with appropriate local recorders of 
deeds (or other similar local offices responsible for 
maintaining records of residential real property in-
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terests and transactions) to maintain copies of the 
results of energy audits conducted pursuant to this 
Act on-file in conjunction with the deeds to such 
housing. 
(2) HUD DATABASE.—The Secretary shall es-
tablish and maintain a database containing copies of 
the results of energy audits conducted pursuant to 
this Act and ensure such database is accessible to 
the public on an Internet website. 
SEC. 3. EXEMPTION. 
The Secretary may grant a seller an exemption from 
any requirement of this Act if the Secretary determines 
that such requirement would, due to circumstances unique 
to the single-family housing or multifamily housing that 
will be purchased with the assistance of a federally related 
housing loan and not based on a condition caused by ac-
tions of the seller, cause undue hardship for the seller. 
An exemption granted under this section shall be limited 
to the minimum change necessary to avoid undue hard-
ship. 
SEC. 4. CIVIL PENALTIES. 
In the case of any sale of single-family or multifamily 
housing involving a federally related housing loan in viola-
tion of section 2 of this Act, the Secretary shall assess 
a civil money penalty against the seller in an amount not 
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to exceed 20 percent of the sale price of such housing for 
which such loan is made. 
SEC. 5. HOME ENERGY LOSS PREVENTION FUND AND FEE. 
(a) FEE.—The Secretary shall assess persons that 
make federally related housing loans a fee for each such 
loan made, in an amount to be determined by the Sec-
retary, but not more than necessary to pay costs incurred 
in carrying out the responsibilities of the Department of 
Housing and Urban Development under this Act. The Sec-
retary shall collect and deposit such fees in the Home En-
ergy Loss Prevention Fund established under subsection 
(b)(1) for use in accordance with this section. 
(b) FUND.— 
(1) ESTABLISHMENT.—There is established in 
the Treasury of the United States a fund to be 
known as the ‘‘Home Energy Loss Prevention 
Fund’’, consisting of— 
(A) amounts collected as fees assessed 
under subsection (a); and 
(B) any interest earned on investment of 
amounts in the Home Energy Loss Prevention 
Fund credited to the Fund under paragraph 
(2)(B). 
(2) INVESTMENT OF AMOUNTS.— 
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(A) IN GENERAL.—The Secretary of the 
Treasury shall invest such portion of the Home 
Energy Loss Prevention Fund as is not, in the 
judgment of the Secretary of the Treasury, re-
quired to meet current withdrawals. Invest-
ments may be made only in interest-bearing ob-
ligations of the United States. 
(B) CREDITS TO FUND.—The interest on, 
and the proceeds from the sale or redemption 
of, any obligations held in the Home Energy 
Loss Prevention Fund shall be credited to the 
Fund. 
(3) USE OF AMOUNTS IN THE FUND.—To the 
extent provided in advance in appropriations Acts, 
amounts in the Home Energy Loss Prevention Fund 
shall be made available to the Secretary without fis-
cal year limitation to carry out the responsibilities of 
the Department of Housing and Urban Development 
under this Act. 
SEC. 6. REGULATIONS AND EFFECTIVE DATE. 
(a) REGULATIONS.—Not later than one year after the 
date of enactment of this Act, the Secretary shall promul-
gate regulations to carry out this Act. 
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(b) EFFECTIVE DATE.—The requirements under this 
Act shall take effect 6 months after the date regulations 
are promulgated pursuant to subsection (a). 
SEC. 7. DEFINITIONS. 
In this Act: 
(1) ENERGY AUDIT.—The term ‘‘energy audit’’ 
has the meaning given such term in section 391(13) 
of the Energy Policy and Conservation Act (42 
U.S.C. 6371(13)). 
(2) FEDERALLY
RELATED
HOUSING
LOAN.— 
The term ‘‘federally related housing loan’’ means the 
following loans: 
(A) SINGLE-FAMILY HOUSING LOANS.—A 
federally related mortgage loan, as such term is 
defined in paragraph (1) of section 3 of the 
Real Estate Settlement Procedures Act of 1974 
(12 U.S.C. 2602(1)). 
(B) MULTIFAMILY
HOUSING
LOANS.—A 
loan that is described in paragraph (1) of sec-
tion 3 of the Real Estate Settlement Procedures 
Act of 1974 (12 U.S.C. 2602(1)), except that 
for purposes of subparagraph (A) of such para-
graph (1) shall be applied— 
(i) by substituting ‘‘(including condo-
minium and cooperative projects)’’ for 
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‘‘(including individual units of condomin-
iums and cooperatives)’’; and 
(ii) by substituting ‘‘5 or more fami-
lies’’ for ‘‘from one to four families’’. 
(3) HOME ENERGY AUDITOR.—The term ‘‘home 
energy auditor’’ means a person who is certified by 
an agency approved by the Secretary, in consultation 
with the Secretary of Energy, to conduct energy au-
dits for single-family housing or multifamily hous-
ing, as applicable. 
(4) MULTIFAMILY HOUSING.—The term ‘‘multi-
family housing’’ means any residential structure con-
sisting of 5 or more dwelling units. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
(6) SINGLE-FAMILY HOUSING.—The term ‘‘sin-
gle-family housing’’ means any residential structure 
consisting of 1 to 4 dwelling units. 
(7) TIME OF SALE.—The term ‘‘time of sale’’ 
means, with respect to any single-family or multi-
family housing for which a federally related housing 
loan is made, the date of the recording of a deed 
transferring legal title to real property to implement 
the sale of property that involved such loan. 
Æ 
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