(1)(A) is an institution that qualifies as a green 
banking center pursuant to section 8(x) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1818(x)) or 
section 206(x) of the Federal Credit Union Act (12 
U.S.C. 1786(x)); or 
(B) meets such other requirements as the Sec-
retary shall establish for participation of renewable 
energy lenders in the program under this section; 
and 
(2) meets such qualifications as the Secretary 
shall establish for all lenders for participation in the 
program under this section and is approved by the 
Secretary as meeting such qualifications. 
(h) CERTIFICATE OF INSURANCE.—Insurance of a 
loan under this section shall be evidenced by a certificate 
of insurance coverage issued by the Secretary to the lender 
under the loan. Such certificate shall set forth the fair 
market value of the future revenue stream for each year 
of the remaining life of the renewable energy system as 
determined in accordance with subsection (d). 
(i) PAYMENT OF INSURANCE.— 
(1) IN GENERAL.—The Secretary shall provide 
for the filing of claims for insurance under this sec-
tion and the payment of such claims. A claim may 
be paid only upon a default under the loan insured 
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under this section and the assignment, transfer, and 
delivery to the Secretary of all rights and interests 
arising under the loan and all claims of the lender 
or the assigns of the lender against the borrower or 
others arising under the loan transaction. 
(2) LIEN.—Upon payment of a claim for insur-
ance of a loan under this section, the Secretary shall 
be granted a lien on the underlying renewable energy 
system assets and any associated revenue stream 
from use of that system, which shall be superior to 
all other liens on such assets, and the residual value 
of that system and the revenue stream shall be at 
least equal to the unpaid balance of the loan amount 
covered by the certificate of insurance. The Sec-
retary shall be entitled to any revenue generated by 
the renewable energy system from selling electricity 
to the grid when an insurance claim has been paid 
out. 
(j) ASSIGNMENT AND TRANSFERABILITY OF INSUR-
ANCE.—The holder of insurance provided under this sec-
tion may assign or transfer the insurance in whole or in 
part, to another lender, subject to such requirements as 
the Secretary may prescribe. 
(k) PREMIUMS AND CHARGES.— 
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(1) INSURANCE FEE.—The Secretary shall fix 
and collect premiums for insurance of loans under 
this section, that shall be paid by the qualified appli-
cant at the time of issuance of the certificate of in-
surance to the lender and shall be adequate, in the 
determination of the Secretary, to cover expenses 
and probable losses, including any costs (as such 
term is defined in section 502 of the Federal Credit 
Reform Act of 1990 (2 U.S.C. 661a) of loan insur-
ance under this section. In no event may such pre-
mium exceed 3 percent of the principal obligation of 
the loan being insured. The Secretary shall deposit 
any premiums collected under this subsection in the 
Renewable Energy Lease Insurance Fund estab-
lished under subsection (l). 
(2) PROHIBITION ON OTHER CHARGES.—Except 
as provided in paragraph (1), the Secretary may not 
assess any fees, including user fees, insurance pre-
miums, or charges in connection with loan insurance 
provided under this section. 
(l) 
RENEWABLE
ENERGY
LEASE
INSURANCE 
FUND.— 
(1) ESTABLISHMENT.—There is hereby estab-
lished the Renewable Energy Lease Insurance Fund, 
which shall be available to the Secretary without fis-
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cal year limitation, for the purpose of providing in-
surance under this section. 
(2) CREDITS.—The Fund shall be credited with 
any premiums collected under subsection (k)(1), any 
amounts collected by the Secretary under subsection 
(i)(2), and any associated interest or earnings. 
(3) AVAILABILITY.—Amounts in the Fund shall 
be available to the Secretary, in amounts provided in 
advance in appropriation Acts, for fulfilling any obli-
gations with respect to insurance for loans provided 
under this section and paying administrative ex-
penses in connection with this section. Any amounts 
in the Fund determined by the Secretary to be in ex-
cess of amounts currently required at the time of the 
determination to carry out this section may be in-
vested in obligations of the United States. 
(m) FULL FAITH AND CREDIT.—The certificate of 
insurance issued by the Secretary under this section shall 
be backed by the full faith and credit of the United States 
of America. 
(n) REGULATIONS.—The Secretary shall issue such 
regulations as may be necessary to carry out this section. 
The Secretary shall issue final or interim final regulations 
not later than the expiration of the 180-day period begin-
ning on the date of the enactment of this Act. 
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(o) INELIGIBILITY FOR PURCHASE BY FEDERAL FI-
NANCING BANK.—Notwithstanding the provisions of the 
Federal Financing Bank Act of 1973 (12 U.S.C. 2281 et 
seq.) or any other provision of law, no debt obligation that 
is insured or committed to be insured by the Secretary 
under this section shall be subject to the provisions of such 
Act. 
(p) DEFINITIONS.—For purposes of this section, the 
following definitions apply: 
(1) RENEWABLE ENERGY SYSTEM LEASE.—The 
term ‘‘renewable system energy lease’’ means an 
agreement between a qualified investor in a renew-
able energy system and a homeowner pursuant to 
which the homeowner grants an easement to the in-
vestor to install, maintain, use, and otherwise access 
the renewable energy system and leases the use of 
that system from the qualified investor for a speci-
fied term. 
(2) RENEWABLE ENERGY SYSTEM.—The term 
‘‘renewable energy system’’ means a system that 
generates energy from naturally replenished energy 
sources such as sunlight, wind, rain, tides or geo-
thermal heat. 
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(3) RENEWABLE
ENERGY
MANUFACTURER.— 
The term ‘‘renewable energy manufacturer’’ means a 
manufacturer of renewable energy systems. 
SEC. 28. GREEN GUARANTEES. 
(a) AUTHORITY TO GUARANTEE ‘‘GREEN PORTION’’ 
OF ELIGIBLE MORTGAGES.— 
(1) IN GENERAL.—The Secretary of Housing 
and Urban Development may make commitments to 
guarantee under this section and may guarantee, the 
repayment of the portions of the principal obliga-
tions of eligible mortgages that are used to finance 
eligible sustainable building elements for the housing 
that is subject to the mortgage. 
(2) AMOUNT
OF
GUARANTEE.—A guarantee 
under this section by the Secretary in connection 
with an eligible mortgage shall not exceed a percent-
age of the green portion (as such term is defined in 
subsection (g)) of the mortgage, as shall be estab-
lished by the Secretary and may be established on 
a regional basis as the Secretary determines appro-
priate. 
(b) ELIGIBLE MORTGAGES.—To be considered an eli-
gible mortgage for purposes of this section, a mortgage 
shall comply with all of the following requirements: 
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(1) ACQUISITION OR CONSTRUCTION OF HOUS-
ING.—The mortgage shall be made for the acquisi-
tion or construction of single- or multifamily housing 
and repayment of the mortgage shall be secured by 
an interest in such housing. 
(2) FINANCING
OF
ELIGIBLE
SUSTAINABLE 
BUILDING ELEMENTS THROUGH GREEN PORTION OF 
MORTGAGE.—A portion of the principal obligation of 
the mortgage, which meets the requirements under 
subsection (c), shall be used only for financing the 
provision of eligible sustainable building elements for 
the housing for which the mortgage was made. 
(3) MAXIMUM MORTGAGE AMOUNT.—The prin-
cipal obligation of the mortgage (including the eligi-
ble portion of such mortgage, and such initial service 
charges, appraisal, inspection, and other fees as the 
Secretary shall approve) may not exceed the fol-
lowing amounts: 
(A) SINGLE-FAMILY HOUSING.—Such dol-
lar amounts for single-family housing as the 
Secretary shall establish, which may be estab-
lished on the basis of the number of dwelling 
units in the housing, as the Secretary considers 
appropriate. 
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(B) MULTIFAMILY HOUSING.—Such dollar 
amounts for multifamily housing as the Sec-
retary shall establish, which may be established 
on the basis of the number of dwelling units in 
the housing and the number of bedrooms in 
such dwelling units, as the Secretary considers 
appropriate. 
(4) REPAYMENT.—The mortgage meets such 
requirements as the Secretary shall establish to en-
sure that there is a reasonable prospect of repay-
ment of the principal and interest on the obligation 
by the mortgagor. 
(5) MORTGAGE
TERMS.—The mortgage shall 
meet such requirements with respect to loan-to-value 
ratio, mortgagor credit scores, debt-to-income ratio, 
and other underwriting standards, term to maturity, 
interest rates and amortization, including amortiza-
tion of the green portion of the mortgage, and other 
mortgage terms as the Secretary shall establish. 
(c) LIMITATIONS ON GREEN PORTION OF MORT-
GAGE.—The requirements under this subsection with re-
spect to the green portion of an eligible mortgage are as 
follows: 
(1) PERCENTAGE
LIMITATION.—Such portion 
shall not exceed, in the case of single-family or mul-
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tifamily housing, 10 percent of the total principal 
obligation of the mortgage. 
(2) DOLLAR AMOUNT LIMITATION.—Such por-
tion shall not exceed— 
(A) in the case of single-family housing, 
such maximum dollar amount limitation as the 
Secretary shall establish, which may be estab-
lished on the basis of the number of dwelling 
units in the housing, as the Secretary considers 
appropriate; and 
(B) in the case of multifamily housing, 
such maximum dollar amount limitation as the 
Secretary shall establish, which limitation may 
be established on the basis of the number of 
dwelling units in the housing and the number 
of bedrooms in such dwelling units, as the Sec-
retary considers appropriate. 
(3) COST-EFFECTIVENESS
LIMITATION.—Such 
portion shall not exceed the total present value of 
the savings (as determined in accordance with sub-
section (d)) attributable to the incorporation of the 
eligible sustainable building elements to be financed 
with the green portion of the mortgage that are to 
be realized over the useful life of such elements. 
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(d) 
ELIGIBLE
SUSTAINABLE
BUILDING
ELE-
MENTS.—The Secretary may not guarantee any eligible 
mortgage under this section unless the mortgagor has 
demonstrated, in accordance with such requirements as 
the Secretary shall establish, the amount of savings attrib-
utable to incorporation of the sustainable building ele-
ments to be financed with the green portion of the mort-
gage, as measured by the National Green Building Stand-
ard for all residential construction developed by the Na-
tional Association of Home Builders and the U.S. Green 
Building Council, and approved by the American National 
Standards Institute, as updated and in effect at the time 
of such demonstration. 
(e) GUARANTEE FEE.— 
(1) ASSESSMENT AND COLLECTION.—The Sec-
retary shall assess and collect fees for guarantees 
under this section in amounts that the Secretary de-
termines are sufficient to cover the costs (as such 
term is defined in section 502 of the Federal Credit 
Reform Act of 1990 (2 U.S.C. 661a)) of such guar-
antees. 
(2) AVAILABILITY.—Fees collected under this 
subsection shall be deposited by the Secretary in the 
Treasury of the United States and shall remain 
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available until expended, subject to such other condi-
tions as are contained in annual appropriations Acts. 
(f) PAYMENT OF GUARANTEE.— 
(1) DEFAULT.— 
(A) RIGHT TO PAYMENT.—If a mortgagor 
under a mortgage guaranteed under this section 
defaults (as defined in regulations issued by the 
Secretary and specified in the guarantee con-
tract) on the obligation under the mortgage— 
(i) the holder of the guarantee shall 
have the right to demand payment of the 
unpaid amount of the guaranteed portion 
of the mortgage, to the extent provided 
under subsection (a)(2), from the Sec-
retary; and 
(ii) within such period as may be 
specified in the guarantee or related agree-
ments, the Secretary shall pay to the hold-
er of the guarantee, to the extent provided 
under subsection (a)(2), the unpaid inter-
est on, and unpaid principal of the portion 
of guaranteed portion of the mortgage with 
respect to which the borrower has de-
faulted, unless the Secretary finds that 
there was no default by the borrower in 
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100 
the payment of interest or principal or that 
the default has been remedied. 
(B) FORBEARANCE.—Nothing in this para-
graph precludes any forbearance by the holder 
of an eligible mortgage for the benefit of the 
mortgagor which may be agreed upon by the 
parties to the mortgage and approved by the 
Secretary. 
(2) SUBROGATION.— 
(A) IN GENERAL.—If the Secretary makes 
a payment under paragraph (1), the Secretary 
shall be subrogated to the rights of the recipi-
ent of the payment as specified in the guar-
antee or related agreements including, if appro-
priate, the authority (notwithstanding any other 
provision of law)— 
(i) to complete, maintain, operate, 
lease, or otherwise dispose of any property 
acquired pursuant to such guarantee or re-
lated agreements; or 
(ii) to permit the mortgagor, pursuant 
to an agreement with the Secretary, to 
continue to occupy the property subject to 
the mortgage, if the Secretary determines 
such occupancy to be appropriate. 
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101 
(B) SUPERIORITY OF RIGHTS.—The rights 
of the Secretary, with respect to any property 
acquired pursuant to a guarantee or related 
agreements, shall be superior to the rights of 
any other person with respect to the property. 
(C) TERMS
AND
CONDITIONS.—A guar-
antee agreement shall include such detailed 
terms and conditions as the Secretary deter-
mines appropriate to protect the interests of the 
United States in the case of default. 
(3) FULL FAITH AND CREDIT.—The full faith 
and credit of the United States is pledged to the 
payment of all guarantees issued under this section 
with respect to principal and interest. 
(g) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
(1) ELIGIBLE MORTGAGE.—The term ‘‘eligible 
mortgage’’ means a mortgage that meets the re-
quirements under subsection (b). 
(2) GREEN PORTION.—The term ‘‘green por-
tion’’ means, with respect to an eligible mortgage, 
the portion of the mortgage principal referred to in 
subsection (b)(2) that is attributable, as determined 
in accordance with regulations issued by the Sec-
retary, to the increased costs incurred in financing 
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102 
provision of sustainable building elements for the 
housing for which the mortgage was made, as com-
pared to the costs that would have been incurred in 
financing the provision of other building elements 
for the housing for the same purposes that are com-
monly or conventionally used but are not sustainable 
building elements. 
(3) GUARANTEED PORTION.—The term ‘‘guar-
anteed portion’’ means, with respect to an eligible 
mortgage guaranteed under this section, the green 
portion of the mortgage that is so guaranteed. 
(4) MORTGAGE.—The term ‘‘mortgage’’ has the 
meaning given such term in section 201 of the Na-
tional Housing Act (12 U.S.C. 1707). 
(5) MULTIFAMILY HOUSING.—The term ‘‘multi-
family housing’’ means a residential property con-
sisting of five or more dwelling units. 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development. 
(7) SINGLE-FAMILY HOUSING.—The term ‘‘sin-
gle-family housing’’ means a residential property 
consisting of one to four dwelling units. 
(8) SUSTAINABLE
BUILDING
ELEMENT.—The 
term ‘‘sustainable building element’’ means such 
building elements, as the Secretary shall define, that 
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103 
have energy efficiency or environmental sustain-
ability qualities that are superior to such qualities 
for other building elements for the same purposes 
that are commonly or conventionally used. 
(h) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated for costs (as such term is 
defined in section 502 of the Federal Credit Reform Act 
of 1990 (2 U.S.C. 661a) of guarantees under this section 
$500,000,000 for each of fiscal years 2010 through 2014. 
(i) REGULATIONS.—The Secretary shall issue any 
regulations necessary to carry out this section. 
Æ 
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