To establish a direct loan program for providing energy efficiency improvements for single family housing, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Helping Home Owners Make Energy-
Efficiency Residential Upgrades Now Act of 2008'' or the ``H-HOMERUN 
Act of 2008''.

SEC. 2. RESIDENTIAL ENERGY EFFICIENCY DIRECT LOAN PROGRAM.

    (a) Establishment.--The Secretary of Housing and Urban Development 
(in this Act referred to as the ``Secretary'') shall establish and 
implement a program to make direct loans, to the extent amounts are 
provided for costs of such loans pursuant to subsection (f), for 
providing energy efficiency improvements for single family housing.
    (b) Use of Loan Funds.--A direct loan made under this section may 
be made for the costs of the acquisition or installation, or both the 
acquisition and installation, as applicable, of any energy efficiency 
improvement, including--
            (1) a solar heating system;
            (2) a solar cooling system;
            (3) the application of a residential energy conservation 
        measure;
            (4) a photovoltaic energy system;
            (5) a geothermal heat pump system;
            (6) a residential wind turbine;
            (7) a ``green roof'' (a roof of a building that is 
        partially or completely covered with vegetation and soil, or a 
        growing medium, planted over a waterproofing membrane); and
            (8) any cost-effective energy efficiency improvement 
        eligible to be financed under a mortgage insured under the 
        Energy Efficient Mortgage program established by section 513 of 
        the Housing and Community Development Act of 1992 (42 U.S.C. 
        12712 note) and expanded pursuant to section 513(b) of such 
        Act.
    (c) Loan Eligibility Requirements.--
            (1) Contract requirement.--The Secretary may make a direct 
        loan under this section only if the Secretary has entered into 
        a contract with a borrower setting forth the terms of the loan.
            (2) Repayment requirement.--The Secretary shall require 
        full repayment of the principal amount of the loan.
            (3) Interest rate.--Loans made under this section shall 
        bear interest at a rate that is--
                    (A) fixed over the term of the loan;
                    (B) at least 2 percentage points less than the 
                average rate available from a private source for a 
                comparable loan at the time of the making of the loan; 
                and
                    (C) subject to such other requirements or 
                limitations as the Secretary may prescribe.
            (4) Investment requirement.--A borrower shall pay on 
        account of the energy efficiency improvements for which the 
        loan is made at least 5 percent of the Secretary's estimate of 
        the cost of acquisition, installation, or both acquisition and 
        installation, as applicable, in cash or its equivalent.
            (5) Credit underwriting standards.--The Secretary shall 
        establish credit underwriting standards to evaluate the 
        eligibility of borrowers to receive loans under this section.
            (6) Security for loan.--The Secretary shall determine the 
        reasonable value of the interest in property that will serve as 
        security for a direct loan made under this section and shall 
        establish procedures for appraisals upon which the Secretary 
        may base such determinations.
            (7) Repayment schedule.--Direct loans made under this 
        section shall be repaid in monthly installments.
            (8) Principal residence requirement.--A direct loan made 
        pursuant to this section shall be used only for providing 
        energy efficiency improvements for the principal residence of 
        the borrower.
            (9) Other terms.--Direct loans made under this section 
        shall be subject to such other terms, conditions, and 
        restrictions as the Secretary may require.
    (d) Energy Efficiency Requirements.--
            (1) Cost-effective energy efficiency improvements.--The 
        Secretary shall require, for any energy efficiency improvement 
        for single family housing for which a direct loan is made under 
        this section, that the total present value cost of the 
        improvement (including any maintenance and repair expenses) is 
        less than the total present value of the energy saved over the 
        useful life of the improvement.
            (2) Energy efficiency determination.--
                    (A) Determination.--For purposes of paragraph (1), 
                the cost of the improvement and an estimation of the 
                energy savings of the improvement shall be determined 
                pursuant to a home energy rating report based upon a 
                physical inspection of the property by a home energy 
                ratings system, or energy consultant, approved by the 
                Secretary.
                    (B) Qualified inspection and determination.--For 
                purposes of subparagraph (A), the physical inspection 
                shall be conducted and the determination shall be made 
                by an individual certified by an appropriate national 
                organization as the Secretary may provide.
    (e) Definition of Single Family Housing.--For the purposes of this 
section, the term ``single family housing'' means any residential 
structure consisting of from 1 to 4 dwelling units.
    (f) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        cover the costs (as such term is defined in section 502 of the 
        Congressional Budget Act of 1974) of direct loans under this 
        section such sums as may be necessary for each of the fiscal 
        years 2009 to 2019.
            (2) Aggregate outstanding limitation.--The aggregate 
        outstanding principal balance of direct loans made under this 
        section shall not at any time exceed $100,000,000,000.

SEC. 3. HUD ENERGY EFFICIENT MORTGAGE PROGRAM AMENDMENTS.

    (a) Cost of Improvements.--Subparagraph (C) of section 513(a)(2) of 
the Housing and Community Development Act of 1992 (42 U.S.C. 12712 
note) is amended to read as follows:
                    ``(C) Cost of improvements.--The Secretary shall 
                not establish a maximum limitation on the cost of the 
                cost-effective energy efficiency improvements to be 
                financed by the energy efficient mortgage provided 
                under the program established by this section and as 
                expanded pursuant to subsection (b).''.
    (b) Investment Requirement.--Section 513(a)(2) of the Housing and 
Community Development Act of 1992 (42 U.S.C. 12712 note) is amended by 
adding at the end the following new subparagraph:
                    ``(D) Investment requirement.--A mortgagor shall 
                pay on account of the cost-effective energy efficiency 
                improvements for which the mortgage is made at least 5 
                percent of the Secretary's estimate of the cost of 
                acquisition, installation, or both acquisition and 
                installation, as applicable, in cash or its 
                equivalent.''.
    (c) Cost-Effective Determination.--Paragraph (2) of section 513(c) 
of the Housing and Community
Development Act of 1992 (42 U.S.C. 12712 note) is amended--
            (1) in the last sentence by--
                    (A) striking ``sufficient for'' and all that 
                follows; and
                    (B) inserting ``based upon a physical inspection of 
                the property by a home energy ratings system, or energy 
                consultant, approved by the Secretary.'' after 
                ``pursuant to a home energy rating report''; and
            (2) by adding at the end the following new sentence: ``Such 
        physical inspection shall be conducted and such determination 
        shall be made by an individual certified by an appropriate 
        national organization as the Secretary may provide.''

Summary: Helping Home Owners Make Energy-Efficiency Residential Upgrades Now Act of 2008 or the H-HOMERUN Act of 2008 - Requires the Secretary of Housing and Urban Development to establish a program to make direct loans for energy efficiency improvements for single family housing. Sets forth loan requirements.

Directs the Secretary to require that the total present value cost of such improvement is less than the total present value of the energy saved over the useful life of the improvement. Requires such cost and savings to be determined pursuant to a home energy rating report based upon a physical inspection of the property by a home energy rating system, or energy consultant, approved by the Secretary.

Requires the aggregate outstanding principal balance of direct loans to not at any time exceed $100 billion.

Amends the Housing and Community Development Act of 1992 to prohibit the Secretary from establishing a maximum limitation on the cost of the cost-effective energy efficiency improvements to be financed by an energy efficient mortgage provided under the Energy Efficient Mortgages Program. Requires a mortgagor to pay on account of the cost-effective energy efficiency improvements for which the mortgage is made at least 5% of the Secretary's estimate of the cost of acquisition and/or installation.