H.R. 6249 (110th): H-HOMERUN Act of 2008

110th Congress, 2007–2009. Text as of Jun 12, 2008 (Introduced).

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I

110th CONGRESS

2d Session

H. R. 6249

IN THE HOUSE OF REPRESENTATIVES

June 12, 2008

introduced the following bill; which was referred to the Committee on Financial Services

A BILL

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

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 .

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.

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.