Laws & Regs

From the U.S. Code Online via GPO Access

[wais.access.gpo.gov]

[Laws in effect as of January 2, 2001]

[Document not affected by Public Laws enacted between

January 2, 2001 and January 22, 2002]

[CITE: 42USC12712]

TITLE 42--THE PUBLIC HEALTH AND WELFARE

CHAPTER 130--NATIONAL AFFORDABLE HOUSING

SUBCHAPTER I--GENERAL PROVISIONS AND POLICIES

Sec. 12712. 5-year energy efficiency plan

(a) Establishment

The Secretary of Housing and Urban Development shall establish a

plan for activities to be undertaken and policies to be adopted by the

Secretary within the 5-year period beginning upon the submission of the

plan to the Congress under subsection (d) of this section to provide

for, encourage, and improve energy efficiency in newly constructed,

rehabilitated, and existing housing. In developing the plan, the

Secretary shall consider, as appropriate, any energy assessments under

section 944.

(b) Initial plan

The Secretary of Housing and Urban Development shall establish the

first plan under this section not later than the expiration of the 1-

year period beginning on November 28, 1990.

(c) Updates

The Secretary of Housing and Urban Development shall revise and

update the plan under this section not less than once for each 2-year

period, the first such 2-year period beginning on the date of the

submission of the initial plan under subsection (b) of this section to

the Congress (as provided in subsection (d) of this section). Each such

update shall revise the plan for the 5-year period beginning upon the

submission of the updated plan to the Congress.

(d) Submission to Congress

The Secretary of Housing and Urban Development shall submit the

initial plan established under subsection (b) of this section and any

updated plans under subsection (c) of this section to the Congress not

later than the date by which such plans are to be established or updated

under such paragraphs.

(Pub. L. 101-625, title IX, Sec. 945, Nov. 28, 1990, 104 Stat. 4416.)

References in Text

Section 944, referred to in subsec. (a), is section 944 of Pub. L.

101-625, which is set out below.

Codification

Section was enacted as part of title IX of the Cranston-Gonzalez

National Affordable Housing Act, and not as part of title I of such Act

which comprises this subchapter.

Energy Efficient Mortgages Pilot Program

Pub. L. 102-550, title V, Sec. 513, Oct. 28, 1992, 106 Stat. 3786,

provided that:

``(a) Establishment of Pilot Program.--

``(1) In general.--Not later than 6 months after the date of

enactment of this Act [Oct. 28, 1992], the Secretary of Housing and

Urban Development (hereafter referred to as the `Secretary') shall

establish an energy efficient mortgage pilot program in 5 States, to

promote the purchase of existing energy efficient residential

buildings and the installation of cost-effective improvements in

existing residential buildings.

``(2) Pilot program.--The pilot program established under this

subsection shall include the following criteria, where applicable:

``(A) Origination.--The lender shall originate a housing

loan that is insured under title II of the National Housing Act

[12 U.S.C. 1707 et seq.] in accordance with the applicable

requirements.

``(B) Approval.--The mortgagor's base loan application shall

be approved if the mortgagor's income and credit record is found

to be satisfactory.

``(C) Cost of improvements.--The cost of cost-effective

energy efficiency improvements shall not exceed the greater of--

``(i) 5 percent of the property value (not to exceed

$8,000); or

``(ii) $4,000.

``(3) Authority for mortgagees.--In granting mortgages under the

pilot program established pursuant to this subsection, the Secretary

shall grant mortgagees the authority--

``(A) to permit the final loan amount to exceed the loan

limits established under title II of the National Housing Act

[12 U.S.C. 1707 et seq.] by an amount not to exceed 100 percent

of the cost of the cost-effective energy efficiency

improvements, if the mortgagor's request to add the cost of such

improvements is received by the mortgagee prior to funding of

the base loan;

``(B) to hold in escrow all funds provided to the mortgagor

to undertake the energy efficiency improvements until the

efficiency improvements are actually installed; and

``(C) to transfer or sell the energy efficient mortgage to

the appropriate secondary market agency, after the mortgage is

issued, but before the energy efficiency improvements are

actually installed.

``(4) Promotion of pilot program.--The Secretary shall encourage

participation in the energy efficient mortgage pilot program by--

``(A) making available information to lending agencies and

other appropriate authorities regarding the availability and

benefits of energy efficient mortgages;

``(B) requiring mortgagees and designated lending

authorities to provide written notice of the availability and

benefits of the pilot program to mortgagors applying for

financing in those States designated by the Secretary as

participating under the pilot program; and

``(C) requiring each applicant for a mortgage insured under

title II of the National Housing Act [12 U.S.C. 1707 et seq.] in

those States participating under the pilot program to sign a

statement that such applicant has been informed of the program

requirements and understands the benefits of energy efficient

mortgages.

``(5) Training program.--Not later than 9 months after the date

of enactment of this Act [Oct. 28, 1992], the Secretary, in

consultation with the Secretary of Energy, shall establish and

implement a program for training personnel at relevant lending

agencies, real estate companies, and other appropriate organizations

regarding the benefits of energy efficient mortgages and the

operation of the pilot program under this subsection.

``(6) Report.--Not later than 18 months after the date of

enactment of this Act, the Secretary shall prepare and submit a

report to the Congress describing the effectiveness and

implementation of the energy efficient mortgage pilot program as

described under this subsection, and assessing the potential for

expanding the pilot program nationwide.

``(b) Expansion of Program.--Not later than the expiration of the 2-

year period beginning on the date of the implementation of the energy

efficient mortgage pilot program under this section, the Secretary of

Housing and Urban Development shall expand the pilot program on a

nationwide basis and shall expand the program to include new residential

housing, unless the Secretary determines that either such expansion

would not be practicable in which case the Secretary shall submit to the

Congress, before the expiration of such period, a report explaining why

either expansion would not be practicable.

``(c) Definitions.--For purposes of this section:

``(1) The term `base loan' means any mortgage loan for a

residential building eligible for insurance under title II of the

National Housing Act [12 U.S.C. 1707 et seq.] or title 38, United

States Code, that does not include the cost of cost-effective energy

improvements.

``(2) The term `cost-effective' means, with respect to energy

efficiency improvements to a residential building, improvements that

result in the total present value cost of the improvements

(including any maintenance and repair expenses) being less than the

total present value of the energy saved over the useful life of the

improvement, when 100 percent of the cost of improvements is added

to the base loan. For purposes of this paragraph, savings and cost-

effectiveness shall be determined pursuant to a home energy rating

report sufficient for purposes of the Federal National Mortgage

Association and the Federal Home Loan Mortgage Corporation, or by

other technically accurate methods.

``(3) The term `energy efficient mortgage' means a mortgage on a

residential building that recognizes the energy savings of a home

that has cost-effective energy saving construction or improvements

(including solar water heaters, solar-assisted air conditioners and

ventilators, super-insulation, and insulating glass and film) and

that has the effect of not disqualifying a borrower who, but for the

expenditures on energy saving construction or improvements, would

otherwise have qualified for a base loan.

``(4) The term `residential building' means any attached or

unattached single family residence.

``(d) Rule of Construction.--This section may not be construed to

affect any other programs of the Secretary of Housing and Urban

Development for energy-efficient mortgages. The pilot program carried

out under this section shall not replace or result in the termination of

such other programs.

``(e) Regulations.--The Secretary shall issue any regulations

necessary to carry out this section not later than the expiration of the

180-day period beginning on the date of the enactment of this Act [Oct.

28, 1992]. The regulations shall be issued after notice and opportunity

for public comment pursuant to the provisions of section 553 of title 5,

United States Code (notwithstanding subsections (a)(2), (b)(B), and

(d)(3) of such section).

``(f) Authorization of Appropriations.--There are authorized to be

appropriated such sums as may be necessary to carry out this section.''

Similar provisions were contained in Pub. L. 102-486, title I,

Sec. 106, Oct. 24, 1992, 106 Stat. 2792.

Energy Assessment Report

Section 944 of Pub. L. 101-625 directed Secretary of Housing and

Urban Development to submit a report to Congress, not later than one

year after Nov. 28, 1990, assessing any activity undertaken by the

Secretary to increase energy efficiency in housing, such report to

include an analysis of the Aug. 15, 1990, DOE-HUD program to expand

energy efficiency and increase affordability of federally-assisted

housing, and provided that in such report Secretary of Housing and Urban

Development (in consultation with Secretary of Energy) was to establish,

and include a description of, a standard measure by which changes over

time in residential energy efficiency could be compared.

Uniform Mortgage Financing Plan for Energy Efficiency

Section 946 of Pub. L. 101-625, as amended by Pub. L. 102-486, title

I, Sec. 105(b), Oct. 24, 1992, 106 Stat. 2792; Pub. L. 102-550, title

IX, Sec. 914(b), Oct. 28, 1992, 106 Stat. 3877, provided that:

``(a) Uniform Plan.--The Secretary of Housing and Urban Development,

in consultation with the Secretary of Energy, shall promulgate a uniform

plan to make housing more affordable through energy efficient mortgages

(as such term is defined in section 104 of this Act [42 U.S.C. 12704]).

The plan shall be promulgated not later than 2 years after the date of

the enactment of the Cranston-Gonzalez National Affordable Housing Act

[Nov. 28, 1990].

``(b) Task Force.--To develop the plan, the Secretary shall form a

task force to make recommendation[s] on financing energy efficiency in

private mortgages, through the policies of Federal agencies and

federally chartered financial institutions, mortgage bankers,

homebuilders, real estate brokers, private mortgage insurers, energy

suppliers, and nonprofit housing and energy organizations. The task

force shall include, but not be limited to, individuals representing the

Federal Housing Administration mortgage programs of the Department of

Housing and Urban Development, the Farmers Home Administration mortgage

loan and insurance programs of Department of Agriculture, the Federal

Home Loan Mortgage Corporation, and the Federal National Mortgage

Association. The Task Force shall determine whether notifying potential

home purchasers of the availability of energy efficient mortgages would

promote energy efficiency in residential buildings, and if so, the Task

Force shall recommend appropriate notification guidelines, and agencies

and organizations referred to in the preceding sentence are authorized

to implement such guidelines.''

Energy Efficiency Demonstration

Section 961 of Pub. L. 101-625 directed Secretary of Housing and

Urban Development to establish a program to demonstrate various methods

of improving the energy efficiency of existing housing, provided for

funding, provided that the demonstration determine appropriate design,

improvement, and rehabilitation methods and practices for increasing

residential energy efficiency in housing already constructed, and

directed Secretary, as soon as practicable after Sept. 30, 1991, to

submit to Congress a report setting forth the findings and

recommendations of the Secretary as a result of the demonstration.