
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[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.
