Bill > HR5104

This bill, titled the "Pay For Success Affordable Housing Energy Modernization Act of 2014," authorizes the Secretary of Housing and Urban Development (HUD) to establish a demonstration program to enter into "budget-neutral, performance-based" contracts for energy and water conservation improvements in multifamily residential units. "Budget-neutral" means the program's costs will be covered by the savings it generates, and "performance-based" means payments are contingent on achieving measurable results. The program, running until September 30, 2017, allows HUD to contract with entities to implement these improvements in up to 20,000 units participating in specific HUD housing assistance programs, such as project-based rental assistance, supportive housing for the elderly, and supportive housing for persons with disabilities. Payments to these entities will only be made in years where energy or water cost savings are documented and verified by a third party, using a specific measurement and verification protocol that includes establishing a baseline, confirming actual consumption, validating tenant allowances, and determining savings. These contracts can last up to 12 years, and HUD must select entities through a competitive process, prioritizing those with experience in financing and operating affordable housing, overseeing conservation programs, and raising capital. The bill also requires HUD to submit an implementation plan and annual reports to Congress on the program's evaluation, and allows the use of funds appropriated for contract renewals within the specified housing programs to carry out this demonstration.