,i  #aacth ,,congress  #b;d ,session    
,h4 ,r4 #eajd  ,,in ,,the ,,house ,,of  
,,representatives  ,july #ad1 #bjad ,mr4
 ,ross 7for himself1 ,mr4 ,himes1 ,mr4  
,delaney1 ,mr4 ,duffy1 ,mr4 ,cleaver1   
and ,mrs4 ,wagner7 introduced the       
following bill2 which was referred to   
the ,committee on ,financial ,services  
,a ,,bill  ,to authorize the ,secretary 
of ,housing and ,urban ,development to  
carry out a demonstration program to    
enter into budget-neutral1              
performance-based contracts for energy  
and water conservation improvements for 
multifamily residential units4  #a4     
,short title ,this ,act may be cited as 
the ,pay ,for ,success ,affordable      
,housing ,energy ,modernization ,act of 
#bjad4  #b4  ,budget-neutral            
demonstration program for energy and    
water conservation improvements at      
multifamily residential units  7a7      
,establishment  ,the ,secretary of      
,housing and ,urban ,development        
7referred to in this section as the     

,secretary7 shall establish a           
demonstration program under which1      
during the period beginning on the date 
of enactment of this ,act1 and ending on
 ,september #cj1 #bjag1 the ,secretary  
may enter into budget-neutral1          
performance-based agreements that result
 in a reduction in energy or water costs
 with such entities as the ,secretary   
determines to be appropriate under which
 the entities shall carry out projects  
for energy or water conservation        
improvements at not more than #bj1jjj   
residential units in multifamily        
buildings participating in--  7#a7 the  
project-based rental assistance program 
under section #h of the ,united ,states 
,housing ,act of #aicg 7#db ,u4,s4,c4   
#adcg;f71 other than assistance provided
 under section #h7o7 of that ,act2  7#b7
 the supportive housing for the elderly 
program under section #bjb of the       
,housing ,act of #aiei 7#ab ,u4,s4,c4   
#agjaq72 or  7#c7 the supportive housing
 for persons with disabilities program  

under section #haa7;d77#b7 of the       
,cranston-,gonzalez ,national           
,affordable ,housing ,act 7#db ,u4,s4,c4
 #hjac7;d77#b774  7b7  ,requirements    
7#a7  ,payments contingent on savings   
7,a7  ,in general  ,the ,secretary shall
 provide to an entity a payment under an
 agreement under this section only      
during applicable years for which an    
energy or water cost savings is achieved
 with respect to the applicable         
multifamily portfolio of properties1 as 
determined by the ,secretary1 in        
accordance with subparagraph 7,b74  7,b7
  ,payment methodology  7i7  ,in general
  ,each agreement under this section    
shall include a pay-for-success         
provision--  7,i7 that will serve as a  
payment threshold for the term of the   
agreement2 and  7,,ii7 pursuant to which
 the ,department of ,housing and ,urban 
,development shall share a percentage of
 the savings at a level determined by   
the ,secretary that is sufficient to    
cover the administrative costs of       

carrying out this section4  7ii7        
,limitations  ,a payment made by the    
,secretary under an agreement under this
 section shall--  7,i7 be contingent on 
documented utility savings2 and  7,,ii7 
not exceed the utility savings achieved 
by the date of the payment1 and not     
previously paid1 as a result of the     
improvements made under the agreement4  
7,c7  ,third-party verification         
,savings payments made by the ,secretary
 under this section shall be based on a 
measurement and verification protocol   
that includes at least--  7i7           
establishment of a weather-normalized   
and occupancy-normalized utility        
consumption baseline established        
pre-retrofit2  7ii7 annual third-party  
confirmation of actual utility          
consumption and cost for owner-paid     
utilities2  7iii7 annual third-party    
validation of the tenant utility        
allowances in effect during the         
applicable year and vacancy rates for   
each unit type2 and  7iv7 annual        

third-party determination of savings to 
the ,secretary4  7#b7  ,term  ,the term 
of an agreement under this section shall
 be not longer than #ab years4  7#c7    
,entity eligibility  ,the ,secretary    
shall--  7,a7 establish a competitive   
process for entering into agreements    
under this section2 and  7,b7 enter into
 such agreements only with entities that
 demonstrate significant experience     
relating to--  7i7 financing and        
operating properties receiving          
assistance under a program described in 
subsection 7a72  7ii7 oversight of      
energy and water conservation programs1 
including oversight of contractors2 and 
7iii7 raising capital for energy and    
water conservation improvements from    
charitable organizations or private     
investors4  7#d7  ,geographical         
diversity  ,each agreement entered into 
under this section shall provide for the
 inclusion of properties with the       
greatest feasible regional and ,state   
variance4  7c7  ,plan and reports  7#a7 

,plan  ,not later than #ij days after   
the date of enactment of this ,act1 the 
,secretary shall submit to the          
,committees on ,appropriations of the   
,house of ,representatives and the      
,senate a detailed plan for the         
implementation of this section4  7#b7   
,reports  ,not later than #a year after 
the date of enactment of this ,act1 and 
annually thereafter1 the ,secretary     
shall--  7,a7 conduct an evaluation of  
the program under this section2 and     
7,b7 submit to ,congress a report       
describing each evaluation conducted    
under subparagraph 7,a74  7d7  ,funding 
,for each fiscal year during which an   
agreement under this section is in      
effect1 the ,secretary may use to carry 
out this section any funds appropriated 
to the ,secretary for the renewal of    
contracts under a program described in  
subsection 7a74