#aadth ,,congress #ast ,session ,h4 ,r4 #biig ,,an ,,act ,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 ,private ,investment in ,housing ,act of #bjae4 #b4 ,budget-neutral demonstration program for energy and water conservation improvements at multifamily residential units 7a7 ,establishment ,the ,secretary of ,housing and ,urban ,development 7in this section referred to as the ,secretary7 shall establish a demonstration program under which the ,secretary may execute budget-neutral1 performance-based agreements in fiscal years #bjaf through #bjai 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 that-- 7,i7 shall serve as a payment threshold for the term of the agreement2 and 7,,ii7 requires that payments shall be contingent on realized cost savings associated with reduced utility consumption in the participating properties4 7ii7 ,limitations ,a payment made by the ,secretary under an agreement under this section-- 7,i7 shall be contingent on documented utility savings2 and 7,,ii7 shall 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 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 ,an agreement under this section with an entity shall provide that the entity shall cover costs associated with third-party verification under this subparagraph4 7#b7 ,terms of performance-based agreements ,a performance-based agreement under this section shall include-- 7,a7 the period that the agreement will be in effect and during which payments may be made1 which may not be longer than #ab years2 7,b7 the performance measures that will serve as payment thresholds during the term of the agreement2 7,c7 an audit protocol for the properties covered by the agreement2 7,d7 a requirement that payments shall be contingent on realized cost savings associated with reduced utility consumption in the participating properties2 and 7,e7 such other requirements and terms as determined to be appropriate by the ,secretary4 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 that1 either jointly or individually1 demonstrate significant experience relating to-- 7i7 financing or operating properties receiving assistance under a program identified in subsection 7a72 7ii7 oversight of energy or water conservation programs1 including oversight of contractors2 and 7iii7 raising capital for energy or 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 7#e7 ,properties ,a property may only be included in the demonstration under this section only if the property is subject to affordability restrictions for at least #ae years after the date of the completion of any conservation improvements made to the property under the demonstration program4 ,such restrictions may be made through an extended affordability agreement for the property under a new housing assistance payments contract with the ,secretary of ,housing and ,urban ,development or through an enforceable covenant with the owner of the property4 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 and ,financial ,services of the ,house of ,representatives and the ,committees on ,appropriations and ,banking1 ,housing1 and ,urban ,affairs of 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 ,passed the ,house of ,representatives ,july #ad1 #bjae4;,clerk4