The U.S. House of Representatives passed a bill that would help leverage private investment to fund upgrades to water and energy systems in aging HUD-assisted housing. The Private Investment in Housing Act (HR 2997) authorizes a “pay-for-success” demonstration that allows HUD to enter into contracts with outside entities. The outside entities would raise private capital to make the water and energy upgrades. Once HUD verifies the utility savings from those investments, it would pay the outside entity, which would in turn pay its investors.
The bill is on its way to the Senate. According to Enterprise, if the Senate passes the bill, it has a strong chance of being signed into law by the President.
Senators Rob Portman (R-OH) and Jeanne Shaheen (D-NH) introduced Energy Savings and Industrial Competitiveness Act of 2015 in April, which also includes the pay-for-success demonstration.
More modest energy efficiency legislation was signed into law earlier this year.
