The Department of Housing and Urban Development has a new opportunity to improve the energy- and water-efficiency of HUD-assisted properties.
The recently-passed Fixing America’s Surface Transportation (FAST) Act authorized a Pay for Success multifamily energy and water conservation demonstration. The PFS pilot program allows HUD to enter into contracts with outside entities and raise private investment capital in order to finance energy and water upgrades in HUD-assisted properties. Under the PFS model, investors are only paid back when pre-specified cost savings are achieved.
This legislation originally passed in the House in July 2015 as the Private Investment in Housing Act of 2015 (HR 2997). House Financial Services Committee Chairman Jeb Hensarling (R-TX) included the provision as an amendment to the FAST Act, which President Obama signed into law on December 4, 2015.
Hensarling also included in the FAST Act:
- Housing Assistance Efficiency Act (HR 1047), which allows a private non-profit organizations to administer permanent housing rental assistance provided through the Continuum of Care Program.
- Tenant Income Verification Relief Act (HR 233), which aims to reduce the burden placed on tenants to justify their eligibility for federal assistance housing problems by requiring income certification every three years rather than annually.
- Preservation Enhancement and Savings Opportunity Act (HR 2482), which allows owners of HUD federally-subsidized multifamily developments to access remaining profits after all operating expenses and maintenance costs.
