Reps. Huffman and Heck Introduce Bill to Help Homeowners Invest In Energy Efficiency

September 18, 2014

WASHINGTON­—Reps. Jared Huffman (D-California) and Denny Heck (D-Washington) last night  introduced a bill to help homeowners make investments in their homes and save money on electricity costs. The new bill, the Home Improvement Modernization Act (H.R. 5506), would improve and modernize the Title I Home and Property Improvement Loan Program, one of America’s oldest tools for assisting homeowners to remodel and upgrade their homes, and spur homeowners to invest in efficiency upgrades, photovoltaic panels, house weatherization, and new HVAC systems. These loans are also frequently used to improve home fire safety, allow the elderly to age in place, and increase accessibility for disabled individuals.

“Since the program was last modified in 1992, Title I loans have helped hundreds of thousands of homeowners invest in improving their homes.  It’s time to update this critical program and ensure that homeowners can make investments in new technologies that will save them money. This bill is a win for homeowners, our local economies, and our environment,” Huffman said. “By increasing investments in energy efficiency and renewable energy sources, we’ll provide another important tool in the fight against climate change.”

“This is about smart policy that creates jobs that would result in more savings for homeowners at a time when every penny counts,” Heck said. “Working closely with the Department of Housing and Urban Development, I’m confident that this bill will put people to work and modernize homes to meet the existing needs of Americans.”

H.R. 5506 would:

  • Update Title I loan limits to account for inflation since 1992 and index these loan limits to inflation for future years.
  • Increase Title I loan limits by 50% if at least half of the total loan is used for energy efficiency upgrades.
  • Provide the Federal Housing Administration with authority to ensure that any additional risk associated with these loans is properly offset.

Currently, the maximum loan available for a single family house is $25,000 for a 20 year term.

A factsheet on the bill can be found HERE.

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