[Federal Register Volume 75, Number 217 (Wednesday, November 10, 2010)]
[Notices]
[Pages 69112-69120]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-28015]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-5450-N-01]
Federal Housing Administration (FHA): Notice of FHA PowerSaver
Home Energy Retrofit Loan Pilot Program: Request for Comments and
Expressions of Interest
AGENCY: Office of the Assistant Secretary for Housing--Federal Housing
Commissioner, HUD.
ACTION: Notice.
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SUMMARY: This notice announces HUD's proposal to conduct an FHA Home
Energy Retrofit Loan Pilot Program (Retrofit Pilot Program or Pilot
Program) known as FHA PowerSaver. The Consolidated Appropriations Act,
2010 directs HUD to conduct an Energy Efficient Mortgage Innovation
pilot program targeted to the single family housing market. The
Retrofit Pilot Program is designed by HUD to meet this statutory
directive and provides funding to support that effort.
Under the Retrofit Pilot Program, HUD, through FHA-approved
lenders, will insure loans for homeowners who are seeking to make
energy improvements to their homes. HUD intends to select a limited
number of lenders to participate in the Retrofit Pilot Program. The
Pilot Program will be for loans originated during a 2-year period, will
be restricted to lenders approved by HUD to participate in the Pilot
Program, and will be conducted in geographic areas identified by HUD as
optimum locations to conduct the Pilot Program. In making these
determinations, HUD will consider the factors and criteria that are
proposed in this notice to establish the framework for the Pilot
Program, and for which HUD specifically solicits public comment.\1\
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\1\ Section 470 of the Housing and Urban-Rural Recovery Act of
1983 (42 U.S.C. 3542) provides that: ``No demonstration program not
expressly authorized in law may be commenced by the Secretary of
Housing and Urban Development until (1) a description of such
demonstration program is published in the Federal Register, which
description may be included in a notice of funding availability; and
(2) there expires a period of sixty calendar days following the date
of such publication, during which period the Secretary shall fully
consider any public comments submitted with respect to such
demonstration program.'' The Retrofit Pilot Program is specifically
authorized by the Consolidated Appropriations Act, 2010.
Accordingly, HUD is not required to solicit comment on this
demonstration. Nevertheless, HUD welcomes public comment on the
proposed pilot program.
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For this Pilot Program, HUD will deploy up to $25 million
appropriated by the Act for an Energy Efficient Mortgage Innovation
Fund pilot program directed at the single family housing market. HUD
will utilize those funds primarily to provide incentive payments with
grant funds to participating lenders to support approved activities
that deliver bona fide benefits to borrowers, with remaining funds
available to support the evaluation of the Pilot Program.
Following the public comment period, HUD will announce the lenders
that have been selected to participate in the Pilot Program, the
geographic areas in which the Pilot Program will be conducted, and any
modifications to the Retrofit Pilot Program made in response to public
comment and/or in response to HUD's further consideration of how the
pilot program should be structured. At the conclusion of the Pilot
Program, HUD will assess the results of the Retrofit Pilot Program, and
determine any additional action based on that assessment. HUD will
assess the extent to which energy retrofits under the Pilot Program
delivered expected benefits in terms of energy reductions, cost
savings, and property value improvement, among other results.
In addition to seeking comments on the proposed Pilot Program, HUD
invites lenders interested in participating in this Pilot Program to
notify HUD of such interest as provided in Appendix A to this notice.
DATES: Comment Due Date: December 27, 2010.
ADDRESSES: Note: The following procedures pertain to the submission of
general comments on this notice. Lenders interested in participating in
this Pilot Program must e-mail their Expressions of Interest to
[email protected] in accordance with Appendix A of this notice.
Interested persons are invited to submit comments regarding this
notice to the Regulations Division, Office of General Counsel,
Department of Housing and Urban Development, 451 7th Street, SW., Room
10276, Washington, DC 20410-0500. Communications must refer to the
above docket number and title. There are two methods for submitting
public comments. All submissions must refer to the above docket number
and title.
1. Submission of Comments by Mail. Comments may be submitted by
mail to the Regulations Division, Office of General Counsel, Department
of Housing and Urban Development, 451 7th Street, SW., Room 10276,
Washington, DC 20410-0500.
2. Electronic Submission of Comments. Interested persons may submit
comments electronically through the Federal eRulemaking Portal at
http://www.regulations.gov. HUD strongly encourages commenters to
submit comments electronically. Electronic submission of comments
allows the commenter maximum time to prepare and submit a comment,
ensures timely receipt by HUD, and enables HUD to make them immediately
available to the public. Comments submitted electronically through the
http://www.regulations.gov Web site can be viewed by other commenters
and interested members of the public. Commenters should follow the
instructions provided on that site to submit comments electronically.
Note: To receive consideration as public comments, comments must
be submitted through one of the two methods specified above. Again,
all submissions must refer to the docket number and title of the
notice. No Facsimile Comments. Facsimile (FAX) comments are not
acceptable.
Public Inspection of Public Comments. All properly submitted
comments and communications submitted to HUD will be available for
public inspection and copying between 8 a.m. and 5 p.m. weekdays at the
above address. Due to security measures at the HUD Headquarters
building, an advance appointment to review the public comments must be
scheduled by calling the Regulations Division at 202-708-3055 (this is
not a toll-free number). Individuals with speech or hearing impairments
may access this number via TTY by calling the Federal
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Information Relay Service at 800-877-8339. Copies of all comments
submitted are available for inspection and downloading at http://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Patricia McBarron, Office of Single
Family Housing Development, Office of Housing, Department of Housing
and Urban Development, 451 7th Street, SW., Washington, DC 20410-8000;
telephone number 202-708-2121 (this is not a toll-free number). Persons
with hearing or speech impairments may access this number through TTY
by calling the toll-free Federal Information Relay Service at 800-877-
8339.
SUPPLEMENTARY INFORMATION:
I. Background
A. Energy Efficient Mortgage Innovation Pilot Program
The Consolidated Appropriations Act, 2010 (Pub. L. 111-117,
approved December 16, 2009, 123 Stat. 3034) (2010 Appropriations Act),
which appropriated Fiscal Year (FY) 2010 funds for HUD, among other
agencies, appropriated $50 million for an Energy Innovation Fund to
enable HUD to catalyze innovations in the residential energy efficiency
sector that have the promise of replicability and help create a
standardized home energy efficient retrofit market. Of the $50 million
appropriated for the Energy Innovation Fund, the 2010 Appropriations
Act stated that ``$25,000,000 shall be for the Energy Efficient
Mortgage Innovation pilot program directed at the single family housing
market.'' (See Pub. L. 111-117, at 123 Stat. 3089.)
In considering how to structure the pilot program directed by the
2010 Appropriations Act, HUD looked to the findings of the
Administration's Recovery through Retrofit Report, which specifically
addressed retrofitting homes for energy efficiency, and the suitability
of building the pilot program by supplementing FHA's Title I Property
Improvement Loan Insurance program.
B. Recovery Through Retrofit
On October 19, 2009, the Vice President and the White House Middle
Class Task Force released the Recovery through Retrofit Report (RTR
Report), which builds on the foundation laid out in the American
Recovery and Reinvestment Act (Pub. L. 111-5, approved February 17,
2009) to expand green job opportunities in the United States and boost
energy savings for middle class Americans by retrofitting homes for
energy efficiency.\2\ The White House Council on Environmental Quality
developed the Report through an interagency process, involving eleven
Departments and Agencies (including HUD) and 6 White House offices.
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\2\ Middle Class Task Force and Council on Environmental
Quality, Recovery through Retrofit (2009). http://www.whitehouse.gov/assets/documents/Recovery_Through_Retrofit_Final_Report.pdf.
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The RTR Report recognizes that making American homes and buildings
more energy efficient presents an unprecedented opportunity for
communities throughout the country. The funding of home retrofit
projects can potentially help people earn money as home retrofit
workers, while also helping them save money by lowering their utility
bills. By encouraging nationwide home energy efficiency improvements,
workers of all skill levels can be trained, engaged, and have the
opportunity to participate in expanding a national home retrofit
market. According to the RTR Report, there are almost 130 million homes
in this country,\3\ generating more than 20 percent of our Nation's
carbon dioxide emissions.\4\ The RTR Report indicates that existing
home energy retrofit techniques and technologies can reduce home energy
use by up to 40 percent per home and lower associated greenhouse gas
emissions by up to 160 million metric tons annually by the year
2020.\5\ The RTR Report also stated that home energy efficiency
retrofits have the potential to reduce home energy bills by $21 billion
annually.\6\
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\3\ U.S. Census Bureau, American Housing Survey National Tables:
2007, All Housing. http://www.census.gov/hhes/www/housing/ahs/ahs07/ahs07.html.
\4\ U.S. Energy Information Agency, ``U.S. Carbon Dioxide
Emissions from Energy Sources: 2008 Flash Estimate.'' http://www.eia.doe.gov/oiaf/1605/flash/pdf/flash.pdf.
\5\ Choi Granade, H; J Creyts; A Derkach; Ph Farese; and S.
Nyquist, K. Ostrowski, ``Unlocking Energy Efficiency in the U.S.
Economy,'' July 2009.
\6\ Id.
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The RTR Report identified several barriers that have prevented a
self-sustaining retrofit market from forming. Among other barriers, the
RTR Report found that homeowners face high upfront costs and many are
concerned that they will be prevented from recouping the value of their
investment if they choose to sell their home. The upfront costs of home
retrofit projects are often beyond the average homeowner's budget.\7\
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\7\ Middle Class Task Force and Council on Environmental
Quality, Id.
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C. Title I Property Improvement Loan Insurance Program
Through the Title I Property Improvement Loan Insurance program
(Title I program), FHA offers consumers the opportunity to obtain
affordable home improvement loans by insuring loans made by private
lenders to improve properties that meet certain requirements. Lending
institutions make loans from their own funds to eligible borrowers to
finance these improvements. The program is authorized by section 2 of
Title I of the National Housing Act (12 U.S.C. 1703). Specifically,
under section 2(a) of the National Housing Act, HUD is authorized to
help homeowners finance alterations, repairs, and improvements in
connection with existing structures or manufactured homes. The Title I
program regulations are codified in 24 CFR part 201.
Eligible borrowers include owners of the properties to be improved,
the person leasing the property (provided that the lease will extend at
least 6 months beyond the date when the loan must be repaid), or
someone purchasing the property under a land installment contract. Only
lenders approved by HUD specifically for the Title I program can make
loans covered by Title I loan insurance. Title I loans can be disbursed
directly to the borrower or, if the loan is made through a dealer, the
disbursement will be made jointly to the dealer and the borrower.
Title I program loans may be used to finance permanent property
improvements that protect or improve the basic livability or utility of
the property--including manufactured homes, single family and
multifamily homes, nonresidential structures, and the preservation of
historic homes. The loans can also be used for fire safety equipment.
The Title I program may be used to insure such loans for up to 20 years
on either single family or multifamily properties. The maximum loan
amount is $25,000 for improving a single family home or a
nonresidential structure. Funds can also be used for the construction
of a nonresidential structure. FHA insures private lenders against the
risk of default for up to 90 percent of any single loan, although FHA
liability is capped at the lender's reserve pool--10 percent of the
amount of all insured Title I loans in the financial institution's
portfolio.
D. Goals of the Home Energy Retrofit Loan Pilot Program
FHA's goals for the Pilot Program are: (1) To facilitate the
testing and scaling of a mainstream mortgage product for
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home energy retrofit loans that includes liquidity options for lenders,
resulting in more affordable and widely available loans than are
currently available for home energy retrofits; and (2) to establish a
robust set of data on home energy improvements and their impact--on
energy savings, borrower income, property value, and other metrics--for
the purpose of driving development and expansion of mainstream mortgage
products to support home energy retrofits. More broadly, FHA recognizes
that affordable and available financing in and of itself may not drive
widespread adoption of home energy retrofits in every market; however,
research suggests that lack of financing is a primary barrier.\8\ Thus,
FHA intends for the Pilot Program to help determine the extent to which
affordable and available financing, along with other strategies and
tactics, can increase retrofit activity among homeowners.
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\8\ Choi Granade, H; J Creyts; A. Derkach; Ph. Farese; and
S.Nyquist, K. Ostrowski, Unlocking Energy Efficiency in the U.S.
Economy, July 2009.
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As a result of discussions with national experts in housing finance
and home energy efficiency, HUD determined that utilizing the existing
FHA Title I program, with additional incentives and requirements, is
the most efficient and effective opportunity it could deploy to deliver
federally insured financing to homeowners in markets that are ready and
able to utilize it. After analyzing the viability of the Title I
program to achieve these goals, FHA determined that several changes to
the program are necessary for the purposes of the Pilot Program. These
changes are described in detail in Section II.D. of this notice.
Broadly, the changes are intended to protect consumers, provide low-
cost financing, and generate lender and secondary market participation
in home energy retrofit loans.
Section II of this notice, which immediately follows, presents the
structure, requirements, and criteria that will govern HUD's proposed
Retrofit Pilot Program, and HUD welcomes comment on all aspects of the
proposed pilot program. HUD invites interested lenders to advise HUD of
their interest, as described in Appendix A of this notice, so that HUD
may contact them and explore their interest and the possibility of
their participation in the pilot program. No proprietary information
should be submitted by any interested lender, only expressions of
interest in participating.
After reviewing public comments submitted in response to HUD's
solicitation of comment, HUD will issue a second Federal Register
notice that will formally announce the establishment of the Retrofit
Pilot Program, and the commencement date.
II. The Home Energy Retrofit Loan Pilot Program
A. Authority
The Retrofit Pilot Program is authorized by the provisions of the
Energy Innovation Fund of the 2010 Appropriations Act, which directs
HUD to conduct an Energy Efficient Mortgage Innovation pilot program
targeted to the single family housing market (Pub. L. 111-117, at 123
Stat. 3089). The Pilot Program is based on the requirements of Title I,
section 2 of the National Housing Act (12 U.S.C. 1703). Under section
2(a) of the National Housing Act, HUD is authorized to provide loan
insurance in order to help homeowners finance alterations, repairs, and
improvements in connection with existing structures or manufactured
homes. HUD's implementing regulations are codified at 24 CFR part 201.
B. Duration and Geographic Scope
1. Duration. The Retrofit Pilot Program will be conducted for loans
originated during a period of 2 years commencing on the effective date
specified by the final notice that announces and establishes the Pilot
Program. HUD, however, may extend the duration of the Pilot Program,
after its commencement, beyond the 2-year period to accurately assess
the Pilot's effectiveness. HUD will announce any such extension through
Federal Register notice.
2. Geographic scope. The success of the Retrofit Pilot Program and
its potential to inform further efforts to expand financing for energy-
efficient home retrofits will be advanced by focusing on properties
located in communities that have already taken affirmative steps to
address energy efficiency retrofits. HUD is aware that a number of
communities have already developed the programmatic infrastructure to
help ensure that the critical non-financial components of a holistic
retrofit initiative are in place. In selecting communities in which to
conduct the Pilot Program, HUD will target communities that have
already developed a robust home energy efficiency retrofit
infrastructure.
The Department of Energy's (DOE's) Energy Efficiency and
Conservation Block Grants (EECBG) program is authorized under Title V,
Subtitle E of the Energy Independence and Security Act (EISA), signed
into law on December 19, 2007. Through formula and competitive grants
administered by DOE, this program empowers local communities to make
strategic investments to meet the nation's long-term goals for energy
independence and leadership on climate change.
With funding for the EECBG program provided by the American
Recovery and Reinvestment Act, DOE initiated the Retrofit Ramp-up
Program, now known as the Better Buildings program, a demonstration
program directed to stimulating activities and investments that can:
(1) Deliver verified energy savings from a variety of projects in the
local jurisdiction of the applicant, with a particular emphasis on
efficiency improvements in residential, commercial, industrial, and
public buildings; (2) achieve broader market participation and greater
efficiency savings from building retrofits; (3) highly leverage grant
funding in order to significantly enhance the resources available for
supporting the program; (4) sustain themselves beyond the grant monies
and the grant period by designing a viable strategy for program
sustainability; (5) serve as pilot building retrofit programs that
demonstrate the benefits of gaining economy of scale; and (6) serve as
examples of comprehensive community-scale energy-efficiency approaches
that could be replicated in other communities across the country.
Under the Better Buildings Program, approximately $485 million was
allocated by DOE through competitive grants to initiatives in the
following locations: Austin, TX; 16 towns in Maryland: Berlin,
Cambridge, Chestertown, Cumberland, Denton, Easton, Elkton, Frostburg,
Oakland, Princess Anne, Dundalk, Westminster, Havre de Grace,
Salisbury, Takoma Park, and University Park, MD; Fayette County, PA;
Bedford, NY; Berlin, Nashua, and Plymouth, NH; Boulder County, City and
County of Denver, Garfield County, and Eagle County, CO; Camden, NJ;
Chicago region, IL; Cincinnati, Ohio and northeast Kentucky; Consortium
of 14 Connecticut Towns: Bethany, Cheshire, East Haddam, East Hampton,
Glastonbury, Lebanon, Mansfield, Portland, Ridgefield, Weston,
Westport, Wethersfield, Wilton and Windom; Detroit, Grand Rapids, and
southeast MI; Greensboro, NC; Indianapolis and Lafayette, IN; Kansas
City, MO; Los Angeles, San Francisco Bay Area, Sacramento, San Diego,
and Santa Barbara County, CA; Lowell, MA; Madison, Milwaukee, and
Racine, WI; Maine statewide; Missouri statewide; New York statewide;
Omaha and
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Lincoln, NE; Oregon statewide; Philadelphia, PA; Phoenix, AZ; Riley
County, KS; San Antonio, TX; Seattle, and Bainbridge Island, WA; Select
Southeastern cities: Atlanta GA, Carrboro NC, Chapel Hill, NC,
Charlotte, NC, Charleston, SC, Charlottesville, VA, Decatur GA, Hampton
Roads/Virginia Beach, VA, Huntsville, AL, Jacksonville FL and New
Orleans, LA; Toledo, OH; and U.S. Virgin Islands.
The locations listed above are all eligible markets for lenders to
serve in the Pilot. In addition, FHA will consider lenders' interest in
other communities, subject to an assessment of such communities'
infrastructure for implementing residential retrofit programs. HUD
expects to consult with DOE in such cases. In providing HUD with
Expressions of Interest to Participate, lenders must specify the
market(s) they intend to target.
FHA considered targeting the pilot to a smaller number of markets,
which may have increased the likelihood of lender competition within
some markets, potentially benefitting consumers. FHA determined that
such an approach could limit the number and diversity of lenders that
could participate in the program overall, however. FHA determined it
was important for the Pilot to be open to a reasonably wide range of
lenders--by size and type, as well as service area--especially given
the challenging conditions facing lenders in the current environment,
which may create barriers to participation for some, even if
interested. In selecting lenders to participate, HUD will evaluate the
extent to which lenders intend to provide loans at the most favorable
rate to consumers, thus directly addressing a major benefit that lender
competition would potentially foster.
C. Lender Eligibility
Lender participation in the Retrofit Pilot Program is voluntary. Of
the pool of interested lenders that meet the criteria described in
Section II of this notice, HUD intends to select a limited number of
lenders to participate in the Retrofit Pilot Program. HUD is currently
undertaking efforts to identify FHA-approved lenders that may be
suitable candidates for participation in the Retrofit Pilot Program. To
be eligible, lenders must satisfy the criteria set forth in this
Section II.C. HUD reserves the right to terminate a lender's
participation in the Retrofit Pilot Program for unacceptable
performance.
1. Approval as an FHA Title I or Title II program lender. Lenders
must hold valid Title I contracts of insurance and be approved pursuant
to the requirements of 24 CFR part 202 to originate, purchase, hold,
service, or sell loans insured under the Title I program regulations at
24 CFR part 201. However, approved Title II lenders may obtain Title I
eligibility under an expedited process.
2. Experience with similar lending initiatives. Lenders must be
able to demonstrate experience with the type of lending initiative
being undertaken in the Retrofit Pilot Program. In particular, HUD will
consider the extent to which lenders have experience in successfully
originating and/or servicing small loans, home equity loans, second
liens, FHA section 203(k) rehabilitation loans, and Title I Property
Improvement Loans. Lenders that do not have experience in such lending
may still be able to participate in the Pilot Program to the extent
they can demonstrate how their other experience is relevant to
determining their ability to participate in the pilot, and they agree
to meet the Title I requirements before participation in the pilot
program.
3. Computer system capabilities. Lenders must have the technical
capability to interface with FHA through FHA Connection. In addition,
lenders must have the technical capability to interface with any other
computer systems utilized by FHA or its contractors pertaining to the
Retrofit Pilot Program.
4. Audit capabilities. Lenders must have a demonstrated capacity to
provide timely reports to FHA on origination and performance of
retrofit loans. FHA envisions requiring monthly reports on loan and
portfolio performance. In addition, a lender must be able to provide an
electronic loan package to HUD for a random sample of loans chosen for
quality reviews.
5. Collaborative capacity. Lenders must have demonstrated capacity
to work with public sector agencies, nonprofit organizations,
utilities, and/or home improvement contractors.
D. Lender Incentives
HUD recognizes that even with Federal mortgage insurance such as
would be available under the Pilot Program, small loans for home energy
retrofits may have relatively high transaction costs for lenders,
discouraging some from offering such loans and forcing others that do
offer them to increase costs to borrowers. HUD will utilize the
appropriated funds provided under the Act to provide lender incentive
payments to support activities that lower costs to borrowers. Eligible
uses of such payments will include lowering loan interest rates and,
for lenders that will also service their own loans, reducing servicing
costs. HUD will also consider other proposed uses of such funds. Any
use of funds must show, to HUD's satisfaction, bona fide benefit to
borrowers. The amount of payment to each lender and the eligible uses
of funds by each lender will be determined by HUD based on the lender's
Expression of Interest. A significant factor in determining payment
amounts to each lender will be the number of loans the lender
anticipates making during the 2-year period of the Pilot Program.
Lenders will be required to report to HUD on their use of incentive
payments funds.
HUD anticipates that the amount of grant funds will not exceed $5
million per lender.
Funds may be available to lenders who request them, but are not
required for participation. Lenders who do not seek funds may still
participate in the Pilot Program. HUD is specifically seeking comment
on the incentive payments available under the program.
E. Selection of Lenders
As noted above, lenders interested in potentially participating in
the Retrofit Pilot Program must submit an Expression of Interest using
the template in Appendix A and following the instructions in this
notice. Lenders that fail to do so will not be considered for
participation.
In evaluating Expressions of Interest and selecting lenders to
participate, HUD will first review each Expression of Interest to
verify that the lender is eligible to participate in the program. HUD
will then evaluate the Expressions of Interest from all eligible
lenders primarily by weighing the following factors in the Expression
of Interest: (1) The lender's anticipated loan volume and target
markets; (2) the lender's business model for participating in the
pilot; (3) the lender's capacity (experience and/or potential) to work
in public-private partnerships; and (4) the extent to which the lender
intends to deliver the most favorable loan product to consumers. HUD
anticipates that these primary weighing factors will have generally
equal weighing significance. In addition, HUD may consider the
following factors in selecting lenders to participate: (1) Diversity of
lender type and target market; and (2) impact on low-income households
and communities.
F. Differences Between Retrofit Pilot Program and Existing Title I
Program
With the exceptions discussed below, the Retrofit Pilot Program
will be governed by the Title I program regulations at 24 CFR part 201.
This
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notice does not make any changes to the current Title I Property
Improvement Program. The differences specified in this notice are only
applicable to lenders selected to participate in the Pilot Program.
Lenders selected to participate in the Retrofit Pilot Program must
enter into a Retrofit Pilot Program Agreement by which they commit to
adhere to the Title I program regulations, except as modified in this
notice and in subsequent refinements, such modifications being
applicable only to loans insured under the Retrofit Pilot Program.
There will also be other requirements applicable to the Retrofit Pilot
Program; for example, insuring Retrofit Pilot Program loans only in
communities selected for the Pilot Program.
In summary, the proposed changes described below, in combination
with the appropriated funds, have the effect of creating an innovative
pilot program that accords with Congress' direction in the Act. These
changes fall into the following categories: (1) Changes designed to
enhance FHA underwriting of program loans; (2) changes related to FHA
administration of the program, specifically in the areas of loan
servicing, claim procedures, and reporting; (3) changes to target the
pilot program specifically on its purpose of improving home energy
performance; and (4) changes to provide additional benefits to
borrowers. Finally, as noted, FHA proposes to augment these changes
with incentives for lenders to participate, using funding appropriated
under the Act. In summary, these changes adjust the current flexible
framework for the Title I program to enable it to encourage and
directly support home improvements that improve energy performance,
while reducing barriers to making financing under the program more
widely available and more affordable.
1. Definition 24 CFR 201.2. For purposes of the Retrofit Pilot
Program, the following terms have the following meanings.
a. Single family property improvement loans. Only ``single family
property improvement loans'' as that term is defined in 24 CFR 201.2
are eligible for FHA insurance and the Retrofit Pilot Program.
Properties must also be principal residences as defined in 24 CFR
201.2. HUD intends to further limit the Pilot Program to single unit
detached properties in order to control the number of variables in the
Pilot Program. Loans used to finance the property improvements for
manufactured homes and multifamily properties \9\ are not eligible for
the Retrofit Pilot Program, but remain eligible for Title I program
insurance under 24 CFR part 201.
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\9\ Manufactured home improvement loan and multifamily property
improvement loan are terms defined in Sec. 201.2.
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2. Loan maturities (24 CFR 201.11). Under the Title I program
regulations at 24 CFR 201.11 an insured loan may have a term as long as
20 years. Under the Retrofit Pilot Program, loan terms generally will
be limited to 15 years to better align the term of financing with the
useful life of, and benefits from, most energy retrofit improvements.
Under the Pilot Program, loan terms that are for 20 years can only be
for certain specified improvements: Renewable energy measures,
geothermal systems, and other improvements as approved by HUD. See
``Eligible use of loan proceeds'' in Section II.D.4(b) below.
3. Interest and discount points (24 CFR 201.13). Under the Title I
program regulations at 24 CFR 201.13, the lender may not require or
allow any party, other than the borrower, to pay discount points or
other financing charges in connection with the loan transaction. This
restriction, while helping to assure that borrowers have a personal
stake in the repayment of the loan, also has the effect of hindering
state and local efforts to support home energy retrofits by lowering
the cost of capital to consumers, such as through interest-rate write
downs. The Retrofit Pilot Program expressly contemplates that third
parties (including state and local governments, private organizations,
and nonprofit organizations) may pay discount points or other financing
charges in connection with the Title I loan transaction and encourages
third parties to work with participating lenders on this basis. In
addition, as noted, lenders may utilize HUD incentive payments under
the Pilot Program for this purpose.
The interest shall be calculated on a traditional mortgage interest
basis.
4. Property improvement loan eligibility (24 CFR 201.20).
a. Borrower eligibility (24 CFR 201.20(a)). As under Title I loans,
Retrofit Pilot Program borrowers shall have at least a one-half
interest in one of the following:
(i) Fee simple title of the property; or
(ii) A properly recorded land installment contract.
Unlike the Title I program, lessees of the property will not be
eligible to participate in the Pilot Program. The limitation of
eligibility to owner-occupied properties is designed to reduce the
variables in the Pilot Program for purposes of evaluation, as well as
to help ensure compliance with the minimum property loan to value
ratios described in section II.F.5., below.
b. Eligible use of the loan proceeds (24 CFR 201.20(b)). Similar to
the Title I program, loan proceeds shall be used only for the purposes
disclosed in the loan application. Under the standard Title I loan,
proceeds shall be used only to finance property improvements that
substantially protect or improve the basic livability or utility of the
property. Further, HUD has the authority to establish a list of items
and activities that may not be financed with the proceeds of any
property improvement loan.
Under the Retrofit Pilot Program, loan proceeds may be used only
for measures that improve home energy performance or directly make such
measures possible. If a lender has any doubt as to the eligibility of
any item or activity, the lender must request a determination from FHA
before making a loan. The proposed list of eligible measures, to be
finalized after the period for public comment on this notice, is
attached as Appendix B. HUD is specifically seeking comments on this
aspect of the Pilot Program.
The reason for this limitation is that the purpose of the Retrofit
Pilot Program is to provide financing specifically for home energy
retrofits. In addition, HUD believes that limiting the eligible uses of
loan proceeds, as described, will allow better evaluation of the
Retrofit Pilot Program for its intended purpose and facilitate broader
analysis of Pilot Program data to improve the structure of other future
financing efforts to support home energy retrofits. HUD encourages the
use of home energy audits and other tools to enable consumers to
determine the most beneficial improvements they should seek to
undertake.
5. Property valuation (24 CFR 201.20). The combined loan-to-value
ratio of the mortgage and energy retrofit loan cannot exceed 100
percent and will require a method to determine current valuation of the
property, such as an Exterior-Only Inspection Residential Appraisal
Report (Form HUD-2055) or other approved valuation method. HUD is
specifically seeking comments on this aspect of the Pilot Program.
6. Credit requirements for borrowers (24 CFR 201.22). In addition
to the requirements under the Title I program, all borrowers
participating in the Retrofit Pilot Program must have a decision credit
score of 660 or higher. The decision credit score used by FHA is based
on methodologies developed by the FICO Corporation. FICO scores, which
range from a low of 300 to a high
[[Page 69117]]
of 850, are calculated by each of the three National Credit Bureaus and
are based upon credit-related information reported by creditors,
specific to each applicant. Lower credit scores indicate greater risk
of default on any new credit extended to the applicant. The decision
credit score is based on the middle of three National Credit Bureau
scores or the lower of two scores when all three are not available, for
the lowest scoring applicant. While FHA's guidance is based on the
``FICO-based'' decision credit score, it is not FHA's intent to
prohibit the use of other credit scoring models to assess a borrower's
credit profile.
The borrower's total debt-to-income ratio cannot exceed 45 percent,
as under the Title I program. HUD recognizes that requiring a minimum
credit score for participation in the pilot program will mean that some
homeowners cannot participate. However, given that this is a pilot
program, HUD has determined to limit the Retrofit Pilot Program to
borrowers with these credit scores in order to make an initial
assessment of the interaction of credit ratings and repayment in
connection with home energy retrofit loans.
7. Charges to borrower to obtain loan (24 CFR 201.25). The
regulations for the Title I program provide that HUD will establish a
list of fees and charges that may be included in a property improvement
loan. The Retrofit Pilot Program will also establish a similar list of
fees and charges.
8. Conditions for loan disbursement (24 CFR 201.26). In addition to
current Title I requirements pertaining to disbursement of loan
proceeds, the Retrofit Pilot Program funds shall be disbursed to the
borrower(s) in two increments: (1) 50 percent of the proceeds shall be
disbursed at loan funding/closing; and (2) the remaining 50 percent of
the proceeds shall be disbursed after the energy retrofit improvements
have been completed as evidenced by an executed Completion Certificate
for Property Improvements (Form HUD-56002) by the borrower(s), and a
lender-required inspection.
9. Requirements for dealer loans (24 CFR 201.27). Under the Title I
program a dealer loan (defined at 24 CFR 201.2) ``means a loan where a
dealer, having a direct or indirect financial interest in the
transaction between the borrower and the lender, assists the borrower
in preparing the credit application or otherwise assists the borrower
in obtaining the loan from the lender.'' Dealer loans will not be
permitted in the Retrofit Pilot Program.
The reason for this limitation is that dealer loans have been
disproportionately correlated with poor loan performance under Title I
and other home improvement loan programs in the past. While HUD
recognizes that there are many responsible dealers who can and would
provide financing through dealer loans in a responsible manner, it is
limiting the Retrofit Pilot Program to ``direct loans.'' ``Direct
loans'' is defined under the Title I program (at 24 CFR 201.2) as ``a
loan for which a borrower makes application directly to a lender
without any assistance from a dealer.'' HUD believes that home
improvement contractors and others whose activity may be described
under the definition of ``dealer'' for the Title I program will play an
important role in ensuring the pilot's success by performing the actual
work related to the retrofits.
10. Loan servicing (24 CFR 201.41). Under the Title I program,
lenders remain responsible for proper collection efforts, even though
actual loan servicing and collection may be performed by an agent of
the lender. In addition to these requirements, the servicer of a
Retrofit Pilot Program loan, whether the servicer is the original
lender or a subsequent servicer, as under FHA's major single family
program (commonly referred to as the Title II program), is fully
responsible for the required servicing responsibilities. As under the
Title II program, ``the mortgagee shall remain fully responsible for
proper servicing, and the actions of its servicer shall be considered
to be the actions of the mortgagee.'' HUD emphasizes that the servicer
shall also be fully responsible for its actions as a servicer. HUD
intends to seek recovery from servicers if FHA losses are attributable
to servicing errors.
In addition, as noted, lenders that also service loans they
originate under the pilot program may utilize HUD incentive payments
under the program to reduce servicing costs that deliver bona fide
benefits to borrowers.
11. Insurance claim procedure (24 CFR 201.54). Under the Title I
program, HUD requires that insurance claims be fully documented.
Under the Pilot Program, the holder of the note will be accountable
to HUD for origination/underwriting errors, and the servicer will be
accountable to HUD for servicing errors. If a claim would be denied due
to servicing errors, FHA will pay the claim to the holder of the note
and seek recovery of its losses from the servicer. To effectuate this,
the insured lender must obtain an indemnification agreement from the
subservicer at loan origination that will be assigned to HUD when an
insurance claim is filed. As an alternative to an indemnification
agreement from the subservicer, the insured lender shall execute and
submit with the claim a subrogation agreement that allows HUD to obtain
indemnification directly from the subservicer. Losses to HUD will be
mitigated by recoveries from defaulted borrowers.
III. Evaluating the Success of the Retrofit Pilot Program
As a pilot program, one of the principal purposes of the Pilot is
to generate data on key questions that can help make the case for
additional mainstream mortgage products to support home energy
retrofits, including first mortgage options. FHA is therefore committed
to a robust evaluation program in connection with the Pilot. (The
evaluation will also enable HUD to assess the success of possible
modifications to the existing Title I program before initiating,
through rulemaking, any changes to the Title I regulations.)
FHA has identified three core questions on which the evaluation
program will focus: (1) Did homes reduce energy consumption after
retrofits? (2) did homeowners realize lower energy bills as a result of
the retrofit? and (3) was home value affected as a result of the
retrofit? Data from the PowerSaver Pilot Program suggesting answers to
these questions will help fill a major void and start to establish a
basis for analyzing other financing options.
FHA acknowledges that these can be challenging impacts to evaluate,
for reasons ranging from ``rebound effects'' to consumer concerns about
accessing utility billing data. FHA believes that it must attempt to do
so, however; otherwise, FHA is concerned that continued progress on
mainstream mortgage financing options for home energy retrofits will be
frustrated.
FHA notes that HUD will also be tracking information on loan
performance, through regular lender reporting, as under other FHA
programs. The evaluation effort will therefore include loan performance
as a component as well. In addition, FHA will explore the feasibility
of adding to the core evaluation scope, potentially including: (1)
Lender costs for originating and servicing; (3) impact of interest
rates on consumer participation; (2) relative effectiveness of non-
financial programmatic elements (consumer education, product marketing,
auditing tools, and workforce quality assurance); and (4) the extent to
which specific home energy improvements are chosen and the results from
specific measures.
[[Page 69118]]
FHA recognizes the limitations in drawing conclusions from
evaluating the Pilot Program. FHA anticipates utilizing a third party
to conduct the evaluation and anticipates sharing the results with the
public. FHA expressly encourages comment on the goals and scope of the
evaluation.
IV. Findings and Certifications
Paperwork Reduction Act
The information collection requirements in this rule have been
submitted to the Office of Management and Budget (OMB) under the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) (PRA) and
paperwork approval is pending. In accordance with the PRA, an agency
may not conduct or sponsor, and a person is not required to respond to,
a collection of information, unless it displays a currently valid OMB
control number.
Executive Order 12866, Regulatory Planning and Review
The Office of Management and Budget (OMB) reviewed this notice rule
under Executive Order 12866 (entitled ``Regulatory Planning and
Review''). A determination was made that this notice is an
``economically significant regulatory action,'' as defined in section
3(f)(1) of the Order, and the notice is accompanied by an impact
analysis. The impact analysis is available at http://www.hud.gov/offices/adm/hudclips/ia/. The following provides a brief summary of the
finding relating to the aggregate costs, benefits, and transfers of the
pilot program contained in the analysis:
Introduction. As discussed more fully in the accompanying impact
analysis, FHA envisions that the pilot program will provide insurance
for up to 24,000 loans over the 2-year period of the pilot program,
with an expected average loan size of $12,500. The program is therefore
expected to result in the extension of $300 million in FHA-insured
energy efficiency property improvement loans over the 2-year period.
Benefits. The aggregate net benefits are obtained by multiplying
the individual net benefits by the expected number of loans and adding
the expected social benefits of reduced energy consumption. As a base
case, HUD assumes a consumer household with annual savings of $1,000, a
0 percent price growth, and a 7 percent discount rate. The present
value of a technical retrofit for this base case scenario is $11,400.
Assuming a rebound effect of 30 percent yields a comfort benefit of
$3,400 and energy savings of $8,000 per participant.\10\ As noted,
approximately 24,000 loans are expected over 2 years. For the base case
scenario, this would equal $41 million in comfort benefits and $96
million in energy savings for each year of the program. The benefits of
the FHA program may not equal the sum of the benefits of all retrofits
financed through the program, but only reflect the benefits of the
retrofits that would not have occurred without the program; however,
the existence of significant market imperfections and the lack of
affordable financing make it reasonable to assume that a large
proportion, if not all of the loans, will generate benefits.
---------------------------------------------------------------------------
\10\ The ``rebound effect'' refers to the fact that the reaction
of the consumer to the energy-saving technology will not necessarily
reduce energy consumption by what is technically possible. By
increasing energy efficiency, the retrofit reduces the expense of
physical comfort and will thus increase the demand for comfort. In
fact, the retrofit may have been driven for a demand for more
heating in the winter or cooling in the summer. The size of the
rebound effect will depend on the income of the household and the
path of energy prices.
---------------------------------------------------------------------------
Costs. The cost of receiving the energy-savings is the upfront
investment plus the costs of financing the investment. The cost per
investment is thus equal to the size of the loan.
Transfers to Consumers. The transfer to consumers is equal to the
difference between the FHA interest rate and the interest rates on
other loans available for the same purpose. As discussed, alternative
means of financing are limited and come with higher interest costs. The
gain to consumers is not limited to reduced loan costs but will consist
also of the benefits of energy-efficient investment. The extent of
these benefits depends upon the subsidy from an FHA loan guarantee.
The docket file is available for public inspection in the
Regulations Division, Office of General Counsel, Department of Housing
and Urban Development, 451 7th Street, SW., Room 10276, Washington, DC
20410-0500. Due to security measures at the HUD Headquarters building,
please schedule an appointment to review the docket file by calling the
Regulations Division at 202-402-3055 (this is not a toll-free number).
Individuals with speech or hearing impairments may access this number
via TTY by calling the Federal Information Relay Service at 800-877-
8339.
Environmental Impact
A Finding of No Significant Impact (FONSI) with respect to the
environment was prepared in accordance with HUD regulations at 24 CFR
part 50, which implement section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C). That FONSI is
available for public inspection between the hours of 8 a.m. and 5 p.m.,
weekdays in the Regulations Division, Office of General Counsel, Room
10276, Department of Housing and Urban Development, 451 7th Street,
SW., Washington, DC 20410. Due to security measures at the HUD
Headquarters building, please schedule an appointment to review the
FONSI by calling the Regulations Division at 202-708-3055 (this is not
a toll-free number). Individuals with speech or hearing impairments may
access this number via TTY by calling the toll-free Federal Information
Relay Service at (800) 877-8339.
Dated: October 28, 2010.
David H. Stevens,
Assistant Secretary for Housing--Federal Housing Commissioner.
Appendix A
Home Energy Retrofit Loan Pilot Program Criteria for Expressions of
Interest From Lenders
Introduction
Lender participation in the Retrofit Pilot Program is voluntary.
HUD intends to select a limited number of lenders to participate.
Lenders interested in potentially participating in the Retrofit
Pilot Program must submit an Expression of Interest using the format
below and following the instructions in this notice. Lenders that
fail to do so will not be considered for participation.
Lenders interested in potentially participating may also provide
general comments on the Pilot Program. Any such comments should be
submitted separately from the Expression of Interest, following the
instructions in the notice, but may be referenced in the Expression
of Interest.
As noted in the notice, all properly submitted comments and
communications submitted to HUD in connection with this pilot
program will be available for public inspection and copying.
Expressions of Interest should not therefore contain any proprietary
information. HUD may seek additional information from lenders that
submit Expressions of Interest. Such information would be available
for public inspection and copying as well, unless it is proprietary.
Expressions of Interest are non-binding. HUD will execute
contracts with participating lenders after reviewing all Expressions
of Interest and the issuance of the final notice for the Retrofit
Pilot Program in the Federal Register.
Submission Instructions
To be considered for participation in the Pilot Program, a
lender must e-mail its Expression of Interest to
[email protected] by the public comment deadline set forth in
the DATES section of this notice. Late submissions and Expressions
of Interest not submitted to
[[Page 69119]]
[email protected] will not be considered for participation in
the Pilot Program.
Expressions of Interest must address each of the 10 factors
identified below (labeled I through X). There is no minimum or
maximum page number or required format for Expressions of Interest.
Lenders should provide whatever manner of information they believe
would be most relevant to HUD in evaluating their Expression of
Interest in participating in the Retrofit Pilot Program. Each
Expression of Interest must also contain a one page executive
summary that sequentially summarizes the factors addressed below.
Factors to be Addressed in Expressions of Interest
I. Contact Information
Institution Name:
Address:
Contact Name, Title, Phone Number and Email Address:
II. Statement of Interest
Please describe your institution's interest in potentially
participating in the program. HUD is interested in understanding the
reasons for your interest, how it fits with your business strategy
and goals, and how, specifically, your institution would be able to
meet the goals of the Pilot Program as described in the notice.
III. Status as an FHA Title I or Title II Program Lender
Please provide evidence that your institution has a valid Title
I contract of insurance and is approved under the requirements of 24
CFR part 202 to originate, purchase, hold, service, or sell loans
insured under the Title I program regulations at 24 CFR part 201.
If you do not meet the criteria above but are an approved Title
II lender, please provide evidence to that effect.
IV. Experience With Similar Lending Initiatives
Please describe your experience successfully originating and/or
servicing small loans, home equity loans, second liens, FHA section
203(k) rehabilitation loans, and/or Title I Property Improvement
Loans.
If your institution does not have such experience and capacity,
please describe how any other experience is relevant to determining
your institution's ability to participate in the Pilot Program.
V. Computer System Capabilities
Please provide evidence of your institution's technical
capability to interface with FHA through FHA Connection and the
Single Family Default Monitoring system.
Note: Participating lenders will be required to have the
technical capability to interface with any other computer systems
utilized by FHA or its contractors pertaining to the Retrofit Pilot
Program.
VI. Audit and Reporting Capabilities
Please provide evidence of your institution's capacity to
provide timely reports to FHA on origination and performance of
loans under the Pilot Program, specifically including an electronic
loan package to HUD for a random sample of loans chosen for quality
reviews.
Note: FHA envisions requiring monthly reports on loan and
portfolio performance.
VII. Collaborative Capacity
Please provide evidence of your institution's capacity to work
with public sector agencies, nonprofit organizations, utilities,
and/or home improvement contractors.
VIII. Projected Activity and Markets
Please describe the volume of lending your institution
anticipates doing under the two-year Pilot Program and the markets
you intend to serve.
Note: FHA may allow less volume than described.
IX. Product Plan and Business Model
Please describe your institution's product plan and business
model as you envision it for lending under the Pilot Program.
Specifically, please inform HUD of the following: (1) Will you
originate and service loans, or originate only? (2) What do you
expect in terms of loan performance? (3) What fees will you charge?
(4) What steps will you take to ensure the lowest cost of financing
for consumers? (5) How will you market the product? (6) To what
extent will you work with public agencies, contractors, utilities,
and other organizations? (7) How will you ensure quality control of
contractors? (8) Will you hold loans, sell whole loans and/or issue
securities backed by pools of loans, or some combination?
X. Use of HUD Incentive Payments
To the extent that you request to utilize funds from HUD for
incentive payments to lower costs for borrowers, either through
lower interest rates, lower servicing costs, and potentially other
purposes, please describe how much funding you request, the number
of loans you anticipate making (a range is appropriate if
necessary), and the bona fide benefit that would accrue to borrowers
through the uses of the funds.
Note: As noted, Expressions of Interest are non-binding. The
purpose of this question is to get a sense of your institution's
intent at this stage, understanding that specifics may change.
Note: To the extent these answers would contain proprietary
information, please contact HUD based on information provided in the
notice.
XI. Final comments
Please provide any additional information that would be relevant
to HUD in evaluating your Expression of Interest to participate in
the Retrofit Pilot Program, either as a narrative response or
attachment(s), or both.
Appendix B
Eligible Improvements Under Retrofit Pilot Program
------------------------------------------------------------------------
Improvement Standards
------------------------------------------------------------------------
Whole House.................. Whole house air sealing measures,
including interior and exterior
measures, utilizing sealants, caulks,
insulating foams, gaskets, weather-
stripping, mastics, and other building
materials in accordance with BPI
standards or other procedures approved
by the Secretary. (Reference: http://www.bpi.org/standards.aspx)
Insulation: Attic............ Attic insulation measures that--
(A) Include sealing of air leakage
between the attic and the conditioned
space, in accordance with BPI standards
or the attic portions of the DOE or EPA
thermal bypass checklist or other
procedures approved by the Secretary;
(B) add at least R-19 insulation to
existing insulation;
(C) result in at least R-38 insulation in
DOE climate zones 1 through 4 and at
least R-49 insulation in DOE climate
zones 5 through 8, including existing
insulation, within the limits of
structural capacity, except that a
State, with the approval of the
Secretary, may designate climate zone
sub regions as a function of varying
elevation; and (Map Page: http://www.energystar.gov/index.cfm?c=home_sealing.hm_improvement_insulation_table le)
(D) cover at least--
(i) 100 percent of an accessible attic;
or
(ii) 75 percent of the total conditioned
footprint of the house.
(BPI Standards reference: http://www.bpi.org/standards.aspx)
Insulation: Wall............. Wall insulation that--
(A) is installed in accordance with BPI
standards or other procedures approved
by the Secretary;
(B) is to full-stud thickness or adds at
least R-10 of continuous insulation; and
(C) covers at least 75 percent of the
total external wall area of the home.
[[Page 69120]]
(BPI Reference: http://www.bpi.org/standards.aspx)
Insulation: Crawl Space...... Crawl space insulation or basement wall
and rim joist insulation that is
installed in accordance with BPI
standards or other procedures approved
by the Secretary and--
(A) covers at least 500 square feet of
crawl space or basement wall and adds at
least--
(i) R-19 of cavity insulation or R-15 of
continuous insulation to existing crawl
space insulation; or
(ii) R-13 of cavity insulation or R-10 of
continuous insulation to basement walls;
and
(B) fully covers the rim joist with at
least R-10 of new continuous or R-13 of
cavity insulation.
(BPI Reference: http://www.bpi.org/standards.aspx)
Duct Sealing................. Duct sealing or replacement and sealing
that--
(A) is installed in accordance with BPI
standards or other procedures approved
by the Secretary; and
(B) in the case of duct replacement and
sealing, replaces and seals at least 50
percent of a distribution system of the
home.
(BPI Reference: http://www.bpi.org/standards.aspx)
Reference: http://www1.eere.energy.gov/buildings/windowsvolumepurchase/ buildings/windowsvolumepurchase/
Skylight Replacement......... Skylight replacement that meets most
recent Energy Star specifications.
Door Replacement............. Door replacement that meets most recent
Energy Star specifications.
Storm Doors.................. Storm doors that--
meet the most recent Energy Star
specifications
Storm Windows................ Storm windows that--
meet the requirements for low-e
storm windows under the Department of
Energy Windows Volume Purchase Program
Heating System Gas/Propane/ Heating system replacement that meets
Oil Boiler/Furnace. most recent Energy Star specifications.
Air Conditioner.............. Air-source air conditioner or air-source
heat pump replacement with a new unit
that meets most recent Energy Star
specifications.
Geothermal................... Heating or cooling system replacement
with an Energy Star qualified geothermal
heat pump that meets Tier 2 efficiency
requirements and that is installed in
accordance with ANSI/ACCA Standard 5 QI-
2007.
Water Heater................. Replacement of a natural gas, propane, or
(gas, propane, electric, tank electric water heater that meets most
less). recent Energy Star specifications.
Water Heater (solar)......... Solar water heating property must be
Energy Star Qualified, or certified by
the Solar Rating and Certification
Corporation or by comparable entity
endorsed by the state in which the
system is installed.
Fuel Cells and Micro turbine Efficiency of at least 30% and must have
Systems. a capacity of at least 0.5 kW.
Solar Panels (Photovoltaic Photovoltaic systems must provide
Systems). electricity for the residence, and must
meet applicable fire and electrical code
requirement.
Wind Turbine Residential..... A wind turbine collects kinetic energy
from the wind and converts it to
electricity that is compatible with a
home's electrical system, and has a
nameplate capacity of no more than 100
kilowatts.
Roofs Metal & Asphalt........ Metal or asphalt roofs that meet most
recent Energy Star specifications.
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[FR Doc. 2010-28015 Filed 11-9-10; 8:45 am]
BILLING CODE 4210-67-P