HR7282-119

What This Bill Does

The FRAMER Act adds an Energy Codes in Opportunity Zones condition to the Housing and Community Development Act. Starting 90 days after enactment, a State receiving covered title I amounts must pay each person who built a covered dwelling unit in an opportunity zone within 30 days after occupancy certification. The payment equals the difference, as determined by HUD, between the cost of complying with the State energy housing code and the cost of complying with HUD's Minimum Energy Standard. No payment is required if the State code costs less than the HUD standard. Builders who receive or expect reimbursement must give first buyers a HUD-form disclosure identifying the cost difference, expected or received reimbursement, and any portion used to reduce the home price. GAO must report annually to Congress on required States and payment amounts by jurisdiction, and the new subsection is repealed after seven years.

Who Benefits and How

Opportunity-zone builders benefit because States must reimburse the incremental cost of State energy codes above HUD's Minimum Energy Standard. First buyers of covered homes benefit from a disclosure showing the energy-code cost difference and whether the builder used reimbursement to reduce the price. HUD benefits from authority to define the comparison procedure and disclosure form. Congress benefits from annual GAO reports showing which States made payments and how much was paid by metropolitan city, urban county, State, local government, and insular area.

Who Bears the Burden and How

States receiving covered community-development funds must calculate and make builder payments within 30 days after occupancy certification or risk eligibility for those funds. Builders must provide HUD-form disclosures to first buyers and document reimbursement amounts and price reductions. HUD must determine the cost difference between State codes and its Minimum Energy Standard and create the disclosure form. GAO must compile annual reports until the seven-year repeal. Federal housing funds may effectively subsidize State energy-code cost differences in opportunity zones.

Key Provisions

• Requires States receiving covered housing funds to reimburse opportunity-zone builders for State energy-code costs above HUD's Minimum Energy Standard.
• Requires payment within 30 days after a covered dwelling unit is inspected and certified for occupancy.
• Requires builders to disclose reimbursement amounts, cost differences, and any price reductions to first buyers.
• Directs annual GAO reports by jurisdiction and repeals the new payment requirement after seven years.