Solar Energy and Energy Conservation Bank Reauthorization Act of 1985

Solar Energy and Energy Conservation Bank Reauthorization Act of 1985 - Title I: Reauthorization of Bank - Amends the Solar Energy and Energy Conservation Bank Act to extend the life of the Solar Energy and Energy Conservation Bank until September 30, 1991. (Under current law, the Bank will cease to exist after September 30, 1987.)

Requires that 25 percent of the payments by the Bank to financial institutions to provide financial assistance for the installation of solar energy systems in residential, commercial, and agricultural buildings be allocated for active solar energy. Requires an equitable distribution of financial assistance between residential and multifamily residential buildings. Permits all financial institutions to apply directly to the Bank for financial assistance.

Authorizes appropriations for FY 1986 through 1991 for the financial assistance program under the Solar Energy and Energy Conservation Bank Act for the purchase and installation of residential and commercial energy conserving improvements and solar energy systems.

Amends the Federal National Mortgage Association Charter Act to eliminate the condition under which the Board of the Bank would not exercise its authority to purchase loans for energy conserving improvements or to purchase mortgages secured by newly constructed homes with solar energy systems.

Title II: Financial Assistance to Promote Construction of Highly Energy Efficient Buildings - Amends the Solar Energy and Energy Conservation Bank Act to authorize the Bank to make payments to financial institutions for financial assistance to builders of newly constructed or substantially rehabilitated highly energy efficient buildings (a residential building which utilizes no more than 60 percent of the energy utilized by a building of a similar size that meets the cost-effective energy conservation standards established by the Secretary of Housing and Urban Development in effect as of June 30, 1980). Permits financial assistance to be so provided only if the expenditures for new construction or substantial rehabilitation of highly energy efficient buildings are made after the enactment of this Act. Specifies the maximum amount of financial assistance which may be provided for new construction or substantial rehabilitation of highly energy efficient buildings. Sets forth conditions on such financial assistance which are in addition to the general conditions on financial assistance provided by the Bank under such Act.

Amends the Federal National Mortgage Association Charter Act to authorize the Bank to purchase mortgages secured by newly constructed or substantially rehabilitated highly energy efficient buildings.