[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4791 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 4791
To amend section 1333 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 to ensure that multifamily housing
mortgage purchases by Fannie Mae and Freddie Mac that are credited
toward fulfillment of such enterprises multifamily special affordable
housing goal increase or preserve the number of dwelling units
affordable to low-income families.
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IN THE HOUSE OF REPRESENTATIVES
May 30, 2014
Mrs. Carolyn B. Maloney of New York introduced the following bill;
which was referred to the Committee on Financial Services
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A BILL
To amend section 1333 of the Federal Housing Enterprises Financial
Safety and Soundness Act of 1992 to ensure that multifamily housing
mortgage purchases by Fannie Mae and Freddie Mac that are credited
toward fulfillment of such enterprises multifamily special affordable
housing goal increase or preserve the number of dwelling units
affordable to low-income families.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Responsible GSE Affordable Housing
Investment Act of 2014''.
SEC. 2. COMPLIANCE WITH MULTIFAMILY SPECIAL AFFORDABLE HOUSING GOAL.
(a) In General.--Subsection (d) of section 1333 of the Federal
Housing Enterprises Financial Safety and Soundness Act of 1992 (12
U.S.C. 4563) is amended--
(1) by striking the subsection designation and all that
follows through ``The Director'' and inserting the following:
``(d) Determination of Compliance.--
``(1) In general.--The Director''; and
(2) by adding at the end the following new paragraph:
``(2) Reduction of credit for conversion to non-affordable
units.--The Director shall, by regulation, establish standards
for the multifamily special affordable housing goal under this
section that proportionately reduce the number of units
receiving credit for any mortgage purchase by an enterprise
that facilitates the conversion of dwelling units that, at the
time of such purchase, are available for rental at rates that
are affordable to low-income families to dwelling units that
would not be affordable to low-income families. Such
regulations shall consider and include the following factors:
``(A) Limitation based on project debt.--Credit
shall not be provided toward the achievement of such
goal for any mortgage purchase for multifamily housing
that involves an aggregate amount of project debt that
is not reasonable, as determined in accordance with
prudent underwriting standards established by the
Director, in proportion to project income, as
documented in accordance with the standards established
under this subsection.
``(B) Treatment of securities.--In the case of any
purchase by an enterprise of a security, or an interest
in a security, that is backed by mortgages that finance
units that would otherwise qualify for credit toward
the achievement of the multifamily special affordable
housing goal if financed directly by the enterprise, if
the Director determines that such purchase may be
counted toward the achievement of the goal under this
section, the Director shall require the enterprise to
apply the same standard as set forth in subparagraph
(A) with respect to mortgage purchases to the mortgages
backing such security to determine whether the units
financed by such mortgages are eligible for credit
toward the achievement of the housing goal.
``(C) Rent levels.--In measuring the performance of
each enterprise in meeting the goal established under
this section, rent levels for units shall be calculated
by using the greater of the rent levels at the time the
loan is purchased or the rent levels under the pro
forma operating income statement on which the
underwriting for the loan was based.
``(D) Carryover.--If the Director provides credit
toward the achievement of the multifamily special
affordable housing goal under this section, for any
year, for any mortgage purchase by an enterprise, but
determines at any time thereafter that, because of
failure to comply with the standards established under
subparagraphs (A) and (B), such purchase does not
qualify for such credit or does not qualify for such
credit to the extent previously provided, the Director
shall increase the multifamily special housing goal for
such enterprise for the current or ensuing year
otherwise applicable to the extent of such
nonqualification.''.
(b) Regulations.--The Director of the Federal Housing Finance
Agency shall issue regulations required under paragraph (2) of section
1333(d) of the Federal Housing Enterprises Financial Safety and
Soundness Act of 1992, as added by subsection (a) of this section, not
later than the expiration of the 180-day period beginning upon the date
of the enactment of this Act.
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