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.