[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3507 Introduced in House (IH)]






108th CONGRESS
  1st Session
                                H. R. 3507

  To expand homeownership opportunities in States having high housing 
                                 costs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 18, 2003

Mr. Sherman (for himself, Mr. Israel, Mr. Crowley, Mrs. McCarthy of New 
York, Mr. Weiner, Mr. Lynch, Mr. George Miller of California, Mr. Farr, 
    Ms. Millender-McDonald, Ms. Woolsey, Mrs. Capps, Mrs. Davis of 
 California, Ms. Lofgren, Ms. Pelosi, Mr. Matsui, Mr. Schiff, Ms. Lee, 
   Mr. Berman, Mr. Honda, Mr. Lantos, and Ms. Harman) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
  To expand homeownership opportunities in States having high housing 
                                 costs.

    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 ``Improving Homeownership 
Opportunities in High-Cost States Act''.

SEC. 2. CONFORMING LOAN LIMIT FOR HIGH-COST AREAS.

    (a) Fannie Mae.--Section 302(b)(2) of the Federal National Mortgage 
Association Charter Act (12 U.S.C. 171(b)(2)) is amended--
            (1) by inserting ``(A)'' after the paragraph designation;
            (2) by inserting before the period at the end the 
        following: ``and with respect to properties located in any 
        State containing any high-cost metropolitan statistical area 
        (or portion thereof)''; and
            (3) by adding at the end the following new subparagraph:
    ``(B) For purposes of this paragraph, a metropolitan statistical 
area is a high-cost metropolitan statistical area for a calendar year 
and the successive calendar year only if any of applicable quarterly 
average one-family home prices for such area exceeds the dollar amount 
limitation otherwise applicable under subparagraph (A) for such 
calendar year for a single-family residence.
    ``(C) For purposes of this paragraph, the applicable quarterly 
average one-family home prices for a metropolitan statistical area for 
a calendar year are the 4 quarterly average one-family home prices, as 
follows:
            ``(i) The average one-family house price for such area for 
        the third quarter of the preceding calendar year, as determined 
        based on the average one-family house price in the monthly 
        survey of all major lenders conducted by the Federal Housing 
        Finance Board.
            ``(ii) The average one-family house price for such area for 
        each of the three calendar quarters preceding the quarter 
        specified in clause (i), as determined in the manner provided 
        in clause (i).''.
    (b) Freddie Mac.--Paragraph (2) of section 305(a) of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) is amended--
            (1) by inserting ``(A)'' after the paragraph designation;
            (2) by inserting before the period at the end the 
        following: ``and with respect to properties located in any 
        State containing any high-cost metropolitan statistical area 
        (or portion thereof)''; and
            (3) by adding at the end the following new subparagraph:
    ``(B) For purposes of this paragraph, a metropolitan statistical 
area is a high-cost metropolitan statistical area for a calendar year 
and the successive calendar year only if any of applicable quarterly 
average one-family home prices for such area exceeds the dollar amount 
limitation otherwise applicable under subparagraph (A) for such 
calendar year for a single-family residence.
    ``(C) For purposes of this paragraph, the applicable quarterly 
average one-family home prices for a metropolitan statistical area for 
a calendar year are the 4 quarterly average one-family home prices, as 
follows:
            ``(i) The average one-family house price for such area for 
        the third quarter of the preceding calendar year, as determined 
        based on the average one-family house price in the monthly 
        survey of all major lenders conducted by the Federal Housing 
        Finance Board.
            ``(ii) The average one-family house price for such area for 
        each of the three calendar quarters preceding the quarter 
        specified in clause (i), as determined in the manner provided 
        in clause (i).''.
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