[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1849 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                S. 1849

   To amend section 203 of the National Housing Act to provide for 1 
  percent downpayments for FHA mortgage loans for teachers and public 
    safety officers to buy homes within the jurisdictions of their 
                          employing agencies.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 11, 2003

  Mr. Schumer introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
   To amend section 203 of the National Housing Act to provide for 1 
  percent downpayments for FHA mortgage loans for teachers and public 
    safety officers to buy homes within the jurisdictions of their 
                          employing agencies.

    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 ``Homeownership Opportunities for 
Uniformed Services and Educators Act''.

SEC. 2. REDUCED DOWNPAYMENT REQUIREMENTS FOR LOANS FOR TEACHERS AND 
              PUBLIC SAFETY OFFICERS.

    (a) In General.--Section 203(b) of the National Housing Act (12 
U.S.C. 1709(b)) is amended by adding at the end the following:
            ``(10) Reduced downpayment requirements for teachers and 
        public safety officers.--
                    ``(A) In general.--Notwithstanding paragraph (2), 
                in the case of a mortgage described in subparagraph 
                (B)--
                            ``(i) the mortgage shall involve a 
                        principal obligation in an amount that does not 
                        exceed the sum of 99 percent of the appraised 
                        value of the property and the total amount of 
                        initial service charges, appraisal, inspection, 
                        and other fees (as the Secretary shall approve) 
                        paid in connection with the mortgage;
                            ``(ii) no other provision of this 
                        subsection limiting the principal obligation of 
                        the mortgage based upon a percentage of the 
                        appraised value of the property subject to the 
                        mortgage shall apply; and
                            ``(iii) the matter in paragraph (9) that 
                        precedes the first proviso shall not apply and 
                        the mortgage shall be executed by a mortgagor 
                        who shall have paid on account of the property 
                        at least 1 percent of the cost of acquisition 
                        (as determined by the Secretary) in cash or its 
                        equivalent.
                    ``(B) Mortgages covered.--A mortgage described in 
                this subparagraph is a mortgage--
                            ``(i) under which the mortgagor is an 
                        individual who--
                                    ``(I) is employed on a part- or 
                                full-time basis as--
                                            ``(aa) a teacher or 
                                        administrator in a public or 
                                        private school that provides 
                                        elementary or secondary 
                                        education, as determined under 
                                        State law, except that 
                                        elementary education shall 
                                        include pre-Kindergarten 
                                        education, and except that 
                                        secondary education shall not 
                                        include any education beyond 
                                        grade 12; or
                                            ``(bb) a public safety 
                                        officer (as such term is 
                                        defined in section 1204 of the 
                                        Omnibus Crime Control and Safe 
                                        Streets Act of 1968 (42 U.S.C. 
                                        3796b), except that such term 
                                        shall not include any officer 
                                        serving a public agency of the 
                                        Federal Government); and
                                    ``(II) has not, during the 12-month 
                                period ending upon the insurance of the 
                                mortgage, had any present ownership 
                                interest in a principal residence 
                                located in the jurisdiction described 
                                in clause (ii); and
                            ``(ii) made for a property that is located 
                        within the jurisdiction of--
                                    ``(I) in the case of a mortgage of 
                                a mortgagor described in clause 
                                (i)(I)(aa), the local educational 
                                agency (as such term is defined in 
                                section 14101 of the Elementary and 
                                Secondary Education Act of 1965 (20 
                                U.S.C. 8801)) for the school in which 
                                the mortgagor is employed (or, in the 
                                case of a mortgagor employed in a 
                                private school, the local educational 
                                agency having jurisdiction for the area 
                                in which the private school is 
                                located); or
                                    ``(II) in the case of a mortgage of 
                                a mortgagor described in clause 
                                (i)(I)(bb), the jurisdiction served by 
                                the public law enforcement agency, 
                                firefighting agency, or rescue or 
                                ambulance agency that employs the 
                                mortgagor.''.
    (b) Deferral and Reduction of Up-Front Premium.--Section 203(c) of 
the National Housing Act (12 U.S.C. 1709(c)) is amended--
            (1) in paragraph (2), in the matter preceding subparagraph 
        (A), by striking ``Notwithstanding'' and inserting ``Except as 
        provided in paragraph (3) and notwithstanding''; and
            (2) by adding at the end the following:
    ``(3) Deferral and reduction of up-front premium.--In the case of 
any mortgage described in subsection (b)(10)(B)--
            ``(A) paragraph (2)(A) of this subsection (relating to 
        collection of up-front premium payments) shall not apply; and
            ``(B) if, at any time during the 5-year period beginning on 
        the date of the insurance of the mortgage, the mortgagor ceases 
        to be employed as described in subsection (b)(11)(B)(i)(I) or 
        pays the principal obligation of the mortgage in full, the 
        Secretary shall, at such time, collect a single premium payment 
        in an amount equal to the amount of the single premium payment 
        that, but for this paragraph, would have been required under 
        paragraph (2)(A) of this subsection with respect to the 
        mortgage, as reduced by 20 percent of such amount for each 
        successive 12-month period completed during such 5-year period 
        before such cessation or prepayment occurs.''.
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