110th CONGRESS
2d Session
H. R. 3221
In the Senate of the United
States,
April 10, 2008.
Amendments:
That the bill from the House of Representatives
(H.R. 3221) entitled An Act moving the United States toward greater
energy independence and security, developing innovative new technologies,
reducing carbon emissions, creating green jobs, protecting consumers,
increasing clean renewable energy production, and modernizing our energy
infrastructure, and to amend the Internal Revenue Code of 1986 to provide tax
incentives for the production of renewable energy and energy
conservation.
, do pass with the following
Strike out all after the enacting clause and
insert:
1.Short title; table of
contents
(a)This Act may be cited
as the Foreclosure Prevention Act of
2008
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of
contents.
TITLE I—FHA Modernization Act of
2008
Sec. 101. Short
title.
Subtitle A—Building American
Homeownership
Sec. 111. Short
title.
Sec. 112. Maximum principal
loan obligation.
Sec. 113. Cash investment
requirement and prohibition of seller-funded downpayment
assistance.
Sec. 114. Mortgage insurance
premiums.
Sec. 115. Rehabilitation
loans.
Sec. 116. Discretionary
action.
Sec. 117. Insurance of
condominiums.
Sec. 118. Mutual Mortgage
Insurance Fund.
Sec. 119. Hawaiian home lands
and Indian reservations.
Sec. 120. Conforming and
technical amendments.
Sec. 121. Insurance of
mortgages.
Sec. 122. Home equity conversion
mortgages.
Sec. 123. Energy efficient
mortgages program.
Sec. 124. Pilot program for
automated process for borrowers without sufficient credit history.
Sec. 125. Homeownership
preservation.
Sec. 126. Use of FHA savings
for improvements in FHA technologies, procedures, processes, program
performance, staffing, and salaries.
Sec. 127. Post-purchase housing
counseling eligibility improvements.
Sec. 128. Pre-purchase
homeownership counseling demonstration.
Sec. 129. Fraud
prevention.
Sec. 130. Limitation on
mortgage insurance premium increases.
Sec. 131. Savings
provision.
Sec. 132.
Implementation.
Sec. 133. Moratorium on
implementation of risk-based premiums.
Subtitle B—Manufactured
Housing Loan Modernization
Sec. 141. Short
title.
Sec. 142. Purposes.
Sec. 143. Exception to
limitation on financial institution portfolio.
Sec. 144. Insurance
benefits.
Sec. 145. Maximum loan
limits.
Sec. 146. Insurance
premiums.
Sec. 147. Technical
corrections.
Sec. 148. Revision of
underwriting criteria.
Sec. 149. Prohibition against
kickbacks and unearned fees.
Sec. 150. Leasehold
requirements.
TITLE II—Mortgage foreclosure
protections for servicemembers
Sec. 201. Temporary increase in
maximum loan guaranty amount for certain housing loans guaranteed by the
Secretary of Veterans Affairs.
Sec. 202. Counseling on
mortgage foreclosures for members of the Armed Forces returning from service
abroad.
Sec. 203. Enhancement of
protections for servicemembers relating to mortgages and mortgage
foreclosures.
TITLE III—Emergency assistance
for the redevelopment of abandoned and foreclosed homes
Sec. 301. Emergency assistance
for the redevelopment of abandoned and foreclosed homes.
Sec. 302. Nationwide
distribution of resources.
Sec. 303. Limitation on use of
funds with respect to eminent domain.
Sec. 304. Limitation on
distribution of funds.
Sec. 305. Counseling
intermediaries.
TITLE IV—Housing counseling
resources
Sec. 401. Housing counseling
resources.
Sec. 402. Credit
counseling.
TITLE V—Mortgage Disclosure
Improvement Act
Sec. 501. Short
title.
Sec. 502. Enhanced mortgage loan
disclosures.
Sec. 503. Community Development
Investment Authority for depository institutions.
Sec. 504. Federal Home loan
bank refinancing authority for certain residential mortgage loans.
TITLE VI—Tax-related
provisions
Sec. 601. Election for 4-year
carryback of certain net operating losses and temporary suspension of 90
percent AMT limit.
Sec. 602. Modifications on use
of qualified mortgage bonds; temporary increased volume cap for certain housing
bonds.
Sec. 603. Credit for certain
home purchases.
Sec. 604. Additional standard
deduction for real property taxes for nonitemizers.
Sec. 605. Election to
accelerate AMT and R and D credits in lieu of bonus depreciation.
Sec. 606. Use of amended income
tax returns to take into account receipt of certain hurricane-related casualty
loss grants by disallowing previously taken casualty loss
deductions.
Sec. 607. Waiver of deadline on
construction of GO Zone property eligible for bonus depreciation.
Sec. 608. Temporary tax relief
for Kiowa County, Kansas and surrounding area.
TITLE VII—Emergency
designation
Sec. 701. Emergency
designation.
TITLE VIII—REIT investment
diversification and empowerment
Sec. 801. Short title;
amendment of 1986 Code.
Subtitle A—Taxable REIT
subsidiaries
Sec. 811. Conforming taxable
REIT subsidiary asset test.
Subtitle B—Dealer
sales
Sec. 821. Holding period under
safe harbor.
Sec. 822. Determining value of
sales under safe harbor.
Subtitle C—Health care
REITs
Sec. 831. Conformity for health
care facilities.
Subtitle D—Effective dates and
sunset
Sec. 841. Effective dates and
sunset.
TITLE IX—VETERANS HOUSING
MATTERS
Sec. 901. Home improvements and
structural alterations for totally disabled members of the Armed Forces before
discharge or release from the Armed Forces.
Sec. 902. Eligibility for
specially adapted housing benefits and assistance for members of the Armed
Forces with service-connected disabilities and individuals residing outside the
United States.
Sec. 903. Specially adapted
housing assistance for individuals with severe burn injuries.
Sec. 904. Extension of
assistance for individuals residing temporarily in housing owned by a family
member.
Sec. 905. Increase in specially
adapted housing benefits for disabled veterans.
Sec. 906. Report on specially
adapted housing for disabled individuals.
Sec. 907. Report on specially
adapted housing assistance for individuals who reside in housing owned by a
family member on permanent basis.
Sec. 908. Definition of annual
income for purposes of section 8 and other public housing programs.
Sec. 909. Payment of
transportation of baggage and household effects for members of the Armed Forces
who relocate due to foreclosure of leased housing.
TITLE X—Clean energy tax
stimulus
Sec. 1001. Short title; etc.
Subtitle A—Extension of clean
energy production incentives
Sec. 1011. Extension and
modification of renewable energy production tax credit.
Sec. 1012. Extension and
modification of solar energy and fuel cell investment tax credit.
Sec. 1013. Extension and
modification of residential energy efficient property credit.
Sec. 1014. Extension and
modification of credit for clean renewable energy bonds.
Sec. 1015. Extension of special
rule to implement FERC restructuring policy.
Subtitle B—Extension of
incentives to improve energy efficiency
Sec. 1021. Extension and
modification of credit for energy efficiency improvements to existing
homes.
Sec. 1022. Extension and
modification of tax credit for energy efficient new homes.
Sec. 1023. Extension and
modification of energy efficient commercial buildings deduction.
Sec. 1024. Modification and
extension of energy efficient appliance credit for appliances produced after
2007.
TITLE XI—Sense of the
Senate
Sec. 1101. Sense of the
Senate.
<enum>I</enum><header>FHA Modernization Act of
2008</header>
<section id="id6BB5675542FF4D25B94948E5CCF72965"><enum>101.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>FHA Modernization Act of 2008</quote>.</text>
</section><subtitle commented="no" id="id34EFB84BE7AE4337B272596348FF0F61" level-type="subsequent"><enum>A</enum><header display-inline="yes-display-inline">Building American Homeownership</header>
<section commented="no" display-inline="no-display-inline" id="id392BF573D7614CBC84BCC9547B2C3ED3" section-type="subsequent-section"><enum>111.</enum><header display-inline="yes-display-inline">Short title</header><text display-inline="no-display-inline">This subtitle may be cited as the
<quote>Building American Homeownership Act of 2008</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="H60B7625FDFCA412A9E585307AF4CA67" section-type="subsequent-section"><enum>112.</enum><header display-inline="yes-display-inline">Maximum principal loan obligation</header>
<subsection commented="no" display-inline="no-display-inline" id="id4C04CDD906BD4D02AEA82BE25150AFF4"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Paragraph (2) of section 203(b)(2) of the
National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(b)(2)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idF587D6C043024B1A97D1642734146709"><enum>(1)</enum><text display-inline="yes-display-inline">by amending subparagraphs (A) and (B) to
read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idB7FD18F06E9F43DEA5046852386D95DF" reported-display-style="italic" style="OLC">
<subparagraph id="HFC40240962964433AF9583134E344B00"><enum>(A)</enum><text display-inline="yes-display-inline">not to exceed the lesser of—</text>
<clause id="H9F612D3ABA9F43E7B5C03597480170C7"><enum>(i)</enum><text display-inline="yes-display-inline">in the case of a 1-family residence, 110
percent of the median 1-family house price in the area, as determined by the
Secretary; and in the case of a 2-, 3-, or 4-family residence, the percentage
of such median price that bears the same ratio to such median price as the
dollar amount limitation in effect for 2007 under section 305(a)(2) of the
<act-name parsable-cite="FHLMCA">Federal Home Loan Mortgage Corporation
Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1454">12 U.S.C. 1454(a)(2)</external-xref>) for a 2-, 3-, or 4-family residence,
respectively, bears to the dollar amount limitation in effect for 2007 under
such section for a 1-family residence; or</text>
</clause><clause id="H79C2BE41307F48D8B1928C5FB6F67300"><enum>(ii)</enum><text display-inline="yes-display-inline">132 percent of the dollar amount limitation
in effect for 2007 under such section 305(a)(2) for a residence of the
applicable size (without regard to any authority to increase such limitations
with respect to properties located in Alaska, Guam, Hawaii, or the Virgin
Islands), except that each such maximum dollar amount shall be adjusted
effective January 1 of each year beginning with 2009, by adding to or
subtracting from each such amount (as it may have been previously adjusted) a
percentage thereof equal to the percentage increase or decrease, during the
most recently completed 12-month or 4-quarter period ending before the time of
determining such annual adjustment, in an housing price index developed or
selected by the Secretary for purposes of adjustments under this clause;</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">except that the dollar amount limitation
in effect under this subparagraph for any size residence for any area may not
be less than the greater of: (I) the dollar amount limitation in effect under
this section for the area on October 21, 1998; or (II) 65 percent of the dollar
amount limitation in effect for 2007 under such section 305(a)(2) for a
residence of the applicable size, as such limitation is adjusted by any
subsequent percentage adjustments determined under clause (ii) of this
subparagraph; and</continuation-text></subparagraph><subparagraph id="id6BF55D9FCDCB48C99BA0B317E0CE60DC"><enum>(B)</enum><text>not to exceed 100 percent
of the appraised value of the property.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id30A1B62AEC22466D813369291B545A92"><enum>(2)</enum><text>in the matter following
subparagraph (B), by striking the second sentence (relating to a definition of
<quote>average closing cost</quote>) and all that follows through
<quote>section 3103A(d) of title 38, United States Code.</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idB6B159019F7C4F1EB59D5BA774E77868"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by subsection (a) shall take effect upon
the expiration of the date described in section 202(a) of the Economic Stimulus
Act of 2008 (<external-xref legal-doc="public-law" parsable-cite="pl/110/185">Public Law 110–185</external-xref>).</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id231152FEB52C451DBE63FC5E006EC8E0" section-type="subsequent-section"><enum>113.</enum><header display-inline="yes-display-inline">Cash investment requirement and prohibition
of seller-funded downpayment assistance</header><text display-inline="no-display-inline">Paragraph 9 of section 203(b) of the
National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(b)(9)</external-xref>) is amended to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idDD286A70E6EF4819A41FDE751BB29105" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idC948F606FDB24650A7A475584AADECDC"><enum>(9)</enum><header display-inline="yes-display-inline">Cash Investment requirement</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id0C3464FDB93B4EE78BE987F6D4EEA7F0"><enum>(A)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">A mortgage insured under this section shall
be executed by a mortgagor who shall have paid, in cash, on account of the
property an amount equal to not less than 3.5 percent of the appraised value of
the property or such larger amount as the Secretary may determine.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB19D36E8E7EB4DD38F81965B5434DB78"><enum>(B)</enum><header display-inline="yes-display-inline">Family
members</header><text display-inline="yes-display-inline">For purposes of this
paragraph, the Secretary shall consider as cash or its equivalent any amounts
borrowed from a family member (as such term is defined in section 201), subject
only to the requirements that, in any case in which the repayment of such
borrowed amounts is secured by a lien against the property, that—</text>
<clause commented="no" display-inline="no-display-inline" id="id3118FA395E484120913FF26A3F121394"><enum>(i)</enum><text display-inline="yes-display-inline">such lien shall be subordinate to the
mortgage; and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idEE98752B9E6F47F1BD4EE65D677B0113"><enum>(ii)</enum><text display-inline="yes-display-inline">the sum of the principal obligation of the
mortgage and the obligation secured by such lien may not exceed 100 percent of
the appraised value of the property.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id58760A6BDD62428B85936FEF0EF04778"><enum>(C)</enum><header display-inline="yes-display-inline">Prohibited sources</header><text display-inline="yes-display-inline">In no case shall the funds required by
subparagraph (A) consist, in whole or in part, of funds provided by any of the
following parties before, during, or after closing of the property sale:</text>
<clause commented="no" display-inline="no-display-inline" id="id3E49C517E4B7492198D0F0AAE57A96AB"><enum>(i)</enum><text display-inline="yes-display-inline">The seller or any other person or entity
that financially benefits from the transaction.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id7CC17F2BBCAA4302980032297888B140"><enum>(ii)</enum><text display-inline="yes-display-inline">Any third party or entity that is
reimbursed, directly or indirectly, by any of the parties described in clause
(i).</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="H7DF1BB9B2337478299167F64F5B6578F" section-type="subsequent-section"><enum>114.</enum><header display-inline="yes-display-inline">Mortgage insurance premiums</header><text display-inline="no-display-inline">Section 203(c)(2) of the National Housing
Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(c)(2)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idA08EFF3AC6144F33A1FC10F6C9F8B429"><enum>(1)</enum><text display-inline="yes-display-inline">in the matter preceding subparagraph (A),
by striking <quote>or of the General Insurance Fund</quote> and all that
follows through <quote>section 234(c),,</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id77A8BD2D83FF42449194B7F62E08CF28"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (A)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id3C98F2B12FFC4C3BB061F8F47EFB60A3"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>2.25 percent</quote> and
inserting <quote>3 percent</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id37014651D8E54659A1A32E0F349FF85E"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>2.0 percent</quote> and
inserting <quote>2.75 percent</quote>.</text>
</subparagraph></paragraph></section><section commented="no" display-inline="no-display-inline" id="HBFED2AC846684C6F8E272806A34650FF" section-type="subsequent-section"><enum>115.</enum><header display-inline="yes-display-inline">Rehabilitation loans</header><text display-inline="no-display-inline">Subsection (k) of section 203 of the
National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(k)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H7C0CC95DF7EC452CABCFECC8EE4C0215"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking
<quote>on</quote> and all that follows through <quote>1978</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HDA0CFABF1D2C4192B1CA49DB8DFF4AB"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (5)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HB29CB42358FA42B39540B3159D00D432"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>General Insurance
Fund</quote> the first place it appears and inserting <quote>Mutual Mortgage
Insurance Fund</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H8253660EBB8044DB98B271F64F3B8E13"><enum>(B)</enum><text display-inline="yes-display-inline">in the second sentence, by striking the
comma and all that follows through <quote>General Insurance
Fund</quote>.</text>
</subparagraph></paragraph></section><section commented="no" display-inline="no-display-inline" id="H3BCFC19AF00C46F09DA988BF852588E7" section-type="subsequent-section"><enum>116.</enum><header display-inline="yes-display-inline">Discretionary action</header><text display-inline="no-display-inline">The National Housing Act is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HB411799C2E8042188561B9F156D87795"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (e) of section 202 (12 U.S.C.
1708(e))—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H5CAE1DEE38E14CBE9B5E61BB00D04FBC"><enum>(A)</enum><text display-inline="yes-display-inline">in paragraph (3)(B), by striking
<quote>section 202(e) of the National Housing Act</quote> and inserting
<quote>this subsection</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9F50402CFD9E44BA9E689DF0DA5E1FEA"><enum>(B)</enum><text display-inline="yes-display-inline">by redesignating such subsection as
subsection (f);</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H158D663824A24F80AD47729355CC9EC0"><enum>(2)</enum><text display-inline="yes-display-inline">by striking paragraph (4) of section 203(s)
(<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(s)(4)</external-xref>) and inserting the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H2E4EDB2132FE4E088240B7A4352C8059" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H40E91ABDFEA947CA94B0B914BECA5E60"><enum>(4)</enum><text display-inline="yes-display-inline">the Secretary of
Agriculture;</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0C9A08D0225444FCB657DD9574A1AB4E"><enum>(3)</enum><text display-inline="yes-display-inline">by transferring subsection (s) of section
203 (as amended by paragraph (2) of this section) to section 202, inserting
such subsection after subsection (d) of section 202, and redesignating such
subsection as subsection (e).</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H80CCF6DC3C75403099291800744ED004" section-type="subsequent-section"><enum>117.</enum><header display-inline="yes-display-inline">Insurance of condominiums</header>
<subsection commented="no" display-inline="no-display-inline" id="H0E756DBD50D542D7A40057CE54D6576D"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 234 of the National Housing Act (12
U.S.C. 1715y) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HEDAA016FC75F48CBB9CAFF7334C1E7A6"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (c), in the first
sentence—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HFA4FAEED1CC64116A8463B36EFDB1DE3"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>and</quote> before
<quote>(2)</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HC29D39E659EA4355A5986FCA093BF3C2"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting before the period at the end
the following: <quote>, and (3) the project has a blanket mortgage insured by
the Secretary under subsection (d)</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H07F8AB7E49D74D9FBD5B826CF0A2FFD4"><enum>(2)</enum><text display-inline="yes-display-inline">in subsection (g), by striking <quote>,
except that</quote> and all that follows and inserting a period.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H476EFC54B64644EB84CCDF19456E5F63"><enum>(b)</enum><header display-inline="yes-display-inline">Definition of Mortgage</header><text display-inline="yes-display-inline">Section 201(a) of the
<act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1707">12 U.S.C. 1707(a)</external-xref>)
is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6A272DEEACC0413E9BEF3F3C51D56E5D"><enum>(1)</enum><text display-inline="yes-display-inline">before <quote>a first mortgage</quote>
insert <quote>(A)</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5123D502381B445DAC5C42ADC66EE483"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>or on a leasehold
(1)</quote> and inserting <quote>(B) a first mortgage on a leasehold on real
estate (i)</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6735BFD3903A4F2B8233A4DF334E2049"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>or (2)</quote> and
inserting <quote>, or (ii)</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H836ACA2051234E2A8BFDEC342E080075"><enum>(4)</enum><text display-inline="yes-display-inline">by inserting before the semicolon the
following: <quote>, or (C) a first mortgage given to secure the unpaid purchase
price of a fee interest in, or long-term leasehold interest in, real estate
consisting of a one-family unit in a multifamily project, including a project
in which the dwelling units are attached, or are manufactured housing units,
semi-detached, or detached, and an undivided interest in the common areas and
facilities which serve the project</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H885D3E92E4D5448F8769D85FB4397B18"><enum>(c)</enum><header display-inline="yes-display-inline">Definition of real estate</header><text display-inline="yes-display-inline">Section 201 of the National Housing Act
(12 U.S.C.
1707) is amended by adding at the end the following new
subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H77F30B42104D4DF2B400A8C0602C793D" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H928DC41E3258437491E46CC4A4FEB01"><enum>(g)</enum><text display-inline="yes-display-inline">The term <term>real estate</term> means
land and all natural resources and structures permanently affixed to the land,
including residential buildings and stationary manufactured housing. The
Secretary may not require, for treatment of any land or other property as real
estate for purposes of this title, that such land or property be treated as
real estate for purposes of State
taxation.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HE4C61BA8EF27450F91624B5CC31BAF90" section-type="subsequent-section"><enum>118.</enum><header display-inline="yes-display-inline">Mutual Mortgage Insurance Fund</header>
<subsection commented="no" display-inline="no-display-inline" id="HD9547D0BF6A440D6BCE793A396145113"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Subsection (a) of section 202 of the
National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1708">12 U.S.C. 1708(a)</external-xref>) is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H8DCD0CBD21284FD900A8E7F8B56200AC" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H524E07606D5F4C1DA1683126D0593ECA"><enum>(a)</enum><header display-inline="yes-display-inline">Mutual Mortgage Insurance Fund</header>
<paragraph commented="no" display-inline="no-display-inline" id="H2D974CAF8AE44CE99F19DD6EC2DD89D6"><enum>(1)</enum><header display-inline="yes-display-inline">Establishment</header><text display-inline="yes-display-inline">Subject to the provisions of the Federal
Credit Reform Act of 1990, there is hereby created a Mutual Mortgage Insurance
Fund (in this title referred to as the <quote>Fund</quote>), which shall be
used by the Secretary to carry out the provisions of this title with respect to
mortgages insured under section 203. The Secretary may enter into commitments
to guarantee, and may guarantee, such insured mortgages.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6ADEB692C33740F9A257175CF4EFDCFC"><enum>(2)</enum><header display-inline="yes-display-inline">Limit on loan guarantees</header><text display-inline="yes-display-inline">The authority of the Secretary to enter
into commitments to guarantee such insured mortgages shall be effective for any
fiscal year only to the extent that the aggregate original principal loan
amount under such mortgages, any part of which is guaranteed, does not exceed
the amount specified in appropriations Acts for such fiscal year.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H14532D8E24244D3E825C59A22799DC2B"><enum>(3)</enum><header display-inline="yes-display-inline">Fiduciary responsibility</header><text display-inline="yes-display-inline">The Secretary has a responsibility to
ensure that the Mutual Mortgage Insurance Fund remains financially
sound.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9D476CCF3DBE4CD198875197A07780F3"><enum>(4)</enum><header display-inline="yes-display-inline">Annual independent actuarial
study</header><text display-inline="yes-display-inline">The Secretary shall
provide for an independent actuarial study of the Fund to be conducted
annually, which shall analyze the financial position of the Fund. The Secretary
shall submit a report annually to the Congress describing the results of such
study and assessing the financial status of the Fund. The report shall
recommend adjustments to underwriting standards, program participation, or
premiums, if necessary, to ensure that the Fund remains financially sound. The
report shall also include an evaluation of the quality control procedures and
accuracy of information utilized in the process of underwriting loans
guaranteed by the Fund. Such evaluation shall include a review of the risk
characteristics of loans based not only on borrower information and
performance, but on risks associated with loans originated or funded by various
entities or financial institutions.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAEDC349B35FA485685B516BFADF02EAA"><enum>(5)</enum><header display-inline="yes-display-inline">Quarterly reports</header><text display-inline="yes-display-inline">During each fiscal year, the Secretary
shall submit a report to the Congress for each calendar quarter, which shall
specify for mortgages that are obligations of the Fund—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H03C496D651774FF3814FFF37CF5F66E9"><enum>(A)</enum><text display-inline="yes-display-inline">the cumulative volume of loan guarantee
commitments that have been made during such fiscal year through the end of the
quarter for which the report is submitted;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE91B6B214D6D47BBABC6D1ABF829C3E"><enum>(B)</enum><text display-inline="yes-display-inline">the types of loans insured, categorized by
risk;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HE289A415663048E2B27D000058CCE6FD"><enum>(C)</enum><text display-inline="yes-display-inline">any significant changes between actual and
projected claim and prepayment activity;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H300D6168D8A3416BA44278277E71A48C"><enum>(D)</enum><text display-inline="yes-display-inline">projected versus actual loss rates;
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H51DB741F86E246808D910048CAD5270"><enum>(E)</enum><text display-inline="yes-display-inline">updated projections of the annual subsidy
rates to ensure that increases in risk to the Fund are identified and mitigated
by adjustments to underwriting standards, program participation, or premiums,
and the financial soundness of the Fund is maintained.</text>
</subparagraph><continuation-text commented="no" continuation-text-level="paragraph">The
first quarterly report under this paragraph shall be submitted on the last day
of the first quarter of fiscal year 2008, or on the last day of the first full
calendar quarter following the enactment of the Building American Homeownership
Act of 2008, whichever is later.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA45B54F5F0C8464BB4A9C158F7B3A66B"><enum>(6)</enum><header display-inline="yes-display-inline">Adjustment of premiums</header><text display-inline="yes-display-inline">If, pursuant to the independent actuarial
study of the Fund required under paragraph (4), the Secretary determines that
the Fund is not meeting the operational goals established under paragraph (7)
or there is a substantial probability that the Fund will not maintain its
established target subsidy rate, the Secretary may either make programmatic
adjustments under this title as necessary to reduce the risk to the Fund, or
make appropriate premium adjustments.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE1AF2C2A2E394776A5282BD33C2431E1"><enum>(7)</enum><header display-inline="yes-display-inline">Operational goals</header><text display-inline="yes-display-inline">The operational goals for the Fund
are—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H94954EB44B6D4AD2A8F4C4A6D78100A2"><enum>(A)</enum><text display-inline="yes-display-inline">to minimize the default risk to the Fund
and to homeowners by among other actions instituting fraud prevention quality
control screening not later than 18 months after the date of enactment of the
Building American Homeownership Act of 2008; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7FC06B590A4B416492495E6CF2C1D393"><enum>(B)</enum><text display-inline="yes-display-inline">to meet the housing needs of the borrowers
that the single family mortgage insurance program under this title is designed
to
serve.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H1ECBD4D83BF949CDB97CD4A3FC8B6E26"><enum>(b)</enum><header display-inline="yes-display-inline">Obligations of Fund</header><text display-inline="yes-display-inline">The National Housing Act is amended as
follows:</text>
<paragraph commented="no" display-inline="no-display-inline" id="HCB8987B1821744CBA3A83FB61DE32478"><enum>(1)</enum><header display-inline="yes-display-inline">Homeownership voucher program
mortgages</header><text display-inline="yes-display-inline">In section 203(v)
(<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(v)</external-xref>)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="HF9CEF13121534D6E8B55F18EAF3DC8B0"><enum>(A)</enum><text display-inline="yes-display-inline">by striking <quote>Notwithstanding section
202 of this title, the</quote> and inserting <quote>The</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD0574308ECBD465097C3AD15AD6673BA"><enum>(B)</enum><text display-inline="yes-display-inline">by striking <quote>General Insurance
Fund</quote> the first place such term appears and all that follows through the
end of the subsection and inserting <quote>Mutual Mortgage Insurance
Fund.</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H2544F362EF204017B622E024D65E62C6"><enum>(2)</enum><header display-inline="yes-display-inline">Home equity conversion
mortgages</header><text display-inline="yes-display-inline">Section
255(i)(2)(A) of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-20">12 U.S.C. 1715z–20(i)(2)(A)</external-xref>) is
amended by striking <quote>General Insurance Fund</quote> and inserting
<quote>Mutual Mortgage Insurance Fund</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HA34793EE40B443ED9E97E61C008C9DEB"><enum>(c)</enum><header display-inline="yes-display-inline">Conforming amendments</header><text display-inline="yes-display-inline">The National Housing Act is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HBBFEA1C548B948E48C5EB00021CC15BB"><enum>(1)</enum><text display-inline="yes-display-inline">in section 205 (<external-xref legal-doc="usc" parsable-cite="usc/12/1711">12 U.S.C. 1711</external-xref>), by
striking subsections (g) and (h); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0B356972B53A410E9FE9004052DD1BE8"><enum>(2)</enum><text display-inline="yes-display-inline">in section 519(e) (<external-xref legal-doc="usc" parsable-cite="usc/12/1735c">12 U.S.C. 1735c(e)</external-xref>), by
striking <quote>203(b)</quote> and all that follows through
<quote>203(i)</quote> and inserting <quote>203, except as determined by the
Secretary</quote>.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H8FAABBE885674EC282A0E8C5E55254D8" section-type="subsequent-section"><enum>119.</enum><header display-inline="yes-display-inline">Hawaiian home lands and Indian
reservations</header>
<subsection commented="no" display-inline="no-display-inline" id="H507780A251794CDFBAAEBCB2033BACA4"><enum>(a)</enum><header display-inline="yes-display-inline">Hawaiian home lands</header><text display-inline="yes-display-inline">Section 247(c) of the National Housing Act
(<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-12">12 U.S.C. 1715z–12(c)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H553F5BE21F7240B2A713C3121554B7D6"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>General Insurance Fund
established in section 519</quote> and inserting <quote>Mutual Mortgage
Insurance Fund</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAA8A0707991A4096BCE8A69965552407"><enum>(2)</enum><text display-inline="yes-display-inline">in the second sentence, by striking
<quote>(1) all references</quote> and all that follows through <quote>and
(2)</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H636BB133975B4FF79942F4A12092573E"><enum>(b)</enum><header display-inline="yes-display-inline">Indian reservations</header><text display-inline="yes-display-inline">Section 248(f) of the National Housing Act
(<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-13">12 U.S.C. 1715z–13(f)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HFFB5CA8895BB427686DD08D85600DEF9"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>General Insurance
Fund</quote> the first place it appears through <quote>519</quote> and
inserting <quote>Mutual Mortgage Insurance Fund</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5D3EC7E665804F27B1C25EE28DA14C3B"><enum>(2)</enum><text display-inline="yes-display-inline">in the second sentence, by striking
<quote>(1) all references</quote> and all that follows through <quote>and
(2)</quote>.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H34755892DFAA4BC386E1793CC284EAC5" section-type="subsequent-section"><enum>120.</enum><header display-inline="yes-display-inline">Conforming and technical
amendments</header>
<subsection commented="no" display-inline="no-display-inline" id="H103280FFE15C4D9CBC8231A400487D93"><enum>(a)</enum><header display-inline="yes-display-inline">Repeals</header><text display-inline="yes-display-inline">The following provisions of the National
Housing Act are repealed:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H4EB94FE578E24027A05DCB69519DC6EA"><enum>(1)</enum><text display-inline="yes-display-inline">Subsection (i) of section 203 (12 U.S.C.
1709(i)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD916573E2AFF4C26A5DC280000469C68"><enum>(2)</enum><text display-inline="yes-display-inline">Subsection (o) of section 203 (12 U.S.C.
1709(o)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H65CAD5FF329A4AE88CADE891E35E705D"><enum>(3)</enum><text display-inline="yes-display-inline">Subsection (p) of section 203 (12 U.S.C.
1709(p)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB19B229995984899AD4BA17F9BDA243F"><enum>(4)</enum><text display-inline="yes-display-inline">Subsection (q) of section 203 (12 U.S.C.
1709(q)).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H999410D928634C6290EFEBA9A4C3157C"><enum>(5)</enum><text display-inline="yes-display-inline">Section 222 (<external-xref legal-doc="usc" parsable-cite="usc/12/1715m">12 U.S.C. 1715m</external-xref>).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD24E94D015B04464983400EB54ECA046"><enum>(6)</enum><text display-inline="yes-display-inline">Section 237 (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-2">12 U.S.C. 1715z–2</external-xref>).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H97052E9C73BC4CEB9CA8C3A015C8FFB0"><enum>(7)</enum><text display-inline="yes-display-inline">Section 245 (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-10">12 U.S.C. 1715z–10</external-xref>).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H5346814420E84403978325E9487B5F3F"><enum>(b)</enum><header display-inline="yes-display-inline">Definition of area</header><text display-inline="yes-display-inline">Section 203(u)(2)(A) of the National
Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(u)(2)(A)</external-xref>) is amended by striking
<quote>shall</quote> and all that follows and inserting <quote>means a
metropolitan statistical area as established by the Office of Management and
Budget;</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HD8ED76BAAAE44D68BD7D6DBB60BE47FC"><enum>(c)</enum><header display-inline="yes-display-inline">Definition of State</header><text display-inline="yes-display-inline">Section 201(d) of the National Housing Act
(<external-xref legal-doc="usc" parsable-cite="usc/12/1707">12 U.S.C. 1707(d)</external-xref>) is amended by striking <quote>the Trust Territory of the
Pacific Islands</quote> and inserting <quote>the Commonwealth of the Northern
Mariana Islands</quote>.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idB125873B0A7C44538E12F4FF1C1E382D" section-type="subsequent-section"><enum>121.</enum><header display-inline="yes-display-inline">Insurance of mortgages</header><text display-inline="no-display-inline">Subsection (n)(2) of section 203 of the
National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(n)(2)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDddef9ddf41d54b88a9ef92336f4365b5"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (A), by inserting <quote>or
subordinate mortgage or</quote> before <quote>lien given</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6B553233A9AD4521923B8202DF6FFA88"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (C), by inserting <quote>or
subordinate mortgage or</quote> before <quote>lien</quote>.</text>
</paragraph></section><section id="idA160D5E2746C426C96FE9D86BEE4AB0A"><enum>122.</enum><header>Home equity conversion
mortgages</header>
<subsection commented="no" display-inline="no-display-inline" id="H7E5DBF1FB2294F26A90648F8BA5C7CA8"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Section 255 of the
<act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C.
1715z–20) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HFF466F944C2F4A869C97E3033418951D"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)(2), insert
<quote><quote>real estate,</quote></quote> after
<quote><quote>mortgagor</quote>,</quote>;</text>
</paragraph><paragraph id="id4B13B9E22C094B7DBB74EAF605AFA872"><enum>(2)</enum><text>by amending subsection
(d)(1) to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idB8975B9A9BD74BE9A516E94BAE4C84ED" reported-display-style="italic" style="OLC">
<paragraph id="idB95AD69016454D1AA5C22ECAE55FF9F1"><enum>(1)</enum><text>have been originated by a
mortgagee approved by the
Secretary;</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="idAD56856D0BC04FDC8AD123E89EE4BB1F"><enum>(3)</enum><text>by amending subsection
(d)(2)(B) to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idD30B55931C1C47CDA38A73A07B396778" reported-display-style="italic" style="OLC">
<subparagraph id="id4657DBA2FBDD47E09CDD2ECF4339D0B0"><enum>(B)</enum><text>has received adequate
counseling, as provided in subsection (f), by an independent third party that
is not, either directly or indirectly, associated with or compensated by a
party involved in—</text>
<clause id="idDDE30EF97B1C4E2097A0CACF5A6A45AC"><enum>(i)</enum><text>originating or servicing
the mortgage;</text>
</clause><clause id="idF80413B4D5EC48E38C507A375CB59799"><enum>(ii)</enum><text>funding the loan
underlying the mortgage; or</text>
</clause><clause id="idEA1DD0C2CB274930AD617B0BA9655E8B"><enum>(iii)</enum><text>the sale of annuities,
investments, long-term care insurance, or any other type of financial or
insurance
product;</text>
</clause></subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="idEDE08615533B44F9A1A39688DE7964BE"><enum>(4)</enum><text>in subsection (f)—</text>
<subparagraph id="idD4B3111B41C343D0A7AF5BD744EC50BC"><enum>(A)</enum><text>by striking <quote>(f)
<header-in-text level="subsection" style="OLC">Information services for
mortgagors</header-in-text>.—</quote> and inserting <quote>(f)
<header-in-text level="subsection" style="OLC">Counseling services and
information for mortgagors</header-in-text>.—</quote>; and</text>
</subparagraph><subparagraph id="idEE23B728410D4EB79B645656CA259FD8"><enum>(B)</enum><text>by amending the matter
preceding paragraph (1) to read as follows: <quote>The Secretary shall provide
or cause to be provided adequate counseling for the mortgagor, as described in
subsection (d)(2)(B). Such counseling shall be provided by counselors that meet
qualification standards and follow uniform counseling protocols. The
qualification standards and counseling protocols shall be established by the
Secretary within 12 months of the date of enactment of the Reverse Mortgage
Proceeds Protection Act. The protocols shall require a qualified counselor to
discuss with each mortgagor information which shall include—</quote></text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="H6A3591BB22904827846C00AB6DFDD19F"><enum>(5)</enum><text display-inline="yes-display-inline">in subsection (g), by striking
<quote>established under section 203(b)(2)</quote> and all that follows through
<quote>located</quote> and inserting <quote>limitation established under
section 305(a)(2) of the <act-name parsable-cite="FHLMCA">Federal Home Loan
Mortgage Corporation Act</act-name> for a 1-family residence</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H63CE18215B1A414D00D13C60B59347CE"><enum>(6)</enum><text display-inline="yes-display-inline">in subsection (i)(1)(C), by striking
<quote>limitations</quote> and inserting <quote>limitation</quote>;</text>
</paragraph><paragraph id="id417F29F5F7D045E6A800302BABCC4702"><enum>(7)</enum><text>by striking subsection
(l);</text>
</paragraph><paragraph id="id4F99339A89984EA5B4360DBCE11E1A4F"><enum>(8)</enum><text>by redesignating
subsection (m) as subsection (l);</text>
</paragraph><paragraph id="idFC8E67768397451EA71181A0C79B9ED9"><enum>(9)</enum><text>by amending subsection
(l), as so redesignated, to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idB023853C972249B187F3805984C98EA1" reported-display-style="italic" style="OLC">
<subsection id="id1B0005C34577447AB494DA93EA8C0403"><enum>(l)</enum><header>Funding for
counseling</header><text>The Secretary may use a portion of the mortgage
insurance premiums collected under the program under this section to adequately
fund the counseling and disclosure activities required under subsection (f),
including counseling for those homeowners who elect not to take out a home
equity conversion mortgage, provided that the use of such funds is based upon
accepted actuarial principles.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB0399C151AF44AB8A48F578900D8CBB2"><enum>(10)</enum><text display-inline="yes-display-inline">by adding at the end the following new
subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id71B8F25A9E59402FBB9F1D572C370804" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HF59798CA590845B3B1EC922B786E5F46"><enum>(m)</enum><header display-inline="yes-display-inline">Authority To Insure Home Purchase
Mortgage</header>
<paragraph commented="no" display-inline="no-display-inline" id="H30699D06E4C44EEF86F272C7E6F8A855"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of this
section, the Secretary may insure, upon application by a mortgagee, a home
equity conversion mortgage upon such terms and conditions as the Secretary may
prescribe, when the home equity conversion mortgage will be used to purchase a
1- to 4-family dwelling unit, one unit of which the mortgagor will occupy as a
primary residence, and to provide for any future payments to the mortgagor,
based on available equity, as authorized under subsection (d)(9).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9EB8F93D955A4499966B89B30B576237"><enum>(2)</enum><header display-inline="yes-display-inline">Limitation on principal
obligation</header><text display-inline="yes-display-inline">A home equity
conversion mortgage insured pursuant to paragraph (1) shall involve a principal
obligation that does not exceed the dollar amount limitation determined under
section 305(a)(2) of the <act-name parsable-cite="FHLMCA">Federal Home Loan
Mortgage Corporation Act</act-name> for a 1-family residence.</text>
</paragraph></subsection><subsection id="id6B1850E8AD9B448C93C00108786A5745"><enum>(n)</enum><header>Requirements on
mortgage originators</header>
<paragraph id="id3CA77548F2A3488B92DAE3687E0D03C1"><enum>(1)</enum><header>In
general</header><text>The mortgagee and any other party that participates in
the origination of a mortgage to be insured under this section shall—</text>
<subparagraph id="IDb935d0ac15074703b1268878d0616b70"><enum>(A)</enum><text>not participate in, be
associated with, or employ any party that participates in or is associated with
any other financial or insurance activity; or</text>
</subparagraph><subparagraph id="ID822b0afca4974f63a72a613981113d15"><enum>(B)</enum><text>demonstrate to the
Secretary that the mortgagee or other party maintains, or will maintain,
firewalls and other safeguards designed to ensure that—</text>
<clause id="ID6e71c5396c404f7cbf8e00f32f14518b"><enum>(i)</enum><text>individuals participating
in the origination of the mortgage shall have no involvement with, or incentive
to provide the mortgagor with, any other financial or insurance product;
and</text>
</clause><clause id="ID9ab7009f13e7493dbac4344d00a98592"><enum>(ii)</enum><text>the mortgagor shall not
be required, directly or indirectly, as a condition of obtaining a mortgage
under this section, to purchase any other financial or insurance
product.</text>
</clause></subparagraph></paragraph><paragraph id="id7E0EA0E80A684866A18C6E5D2B3F67DB"><enum>(2)</enum><header>Approval of other
parties</header><text>All parties that participate in the origination of a
mortgage to be insured under this section shall be approved by the
Secretary.</text>
</paragraph></subsection><subsection id="ID70f4234e3fab47138753dba16e5e7210"><enum>(o)</enum><header>Prohibition against
requirements To purchase additional products</header><text>The mortgagee or any
other party shall not be required by the mortgagor or any other party to
purchase an insurance, annuity, or other additional product as a requirement or
condition of eligibility for a mortgage authorized under subsection (c).</text>
</subsection><subsection id="ID6bb30a8d37ef4fb48c955f4bfdaf081a"><enum>(p)</enum><header>Study To determine
consumer protections and underwriting standards</header><text>The Secretary
shall conduct a study to examine and determine appropriate consumer protections
and underwriting standards to ensure that the purchase of products referred to
in subsection (o) is appropriate for the consumer. In conducting such study,
the Secretary shall consult with consumer advocates (including recognized
experts in consumer protection), industry representatives, representatives of
counseling organizations, and other interested
parties.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H807E8D50A67D4DE3AE8C372B7B3F7630"><enum>(b)</enum><header display-inline="yes-display-inline">Mortgages for Cooperatives</header><text display-inline="yes-display-inline">Subsection (b) of section 255 of the
<act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C.
1715z–20(b)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H6DD469FBA14742C5BC518F19D3B4B711"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (4)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H7EA8E1EC7C71472587CAE0F9A4601333"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>a first or subordinate
mortgage or lien</quote> before <quote>on all stock</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H7EB49BE095474EC29B1700263F781959"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting <quote>unit</quote> after
<quote>dwelling</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBA7F317086BB4B6BB1DBADE9A6472BF"><enum>(C)</enum><text display-inline="yes-display-inline">by inserting <quote>a first mortgage or
first lien</quote> before <quote>on a leasehold</quote>; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC1245008064F4E3BA6EBE3BFA8856B00"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (5), by inserting <quote>a
first or subordinate lien on</quote> before <quote>all stock</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HE190CA3D783F4F7F99297EA71E724B3C"><enum>(c)</enum><header display-inline="yes-display-inline">Limitation on origination
fees</header><text display-inline="yes-display-inline">Section 255 of the
National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-20">12 U.S.C. 1715z–20</external-xref>), as amended by the preceding
provisions of this section, is further amended by adding at the end the
following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H34979EFD7C4941B6BB93247ECE332564" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H561223F74F714AD99492E18536FA15F3"><enum>(r)</enum><header display-inline="yes-display-inline">Limitation on origination
fees</header><text display-inline="yes-display-inline">The Secretary shall
establish limits on the origination fee that may be charged to a mortgagor
under a mortgage insured under this section, which limitations shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H578E01F11C764D178E16D120094F69D7"><enum>(1)</enum><text display-inline="yes-display-inline">equal 1.5 percent of the maximum claim
amount of the mortgage unless adjusted thereafter on the basis of—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idFA04F50D3584496F851C30F1083219D2"><enum>(A)</enum><text display-inline="yes-display-inline">the costs to the mortgagor; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3EA192C9894249A1A4E48A33DA382A72"><enum>(B)</enum><text display-inline="yes-display-inline">the impact of such fees on the reverse
mortgage market;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE204BEE665614F41BDC04EE48900EFFA"><enum>(2)</enum><text display-inline="yes-display-inline">be subject to a minimum allowable
amount;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5F01A217F0704CAE8EF4C77DC5325B59"><enum>(3)</enum><text display-inline="yes-display-inline">provide that the origination fee may be
fully financed with the mortgage;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1F9C1B5376AC4D22B8675D34CB417EC5"><enum>(4)</enum><text display-inline="yes-display-inline">include any fees paid to correspondent
mortgagees approved by the Secretary; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id308844CBB2AF4B94BE2854364878C313"><enum>(5)</enum><text display-inline="yes-display-inline">have the same effective date as subsection
(m)(2) regarding the limitation on principal
obligation.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="IDcbfaf859d0a941cab67231d72211afe4"><enum>(d)</enum><header display-inline="yes-display-inline">Study regarding program costs and credit
availability</header>
<paragraph commented="no" display-inline="no-display-inline" id="idA17A2BA6F2784ECAA47C8E40071D1492"><enum>(1)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">The Comptroller General of the United
States shall conduct a study regarding the costs and availability of credit
under the home equity conversion mortgages for elderly homeowners program under
section 255 of the National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-20">12 U.S.C. 1715z–20</external-xref>) (in this
subsection referred to as the <quote>program</quote>).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE03BF6CD4F9D41E4B8B67A3F03866046"><enum>(2)</enum><header display-inline="yes-display-inline">Purpose</header><text display-inline="yes-display-inline">The purpose of the study required under
paragraph (1) is to help Congress analyze and determine the effects of limiting
the amounts of the costs or fees under the program from the amounts charged
under the program as of the date of the enactment of this title.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE7474EDEC6264C0491E19D4C3E773046"><enum>(3)</enum><header display-inline="yes-display-inline">Content of report</header><text display-inline="yes-display-inline">The study required under paragraph (1)
should focus on—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idE8EB169DB5FE4197A96FA8291155DA6A"><enum>(A)</enum><text display-inline="yes-display-inline">the cost to mortgagors of participating in
the program;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6E4C2EA340754CE9A64B4CC20EC5F3A5"><enum>(B)</enum><text display-inline="yes-display-inline">the financial soundness of the
program;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id444A1BAA5C544EEC9324760AE848C40C"><enum>(C)</enum><text display-inline="yes-display-inline">the availability of credit under the
program; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6361D5A4F48B4DEB93F002822EDC8FD2"><enum>(D)</enum><text display-inline="yes-display-inline">the costs to elderly homeowners
participating in the program, including—</text>
<clause commented="no" display-inline="no-display-inline" id="idD97257AC824F4F9FA63E7E6880B129F5"><enum>(i)</enum><text display-inline="yes-display-inline">mortgage insurance premiums charged under
the program;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id05978426AA09468AA53C8006600A61D4"><enum>(ii)</enum><text display-inline="yes-display-inline">up-front fees charged under the program;
and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idD42A8D2B8ADA4123B0F4E454053FFB5C"><enum>(iii)</enum><text display-inline="yes-display-inline">margin rates charged under the
program.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id60D279F47AEB40BB8094B5F45F1A89F9"><enum>(4)</enum><header display-inline="yes-display-inline">Timing of report</header><text display-inline="yes-display-inline">Not later than 12 months after the date of
the enactment of this title, the Comptroller General shall submit a report to
the Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives setting forth
the results and conclusions of the study required under paragraph (1).</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="idF0A4DB35D6F04D6BAD33EC1F97E0DCC8" section-type="subsequent-section"><enum>123.</enum><header display-inline="yes-display-inline">Energy efficient mortgages
program</header><text display-inline="no-display-inline">Section 106(a)(2) of
the Energy Policy Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/42/12712">42 U.S.C. 12712</external-xref> note) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id68BC7E29FEED4DD9AD147F63798D8B1A"><enum>(1)</enum><text display-inline="yes-display-inline">by amending subparagraph (C) to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id801772EA029B4A359C1509144D9E7EBA" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="IDbcd5ba65168240b9835bf1a9467874be"><enum>(C)</enum><header display-inline="yes-display-inline">Costs of improvements</header><text display-inline="yes-display-inline">The cost of cost-effective energy
efficiency improvements shall not exceed the greater of—</text>
<clause commented="no" display-inline="no-display-inline" id="ID78671701a0ff4f29b9315df3bbb86ac6"><enum>(i)</enum><text display-inline="yes-display-inline">5 percent of the property value (not to
exceed 5 percent of the limit established under section 203(b)(2)(A)) of the
National Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1709">12 U.S.C. 1709(b)(2)(A)</external-xref>; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDeaa72e83718743109e8c2a126942d5fc"><enum>(ii)</enum><text display-inline="yes-display-inline">2 percent of the limit established under
section 203(b)(2)(B) of such Act.</text>
</clause></subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id250543E2FD604BB98929D603D9CE185C"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idDF7023F7F1904776A62BE4C8912E55C4" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="id1CFCD4B31A134CE4A1CB97051D1DC83C"><enum>(D)</enum><header display-inline="yes-display-inline">Limitation</header><text display-inline="yes-display-inline">In any fiscal year, the aggregate number of
mortgages insured pursuant to this section may not exceed 5 percent of the
aggregate number of mortgages for 1- to 4-family residences insured by the
Secretary of Housing and Urban Development under title II of the National
Housing Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1707">12 U.S.C. 1707 et seq.</external-xref>) during the preceding fiscal
year.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HA5CA043CB86B4B1CAF6F31AD6B18B9AD" section-type="subsequent-section"><enum>124.</enum><header display-inline="yes-display-inline">Pilot program for automated process for
borrowers without sufficient credit history</header>
<subsection commented="no" display-inline="no-display-inline" id="H942CE104BA4A46AD9C5EC75D123FEA3F"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment</header><text display-inline="yes-display-inline">Title II of the National Housing Act (12
U.S.C. 1707 et seq.) is amended by adding at the end the following new
section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H407DB48CB2C74F75BFCC6FAB4FCA21CE" reported-display-style="italic" style="OLC">
<section commented="no" display-inline="no-display-inline" id="HDD9A561C643E481991563889A52712D3" section-type="subsequent-section"><enum>257.</enum><header display-inline="yes-display-inline">Pilot program for automated process for
borrowers without sufficient credit history</header>
<subsection commented="no" display-inline="no-display-inline" id="H545EFEB2DFD14890A920D894BDD25C25"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment</header><text display-inline="yes-display-inline">The Secretary shall carry out a pilot
program to establish, and make available to mortgagees, an automated process
for providing alternative credit rating information for mortgagors and
prospective mortgagors under mortgages on 1- to 4-family residences to be
insured under this title who have insufficient credit histories for determining
their creditworthiness. Such alternative credit rating information may include
rent, utilities, and insurance payment histories, and such other information as
the Secretary considers appropriate.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H2B60EA5248CE4A9B00245BBF33EC76E"><enum>(b)</enum><header display-inline="yes-display-inline">Scope</header><text display-inline="yes-display-inline">The Secretary may carry out the pilot
program under this section on a limited basis or scope, and may consider
limiting the program to first-time homebuyers.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H73B6EDCD71D64E4691B4408C64BEA809"><enum>(c)</enum><header display-inline="yes-display-inline">Limitation</header><text display-inline="yes-display-inline">In any fiscal year, the aggregate number of
mortgages insured pursuant to the automated process established under this
section may not exceed 5 percent of the aggregate number of mortgages for 1- to
4-family residences insured by the Secretary under this title during the
preceding fiscal year.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H5A77FBB7E73F402DA69DBB0000E682D0"><enum>(d)</enum><header display-inline="yes-display-inline">Sunset</header><text display-inline="yes-display-inline">After the expiration of the 5-year period
beginning on the date of the enactment of the Building American Homeownership
Act of 2008, the Secretary may not enter into any new commitment to insure any
mortgage, or newly insure any mortgage, pursuant to the automated process
established under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H4A8248E396CB4E619C7B31DB00907D69"><enum>(b)</enum><header display-inline="yes-display-inline">GAO report</header><text display-inline="yes-display-inline">Not later than the expiration of the
two-year period beginning on the date of the enactment of this subtitle, the
Comptroller General of the United States shall submit to the Congress a report
identifying the number of additional mortgagors served using the automated
process established pursuant to section 257 of the National Housing Act (as
added by the amendment made by subsection (a) of this section) and the impact
of such process and the insurance of mortgages pursuant to such process on the
safety and soundness of the insurance funds under the National Housing Act of
which such mortgages are obligations.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id045EF686324C495C91E8AD594AA75A05" section-type="subsequent-section"><enum>125.</enum><header display-inline="yes-display-inline">Homeownership preservation</header><text display-inline="no-display-inline">The Secretary of Housing and Urban
Development and the Commissioner of the Federal Housing Administration, in
consultation with industry, the Neighborhood Reinvestment Corporation, and
other entities involved in foreclosure prevention activities, shall—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idA5B782A426134679A5240F546A16A3BB"><enum>(1)</enum><text display-inline="yes-display-inline">develop and implement a plan to improve the
Federal Housing Administration's loss mitigation process; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id73B80DEFF5664252A5E640EB76043D10"><enum>(2)</enum><text display-inline="yes-display-inline">report such plan to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="id90A90C1CDBB8496ABAF2FE45CC98C975" section-type="subsequent-section"><enum>126.</enum><header display-inline="yes-display-inline">Use of FHA savings for improvements in FHA
technologies, procedures, processes, program performance, staffing, and
salaries</header>
<subsection commented="no" display-inline="no-display-inline" id="id66B0C6DE2D74478F868AB8A5F39BBFA3"><enum>(a)</enum><header display-inline="yes-display-inline">Authorization of
appropriations</header><text display-inline="yes-display-inline">There is
authorized to be appropriated for each of fiscal years 2009 through 2013,
$25,000,000, from negative credit subsidy for the mortgage insurance programs
under title II of the National Housing Act, to the Secretary of Housing and
Urban Development for increasing funding for the purpose of improving
technology, processes, program performance, eliminating fraud, and for
providing appropriate staffing in connection with the mortgage insurance
programs under title II of the National Housing Act.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id5C1C4F1F39374D08AE0248EC014232F5"><enum>(b)</enum><header display-inline="yes-display-inline">Certification</header><text display-inline="yes-display-inline">The authorization under subsection (a)
shall not be effective for a fiscal year unless the Secretary of Housing and
Urban Development has, by rulemaking in accordance with <external-xref legal-doc="usc" parsable-cite="usc/5/553">section 553</external-xref> of title 5,
United States Code (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of
such section), made a determination that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idE7F056536C894A3DBF1443FD8E8ED860"><enum>(1)</enum><text display-inline="yes-display-inline">premiums being, or to be, charged during
such fiscal year for mortgage insurance under title II of the National Housing
Act are established at the minimum amount sufficient to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idD86F6E5C7CB747FD815F700BB7A85184"><enum>(A)</enum><text display-inline="yes-display-inline">comply with the requirements of section
205(f) of such Act (relating to required capital ratio for the Mutual Mortgage
Insurance Fund); and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idDA9E566E1B164C9A98E22834F1D70355"><enum>(B)</enum><text display-inline="yes-display-inline">ensure the safety and soundness of the
other mortgage insurance funds under such Act; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id15BB3DAC09964FACA037161C19DEA998"><enum>(2)</enum><text display-inline="yes-display-inline">any negative credit subsidy for such fiscal
year resulting from such mortgage insurance programs adequately ensures the
efficient delivery and availability of such programs.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id4559367C900946FABE89F3A814A4156A"><enum>(c)</enum><header display-inline="yes-display-inline">Study and report</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development shall conduct a study to obtain recommendations from participants
in the private residential (both single family and multifamily) mortgage
lending business and the secondary market for such mortgages on how best to
update and upgrade processes and technologies for the mortgage insurance
programs under title II of the National Housing Act so that the procedures for
originating, insuring, and servicing of such mortgages conform with those
customarily used by secondary market purchasers of residential mortgage loans.
Not later than the expiration of the 12-month period beginning on the date of
the enactment of this title, the Secretary shall submit a report to the
Congress describing the progress made and to be made toward updating and
upgrading such processes and technology, and providing appropriate staffing for
such mortgage insurance programs.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idF4E8CDEA493C4616A286749C1CF4A683" section-type="subsequent-section"><enum>127.</enum><header display-inline="yes-display-inline">Post-purchase housing counseling
eligibility improvements</header><text display-inline="no-display-inline">Section 106(c)(4) of the Housing and Urban
Development Act of 1968 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701x">12 U.S.C. 1701x(c)(4)</external-xref>) is amended:</text>
<paragraph commented="no" display-inline="no-display-inline" id="idEDC98EE8BE1D4246877243F565D54890"><enum>(1)</enum><text display-inline="yes-display-inline">in subparagraph (C)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id9D040020D0A5454C81B1D6719B7AC4A9"><enum>(A)</enum><text display-inline="yes-display-inline">in clause (i), by striking <quote>;
or</quote> and inserting a semicolon;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF910678CE9E044768A208B35D1E13CA7"><enum>(B)</enum><text display-inline="yes-display-inline">in clause (ii), by striking the period at
the end and inserting a semicolon; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB1BD2CE4CB374C3DAF16B9B9D27F1860"><enum>(C)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idE3E4C5885A004B71B6D899CB315666E6" reported-display-style="italic" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="ID2e5ed2fe14cc44b09ea76f840aab53c0"><enum>(iii)</enum><text display-inline="yes-display-inline">a significant reduction in the income of
the household due to divorce or death; or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id5A521E0C5820474FA4939B0B1E7C3049"><enum>(iv)</enum><text display-inline="yes-display-inline">a significant increase in basic expenses of
the homeowner or an immediate family member of the homeowner (including the
spouse, child, or parent for whom the homeowner provides substantial care or
financial assistance) due to—</text>
<subclause commented="no" display-inline="no-display-inline" id="idA117DDCDD1674856BACD8DEF3AC8D674"><enum>(I)</enum><text display-inline="yes-display-inline">an unexpected or significant increase in
medical expenses;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id0E3A8A6651144024991E8D8DE928D8CC"><enum>(II)</enum><text display-inline="yes-display-inline">a divorce;</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idE0AC431838424EFC8C43D28BBDEED0AD"><enum>(III)</enum><text display-inline="yes-display-inline">unexpected and significant damage to the
property, the repair of which will not be covered by private or public
insurance; or</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idFD6AB957034B493EB24E6EBBA108966B"><enum>(IV)</enum><text display-inline="yes-display-inline">a large property-tax increase;
or</text>
</subclause></clause><after-quoted-block>; </after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id135E0A3762F74B27BE06EDF1DE1DAF6D"><enum>(2)</enum><text display-inline="yes-display-inline">by striking the matter that follows
subparagraph (C); and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id672BCE4D990B4C9A81588BECC54C2EFA"><enum>(3)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id25DC734DC74241ACAC1D5B98D9E3ACD3" reported-display-style="italic" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="idC4D727B68EC5493BAFCAD467B401FB66"><enum>(D)</enum><text display-inline="yes-display-inline">the Secretary of Housing and Urban
Development determines that the annual income of the homeowner is no greater
than the annual income established by the Secretary as being of low- or
moderate-income.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="idC1E74EC3BBE7469AB2018303BDAC4147" section-type="subsequent-section"><enum>128.</enum><header display-inline="yes-display-inline">Pre-purchase homeownership counseling
demonstration</header>
<subsection commented="no" display-inline="no-display-inline" id="idB153E2B3A55D44D698EA27DD096B4328"><enum>(a)</enum><header display-inline="yes-display-inline">Establishment of program</header><text display-inline="yes-display-inline">For the period beginning on the date of
enactment of this title and ending on the date that is 3 years after such date
of enactment, the Secretary of Housing and Urban Development shall establish
and conduct a demonstration program to test the effectiveness of alternative
forms of pre-purchase homeownership counseling for eligible homebuyers.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id36274824B18148729CFF3637E093DA5F"><enum>(b)</enum><header display-inline="yes-display-inline">Forms of counseling</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development shall provide to eligible homebuyers pre-purchase homeownership
counseling under this section in the form of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id479DD10795C2447880B54F37833FD612"><enum>(1)</enum><text display-inline="yes-display-inline">telephone counseling;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCD26994175004E01B0A72A2D2A3CC9BD"><enum>(2)</enum><text display-inline="yes-display-inline">individualized in-person counseling;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF18E46C8C4CF41ADB94A4EB43E5F24B2"><enum>(3)</enum><text display-inline="yes-display-inline">web-based counseling;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idED33E9F41E76485D87CF189A176AECEB"><enum>(4)</enum><text display-inline="yes-display-inline">counseling classes; or</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA2AF67D3C8274BCDADF9BEFADEF91F40"><enum>(5)</enum><text display-inline="yes-display-inline">any other form or type of counseling that
the Secretary may, in his discretion, determine appropriate.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id02632B808FDB4A8081285548E4257823"><enum>(c)</enum><header display-inline="yes-display-inline">Size of program</header><text display-inline="yes-display-inline">The Secretary shall make available the
pre-purchase homeownership counseling described in subsection (b) to not more
than 3,000 eligible homebuyers in any given year.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id89F45ED5EA22477BA58606BC25FCEAE4"><enum>(d)</enum><header display-inline="yes-display-inline">Incentive to participate</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development may provide incentives to eligible homebuyers to participate in the
demonstration program established under subsection (a). Such incentives may
include the reduction of any insurance premium charges owed by the eligible
homebuyer to the Secretary.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id7A8B45033755447983840D054F39C8F5"><enum>(e)</enum><header display-inline="yes-display-inline">Eligible homebuyer defined</header><text display-inline="yes-display-inline">For purposes of this section an
<term>eligible homebuyer</term> means a first-time homebuyer who has been
approved for a home loan with a loan-to-value ratio between 97 percent and 98.5
percent.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id8338E178AD6D4152B436735AB0460848"><enum>(f)</enum><header display-inline="yes-display-inline">Report to Congress</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development shall report to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the House of
Representative—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id8DC1D4A74AEC4176A332702DEC54B2BC"><enum>(1)</enum><text display-inline="yes-display-inline">on an annual basis, on the progress and
results of the demonstration program established under subsection (a);
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idFC2DF268D29A454E9F3064CD19C41D3A"><enum>(2)</enum><text display-inline="yes-display-inline">for the period beginning on the date of
enactment of this title and ending on the date that is 5 years after such date
of enactment, on the payment history and delinquency rates of eligible
homebuyers who participated in the demonstration program.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id138741B6E1B248929186A4E213699621" section-type="subsequent-section"><enum>129.</enum><header display-inline="yes-display-inline">Fraud prevention</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/18/1014">Section 1014</external-xref> of title 18, United States
Code, is amended in the first sentence—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id059F78951B0A4D6A8F043FAB64203DCA"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>the Federal Housing
Administration</quote> before <quote>the Farm Credit Administration</quote>;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7C4DA36B1CB247CAB8A8C7EF6B9F5993"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>commitment, or
loan</quote> and inserting <quote>commitment, loan, or insurance agreement or
application for insurance or a guarantee</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="HBD60339D0A0240D38300B3122F42B213" section-type="subsequent-section"><enum>130.</enum><header display-inline="yes-display-inline">Limitation on mortgage insurance premium
increases</header>
<subsection commented="no" display-inline="no-display-inline" id="id104DE5532A584E5DA6EDD29DAF3FE6A5"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law,
including any provision of this title and any amendment made by this
title—</text>
<paragraph commented="no" display-inline="no-display-inline" id="idC4CE7BB28A1D4E418F673C9C40D97081"><enum>(1)</enum><text display-inline="yes-display-inline">for the period beginning on the date of the
enactment of this title and ending on October 1, 2009, the premiums charged for
mortgage insurance under multifamily housing programs under the National
Housing Act may not be increased above the premium amounts in effect under such
program on October 1, 2006, unless the Secretary of Housing and Urban
Development determines that, absent such increase, insurance of additional
mortgages under such program would, under the Federal Credit Reform Act of
1990, require the appropriation of new budget authority to cover the costs (as
such term is defined in section 502 of the Federal Credit Reform Act of 1990
(2 U.S.C.
661a) of such insurance; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAB605C019202426B8B76AA00D6BB94DD"><enum>(2)</enum><text display-inline="yes-display-inline">a premium increase pursuant to paragraph
(1) may be made only if not less than 30 days prior to such increase taking
effect, the Secretary of Housing and Urban Development—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id145417FA707C4137B44C1EFF634C54B1"><enum>(A)</enum><text display-inline="yes-display-inline">notifies the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee on Financial Services of the
House of Representatives of such increase; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idEF9AFD6AFB104BFF9BA45EAEF405667B"><enum>(B)</enum><text display-inline="yes-display-inline">publishes notice of such increase in the
Federal Register.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id3FAE0EDF136E462DB74EC78FF0C32E47"><enum>(b)</enum><header display-inline="yes-display-inline">Waiver</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development may waive the 30-day notice requirement under subsection (a)(2), if
the Secretary determines that waiting 30-days before increasing premiums would
cause substantial damage to the solvency of multifamily housing programs under
the National Housing Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HF6C14D7C928A44D193E5D5CEED39EB7" section-type="subsequent-section"><enum>131.</enum><header display-inline="yes-display-inline">Savings provision</header><text display-inline="no-display-inline">Any mortgage insured under title II of the
National Housing Act before the date of enactment of this subtitle shall
continue to be governed by the laws, regulations, orders, and terms and
conditions to which it was subject on the day before the date of the enactment
of this subtitle.</text>
</section><section commented="no" display-inline="no-display-inline" id="H1EB203B5CDF54E26AD1B25F463E90237" section-type="subsequent-section"><enum>132.</enum><header display-inline="yes-display-inline">Implementation</header><text display-inline="no-display-inline">The Secretary of Housing and Urban
Development shall by notice establish any additional requirements that may be
necessary to immediately carry out the provisions of this subtitle. The notice
shall take effect upon issuance.</text>
</section><section id="idB281CB5CAC09455C9C2E26C0D1502969"><enum>133.</enum><header>Moratorium on
implementation of risk-based premiums</header><text display-inline="no-display-inline">For the 12-month period beginning on the
date of enactment of this title, the Secretary of Housing and Urban Development
shall not enact, execute, or take any action to make effective the planned
implementation of risk-based premiums, which are designed for mortgage lenders
to offer borrowers an FHA-insured product that provides a range of mortgage
insurance premium pricing, based on the risk the insurance contract represents,
as such planned implementation was set forth in the Notice published in the
Federal Register on September 20, 2007 (Vol. 72, No. 182, Page 53872).</text>
</section></subtitle><subtitle commented="no" id="id2D0AFDA7D3BA4F148CF25235E857BFC4" level-type="subsequent"><enum>B</enum><header display-inline="yes-display-inline">Manufactured Housing Loan
Modernization</header>
<section commented="no" display-inline="no-display-inline" id="idEB11C33638A147DCA410D07D2F712D94" section-type="subsequent-section"><enum>141.</enum><header display-inline="yes-display-inline">Short title</header><text display-inline="no-display-inline">This subtitle may be cited as the
<quote><short-title>FHA Manufactured Housing Loan
Modernization Act of 2008</short-title></quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="H2E9BA3AF138040B58CF20749B842131E" section-type="subsequent-section"><enum>142.</enum><header display-inline="yes-display-inline">Purposes</header><text display-inline="no-display-inline">The purposes of this subtitle are—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HA0E867A939514CBC89E9F5FB99BAA457"><enum>(1)</enum><text display-inline="yes-display-inline">to provide adequate funding for FHA-insured
manufactured housing loans for low- and moderate-income homebuyers during all
economic cycles in the manufactured housing industry;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H0F7ED3CB00484C02B597CA70258E2D3D"><enum>(2)</enum><text display-inline="yes-display-inline">to modernize the FHA title I insurance
program for manufactured housing loans to enhance participation by Ginnie Mae
and the private lending markets; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H23BC04C7421A477AA3A82C61227F2694"><enum>(3)</enum><text display-inline="yes-display-inline">to adjust the low loan limits for title I
manufactured home loan insurance to reflect the increase in costs since such
limits were last increased in 1992 and to index the limits to inflation.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H620282B4E4A04B2A9CDA415095AEC2EB" section-type="subsequent-section"><enum>143.</enum><header display-inline="yes-display-inline">Exception to limitation on financial
institution portfolio</header><text display-inline="no-display-inline">The
second sentence of section 2(a) of the <act-name parsable-cite="NHA">National
Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1703">12 U.S.C. 1703(a)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H3036811AF97C4963A2A0D19BCFC2F959"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>In no case</quote> and
inserting <quote>Other than in connection with a manufactured home or a lot on
which to place such a home (or both), in no case</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HCA14D97FC7B24B0BBCAC5722852E4657"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>:
<italic>Provided</italic>, That with</quote> and inserting <quote>.
With</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H6ECC571793F34B4EA014BA3D00990057" section-type="subsequent-section"><enum>144.</enum><header display-inline="yes-display-inline">Insurance benefits</header>
<subsection commented="no" display-inline="no-display-inline" id="H98D6B735E01644E8B17EDA6DA442E336"><enum>(a)</enum><header display-inline="yes-display-inline">In General</header><text display-inline="yes-display-inline">Subsection (b) of section 2 of the
<act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C.
1703(b)), is amended by adding at the end the following new paragraph:</text>
<quoted-block act-name="National Housing Act" changed="added" display-inline="no-display-inline" id="H58C079D5725949C9B03E2206D38D0067" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H4516533010F94499947E44007E98C06D"><enum>(8)</enum><header display-inline="yes-display-inline">Insurance benefits for manufactured housing
loans</header><text display-inline="yes-display-inline">Any contract of
insurance with respect to loans, advances of credit, or purchases in connection
with a manufactured home or a lot on which to place a manufactured home (or
both) for a financial institution that is executed under this title after the
date of the enactment of the <short-title>FHA Manufactured
Housing Loan Modernization Act of 2008</short-title> by the Secretary shall be
conclusive evidence of the eligibility of such financial institution for
insurance, and the validity of any contract of insurance so executed shall be
incontestable in the hands of the bearer from the date of the execution of such
contract, except for fraud or misrepresentation on the part of such
institution.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H23A241D5A6C748D181429E4491407C3F"><enum>(b)</enum><header display-inline="yes-display-inline">Applicability</header><text display-inline="yes-display-inline">The amendment made by subsection (a) shall
only apply to loans that are registered or endorsed for insurance after the
date of the enactment of this title.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="H1E2A97751EB644B9AA25EB9B80D8C194" section-type="subsequent-section"><enum>145.</enum><header display-inline="yes-display-inline">Maximum loan limits</header>
<subsection commented="no" display-inline="no-display-inline" id="H591C4AA2105E40F8ACAC3A56DDE86FA"><enum>(a)</enum><header display-inline="yes-display-inline">Dollar
Amounts</header><text display-inline="yes-display-inline">Paragraph (1) of
section 2(b) of the <act-name parsable-cite="NHA">National Housing
Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1703">12 U.S.C. 1703(b)(1)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF8F1B0D909EE42319255957BD615176E"><enum>(1)</enum><text display-inline="yes-display-inline">in clause (ii) of subparagraph (A), by
striking <quote>$17,500</quote> and inserting <quote>$25,090</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H1B8C05DF0BAA4F3E8E96001E7492ED8"><enum>(2)</enum><text display-inline="yes-display-inline">in subparagraph (C) by striking
<quote>$48,600</quote> and inserting <quote>$69,678</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H8F41805B89CB4C59B416126E084EC4C4"><enum>(3)</enum><text display-inline="yes-display-inline">in subparagraph (D) by striking
<quote>$64,800</quote> and inserting <quote>$92,904</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HE68A196C90CB44329C3BA2F76DBB7900"><enum>(4)</enum><text display-inline="yes-display-inline">in subparagraph (E) by striking
<quote>$16,200</quote> and inserting <quote>$23,226</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA5C96E6614754D41814F2D568CD98C78"><enum>(5)</enum><text display-inline="yes-display-inline">by realigning subparagraphs (C), (D), and
(E) 2 ems to the left so that the left margins of such subparagraphs are
aligned with the margins of subparagraphs (A) and (B).</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H87373C87695145F99873683807BFC831"><enum>(b)</enum><header display-inline="yes-display-inline">Annual Indexing</header><text display-inline="yes-display-inline">Subsection (b) of section 2 of the
<act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C.
1703(b)), as amended by the preceding provisions of this title, is further
amended by adding at the end the following new paragraph:</text>
<quoted-block act-name="National Housing Act" changed="added" display-inline="no-display-inline" id="HF9E3DA394D174EDB904D1032F9F01F76" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H5B2E4682441B462288BCB006B679D1E8"><enum>(9)</enum><header display-inline="yes-display-inline">Annual indexing of manufactured housing
loans</header><text display-inline="yes-display-inline">The Secretary shall
develop a method of indexing in order to annually adjust the loan limits
established in subparagraphs (A)(ii), (C), (D), and (E) of this subsection.
Such index shall be based on the manufactured housing price data collected by
the United States Census Bureau. The Secretary shall establish such index no
later than 1 year after the date of the enactment of the
<short-title>FHA Manufactured Housing Loan Modernization
Act of 2008</short-title>.</text>
</paragraph><after-quoted-block></after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H206A1390F1224D70848CF3A1168B75E0"><enum>(c)</enum><header display-inline="yes-display-inline">Technical and Conforming
Changes</header><text display-inline="yes-display-inline">Paragraph (1) of
section 2(b) of the <act-name parsable-cite="NHA">National Housing
Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1703">12 U.S.C. 1703(b)(1)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="HF0728BFB08A74152A5A3F5E2F573CB2"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>No</quote> and inserting
<quote>Except as provided in the last sentence of this paragraph, no</quote>;
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H5EDB681AE891462A91F2BA57F42B509B"><enum>(2)</enum><text display-inline="yes-display-inline">by adding after and below subparagraph (G)
the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HA8DC550670A84C9A8785FFAA3CCEB8AF" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="H935B5893A8204D6BBAB7C44F08D1639F"><enum></enum><text display-inline="yes-display-inline">The
Secretary shall, by regulation, annually increase the dollar amount limitations
in subparagraphs (A)(ii), (C), (D), and (E) (as such limitations may have been
previously adjusted under this sentence) in accordance with the index
established pursuant to paragraph
(9).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="HE7081DB81E62448589E1B605F1AAFEDE" section-type="subsequent-section"><enum>146.</enum><header display-inline="yes-display-inline">Insurance premiums</header><text display-inline="no-display-inline">Subsection (f) of section 2 of the
<act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1703">12 U.S.C. 1703(f)</external-xref>)
is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H52DC4EA0D0F443FD8476820063B8661F"><enum>(1)</enum><text display-inline="yes-display-inline">by inserting <quote>(1)
<header-in-text level="paragraph" style="OLC">Premium
Charges</header-in-text>.—</quote> after <quote>(f)</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HB788FB0CE2344E5BBD865D7DAA8475A"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following new
paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H454CFD08AB464BC1B08B939208B6C46" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="H25A530F841F6417F96CECBDA3715C669" indent="up1"><enum>(2)</enum><header display-inline="yes-display-inline">Manufactured Home Loans</header><text display-inline="yes-display-inline">Notwithstanding paragraph (1), in the case
of a loan, advance of credit, or purchase in connection with a manufactured
home or a lot on which to place such a home (or both), the premium charge for
the insurance granted under this section shall be paid by the borrower under
the loan or advance of credit, as follows:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H70124C851C234DED8D7CCE468C86F262"><enum>(A)</enum><text display-inline="yes-display-inline">At the time of the making of the loan,
advance of credit, or purchase, a single premium payment in an amount not to
exceed 2.25 percent of the amount of the original insured principal
obligation.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H1D1FBE8E9B37495FACC52789DEB35269"><enum>(B)</enum><text display-inline="yes-display-inline">In addition to the premium under
subparagraph (A), annual premium payments during the term of the loan, advance,
or obligation purchased in an amount not exceeding 1.0 percent of the remaining
insured principal balance (excluding the portion of the remaining balance
attributable to the premium collected under subparagraph (A) and without taking
into account delinquent payments or prepayments).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9E5F50D8F50E4F18BB10386938C9BCB0"><enum>(C)</enum><text display-inline="yes-display-inline">Premium charges under this paragraph shall
be established in amounts that are sufficient, but do not exceed the minimum
amounts necessary, to maintain a negative credit subsidy for the program under
this section for insurance of loans, advances of credit, or purchases in
connection with a manufactured home or a lot on which to place such a home (or
both), as determined based upon risk to the Federal Government under existing
underwriting requirements.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H51E8A0D806B04FF2BE3B206E1CC2B0DC"><enum>(D)</enum><text display-inline="yes-display-inline">The Secretary may increase the limitations
on premium payments to percentages above those set forth in subparagraphs (A)
and (B), but only if necessary, and not in excess of the minimum increase
necessary, to maintain a negative credit subsidy as described in subparagraph
(C).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="H9766DD206C254EC686F1A22BDBF635FA" section-type="subsequent-section"><enum>147.</enum><header display-inline="yes-display-inline">Technical corrections</header>
<subsection commented="no" display-inline="no-display-inline" id="H653C572BF31847A6AD8B46B4587B600"><enum>(a)</enum><header display-inline="yes-display-inline">Dates</header><text display-inline="yes-display-inline">Subsection (a) of section 2 of the
<act-name parsable-cite="NHA">National Housing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/12/1703">12 U.S.C. 1703(a)</external-xref>)
is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="H423095EAB911463C814BFDB235695963"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>on and after July 1,
1939,</quote> each place such term appears; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA33AFBB4BBEE4BBA8537BCB7A2C056D9"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>made after the effective
date of the Housing Act of 1954</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H8771691ADA5345C8B676EB08B8B5D649"><enum>(b)</enum><header display-inline="yes-display-inline">Authority of Secretary</header><text display-inline="yes-display-inline">Subsection (c) of section 2 of the
<act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C.
1703(c)) is amended to read as follows:</text>
<quoted-block act-name="National Housing Act" changed="added" display-inline="no-display-inline" id="HF11DA993C6084C5CB8D34C02C2D68B60" reported-display-style="italic" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="HC771DF715C364D14BA6343C878247561"><enum>(c)</enum><header display-inline="yes-display-inline">Handling and Disposal of Property</header>
<paragraph commented="no" display-inline="no-display-inline" id="HBB725E65A38549D2A71722C2A7EFD75D"><enum>(1)</enum><header display-inline="yes-display-inline">Authority of secretary</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law,
the Secretary may—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="H144F3350ED1F4CCDBF2176B34330CBCD"><enum>(A)</enum><text display-inline="yes-display-inline">deal with, complete, rent, renovate,
modernize, insure, or assign or sell at public or private sale, or otherwise
dispose of, for cash or credit in the Secretary’s discretion, and upon such
terms and conditions and for such consideration as the Secretary shall
determine to be reasonable, any real or personal property conveyed to or
otherwise acquired by the Secretary, in connection with the payment of
insurance heretofore or hereafter granted under this title, including any
evidence of debt, contract, claim, personal property, or security assigned to
or held by him in connection with the payment of insurance heretofore or
hereafter granted under this section; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H21D0B98B4E354DD48632918B2C4ED8BA"><enum>(B)</enum><text display-inline="yes-display-inline">pursue to final collection, by way of
compromise or otherwise, all claims assigned to or held by the Secretary and
all legal or equitable rights accruing to the Secretary in connection with the
payment of such insurance, including unpaid insurance premiums owed in
connection with insurance made available by this title.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HD8A3F5B6115D4883BA6286F8E7553BDE"><enum>(2)</enum><header display-inline="yes-display-inline">Advertisements for proposals</header><text display-inline="yes-display-inline">Section 3709 of the Revised Statutes shall
not be construed to apply to any contract of hazard insurance or to any
purchase or contract for services or supplies on account of such property if
the amount thereof does not exceed $25,000.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC8EB8FA101BA404487B28DCA91858F"><enum>(3)</enum><header display-inline="yes-display-inline">Delegation of authority</header><text display-inline="yes-display-inline">The power to convey and to execute in the
name of the Secretary, deeds of conveyance, deeds of release, assignments and
satisfactions of mortgages, and any other written instrument relating to real
or personal property or any interest therein heretofore or hereafter acquired
by the Secretary pursuant to the provisions of this title may be exercised by
an officer appointed by the Secretary without the execution of any express
delegation of power or power of attorney. Nothing in this subsection shall be
construed to prevent the Secretary from delegating such power by order or by
power of attorney, in the Secretary’s discretion, to any officer or agent the
Secretary may
appoint.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="HE56A0E45D5384E3EBE2943FF29985BFA" section-type="subsequent-section"><enum>148.</enum><header display-inline="yes-display-inline">Revision of underwriting criteria</header>
<subsection commented="no" display-inline="no-display-inline" id="H1AD198BF4B854A66897C96C4EA974E2B"><enum>(a)</enum><header display-inline="yes-display-inline">In General</header><text display-inline="yes-display-inline">Subsection (b) of section 2 of the
<act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C.
1703(b)), as amended by the preceding provisions of this title, is further
amended by adding at the end the following new paragraph:</text>
<quoted-block act-name="National Housing Act" changed="added" display-inline="no-display-inline" id="HAF670A72BC6C4E4688345281A36593A9" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="HE77E325CC1DD4DFBAFA9FAB05DEADCC7"><enum>(10)</enum><header display-inline="yes-display-inline">Financial soundness of manufactured housing
program</header><text display-inline="yes-display-inline">The Secretary shall
establish such underwriting criteria for loans and advances of credit in
connection with a manufactured home or a lot on which to place a manufactured
home (or both), including such loans and advances represented by obligations
purchased by financial institutions, as may be necessary to ensure that the
program under this title for insurance for financial institutions against
losses from such loans, advances of credit, and purchases is financially
sound.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H29A7FB9CF9574029BA47D8F28DD3491"><enum>(b)</enum><header display-inline="yes-display-inline">Timing</header><text display-inline="yes-display-inline">Not later than the expiration of the
6-month period beginning on the date of the enactment of this title, the
Secretary of Housing and Urban Development shall revise the existing
underwriting criteria for the program referred to in paragraph (10) of section
2(b) of the <act-name parsable-cite="NHA">National Housing Act</act-name> (as
added by subsection (a) of this section) in accordance with the requirements of
such paragraph.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idA4592781955E4BEABECED2F2EF0FB277" section-type="subsequent-section"><enum>149.</enum><header display-inline="yes-display-inline">Prohibition against kickbacks and unearned
fees</header><text display-inline="no-display-inline">Title I of the National
Housing Act is amended by adding at the end of section 9 the following new
section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id0F64577C58D24B049013A05D69E68828" reported-display-style="italic" style="OLC">
<section commented="no" display-inline="no-display-inline" id="id571E6E0960D341F99FE51877363E4FE3" section-type="subsequent-section"><enum>10.</enum><header display-inline="yes-display-inline">Prohibition against kickbacks and unearned
fees</header>
<subsection commented="no" display-inline="no-display-inline" id="id43D8DF72B0E24D9BA67CBB20531F68C8"><enum>(a)</enum><header display-inline="yes-display-inline">In general</header><text display-inline="yes-display-inline">Except as provided in subsection (b), the
provisions of sections 3, 8, 16, 17, 18, and 19 of the Real Estate Settlement
Procedures Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/12/2601">12 U.S.C. 2601 et seq.</external-xref>) shall apply to each sale of a
manufactured home financed with an FHA-insured loan or extension of credit, as
well as to services rendered in connection with such transactions.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id8A9B0E88BCA44D42B519739BC8FD9C94"><enum>(b)</enum><header display-inline="yes-display-inline">Authority of the Secretary</header><text display-inline="yes-display-inline">The Secretary is authorized to determine
the manner and extent to which the provisions of sections 3, 8, 16, 17, 18, and
19 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601 et
seq.) may reasonably be applied to the transactions described in subsection
(a), and to grant such exemptions as may be necessary to achieve the purposes
of this section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idD409FBA238BB48618C72F7BEE86C0581"><enum>(c)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID57354a5daff3480e9644406318aa5bec"><enum>(1)</enum><text display-inline="yes-display-inline">the term <quote>federally related mortgage
loan</quote> as used in sections 3, 8, 16, 17, 18, and 19 of the Real Estate
Settlement Procedures Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/12/2601">12 U.S.C. 2601 et seq.</external-xref>) shall include an
FHA-insured loan or extension of credit made to a borrower for the purpose of
purchasing a manufactured home that the borrower intends to occupy as a
personal residence; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID63db11b171e14071ac01095a03d3ace1"><enum>(2)</enum><text display-inline="yes-display-inline">the term <quote>real estate settlement
service</quote> as used in sections 3, 8, 16, 17, 18, and 19 of the Real Estate
Settlement Procedures Act of 1974 (<external-xref legal-doc="usc" parsable-cite="usc/12/2601">12 U.S.C. 2601 et seq.</external-xref>) shall include any
service rendered in connection with a loan or extension of credit insured by
the Federal Housing Administration for the purchase of a manufactured
home.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idA9AABC59AAE742189C6C68F496196B5C"><enum>(d)</enum><header display-inline="yes-display-inline">Unfair and deceptive
practices</header><text display-inline="yes-display-inline">In connection with
the purchase of a manufactured home financed with a loan or extension of credit
insured by the Federal Housing Administration under this title, the Secretary
shall prohibit acts or practices in connection with loans or extensions of
credit that the Secretary finds to be unfair, deceptive, or otherwise not in
the interests of the
borrower.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="id95BF78252C644AD6A80D522FA964816C" section-type="subsequent-section"><enum>150.</enum><header display-inline="yes-display-inline">Leasehold requirements</header><text display-inline="no-display-inline">Subsection (b) of section 2 of the
<act-name parsable-cite="NHA">National Housing Act</act-name> (12 U.S.C.
1703(b)), as amended by the preceding provisions of this title, is further
amended by adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id6691A0E60DF04D9EB8F1D394A1174A8B" reported-display-style="italic" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id429A5368ED2241719B066D3F37FABBE4"><enum>(11)</enum><header display-inline="yes-display-inline">Leasehold requirements</header><text display-inline="yes-display-inline">No insurance shall be granted under this
section to any such financial institution with respect to any obligation
representing any such loan, advance of credit, or purchase by it, made for the
purposes of financing a manufactured home which is intended to be situated in a
manufactured home community pursuant to a lease, unless such lease—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idAD22B79FFA3241A383058F6755E2A881"><enum>(A)</enum><text display-inline="yes-display-inline">expires not less than 3 years after the
origination date of the obligation;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC294BC3EC40B4B4FAAE0BDF71BD05EB8"><enum>(B)</enum><text display-inline="yes-display-inline">is renewable upon the expiration of the
original 3 year term by successive 1 year terms; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4C90DCF72D9B48BDB4354A97515811EA"><enum>(C)</enum><text display-inline="yes-display-inline">requires the lessor to provide the lessee
written notice of termination of the lease not less than 180 days prior to the
expiration of the current lease term in the event the lessee is required to
move due to the closing of the manufactured home community, and further
provides that failure to provide such notice to the mortgagor in a timely
manner will cause the lease term, at its expiration, to automatically renew for
an additional 1 year
term.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><enum>II</enum><header>Mortgage foreclosure
protections for servicemembers</header>
<section id="id869B9C36ED224CFA9D2C6AE631D9262F"><enum>201.</enum><header>Temporary increase in
maximum loan guaranty amount for certain housing loans guaranteed by the
Secretary of Veterans Affairs</header><text display-inline="no-display-inline">Notwithstanding subparagraph (C) of section
3703(a)(1) of title 38, United States Code, for purposes of any loan described
in subparagraph (A)(i)(IV) of such section that is originated during the period
beginning on the date of the enactment of this Act and ending on December 31,
2008, the term <term>maximum guaranty amount</term> shall mean an amount equal
to 25 percent of the higher of—</text>
<paragraph id="id219FA207859E4769B1ED3E29EFCA8EEC"><enum>(1)</enum><text>the limitation determined
under section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12
U.S.C. 1454(a)(2)) for the calendar year in which the loan is originated for a
single-family residence; or</text>
</paragraph><paragraph id="id77C3D517E00844238C1C521797F946A4"><enum>(2)</enum><text>125 percent of the area
median price for a single-family residence, but in no case to exceed 175
percent of the limitation determined under such section 305(a)(2) for the
calendar year in which the loan is originated for a single-family
residence.</text>
</paragraph></section><section id="id2A32B5C3AE88401F9ACA5CD4CEDEAE65"><enum>202.</enum><header>Counseling on mortgage
foreclosures for members of the Armed Forces returning from service
abroad</header>
<subsection id="idAC9D202816F54CEFBA4986F5857D1EB2"><enum>(a)</enum><header>In
general</header><text>The Secretary of Defense shall develop and implement a
program to advise members of the Armed Forces (including members of the
National Guard and Reserve) who are returning from service on active duty
abroad (including service in Operation Iraqi Freedom and Operation Enduring
Freedom) on actions to be taken by such members to prevent or forestall
mortgage foreclosures.</text>
</subsection><subsection id="id4F219F29928A404E8B8AF4E50CE9B7AC"><enum>(b)</enum><header>Elements</header><text>The
program required by subsection (a) shall include the following:</text>
<paragraph id="id2C88B898A2E94554B15735B5122EAF2D"><enum>(1)</enum><text>Credit counseling.</text>
</paragraph><paragraph id="idF7CDD220D5E040C986C9F519D70EE3F3"><enum>(2)</enum><text>Home mortgage
counseling.</text>
</paragraph><paragraph id="id46231E4C2CCD42BBAF1BE565CACAECDB"><enum>(3)</enum><text>Such other counseling and
information as the Secretary considers appropriate for purposes of the
program.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id50E3DA5EACD247119B4771E29EAF2946"><enum>(c)</enum><header>Timing of provision of
counseling</header><text>Counseling and other information under the program
required by subsection (a) shall be provided to a member of the Armed Forces
covered by the program as soon as practicable after the return of the member
from service as described in subsection (a).</text>
</subsection></section><section id="idB4BCF93180FA4904AF125F80BDEA2D22"><enum>203.</enum><header>Enhancement of
protections for servicemembers relating to mortgages and mortgage
foreclosures</header>
<subsection id="id26A919123F9A466ABA4418C66CBEBC0A"><enum>(a)</enum><header>Extension of period of
protections against mortgage foreclosures</header>
<paragraph id="idADC087B4557C47B496D7FF66AD73BB2F"><enum>(1)</enum><header>Extension of protection
period</header><text>Subsection (c) of section 303 of the Servicemembers Civil
Relief Act (<external-xref legal-doc="usc-appendix" parsable-cite="usc-appendix/50/533">50 U.S.C. App. 533</external-xref>) is amended by striking <quote>90 days</quote>
and inserting <quote>9 months</quote>.</text>
</paragraph><paragraph id="idF6C5E10924DC4DDD95D381234EF8DE1B"><enum>(2)</enum><header>Extension of stay of
proceedings period</header><text>Subsection (b) of such section is amended by
striking <quote>90 days</quote> and inserting <quote>9 months</quote>.</text>
</paragraph></subsection><subsection id="id3F500B54A9CE45988150BB134ECD3119"><enum>(b)</enum><header>Treatment of mortgages
as obligations subject to interest rate limitation</header><text>Section 207 of
the Servicemembers Civil Relief Act (<external-xref legal-doc="usc-appendix" parsable-cite="usc-appendix/50/527">50 U.S.C. App. 527</external-xref>) is amended—</text>
<paragraph id="id05B50D389EAC46CCAFE4DDCEA69BC5F9"><enum>(1)</enum><text>in subsection (a)(1), by
striking <quote>in excess of 6 percent</quote> the second place it appears and
all that follows and inserting “in excess of 6 percent—</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id31071713C53244A19ED6E8C2B96A027A" reported-display-style="italic" style="OLC">
<subparagraph id="id7E268483E93C43C7A6EEF59793BAD830"><enum>(A)</enum><text>during the period of
military service and one year thereafter, in the case of an obligation or
liability consisting of a mortgage, trust deed, or other security in the nature
of a mortgage; or</text>
</subparagraph><subparagraph id="idE2CDF46395A7458D95715089C9E29F23"><enum>(B)</enum><text>during the period of
military service, in the case of any other obligation or
liability.</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id5353E9CEFFD549B9AC8EE39E2CE60441"><enum>(2)</enum><text>by striking subsection
(d) and inserting the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id7449433E96404D0F96A7ACA81F411D5E" reported-display-style="italic" style="OLC">
<subsection id="id89CAB31E42F447FCA2A4AF3769063BFD"><enum>(d)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="id54AA0BD206BC4D549F1F9FB9DE5E97D1"><enum>(1)</enum><header>Interest</header><text>The
term <term>interest</term> includes service charges, renewal charges, fees, or
any other charges (except bona fide insurance) with respect to an obligation or
liability.</text>
</paragraph><paragraph id="id4BE2791B32D342369FEAC66F7046BBC6"><enum>(2)</enum><header>Obligation or
liability</header><text>The term <term>obligation or liability</term> includes
an obligation or liability consisting of a mortgage, trust deed, or other
security in the nature of a
mortgage.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id785D7B6486734110AF8A9DB227B049EA"><enum>(c)</enum><header>Effective date;
sunset</header>
<paragraph id="id3B4490FA60FD4DF8BBAAED5AD07E3DF8"><enum>(1)</enum><header>Effective
date</header><text>The amendment made by subsection (a) shall take effect on
the date of the enactment of this Act.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id787395CC07EB48E5BD7C889835EA492F"><enum>(2)</enum><header>Sunset</header><text>The
amendments made by subsection (a) shall expire on December 31, 2010. Effective
January 1, 2011, the provisions of subsections (b) and (c) of section 303 of
the Servicemembers Civil Relief Act, as in effect on the day before the date of
the enactment of this Act, are hereby revived.</text>
</paragraph></subsection></section><enum>III</enum><header>Emergency assistance
for the redevelopment of abandoned and foreclosed homes</header>
<section id="id1BF2CDC2278C476AB0F378405DDAA82E"><enum>301.</enum><header>Emergency assistance
for the redevelopment of abandoned and foreclosed homes</header>
<subsection id="id7970CE4F32474BCE97B0B9249B000762"><enum>(a)</enum><header>Direct
appropriations</header><text display-inline="yes-display-inline">There are
appropriated out of any money in the Treasury not otherwise appropriated for
the fiscal year 2008, $4,000,000,000, to remain available until expended, for
assistance to States and units of general local government (as such terms are
defined in section 102 of the Housing and Community Development Act of 1974 (42
U.S.C. 5302)) for the redevelopment of abandoned and foreclosed upon homes and
residential properties.</text>
</subsection><subsection id="idFE0A30C209E14DCBA9DC1BCAFFEEE4CF"><enum>(b)</enum><header>Allocation of
appropriated amounts</header>
<paragraph id="id5D7B9858832F40F69EEE73886A33AD7D"><enum>(1)</enum><header>In
general</header><text>The amounts appropriated or otherwise made available to
States and units of general local government under this section shall be
allocated based on a funding formula established by the Secretary of Housing
and Urban Development (in this title referred to as the
<quote>Secretary</quote>).</text>
</paragraph><paragraph id="id1861143134264142ABF0276572A9879E"><enum>(2)</enum><header>Formula to be devised
swiftly</header><text>The funding formula required under paragraph (1) shall be
established not later than 60 days after the date of enactment of this
section.</text>
</paragraph><paragraph id="idFFE42F956E8A463B82B090CD5E68D0FE"><enum>(3)</enum><header>Criteria</header><text>The
funding formula required under paragraph (1) shall ensure that any amounts
appropriated or otherwise made available under this section are allocated to
States and units of general local government with the greatest need, as such
need is determined in the discretion of the Secretary based on—</text>
<subparagraph id="ID36a48aa127c7490b9e3dd40ce281002f"><enum>(A)</enum><text>the number and percentage
of home foreclosures in each State or unit of general local government;</text>
</subparagraph><subparagraph id="ID88183d2dc42a4e31b8f9f32fb9d4c013"><enum>(B)</enum><text>the number and percentage
of homes financed by a subprime mortgage related loan in each State or unit of
general local government; and</text>
</subparagraph><subparagraph id="IDea079c7aee314ad4bf7d40884093e64f"><enum>(C)</enum><text>the number and percentage
of homes in default or delinquency in each State or unit of general local
government.</text>
</subparagraph></paragraph><paragraph id="id960DC51EE5684BE5884BB87A2AF724BD"><enum>(4)</enum><header>Distribution</header><text>Amounts
appropriated or otherwise made available under this section shall be
distributed according to the funding formula established by the Secretary under
paragraph (1) not later than 30 days after the establishment of such
formula.</text>
</paragraph></subsection><subsection id="id0F9798921E9E45DA9EE444EB2258FE03"><enum>(c)</enum><header>Use of funds</header>
<paragraph id="idB6820AAED53A452788863C596F240435"><enum>(1)</enum><header>In
general</header><text>Any State or unit of general local government that
receives amounts pursuant to this section shall, not later than 18 months after
the receipt of such amounts, use such amounts to purchase and redevelop
abandoned and foreclosed homes and residential properties.</text>
</paragraph><paragraph id="id74ABCB3E8E8C4F4682922E7E463162FF"><enum>(2)</enum><header>Priority</header><text>Any
State or unit of general local government that receives amounts pursuant to
this section shall in distributing such amounts give priority emphasis and
consideration to those metropolitan areas, metropolitan cities, urban areas,
rural areas, low- and moderate-income areas, and other areas with the greatest
need, including those—</text>
<subparagraph id="id3A1E69F4C61040EE972CD9B06E2DF1E1"><enum>(A)</enum><text>with the greatest
percentage of home foreclosures;</text>
</subparagraph><subparagraph id="idAB1AA9AFD5A14DF486ACA766BCA2F137"><enum>(B)</enum><text>with the highest
percentage of homes financed by a subprime mortgage related loan; and</text>
</subparagraph><subparagraph id="id21290CD6E3D749618279D3C4D380B99D"><enum>(C)</enum><text>identified by the State
or unit of general local government as likely to face a significant rise in the
rate of home foreclosures.</text>
</subparagraph></paragraph><paragraph id="idEF42AD5A158444D7BD16F2E88325E578"><enum>(3)</enum><header>Eligible
uses</header><text>Amounts made available under this section may be used
to—</text>
<subparagraph id="idA50B32BA955444DC908EDA347D5BBCE2"><enum>(A)</enum><text>establish financing
mechanisms for purchase and redevelopment of foreclosed upon homes and
residential properties, including such mechanisms as soft-seconds, loan loss
reserves, and shared-equity loans for low- and moderate-income
homebuyers;</text>
</subparagraph><subparagraph id="idD41329A46F2B40B28B589CC79FECD286"><enum>(B)</enum><text>purchase and rehabilitate
homes and residential properties that have been abandoned or foreclosed upon,
in order to sell, rent, or redevelop such homes and properties;</text>
</subparagraph><subparagraph id="id4926A42D9876415C99F569FC1BD9693B"><enum>(C)</enum><text>establish land banks for
homes that have been foreclosed upon; and</text>
</subparagraph><subparagraph id="id2E2CE201A491496C86E1E862C965437B"><enum>(D)</enum><text>demolish blighted
structures.</text>
</subparagraph></paragraph></subsection><subsection id="id4CA7ECAD2D684EF58291BD8D21C92245"><enum>(d)</enum><header>Limitations</header>
<paragraph id="id8FE5DC9BD5464FC98C85C052BD1E6CC8"><enum>(1)</enum><header>On
purchases</header><text>Any purchase of a foreclosed upon home or residential
property under this section shall be at a discount from the current market
appraised value of the home or property, taking into account its current
condition, and such discount shall ensure that purchasers are paying
below-market value for the home or property.</text>
</paragraph><paragraph id="id2A16D32DF4DE491DB5F8B8F9774F3FC2"><enum>(2)</enum><header>Sale of
homes</header><text>If an abandoned or foreclosed upon home or residential
property is purchased, redeveloped, or otherwise sold to an individual as a
primary residence, then such sale shall be in an amount equal to or less than
the cost to acquire and redevelop or rehabilitate such home or property up to a
decent, safe, and habitable condition.</text>
</paragraph><paragraph id="id3E0A2198D3D94521948A6A28D96F5F6C"><enum>(3)</enum><header>Reinvestment of
profits</header>
<subparagraph id="idCACDD66210A84665BD0DFAF0CC7D5194"><enum>(A)</enum><header>Profits from sales,
rentals, and redevelopment</header>
<clause id="idF80722A53B324DC3A4DA610A807550DA"><enum>(i)</enum><header>5-year reinvestment
period</header><text>During the 5-year period following the date of enactment
of this Act, any revenue generated from the sale, rental, redevelopment,
rehabilitation, or any other eligible use that is in excess of the cost to
acquire and redevelop (including reasonable development fees) or rehabilitate
an abandoned or foreclosed upon home or residential property shall be provided
to and used by the State or unit of general local government in accordance
with, and in furtherance of, the intent and provisions of this section.</text>
</clause><clause id="id9C5DC8BF8BE04F518AEFA9EB8710E0E3"><enum>(ii)</enum><header>Deposits in the
Treasury</header>
<subclause id="idCC033D5C87504644B91269F3B79E66B0"><enum>(I)</enum><header>Profits</header><text>Upon
the expiration of the 5-year period set forth under clause (i), any revenue
generated from the sale, rental, redevelopment, rehabilitation, or any other
eligible use that is in excess of the cost to acquire and redevelop (including
reasonable development fees) or rehabilitate an abandoned or foreclosed upon
home or residential property shall be deposited in the Treasury of the United
States as miscellaneous receipts, unless the Secretary approves a request to
use the funds for purposes under this Act.</text>
</subclause><subclause id="id57BCB7AE2DFF4DD4A0254A89D4749F42"><enum>(II)</enum><header>Other
amounts</header><text>Upon the expiration of the 5-year period set forth under
clause (i), any other revenue not described under subclause (I) generated from
the sale, rental, redevelopment, rehabilitation, or any other eligible use of
an abandoned or foreclosed upon home or residential property shall be deposited
in the Treasury of the United States as miscellaneous receipts.</text>
</subclause></clause></subparagraph><subparagraph id="id3F32BC7E704940C78E0FCABDD3BF2746"><enum>(B)</enum><header>Other
revenues</header><text>Any revenue generated under subparagraphs (A), (C) or
(D) of subsection (c)(3) shall be provided to and used by the State or unit of
general local government in accordance with, and in furtherance of, the intent
and provisions of this section.</text>
</subparagraph></paragraph></subsection><subsection id="id9406AA840F5346778C80ECADAE087E92"><enum>(e)</enum><header>Rules of
construction</header>
<paragraph id="idC138CC8A577F45688244F336B8F8556C"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided by this section, amounts
appropriated, revenues generated, or amounts otherwise made available to States
and units of general local government under this section shall be treated as
though such funds were community development block grant funds under title I of
the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et
seq.).</text>
</paragraph><paragraph id="ID74b27efad9424c118f3e925623104ed0"><enum>(2)</enum><header>No
Match</header><text>No matching funds shall be required in order for a State or
unit of general local government to receive any amounts under this
section.</text>
</paragraph></subsection><subsection id="idAB630201DA0C4B73AED62E2D9B9D4409"><enum>(f)</enum><header>Authority to specify
alternative requirements</header>
<paragraph id="id0BE8DE45C19E4FF0B86A4A1A976CAB5B"><enum>(1)</enum><header>In
general</header><text>In administering any amounts appropriated or otherwise
made available under this section, the Secretary may specify alternative
requirements to any provision under title I of the Housing and Community
Development Act of 1974 (except for those related to fair housing,
nondiscrimination, labor standards, and the environment) in accordance with the
terms of this section and for the sole purpose of expediting the use of such
funds.</text>
</paragraph><paragraph id="id90D0C514F1DD47FFA7A64091F0DDF129"><enum>(2)</enum><header>Notice</header><text>The
Secretary shall provide written notice of its intent to exercise the authority
to specify alternative requirements under paragraph (1) to the Committee on
Banking, Housing and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives not later than 10 business days before
such exercise of authority is to occur.</text>
</paragraph><paragraph id="id6D39CF993E3A41F496490B338EC7249D"><enum>(3)</enum><header>Low and moderate income
requirement</header>
<subparagraph id="id93C9F676166D4889B796E6D59466A0EC"><enum>(A)</enum><header>In
general</header><text>Notwithstanding the authority of the Secretary under
paragraph (1)—</text>
<clause id="id39D39DD239754A6A8B2E464A7895B3AC"><enum>(i)</enum><text>all of the funds
appropriated or otherwise made available under this section shall be used with
respect to individuals and families whose income does not exceed 120 percent of
area median income; and</text>
</clause><clause id="idEEFDEEFF1FE34C1EA57B064FA23C78F3"><enum>(ii)</enum><text>not less than 25 percent
of the funds appropriated or otherwise made available under this section shall
be used for the purchase and redevelopment of abandoned or foreclosed upon
homes or residential properties that will be used to house individuals or
families whose incomes do not exceed 50 percent of area median income.</text>
</clause></subparagraph><subparagraph id="id534CC1DD58D8410B84EFF58C175DE476"><enum>(B)</enum><header>Recurrent
requirement</header><text>The Secretary shall, by rule or order, ensure, to the
maximum extent practicable and for the longest feasible term, that the sale,
rental, or redevelopment of abandoned and foreclosed upon homes and residential
properties under this section remain affordable to individuals or families
described in subparagraph (A).</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id0F0CC1723E324462A20592713A73FA20"><enum>(g)</enum><header>Periodic
audits</header><text>In consultation with the Secretary of Housing and Urban
Development, the Comptroller General of the United States shall conduct
periodic audits to ensure that funds appropriated, made available, or otherwise
distributed under this section are being used in a manner consistent with the
criteria provided in this section.</text>
</subsection></section><section id="id73701B7641D640CDAE81B993E3ADDEC5"><enum>302.</enum><header>Nationwide
distribution of resources</header><text display-inline="no-display-inline">Notwithstanding any other provision of this
Act or the amendments made by this Act, each State shall receive not less than
0.5 percent of funds made available under section 301 (relating to emergency
assistance for the redevelopment of abandoned and foreclosed homes).</text>
</section><section id="id088791024F234EE78E95B84D9269F57F"><enum>303.</enum><header>Limitation on use of
funds with respect to eminent domain</header><text display-inline="no-display-inline">No State or unit of general local government
may use any amounts received pursuant to section 301 to fund any project that
seeks to use the power of eminent domain, unless eminent domain is employed
only for a public use: <italic>Provided,</italic> That for purposes of this
section, public use shall not be construed to include economic development that
primarily benefits private entities.</text>
</section><section id="idE5EDBB2278944B5CBD95DB2B7D372A4B"><enum>304.</enum><header>Limitation on
distribution of funds</header>
<subsection id="idB8CE8611280A41CC9E9FACA694BAAB1F"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">None of the funds
made available under this title or title IV shall be distributed to—</text>
<paragraph id="id46F0BFFFEA074F1F82413371A6C2A950"><enum>(1)</enum><text display-inline="yes-display-inline">an organization which has been indicted for
a violation under Federal law relating to an election for Federal office;
or</text>
</paragraph><paragraph id="id9AEC5314D1E9432BBC28F6D841AA7902"><enum>(2)</enum><text display-inline="yes-display-inline">an organization which employs applicable
individuals.</text>
</paragraph></subsection><subsection id="id4A278223156D4AFC8D226621F816D800"><enum>(b)</enum><header>Applicable individuals
defined</header><text display-inline="yes-display-inline">In this section, the
term <term>applicable individual</term> means an individual who—</text>
<paragraph id="idC72A8C00923A4A15B9DFB0A4247CE9B0"><enum>(1)</enum><text display-inline="yes-display-inline">is—</text>
<subparagraph id="id6F9F072A69AC4AAE954667A50A00D557"><enum>(A)</enum><text display-inline="yes-display-inline">employed by the organization in a permanent
or temporary capacity;</text>
</subparagraph><subparagraph id="idD694B68E78BF46F6A6F3442DE9D9A27C"><enum>(B)</enum><text display-inline="yes-display-inline">contracted or retained by the organization;
or</text>
</subparagraph><subparagraph id="id7142058E85D34CE0870A7AAE8CEC1CEC"><enum>(C)</enum><text display-inline="yes-display-inline">acting on behalf of, or with the express or
apparent authority of, the organization; and</text>
</subparagraph></paragraph><paragraph id="id983365D2C7A84E059A1D61540C4AAE3D"><enum>(2)</enum><text>has been indicted for a
violation under Federal law relating to an election for Federal office.</text>
</paragraph></subsection></section><section id="id5A0A91B7295746D5B2135DC3C0995BC6"><enum>305.</enum><header>Counseling
intermediaries</header><text display-inline="no-display-inline">Notwithstanding
any other provision of this Act, the amount appropriated under section 301(a)
of this Act shall be $3,920,000,000 and the amount appropriated under section
401 of this Act shall be $180,000,000: <italic>Provided,</italic> That of
amounts appropriated under such section 401 $30,000,000 shall be used by the
Neighborhood Reinvestment Corporation (referred to in this section as the
<quote>NRC</quote>) to make grants to counseling intermediaries approved by the
Department of Housing and Urban Development or the NRC to hire attorneys to
assist homeowners who have legal issues directly related to the homeowner's
foreclosure, delinquency or short sale. Such attorneys shall be capable of
assisting homeowners of owner-occupied homes with mortgages in default, in
danger of default, or subject to or at risk of foreclosure and who have legal
issues that cannot be handled by counselors already employed by such
intermediaries: <italic>Provided,</italic> That of the amounts provided for in
the prior provisos the NRC shall give priority consideration to counseling
intermediaries and legal organizations that (1) provide legal assistance in the
100 metropolitan statistical areas (as defined by the Director of the Office of
Management and Budget) with the highest home foreclosure rates, and (2) have
the capacity to begin using the financial assistance within 90 days after
receipt of the assistance: <italic>Provided further,</italic> That no funds
provided under this Act shall be used to provide, obtain, or arrange on behalf
of a homeowner, legal representation involving or for the purposes of civil
litigation.</text>
</section><enum>IV</enum><header>Housing counseling
resources</header>
<section id="idA2C1A499935944E69801ED5EC7300196"><enum>401.</enum><header>Housing counseling
resources</header><text display-inline="no-display-inline">There are
appropriated out of any money in the Treasury not otherwise appropriated for
the fiscal year 2008, for an additional amount for the <quote>Neighborhood
Reinvestment Corporation—Payment to the Neighborhood Reinvestment
Corporation</quote> $100,000,000, to remain available until September 30, 2008,
for foreclosure mitigation activities under the terms and conditions contained
in the second undesignated paragraph (beginning with the phrase <quote>For an
additional amount</quote>) under the heading <quote>Neighborhood Reinvestment
Corporation—Payment to the Neighborhood Reinvestment Corporation</quote> of
<external-xref legal-doc="public-law" parsable-cite="pl/110/161">Public Law 110–161</external-xref>.</text>
</section><section id="id1CFB345364A44DF6A3713E904A7DECAB"><enum>402.</enum><header>Credit
counseling</header>
<subsection id="idE3B0FAC743414E62939F3DFE8AC3AEF6"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Entities approved by
the Neighborhood Reinvestment Corporation or the Secretary and State housing
finance entities receiving funds under this title shall work to identify and
coordinate with non-profit organizations operating national or statewide
toll-free foreclosure prevention hotlines, including those that—</text>
<paragraph id="id511873D979C9457B8B6301E7B29CBFB4"><enum>(1)</enum><text display-inline="yes-display-inline">serve as a consumer referral source and
data repository for borrowers experiencing some form of delinquency or
foreclosure;</text>
</paragraph><paragraph id="idC3C2937727EE4E99881A65366F304B16"><enum>(2)</enum><text display-inline="yes-display-inline">connect callers with local housing
counseling agencies approved by the Neighborhood Reinvestment Corporation or
the Secretary to assist with working out a positive resolution to their
mortgage delinquency or foreclosure; or</text>
</paragraph><paragraph id="idCEBEB4389F924F0785E3E8ECBEAF0941"><enum>(3)</enum><text display-inline="yes-display-inline">facilitate or offer free assistance to help
homeowners to understand their options, negotiate solutions, and find the best
resolution for their particular circumstances.</text>
</paragraph></subsection></section><enum>V</enum><header>Mortgage Disclosure
Improvement Act</header>
<section id="id222382E416594CA4B7DFB79C9A187EF2"><enum>501.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>Mortgage Disclosure Improvement Act of 2008</quote>.</text>
</section><section id="id4E8CC6CA92A34CB78B921D5BAE5B1133" section-type="subsequent-section"><enum>502.</enum><header>Enhanced mortgage
loan disclosures</header>
<subsection id="id8512225B4D6E4CBDA0E8AF35CEE8F9DF"><enum>(a)</enum><header>Truth in Lending Act
Disclosures</header><text display-inline="yes-display-inline">Section 128(b)(2)
of the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1638">15 U.S.C. 1638(b)(2)</external-xref>) is amended—</text>
<paragraph id="id5F36A14F3E814A35B3350511614E366F"><enum>(1)</enum><text>by inserting
<quote>(A)</quote> before <quote>In the</quote>;</text>
</paragraph><paragraph id="id3A736173BDFE44D5B872148D251BB778"><enum>(2)</enum><text>by striking <quote>a
residential mortgage transaction, as defined in section 103(w)</quote> and
inserting <quote>any extension of credit that is secured by the dwelling of a
consumer</quote>;</text>
</paragraph><paragraph id="idE5733A2F3D5C499E9544F82AD462D352"><enum>(3)</enum><text>by striking <quote>before
the credit is extended, or</quote>;</text>
</paragraph><paragraph id="id4E3A3FD7CC954055AFA1C5E0F661E414"><enum>(4)</enum><text>by inserting <quote>,
which shall be at least 7 business days before consummation of the
transaction</quote> after <quote>written application</quote>;</text>
</paragraph><paragraph id="id570AD39CE0F048669F288D340B820558"><enum>(5)</enum><text>by striking <quote>,
whichever is earlier</quote>; and</text>
</paragraph><paragraph id="idA3B9F039161D4558A86AAE505CEB7C07"><enum>(6)</enum><text>by striking <quote>If
the</quote> and all that follows through the end of the paragraph and inserting
the following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id7585EBC4AB664E6C8F03C4F9670CFB72" reported-display-style="italic" style="OLC">
<subparagraph id="id082B52069A654DAB9B69F6EC0E14ED6C" indent="up1"><enum>(B)</enum><text>In the
case of an extension of credit that is secured by the dwelling of a consumer,
the disclosures provided under subparagraph (A), shall be in addition to the
other disclosures required by subsection (a), and shall—</text>
<clause id="id8401EEBE508A4C55878C9ED62AB487C0"><enum>(i)</enum><text>state in conspicuous type
size and format, the following: <quote>You are not required to complete this
agreement merely because you have received these disclosures or signed a loan
application.</quote>; and</text>
</clause><clause id="id07B8143474854EA79E70D1B59A20287B"><enum>(ii)</enum><text>be
provided in the form of final disclosures at the time of consummation of the
transaction, in the form and manner prescribed by this section.</text>
</clause></subparagraph><subparagraph id="id208E044DAC4046CFAC214A187B1C4424" indent="up1"><enum>(C)</enum><text>In the
case of an extension of credit that is secured by the dwelling of a consumer,
under which the annual rate of interest is variable, or with respect to which
the regular payments may otherwise be variable, in addition to the other
disclosures required by subsection (a), the disclosures provided under this
subsection shall do the following:</text>
<clause id="id90347D5904364D0594963BEDC3FEA883"><enum>(i)</enum><text>Label the payment
schedule as follows: <quote>Payment Schedule: Payments Will Vary Based on
Interest Rate Changes</quote>.</text>
</clause><clause id="id9A81B949F68945559E56981C4BC0C767"><enum>(ii)</enum><text>State in conspicuous
type size and format examples of adjustments to the regular required payment on
the extension of credit based on the change in the interest rates specified by
the contract for such extension of credit. Among the examples required to be
provided under this clause is an example that reflects the maximum payment
amount of the regular required payments on the extension of credit, based on
the maximum interest rate allowed under the contract, in accordance with the
rules of the Board. Prior to issuing any rules pursuant to this clause, the
Board shall conduct consumer testing to determine the appropriate format for
providing the disclosures required under this subparagraph to consumers so that
such disclosures can be easily understood.</text>
</clause></subparagraph><subparagraph id="id1EDE84CDDD0540FFAD4D951AD6005986" indent="up1"><enum>(D)</enum><text>In any
case in which the disclosure statement under subparagraph (A) contains an
annual percentage rate of interest that is no longer accurate, as determined
under section 107(c), the creditor shall furnish an additional, corrected
statement to the borrower, not later than 3 business days before the date of
consummation of the transaction.</text>
</subparagraph><subparagraph id="idA1F67BDD76014C54BA7BE455029242C3" indent="up1"><enum>(E)</enum><text>The
consumer shall receive the disclosures required under this paragraph before
paying any fee to the creditor or other person in connection with the
consumer’s application for an extension of credit that is secured by the
dwelling of a consumer. If the disclosures are mailed to the consumer, the
consumer is considered to have received them 3 business days after they are
mailed. A creditor or other person may impose a fee for obtaining the
consumer’s credit report before the consumer has received the disclosures under
this paragraph, provided the fee is bona fide and reasonable in amount.</text>
</subparagraph><subparagraph id="ID1fd997375295483589a0a3c61534ef1a" indent="up1"><enum>(F)</enum><header>Waiver of timeliness of
disclosures</header><text>To expedite consummation of a transaction, if the
consumer determines that the extension of credit is needed to meet a bona fide
personal financial emergency, the consumer may waive or modify the timing
requirements for disclosures under subparagraph (A), provided that—</text>
<clause id="id51C96E204BF74255BC95C0B86AAEF25E"><enum>(i)</enum><text>the
term <quote>bona fide personal emergency</quote> may be further defined in
regulations issued by the Board;</text>
</clause><clause id="IDebe685417d38437d8ce344b1a6d7b8c5"><enum>(ii)</enum><text>the consumer provides to
the creditor a dated, written statement describing the emergency and
specifically waiving or modifying those timing requirements, which statement
shall bear the signature of all consumers entitled to receive the disclosures
required by this paragraph; and</text>
</clause><clause id="ID1d5eea36674e41fb962a5eeea8bc28df"><enum>(iii)</enum><text>the creditor provides
to the consumers at or before the time of such waiver or modification, the
final disclosures required by paragraph (1).</text>
</clause></subparagraph><subparagraph id="IDdee082e236c2454abb7c792f74b7bc96" indent="up1"><enum>(G)</enum><text>The
requirements of subparagraphs (B), (C), (D) and (E) shall not apply to
extensions of credit relating to plans described in section 101(53D) of title
11, United States
Code.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id57668AAB2577445BA031D745B02D2D3A"><enum>(b)</enum><header>Civil
liability</header><text display-inline="yes-display-inline">Section 130(a) of
the Truth in Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1640">15 U.S.C. 1640(a)</external-xref>) is amended—</text>
<paragraph id="id06380036F0E14A12B2C1A0C606D0FB65"><enum>(1)</enum><text>in paragraph (2)(A)(iii),
by striking <quote>not less than $200 or greater than $2,000</quote> and
inserting <quote>not less than $400 or greater than $4,000</quote>; and</text>
</paragraph><paragraph id="id97E37A856CFC4916B44F7A401939025B"><enum>(2)</enum><text display-inline="yes-display-inline">in the penultimate sentence of the
undesignated matter following paragraph (4)—</text>
<subparagraph id="id2FBC404405C04584B22D6B663AFFBE68"><enum>(A)</enum><text>by inserting <quote>or
section 128(b)(2)(C)(ii),</quote> after <quote>128(a),</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id917F6782DD754485A6BBA1E9625A5A07"><enum>(B)</enum><text>by inserting <quote>or
section 128(b)(2)(C)(ii)</quote> before the period.</text>
</subparagraph></paragraph></subsection><subsection id="IDd42f6b1fa5234c079f35054a84441d72"><enum>(c)</enum><header>Effective
Dates</header>
<paragraph id="id3EBBAF37E206497DA3A7430C8AB6E6CD"><enum>(1)</enum><header>General
disclosures</header><text>Except as provided in paragraph (2), the amendments
made by subsection (a) shall become effective 12 months after the date of
enactment of this Act.</text>
</paragraph><paragraph id="id5491C4A6BC0A4E428CF277624DA8BBF3"><enum>(2)</enum><header>Variable interest
rates</header><text>Subparagraph (C) of section 128(b)(2) of the Truth in
Lending Act (<external-xref legal-doc="usc" parsable-cite="usc/15/1638">15 U.S.C. 1638(b)(2)(C)</external-xref>), as added by subsection (a) of this
section, shall become effective on the earlier of—</text>
<subparagraph id="idF4D811E1A28C4BE99066E12340851709"><enum>(A)</enum><text>the compliance date
established by the Board for such purpose, by regulation; or</text>
</subparagraph><subparagraph id="idBC655243364B4DA592F59ADCCE37A208"><enum>(B)</enum><text>30 months after the date
of enactment of this Act.</text>
</subparagraph></paragraph></subsection></section><section id="idF1A9093E02024E38926C547A86648F77"><enum>503.</enum><header>Community Development
Investment Authority for depository institutions</header>
<subsection id="id8B7C386BA16B4525A4498691959E79F5"><enum>(a)</enum><header>Depository institution
community development investments</header>
<paragraph id="ID3348bdbdd4904ef79b4ccf6a1799b856"><enum>(1)</enum><header>National
banks</header><text>The first sentence of the paragraph designated as the
<quote>Eleventh</quote> of section 5136 of the Revised Statutes of the United
States (<external-xref legal-doc="usc" parsable-cite="usc/12/24">12 U.S.C. 24</external-xref>) (as amended by section 305(a) of the Financial Services
Regulatory Relief Act of 2006) is amended by striking <quote>promotes the
public welfare by benefitting primarily</quote> and inserting <quote>is
designed primarily to promote the public welfare, including the welfare
of</quote>.</text>
</paragraph><paragraph id="IDd33e02c393664ec194869e0cb732073c"><enum>(2)</enum><header>State member
banks</header><text>The first sentence of the 23rd paragraph of section 9 of
the Federal Reserve Act (<external-xref legal-doc="usc" parsable-cite="usc/12/338a">12 U.S.C. 338a</external-xref>) is amended by striking <quote>promotes
the public welfare by benefitting primarily</quote> and inserting <quote>is
designed primarily to promote the public welfare, including the welfare
of</quote>.</text>
</paragraph></subsection></section><section id="id8154FAD40C15483AA2E78C2DACE30BC6"><enum>504.</enum><header>Federal Home loan bank
refinancing authority for certain residential mortgage loans</header><text display-inline="no-display-inline">Section 10(j)(2) of the Federal Home Loan
Bank Act (<external-xref legal-doc="usc" parsable-cite="usc/12/1430">12 U.S.C. 1430(j)(2)</external-xref> is amended—</text>
<paragraph id="id49ADF20A68A94878A62C498CF806E31F"><enum>(1)</enum><text>in subparagraph (A), by
striking <quote>or</quote> at the end;</text>
</paragraph><paragraph id="idF62613E235F84B31B16DB0AD50748F6D"><enum>(2)</enum><text>in subparagraph (B), by
striking the period at the end and inserting <quote>; or</quote>; and</text>
</paragraph><paragraph id="idDDF77C6AC0EB43C6975D44A2801C9635"><enum>(3)</enum><text>by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idD75708948D2A4F8990C0A409E254FB2B" reported-display-style="italic" style="OLC">
<subparagraph id="id7644AC6222CC4327A3EF56AEEA9870D5"><enum>(C)</enum><text>during the 2-year period
beginning on the date of enactment of this subparagraph, refinance loans that
are secured by a first mortgage on a primary residence of any family having an
income at or below 80 percent of the median income for the
area.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><enum>VI</enum><header>Tax-related
provisions</header>
<section id="IDF2B306F1EC2946B2A9FADC6CD59E0064"><enum>601.</enum><header>Election for 4-year
carryback of certain net operating losses and temporary suspension of 90
percent AMT limit</header>
<subsection id="IDD943244B9DEB4EE9985280327EEDEA04"><enum>(a)</enum><header>In general</header>
<paragraph id="id206B6677172446909E2BE651076AE028"><enum>(1)</enum><header>4-year carryback of
certain losses</header><text>Subparagraph (H) of section 172(b)(1) of the
Internal Revenue Code of 1986 (relating to years to which loss may be carried)
is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idA72692128AA14D7793AAC4908BAEA451" reported-display-style="italic" style="OLC">
<subparagraph id="idC598B916365045FCBA79AA54E5298A60"><enum>(H)</enum><header>Additional carryback of
certain losses</header>
<clause id="id07DDAB8475FD4DAC8D0C4577DF2777F6"><enum>(i)</enum><header>Taxable years ending
during 2001 and 2002</header><text>In the case of a net operating loss for any
taxable year ending during 2001 or 2002, subparagraph (A)(i) shall be applied
by substituting <quote>5</quote> for <quote>2</quote> and subparagraph (F)
shall not apply.</text>
</clause><clause id="id489C33104EC946CEB63C04DDAD137BA5"><enum>(ii)</enum><header>Taxable years ending
during 2008 and 2009</header><text>In the case of a net operating loss with
respect to any eligible taxpayer (within the meaning of section 168(k)(4)) for
any taxable year ending during 2008 or 2009—</text>
<subclause id="idC8362D5196424425B44AF9DEA92DCC6B"><enum>(I)</enum><text>subparagraph (A)(i) shall
be applied by substituting <quote>4</quote> for <quote>2</quote>,</text>
</subclause><subclause id="id79EF2CBB8EF44E6AB9223320FBEDD6B2"><enum>(II)</enum><text>subparagraph (E)(ii)
shall be applied by substituting <quote>3</quote> for <quote>2</quote>,
and</text>
</subclause><subclause id="id1420B883D27E4091B4D54969FC72BA6A"><enum>(III)</enum><text>subparagraph (F) shall
not
apply.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="ID70E44446FEB74F1B81A8C39E6047CEF1"><enum>(2)</enum><header>Temporary suspension of
90 percent limit on certain NOL carrybacks and carryovers</header>
<subparagraph id="id1A45B12EA2E74ECD8F7406CD3455F064"><enum>(A)</enum><header>In
general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/56">Section 56(d)</external-xref> of the Internal Revenue Code of 1986
(relating to definition of alternative tax net operating loss deduction) is
amended by adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id2AAB59D8EF994C9FAD4C2E0B0FC2880E" reported-display-style="italic" style="OLC">
<paragraph id="idF092949B7FD64A1683A2F728245E8B29"><enum>(3)</enum><header>Additional
adjustments</header><text>For purposes of paragraph (1)(A), in the case of an
eligible taxpayer (within the meaning of section 168(k)(4)), the amount
described in subclause (I) of paragraph (1)(A)(ii) shall be increased by the
amount of the net operating loss deduction allowable for the taxable year under
section 172 attributable to the sum of—</text>
<subparagraph id="idC114BC22B3C7447F8EBF80D6E846446F"><enum>(A)</enum><text>carrybacks of net
operating losses from taxable years ending during 2008 and 2009, and</text>
</subparagraph><subparagraph id="idE061D523FC534D6E9F11F8BBEED98A96"><enum>(B)</enum><text>carryovers of net
operating losses to taxable years ending during 2008 or
2009.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="id1616A021C57C4E688548621183A01B25"><enum>(B)</enum><header>Conforming
amendment</header><text>Subclause (I) of section 56(d)(1)(A)(i) of such Code is
amended by inserting <quote>amount of such</quote> before <quote>deduction
described in clause (ii)(I)</quote>.</text>
</subparagraph></paragraph><paragraph id="idA039F8323B43422D82D229E4062C5288"><enum>(3)</enum><header>Effective
dates</header>
<subparagraph id="IDA1EBF98DB0C748709A9EBF12D6289B19"><enum>(A)</enum><header>Net operating
losses</header><text>The amendments made by paragraph (1) shall apply to net
operating losses arising in taxable years ending in 2008 or 2009.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD875F678C2274583993756996B965364"><enum>(B)</enum><header>Suspension of AMT
limitation</header><text>The amendments made by paragraph (2) shall apply to
taxable years ending after December 31, 1997.</text>
</subparagraph></paragraph><paragraph id="id43F87EDF37EA4DA78C56593B3AF3B88F"><enum>(4)</enum><header>Anti-abuse
rules</header><text>The Secretary of Treasury or the Secretary's designee shall
prescribe such rules as are necessary to prevent the abuse of the purposes of
the amendments made by this subsection, including anti-stuffing rules,
anti-churning rules (including rules relating to sale-leasebacks), and rules
similar to the rules under <external-xref legal-doc="usc" parsable-cite="usc/26/1091">section 1091</external-xref> of the Internal Revenue Code of 1986
relating to losses from wash sales.</text>
</paragraph></subsection><subsection id="idA67D3356ED4746BAB96CDC355CFAD564"><enum>(b)</enum><header>Election among stimulus
incentives</header>
<paragraph id="idAD17BC8A5A514413AA988705AC09952B"><enum>(1)</enum><header>In general</header>
<subparagraph id="id507055B9662641B2A03C44DB11F74722"><enum>(A)</enum><header>Bonus
depreciation</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/168">Section 168(k)</external-xref> of the Internal Revenue Code of 1986
(relating to special allowance for certain property acquired after December 31,
2007, and before January 1, 2009), as amended by the Economic Stimulus Act of
2008, is amended—</text>
<clause id="idDE0EEDF64AB44C2DB13D6B0354B7EF08"><enum>(i)</enum><text>in paragraph (1), by
inserting <quote>placed in service by an eligible taxpayer</quote> after
<quote>any qualified property</quote>, and</text>
</clause><clause id="id373D66B0ACF44E09AAE1B7205F0EE4BC"><enum>(ii)</enum><text>by adding at the end the
following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id6704C5092FDD41C298259C0118157E07" reported-display-style="italic" style="OLC">
<paragraph id="idF903D910CE4A40749A84328568C9881B"><enum>(4)</enum><header>Eligible
taxpayer</header>
<subparagraph id="id9B4AE4A980244CE7B7315A2EA90E2A19"><enum>(A)</enum><header>In
general</header><text>At such time and in such manner as the Secretary shall
prescribe, each taxpayer may elect to be an eligible taxpayer with respect to 1
(and only 1) of the following:</text>
<clause id="id273A174AD9E24F1F99BAEE9386495E78"><enum>(i)</enum><text>This subsection and
section 179(b)(7).</text>
</clause><clause id="idF509198C0F264EB6B4B8246BB6F3E163"><enum>(ii)</enum><text>The application of
section 56(d)(1)(A)(ii)(I) and section 172(b)(1)(H)(ii) in connection with net
operating losses relating to taxable years ending during 2008 and 2009.</text>
</clause></subparagraph><subparagraph id="id986B83CF097049528D6D3C0A1BB5C351"><enum>(B)</enum><header>Eligible
taxpayer</header><text>For purposes of each of the provisions described in
subparagraph (A), a taxpayer shall only be treated as an eligible taxpayer with
respect to the provision with respect to which the taxpayer made the election
under subparagraph (A).</text>
</subparagraph><subparagraph id="id6022D2DF047A4C7D937F7EE0C590D14E"><enum>(C)</enum><header>Election
irrevocable</header><text>An election under subparagraph (A) may not be revoked
except with the consent of the
Secretary.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</clause></subparagraph><subparagraph id="id0BAC10F7E27646998C676575E330A453"><enum>(B)</enum><header>Effective
date</header><text>The amendments made by this paragraph shall take effect as
if included in section 103 of the Economic Stimulus Act of 2008.</text>
</subparagraph></paragraph><paragraph id="id0B42DD11A9074F719E343F0912EDACE5"><enum>(2)</enum><header>Election for increased
expensing</header>
<subparagraph id="idADBB69F99D1943E48DF074A06B79EB10"><enum>(A)</enum><header>In
general</header><text>Paragraph (7) of section 179(b) of the Internal Revenue
Code of 1986 (relating to limitations), as added by the Economic Stimulus Act
of 2008, is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id4BD2B9D0660F44F89D92503E4A2E222D" reported-display-style="italic" style="OLC">
<paragraph id="idF751BAA717ED44C1963814FE0E8E8D0B"><enum>(7)</enum><header>Special rule for
eligible taxpayers in 2008</header><text>In the case of any taxable year of any
eligible taxpayer (within the meaning of section 168(k)(4)) beginning in
2008—</text>
<subparagraph id="idF0AE09B6725243B8A9FCBEF168D8170C"><enum>(A)</enum><text>the dollar limitation
under paragraph (1) shall be $250,000,</text>
</subparagraph><subparagraph id="idF9085E40E84B41AFB77027D79BF4AA53"><enum>(B)</enum><text>the dollar limitation
under paragraph (2) shall be $800,000, and</text>
</subparagraph><subparagraph id="HB9B49A2395C749E9A437C64E84A4F177"><enum>(C)</enum><text>the amounts described in
subparagraphs (A) and (B) shall not be adjusted under paragraph
(5).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="idF5A70B7BC2BE49749813531E32E531C0"><enum>(B)</enum><header>Effective
date</header><text>The amendment made by this paragraph shall take effect as if
included in section 102 of the Economic Stimulus Act of 2008.</text>
</subparagraph></paragraph></subsection></section><section id="id6919674C34D8494184C06F3EB1C18858" section-type="subsequent-section"><enum>602.</enum><header>Modifications on use
of qualified mortgage bonds; temporary increased volume cap for certain housing
bonds</header>
<subsection id="id9DCAEA0C64274ABABB9A35419E49D28C"><enum>(a)</enum><header>Use of qualified
mortgage bonds proceeds for subprime refinancing loans</header><text display-inline="yes-display-inline">Section 143(k) of the Internal Revenue Code
of 1986 (relating to other definitions and special rules) is amended by adding
at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idECF94803A5F14D62A39D429BBDC8D9CC" reported-display-style="italic" style="OLC">
<paragraph id="id1913F985333F432E949416F4EDDBB7E0"><enum>(12)</enum><header>Special rules for
subprime refinancings</header>
<subparagraph id="id5F378138CDDF4AAF89E815413222A045"><enum>(A)</enum><header>In
general</header><text>Notwithstanding the requirements of subsection (i)(1),
the proceeds of a qualified mortgage issue may be used to refinance a mortgage
on a residence which was originally financed by the mortgagor through a
qualified subprime loan.</text>
</subparagraph><subparagraph id="id6D82AE51B9E446A8815C36358D5D8F00"><enum>(B)</enum><header>Special
rules</header><text>In applying this paragraph to any case in which the
proceeds of a qualified mortgage issue are used for any refinancing described
in subparagraph (A)—</text>
<clause id="id6490531D025046A2A76038F9C45F8456"><enum>(i)</enum><text>subsection (a)(2)(D)(i)
(relating to proceeds must be used within 42 months of date of issuance) shall
be applied by substituting <quote>12-month period</quote> for <quote>42-month
period</quote> each place it appears,</text>
</clause><clause id="id289CBD2DAA774224A81C7672BD40255A"><enum>(ii)</enum><text>subsection (d) (relating
to 3-year requirement) shall not apply, and</text>
</clause><clause id="idE1E732D521BD4C5A8E712E07382CE0FC"><enum>(iii)</enum><text>subsection (e)
(relating to purchase price requirement) shall be applied by using the market
value of the residence at the time of refinancing in lieu of the acquisition
cost.</text>
</clause></subparagraph><subparagraph id="id9E021F916D454AE9BA489D6CF85C2120"><enum>(C)</enum><header>Qualified subprime
loan</header><text>The term <term>qualified subprime loan</term> means an
adjustable rate single-family residential mortgage loan originated after
December 31, 2001, and before January 1, 2008, that the bond issuer determines
would be reasonably likely to cause financial hardship to the borrower if not
refinanced.</text>
</subparagraph><subparagraph id="id295F4A048FEF47A18041382261252C7B"><enum>(D)</enum><header>Termination</header><text>This
paragraph shall not apply to any bonds issued after December 31,
2010.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id0D356DCE6C0948E3BB51B1529F5F7CBE"><enum>(b)</enum><header>Increased volume cap
for certain bonds</header>
<paragraph id="idCF4F5C3B69994E58BD84C45DA0A0D238"><enum>(1)</enum><header>In
general</header><text>Subsection (d) of section 146 of the Internal Revenue
Code of 1986 (relating to State ceiling) is amended by adding at the end the
following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id802436E9BC334C54B3F802064056717D" reported-display-style="italic" style="OLC">
<paragraph id="idCDE9FFB5D4BF4031A5E46B57F7F5BA2B"><enum>(5)</enum><header>Increase and set aside
for housing bonds for 2008</header>
<subparagraph id="id5F1614C200B84935B3C42607E1E430E3"><enum>(A)</enum><header>Increase for
2008</header><text>In the case of calendar year 2008, the State ceiling for
each State shall be increased by an amount equal to the greater of—</text>
<clause id="idEC021AF5A03A470CAD4D8D17B215D22A"><enum>(i)</enum><text>$10,000,000,000
multiplied by a fraction—</text>
<subclause id="id57B0FC1363194E808DAE2B7127AC958A"><enum>(I)</enum><text>the numerator of which is
the population of such State, and</text>
</subclause><subclause id="id6E48AF6D29B44DF098444A9F327BFEAD"><enum>(II)</enum><text>the denominator of which
is the total population of all States, or</text>
</subclause></clause><clause id="id9C9F01AF823645628AD44EE127F3BC55"><enum>(ii)</enum><text>the amount determined
under subparagraph (B).</text>
</clause></subparagraph><subparagraph id="idCE0F26B72DB647FB9B6DE966A944A0AA"><enum>(B)</enum><header>Minimum
amount</header><text>The amount determined under this subparagraph is—</text>
<clause id="id5E5843A1DD1D4C1ABCB98F593A84E5D6"><enum>(i)</enum><text>in the case of a State
(other than a possession), $90,300,606, and</text>
</clause><clause id="id5B9EAA0F9BC24D00BC78ED53A259A1D0"><enum>(ii)</enum><text>in the case of a
possession of the United States with a population less than the least populous
State (other than a possession), the product of—</text>
<subclause id="idABE28BA7B832487AB40CACB69A0218D1"><enum>(I)</enum><text>a fraction the numerator
of which is $90,300,606 and the denominator of which is population of the least
populous State (other than a possession), and</text>
</subclause><subclause id="idD297ADC1F7FB4E508D7FFFFFD7FF0322"><enum>(II)</enum><text>the population of such
possession.</text>
</subclause><continuation-text continuation-text-level="clause">In the case of any possession of the
United States not described in clause (ii), the amount determined under this
subparagraph shall be zero.</continuation-text></clause></subparagraph><subparagraph id="id492C136C9B9B4B44A276F58D7BD7D07E"><enum>(C)</enum><header>Set aside</header>
<clause id="id298E444B04644638BDA8CB3584323638"><enum>(i)</enum><header>In
general</header><text>Any amount of the State ceiling for any State which is
attributable to an increase under this paragraph shall be allocated solely for
one or more qualified purposes.</text>
</clause><clause id="id164CD251F81E4F4E88ABD764A8C5DF5E"><enum>(ii)</enum><header>Qualified
purpose</header><text>For purposes of this paragraph, the term <term>qualified
purpose</term> means—</text>
<subclause id="idD3A28462C51F46F2859DBE3ED8347F6F"><enum>(I)</enum><text>the issuance of exempt
facility bonds used solely to provide qualified residential rental projects,
or</text>
</subclause><subclause id="idCDE499234F734723A4446F8BF2E33D9D"><enum>(II)</enum><text>a qualified mortgage
issue (determined by substituting <quote>12-month period</quote> for
<quote>42-month period</quote> each place it appears in section
143(a)(2)(D)(i)).</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id69226697AA724A3D9241005B2BB6C8CF"><enum>(2)</enum><header>Carryforward of unused
limitations</header><text>Subsection (f) of section 146 of such Code (relating
to elective carryforward of unused limitation for specified purpose) is amended
by adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id62374B2A41D34EE980C3EEC8EDD96D1D" reported-display-style="italic" style="OLC">
<paragraph id="id2C17366E95644FCEA1D7FA2D56D4E4D1"><enum>(6)</enum><header>Special rules for
increased volume cap under subsection
<enum-in-header>(d)(5)</enum-in-header></header>
<subparagraph id="id3A674BA6F0364016BE5F1786AE28BF3E"><enum>(A)</enum><header>In
general</header><text>No amount which is attributable to the increase under
subsection (d)(5) may be used—</text>
<clause id="id39B8350AE8BB472BA6968B2EE8ADC0A4"><enum>(i)</enum><text>for a carryforward
purpose other than a qualified purpose (as defined in subsection (d)(5)),
and</text>
</clause><clause id="idD99E6F82F9BD46D4848BEB9B7492F56A"><enum>(ii)</enum><text>to issue any bond after
calendar year 2010.</text>
</clause></subparagraph><subparagraph id="IDc003800ca97e46119d2291a9b14bad8a"><enum>(B)</enum><header>Ordering
rules</header><text>For purposes of subparagraph (A), any carryforward of an
issuing authority’s volume cap for calendar year 2008 shall be treated as
attributable to such increase to the extent of such
increase.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id3A91155A1CF04B138168FE2B1A57B4F7"><enum>(c)</enum><header>Alternative minimum tax
exemption for qualified mortgage bonds, qualified veterans' mortgage bonds, and
bonds for qualified residential rental projects</header>
<paragraph id="idB749F05D31A64B399DDFE0318B69480D"><enum>(1)</enum><header>In
general</header><text>Clause (ii) of section 57(a)(5)(C) of the Internal
Revenue Code of 1986 (relating to specified private activity bonds) is amended
by striking <quote>shall not include</quote> and all that follows and
inserting</text>
<quoted-block changed="added" display-inline="yes-display-inline" id="idFEBCE16BE3B9412688F8772A4A13CDDA" reported-display-style="italic" style="OLC">
<text>shall not
include—</text><subclause id="idE5F6B18D66524A7FB810590B9BBF6EDD"><enum>(I)</enum><text>any qualified 501(c)(3)
bond (as defined in section 145), or</text>
</subclause><subclause id="idD32C5F296F904AD7BFE3D09B7BDF200B"><enum>(II)</enum><text>any qualified mortgage
bond (as defined in section 143(a)), any qualified veterans' mortgage bond (as
defined in section 143(b)), or any exempt facility bond (as defined in section
142(a)) issued as part of an issue 95 percent or more of the net proceeds of
which are to be used to provide qualified residential rental projects (as
defined in section 142(d)), but only if such bond is issued after the date of
the enactment of this subclause and before January 1, 2011.</text>
</subclause><quoted-block-continuation-text quoted-block-continuation-text-level="clause">Subclause (II)
shall not apply to a refunding bond unless such subclause applied to the
refunded bond (or in the case of a series of refundings, the original
bond).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idE6D8AD8FF89E4CE2A81828DEB0351FD4"><enum>(2)</enum><header>Conforming
amendment</header><text>The heading for section 57(a)(5)(C)(ii) of such Code is
amended by striking <quote><header-in-text level="clause" style="OLC">qualified
<enum-in-header>501(c)(3)</enum-in-header> bonds</header-in-text></quote> and
inserting <quote><header-in-text level="clause" style="OLC">certain
bonds</header-in-text></quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idC6584C2CA1D84AB28A26C72DF8A5735B"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to bonds
issued after the date of the enactment of this Act.</text>
</subsection></section><section id="id00D98EB0034D4F898255E9F6BDE75A00" section-type="subsequent-section"><enum>603.</enum><header>Credit for certain
home purchases</header>
<subsection id="ID1913303D6FAF4166B44D11BE701895A9"><enum>(a)</enum><header>Allowance of
credit</header><text>Subpart A of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is
amended by inserting after section 25D the following new section:</text>
<quoted-block act-name="" changed="added" id="id796B26425585468AAB66B1F29143B625" reported-display-style="italic" style="OLC">
<section id="id5224850B85E74ADB84E79D05A21108A4"><enum>25E.</enum><header>Credit for certain
home purchases</header>
<subsection id="idFF6E92FE186D4C7BA3778383131F1ED6"><enum>(a)</enum><header>Allowance of
credit</header>
<paragraph id="id3743483ECA864DE28A48FEE7A064F1A5"><enum>(1)</enum><header>In
general</header><text>In the case of an individual who is a purchaser of a
qualified principal residence during the taxable year, there shall be allowed
as a credit against the tax imposed by this chapter an amount equal to so much
of the purchase price of the residence as does not exceed $7,000.</text>
</paragraph><paragraph id="idF316E6A8CC11480EB760FD2FAED200B6"><enum>(2)</enum><header>Allocation of credit
amount</header><text>The amount of the credit allowed under paragraph (1) shall
be equally divided among the 2 taxable years beginning with the taxable year in
which the purchase of the qualified principal residence is made.</text>
</paragraph></subsection><subsection id="id9DE7E5CDA9C84DBCB732CE50A244B904"><enum>(b)</enum><header>Limitations</header>
<paragraph id="id7D599410A9624BFEA74E1DE5148A66EC"><enum>(1)</enum><header>Date of
purchase</header><text>The credit allowed under subsection (a) shall be allowed
only with respect to purchases made—</text>
<subparagraph id="id953019E192B94AB7B32844F9A0F28861"><enum>(A)</enum><text>after the date of the
enactment of this section, and</text>
</subparagraph><subparagraph id="id7D26180C5AF2438F8A9ADC684FEC12DC"><enum>(B)</enum><text>before the date that is
12 months after such date.</text>
</subparagraph></paragraph><paragraph id="idA8F59AD4C3D54D87A95FD6845342DADA"><enum>(2)</enum><header>Limitation based on
amount of tax</header><text>In the case of a taxable year to which section
26(a)(2) does not apply, the credit allowed under subsection (a) for any
taxable year shall not exceed the excess of—</text>
<subparagraph id="idB7BB9BEEE47747FB999C9D272A4154F5"><enum>(A)</enum><text>the sum of the regular
tax liability (as defined in section 26(b)) plus the tax imposed by section 55,
over</text>
</subparagraph><subparagraph id="idA836511D1DD14D4F8402A11BA57FA102"><enum>(B)</enum><text>the sum of the credits
allowable under this subpart (other than this section and section 23) for the
taxable year.</text>
</subparagraph></paragraph><paragraph id="id4ED379E2CE2941D3BBD5BDCB272CC175"><enum>(3)</enum><header>One-time only</header>
<subparagraph id="id1BA25C3B979347F9BEF6234E01DF20DD"><enum>(A)</enum><header>In
general</header><text>If a credit is allowed under this section in the case of
any individual (and such individual's spouse, if married) with respect to the
purchase of any qualified principal residence, no credit shall be allowed under
this section in any taxable year with respect to the purchase of any other
qualified principal residence by such individual or a spouse of such
individual.</text>
</subparagraph><subparagraph id="id78631E989B1A444787C91FC507BA806F"><enum>(B)</enum><header>Joint
purchase</header><text>In the case of a purchase of a qualified principal
residence by 2 or more unmarried individuals or by 2 married individuals filing
separately, no credit shall be allowed under this section if a credit under
this section has been allowed to any of such individuals in any taxable year
with respect to the purchase of any other qualified principal residence.</text>
</subparagraph></paragraph></subsection><subsection id="id75919FA796374AC0B503B6371059E10F"><enum>(c)</enum><header>Qualified principal
residence</header><text>For purposes of this section—</text>
<paragraph id="id78695F17ADD84991B71CC961CD8293E4"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified principal residence</term> means
an eligible single-family residence that is purchased to be the principal
residence of the purchaser.</text>
</paragraph><paragraph id="id4E69549FF8EC47A4B1C93C9DA6880DD0"><enum>(2)</enum><header>Eligible single-family
residence</header>
<subparagraph id="idCDF6FF1EF3D64F0C974C0569CBBF13F3"><enum>(A)</enum><header>In
general</header><text>The term <term>eligible single-family residence</term>
means a single-family structure that is a residence—</text>
<clause commented="no" id="idD6557432D827469DB99C53EA0854B8A3"><enum>(i)</enum><text>upon which foreclosure
has been filed pursuant to the laws of the State in which the residence is
located, and</text>
</clause><clause commented="no" id="idFF5D6EA1612A4407840442371A849469"><enum>(ii)</enum><text>which—</text>
<subclause commented="no" id="idF6D52E585D8240A0920D8261B7E90D62"><enum>(I)</enum><text>is a new previously
unoccupied residence for which a building permit was issued and construction
began on or before September 1, 2007, or</text>
</subclause><subclause commented="no" id="id9AC3E4F46555426F99875EBCD03F388F"><enum>(II)</enum><text>was occupied as a
principal residence by the mortgagor for at least 1 year prior to the
foreclosure filing.</text>
</subclause></clause></subparagraph><subparagraph id="idF6B3C4084BA042A19637AB3A0E4A91C3"><enum>(B)</enum><header>Certification</header><text>In
the case of an eligible single-family residence described in subparagraph
(A)(ii)(I), no credit shall be allowed under this section unless the purchaser
submits a certification by the seller of such residence that such residence
meets the requirements of such subparagraph.</text>
</subparagraph></paragraph><paragraph id="id39F3CDD3A8FE4C22AE5D64A6D3056B10"><enum>(3)</enum><header>Principal
residence</header><text>The term <term>principal residence</term> has the same
meaning as when used in section 121.</text>
</paragraph></subsection><subsection id="idC21AC02ECA2447FB827347212D725F08"><enum>(d)</enum><header>Denial of double
benefit</header><text>No credit shall be allowed under this section for any
purchase for which a credit is allowed under section 1400C.</text>
</subsection><subsection id="id363C86C627D84F17B3830F4566DF0DA1"><enum>(e)</enum><header>Recapture in the case
of certain dispositions</header><text>In the event that a taxpayer—</text>
<paragraph id="id8CA6CDB6B12F42BAB37AD8281EBC4338"><enum>(1)</enum><text>disposes of the qualified
principal residence with respect to which a credit is allowed under subsection
(a), or</text>
</paragraph><paragraph id="id80C6EBCBC54A489BBCD62D40C9581654"><enum>(2)</enum><text>fails to occupy such
residence as the taxpayer's principal residence,</text>
</paragraph><continuation-text continuation-text-level="subsection">at any time within 24 months after the
date on which the taxpayer purchased such residence, then the remaining portion
of the credit allowed under subsection (a) shall be disallowed in the taxable
year during which such disposition occurred or in which the taxpayer failed to
occupy the residence as a principal residence, and in any subsequent taxable
year in which the remaining portion of the credit would, but for this
subsection, have been allowed.</continuation-text></subsection><subsection id="id9403E3DF8C514E8F95C0D9681B34FAFE"><enum>(f)</enum><header>Special rules</header>
<paragraph id="id82E97C6071AF4D3EB8C82DABE445145B"><enum>(1)</enum><header>Joint purchase</header>
<subparagraph id="id515D49E8423147ABAA52BFFF35576058"><enum>(A)</enum><header>Married individuals
filing separately</header><text>In the case of 2 married individuals filing
separately, subsection (a) shall be applied to each such individual by
substituting <quote>$3,500</quote> for <quote>$7,000</quote> in paragraph (1)
thereof.</text>
</subparagraph><subparagraph id="id18E19045B6134563B84C89B17678F05E"><enum>(B)</enum><header>Unmarried
individuals</header><text>If 2 or more individuals who are not married purchase
a qualified principal residence, the amount of the credit allowed under
subsection (a) shall be allocated among such individuals in such manner as the
Secretary may prescribe, except that the total amount of the credits allowed to
all such individuals shall not exceed $7,000.</text>
</subparagraph></paragraph><paragraph id="id6AB624887EAD468EA8C1D9DBC991FC20"><enum>(2)</enum><header>Purchase; purchase
price</header><text>Rules similar to the rules of paragraphs (2) and (3) of
section 1400C(e) (as in effect on the date of the enactment of this section)
shall apply for purposes of this section.</text>
</paragraph><paragraph id="id8B424507BEF34821923BA1731A3B891A"><enum>(3)</enum><header>Reporting
requirement</header><text>Rules similar to the rules of section 1400C(f) (as so
in effect) shall apply for purposes of this section.</text>
</paragraph></subsection><subsection id="id613F3932136A4E5EB3F9D6EB71B296BF"><enum>(g)</enum><header>Basis
adjustment</header><text>For purposes of this subtitle, if a credit is allowed
under this section with respect to the purchase of any residence, the basis of
such residence shall be reduced by the amount of the credit so
allowed.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id2AFD41B436434D5AA3181353818F823E"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="idF05F797AD65546A2BA35A4A378AE8D37"><enum>(1)</enum><text>Section 24(b)(3)(B) of
the Internal Revenue Code of 1986 is amended by striking <quote>and 25B</quote>
and inserting <quote>, 25B, and 25E</quote>.</text>
</paragraph><paragraph id="idE1C9103493DC40D09E6C8253A84E1124"><enum>(2)</enum><text>Section 25(e)(1)(C)(ii)
of such Code is amended by inserting <quote>25E,</quote> after
<quote>25D,</quote>.</text>
</paragraph><paragraph id="id2F26C898337E4D098952AFE98A35C0FF"><enum>(3)</enum><text>Section 25B(g)(2) of such
Code is amended by striking <quote>section 23</quote> and inserting
<quote>sections 23 and 25E</quote>.</text>
</paragraph><paragraph id="id6D69E15AA2324DF6BF74BEF194BDFBD7"><enum>(4)</enum><text>Section 25D(c)(2) of such
Code is amended by striking <quote>and 25B</quote> and inserting <quote>25B,
and 25E</quote>.</text>
</paragraph><paragraph id="id48118FD0B1054C1CAD07C574D3C81E10"><enum>(5)</enum><text>Section 26(a)(1) of such
Code is amended by striking <quote>and 25B</quote> and inserting <quote>25B,
and 25E</quote>.</text>
</paragraph><paragraph id="id125CEE76498741A795188A816BC4C767"><enum>(6)</enum><text>Section 904(i) of such
Code is amended by striking <quote>and 25B</quote> and inserting <quote>25B,
and 25E</quote>.</text>
</paragraph><paragraph id="idB46D20049A7541E4BA54763DC9B4813F"><enum>(7)</enum><text>Subsection (a) of section
1016 of such Code is amended by striking <quote>and</quote> at the end of
paragraph (36), by striking the period at the end of paragraph (37) and
inserting <quote>, and</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block act-name="" changed="added" id="idC8FD0A8E171F4FEFB88937F0315008B5" reported-display-style="italic" style="OLC">
<paragraph id="idBCF6BA4B3CF2426DBFEE0703AB174665"><enum>(38)</enum><text>to the extent provided
in section
25E(g).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idE3CFE5608AE64EFB9DF1438668B33C69"><enum>(8)</enum><text>Section 1400C(d)(2) of
such Code is amended by striking <quote>and 25D</quote> and inserting
<quote>25D, and 25E</quote>.</text>
</paragraph></subsection><subsection id="idB780D0F6D8CA400C8476DF30AC0FE931"><enum>(c)</enum><header>Clerical
amendment</header><text>The table of sections for subpart A of part IV of
subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by
inserting after the item relating to section 25D the following new item:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idBE1241B820E24A95B61D17DF0C605248" reported-display-style="italic" style="OLC">
<toc changed="added" reported-display-style="italic">
<toc-entry level="section">Sec. 25E. Credit for certain home
purchases.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id068F2B3F39B24ACF9EB3C8879DA4BB78"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to purchases
in taxable years ending after the date of the enactment of this Act.</text>
</subsection><subsection id="id43FCB605AFE645FF83F08FD31D396301"><enum>(e)</enum><header>Application of EGTRRA
sunset</header><text>The amendment made by subsection (b)(1) shall be subject
to title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 in
the same manner as the provisions of such Act to which such amendment
relates.</text>
</subsection></section><section display-inline="no-display-inline" id="H6C1D539AF1E7427F8BC22208CEB664C" section-type="subsequent-section"><enum>604.</enum><header>Additional standard
deduction for real property taxes for nonitemizers</header>
<subsection id="H65F9CEDAB86040E296FEDB628D59725"><enum>(a)</enum><header>In
general</header><text><external-xref legal-doc="usc" parsable-cite="usc/26/63">Section 63(c)(1)</external-xref> of the Internal Revenue Code of 1986
(defining standard deduction) is amended by striking <quote>and</quote> at the
end of subparagraph (A), by striking the period at the end of subparagraph (B)
and inserting <quote>, and</quote>, and by adding at the end the following new
subparagraph:</text>
<quoted-block changed="added" id="H1748A55C2338441B8660E3B28D14600" reported-display-style="italic">
<subparagraph id="H78A8B708983B42B1B7EBC2043EDB279"><enum>(C)</enum><text>in the case of any
taxable year beginning in 2008, the real property tax
deduction.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H4F417B48DF144285B285E4CB57924300"><enum>(b)</enum><header>Definition</header><text>Section
63(c) of the Internal Revenue Code of 1986 is amended by adding at the end the
following new paragraph:</text>
<quoted-block changed="added" id="H384A8EF551BD49CAAD7DB35774746BAD" reported-display-style="italic">
<paragraph id="H5FF6486E547149F3925B5099E58B3943"><enum>(8)</enum><header>Real property tax
deduction</header>
<subparagraph id="id56BF7E8C413440E68B00E4079AF5ADB8"><enum>(A)</enum><header>In
general</header><text>For purposes of paragraph (1), the real property tax
deduction is so much of the amount of the eligible State and local real
property taxes paid or accrued by the taxpayer during the taxable year which do
not exceed $500 ($1,000 in the case of a joint return).</text>
</subparagraph><subparagraph id="idCB5372FA88CB41D9B2D5694349BB2331"><enum>(B)</enum><header>Eligible State and
local real property taxes</header><text>For purposes of subparagraph (A), the
term <term>eligible State and local real property taxes</term> means State and
local real property taxes (within the meaning of section 164), but only if the
rate of tax for all residential real property taxes in the jurisdiction has not
been increased at any time after April 2, 2008, and before January 1,
2009.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H41E1689F65824560BDAC5186087B3557"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2007.</text>
</subsection></section><section id="idF89CCCFE327E41798DB84F05EEA6B694"><enum>605.</enum><header>Election to accelerate
AMT and R and D credits in lieu of bonus depreciation</header>
<subsection id="idFACE3A0D63B64958B70A0B8766F6C2BE"><enum>(a)</enum><header>In
general</header><text>Section 168(k), as amended by this Act, is amended by
adding at the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id87A0F04055634B719B3684C47E82BC42" reported-display-style="italic" style="OLC">
<paragraph id="id0839B039A65D408780626BDFA26DBA73"><enum>(5)</enum><header>Election to accelerate
AMT and R and D credits in lieu of bonus depreciation</header>
<subparagraph id="id9E6587149880482C87185FE68E2B557A"><enum>(A)</enum><header>In
general</header><text>If a corporation which is an eligible taxpayer (within
the meaning of paragraph (4)) for purposes of this subsection elects to have
this paragraph apply—</text>
<clause id="id047357ACD812480BABCB6D76451BFC41"><enum>(i)</enum><text>no additional
depreciation shall be allowed under paragraph (1) for any qualified property
placed in service during any taxable year to which paragraph (1) would
otherwise apply, and</text>
</clause><clause id="idE53F7CD6298A4CA2B4D070A909C40C7E"><enum>(ii)</enum><text>the limitations
described in subparagraph (B) for such taxable year shall be increased by an
aggregate amount not in excess of the bonus depreciation amount for such
taxable year.</text>
</clause></subparagraph><subparagraph id="idC4085FCA782C426A9569315A28771BC7"><enum>(B)</enum><header>Limitations to be
increased</header><text>The limitations described in this subparagraph
are—</text>
<clause id="idC91083F32DC143C9BA6CDD7709AC3708"><enum>(i)</enum><text>the limitation under
section 38(c), and</text>
</clause><clause id="idE8E201036C9A4914B869597EA11115BE"><enum>(ii)</enum><text>the limitation under
section 53(c).</text>
</clause></subparagraph><subparagraph id="id9E9872381BB44EB29BA0EB5D81F010FA"><enum>(C)</enum><header>Bonus depreciation
amount</header><text>For purposes of this paragraph—</text>
<clause id="id85BC8C3ABAE24BB59CDB702A1746DBDF"><enum>(i)</enum><header>In
general</header><text>The bonus depreciation amount for any applicable taxable
year is an amount equal to the product of 20 percent and the excess (if any)
of—</text>
<subclause id="id06C9C32EE8FC431EAF5F2667C3A2E54A"><enum>(I)</enum><text>the aggregate amount of
depreciation which would be determined under this section for property placed
in service during the taxable year if no election under this paragraph were
made, over</text>
</subclause><subclause id="id4440E10BF61C470CB96FE714B8927EBB"><enum>(II)</enum><text>the aggregate amount of
depreciation allowable under this section for property placed in service during
the taxable year.</text>
</subclause><continuation-text continuation-text-level="clause">In the case of property which is a
passenger aircraft, the amount determined under subclause (I) shall be
calculated without regard to the written binding contract limitation under
paragraph (2)(A)(iii)(I).</continuation-text></clause><clause id="id6CDE370A40CB4E788ECF19B5AE0C1819"><enum>(ii)</enum><header>Eligible qualified
property</header><text>For purposes of clause (i), the term <term>eligible
qualified property</term> means qualified property under paragraph (2), except
that in applying paragraph (2) for purposes of this clause—</text>
<subclause id="id7C22A5EB7E8D44A6AA24EA5B983EDCA8"><enum>(I)</enum><text><quote>March 31,
2008</quote> shall be substituted for <quote>December 31, 2007</quote> each
place it appears in subparagraph (A) and clauses (i) and (ii) of subparagraph
(E) thereof,</text>
</subclause><subclause id="id53A6D86F35E64B54BB5B24E9ADF6107F"><enum>(II)</enum><text>only adjusted basis
attributable to manufacture, construction, or production after March 31, 2008,
and before January 1, 2009, shall be taken into account under subparagraph
(B)(ii) thereof, and</text>
</subclause><subclause id="idC2E830186E51490E87F3A2D2435239D1"><enum>(III)</enum><text>in the case of property
which is a passenger aircraft, the written binding contract limitation under
subparagraph (A)(iii)(I) thereof shall not apply.</text>
</subclause></clause><clause id="id29D0EC88735048508953A813A03C7156"><enum>(iii)</enum><header>Maximum
amount</header><text>The bonus depreciation amount for any applicable taxable
year shall not exceed the applicable limitation under clause (iv), reduced (but
not below zero) by the bonus depreciation amount for any preceding taxable
year.</text>
</clause><clause id="id7866A876598B42EC8A5B313AB62A78EB"><enum>(iv)</enum><header>Applicable
limitation</header><text>For purposes of clause (iii), the term
<term>applicable limitation</term> means, with respect to any eligible
taxpayer, the lesser of—</text>
<subclause id="id800F17E3ADE54AC292617F133B5CF21B"><enum>(I)</enum><text>$40,000,000, or</text>
</subclause><subclause id="id01E17E4FFB9F4FE3BB8F9DED0394DD53"><enum>(II)</enum><text>10 percent of the sum of
the amounts determined with respect to the eligible taxpayer under clauses (ii)
and (iii) of subparagraph (D).</text>
</subclause></clause><clause id="idB6AEA04181874727BCB7A70F9A20C188"><enum>(v)</enum><header>Aggregation
rule</header><text>All corporations which are treated as a single employer
under section 52(a) shall be treated as 1 taxpayer for purposes of applying the
limitation under this subparagraph and determining the applicable limitation
under clause (iv).</text>
</clause></subparagraph><subparagraph id="id877C23C1919E4BC6AD162AFC197F9141"><enum>(D)</enum><header>Allocation of bonus
depreciation amounts</header>
<clause id="idC0EEA95C0E9945B397146644AB74F453"><enum>(i)</enum><header>In
general</header><text>Subject to clauses (ii) and (iii), the taxpayer shall, at
such time and in such manner as the Secretary may prescribe, specify the
portion (if any) of the bonus depreciation amount which is to be allocated to
each of the limitations described in subparagraph (B).</text>
</clause><clause id="id341725B414AB477585840EE44966A894"><enum>(ii)</enum><header>Business credit
limitation</header><text>The portion of the bonus depreciation amount allocated
to the limitation described in subparagraph (B)(i) shall not exceed an amount
equal to the portion of the credit allowable under section 38 for the taxable
year which is allocable to business credit carryforwards to such taxable year
which are—</text>
<subclause id="id0714E06C46634738B5EB78F139F55DC3"><enum>(I)</enum><text>from taxable years
beginning before January 1, 2006, and</text>
</subclause><subclause id="id604C1A7E941C42D0AB64457BCAF4CCC6"><enum>(II)</enum><text>properly allocable
(determined under the rules of section 38(d)) to the research credit determined
under section 41(a).</text>
</subclause></clause><clause id="idD988EFD0897D41B6A4AE3A9D46EB96FC"><enum>(iii)</enum><header>Alternative minimum
tax credit limitation</header><text>The portion of the bonus depreciation
amount allocated to the limitation described in subparagraph (B)(ii) shall not
exceed an amount equal to the portion of the minimum tax credit allowable under
section 53 for the taxable year which is allocable to the adjusted minimum tax
imposed for taxable years beginning before January 1, 2006.</text>
</clause></subparagraph><subparagraph id="id75E17BE3440147E88937346FBFF269AE"><enum>(E)</enum><header>Credit
refundable</header><text>Any aggregate increases in the credits allowed under
section 38 or 53 by reason of this paragraph shall, for purposes of this title,
be treated as a credit allowed to the taxpayer under subpart C of part IV of
subchapter A.</text>
</subparagraph><subparagraph id="idCE3040A9CDDA49DF91BA5A63979E526D"><enum>(F)</enum><header>Other rules</header>
<clause id="id7D6ED7C3CCD940AC990266688842298E"><enum>(i)</enum><header>Election</header><text>Any
election under this paragraph (including any allocation under subparagraph (D))
may be revoked only with the consent of the Secretary.</text>
</clause><clause id="id158C2242F0E944C0B14B1F560B7749E6"><enum>(ii)</enum><header>Deduction allowed in
computing minimum tax</header><text>Notwithstanding this paragraph, paragraph
(2)(G) shall apply with respect to the deduction computed under this section
(after application of this paragraph) with respect to property placed in
service during any applicable taxable
year.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id38FEFF6F086F4775AB2E5974C6F0B558"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after December 31, 2007, in taxable years ending after such
date.</text>
</subsection></section><section id="idC93F53DD1DBF46698380036CAEE8D4D2" section-type="subsequent-section"><enum>606.</enum><header>Use of amended
income tax returns to take into account receipt of certain hurricane-related
casualty loss grants by disallowing previously taken casualty loss
deductions</header>
<subsection id="id49CA5AC41D2D42D3AD4C57A8B1752BAE"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of the Internal Revenue Code of 1986, if a taxpayer claims a
deduction for any taxable year with respect to a casualty loss to a personal
residence (within the meaning of section 121 of such Code) resulting from
Hurricane Katrina, Hurricane Rita, or Hurricane Wilma and in a subsequent
taxable year receives a grant under <external-xref legal-doc="public-law" parsable-cite="pl/109/148">Public Law 109–148</external-xref>, 109–234, or 110–116 as
reimbursement for such loss, such taxpayer may elect to file an amended income
tax return for the taxable year in which such deduction was allowed and
disallow such deduction. If elected, such amended return must be filed not
later than the due date for filing the tax return for the taxable year in which
the taxpayer receives such reimbursement or the date that is 4 months after the
date of the enactment of this Act, whichever is later. Any increase in Federal
income tax resulting from such disallowance if such amended return is
filed—</text>
<paragraph id="idA4BE51F3164F48AE89C709547CE88146"><enum>(1)</enum><text display-inline="yes-display-inline">shall be subject to interest on the
underpaid tax for one year at the underpayment rate determined under section
6621(a)(2) of such Code; and</text>
</paragraph><paragraph id="id78B11F8F4C424B8FB8EECDEA5B6913D1"><enum>(2)</enum><text display-inline="yes-display-inline">shall not be subject to any penalty under
such Code.</text>
</paragraph></subsection><subsection id="id2F406D1907204057810FB0A59F04C899"><enum>(b)</enum><header>Emergency
designation</header><text>For purposes of Senate enforcement, all provisions of
this section are designated as emergency requirements and necessary to meet
emergency needs pursuant to section 204 of S. Con. Res. 21 (110th Congress),
the concurrent resolution on the budget for fiscal year 2008.</text>
</subsection></section><section id="H785F3E4DDAA64E8C0064E8A549691D62" section-type="subsequent-section"><enum>607.</enum><header>Waiver of deadline
on construction of GO Zone property eligible for bonus depreciation</header>
<subsection id="H296A0604C944475D9DA47EBAF5FC3BB"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subparagraph (B) of
<external-xref legal-doc="usc" parsable-cite="usc/26/1400N">section 1400N(d)(3)</external-xref> of the Internal Revenue Code of 1986 is amended to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H4DEEEAE7864E483DAAEB6F07431420BC" reported-display-style="italic" style="OLC">
<subparagraph id="HD2A9B363BD5949558500D021BD3ED3F"><enum>(B)</enum><text display-inline="yes-display-inline">without regard to <quote>and before January
1, 2009</quote> in clause (i)
thereof,</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H3BCA5B3B58724D1E95FE107058EF34FA"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to property
placed in service after December 31, 2007.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idBEA12B318D4B4388AE79DA20534681AD"><enum>(c)</enum><header>Emergency
designation</header><text>For purposes of Senate enforcement, all provisions of
this section are designated as emergency requirements and necessary to meet
emergency needs pursuant to section 204 of S. Con. Res. 21 (110th Congress),
the concurrent resolution on the budget for fiscal year 2008.</text>
</subsection></section><section id="id082B155A69E74BB9BAAF9809EF00F746"><enum>608.</enum><header>Temporary tax relief
for Kiowa County, Kansas and surrounding area</header>
<subsection id="idF5022B1422A24C7EB06B06E3298DE1EA"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The following
provisions of or relating to the Internal Revenue Code of 1986 shall apply, in
addition to the areas described in such provisions, to an area with respect to
which a major disaster has been declared by the President under section 401 of
the Robert T. Stafford Disaster Relief and Emergency Assistance Act
(FEMA–1699–DR, as in effect on the date of the enactment of this Act) by reason
of severe storms and tornados beginning on May 4, 2007, and determined by the
President to warrant individual or individual and public assistance from the
Federal Government under such Act with respect to damages attributed to such
storms and tornados:</text>
<paragraph id="id70E710D0C56C47D9BECD7A19B1470F5D"><enum>(1)</enum><header>Suspension of certain
limitations on personal casualty losses</header><text>Section 1400S(b)(1) of
the Internal Revenue Code of 1986, by substituting <quote>May 4, 2007</quote>
for <quote>August 25, 2005</quote>.</text>
</paragraph><paragraph id="id738A007FC8FF47458067BDED874C1FEA"><enum>(2)</enum><header>Extension of
replacement period for nonrecognition of gain</header><text>Section 405 of the
Katrina Emergency Tax Relief Act of 2005, by substituting <quote>on or after
May 4, 2007, by reason of the May 4, 2007, storms and tornados</quote> for
<quote>on or after August 25, 2005, by reason of Hurricane
Katrina</quote>.</text>
</paragraph><paragraph id="idD168A8CFF3D74B20BD9B3615C05F9A3D"><enum>(3)</enum><header>Employee retention
credit for employers affected by May 4 storms and
tornados</header><text>Section 1400R(a) of the Internal Revenue Code of
1986—</text>
<subparagraph id="idA04F14AFEAFF432687CEF4E997A8A244"><enum>(A)</enum><text>by substituting
<quote>May 4, 2007</quote> for <quote>August 28, 2005</quote> each place it
appears,</text>
</subparagraph><subparagraph id="id4D0628E143E74994B187F14F5336A3EC"><enum>(B)</enum><text>by substituting
<quote>January 1, 2008</quote> for <quote>January 1, 2006</quote> both places
it appears, and</text>
</subparagraph><subparagraph id="id3EFB7FEB0C594B539EA5C00640C6BA68"><enum>(C)</enum><text>only with respect to
eligible employers who employed an average of not more than 200 employees on
business days during the taxable year before May 4, 2007.</text>
</subparagraph></paragraph><paragraph id="id641E18C9B30E42529FEF0E0F0F44767E"><enum>(4)</enum><header>Special allowance for
certain property acquired on or after May 5, 2007</header><text>Section
1400N(d) of such Code—</text>
<subparagraph id="id5AE40ACB5DEF4FE08023C344CE307C7E"><enum>(A)</enum><text>by substituting
<quote>qualified Recovery Assistance property</quote> for <quote>qualified Gulf
Opportunity Zone property</quote> each place it appears,</text>
</subparagraph><subparagraph id="id898B4B51B20B42E4A9FC0ABD769BE04C"><enum>(B)</enum><text>by substituting
<quote>May 5, 2007</quote> for <quote>August 28, 2005</quote> each place it
appears,</text>
</subparagraph><subparagraph id="idA6825B6E23C14D8A9CC19CE5019F873F"><enum>(C)</enum><text>by substituting
<quote>December 31, 2008</quote> for <quote>December 31, 2007</quote> in
paragraph (2)(A)(v),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD4D07CD2D4A247C2B093A005F6894F0D"><enum>(D)</enum><text display-inline="yes-display-inline">by substituting <quote>December 31,
2009</quote> for <quote>December 31, 2008</quote> in paragraph
(2)(A)(v),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id90FCAB2A403D47C582CE88B25CED7A2D"><enum>(E)</enum><text display-inline="yes-display-inline">by substituting <quote>May 4, 2007</quote>
for <quote>August 27, 2005</quote> in paragraph (3)(A),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4145F374758448D28068BDC5544BEB0D"><enum>(F)</enum><text display-inline="yes-display-inline">by substituting <quote>January 1,
2009</quote> for <quote>January 1, 2008</quote> in paragraph (3)(B), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5980E67A17CB4DF5ACE04CDFEF10D2B3"><enum>(G)</enum><text>determined without regard
to paragraph (6) thereof.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id31C0E18ED49241799AA3A07B8197BCEB"><enum>(5)</enum><header>Increase in expensing
under section 179</header><text>Section 1400N(e) of such Code, by substituting
<quote>qualified section 179 Recovery Assistance property</quote> for
<quote>qualified section 179 Gulf Opportunity Zone property</quote> each place
it appears.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idDF736B14ACA84D4294CC9D26807C8FBF"><enum>(6)</enum><header>Expensing for certain
demolition and clean-up costs</header><text>Section 1400N(f) of such
Code—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idB9EDF25A3BEC4A2F9EF835C8185C17DB"><enum>(A)</enum><text>by substituting
<quote>qualified Recovery Assistance clean-up cost</quote> for <quote>qualified
Gulf Opportunity Zone clean-up cost</quote> each place it appears, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8DA503B050654481A689CAFDE875398D"><enum>(B)</enum><text>by substituting
<quote>beginning on May 4, 2007, and ending on December 31, 2009</quote> for
<quote>beginning on August 28, 2005, and ending on December 31, 2007</quote> in
paragraph (2) thereof.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF257E5E7AC9A441483C348B46276E503"><enum>(7)</enum><header>Treatment of public
utility property disaster losses</header><text>Section 1400N(o) of such
Code.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id63E9042D3E504F1B95BAE36FD8138BD6"><enum>(8)</enum><header>Treatment of net
operating losses attributable to storm losses</header><text>Section 1400N(k) of
such Code—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id25EB36396F7847FCB3ADBF1029D340AD"><enum>(A)</enum><text>by substituting
<quote>qualified Recovery Assistance loss</quote> for <quote>qualified Gulf
Opportunity Zone loss</quote> each place it appears,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idD4473447983D4823B162ABA8C38672D3"><enum>(B)</enum><text>by substituting
<quote>after May 3, 2007, and before on January 1, 2010</quote> for
<quote>after August 27, 2005, and before January 1, 2008</quote> each place it
appears,</text>
</subparagraph><subparagraph id="idCD6287959C9C451E8B2460800A89ECB5"><enum>(C)</enum><text>by substituting
<quote>May 4, 2007</quote> for <quote>August 28, 2005</quote> in paragraph
(2)(B)(ii)(I) thereof,</text>
</subparagraph><subparagraph id="id74ADDE0B3D29444595BA07EB11E6D7F4"><enum>(D)</enum><text>by substituting
<quote>qualified Recovery Assistance property</quote> for <quote>qualified Gulf
Opportunity Zone property</quote> in paragraph (2)(B)(iv) thereof, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF966014AF07B4B6B832CE2BDF59989F5"><enum>(E)</enum><text>by substituting
<quote>qualified Recovery Assistance casualty loss</quote> for <quote>qualified
Gulf Opportunity Zone casualty loss</quote> each place it appears.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id789045BC6597447286BCEAE29E4F2BEA"><enum>(9)</enum><header>Treatment of
representations regarding income eligibility for purposes of qualified rental
project requirements</header><text>Section 1400N(n) of such Code.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1DFB53497A16494683E277BAB2B4B8BF"><enum>(10)</enum><header>Special rules for use
of retirement funds</header><text>Section 1400Q of such Code—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id24732026516A426D917078356A11CF4F"><enum>(A)</enum><text>by substituting
<quote>qualified Recovery Assistance distribution</quote> for <quote>qualified
hurricane distribution</quote> each place it appears,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id498B2339A0FE4435BA2C12A39FD85AB0"><enum>(B)</enum><text>by substituting <quote>on
or after May 4, 2007, and before January 1, 2009</quote> for <quote>on or after
August 25, 2005, and before January 1, 2007</quote> in subsection
(a)(4)(A)(i),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1ACF2671B8814210838B13EF3DB3B550"><enum>(C)</enum><text>by substituting
<quote>qualified storm distribution</quote> for <quote>qualified Katrina
distribution</quote> each place it appears,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id42796370358C4CFDB29DE8F4E04922A7"><enum>(D)</enum><text>by substituting
<quote>after November 4, 2006, and before May 5, 2007</quote> for <quote>after
February 28, 2005, and before August 29, 2005</quote> in subsection
(b)(2)(B)(ii),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idEB446F7F51A8428280DCC69C56D770C7"><enum>(E)</enum><text display-inline="yes-display-inline">by substituting <quote>beginning on May 4,
2007, and ending on November 5, 2007</quote> for <quote>beginning on August 25,
2005, and ending on February 28, 2006</quote> in subsection (b)(3)(A),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id812ED1671E3E49D5853A225A7A678194"><enum>(F)</enum><text>by substituting
<quote>qualified storm individual</quote> for <quote>qualified Hurricane
Katrina individual</quote> each place it appears,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id54F8961A06E446B59F93FB911C083430"><enum>(G)</enum><text>by substituting
<quote>December 31, 2007</quote> for <quote>December 31, 2006</quote> in
subsection (c)(2)(A),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id31A48380D0BD45D48582D27A0FB330D1"><enum>(H)</enum><text>by substituting
<quote>beginning on June 4, 2007, and ending on December 31, 2007</quote> for
<quote>beginning on September 24, 2005, and ending on December 31, 2006</quote>
in subsection (c)(4)(A)(i),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4179A539278E450FAA7092EB4BC01DE1"><enum>(I)</enum><text>by substituting
<quote>May 4, 2007</quote> for <quote>August 25, 2005</quote> in subsection
(c)(4)(A)(ii), and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id6275D76B2695464D996C726F29425887"><enum>(J)</enum><text>by substituting
<quote>January 1, 2008</quote> for <quote>January 1, 2007</quote> in subsection
(d)(2)(A)(ii).</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idFFF19023D0CA417A95050392436D8E71"><enum>(b)</enum><header>Emergency
designation</header><text>For purposes of Senate enforcement, all provisions of
this section are designated as emergency requirements and necessary to meet
emergency needs pursuant to section 204 of S. Con. Res. 21 (110th Congress),
the concurrent resolution on the budget for fiscal year 2008.</text>
</subsection></section><enum>VII</enum><header>Emergency
designation</header>
<section commented="no" display-inline="no-display-inline" id="idFF3526960CDF40639715CDCF81F639AA" section-type="subsequent-section"><enum>701.</enum><header>Emergency
designation</header><text display-inline="no-display-inline">For purposes of
Senate enforcement, all provisions of this Act are designated as emergency
requirements and necessary to meet emergency needs pursuant to section 204 of
S. Con. Res. 21 (110th Congress), the concurrent resolution on the budget for
fiscal year 2008.</text>
</section><enum>VIII</enum><header>REIT investment
diversification and empowerment</header>
<section display-inline="no-display-inline" id="HF3680404336E473A9F5ED215A981CEDB" section-type="subsequent-section"><enum>801.</enum><header>Short title;
amendment of 1986 Code</header>
<subsection display-inline="no-display-inline" id="id0F306937CC594926B91A3D1868E4769F"><enum>(a)</enum><header>Short
title</header><text display-inline="yes-display-inline">This title may be cited
as the <quote><short-title>REIT Investment Diversification
and Empowerment Act of 2008</short-title></quote>.</text>
</subsection><subsection id="HE504E72C963D4128A08989D9CDDF6F45"><enum>(b)</enum><header>Amendment of 1986
Code</header><text display-inline="yes-display-inline">Except as otherwise
expressly provided, whenever in this title an amendment or repeal is expressed
in terms of an amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or other provision of the
Internal Revenue Code of 1986.</text>
</subsection></section><subtitle id="H3C10AD6384CD467EBC23D702473B3933"><enum>A</enum><header>Taxable REIT
subsidiaries</header>
<section id="HDEF7E9B2E0E147B99EED98180227BA87"><enum>811.</enum><header>Conforming taxable
REIT subsidiary asset test</header><text display-inline="no-display-inline">Section 856(c)(4)(B)(ii) is amended by
striking <quote>20 percent</quote> and inserting <quote>25
percent</quote>.</text>
</section></subtitle><subtitle id="H53F0BA0528AA4656882EDEF2202DE700"><enum>B</enum><header>Dealer sales</header>
<section id="HCEF8F9F688D6472E9179230857068D07"><enum>821.</enum><header>Holding period under
safe harbor</header><text display-inline="no-display-inline">Section 857(b)(6)
(relating to income from prohibited transactions) is amended—</text>
<paragraph id="H669BC4808C2A424C00403900EC9FC2F7"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>4 years</quote> in
subparagraphs (C)(i), (C)(iv), and (D)(i) and inserting <quote>2
years</quote>,</text>
</paragraph><paragraph id="H2EE1686A5CFA49ABA3B4AD1CF2F93287"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>4-year period</quote> in
subparagraphs (C)(ii), (D)(ii), and (D)(iii) and inserting <quote>2-year
period</quote>, and</text>
</paragraph><paragraph id="H95CDE2C706134D659E092E42ED4E2C4"><enum>(3)</enum><text display-inline="yes-display-inline">by striking <quote>real estate
asset</quote>and all that follows through <quote>if</quote> in the matter
preceding clause (i) of subparagraphs (C) and (D), respectively, and inserting
<quote>real estate asset (as defined in section 856(c)(5)(B)) and which is
described in section 1221(a)(1) if</quote>.</text>
</paragraph></section><section id="H33C56AA3A6E248998D9E25CA748234F2"><enum>822.</enum><header>Determining value of
sales under safe harbor</header><text display-inline="no-display-inline">Section 857(b)(6) is amended—</text>
<paragraph id="id613F873BD3974386AF499CBFC1E3EB8F"><enum>(1)</enum><text display-inline="yes-display-inline">by striking the semicolon at the end of
subparagraph (C)(iii) and inserting <quote>, or (III) the fair market value of
property (other than sales of foreclosure property or sales to which section
1033 applies) sold during the taxable year does not exceed 10 percent of the
fair market value of all of the assets of the trust as of the beginning of the
taxable year;</quote>, and</text>
</paragraph><paragraph id="id0A25FCE8803040329198A192747E08BE"><enum>(2)</enum><text display-inline="yes-display-inline">by adding <quote>or</quote> at the end of
subclause (II) of subparagraph (D)(iv) and by adding at the end of such
subparagraph the following new subclause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id145068DF281A445E821EF807E0696427" reported-display-style="italic" style="OLC">
<subclause id="idE2CF61599F46428B91B3751EDACC6207" indent="up1"><enum>(III)</enum><text>the
fair market value of property (other than sales of foreclosure property or
sales to which section 1033 applies) sold during the taxable year does not
exceed 10 percent of the fair market value of all of the assets of the trust as
of the beginning of the taxable
year,</text>
</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section></subtitle><subtitle id="H96B35D0D123B4EA4AB00C7E6FB2F56"><enum>C</enum><header>Health care
REITs</header>
<section id="H26C3AB1ADC09498A8F14064C5773992B"><enum>831.</enum><header>Conformity for health
care facilities</header>
<subsection id="HDE1AF690C0E6427988758415C300775D"><enum>(a)</enum><header>Related party
rentals</header><text display-inline="yes-display-inline">Subparagraph (B) of
section 856(d)(8) (relating to special rule for taxable REIT subsidiaries) is
amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id4561D4A7A5634F02A558AA70AB1BC59F" reported-display-style="italic" style="OLC">
<subparagraph id="HF64B5F349B2F45D696BF27BE4D002D6E"><enum>(B)</enum><header>Exception for certain
lodging facilities and health care property</header><text display-inline="yes-display-inline">The requirements of this subparagraph are
met with respect to an interest in real property which is a qualified lodging
facility (as defined in paragraph (9)(D)) or a qualified health care property
(as defined in subsection (e)(6)(D)(i)) leased by the trust to a taxable REIT
subsidiary of the trust if the property is operated on behalf of such
subsidiary by a person who is an eligible independent contractor. For purposes
of this section, a taxable REIT subsidiary is not considered to be operating or
managing a qualified health care property or qualified lodging facility solely
because it—</text>
<clause id="idB20EABBFC94942A699E38627F3CDA5EC"><enum>(i)</enum><text display-inline="yes-display-inline">directly or indirectly possesses a license,
permit, or similar instrument enabling it to do so, or</text>
</clause><clause id="id12E1B4CD563640038042A88940B7759E"><enum>(ii)</enum><text display-inline="yes-display-inline">employs individuals working at such
property or facility located outside the United States, but only if an eligible
independent contractor is responsible for the daily supervision and direction
of such individuals on behalf of the taxable REIT subsidiary pursuant to a
management agreement or similar service
contract.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H8226ED3EAABE402082EE365B4D8602AB"><enum>(b)</enum><header>Eligible independent
contractor</header><text display-inline="yes-display-inline">Subparagraphs (A)
and (B) of section 856(d)(9) (relating to eligible independent contractor) are
amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HB6421A9DA169477C8F804859004942B2" reported-display-style="italic" style="OLC">
<subparagraph id="HE05973625A1840B7AA3B61E62607A9AA"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The term
<term>eligible independent contractor</term> means, with respect to any
qualified lodging facility or qualified health care property (as defined in
subsection (e)(6)(D)(i)), any independent contractor if, at the time such
contractor enters into a management agreement or other similar service contract
with the taxable REIT subsidiary to operate such qualified lodging facility or
qualified health care property, such contractor (or any related person) is
actively engaged in the trade or business of operating qualified lodging
facilities or qualified health care properties, respectively, for any person
who is not a related person with respect to the real estate investment trust or
the taxable REIT subsidiary.</text>
</subparagraph><subparagraph id="HB23A46017C1344BF911D5129141E89E9"><enum>(B)</enum><header>Special
rules</header><text display-inline="yes-display-inline">Solely for purposes of
this paragraph and paragraph (8)(B), a person shall not fail to be treated as
an independent contractor with respect to any qualified lodging facility or
qualified health care property (as so defined) by reason of the
following:</text>
<clause id="HB80B288C58AF4C0A9DB521AFEF338707"><enum>(i)</enum><text display-inline="yes-display-inline">The taxable REIT subsidiary bears the
expenses for the operation of such qualified lodging facility or qualified
health care property pursuant to the management agreement or other similar
service contract.</text>
</clause><clause id="H85977F16A48D4DDDB7F95B282FB4500"><enum>(ii)</enum><text display-inline="yes-display-inline">The taxable REIT subsidiary receives the
revenues from the operation of such qualified lodging facility or qualified
health care property, net of expenses for such operation and fees payable to
the operator pursuant to such agreement or contract.</text>
</clause><clause id="H9A6FB77D58B745B2946CD405BEC3F269"><enum>(iii)</enum><text display-inline="yes-display-inline">The real estate investment trust receives
income from such person with respect to another property that is attributable
to a lease of such other property to such person that was in effect as of the
later of—</text>
<subclause id="H8B344B443679422F8F846C11D95DBB38"><enum>(I)</enum><text display-inline="yes-display-inline">January 1, 1999, or</text>
</subclause><subclause id="HE46133000BB543F8A84F099306B45406"><enum>(II)</enum><text display-inline="yes-display-inline">the earliest date that any taxable REIT
subsidiary of such trust entered into a management agreement or other similar
service contract with such person with respect to such qualified lodging
facility or qualified health care
property.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HD3A6D869823E4A3AAA98E965D0997861"><enum>(c)</enum><header>Taxable REIT
subsidiaries</header><text>The last sentence of section 856(l)(3) is
amended—</text>
<paragraph id="H0CF9AF385FDF4B87AE00E4E00489292"><enum>(1)</enum><text>by inserting <quote>or a
health care facility</quote> after <quote>a lodging facility</quote>,
and</text>
</paragraph><paragraph id="H0F4FD34DFC7E4FF6007498DF7E9B10AA"><enum>(2)</enum><text>by inserting <quote>or
health care facility</quote> after <quote>such lodging facility</quote>.</text>
</paragraph></subsection></section></subtitle><subtitle id="H06118C69B96943F8981021A6F3001470"><enum>D</enum><header>Effective dates and
sunset</header>
<section id="HB73A95C3DF284923807BFC4BD9794B85"><enum>841</enum><header>Effective dates and
sunset</header>
<subsection id="HFA006F4DE2964F719FC25D2741A0B582"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as otherwise
provided in this section, the amendments made by this title shall apply to
taxable years beginning after the date of the enactment of this Act.</text>
</subsection><subsection id="HE8A85EA9B3A9476E9D7860F723E71582"><enum>(b)</enum><header>REIT income
tests</header>
<paragraph id="HCD80F21EAF3F48D7956BDEE0AB1FBB84"><enum>(1)</enum><text display-inline="yes-display-inline">The amendment made by section 801(a) and
(b) shall apply to gains and items of income recognized after the date of the
enactment of this Act.</text>
</paragraph><paragraph id="H23CC41C0EC574C5598C39C25C3ECCCA"><enum>(2)</enum><text>The amendment made by
section 801(c) shall apply to transactions entered into after the date of the
enactment of this Act.</text>
</paragraph><paragraph id="HFD90C72EA8CC4F2D830000BB6027E29B"><enum>(3)</enum><text>The amendment made by
section 801(d) shall apply after the date of the enactment of this Act.</text>
</paragraph></subsection><subsection id="HA7CDF3AD556443E1A78D78A5CDCAEAB"><enum>(c)</enum><header>Conforming foreign
currency revisions</header>
<paragraph id="H7FC2FAA14C3C4B2FB465B9CC76FF8C99"><enum>(1)</enum><text>The amendment made by
section 803(a) shall apply to gains recognized after the date of the enactment
of this Act.</text>
</paragraph><paragraph id="H80FD5D1954844F29ADD88C6814C14586"><enum>(2)</enum><text>The amendment made by
section 803(b) shall apply to gains and deductions recognized after the date of
the enactment of this Act.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H925C3C72A81F41F1A2B4FC05BD2D419"><enum>(d)</enum><header>Dealer
sales</header><text>The amendments made by subtitle C shall apply to sales made
after the date of the enactment of this Act.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id5228824D1F504BB187FCA8B6C11FAB21"><enum>(e)</enum><header>Sunset</header><text>All
amendments made by this title shall not apply to taxable years beginning after
the date which is 5 years after the date of the enactment of this Act. The
Internal Revenue Code of 1986 shall be applied and administered to taxable
years described in the preceding sentence as if the amendments so described had
never been enacted.</text>
</subsection></section></subtitle><enum>IX</enum><header>VETERANS HOUSING
MATTERS</header>
<section id="id793B62CFE6E045168A8644D1E37E84B8"><enum>901.</enum><header>Home improvements and
structural alterations for totally disabled members of the Armed Forces before
discharge or release from the Armed Forces</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/38/1717">Section 1717</external-xref> of title 38, United States
Code, is amended by adding at the end the following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idC17987B6198C473E9DB2459EE0F0E579" reported-display-style="italic" style="OLC">
<subsection id="id1B64528C7A2E44828C05280D90207E54"><enum>(d)</enum><paragraph commented="no" display-inline="yes-display-inline" id="idD50AD331F9D049BEB11D8A7BCDC5D9D1"><enum>(1)</enum><text>In the case of a member
of the Armed Forces who, as determined by the Secretary, has a disability
permanent in nature incurred or aggravated in the line of duty in the active
military, naval, or air service, the Secretary may furnish improvements and
structural alterations for such member for such disability or as otherwise
described in subsection (a)(2) while such member is hospitalized or receiving
outpatient medical care, services, or treatment for such disability if the
Secretary determines that such member is likely to be discharged or released
from the Armed Forces for such disability.</text>
</paragraph><paragraph changed="added" commented="no" display-inline="no-display-inline" id="id5E9D289AC1F9495BB28C7CE9FE4AD011" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The
furnishing of improvements and alterations under paragraph (1) in connection
with the furnishing of medical services described in subparagraph (A) or (B) of
subsection (a)(2) shall be subject to the limitation specified in the
applicable
subparagraph.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="id4CE8A1AA1BA846CB86288E33E6474801"><enum>902.</enum><header>Eligibility for
specially adapted housing benefits and assistance for members of the Armed
Forces with service-connected disabilities and individuals residing outside the
United States</header>
<subsection id="idB16B1C32714744D9A18E26CF0E733DFC"><enum>(a)</enum><header>Eligibility</header><text>Chapter
21 of title 38, United States Code, is amended by inserting after section 2101
the following new section:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id163757EF99C641FD944B2D5A3931B809" reported-display-style="italic" style="USC">
<section id="id995483CC2F8D42C9A772BDAC34FA5243"><enum>2101A.</enum><header>Eligibility for
benefits and assistance: members of the Armed Forces with service-connected
disabilities; individuals residing outside the United States</header>
<subsection commented="no" display-inline="no-display-inline" id="id133C87EDEA2F4588AFD21E277171ED7D"><enum>(a)</enum><header display-inline="yes-display-inline">Members with service-connected
disabilities</header><paragraph commented="no" display-inline="yes-display-inline" id="id37E6C80BBDEA4A5CB2980A96CCD85097"><enum>(1)</enum><text display-inline="yes-display-inline">The Secretary may provide assistance under
this chapter to a member of the Armed Forces serving on active duty who is
suffering from a disability that meets applicable criteria for benefits under
this chapter if the disability is incurred or aggravated in line of duty in the
active military, naval, or air service. Such assistance shall be provided to
the same extent as assistance is provided under this chapter to veterans
eligible for assistance under this chapter and subject to the same requirements
as veterans under this chapter.</text>
</paragraph><paragraph changed="added" commented="no" display-inline="no-display-inline" id="id0517F3D57AE843638A8DA7215E66F054" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>For
purposes of this chapter, any reference to a veteran or eligible individual
shall be treated as a reference to a member of the Armed Forces described in
subsection (a) who is similarly situated to the veteran or other eligible
individual so referred to.</text>
</paragraph></subsection><subsection id="idF5EFEF6ECFCD4E8AB87CE13E91FE2DD7"><enum>(b)</enum><header>Benefits and assistance
for individuals residing outside the United States</header><paragraph commented="no" display-inline="yes-display-inline" id="id2B7E429A70C04FEDB75589B67A4CFFF0"><enum>(1)</enum><text>Subject to paragraph
(2), the Secretary may, at the Secretary's discretion, provide benefits and
assistance under this chapter (other than benefits under section 2106 of this
title) to any individual otherwise eligible for such benefits and assistance
who resides outside the United States.</text>
</paragraph><paragraph changed="added" id="idEE52889251D8421C9A5249F12B397EF3" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The
Secretary may provide benefits and assistance to an individual under paragraph
(1) only if—</text>
<subparagraph id="idBF936B28864B4BD78FFD43BAD1B4CAB6"><enum>(A)</enum><text>the
country or political subdivision in which the housing or residence involved is
or will be located permits the individual to have or acquire a beneficial
property interest (as determined by the Secretary) in such housing or
residence; and</text>
</subparagraph><subparagraph id="id28627079515E45638054E517A610C293"><enum>(B)</enum><text>the
individual has or will acquire a beneficial property interest (as so
determined) in such housing or residence.</text>
</subparagraph></paragraph></subsection><subsection id="id72A245413FDB4293ADE25490AEA86DD7"><enum>(c)</enum><header>Regulations</header><text>Benefits
and assistance under this chapter by reason of this section shall be provided
in accordance with such regulations as the Secretary may
prescribe.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id6477F8BBC7A14C4E96E239BD92DEAFD1"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="id2393E9AEBC3149F5B7511A67763EB46B"><enum>(1)</enum><header>Repeal of superseded
authority</header><text>Section 2101 of such title is amended—</text>
<subparagraph id="idF66F4A3531E94BEEA3226D48FFD9AF12"><enum>(A)</enum><text>by striking subsection
(c); and</text>
</subparagraph><subparagraph id="id101F1B14B7034798BA061E6A22D5E041"><enum>(B)</enum><text>by redesignating
subsection (d) as subsection (c).</text>
</subparagraph></paragraph><paragraph id="id147CCFC815F242ABB3B1134515C509F9"><enum>(2)</enum><header>Limitations on
assistance</header><text>Section 2102 of such title is amended—</text>
<subparagraph id="idCF731A37862647168BCB531C3E510E37"><enum>(A)</enum><text>in subsection (a)—</text>
<clause id="id0114AA6EA89E43A58377E753AD8FB7E7"><enum>(i)</enum><text>by striking
<quote>veteran</quote> each place it appears and inserting
<quote>individual</quote>; and</text>
</clause><clause id="idF388A802325C4EB7B43989D4780064B9"><enum>(ii)</enum><text>in paragraph (3), by
striking <quote>veteran's</quote> and inserting
<quote>individual's</quote>;</text>
</clause></subparagraph><subparagraph id="id9E6CDBB0F4ED464E8DE89B8893463550"><enum>(B)</enum><text>in subsection (b)(1), by
striking <quote>a veteran</quote> and inserting <quote>an
individual</quote>;</text>
</subparagraph><subparagraph id="id4D1CB0E79ECF4662824738CF83FF4118"><enum>(C)</enum><text>in subsection (c)—</text>
<clause id="idCA603CADE4894B008DAF4A4E80C2D8B9"><enum>(i)</enum><text>by striking <quote>a
veteran</quote> and inserting <quote>an individual</quote>; and</text>
</clause><clause id="idA7B367B19B8A4DDFB29EFA3990B3A02C"><enum>(ii)</enum><text>by striking <quote>the
veteran</quote> each place it appears and inserting <quote>the
individual</quote>; and</text>
</clause></subparagraph><subparagraph id="id7B57D901EA2D4B43A19AA28840D38839"><enum>(D)</enum><text>in subsection (d), by
striking <quote>a veteran</quote> each place it appears and inserting <quote>an
individual</quote>.</text>
</subparagraph></paragraph><paragraph id="id5AD0DC908D6A414BA698CCD19C55ECE4"><enum>(3)</enum><header>Assistance for
individuals temporarily residing in housing of family
member</header><text>Section 2102A of such title is amended—</text>
<subparagraph id="id796D6ECB5ABA4C35A144EB6265778F1B"><enum>(A)</enum><text>by striking
<quote>veteran</quote> each place it appears (other than in subsection (b)) and
inserting <quote>individual</quote>;</text>
</subparagraph><subparagraph id="idC689E6F646DC42619E4FAE01B1D47EA0"><enum>(B)</enum><text>in subsection (a), by
striking <quote>veteran's</quote> each place it appears and inserting
<quote>individual's</quote>; and</text>
</subparagraph><subparagraph id="id2146FF89E85547E487AEB30F9A653EA6"><enum>(C)</enum><text>in subsection (b), by
striking <quote>a veteran</quote> each place it appears and inserting <quote>an
individual</quote>.</text>
</subparagraph></paragraph><paragraph id="idA2B525A818A245CAA3CBF8821420E1F8"><enum>(4)</enum><header>Furnishing of plans and
specifications</header><text>Section 2103 of such title is amended by striking
<quote>veterans</quote> both places it appears and inserting
<quote>individuals</quote>.</text>
</paragraph><paragraph id="id033F3ED0C906411B82D864FC919AAA2A"><enum>(5)</enum><header>Construction of
benefits</header><text>Section 2104 of such title is amended—</text>
<subparagraph id="id1B99671C278F449E8608B60ECCA0C43E"><enum>(A)</enum><text>in subsection (a), by
striking <quote>veteran</quote> each place it appears and inserting
<quote>individual</quote>; and</text>
</subparagraph><subparagraph id="id760E0E5FB9D445BEBE631F68530A7D73"><enum>(B)</enum><text>in subsection (b)—</text>
<clause id="id19E42E9AA7B142C6BBB0F86E3B398A4B"><enum>(i)</enum><text>in the first sentence, by
striking <quote>A veteran</quote> and inserting <quote>An
individual</quote>;</text>
</clause><clause id="id0DB6C590DC46428E93F1F341329F817E"><enum>(ii)</enum><text>in the second sentence,
by striking <quote>a veteran</quote> and inserting <quote>an
individual</quote>; and</text>
</clause><clause id="id92ED31888D674AEBBB3387806E18B7C3"><enum>(iii)</enum><text>by striking <quote>such
veteran</quote> each place it appears and inserting <quote>such
individual</quote>.</text>
</clause></subparagraph></paragraph><paragraph id="id99C97C44B8464245BC619BF2BFA18CFE"><enum>(6)</enum><header>Veterans' mortgage life
insurance</header><text>Section 2106 of such title is amended—</text>
<subparagraph id="id99B930BC5FF248EBABDB9548FF0C1E66"><enum>(A)</enum><text>in subsection (a)—</text>
<clause id="id2CA636B7250344FA932EAA5C0682253C"><enum>(i)</enum><text>by striking <quote>any
eligible veteran</quote> and inserting <quote>any eligible individual</quote>;
and</text>
</clause><clause id="id3E3C3C41609046A0AEC053ECD9166C2C"><enum>(ii)</enum><text>by striking <quote>the
veterans'</quote> and inserting <quote>the individual's</quote>;</text>
</clause></subparagraph><subparagraph id="id9C6180CF18DF4BE5B624AEFC5BBDF1B7"><enum>(B)</enum><text>in subsection (b), by
striking <quote>an eligible veteran</quote> and inserting <quote>an eligible
individual</quote>;</text>
</subparagraph><subparagraph id="id8DC17137239D42B48A88EBE47934A730"><enum>(C)</enum><text>in subsection (e), by
striking <quote>an eligible veteran</quote> and inserting <quote>an
individual</quote>;</text>
</subparagraph><subparagraph id="id6E52731E4B8E47BCA451CDFF1E431F41"><enum>(D)</enum><text>in subsection (h), by
striking <quote>each veteran</quote> and inserting <quote>each
individual</quote>;</text>
</subparagraph><subparagraph id="id69DFFCFC5ADB4F1A9DD2B9C700EB4023"><enum>(E)</enum><text>in subsection (i), by
striking <quote>the veteran's</quote> each place it appears and inserting
<quote>the individual's</quote>;</text>
</subparagraph><subparagraph id="idF0CCAED9917F47FAB3569B4C445F6029"><enum>(F)</enum><text>by striking <quote>the
veteran</quote> each place it appears and inserting <quote>the
individual</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idFF1FE0EF6BDE46A59ADD25468E101F41"><enum>(G)</enum><text display-inline="yes-display-inline">by striking <quote>a veteran</quote> each
place it appears and inserting <quote>an individual</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id090F49DFDAD0451AB8782928E09C5882"><enum>(7)</enum><header>Heading
amendments</header><subparagraph commented="no" display-inline="yes-display-inline" id="id14935426F7474167B398BDA318F3C5DE"><enum>(A)</enum><text>The heading of section
2101 of such title is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idF2529237A4364B70B02ABACF7747E56C" reported-display-style="italic" style="USC">
<section commented="no" display-inline="no-display-inline" id="idC0B9A3C10F6C4166815464D3A23E6455"><enum>2101.</enum><header>Acquisition and
adaptation of housing: eligible
veterans</header>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph changed="added" commented="no" display-inline="no-display-inline" id="idF50DD2CF43CD476399C7D3CD078CCCC0" indent="up1" reported-display-style="italic"><enum>(B)</enum><text>The
heading of section 2102A of such title is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id4CC0E4B269C14D0388518B0499DE649F" reported-display-style="italic" style="USC">
<section commented="no" display-inline="no-display-inline" id="id6F156A36F9A84CADA56750A6F6858E0D"><enum>2102A.</enum><header>Assistance for
individuals residing temporarily in housing owned by a family
member</header>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id599B4E1159264527BF911F440E9AE4FE"><enum>(8)</enum><header>Clerical
amendments</header><text>The table of sections at the beginning of chapter 21
of such title is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idCF5F02562A1242E0A29F17E694152A8D"><enum>(A)</enum><text>by striking the item
relating to section 2101 and inserting the following new item:</text>
<quoted-block changed="added" id="idc2d0d4dc-62b3-4a6d-80b7-1c339079e003" reported-display-style="italic" style="USC">
<toc changed="added" reported-display-style="italic">
<toc-entry idref="idC0B9A3C10F6C4166815464D3A23E6455" level="section">2101. Acquisition and
adaptation of housing: eligible
veterans.</toc-entry>
</toc>
<after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idAF1BD3E9563E41E1B49DA5008EFAE32F"><enum>(B)</enum><text>by inserting after the
item relating to section 2101, as so amended, the following new item:</text>
<quoted-block id="id048075c0-846d-45ff-81a4-09317f75159f" style="USC">
<toc changed="added" reported-display-style="italic">
<toc-entry idref="id995483CC2F8D42C9A772BDAC34FA5243" level="section">2101A. Eligibility for benefits
and assistance: members of the Armed Forces with service-connected
disabilities; individuals residing outside the United
States.</toc-entry>
</toc>
<after-quoted-block>;</after-quoted-block></quoted-block>
<continuation-text continuation-text-level="subparagraph">and</continuation-text></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC55475DC66C04AB4B511EEFFA3D60684"><enum>(C)</enum><text>by striking the item
relating to section 2102A and inserting the following new item:</text>
<quoted-block changed="added" id="id20438d60-31d9-4c12-a9c7-a9d520debd44" reported-display-style="italic" style="USC">
<toc changed="added" reported-display-style="italic">
<toc-entry idref="id6F156A36F9A84CADA56750A6F6858E0D" level="section">2102A. Assistance for
individuals residing temporarily in housing owned by a family
member.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="idA27B657ACA304218AB687089EF5FC460"><enum>903.</enum><header>Specially adapted
housing assistance for individuals with severe burn injuries</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/38/2101">Section 2101</external-xref> of title 38, United States
Code, is amended—</text>
<paragraph id="idB1D10BE213C64832BDA2B771FE38C4AB"><enum>(1)</enum><text>in subsection (a)(2), by
adding at the end the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id79D9D5076DFC4CA28EE2D4175E4F838D" reported-display-style="italic" style="OLC">
<subparagraph id="idC26135C8C3C6428C8F431099677F0BE5" indent="up1"><enum>(E)</enum><text>The
disability is due to a severe burn injury (as determined pursuant to
regulations prescribed by the
Secretary).</text>
</subparagraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="idF1867506BDB746C7AE66A1E8749B1BE2"><enum>(2)</enum><text>in subsection
(b)(2)—</text>
<subparagraph id="id9B082FCBDDE84DE4933ADFB60F1777C2"><enum>(A)</enum><text>by striking
<quote>either</quote> and inserting <quote>any</quote>; and</text>
</subparagraph><subparagraph id="id971246CAA26B478AA07EF25A8123A215"><enum>(B)</enum><text>by adding at the end the
following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idF016EDD8BE3B4E3BA73CFDC526B00E36" reported-display-style="italic" style="OLC">
<subparagraph id="id86C8FB59B60B41169EF803A29C263EE0" indent="up1"><enum>(C)</enum><text>The
disability is due to a severe burn injury (as so
determined).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></section><section commented="no" display-inline="no-display-inline" id="idA75E0E2D20B648B9A801D90BB529FAA2"><enum>904.</enum><header>Extension of
assistance for individuals residing temporarily in housing owned by a family
member</header><text display-inline="no-display-inline">Section 2102A(e) of
title 38, United States Code, is amended by striking <quote>after the end of
the five-year period that begins on the date of the enactment of the Veterans'
Housing Opportunity and Benefits Improvement Act of 2006</quote> and inserting
<quote>after December 31, 2011</quote>.</text>
</section><section id="idEB0A953C736A4C03ACEA44530D857929"><enum>905.</enum><header>Increase in specially
adapted housing benefits for disabled veterans</header>
<subsection id="idAE10231DCABF42A6BCAA19F4E26D4B94"><enum>(a)</enum><header>In
general</header><text><external-xref legal-doc="usc" parsable-cite="usc/38/2102">Section 2102</external-xref> of title 38, United States Code, is
amended—</text>
<paragraph id="idB528859982BD41AA90BB701987EF21F7"><enum>(1)</enum><text>in subsection (b)(2), by
striking <quote>$10,000</quote> and inserting <quote>$12,000</quote>;</text>
</paragraph><paragraph id="idA0A2B52B39424718AC804DF4686F63CF"><enum>(2)</enum><text>in subsection (d)—</text>
<subparagraph id="id627784B6A8CA4F8EBB6259D9D5F18BD2"><enum>(A)</enum><text>in paragraph (1), by
striking <quote>$50,000</quote> and inserting <quote>$60,000</quote>;
and</text>
</subparagraph><subparagraph id="id8A54BB42E578412CBE303B98C0079C0E"><enum>(B)</enum><text>in paragraph (2), by
striking <quote>$10,000</quote> and inserting <quote>$12,000</quote>;
and</text>
</subparagraph></paragraph><paragraph id="id7B734A6E724342D5A1E479AE093F20A7"><enum>(3)</enum><text>by adding at the end the
following new subsection:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id0EEA7DCF01524D8883C68029E82DB77E" reported-display-style="italic" style="OLC">
<subsection id="id5F728843D3564B18BC53E00426D3D6D2"><enum>(e)</enum><paragraph commented="no" display-inline="yes-display-inline" id="idF30EBD71E22A4F8891DC8542AD507FD1"><enum>(1)</enum><text>Effective on October 1
of each year (beginning in 2009), the Secretary shall increase the amounts
described in subsection (b)(2) and paragraphs (1) and (2) of subsection (d) in
accordance with this subsection.</text>
</paragraph><paragraph changed="added" id="id0406F7E1BDF64F64BBE38DFA66B98681" indent="up1" reported-display-style="italic"><enum>(2)</enum><text>The
increase in amounts under paragraph (1) to take effect on October 1 of a year
shall be by an amount of such amounts equal to the percentage by which—</text>
<subparagraph id="id5AD12F57E7454F7A84AD00B2CB8EB0A1"><enum>(A)</enum><text>the
residential home cost-of-construction index for the preceding calendar year,
exceeds</text>
</subparagraph><subparagraph id="id8D2F597CB6664D75B6C6C7C34A941217"><enum>(B)</enum><text>the
residential home cost-of-construction index for the year preceding the year
described in subparagraph (A).</text>
</subparagraph></paragraph><paragraph changed="added" id="idB9F7A686DBE64C94A92293EA8E630805" indent="up1" reported-display-style="italic"><enum>(3)</enum><text>The
Secretary shall establish a residential home cost-of-construction index for the
purposes of this subsection. The index shall reflect a uniform, national
average change in the cost of residential home construction, determined on a
calendar year basis. The Secretary may use an index developed in the private
sector that the Secretary determines is appropriate for purposes of this
subsection.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id8CE5BBA6E0504CB4AA84E3FB895C561A"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on
July 1, 2008, and shall apply with respect to payments made in accordance with
<external-xref legal-doc="usc" parsable-cite="usc/38/2102">section 2102</external-xref> of title 38, United States Code, on or after that date.</text>
</subsection></section><section id="id83DA8A78500240EE95F1D7CBC2B80D54"><enum>906.</enum><header>Report on specially
adapted housing for disabled individuals</header>
<subsection id="id028E3B39F5714433B5EF096245A14647"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Not later than
December 31, 2008, the Secretary of Veterans Affairs shall submit to the
Committee on Veterans' Affairs of the Senate and the Committee on Veterans'
Affairs of the House of Representatives a report that contains an assessment of
the adequacy of the authorities available to the Secretary under law to assist
eligible disabled individuals in acquiring—</text>
<paragraph id="id23FFEFB41E7343CEAA2D4595C2BF856A"><enum>(1)</enum><text display-inline="yes-display-inline">suitable housing units with special
fixtures or movable facilities required for their disabilities, and necessary
land therefor;</text>
</paragraph><paragraph id="id4FC8B8E02A5F4CD5980693DF9FE120F1"><enum>(2)</enum><text>such adaptations to their
residences as are reasonably necessary because of their disabilities;
and</text>
</paragraph><paragraph id="id738EF92516474574A665BDB3584FF098"><enum>(3)</enum><text>residences already
adapted with special features determined by the Secretary to be reasonably
necessary as a result of their disabilities.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idA349D9AE9B70490AB305479F41E486E1"><enum>(b)</enum><header>Focus on particular
disabilities</header><text>The report required by subsection (a) shall set
forth a specific assessment of the needs of—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id7316C8F3A78B4601B1A8A95EF63B53C1"><enum>(1)</enum><text>veterans who have
disabilities that are not described in subsections (a)(2) and (b)(2) of section
2101 of title 38, United States Code; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id55C53CC83D184EDD810C71E38BD2BE60"><enum>(2)</enum><text>other disabled
individuals eligible for specially adapted housing under chapter 21 of such
title by reason of section 2101A of such title (as added by section 902(a) of
this Act) who have disabilities that are not described in such
subsections.</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id7A265D2CFAF94A25B88FF60AE2602434" section-type="subsequent-section"><enum>907.</enum><header>Report on specially
adapted housing assistance for individuals who reside in housing owned by a
family member on permanent basis</header><text display-inline="no-display-inline">Not later than December 31, 2008, the
Secretary of Veterans Affairs shall submit to the Committee on Veterans'
Affairs of the Senate and the Committee on Veterans' Affairs of the House of
Representatives a report on the advisability of providing assistance under
<external-xref legal-doc="usc" parsable-cite="usc/38/2102A">section 2102A</external-xref> of title 38, United States Code, to veterans described in
subsection (a) of such section, and to members of the Armed Forces covered by
such section 2102A by reason of <external-xref legal-doc="usc" parsable-cite="usc/38/2101A">section 2101A</external-xref> of title 38, United States Code
(as added by section 902(a) of this Act), who reside with family members on a
permanent basis.</text>
</section><section commented="no" display-inline="no-display-inline" id="id30E4C87A4C0645ABBDA3D0DC79C72A13" section-type="subsequent-section"><enum>908.</enum><header>Definition of annual
income for purposes of section 8 and other public housing
programs</header><text display-inline="no-display-inline">Section 3(b)(4) of
the United States Housing Act of 1937 (42 U.S.C. 1437a(3)(b)(4)) is amended by
inserting <quote>or any deferred Department of Veterans Affairs disability
benefits that are received in a lump sum amount or in prospective monthly
amounts</quote> before <quote>may not be considered</quote>.</text>
</section><section commented="no" display-inline="no-display-inline" id="id2B8237C382DC4EB1A1498D1EFE3278BC" section-type="subsequent-section"><enum>909.</enum><header>Payment of
transportation of baggage and household effects for members of the Armed Forces
who relocate due to foreclosure of leased housing</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/37/406">Section 406</external-xref> of title 37, United States Code,
is amended—</text>
<paragraph id="id1F427D8F9E5043B4BB60E28AC9E36238"><enum>(1)</enum><text>by redesignating
subsections (k) and (l) as subsections (l) and (m), respectively; and</text>
</paragraph><paragraph id="idBDE66919B057485ABB21A10E27E4EA5C"><enum>(2)</enum><text>by inserting after
subsection (j) the following new subsection (k):</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id2F0FB7BECB8C469AA6F32469B206ADDC" reported-display-style="italic" style="OLC">
<subsection id="id799712F5B259441FBB5F313872790477"><enum>(k)</enum><text>A member of the armed
forces who relocates from leased or rental housing by reason of the foreclosure
of such housing is entitled to transportation of baggage and household effects
under subsection (b)(1) in the same manner, and subject to the same conditions
and limitations, as similarly circumstanced members entitled to transportation
of baggage and household effects under that
subsection.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><enum>X</enum><header>Clean energy tax
stimulus</header>
<section id="id52D66A1FEB8A4871A07FE08B64B766D9" section-type="subsequent-section"><enum>1001.</enum><header>Short title;
etc</header>
<subsection id="idB8AC7515C47F462782DEF815FB565D86"><enum>(a)</enum><header>Short
title</header><text display-inline="yes-display-inline">This title may be cited
as the <quote><short-title>Clean Energy Tax Stimulus Act
of 2008 </short-title></quote>.</text>
</subsection><subsection id="H8856AF257FD348A2A94E8125619179CF"><enum>(b)</enum><header>Amendment of 1986
Code</header><text>Except as otherwise expressly provided, whenever in this
title an amendment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Internal Revenue Code of
1986.</text>
</subsection></section><subtitle id="idF4610A62FB8B4A399DA4732869C7DE0E"><enum>A</enum><header>Extension of clean energy
production incentives</header>
<section id="idA0A87186B8944FA7BD50588B609F992B"><enum>1011.</enum><header>Extension and
modification of renewable energy production tax credit</header>
<subsection id="HDB1BC1D5F4534B9890CD5FB3FDC5B4CD"><enum>(a)</enum><header>Extension of
credit</header><text display-inline="yes-display-inline">Each of the following
provisions of section 45(d) (relating to qualified facilities) is amended by
striking <quote>January 1, 2009</quote> and inserting <quote>January 1,
2010</quote>:</text>
<paragraph id="HA1FC21D2E50D4776B6043BC132CEDEDE"><enum>(1)</enum><text>Paragraph (1).</text>
</paragraph><paragraph id="H015765F39531443E8F024EA5476C5731"><enum>(2)</enum><text>Clauses (i) and (ii) of
paragraph (2)(A).</text>
</paragraph><paragraph id="H52BE85C8411C4D21BEC774160258C411"><enum>(3)</enum><text>Clauses (i)(I) and (ii)
of paragraph (3)(A).</text>
</paragraph><paragraph id="H466046178D79455C83BBFB931C159D00"><enum>(4)</enum><text>Paragraph (4).</text>
</paragraph><paragraph id="H71840C7A533F4262AF0432FF54845B13"><enum>(5)</enum><text>Paragraph (5).</text>
</paragraph><paragraph id="H515AE74519C746B690762BCB6D4EC832"><enum>(6)</enum><text>Paragraph (6).</text>
</paragraph><paragraph id="HF59AB525B86649769DAFD8B74A2AEC2"><enum>(7)</enum><text>Paragraph (7).</text>
</paragraph><paragraph id="id71625B13BB904AFB95F53DE3D2ADEDA1"><enum>(8)</enum><text>Paragraph (8).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HAF5CB72DBAE945B300354C20E05F416C"><enum>(9)</enum><text>Subparagraphs (A) and (B)
of paragraph (9).</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HB4CF1AB00EF74640BB83F48EA4A58819"><enum>(b)</enum><header>Production credit for
electricity produced from marine renewables</header>
<paragraph id="H8AEEA1860DF5466AA3F1F4B0D7D531BC"><enum>(1)</enum><header>In
general</header><text>Paragraph (1) of section 45(c) (relating to resources) is
amended by striking <quote>and</quote> at the end of subparagraph (G), by
striking the period at the end of subparagraph (H) and inserting <quote>,
and</quote>, and by adding at the end the following new subparagraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HF2AFB43401744260AD51E1C2AC3FD7DE" reported-display-style="italic" style="OLC">
<subparagraph id="HF5160F52F39A4CADBF00CC79BC26FD5E"><enum>(I)</enum><text display-inline="yes-display-inline">marine and hydrokinetic renewable
energy.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H449C1D2BFA274191BB88B17F00A88806"><enum>(2)</enum><header>Marine
renewables</header><text>Subsection (c) of section 45 is amended by adding at
the end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HFA888FAEE6E2431E9D115B05E206F923" reported-display-style="italic" style="OLC">
<paragraph commented="no" id="HC54771A1613C4BCCA3EEAAB7CE6C421F"><enum>(10)</enum><header>Marine and
hydrokinetic renewable energy</header>
<subparagraph id="HD8F37DB75C58437A8479E4D059D64FFF"><enum>(A)</enum><header>In
general</header><text>The term <term>marine and hydrokinetic renewable
energy</term> means energy derived from—</text>
<clause display-inline="no-display-inline" id="H382B3B55DF274E0990245BE19BEE16E3"><enum>(i)</enum><text>waves, tides, and
currents in oceans, estuaries, and tidal areas,</text>
</clause><clause id="HE68273A2B925406C9427F3617EB7D7AF"><enum>(ii)</enum><text>free flowing water in
rivers, lakes, and streams,</text>
</clause><clause id="HBFF801616BB14908AF672DF770488EDF"><enum>(iii)</enum><text>free flowing water in
an irrigation system, canal, or other man-made channel, including projects that
utilize nonmechanical structures to accelerate the flow of water for electric
power production purposes, or</text>
</clause><clause id="HA507A7A724994D3A8424E2E4D7008F6D"><enum>(iv)</enum><text>differentials in ocean
temperature (ocean thermal energy conversion).</text>
</clause></subparagraph><subparagraph id="H77F25B87527F45EB9035BBADC345DF54"><enum>(B)</enum><header>Exceptions</header><text display-inline="yes-display-inline">Such term shall not include any energy
which is derived from any source which utilizes a dam, diversionary structure
(except as provided in subparagraph (A)(iii)), or impoundment for electric
power production
purposes.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HFA40CC241F814F48ABD302B7CCA3595D"><enum>(3)</enum><header>Definition of
facility</header><text>Subsection (d) of section 45 is amended by adding at the
end the following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HF82181A480AC4662A531194093FCC26E" reported-display-style="italic" style="OLC">
<paragraph id="HBB99C60D83904DB49D6B78003E03F848"><enum>(11)</enum><header>Marine and
hydrokinetic renewable energy facilities</header><text display-inline="yes-display-inline">In the case of a facility producing
electricity from marine and hydrokinetic renewable energy, the term
<term>qualified facility</term> means any facility owned by the
taxpayer—</text>
<subparagraph id="HB3A46509FB9E4A06BC5CC516EBAE87A0"><enum>(A)</enum><text display-inline="yes-display-inline">which has a nameplate capacity rating of at
least 150 kilowatts, and</text>
</subparagraph><subparagraph id="HC805938B69A2485F89375B430784DBE9"><enum>(B)</enum><text>which is originally
placed in service on or after the date of the enactment of this paragraph and
before January 1,
2010.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H99580472C5BA4180A7CA9C969D6D81C8"><enum>(4)</enum><header>Credit
rate</header><text>Subparagraph (A) of section 45(b)(4) is amended by striking
<quote>or (9)</quote> and inserting <quote>(9), or (11)</quote>.</text>
</paragraph><paragraph commented="no" id="HEB22692156AA4721ACBD828B429F55DA"><enum>(5)</enum><header>Coordination with small
irrigation power</header><text>Paragraph (5) of section 45(d), as amended by
subsection (a), is amended by striking <quote>January 1, 2010</quote> and
inserting <quote>the date of the enactment of paragraph (11)</quote>.</text>
</paragraph></subsection><subsection commented="no" id="id427610985F52483D8E39E3B6DFD8D226"><enum>(c)</enum><header>Sales of electricity to
regulated public utilities treated as sales to unrelated
persons</header><text>Section 45(e)(4) (relating to related persons) is amended
by adding at the end the following new sentence: <quote>A taxpayer shall be
treated as selling electricity to an unrelated person if such electricity is
sold to a regulated public utility (as defined in section
7701(a)(33).</quote>.</text>
</subsection><subsection id="id9F1D1DBD54EE431080B7F0839B685A0F"><enum>(d)</enum><header>Trash facility
clarification</header><text>Paragraph (7) of section 45(d) is amended—</text>
<paragraph id="idAD0F1641F3364981A858B1DC391273C0"><enum>(1)</enum><text>by striking
<quote>facility which burns</quote> and inserting <quote>facility (other than a
facility described in paragraph (6)) which uses</quote>, and</text>
</paragraph><paragraph id="idA07CDF07C332418799FCCCDCAAA36A79"><enum>(2)</enum><text>by striking
<quote><header-in-text level="paragraph" style="OLC">combustion</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="HF97129AE391C4E65B5471F9418D1F31"><enum>(e)</enum><header>Effective
dates</header>
<paragraph commented="no" display-inline="no-display-inline" id="HF7A3B656489F47E196F22B369BB8669B"><enum>(1)</enum><header>Extension</header><text>The
amendments made by subsection (a) shall apply to property originally placed in
service after December 31, 2008.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H9025090DB7A440CCAFDB464C01B8B5B"><enum>(2)</enum><header>Modifications</header><text>The
amendments made by subsections (b) and (c) shall apply to electricity produced
and sold after the date of the enactment of this Act, in taxable years ending
after such date.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idE35CCBE0B4BB4B82A3F8F90CDB5CE358"><enum>(3)</enum><header>Trash facility
clarification</header><text>The amendments made by subsection (d) shall apply
to electricity produced and sold before, on, or after December 31, 2007.</text>
</paragraph></subsection></section><section id="H269D698EF0B743C7BD54C7C7DCCFC00"><enum>1012.</enum><header>Extension and
modification of solar energy and fuel cell investment tax credit</header>
<subsection id="HD6B8692F800C4C708C38B801D5AE4361"><enum>(a)</enum><header>Extension of
credit</header>
<paragraph id="H33F3142BDA5F4EA689588533EAAE1578"><enum>(1)</enum><header>Solar energy
property</header><text>Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 48(a)
(relating to energy credit) are each amended by striking <quote>January 1,
2009</quote> and inserting <quote>January 1, 2017</quote>.</text>
</paragraph><paragraph id="HCB3E6DE160864A639151807EB9DD0695"><enum>(2)</enum><header>Fuel cell
property</header><text>Subparagraph (E) of section 48(c)(1) (relating to
qualified fuel cell property) is amended by striking <quote>December 31,
2008</quote> and inserting <quote>December 31, 2017</quote>.</text>
</paragraph><paragraph id="id9FD741F7B6C04104BB85BAF5005CA1DA"><enum>(3)</enum><header>Qualified microturbine
property</header><text>Subparagraph (E) of section 48(c)(2) (relating to
qualified microturbine property) is amended by striking <quote>December 31,
2008</quote> and inserting <quote>December 31, 2017</quote>.</text>
</paragraph></subsection><subsection id="HCD906D8944D94AE6B3C99141FF1269E8"><enum>(b)</enum><header>Allowance of energy
credit against alternative minimum tax</header><text>Subparagraph (B) of
section 38(c)(4) (relating to specified credits) is amended by striking
<quote>and</quote> at the end of clause (iii), by striking the period at the
end of clause (iv) and inserting <quote>, and</quote>, and by adding at the end
the following new clause:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HAAE8DC24A64948CCB036BACC8F5CEC75" reported-display-style="italic" style="OLC">
<clause id="HDC98AA51221A4453973C60DE21E3A3C0"><enum>(v)</enum><text>the credit determined
under section 46 to the extent that such credit is attributable to the energy
credit determined under section
48.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id22128F02BA2F4152B0F05F6F255F2689"><enum>(c)</enum><header>Repeal of dollar per
kilowatt limitation for fuel cell property</header>
<paragraph commented="no" display-inline="no-display-inline" id="id9BA819B28A4F479397FFB3A8F22D8F52"><enum>(1)</enum><header>In
general</header><text>Section 48(c)(1) (relating to qualified fuel cell), as
amended by subsection (a)(2), is amended by striking subparagraph (B) and by
redesignating subparagraphs (C), (D), and (E) as subparagraphs (B), (C), and
(D), respectively.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id29C917EF3A854176AE38E7464FFC0466"><enum>(2)</enum><header>Conforming
amendment</header><text>Section 48(a)(1) is amended by striking
<quote>paragraphs (1)(B) and (2)(B) of subsection (c)</quote> and inserting
<quote>subsection (c)(2)(B)</quote>.</text>
</paragraph></subsection><subsection id="H13585CAF81954D18BD470154A7AB2201"><enum>(d)</enum><header>Public electric utility
property taken into account</header>
<paragraph id="HEB072CE0D1814CC9A700F4129200852B"><enum>(1)</enum><header>In
general</header><text>Paragraph (3) of section 48(a) is amended by striking the
second sentence thereof.</text>
</paragraph><paragraph id="H0DB5E2619C07434889807E82929FC3EF"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="H0FB44F1F632D4943905CD1B5BA827838"><enum>(A)</enum><text>Paragraph (1) of section
48(c), as amended by this section, is amended by striking subparagraph (C) and
redesignating subparagraph (D) as subparagraph (C).</text>
</subparagraph><subparagraph id="H9EB51D36616E4024B8222FD60507A7E7"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 48(c), as amended
by subsection (a)(3), is amended by striking subparagraph (D) and redesignating
subparagraph (E) as subparagraph (D).</text>
</subparagraph></paragraph></subsection><subsection id="HE42B21EED3C646A5946C4D2B1843A47D"><enum>(e)</enum><header>Effective
dates</header>
<paragraph id="H398926E157C148FFBC20A1B65851CE25"><enum>(1)</enum><header>Extension</header><text>The
amendments made by subsection (a) shall take effect on the date of the
enactment of this Act.</text>
</paragraph><paragraph id="HBEA92A36FE9246939BC8E6B200782D9D"><enum>(2)</enum><header>Allowance against
alternative minimum tax</header><text>The amendments made by subsection (b)
shall apply to credits determined under section 46 of the Internal Revenue Code
of 1986 in taxable years beginning after the date of the enactment of this Act
and to carrybacks of such credits.</text>
</paragraph><paragraph id="HB6951B00373E40238EA688BCB084E3B3"><enum>(3)</enum><header>Fuel cell property and
public electric utility property</header><text>The amendments made by
subsections (c) and (d) shall apply to periods after the date of the enactment
of this Act, in taxable years ending after such date, under rules similar to
the rules of section
48(m) of the Internal Revenue Code of 1986 (as in effect on the
day before the date of the enactment of the Revenue Reconciliation Act of
1990).</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="HA1D364429CB54725A4DCB445B2E32D46" section-type="subsequent-section"><enum>1013.</enum><header>Extension and
modification of residential energy efficient property credit</header>
<subsection id="H9349EB077AA74E2F952F418DFCE80004"><enum>(a)</enum><header>Extension</header><text>Section
25D(g) (relating to termination) is amended by striking <quote>December 31,
2008</quote> and inserting <quote>December 31, 2009</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HE46345B52DFF471495F4DDD33ED42F8"><enum>(b)</enum><header>No dollar limitation
for credit for solar electric property</header>
<paragraph commented="no" display-inline="no-display-inline" id="H938D47C10FEB43F5B3C6D268D4B321AF"><enum>(1)</enum><header>In
general</header><text>Section 25D(b)(1) (relating to maximum credit) is amended
by striking subparagraph (A) and by redesignating subparagraphs (B) and (C) as
subparagraphs (A) and (B), respectively.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HA3510519FB1D46FBB2CBF3756CC6277"><enum>(2)</enum><header>Conforming
amendments</header><text>Section 25D(e)(4) is amended—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id3BB57B7559424634B0E1A453871AA1DE"><enum>(A)</enum><text>by striking clause (i) in
subparagraph (A),</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idFBAD54EB5E6F45A38202461A124147CF"><enum>(B)</enum><text>by redesignating clauses
(ii) and (iii) in subparagraph (A) as clauses (i) and (ii), respectively,
and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id51B7F40FCA15456F8B784F6C7AD04737"><enum>(C)</enum><text>by striking <quote>,
(2),</quote> in subparagraph (C).</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H5304447515B54A94979063AB66B00B2"><enum>(c)</enum><header>Credit allowed against
alternative minimum tax</header>
<paragraph commented="no" id="H53C0979DA9A7412291AAF275F98C1E44"><enum>(1)</enum><header>In
general</header><text>Subsection (c) of section 25D is amended to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H992F54FA14B645E281E0FAFCE5D12B2" reported-display-style="italic" style="OLC">
<subsection commented="no" id="HA653FA503321480EBD4C5445D5C2141F"><enum>(c)</enum><header>Limitation based on
amount of tax; carryforward of unused credit</header>
<paragraph commented="no" id="H26D00907A7BB4778BE2769883EEC87C8"><enum>(1)</enum><header>Limitation based on
amount of tax</header><text>In the case of a taxable year to which section
26(a)(2) does not apply, the credit allowed under subsection (a) for the
taxable year shall not exceed the excess of—</text>
<subparagraph commented="no" id="H3EDA6A04899B468D976736ED0377AABB"><enum>(A)</enum><text>the sum of the regular
tax liability (as defined in section 26(b)) plus the tax imposed by section 55,
over</text>
</subparagraph><subparagraph commented="no" id="HEFEC12897D2B41EA9FEDF79583E0FAE7"><enum>(B)</enum><text>the sum of the credits
allowable under this subpart (other than this section) and section 27 for the
taxable year.</text>
</subparagraph></paragraph><paragraph commented="no" id="H607683F7FFE446AF8629B93A8EE795E"><enum>(2)</enum><header>Carryforward of unused
credit</header>
<subparagraph commented="no" id="H525736544BE0433EB015FD3F8F2DA2E1"><enum>(A)</enum><header>Rule for years in which
all personal credits allowed against regular and alternative minimum
tax</header><text display-inline="yes-display-inline">In the case of a taxable
year to which section 26(a)(2) applies, if the credit allowable under
subsection (a) exceeds the limitation imposed by section 26(a)(2) for such
taxable year reduced by the sum of the credits allowable under this subpart
(other than this section), such excess shall be carried to the succeeding
taxable year and added to the credit allowable under subsection (a) for such
succeeding taxable year.</text>
</subparagraph><subparagraph commented="no" id="HB1FF32EA728B48DBADA6ECFC38BFC33C"><enum>(B)</enum><header>Rule for other
years</header><text>In the case of a taxable year to which section 26(a)(2)
does not apply, if the credit allowable under subsection (a) exceeds the
limitation imposed by paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the credit allowable under
subsection (a) for such succeeding taxable
year.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H7C7892F923184FFBA825E3EBE484F4E7"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph commented="no" id="HD6DFAD2A82C74CB48424BCE2F3CBB4E7"><enum>(A)</enum><text>Section 23(b)(4)(B) is
amended by inserting <quote>and section 25D</quote> after <quote>this
section</quote>.</text>
</subparagraph><subparagraph commented="no" id="HEDF21F2BCA264911913B8D7051F9F267"><enum>(B)</enum><text>Section 24(b)(3)(B) is
amended by striking <quote>and 25B</quote> and inserting <quote>, 25B, and
25D</quote>.</text>
</subparagraph><subparagraph commented="no" id="H53CCB9C433474BD49196972D2CDEE169"><enum>(C)</enum><text>Section 25B(g)(2) is
amended by striking <quote>section 23</quote> and inserting <quote>sections 23
and 25D</quote>.</text>
</subparagraph><subparagraph commented="no" id="HCEB5E0974B6D467CB8B4E8F94C021CB"><enum>(D)</enum><text>Section 26(a)(1) is
amended by striking <quote>and 25B</quote> and inserting <quote>25B, and
25D</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="HC398765C0E594A88892DD06841BFE324"><enum>(d)</enum><header>Effective date</header>
<paragraph id="H0FDACA8C21B74CA7B0220016D370ED2B"><enum>(1)</enum><header>In
general</header><text>The amendments made by this section shall apply to
taxable years beginning after December 31, 2007.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H30C36D1486184C00A3ED76D8EDB42D29"><enum>(2)</enum><header>Application of EGTRRA
sunset</header><text>The amendments made by subparagraphs (A) and (B) of
subsection (c)(2) shall be subject to title IX of the Economic Growth and Tax
Relief Reconciliation Act of 2001 in the same manner as the provisions of such
Act to which such amendments relate.</text>
</paragraph></subsection></section><section id="id897E40DD26E34F419809BC91D602E513"><enum>1014.</enum><header>Extension and
modification of credit for clean renewable energy bonds</header>
<subsection id="idC80BC8CD573844BBAC4FAEEB4F84D28D"><enum>(a)</enum><header>Extension</header><text>Section
54(m) (relating to termination) is amended by striking <quote>December 31,
2008</quote> and inserting <quote>December 31, 2009</quote>.</text>
</subsection><subsection id="id2F1A66D4AF0249B7AF392AA48E9F46E5"><enum>(b)</enum><header>Increase in national
limitation</header><text>Section 54(f) (relating to limitation on amount of
bonds designated) is amended—</text>
<paragraph id="idA0967D3089294989909117A745AE5A32"><enum>(1)</enum><text>by inserting <quote>, and
for the period beginning after the date of the enactment of the
<short-title>Clean Energy Tax Stimulus Act of 2008
</short-title> and ending before January 1, 2010, $400,000,000</quote> after
<quote>$1,200,000,000</quote> in paragraph (1),</text>
</paragraph><paragraph id="id2FEFF51A2DB04A43B6C48193BAFEE51C"><enum>(2)</enum><text>by striking
<quote>$750,000,000 of the</quote> in paragraph (2) and inserting
<quote>$750,000,000 of the $1,200,000,000</quote>, and</text>
</paragraph><paragraph id="id5D0EBB0EAC41479A8D09EA8310246F35"><enum>(3)</enum><text>by striking
<quote>bodies</quote> in paragraph (2) and inserting <quote>bodies, and except
that the Secretary may not allocate more than <fraction>1/3</fraction> of the
$400,000,000 national clean renewable energy bond limitation to finance
qualified projects of qualified borrowers which are public power providers nor
more than <fraction>1/3</fraction> of such limitation to finance qualified
projects of qualified borrowers which are mutual or cooperative electric
companies described in section 501(c)(12) or section
1381(a)(2)(C)</quote>.</text>
</paragraph></subsection><subsection id="idCBCDDCB08F914D03AFF188D972C030D7"><enum>(c)</enum><header>Public power providers
defined</header><text>Section 54(j) is amended—</text>
<paragraph id="idA4FAD517C3694EECB0FB37830558E0A4"><enum>(1)</enum><text>by adding at the end the
following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id507F8C27738E4CF4B94864664BB4A2CC" reported-display-style="italic" style="OLC">
<paragraph id="HE61501BFE2C348C5BACADEE973FA160"><enum>(6)</enum><header>Public power
provider</header><text display-inline="yes-display-inline">The term
<term>public power provider</term> means a State utility with a service
obligation, as such terms are defined in section 217 of the Federal Power Act
(as in effect on the date of the enactment of this
paragraph).</text>
</paragraph><after-quoted-block>,
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id6C3482E804684ABBA67531AF000253DF"><enum>(2)</enum><text>by inserting
<quote><header-in-text level="subsection" style="OLC">; public power
provider</header-in-text></quote> before the period at the end of the
heading.</text>
</paragraph></subsection><subsection id="idE819398EB23D4316912EB47071E66AAD"><enum>(d)</enum><header>Technical
amendment</header><text>The third sentence of section 54(e)(2) is amended by
striking <quote>subsection (l)(6)</quote> and inserting <quote>subsection
(l)(5)</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id61A42F8789904B319F3649BC047540C8"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to bonds
issued after the date of the enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id844FC0C189CF4BCC8FF889F6384D0951"><enum>1015.</enum><header>Extension of special
rule to implement FERC restructuring policy</header>
<subsection commented="no" display-inline="no-display-inline" id="idC32C64822FBD42478E623B8FB58474C6"><enum>(a)</enum><header>Qualifying electric
transmission transaction</header>
<paragraph commented="no" display-inline="no-display-inline" id="id9D371D9F8FFD472BA93528A8A4B8CC0D"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 451(i)(3)
(defining qualifying electric transmission transaction) is amended by striking
<quote>January 1, 2008</quote> and inserting <quote>January 1,
2010</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id30F012BCE448459E97B47AC0DB7714A6"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall apply to
transactions after December 31, 2007.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idC74A4F48430641829076307CD7DA1990"><enum>(b)</enum><header>Independent
transmission company</header>
<paragraph commented="no" display-inline="no-display-inline" id="id29B694C420CB481D90E7CC5E331BF19E"><enum>(1)</enum><header>In
general</header><text>Section 451(i)(4)(B)(ii) (defining independent
transmission company) is amended by striking <quote>December 31, 2007</quote>
and inserting <quote>the date which is 2 years after the date of such
transaction</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id64D214742E0F49A3A7D90A130F1685FE"><enum>(2)</enum><header>Effective
date</header><text>The amendment made by this subsection shall take effect as
if included in the amendments made by section 909 of the American Jobs Creation
Act of 2004.</text>
</paragraph></subsection></section></subtitle><subtitle id="id34C7D8927FC74E32B83735AB4139095A"><enum>B</enum><header>Extension of incentives
to improve energy efficiency</header>
<section display-inline="no-display-inline" id="H4E4E73F0AC694ACFB033902D6B2B9D00" section-type="subsequent-section"><enum>1021.</enum><header>Extension and
modification of credit for energy efficiency improvements to existing
homes</header>
<subsection commented="no" id="HE1311AF729B443509923399000941F78"><enum>(a)</enum><header>Extension of
credit</header><text display-inline="yes-display-inline">Section 25C(g)
(relating to termination) is amended by striking <quote>December 31,
2007</quote> and inserting <quote>December 31, 2009</quote>.</text>
</subsection><subsection id="HCCD43C36D3924ACCB3C733A06316F351"><enum>(b)</enum><header>Qualified biomass fuel
property</header>
<paragraph id="H8411EFDEE2B64C13A622B4D6474B0205"><enum>(1)</enum><header>In
general</header><text>Section 25C(d)(3) is amended—</text>
<subparagraph id="H8A719566C3F24D3CB51C5E3C8875F1F0"><enum>(A)</enum><text>by striking
<quote>and</quote> at the end of subparagraph (D),</text>
</subparagraph><subparagraph id="H7E636F6DFDD443F3A4854FA3DD897470"><enum>(B)</enum><text>by striking the period at
the end of subparagraph (E) and inserting <quote>, and</quote>, and</text>
</subparagraph><subparagraph id="H38D94E65D3FF485EA514EB6314520095"><enum>(C)</enum><text>by adding at the end the
following new subparagraph:</text>
<quoted-block act-name="" changed="added" id="HD259A568896E47AEB6E031BAF3A20013" reported-display-style="italic" style="OLC">
<subparagraph id="HE89CE77FF7E24398A5D63955A772CCFC"><enum>(F)</enum><text>a stove which uses the
burning of biomass fuel to heat a dwelling unit located in the United States
and used as a residence by the taxpayer, or to heat water for use in such a
dwelling unit, and which has a thermal efficiency rating of at least 75
percent.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HBCEA0C4751B94391A3C9E5B95CF2CE7"><enum>(2)</enum><header>Biomass
fuel</header><text>Section 25C(d) (relating to residential energy property
expenditures) is amended by adding at the end the following new
paragraph:</text>
<quoted-block act-name="" changed="added" id="HCE430B59D2084920A3A900807B8CFDDF" reported-display-style="italic" style="OLC">
<paragraph id="HBB58614A2CE849DB917D9ED6C8AAA549"><enum>(6)</enum><header>Biomass
fuel</header><text>The term <term>biomass fuel</term> means any plant-derived
fuel available on a renewable or recurring basis, including agricultural crops
and trees, wood and wood waste and residues (including wood pellets), plants
(including aquatic plants), grasses, residues, and
fibers.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id36693B2E816E46F18FF93BD6A09501E2"><enum>(c)</enum><header>Modifications of
standards for energy-efficient building property</header>
<paragraph id="id59117E46EE894ED3A93B8D680C16AED0"><enum>(1)</enum><header>Electric heat
pumps</header><text>Subparagraph (B) of section 25C(d)(3) is amended to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id544CE208014042369B3376285D32D422" reported-display-style="italic" style="OLC">
<subparagraph id="idA2D4D89188594254886EEAD088CD45CD"><enum>(A)</enum><text>an electric heat pump
which achieves the highest efficiency tier established by the Consortium for
Energy Efficiency, as in effect on January 1,
2008.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id64A4368ACD8C4538B76AEA1B1E2C696B"><enum>(2)</enum><header>Central air
conditioners</header><text>Section 25C(d)(3)(D) is amended by striking
<quote>2006</quote> and inserting <quote>2008</quote>.</text>
</paragraph><paragraph id="id96A91A27AC37420DA676CE53222DFB4E"><enum>(3)</enum><header>Water
Heaters</header><text>Subparagraph (E) of section 25C(d) is amended to read as
follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id24AD95E040B84F28A28B552401F71A30" reported-display-style="italic" style="OLC">
<subparagraph id="id21A8C092955245ED95FB53FA2E9ED100"><enum>(E)</enum><text>a natural gas, propane,
or oil water heater which has either an energy factor of at least 0.80 or a
thermal efficiency of at least 90
percent.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idDD919FE3E2964246A168C6BFB825E30C"><enum>(4)</enum><header>Oil furnaces and hot
water boilers</header><text>Paragraph (4) of section 25C(d) is amended to read
as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="id34E72E892DED4780BEBBEBD16C12C395" reported-display-style="italic" style="OLC">
<paragraph id="id8BC9B1311D8746339EB582584D6A1C5C"><enum>(4)</enum><header>Qualified natural gas,
propane, and oil furnaces and hot water boilers</header>
<subparagraph id="id2902454B444C4E109A6BA2C4D1433213"><enum>(A)</enum><header>Qualified natural gas
furnace</header><text>The term <term>qualified natural gas furnace</term> means
any natural gas furnace which achieves an annual fuel utilization efficiency
rate of not less than 95.</text>
</subparagraph><subparagraph id="id8283C147023249659A4F27037EA01332"><enum>(B)</enum><header>Qualified natural gas
hot water boiler</header><text>The term <term>qualified natural gas hot water
boiler</term> means any natural gas hot water boiler which achieves an annual
fuel utilization efficiency rate of not less than 90.</text>
</subparagraph><subparagraph id="idC140B36EE62D44638B4BEA50F1E9FAE6"><enum>(C)</enum><header>Qualified propane
furnace</header><text>The term <term>qualified propane furnace</term> means any
propane furnace which achieves an annual fuel utilization efficiency rate of
not less than 95.</text>
</subparagraph><subparagraph id="id5F760AC7ABC14D2D86B78F7781B42DE4"><enum>(D)</enum><header>Qualified propane hot
water boiler</header><text>The term <term>qualified propane hot water
boiler</term> means any propane hot water boiler which achieves an annual fuel
utilization efficiency rate of not less than 90.</text>
</subparagraph><subparagraph id="id371EC18D14464A4C84793C0D544454D3"><enum>(E)</enum><header>Qualified oil
furnaces</header><text>The term <term>qualified oil furnace</term> means any
oil furnace which achieves an annual fuel utilization efficiency rate of not
less than 90.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id4CA127DA857541C0B6F76B011FC7EB72"><enum>(F)</enum><header>Qualified oil hot water
boiler</header><text>The term <term>qualified oil hot water boiler</term> means
any oil hot water boiler which achieves an annual fuel utilization efficiency
rate of not less than
90.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H5FCD82BD62324C6E9BB96F8F6F07F9E6"><enum>(d)</enum><header>Effective
date</header><text>The amendments made this section shall apply to expenditures
made after December 31, 2007.</text>
</subsection></section><section commented="no" id="id939B5E3353194403A0AB36F1B2B5950B"><enum>1022.</enum><header>Extension and
modification of tax credit for energy efficient new homes</header>
<subsection commented="no" id="id00001A7EA14A4399B3D865B1B2C03851"><enum>(a)</enum><header>Extension of
credit</header><text display-inline="yes-display-inline">Subsection (g) of
section 45L (relating to termination) is amended by striking <quote>December
31, 2008</quote> and inserting <quote>December 31, 2010</quote>.</text>
</subsection><subsection id="id54723ACF06DE4FA689B8EC8117EA5F5F"><enum>(b)</enum><header>Allowance for
contractor's personal residence</header><text>Subparagraph (B) of section
45L(a)(1) is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="idF3A856C58ED047C189F92545542D73F2" reported-display-style="italic" style="OLC">
<subparagraph id="id73613528F4224F87B3D30BAD28D205DA"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="idE938313191744063816592E2EE4D7297"><enum>(i)</enum><text>acquired by a person
from such eligible contractor and used by any person as a residence during the
taxable year, or</text>
</clause><clause changed="added" id="id38270ACD2F3A4E0784ABA6AD36995CE3" indent="up1" reported-display-style="italic"><enum>(ii)</enum><text>used by such eligible
contractor as a residence during the taxable
year.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id4F4D815D24DC413D880CF69E85C64E2A"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to homes
acquired after December 31, 2008.</text>
</subsection></section><section commented="no" id="idAA7E21529A594F4081043DA43D502A11"><enum>1023.</enum><header>Extension and
modification of energy efficient commercial buildings deduction</header>
<subsection commented="no" id="id481CB54D3F294E028352C3BE95ECA684"><enum>(a)</enum><header>Extension</header><text>Section
179D(h) (relating to termination) is amended by striking <quote>December 31,
2008</quote> and inserting <quote>December 31, 2009</quote>.</text>
</subsection><subsection commented="no" id="id68F59D01A735403EA2E7FB824F5756E0"><enum>(b)</enum><header>Adjustment of maximum
deduction amount</header>
<paragraph commented="no" id="idD754A8F09DC04C189C3A277FB5EF938D"><enum>(1)</enum><header>In
general</header><text>Subparagraph (A) of section 179D(b)(1) (relating to
maximum amount of deduction) is amended by striking <quote>$1.80</quote> and
inserting <quote>$2.25</quote>.</text>
</paragraph><paragraph id="id80A95924C98F4813B0FFB7A55746155D"><enum>(2)</enum><header>Partial
allowance</header><text>Paragraph (1) of section 179D(d) is amended—</text>
<subparagraph id="id9378B974A80E40F8A948DFB8DB9AEA00"><enum>(A)</enum><text>by striking
<quote>$.60</quote> and inserting <quote>$0.75</quote>, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7E00A6AB838F450297F5E4DFF760EB81"><enum>(B)</enum><text>by striking
<quote>$1.80</quote> and inserting <quote>$2.25</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id69C6E19A1CA34425A3B1DBAAEBA3E1DA"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="HDFE751ABDF994511B735159DD5AA70C0" section-type="subsequent-section"><enum>1024.</enum><header>Modification and
extension of energy efficient appliance credit for appliances produced after
2007</header>
<subsection id="H8668A78BED85453C9BA5490008296380"><enum>(a)</enum><header>In
general</header><text>Subsection (b) of section 45M (relating to applicable
amount) is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H6CAF20EB7489483DAD1C3D70FCE3E305" reported-display-style="italic" style="OLC">
<subsection id="H0D36D5BC4C1748649E832CF06CC15843"><enum>(b)</enum><header>Applicable
amount</header><text>For purposes of subsection (a)—</text>
<paragraph id="H71B773AD1FE14A9AA8E80887FB855EAF"><enum>(1)</enum><header>Dishwashers</header><text>The
applicable amount is—</text>
<subparagraph id="H1FA05AD3DA714EBDB9C76309E0F626B7"><enum>(A)</enum><text>$45 in the case of a
dishwasher which is manufactured in calendar year 2008 or 2009 and which uses
no more than 324 kilowatt hours per year and 5.8 gallons per cycle, and</text>
</subparagraph><subparagraph id="H53B2F95E74184C939C462E05188443CB"><enum>(B)</enum><text>$75 in the case of a
dishwasher which is manufactured in calendar year 2008, 2009, or 2010 and which
uses no more than 307 kilowatt hours per year and 5.0 gallons per cycle (5.5
gallons per cycle for dishwashers designed for greater than 12 place
settings).</text>
</subparagraph></paragraph><paragraph id="H3E6CB6C6BC8F4CACB45FC07B7F00407F"><enum>(2)</enum><header>Clothes
washers</header><text>The applicable amount is—</text>
<subparagraph id="H67C62CD8131141E9987984277B3FAA53"><enum>(A)</enum><text>$75 in the case of a
residential top-loading clothes washer manufactured in calendar year 2008 which
meets or exceeds a 1.72 modified energy factor and does not exceed a 8.0 water
consumption factor,</text>
</subparagraph><subparagraph id="HD9FCE4EEBB1E45D0AA028B09865D9BA7"><enum>(B)</enum><text>$125 in the case of a
residential top-loading clothes washer manufactured in calendar year 2008 or
2009 which meets or exceeds a 1.8 modified energy factor and does not exceed a
7.5 water consumption factor,</text>
</subparagraph><subparagraph id="H45297A51D21C433F80E786BA7181B474"><enum>(C)</enum><text>$150 in the case of a
residential or commercial clothes washer manufactured in calendar year 2008,
2009, or 2010 which meets or exceeds 2.0 modified energy factor and does not
exceed a 6.0 water consumption factor, and</text>
</subparagraph><subparagraph id="H29C4114B024149AC991890D4B6821CAE"><enum>(D)</enum><text>$250 in the case of a
residential or commercial clothes washer manufactured in calendar year 2008,
2009, or 2010 which meets or exceeds 2.2 modified energy factor and does not
exceed a 4.5 water consumption factor.</text>
</subparagraph></paragraph><paragraph id="H1A02980D41254D5698A61999ACFC9F2F"><enum>(3)</enum><header>Refrigerators</header><text>The
applicable amount is—</text>
<subparagraph id="H85E3F47F90544A4DB62BCF7B083E81F2"><enum>(A)</enum><text>$50 in the case of a
refrigerator which is manufactured in calendar year 2008, and consumes at least
20 percent but not more than 22.9 percent less kilowatt hours per year than the
2001 energy conservation standards,</text>
</subparagraph><subparagraph id="H3137E5EBEE1C421E9038AF74F37662E"><enum>(B)</enum><text>$75 in the case of a
refrigerator which is manufactured in calendar year 2008 or 2009, and consumes
at least 23 percent but no more than 24.9 percent less kilowatt hours per year
than the 2001 energy conservation standards,</text>
</subparagraph><subparagraph id="HB6105C96A9C542D2896BBF1E9E7EA13F"><enum>(C)</enum><text>$100 in the case of a
refrigerator which is manufactured in calendar year 2008, 2009, or 2010, and
consumes at least 25 percent but not more than 29.9 percent less kilowatt hours
per year than the 2001 energy conservation standards, and</text>
</subparagraph><subparagraph id="H8ACA1828E0AB423F8806E3A842907DB"><enum>(D)</enum><text>$200 in the case of a
refrigerator manufactured in calendar year 2008, 2009, or 2010 and which
consumes at least 30 percent less energy than the 2001 energy conservation
standards.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5542BADAAF054FD786C5F6791223822E"><enum>(b)</enum><header>Eligible
production</header>
<paragraph id="HD64B4341DF7242E4A9335357CA5921AC"><enum>(1)</enum><header>Similar treatment for
all appliances</header><text>Subsection (c) of section 45M (relating to
eligible production) is amended—</text>
<subparagraph id="HFA9519AF9B3F4FD29B3EFFF7E01CEB44"><enum>(A)</enum><text>by striking paragraph
(2),</text>
</subparagraph><subparagraph id="H07FA5F82AE2348C49553DB6051F8BC8"><enum>(B)</enum><text>by striking <quote>(1)
<header-in-text level="paragraph" style="OLC">In
general</header-in-text></quote> and all that follows through <quote>the
eligible</quote> and inserting <quote>The eligible</quote>, and</text>
</subparagraph><subparagraph id="H12434A20BF9948CE9F9B7B5E50C9F84"><enum>(C)</enum><text>by moving the text of
such subsection in line with the subsection heading and redesignating
subparagraphs (A) and (B) as paragraphs (1) and (2), respectively.</text>
</subparagraph></paragraph><paragraph id="H50E4EC2730A14C7181AD52ADB59D6C03"><enum>(2)</enum><header>Modification of base
period</header><text>Paragraph (2) of section 45M(c), as amended by paragraph
(1) of this section, is amended by striking <quote>3-calendar year</quote> and
inserting <quote>2-calendar year</quote>.</text>
</paragraph></subsection><subsection id="H130C7D2D1BD9446100AEBF00FB98E558"><enum>(c)</enum><header>Types of energy
efficient appliances</header><text>Subsection (d) of section 45M (defining
types of energy efficient appliances) is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H5EBFAB2EABEC4A8397CF9401AAF3C477" reported-display-style="italic" style="OLC">
<subsection id="H87BCB9A5931C4F34A486A84F5703B2A2"><enum>(d)</enum><header>Types of energy
efficient appliance</header><text display-inline="yes-display-inline">For
purposes of this section, the types of energy efficient appliances are—</text>
<paragraph id="H0638FB66088849E3897207CDFB21FD04"><enum>(1)</enum><text>dishwashers described in
subsection (b)(1),</text>
</paragraph><paragraph id="H95AEA4C87AD14158B88890651D246694"><enum>(2)</enum><text>clothes washers described
in subsection (b)(2), and</text>
</paragraph><paragraph id="H7795DEFFF5B74A38A0DBFBE000007D34"><enum>(3)</enum><text>refrigerators described
in subsection
(b)(3).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H0CDCEDFF3B1B4199AD5BF3FF688F79C2"><enum>(d)</enum><header>Aggregate credit amount
allowed</header>
<paragraph id="H2D36C9367AD247DCA1F536D79F3C69ED"><enum>(1)</enum><header>Increase in
limit</header><text>Paragraph (1) of section 45M(e) (relating to aggregate
credit amount allowed) is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H8D18A14B8FED4067009694C7D6B0097" reported-display-style="italic" style="OLC">
<paragraph id="HAB44B6ED41AE429BBF7EAA8B8F479423"><enum>(1)</enum><header>Aggregate credit amount
allowed</header><text display-inline="yes-display-inline">The aggregate amount
of credit allowed under subsection (a) with respect to a taxpayer for any
taxable year shall not exceed $75,000,000 reduced by the amount of the credit
allowed under subsection (a) to the taxpayer (or any predecessor) for all prior
taxable years beginning after December 31,
2007.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H7007A40913054256B434CEA3832CDD7B"><enum>(2)</enum><header>Exception for certain
refrigerator and clothes washers</header><text>Paragraph (2) of section 45M(e)
is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HC0F284CACDBE47F2A50006BB49B2D1A2" reported-display-style="italic" style="OLC">
<paragraph id="H6A3FD5CC2F7847509B46FFAC74A19CD7"><enum>(2)</enum><header>Amount allowed for
certain refrigerators and clothes washers</header><text display-inline="yes-display-inline">Refrigerators described in subsection
(b)(3)(D) and clothes washers described in subsection (b)(2)(D) shall not be
taken into account under paragraph
(1).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HF847F34654D14A1EAE4475D45091BA05"><enum>(e)</enum><header>Qualified energy
efficient appliances</header>
<paragraph id="HE604C091C15B4FD78587E483005F0203"><enum>(1)</enum><header>In
general</header><text>Paragraph (1) of section 45M(f) (defining qualified
energy efficient appliance) is amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HF95585582BE847069427B8CD7F48C0F9" reported-display-style="italic" style="OLC">
<paragraph id="HBA6339B03E5D4E679DC38FB8A00019BC"><enum>(1)</enum><header>Qualified energy
efficient appliance</header><text display-inline="yes-display-inline">The term
<term>qualified energy efficient appliance</term> means—</text>
<subparagraph id="H3D5B8FC5768F481D8BCBCE00F98B009E"><enum>(A)</enum><text display-inline="yes-display-inline">any dishwasher described in subsection
(b)(1),</text>
</subparagraph><subparagraph id="H7CA629012AF74B7F91251D95007CE5B8"><enum>(B)</enum><text>any clothes washer
described in subsection (b)(2), and</text>
</subparagraph><subparagraph id="H2630530465BB427FA39655CE51454DB"><enum>(C)</enum><text>any refrigerator
described in subsection
(b)(3).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HDDFCB52435574B7D97B5BD73CCD00F2"><enum>(2)</enum><header>Clothes
washer</header><text>Section 45M(f)(3) (defining clothes washer) is amended by
inserting <quote>commercial</quote> before <quote>residential</quote> the
second place it appears.</text>
</paragraph><paragraph id="H2698E84BAA4A4B24A0EC134701C94708"><enum>(3)</enum><header>Top-loading clothes
washer</header><text>Subsection (f) of section 45M (relating to definitions) is
amended by redesignating paragraphs (4), (5), (6), and (7) as paragraphs (5),
(6), (7), and (8), respectively, and by inserting after paragraph (3) the
following new paragraph:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="H605D54813A77429EA6A273E03964B34" reported-display-style="italic" style="OLC">
<paragraph id="HE3A7675A57D646E1AFC4C6B0A4060700"><enum>(4)</enum><header>Top-loading clothes
washer</header><text display-inline="yes-display-inline">The term
<quote>top-loading clothes washer</quote> means a clothes washer which has the
clothes container compartment access located on the top of the machine and
which operates on a vertical
axis.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HAE7CCC35820A43D884513244F4B6A6BD"><enum>(4)</enum><header>Replacement of energy
factor</header><text>Section 45M(f)(6), as redesignated by paragraph (3), is
amended to read as follows:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HF41F7B8F5613499EB0AF4EC3EF007573" reported-display-style="italic" style="OLC">
<paragraph id="H77C55FAF2AFE40E28B16CA17D0B8254B"><enum>(6)</enum><header>Modified energy
factor</header><text display-inline="yes-display-inline">The term
<term>modified energy factor</term> means the modified energy factor
established by the Department of Energy for compliance with the Federal energy
conservation
standard.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H15188DE32F914C158FA186D330727321"><enum>(5)</enum><header>Gallons per cycle;
water consumption factor</header><text>Section 45M(f) (relating to
definitions), as amended by paragraph (3), is amended by adding at the end the
following:</text>
<quoted-block changed="added" display-inline="no-display-inline" id="HBE15AD7ACA8744BAB809CE66EF847670" reported-display-style="italic" style="OLC">
<paragraph id="H3BACA5DF23794C96BC1D76E883ABFBB2"><enum>(9)</enum><header>Gallons per
cycle</header><text display-inline="yes-display-inline">The term <term>gallons
per cycle</term> means, with respect to a dishwasher, the amount of water,
expressed in gallons, required to complete a normal cycle of a
dishwasher.</text>
</paragraph><paragraph id="H951E82F0A69649C694B95183D5C3555D"><enum>(10)</enum><header>Water consumption
factor</header><text display-inline="yes-display-inline">The term <term>water
consumption factor</term> means, with respect to a clothes washer, the quotient
of the total weighted per-cycle water consumption divided by the cubic foot (or
liter) capacity of the clothes
washer.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H34F0CDB6C6914FEFA8C6BE81006D99D9"><enum>(f)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to appliances produced after December 31, 2007.</text>
</subsection></section></subtitle><enum>XI</enum><header>Sense of the
Senate</header>
<section id="id1E0E2B52FBF44F3BA2603FED6EB913A5"><enum>1101.</enum><header>Sense of the
Senate</header><text display-inline="no-display-inline">It is the sense of the
Senate that in implementing or carrying out any provision of this Act, or any
amendment made by this Act, the Senate supports a policy of noninterference
regarding local government requirements that the holder of a foreclosed
property maintain that property.</text>
</section>
Amend the title so as to read: An Act to
provide needed housing reform and for other
purposes.
.
Secretary