[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5361 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5361

  To amend section 1333 of the Federal Housing Enterprises Financial 
  Safety and Soundness Act of 1992 to ensure that multifamily housing 
  mortgage purchases by Fannie Mae and Freddie Mac that are credited 
 toward fulfillment of such enterprises multifamily special affordable 
    housing goal increase or preserve the number of dwelling units 
                   affordable to low-income families.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 20, 2010

 Mrs. Maloney (for herself, Mr. Nadler of New York, Ms. Velazquez, and 
    Mr. Meeks of New York) introduced the following bill; which was 
            referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
  To amend section 1333 of the Federal Housing Enterprises Financial 
  Safety and Soundness Act of 1992 to ensure that multifamily housing 
  mortgage purchases by Fannie Mae and Freddie Mac that are credited 
 toward fulfillment of such enterprises multifamily special affordable 
    housing goal increase or preserve the number of dwelling units 
                   affordable to low-income families.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Responsible GSE Affordable Housing 
Investment Act of 2010''.

SEC. 2. COMPLIANCE WITH MULTIFAMILY SPECIAL AFFORDABLE HOUSING GOAL.

    (a) In General.--Subsection (d) of section 1333 of the Federal 
Housing Enterprises Financial Safety and Soundness Act of 1992 (12 
U.S.C. 4563) is amended--
            (1) by striking the subsection designation and all that 
        follows through ``The Director'' and inserting the following:
    ``(d) Determination of Compliance.--
            ``(1) In general.--The Director''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Reduction of credit for conversion to non-affordable 
        units.--The Director shall, by regulation, establish standards 
        for the multifamily special affordable housing goal under this 
        section that proportionately reduce the number of units 
        receiving credit for any mortgage purchase by an enterprise 
        that facilitates the conversion of dwelling units that, at the 
        time of such purchase, are available for rental at rates that 
        are affordable to low-income families to dwelling units that 
        would not be affordable to low-income families. Such 
        regulations shall consider and include the following factors:
                    ``(A) Limitation based on project debt.--Credit 
                shall not be provided toward the achievement of such 
                goal for any mortgage purchase for multifamily housing 
                that involves an aggregate amount of project debt that 
                is not reasonable, as determined in accordance with 
                prudent underwriting standards established by the 
                Director, in proportion to project income, as 
                documented in accordance with the standards established 
                under this subsection.
                    ``(B) Treatment of securities.--In the case of any 
                purchase by an enterprise of a security, or an interest 
                in a security, that is backed by mortgages that finance 
                units that would otherwise qualify for credit toward 
                the achievement of the multifamily special affordable 
                housing goal if financed directly by the enterprise, if 
                the Director determines that such purchase may be 
                counted toward the achievement of the goal under this 
                section, the Director shall require the enterprise to 
                apply the same standard as set forth in subparagraph 
                (A) with respect to mortgage purchases to the mortgages 
                backing such security to determine whether the units 
                financed by such mortgages are eligible for credit 
                toward the achievement of the housing goal.
                    ``(C) Rent levels.--In measuring the performance of 
                each enterprise in meeting the goal established under 
                this section, rent levels for units shall be calculated 
                by using the greater of the rent levels at the time the 
                loan is purchased or the rent levels under the pro 
                forma operating income statement on which the 
                underwriting for the loan was based.
                    ``(D) Carryover.--If the Director provides credit 
                toward the achievement of the multifamily special 
                affordable housing goal under this section, for any 
                year, for any mortgage purchase by an enterprise, but 
                determines at any time thereafter that, because of 
                failure to comply with the standards established under 
                subparagraphs (A) and (B), such purchase does not 
                qualify for such credit or does not qualify for such 
                credit to the extent previously provided, the Director 
                shall increase the multifamily special housing goal for 
                such enterprise for the current or ensuing year 
                otherwise applicable to the extent of such 
                nonqualification.''.
    (b) Regulations.--The Director of the Federal Housing Finance 
Agency shall issue regulations required under paragraph (2) of section 
1333(d) of the Federal Housing Enterprises Financial Safety and 
Soundness Act of 1992, as added by subsection (a) of this section, not 
later than the expiration of the 180-day period beginning upon the date 
of the enactment of this Act.
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