I 111th CONGRESS 2d Session H. R. 6079 IN THE HOUSE OF REPRESENTATIVES August 9, 2010 Mr. Polis of Colorado introduced the following bill; which was referred to the Committee on Financial Services A BILL To facilitate affordable workforce homeownership in, and develop the full-time resident communities of, resort areas, and for other purposes.

1.

Short title

This Act may be cited as the Workforce Housing Opportunity Simplification Act of 2010.

2.

Inapplicability of certain Fannie Mae and Freddie Mac guidelines to affordable workforce housing mortgages

(a)

Fannie Mae

Subsection (b) of section 302 of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)) is amended by adding at the end the following new paragraph: (7)

Mortgages for affordable workforce housing

(A)

Exemptions from guidelines

Notwithstanding any other provision of law— (i)the corporation may purchase, service, sell, lend on the security of, and otherwise deal in any affordable workforce housing mortgage; (ii)any requirements and guidelines of the corporation that are inconsistent with the authority under clause (i) and with the duty of the corporation under section 1335(a)(1)(D) of the Housing and Community Development Act of 1992 to serve the market for affordable workforce housing mortgages shall not apply to any affordable workforce housing mortgage; and (iii)the corporation may not establish or utilize, with respect to any affordable workforce housing mortgage, any limitation on the maximum amount of the principal obligation of the mortgage that is based upon the appraised value of the property subject to the mortgage unless such limitation is based on such appraised value without consideration of the resale restrictions on the property described in subparagraph (B)(i)(III). (B)

Affordable workforce housing mortgages

For purposes of this paragraph, the term affordable workforce housing mortgage means a mortgage that meets the following requirements: (i)

Property

The mortgage shall be made for the purchase of, and secured by, a one-family residence that— (I)shall be used as the residence of the mortgagor for not less than 8 of any 12 months and 240 days of any 365 days; (II)is located within or is part of a multifamily housing development consisting of 5 or more dwelling units or a mixed-use development that is not less than 50 percent residential, as defined in the legal description of the property in the purchase contract or mortgage or title documents relating to such purchase; (III)is subject to resale restrictions that— (aa)are recorded with the appropriate public registry for recording of titles and interests in real estate; and (bb)terminate upon foreclosure or execution of any deed-in-lieu-of-foreclosure; and (IV)is located in a resort county. (ii)

Mortgagor income

The household of the mortgagor shall have a gross household income— (I)that does not exceed 160 percent of the area median income, as determined and updated by the Secretary of Housing and Urban Development or the Director of the Federal Housing Finance Agency on an annual basis; and (II)not less than 75 percent of which is earned from positions the discharge of whose duties involved physical presence in one or more resort counties. (iii)

Employment

The mortgagor or another member of the mortgagor’s household— (I)has been employed, during the 6-month period ending upon execution of the mortgage, in a position or multiple positions the discharge of whose duties involved physical presence in one or more resort counties, in the aggregate, for an average of not less than 30 hours per weeks; (II)is employed at the time of the execution of the mortgage in a position or multiple positions the discharge of whose duties involve physical presence in one or more resort counties, in the aggregate, for an average of not less than 30 hours per week and the duration of such employment in such position is expected to last at least 6 months; (III)is 60 years of age or older and, during the 5-year period ending up the mortgagor’s retirement from employment was employed in a position or positions the discharge of whose duties involved physical presence in one or more resort counties for— (aa)an average of not less than 30 hours per week; and (bb)for not less than 8 months per year; (IV)is a person with disabilities (as such term is defined in section 811(k) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013)) who— (aa)was employed, during the 2-year period ending upon becoming disabled, in a position or positions described in subclause (I) or (II); or (bb)is employed in a position or positions described in subclause (I) or (II), except that the 30-hour requirement under such subclauses shall not apply to such person if— (AA)compliance with such requirement would make such person ineligible for benefits made available for persons with disabilities through a program of any State agency for developmental disabilities or through the supplemental security income program under title XVI of the Social Security Act; and (BB)such person works the maximum number of hours per week allowable for eligibility for benefits under such program; or (V)is the head of household in a household that includes one or more dependents, at least one of whom is at the time of the execution of the mortgage 5 years of age or younger or is enrolled full-time in a school in a resort county. (iv)

Conforming loan

The original principal obligation of the mortgage shall comply with the applicable dollar amount limitations established pursuant to paragraph (2). (C)

Resort county

For purposes of this paragraph, the term resort county means Eagle County, Grand County, and Summit County, in the State of Colorado. . (b)

Freddie Mac

Subsection (a) of section 305 of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)) is amended by adding at the end the following new paragraph: (6)

Mortgages for affordable workforce housing

(A)

Exemptions from guidelines

Notwithstanding any other provision of law— (i)the Corporation may purchase, service, sell, lend on the security of, and otherwise deal in any affordable workforce housing mortgage; (ii)any requirements and guidelines of the Corporation that are inconsistent with the authority under clause (i) and with the duty of the Corporation under section 1335(a)(1)(D) of the Housing and Community Development Act of 1992 to serve the market for affordable workforce housing mortgages shall not apply to any affordable workforce housing mortgage; and (iii)the Corporation may not establish or utilize, with respect to any affordable workforce housing mortgage, any limitation on the maximum amount of the principal obligation of the mortgage that is based upon the appraised value of the property subject to the mortgage unless such limitation is based on such appraised value without consideration of the resale restrictions on the property described in subparagraph (B)(i)(III). (B)

Affordable workforce housing mortgages

For purposes of this paragraph, the term affordable workforce housing mortgage means a mortgage that meets the following requirements: (i)

Property

The mortgage shall be made for the purchase of, and secured by, a one-family residence that— (I)shall be used as the residence of the mortgagor for not less than 8 of any 12 months and 240 days of any 365 days; (II)is located within or is part of a multifamily housing development consisting of 5 or more dwelling units or a mixed-use development that is not less than 50 percent residential, as defined in the legal description of the property in the purchase contract or mortgage or title documents relating to such purchase; (III)is subject to resale restrictions that— (aa)are recorded with the appropriate public registry for recording of titles and interests in real estate; and (bb)terminate upon foreclosure or execution of any deed-in-lieu-of-foreclosure; and (IV)is located in a resort county. (ii)

Mortgagor income

The household of the mortgagor shall have a gross household income— (I)that does not exceed 160 percent of the area median income, as determined and updated by the Secretary of Housing and Urban Development or the Director of the Federal Housing Finance Agency on an annual basis; and (II)not less than 75 percent of which is earned from positions the discharge of whose duties involved physical presence in one or more resort counties. (iii)

Employment

The mortgagor or another member of the mortgagor’s household— (I)has been employed, during the 6-month period ending upon execution of the mortgage, in a position or multiple positions the discharge of whose duties involved physical presence in one or more resort counties, in the aggregate, for an average of not less than 30 hours per weeks; (II)is employed at the time of the execution of the mortgage in a position or multiple positions the discharge of whose duties involve physical presence in one or more resort counties, in the aggregate, for an average of not less than 30 hours per week and the duration of such employment in such position is expected to last at least 6 months; (III)is 60 years of age or older and, during the 5-year period ending up the mortgagor’s retirement from employment was employed in a position or positions the discharge of whose duties involved physical presence in one or more resort counties for— (aa)an average of not less than 30 hours per week; and (bb)for not less than 8 months per year; (IV)is a person with disabilities (as such term is defined in section 811(k) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013)) who— (aa)was employed, during the 2-year period ending upon becoming disabled, in a position or positions described in subclause (I) or (II); or (bb)is employed in a position or positions described in subclause (I) or (II), except that the 30-hour requirement under such subclauses shall not apply to such person if— (AA)compliance with such requirement would make such person ineligible for benefits made available for persons with disabilities through a program of any State agency for developmental disabilities or through the supplemental security income program under title XVI of the Social Security Act; and (BB)such person works the maximum number of hours per week allowable for eligibility for benefits under such program; or (V)is the head of household in a household that includes one or more dependents, at least one of whom is at the time of the execution of the mortgage 5 years of age or younger or is enrolled full-time in a school in a resort county. (iv)

Conforming loan

The original principal obligation of the mortgage shall comply with the applicable dollar amount limitations established pursuant to paragraph (2). (C)

Resort county

For purposes of this paragraph, the term resort county means Eagle County, Grand County, and Summit County, in the State of Colorado. .

3.

Duty of Fannie Mae and Freddie Mac to serve market for affordable workforce housing

(a)

Establishment

Paragraph (1) of section 1335(a) of the Housing and Community Development Act of 1992 (12 U.S.C. 4565(a)(1)) is amended by adding at the end the following new subparagraph: (D)

Affordable workforce housing

The enterprises shall develop loan products and flexible underwriting guidelines to facilitate a secondary market for affordable workforce housing mortgages (as such term is defined in section 305(a)(6) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(6))). Such underwriting guidelines shall include the following considerations: (i)

Owner-occupancy requirement

The guidelines shall require that not less than 25 percent of the dwelling units in the multifamily housing development in which the one-family residence securing an affordable workforce housing mortgage is located shall be owner-occupied. The requirement under this clause shall be considered to be complied with, with respect to a development, unless verifiable public records indicate an owner-occupancy rate for the development of less than 25 percent. (ii)

Short-term rentals

The guidelines shall provide that the multifamily housing development in which the one-family residence securing an affordable workforce housing mortgage is located may include dwelling units that are used for the sole purpose of short-term rentals. (iii)

Amenities

The guidelines shall provide that the multifamily housing development in which the one-family residence securing an affordable workforce housing mortgage is located may provide such services as a staffed front desk, a concierge, or other amenities consistent with providing customer service for non-owner occupied or short-term rental units in the development, including marketing that describes the property as a lodge, resort, or other similar facility. (iv)

Energy metering

The guidelines shall provide that the enterprises may not consider whether the multifamily housing development in which the one-family residence securing an affordable workforce housing mortgage is located provides individual or centralized metering for energy use of the constituent dwelling units. . (b)

Transition

The amendment made by subsection (a) shall apply with respect to the first calendar year beginning more than 180 days after the date of the enactment of this Act. (c)

Regulations

The Director of the Federal Housing Finance Agency shall, not later than the expiration of the 180-day period beginning on the date of the enactment of this Act, amend and revise the regulations issued under section 1335(d)(1) of the Housing and Community Development Act of 1992 as necessary to establish a manner for evaluating whether, and the extent to which, the enterprises have complied with the duty under section 1335(a)(1)(D) of such Act (as added by subsection (a) of this section) and for rating the extent of such compliance.