[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1997 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 1997

  To allow investor participation in the loan rehabilitation program 
      authorized under section 203(k) of the National Housing Act.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 15, 2013

 Mr. McKeon (for himself and Mr. Peters of California) introduced the 
   following bill; which was referred to the Committee on Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
  To allow investor participation in the loan rehabilitation program 
      authorized under section 203(k) of the National Housing Act.

    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 ``Communities Achieving Sustainability 
Act''.

SEC. 2. INVESTOR PARTICIPATION IN FHA REHABILITATION PROGRAM.

    (a) Investor Participation.--
            (1) In general.--The Secretary shall, upon application by a 
        mortgagee and approval of such application by the Secretary, 
        insure and make commitments to insure rehabilitation loans 
        (including advances made during rehabilitation) which are 
        eligible for insurance under section 203(k) of the National 
        Housing Act (12 U.S.C. 1709) made by financial institutions in 
        order to assist in the rehabilitation of 1- to 4-family 
        structures used primarily for residential purposes.
            (2) Eligible mortgagors.--Notwithstanding any other 
        provision of law or regulation, such rehabilitation loans 
        insured pursuant to this Act shall involve a mortgagor who is 
        an investor.
    (b) Terms and Conditions.--Such commitments to insure and such 
insurance shall be made upon such terms and conditions which the 
Secretary may prescribe pursuant to this Act and which are consistent 
with the provisions of subsections (b), (c), (e), (i), (j), and (k) of 
section 203 of the National Housing Act (12 U.S.C. 1709 (b), (c), (e), 
(i), (j), and (k)), except as modified by the provisions of this Act.
    (c) Maximum Loan Commitment.--To be eligible for insurance under 
this Act, a mortgage shall not exceed 90 percent of the appraised value 
of the 1- to 4-family structure subject to such mortgage.
    (d) Calendar Year Limitation.--The Secretary may insure, or enter 
into a commitment to insure, up to four 1- to 4-family structures for 
an investor described in subsection (a)(2) during a calendar year.
    (e) Mortgage Premium.--The single premium payment required under 
section 203(k)(2)(A) of the National Housing Act (12 U.S.C. 
1709(k)(2)(A)) shall be increased by 10 basis points for any mortgage 
insured pursuant to this Act.
    (f) Definitions.--In this Act:
            (1) Investor.--
                    (A) In general.--The term ``investor'' means a 
                person who--
                            (i) obtains a rehabilitation loan for a 
                        structure described in subsection (a)(1) for 
                        the purpose of appreciation or production of 
                        income with respect to such structure; and
                            (ii) does not intend on occupying such 
                        structure.
                    (B) Person defined.--As used in this subparagraph, 
                the term ``person'' has the meaning given such term in 
                section 551(2) of title 5, United States Code.
            (2) Mortgagee; mortgagor; mortgage.--The terms 
        ``mortgagee'', ``mortgagor'', and ``mortgage'' have the same 
        meanings as given such terms in section 201 of the National 
        Housing Act (12 U.S.C. 1707).

SEC. 3. SUNSET PROVISION.

    The provisions of this Act shall terminate on the date that is 2 
years following the date of the enactment of this Act and the Secretary 
shall not approve any application described in section 2(a)(1) 
submitted after the conclusion of such 2-year period.
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