[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1297 Introduced in House (IH)]
114th CONGRESS
1st Session
H. R. 1297
To amend the Robert T. Stafford Disaster Relief and Emergency
Assistance Act to provide assistance for housing cooperatives damaged
by a major disaster, to provide relief to homeowners affected by major
disasters who have mortgages insured by the FHA or owned or guaranteed
by Fannie Mae or Freddie Mac, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 4, 2015
Mr. Jeffries introduced the following bill; which was referred to the
Committee on Financial Services, and in addition to the Committee on
Transportation and Infrastructure, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Robert T. Stafford Disaster Relief and Emergency
Assistance Act to provide assistance for housing cooperatives damaged
by a major disaster, to provide relief to homeowners affected by major
disasters who have mortgages insured by the FHA or owned or guaranteed
by Fannie Mae or Freddie Mac, and for other purposes.
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 ``Disaster Response Reform Act of
2015''.
TITLE I--FEMA DISASTER ASSISTANCE TO INDIVIDUALS AND HOUSEHOLDS
SEC. 101. HOUSING UNITS IN HOUSING COOPERATIVES.
(a) Housing Cooperative Defined.--Section 102 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122)
is amended by adding at the end the following:
``(13) Housing cooperative.--The term `housing cooperative'
means a multi-unit housing project in which each dwelling unit
is subject to separate use and possession by one or more
cooperative members whose interest in such unit, and in any
undivided assets of the cooperative association that are
appurtenant to such unit, is evidenced by a membership or share
interest in a cooperative association and a lease or other
document of title or possession granted by such cooperative as
the owner of all cooperative property.''.
(b) Major Disaster Assistance to Individuals and Households.--
Section 408(c) of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5174(c)) is amended by adding at the end the
following:
``(5) Housing cooperatives.--
``(A) Damaged housing units.--In carrying out
paragraphs (2) and (3), the President shall--
``(i) treat an owner-occupied housing unit
of a housing cooperative in the same manner as
an owner-occupied private residence; and
``(ii) provide financial assistance for
owner-occupied housing units of housing
cooperatives on a unit-by-unit basis.
``(B) Essential living items.--
``(i) Eligibility for financial
assistance.--The President may provide
financial assistance under paragraphs (2) and
(3) in connection with essential living items
that are owned by the association for a housing
cooperative and located in an owner-occupied
housing unit of the housing cooperative.
``(ii) Procedures.--
``(I) In general.--The President
shall establish procedures for
providing assistance under clause (i).
The procedures shall ensure that
essential services in individual
housing units of housing cooperatives
are promptly restored following a major
disaster and such units are returned to
a safe and sanitary living or
functioning condition.
``(II) Recipients of assistance.--
Under such procedures, the President
may provide financial assistance
directly to residents of owner-occupied
housing units of a housing cooperative
or to the association for the housing
cooperative.
``(C) Essential living item defined.--In this
paragraph, the term `essential living item' means those
items necessary to return a residence to a safe and
sanitary living or functioning condition.''.
(c) Applicability.--The amendment made by subsection (b) shall
apply to a major disaster declared by the President under section 401
of the Robert T. Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5170) after the date of enactment of this Act.
SEC. 102. PERSONAL PROPERTY IN BASEMENTS.
(a) In General.--Section 408(c) of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5174(c)) is further
amended by adding at the end the following:
``(6) Personal property in basements.--
``(A) Financial assistance for damaged personal
property.--In carrying out paragraphs (2) and (3), the
President shall provide financial assistance in
connection with personal property that is damaged in a
major disaster and is located in the basement of an
owner-occupied private residence in the same manner and
to the same extent as personal property that is damaged
in a major disaster and is located in any other portion
of the residence.
``(B) Basement defined.--In this paragraph, the
term `basement' means an enclosed area of a dwelling
where any portion of the exterior wall or concrete
floor is below grade.''.
(b) Applicability.--The amendment made by subsection (a) shall
apply to a major disaster declared by the President under section 401
of the Robert T. Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5170) after the date of enactment of this Act.
TITLE II--MORTGAGE RELIEF FOR HOMEOWNERS IN DISASTER AREAS
SEC. 201. 90-DAY MORATORIUM ON FORECLOSURES.
(a) Minimum Requirement.--Each applicable agency head (as such term
is defined in section 204) shall prohibit mortgagees and servicers
under covered mortgages from initiating any foreclosure, whether
judicial or nonjudicial, or taking any action in furtherance of a
foreclosure already commenced, including conducting any foreclosure
sale, with respect to the covered mortgage during the 90-day period
that begins upon the Presidential declaration of the disaster referred
to in section 204(2)(A)(ii) with respect to such mortgage.
(b) Additional Relief.--Subsection (a) may not be construed to
prevent or prohibit an applicable agency head from extending the period
specified in such subsection or taking any other relief or forbearance
action with respect to covered mortgages.
SEC. 202. REQUIREMENT TO OFFER FORBEARANCE TO AFFECTED HOMEOWNERS.
(a) Notification.--Each applicable agency head shall require each
mortgagee of a covered mortgage to notify the mortgagor under the
mortgage, in writing, not later than the expiration of the 45-day
period that begins upon the Presidential declaration of the disaster
referred to in section 204(2)(A)(ii) with respect to such mortgage, and
in such form as the applicable agency heads shall require pursuant to
guidelines issued under section 205--
(1) that the mortgage is a covered mortgage that may be
eligible for forbearance relief under this section;
(2) of the requirements for eligible homeowners to qualify
for such relief;
(3) of the terms of such relief;
(4) of what action the mortgagor must take to request such
relief;
(5) that the mortgagor and the mortgagee can agree to terms
of forbearance in lieu of or in addition to forbearance relief
that may be required under this section to be offered to the
mortgagor; and
(6) how to contact the mortgagee regarding such additional
or alternative relief.
(b) Request for Relief.--The applicable agency heads shall, by
guidelines issued under section 205, provide for mortgagors under
covered mortgages to submit requests, during the 90-day period
beginning upon the expiration of the notification period under
subsection (a), to the mortgagees of such mortgages for forbearance
relief under this section.
(c) Determination.--Upon receipt of a request made by a mortgagor
under a covered mortgage for forbearance relief under this section that
is submitted during the period referred to in subsection (b), the
mortgagee shall promptly determine whether the mortgagor is an eligible
homeowner and immediately notify the mortgagor in writing of such
determination.
(d) Requirement To Offer Forbearance.--If, pursuant to a request
for relief submitted pursuant to subsection (b) with respect to a
covered mortgage, the mortgagee for the mortgage determines that the
mortgagor under the mortgage is an eligible homeowner, the mortgagee
shall, together with the notification required under subsection (c)
submit to the eligible homeowner--
(1) a written offer for forbearance that meets the
requirements of subsection (e);
(2) an explanation of the terms of such offer and when such
offer will expire;
(3) an explanation of what action the mortgagor must take
to accept such offer;
(4) notification that the mortgagor and the mortgagee can
agree to terms of forbearance in lieu of or in addition to
forbearance relief required under this section to be offered to
the mortgagor; and
(5) how to contact the mortgagee regarding such additional
or alternative relief.
(e) Terms of Forbearance.--
(1) In general.--An offer for forbearance with respect to a
covered mortgage meets the terms of this subsection only if--
(A) the forbearance provides--
(i) for the suspension of payments due
under the mortgage for a period that--
(I) has a duration that is not
shorter than 6 months; and
(II) begins after the declaration
of the major disaster referred to in
section 204(2)(A)(ii) but not later
than 120 days after such declaration,
and may cover periods for which
payments due under the mortgage were
not paid that occurred before the offer
for relief under this section was
accepted; and
(ii) for recoupment of any arrearage of
amounts due under the mortgage resulting from
forbearance to by increasing the monthly
payments due under the mortgage after the
expiration of the forbearance period by an
amount not exceeding 5 percent of the monthly
amount that would otherwise be due for such
month under the original terms of the mortgage;
and
(B) the offer provides for forbearance and terms,
requirements, and procedures for such forbearance that
otherwise comply with guidelines issued by the
Secretary and the Director pursuant to paragraph (2) of
this subsection.
(2) Establishment of terms.--The applicable agency heads
shall, by guidelines issued pursuant to section 205, provide
for the terms, requirements, and procedures for forbearance
offered under this section.
(f) Other Forbearance.--
(1) Agreements between mortgagor and mortgagee.--This
section may not be construed to prevent an eligible homeowner
and the mortgagee for the covered mortgage of such eligible
homeowner from agreeing to any other forms or terms of
forbearance, regardless of whether such eligible homeowner
makes a request under subsection (b) or receives an offer of
forbearance pursuant to subsection (d).
(2) Limitations on agencies.--An applicable agency head may
not establish--
(A) any limitations or restrictions on the forms or
terms of forbearance relief that a mortgagee may offer
or agree to with respect to a covered mortgage,
including the duration of the forbearance period, the
duration of the period for recoupment of arrearages
resulting from forbearance, and the amount of principal
forgiven; or
(B) any requirement that a mortgagee obtain
approval of the agency head before the mortgagee may
offer or agree to any particular forms or terms of
forbearance relief with respect to a covered mortgage.
SEC. 203. ENFORCEMENT.
(a) FHA.--The Secretary and the Mortgagee Review Board shall
enforce compliance by mortgagees with this title and the guidelines
issued to carry out this title under section 202(c) of the National
Housing Act (12 U.S.C. 1708(c)).
(b) Fannie Mae and Freddie Mac.--If the Director determines, on the
record after an opportunity for an agency hearing, that a mortgagee has
violated this title or the guidelines issued to carry out this title,
the Director shall prohibit the Federal National Mortgage Association
and the Federal Home Loan Mortgage Corporation from purchasing,
acquiring, newly lending on the security of, newly investing in
securities consisting of, or otherwise newly dealing in any mortgage of
or originated by such mortgagee for a period of 12 months.
SEC. 204. DEFINITIONS.
For purposes of this title, the following definitions shall apply:
(1) Applicable agency head.--The term ``applicable agency
head'' means--
(A) the Secretary, with respect to a covered
mortgage described in paragraph (2)(B)(i); and
(B) the Director, with respect to a covered
mortgage described in paragraph (2)(B)(ii).
(2) Covered mortgage.--The term ``covered mortgage'' means
a mortgage--
(A) that is secured by a one- to four-family
dwelling that--
(i) is the principal residence of the
mortgagor; and
(ii) is located within an area for which a
major disaster was declared pursuant to section
401 of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (42 U.S.C. 5170);
and
(B) that is--
(i) insured under title II of the National
Housing Act (12 U.S.C. 1707 et seq.); or
(ii) owned or guaranteed by the Federal
National Mortgage Association or the Federal
Home Loan Mortgage Corporation.
(3) Director.--The term ``Director'' means the Director of
the Federal Housing Finance Agency.
(4) Eligible homeowner.--The term ``eligible homeowner''
means a mortgagor under a covered mortgage whose--
(A) household experienced a disruption in income as
a result of the major disaster referred to in paragraph
(2)(A)(ii), as determined in accordance with guidelines
issued pursuant to section 205; or
(B) residence that secures the mortgage was damaged
as a result of the major disaster referred to in
paragraph (2)(A)(ii), as determined in accordance with
guidelines issued pursuant to section 205.
(5) Mortgagee.--The term ``mortgagee'' means, with respect
to a covered mortgage, the original lender under the mortgage
and any affiliates, agents, subsidiaries, successors, or
assignees of such lender, any subsequent purchaser, trustee, or
transferee of the mortgage or credit instrument issued by such
lender.
(6) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
SEC. 205. GUIDELINES.
Not later than the expiration of the 30-day period beginning on the
date of the enactment of this Act, the Secretary and the Director shall
jointly issue regulations to carry out this title.
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