[Congressional Record Volume 156, Number 112 (Wednesday, July 28, 2010)]
[House]
[Pages H6249-H6251]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   GENERAL AND SPECIAL RISK INSURANCE FUNDS AVAILABILITY ACT OF 2010

  Mr. FRANK of Massachusetts. Mr. Speaker, I move to suspend the rules 
and pass the bill (H.R. 5872) to provide adequate commitment authority 
for fiscal year 2010 for guaranteed loans that are obligations of the 
General and Special Risk Insurance Funds of the Department of Housing 
and Urban Development, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 5872

       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 ``General and Special Risk 
     Insurance Funds Availability Act of 2010''.

     SEC. 2. ADEQUATE COMMITMENT AUTHORITY.

       Notwithstanding any other provision of law, for fiscal year 
     2010 the Secretary of Housing and Urban Development may enter 
     into commitments to guarantee loans, as authorized by 
     sections 238 and 519 of the National Housing Act (12 U.S.C. 
     1715z-3 and 1735c), in an amount not exceeding 
     $20,000,000,000 in total loan principal, any part of which is 
     to be guaranteed.

     SEC. 3. BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go- Act of 2010, 
     shall be determined by reference to the latest statement 
     titled ``Budgetary Effects of PAYGO Legislation'' for this 
     Act, submitted for printing in the Congressional Record by 
     the Chairman of the House Budget Committee, provided that 
     such statement has been submitted prior to the vote on 
     passage.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Massachusetts (Mr. Frank) and the gentlewoman from West Virginia (Mrs. 
Capito) each will control 20 minutes.
  The Chair recognizes the gentleman from Massachusetts.

                              {time}  1940


                             General Leave

  Mr. FRANK of Massachusetts. I ask unanimous consent that all Members 
have 5 legislative days within which to revise and extend their remarks 
and to insert extraneous materials on this bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Massachusetts?
  There was no objection.
  Mr. FRANK of Massachusetts. Mr. Speaker, I yield myself such time as 
I may consume.
  The FHA has become a very successful program. It has taken up a lot 
of the slack that was created by problems elsewhere in the housing 
area. It is being run very well. Secretary Donovan and Administrator 
Stevens deserve a great deal of credit.
  In a bipartisan way, the Committee on Financial Services has 
cooperated with them. We recently passed a bill, again a bipartisan 
bill, and the ranking member of the Housing Subcommittee, the 
gentlewoman from West Virginia (Mrs. Capito) is here, to enhance their 
authority to allow them to do a better job statutorily of guarding 
against abuse and fraud.
  The program's been sufficiently successful so that they have now run 
out of commitment authority. This bill would give them $5 billion more 
in commitment authority. But it is not an expenditure. Indeed, it is 
the opposite. This will save $94 million because we have structured the 
FHA today, and it's being run in a way that it makes a small profit for 
the Federal Government.

[[Page H6250]]

  If we do not pass this bill before the end of next week, us first and 
then the Senate, the FHA program will stop until October. That will 
deny people housing, and this is housing, homeownership and other forms 
of housing, that is responsibly done. It will be a further shot to the 
housing sector of the economy which is so important.
  I add letters from the American Bankers Association and a joint 
letter from virtually every organization that deals with housing from 
the standpoint of consumers, or from the standpoint of financing, also 
from the standpoint of people in the business of providing housing. So 
providers of housing, financers of housing, sellers of housing, 
consumers of housing all agree that we need this bill.
  It should not be controversial because it extends a very successful 
program, stops it from being interrupted between now and October, and 
it will present savings of $94 million.
  I reserve the balance of my time.
  Mrs. CAPITO. Mr. Speaker, just briefly, I would like to join with the 
chairman of the full committee, Mr. Frank, in full support of this 
bill. I would also like to thank the Appropriations Committee for 
letting us bump up two bills so we could get ahead a little bit on our 
evening.
  I would like to reiterate just very quickly that this FHA program is 
a critical source of financing for affordable rental housing, and I am 
in full agreement that we should pass this bill, as it will help to 
mitigate any disruptions in the housing market.
  I have no further speakers, and I yield back the balance of my time.
  Mr. FRANK of Massachusetts. I yield myself 1\1/2\ minutes to say that 
some of the homeownership parts will continue, but there are very 
important pieces here involving health care facilities, involving 
multi-family housing, and there is some homeownership which would be 
lost if we were not able to do this. So I am glad to be joined by my 
colleague from West Virginia, and I hope that the House will promptly 
pass this bill and that the Senate will even promptly pass this bill, 
although that's always a greater hope.

                                                    July 28, 2010.
     Hon. Barney Frank,
     House of Representatives,
     Washington, DC.
       Dear Representative Frank: Our organizations would like to 
     express strong support for H.R. 5872, The General and Special 
     Risk Insurance Funds Availability Act of 2010. Recently, the 
     Federal Housing Administration (FHA) notified Congress that 
     it had exceeded 75 percent of its commitment authority to 
     insure mortgages under the General Insurance and Special Risk 
     Insurance (GI/SRI) Fund. FHA Commissioner David Stevens 
     further warned that without an additional $5 billion in 
     commitment authority, the agency's current limitation would 
     be fully exhausted by late August or September.
       FHA is now facing the real possibility that it will have to 
     shut down the multifamily and health care insurance programs. 
     Without swift passage of H.R. 5872, needed affordable rental 
     housing and health care facilities could be at risk of losing 
     time-sensitive financing and subsidy commitments as a result. 
     Properties with maturing loans that must refinance could be 
     at risk of losing the only source of refinancing available in 
     the market at this time. The consequence is the delay or loss 
     of bringing affordable housing to those people who need it so 
     much.
       As you know, during this period of significant turmoil in 
     the credit markets, FHA's multifamily and health care 
     programs have been a critical source of stable and affordable 
     financing. We cannot afford a suspension of these important 
     programs now.
       We strongly urge Congress to act expeditiously to provide 
     FHA with the additional commitment authority it is seeking. 
     Failure to do so before Congress recesses this summer will 
     cause significant disruptions to financing for apartment, 
     hospital, and health care facilities that serve millions of 
     Americans.
       We thank you in advance for your support for H.R. 5872.
           Sincerely,
         American Health Care Association; American Association of 
           Homes and Services for the Aging; American Seniors 
           Housing Association; Assisted Living Federation of 
           America; Coalition for Seniors Health Care Reform; 
           Council for Affordable Rural Housing; Committee on 
           Health Care Financing; Housing Partnership Network; 
           Institute of Real Estate Management; Institute for 
           Responsible Housing Preservation; Mortgage Bankers 
           Association; National Apartment Association; National 
           Affordable Housing Management Association; National 
           Association of Affordable Housing Lenders; National 
           Association of Home Builders; National Association of 
           Realtors; National Council of State Housing Agencies; 
           National Leased Housing Association; National Multi 
           Housing Council; New York Housing Coalition; Settlement 
           Housing Fund; Stewards of Affordable Housing for the 
           Future; Volunteers of America.
                                  ____

                                      National Association of Home


                                                     Builders,

                                    Washington, DC, July 28, 2010.
     Hon. Barney Frank,
     House of Representatives,
     Washington, DC.
       Dear Representative Frank: On behalf of the 175,000 members 
     of the National Association of Home Builders (NAHB), I am 
     writing to express our strong support for H.R. 5872, the 
     General and Special Risk Insurance Funds Availability Act of 
     2010. H.R. 5872 would increase the commitment authority for 
     fiscal year 2010 for the General and Special Risk Program 
     Account of the U.S. Department of Housing and Urban 
     Development. Without the proposed $5 billion increase, the 
     Federal Housing Administration (FHA) could be forced to shut 
     down the multifamily and health care facilities mortgage 
     insurance programs. FHA recently notified Congress that 
     without this increase, the agency's current limitation would 
     be fully exhausted by late August or September, in advance of 
     the end of the fiscal year.
       The FHA multifamily and health care mortgage insurance 
     programs are critically needed during this period of 
     significant turmoil in the credit markets. Without additional 
     commitment authority, needed affordable rental housing and 
     health care facilities could be at risk of losing time-
     sensitive financing and subsidy commitments as a result. 
     Properties with maturing loans that must refinance could be 
     at risk of losing the only source of refinancing available in 
     the market at this time. The consequence is the delay or loss 
     of bringing affordable housing to those people who need it so 
     much.
       Again, NAHB supports H.R. 5872 and urges your support on 
     the House floor. This critical legislation will benefit 
     thousands of people who need affordable rental housing and 
     health care facilities, as well as provide needed 
     construction jobs in this difficult economy.
           Best regards,

                                                  Joe Stanton,

                                            Senior Vice President,
     Government Affairs.
                                  ____



                                 Mortgage Bankers Association,

                                    Washington, DC, July 28, 2010.
     Hon. Barney Frank,
     Chairman, Committee on Financial Services, House of 
         Representatives, Washington, DC.
     Hon. Spencer Bachus,
     Ranking Member, Committee on Financial Services, House of 
         Representatives, Washington, DC.
       Dear Chairman Frank and Ranking Member Bachus: On behalf of 
     the Mortgage Bankers Association, I want to thank you for 
     your leadership in quickly moving H.R. 5872, the General and 
     Special Risk Insurance Funds Availability Act of 2010, to the 
     House floor. This legislation is urgently needed to avert a 
     looming shutdown in the Federal Housing Administration's 
     multifamily programs.
       Recently, FHA notified Congress that it was close to 
     exhausting its commitment authority to insure multifamily 
     mortgages, and that an additional $5 billion would be needed 
     to keep the programs running through the end of the fiscal 
     year. FHA's multifamily programs have been a critical source 
     of stable and affordable financing during the current 
     downturn in the credit markets. We simply cannot afford a 
     suspension of these important programs now.
       It is also important to note that the authorization of 
     commitment authority is not the same as a direct 
     appropriation and does not come with a cost to taxpayers. In 
     fact, because FHA collects premiums to guard against the risk 
     of default, the additional $5 billion in commitment authority 
     is estimated to generate $94 million to the U.S. Treasury.
       We urge the House to approve this bill so that we keep 
     these important multifamily programs up and running.
           Sincerely,

                                           William P. Killmer,

                                            Senior Vice-President,
     Legislative and Political Affairs.
                                  ____

         National Multi Housing Council and National Apartment 
           Association,
                                    Washington, DC, July 28, 2010.
     U.S. House of Representatives,
     Washington, DC.
       Dear Representative: The National Multi Housing Council 
     (NMHC) and National Apartment Association (NAA) urge 
     immediate action on H.R. 5872, the ``General and Special Risk 
     Insurance Funds Availability Act of 2010'', to prevent an 
     imminent shutdown of the FHA multifamily loan program.
       Absent Congressional action the multifamily and health care 
     insurance programs will shut down. As a result, needed 
     affordable rental housing and health care facilities could be 
     at risk of losing time-sensitive financing and subsidy 
     commitments. Properties with maturing loans that must 
     refinance could be at risk of losing the only source of 
     refinancing available in the market at this time. The 
     consequence is the delay or loss of bringing affordable 
     housing to those people who need it so much.
       As required, the Federal Housing Administration (FHA) 
     notified Congress that it had

[[Page H6251]]

     exceeded 75 percent of its commitment authority to insure 
     mortgages under the General Insurance and Special Risk 
     Insurance (GI/SRI) Fund. FHA Commissioner David Stevens 
     further warned that without an additional $5 billion in 
     commitment authority, the agency's current limitation would 
     be fully exhausted by late August or September. Without swift 
     action, that warning is now a reality.
       As you know, during this period of significant turmoil in 
     the credit markets, FHA's multifamily and health care 
     programs have been a critical source of stable and affordable 
     financing. We cannot afford a suspension of these important 
     programs.
       NMHC and NAA strongly urge passage of this critical 
     legislation.
           Sincerely,
     Douglas M. Bibby,
       President, National Multi Housing Council.
     Douglas S. Culkin, CAE,
       President, National Apartment Association.

  I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Massachusetts (Mr. Frank) that the House suspend the 
rules and pass the bill, H.R. 5872, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________