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Code · BILL · 116th Congress · H.R. 5072 (Introduced in House) — To create an equitable and stable rental housing market, and for other purposes. · Sec. 7

Sec. 7. Conditions for the sale or guarantee of loans, real property, and related securities

658 words·~3 min read·/bill/116/hr/5072/ih/section-7·

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A covered rental housing owner may not— purchase any mortgage, mortgage-backed security, or other loan that is made, sold, insured, guaranteed, or otherwise supported or assisted by any Federal agency or enterprise (which term for purposes of this section, shall have the meaning given such term in section 1303 of the Housing and Community Development Act of 1992 ( 12 U.S.C. 4502 )); be provided any insurance or guarantee by any Federal agency or enterprise for any mortgage for which the covered rental housing owner, or any entity in which such owner holds a controlling interest, is the mortgagee; be provided any insurance or guarantee by any Federal agency or enterprise for any loan for which the covered rental housing owner, or any entity in which such owner holds a controlling interest, is the lender; or purchase any FHA asset (as such term is defined in section 204(m) of the National Housing Act, as added by subsection
(d)of this section) from the Department of Housing and Urban Development or an enterprise that was acquired by such Department or enterprise pursuant to a foreclosure action on a mortgage insured under title II of the National Housing Act ( 12 U.S.C. 1707 et seq.). Notwithstanding any other provision of law, no Federal agency or enterprise may purchase, or issue any security backed by, any mortgage for which the mortgagee is a covered rental housing owner. For purposes of this section, the term covered rental housing owner means— any owner of rental housing who has been determined by the Secretary of Housing and Urban Development, on the record after an opportunity for an agency hearing, to— have 3 or more documented or adjudicated instances of— harassing tenants; violating any applicable codes regarding health and safety of rental dwellings; evicting tenants without sufficient cause; or offering at-risk mortgagees temporary interest-only modifications that do not support long-term affordability to borrowers; or have foreclosed on more than 40 percent of occupied properties that are owned by the covered rental housing owner and subject to mortgages purchased from a government agency or enterprise; or any entity that owns or holds a controlling interest in entities that, in aggregate, own— more than 100 rental units that are located within in a single Metropolitan Statistical Area; more than 1,000 rental units nationwide; or rental units in three or more States. Section 204 of the National Housing Act ( 12 U.S.C. 1710 ) is amended by adding at the end the following new subsection: Except to the extent necessary to comply with the capital ratio requirements of the Mutual Mortgage Insurance Fund under section 205(f) ( 12 U.S.C. 1711(f) ), the Secretary shall ensure that not less than 75 percent of the number of FHA assets sold in each fiscal year shall be made only to purchasers— who will occupy the property that is the asset or is subject to the mortgage that is the asset; that is a nonprofit organization that has among its primary purposes significant activities related to the provision of decent housing that is affordable to low- and moderate-income families; that is a community land trust or land bank that meets such requirements as the Secretary shall establish; or is a community-controlled entity that meets such requirements as the Secretary shall establish. For purposes of this subsection the term FHA asset means— a property that— is designed as a dwelling for occupancy by 1 to 4 families; was previously subject to a mortgage insured under the provisions of this title; and is owned by the Secretary pursuant to the payment of insurance benefits under this title; or a mortgage that— is an interest in a property that meets the requirements of clause
(i)of subparagraph (A); was previously insured under this title except for mortgages insured under or made pursuant to section 235, 237, or 255; and is held by the Secretary pursuant to the payment of insurance benefits under this title. .
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Sec. 7
Conditions for the sale or guarantee of loans, real property, and related securities
U.S.C.§ 4502
U.S.C.§ 1707
U.S.C.§ 1710
U.S.C.§ 1711
Cites 4Cited by 0 across 0 sources
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