Federal Financing Bank Risk-Sharing Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 8824 To require the continuation of the FHA affordable rental housing financing partnership with the Federal Financing Bank, and for other purposes. IN THE HOUSE OF REPRESENTATIVES NOVEMBER 27, 2020 Ms. VELA´ZQUEZ introduced the following bill; which was referred to the Committee on Financial Services A BILL To require the continuation of the FHA affordable rental housing financing partnership with the Federal Financ- ing Bank, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Federal Financing 4 Bank Risk-Sharing Act of 2020’’. 5 SEC. 2. CONTINUATION OF FHA-FFB AFFORDABLE RENTAL 6 HOUSING FINANCING PARTNERSHIP. 7 (a) REQUIREMENT.—The Secretary of Housing and 8 Urban Development and the Secretary of the Treasury 9 shall continue to carry out the FHA affordable rental 10 VerDate Sep 11 2014 03:55 Dec 08, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8824.IH H8824 SSpencer on DSK126QN23PROD with BILLS 2 •HR 8824 IH housing financing partnership with the Federal Financing 1 Bank, under which such Bank provides financing for loans 2 insured under the FHA Multifamily Risk-Sharing Pro- 3 gram under section 542 of the Housing and Community 4 Development Act of 1992 (12 U.S.C. 1715z–22), and may 5 enter into such new commitments under such program 6 during each fiscal year, subject to the overall limitations 7 provided in this Act on new commitments to guarantee 8 loans insured under the General and Special Risk Insur- 9 ance Funds, as authorized by sections 238 and 519 of the 10 National Housing Act (12 U.S.C. 1715z–3 and 1735c). 11 (b) RURAL POPULATIONS.—In complying with sub- 12 section (a), the Secretary of Housing and Urban Develop- 13 ment shall make any changes to the Risk-Sharing Pro- 14 gram that the Secretary determines are necessary or ap- 15 propriate to enhance the scope and effectiveness of the 16 Program for rural populations. 17 (c) COMMUNITY DEVELOPMENT FINANCIAL INSTITU- 18 TIONS.—Pursuant to section 542(b) of Housing and Com- 19 munity Development Act of 1992 (12 U.S.C. 1715z–22), 20 the Secretary of Housing and Urban Development shall 21 enter into risk-sharing agreements with community devel- 22 opment financial institutions, as such term is defined in 23 section 103 of the Riegle Community Development and 24 Regulatory Improvement Act of 1994 (12 U.S.C. 4702). 25 VerDate Sep 11 2014 03:55 Dec 08, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8824.IH H8824 SSpencer on DSK126QN23PROD with BILLS 3 •HR 8824 IH (d) AFFORDABLE HOUSING.—Section 542 of the 1 Housing and Community Development Act of 1992 (12 2 U.S.C. 1715z–22) is amended— 3 (1) in subsection (b), by striking paragraph (9) 4 and inserting the following new paragraph: 5 ‘‘(9) AFFORDABLE HOUSING.—Multifamily 6 housing securing loans insured or reinsured under 7 this subsection shall qualify as affordable only if the 8 housing bears rents not greater than the gross rent 9 for rent-restricted residential units as determined 10 under section 42(g) of the Internal Revenue Code of 11 1986 (26 U.S.C. 42(g)).’’; and 12 (2) in subsection (c), by striking paragraph (7) 13 and inserting the following new paragraph: 14 ‘‘(7) AFFORDABLE HOUSING.—Multifamily 15 housing securing loans insured or reinsured under 16 this subsection shall qualify as affordable only if the 17 housing bears rents not greater than the gross rent 18 for rent-restricted residential units as determined 19 under section 42(g) of the Internal Revenue Code of 20 1986 (26 U.S.C. 42(g)).’’. 21 Æ VerDate Sep 11 2014 03:55 Dec 08, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H8824.IH H8824 SSpencer on DSK126QN23PROD with BILLS