HR 6394 IHCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

H. R. 6394CommentsClose CommentsPermalink

To facilitate affordable workforce homeownership in, and develop the full-time resident communities of, high tourism areas, and for other purposes.CommentsClose CommentsPermalink

IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink

September 13, 2012CommentsClose CommentsPermalink

Mr. POLIS (for himself, Mr. HINOJOSA, and Mr. QUIGLEY) introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Energy and Commerce, 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 concernedCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To facilitate affordable workforce homeownership in, and develop the full-time resident communities of, high tourism areas, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Affordable Housing Regulation Simplification Act of 2012’.CommentsClose CommentsPermalink

SEC. 2. INAPPLICABILITY OF CERTAIN FANNIE MAE AND FREDDIE MAC GUIDELINES TO AFFORDABLE WORKFORCE HOUSING MORTGAGES.

(a) Fannie Mae- Subsection (b) of section 302 of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(7) Mortgages for Affordable Workforce Housing-CommentsClose CommentsPermalink





‘(A) EXEMPTIONS FROM GUIDELINES- Notwithstanding any other provision of law--CommentsClose CommentsPermalink





‘(i) the corporation may purchase, service, sell, lend on the security of, and otherwise deal in any affordable workforce housing mortgage; andCommentsClose CommentsPermalink





‘(ii) any requirements and guidelines of the corporation that are inconsistent with the authority under clause (i) shall not apply to any affordable workforce housing mortgage.CommentsClose CommentsPermalink





‘(B) AFFORDABLE WORKFORCE HOUSING MORTGAGES- For purposes of this paragraph, the term ‘affordable workforce housing mortgage’ means a mortgage that meets the following requirements:CommentsClose CommentsPermalink





‘(i) PROPERTY- The mortgage shall be made for the purchase of, and secured by, a one-family residence that--CommentsClose CommentsPermalink





‘(I) shall be used as the residence of the mortgagor for not less than 8 of any 12 months and 240 days of any 365 days;CommentsClose CommentsPermalink





‘(II) is located within or is part of a multifamily housing development--CommentsClose CommentsPermalink





‘(aa) that consists of 5 or more dwelling units or a mixed-use development that is not less than 50 percent residential, as defined in the legal description of the property in the purchase contract or mortgage or title documents relating to such purchase;CommentsClose CommentsPermalink





‘(bb) of which not less than 25 percent of the dwelling units in the development are owner-occupied; except that the requirement under this item shall be considered to be complied with, with respect to a development, unless verifiable public records indicate an owner-occupancy rate for the development of less than 25 percent;CommentsClose CommentsPermalink





‘(cc) that provides individual, centralized, or any other method of metering for energy use of the constituent dwelling units; andCommentsClose CommentsPermalink





‘(dd) that may include dwelling units that are used for the sole purpose of short-term rentals and may provide such services as a staffed front desk, a concierge, or other amenities consistent with providing customer service for non-owner occupied or short-term rental units in the development, including marketing that describes the property as a lodge, resort, or other similar facility;CommentsClose CommentsPermalink





and any multifamily housing development that otherwise complies with the requirements under this subclause may not be considered ineligible because the development or any portion of the development is called or referred to as a ‘condotel’, ‘condo-hotel’, ‘lodge’, or any other title;CommentsClose CommentsPermalink





‘(III) is subject to resale restrictions that--CommentsClose CommentsPermalink





‘(aa) are recorded with the appropriate public registry for recording of titles and interests in real estate; andCommentsClose CommentsPermalink





‘(bb) terminate upon foreclosure or execution of any deed-in-lieu-of-foreclosure; andCommentsClose CommentsPermalink





‘(IV) is located in an area that, at the time of the origination of the mortgage, is a high tourism area.CommentsClose CommentsPermalink





‘(ii) MORTGAGOR INCOME- The household of the mortgagor shall have a gross household income--CommentsClose CommentsPermalink





‘(I) that does not exceed 160 percent of the area median income, as determined and updated by the Secretary of Housing and Urban Development or the Director of the Federal Housing Finance Agency on an annual basis; andCommentsClose CommentsPermalink





‘(II) not less than 75 percent of which is earned from positions the discharge of whose duties involved physical presence in one or more high tourism areas.CommentsClose CommentsPermalink





‘(iii) EMPLOYMENT- The mortgagor or another member of the mortgagor’s household--CommentsClose CommentsPermalink





‘(I) has been employed, during the 6-month period ending upon execution of the mortgage, in a position or multiple positions the discharge of whose duties involved physical presence in one or more high tourism areas, in the aggregate, for an average of not less than 30 hours per week;CommentsClose CommentsPermalink





‘(II) is employed at the time of the execution of the mortgage in a position or multiple positions the discharge of whose duties involve physical presence in one or more high tourism areas, in the aggregate, for an average of not less than 30 hours per week and the duration of such employment in such position is expected to last at least 6 months;CommentsClose CommentsPermalink





‘(III) is 60 years of age or older and, during the 5-year period ending up the mortgagor’s retirement from employment was employed in a position or positions the discharge of whose duties involved physical presence in one or more high tourism areas for--CommentsClose CommentsPermalink





‘(aa) an average of not less than 30 hours per week; andCommentsClose CommentsPermalink





‘(bb) for not less than 8 months per year;CommentsClose CommentsPermalink





‘(IV) is a person with disabilities (as such term is defined in section 811(k) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013)) who--CommentsClose CommentsPermalink





‘(aa) was employed, during the 2-year period ending upon becoming disabled, in a position or positions described in subclause (I) or (II); orCommentsClose CommentsPermalink





‘(bb) is employed in a position or positions described in subclause (I) or (II), except that the 30-hour requirement under such subclauses shall not apply to such person if--CommentsClose CommentsPermalink

‘(AA) compliance with such requirement would make such person ineligible for benefits made available for persons with disabilities through a program of any State agency for developmental disabilities or through the supplemental security income program under title XVI of the Social Security Act; andCommentsClose CommentsPermalink

‘(BB) such person works the maximum number of hours per week allowable for eligibility for benefits under such program; orCommentsClose CommentsPermalink

‘(V) is the head of household in a household that includes one or more dependents, at least one of whom is at the time of the execution of the mortgage 5 years of age or younger or is enrolled full-time in a school in a high tourism area.CommentsClose CommentsPermalink





‘(iv) CONFORMING LOAN- The original principal obligation of the mortgage shall comply with the applicable dollar amount limitations established pursuant to paragraph (2).CommentsClose CommentsPermalink





‘(C) HIGH TOURISM AREA- For purposes of this paragraph, the term ‘high tourism area’ means a county that is designated as a high tourism county pursuant to section 5 of the Affordable Housing Regulation Simplification Act of 2012.’.CommentsClose CommentsPermalink





(b) Freddie Mac- Subsection (a) of section 305 of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(6) Mortgages for Affordable Workforce Housing-CommentsClose CommentsPermalink





‘(A) EXEMPTIONS FROM GUIDELINES- Notwithstanding any other provision of law--CommentsClose CommentsPermalink





‘(i) the Corporation may purchase, service, sell, lend on the security of, and otherwise deal in any affordable workforce housing mortgage; andCommentsClose CommentsPermalink





‘(ii) any requirements and guidelines of the Corporation that are inconsistent with the authority under clause (i) shall not apply to any affordable workforce housing mortgage.CommentsClose CommentsPermalink





‘(B) AFFORDABLE WORKFORCE HOUSING MORTGAGES- For purposes of this paragraph, the term ‘affordable workforce housing mortgage’ means a mortgage that meets the following requirements:CommentsClose CommentsPermalink





‘(i) PROPERTY- The mortgage shall be made for the purchase of, and secured by, a one-family residence that--CommentsClose CommentsPermalink





‘(I) shall be used as the residence of the mortgagor for not less than 8 of any 12 months and 240 days of any 365 days;CommentsClose CommentsPermalink





‘(II) is located within or is part of a multifamily housing development--CommentsClose CommentsPermalink





‘(aa) that consists of 5 or more dwelling units or a mixed-use development that is not less than 50 percent residential, as defined in the legal description of the property in the purchase contract or mortgage or title documents relating to such purchase;CommentsClose CommentsPermalink





‘(bb) of which not less than 25 percent of the dwelling units in the development are owner-occupied; except that the requirement under this item shall be considered to be complied with, with respect to a development, unless verifiable public records indicate an owner-occupancy rate for the development of less than 25 percent;CommentsClose CommentsPermalink





‘(cc) that provides individual, centralized, or any other method of metering for energy use of the constituent dwelling units; andCommentsClose CommentsPermalink





‘(dd) that may include dwelling units that are used for the sole purpose of short-term rentals and may provide such services as a staffed front desk, a concierge, or other amenities consistent with providing customer service for non-owner occupied or short-term rental units in the development, including marketing that describes the property as a lodge, resort, or other similar facility;CommentsClose CommentsPermalink





and any multifamily housing development that otherwise complies with the requirements under this subclause may not be considered ineligible because the development or any portion of the development is called or referred to as a ‘condotel’, ‘condo-hotel’, ‘lodge’, or any other title;CommentsClose CommentsPermalink





‘(III) is subject to resale restrictions that--CommentsClose CommentsPermalink





‘(aa) are recorded with the appropriate public registry for recording of titles and interests in real estate; andCommentsClose CommentsPermalink





‘(bb) terminate upon foreclosure or execution of any deed-in-lieu-of-foreclosure; andCommentsClose CommentsPermalink





‘(IV) is located in an area that, at the time of the origination of the mortgage, is a high tourism area.CommentsClose CommentsPermalink





‘(ii) MORTGAGOR INCOME- The household of the mortgagor shall have a gross household income--CommentsClose CommentsPermalink





‘(I) that does not exceed 160 percent of the area median income, as determined and updated by the Secretary of Housing and Urban Development or the Director of the Federal Housing Finance Agency on an annual basis; andCommentsClose CommentsPermalink





‘(II) not less than 75 percent of which is earned from positions the discharge of whose duties involved physical presence in one or more high tourism areas.CommentsClose CommentsPermalink





‘(iii) EMPLOYMENT- The mortgagor or another member of the mortgagor’s household--CommentsClose CommentsPermalink





‘(I) has been employed, during the 6-month period ending upon execution of the mortgage, in a position or multiple positions the discharge of whose duties involved physical presence in one or more high tourism areas, in the aggregate, for an average of not less than 30 hours per week;CommentsClose CommentsPermalink





‘(II) is employed at the time of the execution of the mortgage in a position or multiple positions the discharge of whose duties involve physical presence in one or more high tourism areas, in the aggregate, for an average of not less than 30 hours per week and the duration of such employment in such position is expected to last at least 6 months;CommentsClose CommentsPermalink





‘(III) is 60 years of age or older and, during the 5-year period ending up the mortgagor’s retirement from employment was employed in a position or positions the discharge of whose duties involved physical presence in one or more high tourism areas for--CommentsClose CommentsPermalink





‘(aa) an average of not less than 30 hours per week; andCommentsClose CommentsPermalink





‘(bb) for not less than 8 months per year;CommentsClose CommentsPermalink





‘(IV) is a person with disabilities (as such term is defined in section 811(k) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013)) who--CommentsClose CommentsPermalink





‘(aa) was employed, during the 2-year period ending upon becoming disabled, in a position or positions described in subclause (I) or (II); orCommentsClose CommentsPermalink





‘(bb) is employed in a position or positions described in subclause (I) or (II), except that the 30-hour requirement under such subclauses shall not apply to such person if--CommentsClose CommentsPermalink

‘(AA) compliance with such requirement would make such person ineligible for benefits made available for persons with disabilities through a program of any State agency for developmental disabilities or through the supplemental security income program under title XVI of the Social Security Act; andCommentsClose CommentsPermalink

‘(BB) such person works the maximum number of hours per week allowable for eligibility for benefits under such program; orCommentsClose CommentsPermalink

‘(V) is the head of household in a household that includes one or more dependents, at least one of whom is at the time of the execution of the mortgage 5 years of age or younger or is enrolled full-time in a school in a high tourism area.CommentsClose CommentsPermalink





‘(iv) CONFORMING LOAN- The original principal obligation of the mortgage shall comply with the applicable dollar amount limitations established pursuant to paragraph (2).CommentsClose CommentsPermalink





‘(C) HIGH TOURISM AREA- For purposes of this paragraph, the term ‘high tourism area’ means any county that is designated as a high tourism county pursuant to section 5 of the Affordable Housing Regulation Simplification Act of 2012.’.CommentsClose CommentsPermalink

SEC. 3. INSURANCE OF AFFORDABLE WORKFORCE HOUSING MORTGAGES BY FHA.

Section 203 of the National Housing Act (12 U.S.C. 1709) is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(y) Mortgages for Affordable Workforce Housing-CommentsClose CommentsPermalink





‘(1) INSURANCE AUTHORITY- The Secretary may insure under this section any affordable workforce housing mortgage meeting the requirements of subsection (b) of this section, except as modified by this subsection.CommentsClose CommentsPermalink





‘(2) EXEMPTIONS- Notwithstanding any other provision of law, any requirements and guidelines of the Secretary that are inconsistent with the authority under paragraph (1) shall not apply to any affordable workforce housing mortgage.CommentsClose CommentsPermalink





‘(3) AFFORDABLE WORKFORCE HOUSING MORTGAGES- For purposes of this subsection, the term ‘affordable workforce housing mortgage’ means a mortgage that meets the following requirements:CommentsClose CommentsPermalink





‘(A) PROPERTY- The mortgage shall be made for the purchase of, and secured by, a one-family residence that--CommentsClose CommentsPermalink





‘(i) shall be used as the residence of the mortgagor for not less than 8 of any 12 months and 240 days of any 365 days;CommentsClose CommentsPermalink





‘(ii) is located within or is part of a multifamily housing development--CommentsClose CommentsPermalink





‘(I) that consists of 5 or more dwelling units or a mixed-use development that is not less than 50 percent residential, as defined in the legal description of the property in the purchase contract or mortgage or title documents relating to such purchase;CommentsClose CommentsPermalink





‘(II) of which not less than 25 percent of the dwelling units in the development are owner-occupied; except that the requirement under this item shall be considered to be complied with, with respect to a development, unless verifiable public records indicate an owner-occupancy rate for the development of less than 25 percent;CommentsClose CommentsPermalink





‘(III) that provides individual, centralized, or any other method of metering for energy use of the constituent dwelling units; andCommentsClose CommentsPermalink





‘(IV) that may include dwelling units that are used for the sole purpose of short-term rentals and may provide such services as a staffed front desk, a concierge, or other amenities consistent with providing customer service for non-owner occupied or short-term rental units in the development, including marketing that describes the property as a lodge, resort, or other similar facility;CommentsClose CommentsPermalink





and any multifamily housing development that otherwise complies with the requirements under this clause may not be considered ineligible because the development or any portion of the development is called or referred to as a ‘condotel’, ‘condo-hotel’, ‘lodge’, or any other title;CommentsClose CommentsPermalink





‘(iii) is subject to resale restrictions that--CommentsClose CommentsPermalink





‘(I) are recorded with the appropriate public registry for recording of titles and interests in real estate; andCommentsClose CommentsPermalink





‘(II) terminate upon foreclosure or execution of any deed-in-lieu-of-foreclosure; andCommentsClose CommentsPermalink





‘(iv) is located in an area that, at the time of the origination of the mortgage, is a high tourism area.CommentsClose CommentsPermalink





‘(B) MORTGAGOR INCOME- The household of the mortgagor shall have a gross household income--CommentsClose CommentsPermalink





‘(i) that does not exceed 160 percent of the area median income, as determined and updated by the Secretary on an annual basis; andCommentsClose CommentsPermalink





‘(ii) not less than 75 percent of which is earned from positions the discharge of whose duties involved physical presence in one or more high tourism areas.CommentsClose CommentsPermalink





‘(C) EMPLOYMENT- The mortgagor or another member of the mortgagor’s household--CommentsClose CommentsPermalink





‘(i) has been employed, during the 6-month period ending upon execution of the mortgage, in a position or multiple positions the discharge of whose duties involved physical presence in one or more high tourism areas, in the aggregate, for an average of not less than 30 hours per week;CommentsClose CommentsPermalink





‘(ii) is employed at the time of the execution of the mortgage in a position or multiple positions the discharge of whose duties involve physical presence in one or more high tourism areas, in the aggregate, for an average of not less than 30 hours per week and the duration of such employment in such position is expected to last at least 6 months;CommentsClose CommentsPermalink





‘(iii) is 60 years of age or older and, during the 5-year period ending up the mortgagor’s retirement from employment was employed in a position or positions the discharge of whose duties involved physical presence in one or more high tourism areas for--CommentsClose CommentsPermalink





‘(I) an average of not less than 30 hours per week; andCommentsClose CommentsPermalink





‘(II) for not less than 8 months per year;CommentsClose CommentsPermalink





‘(iv) is a person with disabilities (as such term is defined in section 811(k) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013)) who--CommentsClose CommentsPermalink





‘(I) was employed, during the 2-year period ending upon becoming disabled, in a position or positions described in clause (i) or (ii); orCommentsClose CommentsPermalink





‘(II) is employed in a position or positions described in clause (i) or (ii), except that the 30-hour requirement under such clauses shall not apply to such person if--CommentsClose CommentsPermalink

‘(aa) compliance with such requirement would make such person ineligible for benefits made available for persons with disabilities through a program of any State agency for developmental disabilities or through the supplemental security income program under title XVI of the Social Security Act; andCommentsClose CommentsPermalink

‘(bb) such person works the maximum number of hours per week allowable for eligibility for benefits under such program; orCommentsClose CommentsPermalink

‘(v) is the head of household in a household that includes one or more dependents, at least one of whom is at the time of the execution of the mortgage 5 years of age or younger or is enrolled full-time in a school in a high tourism area.CommentsClose CommentsPermalink





‘(D) LOAN LIMIT- The original principal obligation of the mortgage shall comply with the applicable dollar amount limitations under subsection (b)(2).CommentsClose CommentsPermalink





‘(4) HIGH TOURISM AREA- For purposes of this paragraph, the term ‘high tourism area’ means any a county that is designated as a high tourism county pursuant to section 5 of the Affordable Housing Regulation Simplification Act of 2012.’.CommentsClose CommentsPermalink

SEC. 4. FHA AUTHORITY FOR SPOT APPROVAL OF MORTGAGES FOR CONDOMINIUM UNITS.

Section 234 of the National Housing Act (12 U.S.C. 1715y) is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(l) Authority for Spot Approvals- In the case of individual mortgages for one-family units in a multifamily project and an undivided interest in the common areas and facilities that serve the project and affordable workforce housing mortgages (as such term is defined in section 203(y)), the Secretary shall provide an approval process for insurance of such mortgages that does not require prior approval of the entire project or of the homeowners association for the entire project.’.CommentsClose CommentsPermalink

SEC. 5. DETERMINATION OF HIGH TOURISM AREAS.

The Secretary of Commerce shall, by notice issued not later than December 31, 2013--CommentsClose CommentsPermalink





(1) establish a procedure and metric for assessing, for counties in all States throughout the United States, the economic impact of tourism on such counties;CommentsClose CommentsPermalink





(2) establish a minimum threshold for such economic activity for use for designating counties as high tourism counties; andCommentsClose CommentsPermalink





(3) pursuant to such procedure, metric, and threshold, designate the counties in the United States that are high tourism counties at the time of such designation.CommentsClose CommentsPermalink





The Secretary of Commerce shall reassess and update such designations on a biennial basis.CommentsClose CommentsPermalink