A CHRONOLOGY OF GSE AFFORDABLE HOUSING FUND

**April 5, 2005**. House Financial Services Committee Chairman Michael
Oxley (R-OH) and Subcommittee Chairman Richard Baker (R-LA) introduce
H.R. 1461 to create a strong new independent regulator for the housing
GSEs- Fannie Mae, Freddie Mac and the Federal Home Loan Banks. The bill
is drafted in the wake of accounting irregularities at the two GSEs and
in response to Bush Administration and Federal Reserve Board requests to
strengthen the regulation of these privately run but federally-chartered
entities to ensure to strengthen the safety and soundness of the GSEs,
and guarantee rigid oversight of their congressionally-mandated
charters, including compliance with their housing mission.

**May 25**. The House Financial Services Committee accepts Chairman
Oxley's Manager's Amendment including an affordable housing fund based
on Federal Home Loan Bank's long existing (and near universally
supported) affordable housing program. That fund has provided \$2
billion worth of affordable housing grants over the past 16 years. At
least 10% of the Fund would be devoted to providing homeownership
opportunities. The new fund would dedicate 5% of the after-tax profits
of Fannie Mae and Freddie Mac to a fund for the purchase, construction
and rehabilitation of low-income housing.

At the mark-up, Representative Maxine Waters (D-CA) introduces an
amendment that prohibits national non-profit housing intermediaries from
re-distributing affordable housing funds to other groups. The amendment
is accepted without objection.

> At the mark-up, Representative Ed Royce (R-CA), an Republican Study
> Committee member, attempts to strike the Fund from the bill. The
> amendment is defeated 53 to 17. (All 33 Democrats and 20 Republicans
> vote to keep the fund).

The Financial Services Committee passes H.R. 1461 (with the affordable
housing fund) 65 to 5.

**May-June**. Given ongoing objections regarding an alleged risk of
misallocation of funds, bipartisan group agree to a number of additional
safeguards to make even more certain funds are not used for political or
any other, non-housing purpose.

**June**. GSE Bill stalls as host of spurious arguments are made against
the Fund, including, the assertion that it is a tax or a confiscation,
assertions that somehow the Fund will cost the government money and
complaints that it would spur the GSEs to be driven to make more profit.
(See, "GSE Bill Stalls In House As GOP Leaders Refuse Floor Time," Dawn
Kopecki, Dow Jones News Wire, June 10, 2005; and "Mr. Oxley's Slush
Fund" Wall Street Journal Editorial, June 14, 2005).

**June 21.** A small group of conservative Republicans write then- House
Majority Leader Tom Delay seeking to remove the Fund from the bill and
enlist the House Leadership to kill the entire bill if it is not
deleted. (Ltr. dated May 25).

**June -- July**. Chairman Oxley and Majority Leader Delay engage in
ongoing negotiations. Oxley attempts to address RSC's concerns while
protecting the Fund's core purpose and framework. (See, e.g., "Rep.
Oxley Circulating Potential Limits on Affordable Housing Fund in GSE
Bill," BNA Daily Report for Executives, June 27, 2005).

**June 29**. Core conservative group continues to oppose fund. RSC
member Tom Feeney (R-Fl) is quoted as saying "Personally, I\'d rather
burn the money than give it to advocacy groups." (See, "US House GOP
Conservatives Dismiss Compromise On GSE Bill," Dawn Kopecki, Dow Jones
Newswires, June 29, 2005).

**Sept**. **14**. Chairman Oxley, and Representatives Baker, Ney, Frank,
Kanjorski and Waters agree that Fund should be revised to give priority
consideration to victims of Hurricane Katrina (and other natural
disasters).

Chairman Oxley and Representative Baker circulate Dear Colleague
requesting floor time.

Republican Study Committee members continue to object to bringing bill
to floor and attempt to dictate policy changes. Oxley and Delay renew
discussions.

**October**. Acting Republican Leadership agrees to bring H.R. 1461 to
the floor if it contains provisions imposing additional restrictions
only on non-profit recipients and their voter-registration activities.

**October 3**. The U.S. Conference of Catholic Bishops send letter to
House Speaker Dennis Hastert (R-IL) saying these provisions would "force
Catholic agencies to choose between participating in Affordable Housing
Fund programs or engaging in constitutionally protected voter
registration and lobbying activities with their own funds."

**October 19**. Sixty-two faith-based, housing and other organizations
send letter to Speaker Hastert urging him to remove these provisions
before the bill comes to the House floor.

**October 21**. Rev. Willie Gable, Executive Vice President of the
National Baptist Convention objects to this provision and is quoted as
saying "I would call it the Non-Voting Rights Act of 2005." ("Housing
Bill Contains A Catch" Patricia Lopez and Kevin Diaz, Minneapolis Star
Tribune, October 21, 2005).

It remains unclear if the House Leadership will allow the full House to
vote on this provision. (See "House GSE Bill Headed for Contentious Vote
Next Week," Dawn Kopecki, Dow Jones Newswires, October 21, 2005).