I 

113TH CONGRESS 

1ST SESSION H. R. 1997 

To allow investor participation in the loan rehabilitation program authorized 

under section 203(k) of the National Housing Act. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 15, 2013 

Mr. MCKEON (for himself and Mr. PETERS of California) introduced the 

following bill; which was referred to the Committee on Financial Services 

A BILL 

To allow investor participation in the loan rehabilitation program authorized under section 203(k) of the National 

Housing Act. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Communities Achiev5 ing Sustainability Act’’. 

6 SEC. 2. INVESTOR PARTICIPATION IN FHA REHABILITA7 TION PROGRAM. 

8 (a) INVESTOR PARTICIPATION.— 

9 (1) IN GENERAL.—The Secretary shall, upon 

10 application by a mortgagee and approval of such apVerDate Mar 15 2010 06:11 May 18, 2013 Jkt 029200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1997.IH H1997

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1 plication by the Secretary, insure and make commit2 ments to insure rehabilitation loans (including ad3 vances made during rehabilitation) which are eligible 

4 for insurance under section 203(k) of the National 

5 Housing Act (12 U.S.C. 1709) made by financial in6 stitutions in order to assist in the rehabilitation of 

7 1- to 4-family structures used primarily for residen8 tial purposes. 

9 (2) ELIGIBLE MORTGAGORS.—Notwithstanding 

10 any other provision of law or regulation, such reha11 bilitation loans insured pursuant to this Act shall in12 volve a mortgagor who is an investor. 

13 (b) TERMS AND CONDITIONS.—Such commitments to 

14 insure and such insurance shall be made upon such terms 

15 and conditions which the Secretary may prescribe pursu16 ant to this Act and which are consistent with the provi17 sions of subsections (b), (c), (e), (i), (j), and (k) of section 

18 203 of the National Housing Act (12 U.S.C. 1709 (b), 

19 (c), (e), (i), (j), and (k)), except as modified by the provi20 sions of this Act. 

21 (c) MAXIMUM LOAN COMMITMENT.—To be eligible 

22 for insurance under this Act, a mortgage shall not exceed 

23 90 percent of the appraised value of the 1- to 4-family 

24 structure subject to such mortgage. 


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1 (d) CALENDAR YEAR LIMITATION.—The Secretary 

2 may insure, or enter into a commitment to insure, up to 

3 four 1- to 4-family structures for an investor described 

4 in subsection (a)(2) during a calendar year. 

5 (e) MORTGAGE PREMIUM.—The single premium pay6 ment required under section 203(k)(2)(A) of the National 

7 Housing Act (12 U.S.C. 1709(k)(2)(A)) shall be increased 

8 by 10 basis points for any mortgage insured pursuant to 

9 this Act. 

10 (f) DEFINITIONS.—In this Act: 

11 (1) INVESTOR.— 

12 (A) IN GENERAL.—The term ‘‘investor’’ 

13 means a person who— 

14 (i) obtains a rehabilitation loan for a 

15 structure described in subsection (a)(1) for 

16 the purpose of appreciation or production 

17 of income with respect to such structure; 

18 and 

19 (ii) does not intend on occupying such 

20 structure. 

21 (B) PERSON DEFINED.—As used in this 

22 subparagraph, the term ‘‘person’’ has the 

23 meaning given such term in section 551(2) of 

24 title 5, United States Code. 


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1 (2) MORTGAGEE; MORTGAGOR; MORTGAGE.— 

2 The terms ‘‘mortgagee’’, ‘‘mortgagor’’, and ‘‘mort3 gage’’ have the same meanings as given such terms 

4 in section 201 of the National Housing Act (12 

5 U.S.C. 1707). 

6 SEC. 3. SUNSET PROVISION. 

7 The provisions of this Act shall terminate on the date 

8 that is 2 years following the date of the enactment of this 

9 Act and the Secretary shall not approve any application 

10 described in section 2(a)(1) submitted after the conclusion 

11 of such 2-year period. 

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