I 

108TH CONGRESS 

1ST SESSION H. R. 3507

To expand homeownership opportunities in States having high housing costs. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 18, 2003

Mr. SHERMAN (for himself, Mr. ISRAEL, Mr. CROWLEY, Mrs. MCCARTHY of 

New York, Mr. WEINER, Mr. LYNCH, Mr. GEORGE MILLER of California, 

Mr. FARR, Ms. MILLENDER-MCDONALD, Ms. WOOLSEY, Mrs. CAPPS, 

Mrs. DAVIS of California, Ms. LOFGREN, Ms. PELOSI, Mr. MATSUI, Mr. 

SCHIFF, Ms. LEE, Mr. BERMAN, Mr. HONDA, Mr. LANTOS, and Ms. 

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

A BILL

To expand homeownership opportunities in States having 

high housing costs.

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 ‘‘Improving Home5 ownership Opportunities in High-Cost States Act’’. 
2

•HR 3507 IH 

1 SEC. 2. CONFORMING LOAN LIMIT FOR HIGH-COST AREAS. 

2 (a) FANNIE MAE.—Section 302(b)(2) of the Federal 

3 National Mortgage Association Charter Act (12 U.S.C. 

4 171(b)(2)) is amended—

5 (1) by inserting ‘‘(A)’’ after the paragraph des6 ignation; 

7 (2) by inserting before the period at the end the 

8 following: ‘‘and with respect to properties located in 

9 any State containing any high-cost metropolitan sta10 tistical area (or portion thereof)’’; and 

11 (3) by adding at the end the following new sub12 paragraph: 

13 ‘‘(B) For purposes of this paragraph, a metropolitan 

14 statistical area is a high-cost metropolitan statistical area 

15 for a calendar year and the successive calendar year only 

16 if any of applicable quarterly average one-family home 

17 prices for such area exceeds the dollar amount limitation 

18 otherwise applicable under subparagraph (A) for such cal19 endar year for a single-family residence. 

20 ‘‘(C) For purposes of this paragraph, the applicable 

21 quarterly average one-family home prices for a metropoli22 tan statistical area for a calendar year are the 4 quarterly 

23 average one-family home prices, as follows: 

24 ‘‘(i) The average one-family house price for 

25 such area for the third quarter of the preceding cal26 endar year, as determined based on the average one-
3

•HR 3507 IH 

1 family house price in the monthly survey of all major 

2 lenders conducted by the Federal Housing Finance 

3 Board. 

4 ‘‘(ii) The average one-family house price for 

5 such area for each of the three calendar quarters 

6 preceding the quarter specified in clause (i), as de7 termined in the manner provided in clause (i).’’. 

8 (b) FREDDIE MAC.—Paragraph (2) of section 305(a) 

9 of the Federal Home Loan Mortgage Corporation Act (12 

10 U.S.C. 1454(a)(2)) is amended—

11 (1) by inserting ‘‘(A)’’ after the paragraph des12 ignation; 

13 (2) by inserting before the period at the end the 

14 following: ‘‘and with respect to properties located in 

15 any State containing any high-cost metropolitan sta16 tistical area (or portion thereof)’’; and 

17 (3) by adding at the end the following new sub18 paragraph: 

19 ‘‘(B) For purposes of this paragraph, a metropolitan 

20 statistical area is a high-cost metropolitan statistical area 

21 for a calendar year and the successive calendar year only 

22 if any of applicable quarterly average one-family home 

23 prices for such area exceeds the dollar amount limitation 

24 otherwise applicable under subparagraph (A) for such cal25 endar year for a single-family residence. 
4

•HR 3507 IH 

1 ‘‘(C) For purposes of this paragraph, the applicable 

2 quarterly average one-family home prices for a metropoli3 tan statistical area for a calendar year are the 4 quarterly 

4 average one-family home prices, as follows: 

5 ‘‘(i) The average one-family house price for 

6 such area for the third quarter of the preceding cal7 endar year, as determined based on the average one8 family house price in the monthly survey of all major 

9 lenders conducted by the Federal Housing Finance 

10 Board. 

11 ‘‘(ii) The average one-family house price for 

12 such area for each of the three calendar quarters 

13 preceding the quarter specified in clause (i), as de14 termined in the manner provided in clause (i).’’.

Æ