I

106TH CONGRESS

2D SESSION H. R. 5256

To prevent the premature shutdown of certain FHA mortgage insurance

programs.

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 21, 2000

Mr. LAFALCE introduced the following bill; which was referred to the Committee on Banking and Financial Services, and in addition to the Committee on the Budget, 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 concerned

A BILL

To prevent the premature shutdown of certain FHA

mortgage insurance programs.

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 ‘‘FHA Shutdown Pre5 vention Act’’.
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1 SEC. 2. USE OF NEGATIVE CREDIT SUBSIDY FROM GEN2 ERAL AND SPECIAL RISK INSURANCE FUND

3 PROGRAMS.

4 (a) GENERAL INSURANCE FUND.—Section 519 of the

5 National Housing Act (12 U.S.C. 1735c) is amended—

6 (1) by redesignating subsections (e) and (f) as

7 subsections (f) and (g), respectively; and

8 (2) by inserting after subsection (d) the fol9 lowing new subsection:

10 ‘‘(e) USE OF NEGATIVE CREDIT SUBSIDY.—

11 ‘‘(1) IN GENERAL.—In the case of any program

12 for insuring mortgages or loans which are obliga13 tions of the General Insurance Fund that is deter14 mined for any fiscal year, for purposes of title V of

15 the Congressional Budget Act of 1974 (2 U.S.C.

16 661 et seq.), to have costs (as defined in such title)

17 of a negative amount, subject to paragraph (2), the

18 amount of such negative credit subsidy shall be con19 sidered to be new budget authority provided in ad20 vance in an appropriations Act for such fiscal year

21 and shall be available for covering the costs of mak22 ing insurance commitments under any program for

23 insurance for mortgages or loans under which such

24 insurance is an obligation of the General Insurance

25 Fund or the Special Risk Insurance Fund.
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1 ‘‘(2) APPLICABILITY.—Paragraph (1) shall

2 apply with respect to a fiscal year only if and begin3 ning at such time that, during such fiscal year, all

4 amounts of budget authority appropriated for such

5 fiscal year to cover the costs of programs for insur6 ing mortgages or loans which are obligations of the

7 General Insurance Fund or the Special Risk Insur8 ance Fund have been used to enter into commit9 ments for such insurance.’’.

10 (b) SPECIAL RISK INSURANCE FUND.—Section 238

11 of the National Housing Act (12 U.S.C. 1715z–3) is

12 amended—

13 (1) by redesignating subsection (c) as sub14 section (d); and

15 (2) by inserting after subsection (b) the fol16 lowing new subsection:

17 ‘‘(c) USE OF NEGATIVE CREDIT SUBSIDY.—

18 ‘‘(1) IN GENERAL.—In the case of any program

19 for insuring mortgages or loans which are obliga20 tions of the Special Risk Insurance Fund that is de21 termined for any fiscal year, for purposes of title V

22 of the Congressional Budget Act of 1974 (2 U.S.C.

23 661 et seq.), to have costs (as defined in such title)

24 of a negative amount, subject to paragraph (2), the

25 amount of such negative credit subsidy shall be con-
4

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1 sidered to be new budget authority provided in ad2 vance in an appropriations Act for such fiscal year

3 and shall be available for covering the costs of mak4 ing insurance commitments under any program for

5 insurance for mortgages or loans under which such

6 insurance is an obligation of the General Insurance

7 Fund or the Special Risk Insurance Fund.

8 ‘‘(2) APPLICABILITY.—Paragraph (1) shall

9 apply with respect to a fiscal year only if and begin10 ning at such time that, during such fiscal year, all

11 amounts of budget authority appropriated for such

12 fiscal year to cover the costs of programs for insur13 ing mortgages or loans which are obligations of the

14 General Insurance Fund or the Special Risk Insur15 ance Fund have been used to enter into commit16 ments for such insurance.’’.

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