I 

116TH CONGRESS 

2D SESSION H. R. 8974 

To increase the principal obligation limits for mortgage insurance under 

the National Housing Act for residences in eligible metropolitan cities 

and urban counties. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 16, 2020 

Mr. AGUILAR introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To increase the principal obligation limits for mortgage insurance under the National Housing Act for residences 

in eligible metropolitan cities and urban counties. 

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 Fairness Act’’. 

5 SEC. 2. FHA PRINCIPAL OBLIGATION LIMITS FOR RESI6 DENCES IN ELIGIBLE CITIES AND COUNTIES. 

7 Section 203(b) of the National Housing Act (12 

8 U.S.C. 1709) is amended by adding at the end of para9 graph (2) the following undesignated paragraph: 


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1 ‘‘Notwithstanding any other provision of this 

2 paragraph, in the case of a residence located in an 

3 eligible city or county, clause (i) and (ii) of subpara4 graph (A) shall be considered to require that a mort5 gage shall involve a principal obligation in an 

6 amount that does not exceed in the case of a 1-fam7 ily residence, 125 percent of the median 1-family 

8 house price in the eligible city or county in which the 

9 residence is located, as defined by the Secretary; in 

10 the case of a 2-family residence, 125 percent of the 

11 median 2-family house price in the eligible city or 

12 county in which the residence is located, as defined 

13 by the Secretary; in the case of a 3-family residence, 

14 125 percent of the median 3-family house price in 

15 the eligible city or county in which the residence is 

16 located, as defined by the Secretary; and in the case 

17 of a 4-family residence, 125 percent of the median 

18 4-family house price in the eligible city or county in 

19 which the residence is located, as defined by the Sec20 retary. For the purposes of the preceding sentence, 

21 the term ‘eligible city or county’ means a metropoli22 tan city or urban county (as such terms are defined 

23 in section 102 of the Housing and Community De24 velopment Act of 1974 (42 U.S.C. 5302)) that has 

25 a median 1-family home price that exceeds the 


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1 amount determined under subparagraph (A)(ii) of 

2 this paragraph for the area (as the term is defined 

3 in the first sentence after subparagraph (B)) within 

4 which such city or county is located and is located 

5 in an area that, as determined by the Secretary, ex6 perienced a decrease in maximum principal obliga7 tion amount under this paragraph for 1-family resi8 dences equal to or in excess of 20 percent between 

9 January 1, 2013, and January 1, 2014.’’. 

10 SEC. 3. EFFECTIVE DATE. 

11 The amendment made by this Act shall apply only 

12 to mortgages for which the mortgagee has issued credit 

13 approval for the borrower on or after January 1, 2021. 

Æ 


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