In the Senate of the United States,

February 7 (legislative day, February 6), 2008.

Resolved, That the bill from the House of Representatives (H.R. 5140) entitled ‘‘An Act to provide economic stimulus through recovery rebates to individuals, incentives for

business investment, and an increase in conforming and FHA

loan limits.’’, do pass with the following

AMENDMENT:

Strike all after the enacting clause and insert the

following:

1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

2 (a) SHORT TITLE.—This Act may be cited as the

3 ‘‘Economic Stimulus Act of 2008’’.
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1 (b) TABLE OF CONTENTS.—The table of contents of this

2 Act is as follows:

Sec. 1. Short title; table of contents.

TITLE I—RECOVERY REBATES AND INCENTIVES FOR BUSINESS

INVESTMENT

Sec. 101. 2008 recovery rebates for individuals.

Sec. 102. Temporary increase in limitations on expensing of certain depreciable

business assets.

Sec. 103. Special allowance for certain property acquired during 2008.

TITLE II—HOUSING GSE AND FHA LOAN LIMITS

Sec. 201. Temporary conforming loan limit increase for Fannie Mae and Freddie

Mac.

Sec. 202. Temporary loan limit increase for FHA.

TITLE III—EMERGENCY DESIGNATION

Sec. 301. Emergency designation.

3 TITLE I—RECOVERY REBATES

4 AND INCENTIVES FOR BUSI5 NESS INVESTMENT

6 SEC. 101. 2008 RECOVERY REBATES FOR INDIVIDUALS.

7 (a) IN GENERAL.—Section 6428 of the Internal Rev8 enue Code of 1986 is amended to read as follows:

9 ‘‘SEC. 6428. 2008 RECOVERY REBATES FOR INDIVIDUALS.

10 ‘‘(a) IN GENERAL.—In the case of an eligible indi11 vidual, there shall be allowed as a credit against the tax

12 imposed by subtitle A for the first taxable year beginning

13 in 2008 an amount equal to the lesser of—

14 ‘‘(1) net income tax liability, or

15 ‘‘(2) $600 ($1,200 in the case of a joint return).

16 ‘‘(b) SPECIAL RULES.—
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1 ‘‘(1) IN GENERAL.—In the case of a taxpayer de2 scribed in paragraph (2)—

3 ‘‘(A) the amount determined under sub4 section (a) shall not be less than $300 ($600 in

5 the case of a joint return), and

6 ‘‘(B) the amount determined under sub7 section (a) (after the application of subpara8 graph (A)) shall be increased by the product of

9 $300 multiplied by the number of qualifying

10 children (within the meaning of section 24(c)) of

11 the taxpayer.

12 ‘‘(2) TAXPAYER DESCRIBED.—A taxpayer is de13 scribed in this paragraph if the taxpayer—

14 ‘‘(A) has qualifying income of at least

15 $3,000, or

16 ‘‘(B) has—

17 ‘‘(i) net income tax liability which is

18 greater than zero, and

19 ‘‘(ii) gross income which is greater

20 than the sum of the basic standard deduc21 tion plus the exemption amount (twice the

22 exemption amount in the case of a joint re23 turn).
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1 ‘‘(c) TREATMENT OF CREDIT.—The credit allowed by

2 subsection (a) shall be treated as allowed by subpart C of

3 part IV of subchapter A of chapter 1.

4 ‘‘(d) LIMITATION BASED ON ADJUSTED GROSS IN5 COME.—The amount of the credit allowed by subsection (a)

6 (determined without regard to this subsection and sub7 section (f)) shall be reduced (but not below zero) by 5 per8 cent of so much of the taxpayer’s adjusted gross income as

9 exceeds $75,000 ($150,000 in the case of a joint return).

10 ‘‘(e) DEFINITIONS.—For purposes of this section—

11 ‘‘(1) QUALIFYING INCOME.—The term ‘qualifying

12 income’ means—

13 ‘‘(A) earned income,

14 ‘‘(B) social security benefits (within the

15 meaning of section 86(d)), and

16 ‘‘(C) any compensation or pension received

17 under chapter 11, chapter 13, or chapter 15 of

18 title 38, United States Code.

19 ‘‘(2) NET INCOME TAX LIABILITY.—The term ‘net

20 income tax liability’ means the excess of—

21 ‘‘(A) the sum of the taxpayer’s regular tax

22 liability (within the meaning of section 26(b))

23 and the tax imposed by section 55 for the taxable

24 year, over
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1 ‘‘(B) the credits allowed by part IV (other

2 than section 24 and subpart C thereof) of sub3 chapter A of chapter 1.

4 ‘‘(3) ELIGIBLE INDIVIDUAL.—The term ‘eligible

5 individual’ means any individual other than—

6 ‘‘(A) any nonresident alien individual,

7 ‘‘(B) any individual with respect to whom

8 a deduction under section 151 is allowable to an9 other taxpayer for a taxable year beginning in

10 the calendar year in which the individual’s tax11 able year begins, and

12 ‘‘(C) an estate or trust.

13 ‘‘(4) EARNED INCOME.—The term ‘earned in14 come’ has the meaning set forth in section 32(c)(2) ex15 cept that—

16 ‘‘(A) subclause (II) of subparagraph (B)(vi)

17 thereof shall be applied by substituting ‘January

18 1, 2009’ for ‘January 1, 2008’, and

19 ‘‘(B) such term shall not include net earn20 ings from self-employment which are not taken

21 into account in computing taxable income.

22 ‘‘(5) BASIC STANDARD DEDUCTION; EXEMPTION

23 AMOUNT.—The terms ‘basic standard deduction’ and

24 ‘exemption amount’ shall have the same respective

25 meanings as when used in section 6012(a).
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1 ‘‘(f) COORDINATION WITH ADVANCE REFUNDS OF

2 CREDIT.—

3 ‘‘(1) IN GENERAL.—The amount of credit which

4 would (but for this paragraph) be allowable under

5 this section shall be reduced (but not below zero) by

6 the aggregate refunds and credits made or allowed to

7 the taxpayer under subsection (g). Any failure to so

8 reduce the credit shall be treated as arising out of a

9 mathematical or clerical error and assessed according

10 to section 6213(b)(1).

11 ‘‘(2) JOINTRETURNS.—In the case of a refund or

12 credit made or allowed under subsection (g) with re13 spect to a joint return, half of such refund or credit

14 shall be treated as having been made or allowed to

15 each individual filing such return.

16 ‘‘(g) ADVANCE REFUNDS AND CREDITS.—

17 ‘‘(1) IN GENERAL.—Each individual who was an

18 eligible individual for such individual’s first taxable

19 year beginning in 2007 shall be treated as having

20 made a payment against the tax imposed by chapter

21 1 for such first taxable year in an amount equal to

22 the advance refund amount for such taxable year.

23 ‘‘(2) ADVANCE REFUND AMOUNT.—For purposes

24 of paragraph (1), the advance refund amount is the

25 amount that would have been allowed as a credit
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1 under this section for such first taxable year if this

2 section (other than subsection (f) and this subsection)

3 had applied to such taxable year.

4 ‘‘(3) TIMING OF PAYMENTS.—The Secretary

5 shall, subject to the provisions of this title, refund or

6 credit any overpayment attributable to this section as

7 rapidly as possible. No refund or credit shall be made

8 or allowed under this subsection after December 31,

9 2008.

10 ‘‘(4) NO INTEREST.—No interest shall be allowed

11 on any overpayment attributable to this section.

12 ‘‘(h) IDENTIFICATION NUMBER REQUIREMENT.—

13 ‘‘(1) IN GENERAL.—No credit shall be allowed

14 under subsection (a) to an eligible individual who

15 does not include on the return of tax for the taxable

16 year—

17 ‘‘(A) such individual’s valid identification

18 number,

19 ‘‘(B) in the case of a joint return, the valid

20 identification number of such individual’s

21 spouse, and

22 ‘‘(C) in the case of any qualifying child

23 taken into account under subsection (b)(1)(B),

24 the valid identification number of such quali25 fying child.
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1 ‘‘(2) VALID IDENTIFICATION NUMBER.—For pur2 poses of paragraph (1), the term ‘valid identification

3 number’ means a social security number issued to an

4 individual by the Social Security Administration.

5 Such term shall not include a TIN issued by the In6 ternal Revenue Service.’’.

7 (b) ADMINISTRATIVE AMENDMENTS.—

8 (1) DEFINITION OF DEFICIENCY.—Section

9 6211(b)(4)(A) of the Internal Revenue Code of 1986

10 is amended by striking ‘‘and 53(e)’’ and inserting

11 ‘‘53(e), and 6428’’.

12 (2) MATHEMATICAL OR CLERICAL ERROR AU13 THORITY.—Section 6213(g)(2)(L) of such Code is

14 amended by striking ‘‘or 32’’ and inserting ‘‘32, or

15 6428’’.

16 (c) TREATMENT OF POSSESSIONS.—

17 (1) PAYMENTS TO POSSESSIONS.—

18 (A) MIRROR CODE POSSESSION.—The Sec19 retary of the Treasury shall make a payment to

20 each possession of the United States with a mir21 ror code tax system in an amount equal to the

22 loss to that possession by reason of the amend23 ments made by this section. Such amount shall

24 be determined by the Secretary of the Treasury
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1 based on information provided by the govern2 ment of the respective possession.

3 (B) OTHER POSSESSIONS.—The Secretary

4 of the Treasury shall make a payment to each

5 possession of the United States which does not

6 have a mirror code tax system in an amount es7 timated by the Secretary of the Treasury as

8 being equal to the aggregate benefits that would

9 have been provided to residents of such possession

10 by reason of the amendments made by this sec11 tion if a mirror code tax system had been in ef12 fect in such possession. The preceding sentence

13 shall not apply with respect to any possession of

14 the United States unless such possession has a

15 plan, which has been approved by the Secretary

16 of the Treasury, under which such possession will

17 promptly distribute such payment to the resi18 dents of such possession.

19 (2) COORDINATION WITH CREDIT ALLOWED

20 AGAINST UNITED STATES INCOME TAXES.—No credit

21 shall be allowed against United States income taxes

22 under section 6428 of the Internal Revenue Code of

23 1986 (as amended by this section) to any person—
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1 (A) to whom a credit is allowed against

2 taxes imposed by the possession by reason of the

3 amendments made by this section, or

4 (B) who is eligible for a payment under a

5 plan described in paragraph (1)(B).

6 (3) DEFINITIONS AND SPECIAL RULES.—

7 (A) POSSESSION OF THE UNITED STATES.—

8 For purposes of this subsection, the term ‘‘posses9 sion of the United States’’ includes the Common10 wealth of Puerto Rico and the Commonwealth of

11 the Northern Mariana Islands.

12 (B) MIRROR CODE TAX SYSTEM.—For pur13 poses of this subsection, the term ‘‘mirror code

14 tax system’’ means, with respect to any posses15 sion of the United States, the income tax system

16 of such possession if the income tax liability of

17 the residents of such possession under such sys18 tem is determined by reference to the income tax

19 laws of the United States as if such possession

20 were the United States.

21 (C) TREATMENT OF PAYMENTS.—For pur22 poses of section 1324(b)(2) of title 31, United

23 States Code, the payments under this subsection

24 shall be treated in the same manner as a refund

25 due from the credit allowed under section 6428
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1 of the Internal Revenue Code of 1986 (as amend2 ed by this section).

3 (d) REFUNDS DISREGARDED IN THE ADMINISTRATION

4 OF FEDERAL PROGRAMS AND FEDERALLY ASSISTED PRO5 GRAMS.—Any credit or refund allowed or made to any indi6 vidual by reason of section 6428 of the Internal Revenue

7 Code of 1986 (as amended by this section) or by reason of

8 subsection (c) of this section shall not be taken into account

9 as income and shall not be taken into account as resources

10 for the month of receipt and the following 2 months, for

11 purposes of determining the eligibility of such individual

12 or any other individual for benefits or assistance, or the

13 amount or extent of benefits or assistance, under any Fed14 eral program or under any State or local program financed

15 in whole or in part with Federal funds.

16 (e) APPROPRIATIONS TO CARRY OUT REBATES.—

17 (1) IN GENERAL.—Immediately upon the enact18 ment of this Act, the following sums are appropriated,

19 out of any money in the Treasury not otherwise ap20 propriated, for the fiscal year ending September 30,

21 2008:

22 (A) DEPARTMENT OF TREASURY.—

23 (i) For an additional amount for ‘‘De24 partment of the Treasury—Financial Man25 agement Service—Salaries and Expenses’’,
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1 $64,175,000, to remain available until Sep2 tember 30, 2009.

3 (ii) For an additional amount for

4 ‘‘Department of the Treasury—Internal

5 Revenue Service—Taxpayer Services’’,

6 $50,720,000, to remain available until Sep7 tember 30, 2009.

8 (iii) For an additional amount for

9 ‘‘Department of the Treasury—Internal

10 Revenue Service—Operations Support’’,

11 $151,415,000, to remain available until

12 September 30, 2009.

13 (B) SOCIAL SECURITY ADMINISTRATION.—

14 For an additional amount for ‘‘Social Security

15 Administration—Limitation on Administrative

16 Expenses’’, $31,000,000, to remain available

17 until September 30, 2008.

18 (2) REPORTS.—No later than 15 days after en19 actment of this Act, the Secretary of the Treasury

20 shall submit a plan to the Committees on Appropria21 tions of the House of Representatives and the Senate

22 detailing the expected use of the funds provided by

23 paragraph (1)(A). Beginning 90 days after enactment

24 of this Act, the Secretary of the Treasury shall submit

25 a quarterly report to the Committees on Appropria-
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1 tions of the House of Representatives and the Senate

2 detailing the actual expenditure of funds provided by

3 paragraph (1)(A) and the expected expenditure of

4 such funds in the subsequent quarter.

5 (f) CONFORMING AMENDMENTS.—

6 (1) Paragraph (2) of section 1324(b) of title 31,

7 United States Code, is amended by inserting ‘‘or

8 6428’’ after ‘‘section 35’’.

9 (2) Paragraph (1) of section 1(i) of the Internal

10 Revenue Code of 1986 is amended by striking sub11 paragraph (D).

12 (3) The item relating to section 6428 in the table

13 of sections for subchapter B of chapter 65 of such

14 Code is amended to read as follows:

‘‘Sec. 6428. 2008 recovery rebates for individuals.’’.

15 SEC. 102. TEMPORARY INCREASE IN LIMITATIONS ON EX16 PENSING OF CERTAIN DEPRECIABLE BUSI17 NESS ASSETS.

18 (a) IN GENERAL.—Subsection (b) of section 179 of the

19 Internal Revenue Code of 1986 (relating to limitations) is

20 amended by adding at the end the following new paragraph:

21 ‘‘(7) INCREASE IN LIMITATIONS FOR 2008.—In

22 the case of any taxable year beginning in 2008—

23 ‘‘(A) the dollar limitation under paragraph

24 (1) shall be $250,000,
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1 ‘‘(B) the dollar limitation under paragraph

2 (2) shall be $800,000, and

3 ‘‘(C) the amounts described in subpara4 graphs (A) and (B) shall not be adjusted under

5 paragraph (5).’’.

6 (b) EFFECTIVE DATE.—The amendment made by this

7 section shall apply to taxable years beginning after Decem8 ber 31, 2007.

9 SEC. 103. SPECIAL ALLOWANCE FOR CERTAIN PROPERTY

10 ACQUIRED DURING 2008.

11 (a) IN GENERAL.—Subsection (k) of section 168 of the

12 Internal Revenue Code of 1986 (relating to special allow13 ance for certain property acquired after September 10,

14 2001, and before January 1, 2005) is amended—

15 (1) by striking ‘‘September 10, 2001’’ each place

16 it appears and inserting ‘‘December 31, 2007’’,

17 (2) by striking ‘‘September 11, 2001’’ each place

18 it appears and inserting ‘‘January 1, 2008’’,

19 (3) by striking ‘‘January 1, 2005’’ each place it

20 appears and inserting ‘‘January 1, 2009’’, and

21 (4) by striking ‘‘January 1, 2006’’ each place it

22 appears and inserting ‘‘January 1, 2010’’.

23 (b) 50 PERCENT ALLOWANCE.—Subparagraph (A) of

24 section 168(k)(1) of such Code is amended by striking ‘‘30

25 percent’’ and inserting ‘‘50 percent’’.
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1 (c) CONFORMING AMENDMENTS.—

2 (1) Subclause (I) of section 168(k)(2)(B)(i) of

3 such Code is amended by striking ‘‘and (iii)’’ and in4 serting ‘‘(iii), and (iv)’’.

5 (2) Subclause (IV) of section 168(k)(2)(B)(i) of

6 such Code is amended by striking ‘‘clauses (ii) and

7 (iii)’’ and inserting ‘‘clause (iii)’’.

8 (3) Clause (i) of section 168(k)(2)(C) of such

9 Code is amended by striking ‘‘and (iii)’’ and insert10 ing ‘‘, (iii), and (iv)’’.

11 (4) Clause (i) of section 168(k)(2)(F) of such

12 Code is amended by striking ‘‘$4,600’’ and inserting

13 ‘‘$8,000’’.

14 (5)(A) Subsection (k) of section 168 of such Code

15 is amended by striking paragraph (4).

16 (B) Clause (iii) of section 168(k)(2)(D) of such

17 Code is amended by striking the last sentence.

18 (6) Paragraph (4) of section 168(l) of such Code

19 is amended by redesignating subparagraphs (A), (B),

20 and (C) as subparagraphs (B), (C), and (D) and in21 serting before subparagraph (B) (as so redesignated)

22 the following new subparagraph:

23 ‘‘(A) BONUS DEPRECIATION PROPERTY

24 UNDER SUBSECTION (K).—Such term shall not
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1 include any property to which section 168(k) ap2 plies.’’.

3 (7) Paragraph (5) of section 168(l) of such Code

4 is amended—

5 (A) by striking ‘‘September 10, 2001’’ in

6 subparagraph (A) and inserting ‘‘December 31,

7 2007’’, and

8 (B) by striking ‘‘January 1, 2005’’ in sub9 paragraph (B) and inserting ‘‘January 1,

10 2009’’.

11 (8) Subparagraph (D) of section 1400L(b)(2) of

12 such Code is amended by striking ‘‘January 1, 2005’’

13 and inserting ‘‘January 1, 2010’’.

14 (9) Paragraph (3) of section 1400N(d) of such

15 Code is amended—

16 (A) by striking ‘‘September 10, 2001’’ in

17 subparagraph (A) and inserting ‘‘December 31,

18 2007’’, and

19 (B) by striking ‘‘January 1, 2005’’ in sub20 paragraph (B) and inserting ‘‘January 1,

21 2009’’.

22 (10) Paragraph (6) of section 1400N(d) of such

23 Code is amended by adding at the end the following

24 new subparagraph:
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1 ‘‘(E) EXCEPTION FOR BONUS DEPRECIATION

2 PROPERTY UNDER SECTION 168(k).—The term

3 ‘specified Gulf Opportunity Zone extension prop4 erty’ shall not include any property to which sec5 tion 168(k) applies.’’.

6 (11) The heading for subsection (k) of section 168

7 of such Code is amended—

8 (A) by striking ‘‘SEPTEMBER 10, 2001’’ and

9 inserting ‘‘DECEMBER 31, 2007’’, and

10 (B) by striking ‘‘JANUARY 1, 2005’’ and in11 serting ‘‘JANUARY 1, 2009’’.

12 (12) The heading for clause (ii) of section

13 168(k)(2)(B) of such Code is amended by striking

14 ‘‘PRE-JANUARY 1, 2005’’ and inserting ‘‘PRE-JANUARY

15 1, 2009’’.

16 (d) EFFECTIVE DATE.—The amendments made by this

17 section shall apply to property placed in service after De18 cember 31, 2007, in taxable years ending after such date.

19 TITLE II—HOUSING GSE AND

20 FHA LOAN LIMITS

21 SEC. 201. TEMPORARY CONFORMING LOAN LIMIT INCREASE

22 FOR FANNIE MAE AND FREDDIE MAC.

23 (a) INCREASE OF HIGH COST AREAS LIMITS FOR

24 HOUSING GSES.—For mortgages originated during the pe-
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1 riod beginning on July 1, 2007, and ending at the end of

2 December 31, 2008:

3 (1) FANNIE MAE.—With respect to the Federal

4 National Mortgage Association, notwithstanding sec5 tion 302(b)(2) of the Federal National Mortgage Asso6 ciation Charter Act (12 U.S.C. 1717(b)(2)), the limi7 tation on the maximum original principal obligation

8 of a mortgage that may be purchased by the Associa9 tion shall be the higher of—

10 (A) the limitation for 2008 determined

11 under such section 302(b)(2) for a residence of

12 the applicable size; or

13 (B) 125 percent of the area median price

14 for a residence of the applicable size, but in no

15 case to exceed 175 percent of the limitation for

16 2008 determined under such section 302(b)(2) for

17 a residence of the applicable size.

18 (2) FREDDIE MAC.—With respect to the Federal

19 Home Loan Mortgage Corporation, notwithstanding

20 section 305(a)(2) of the Federal Home Loan Mortgage

21 Corporation Act (12 U.S.C. 1454(a)(2)), the limita22 tion on the maximum original principal obligation of

23 a mortgage that may be purchased by the Corporation

24 shall be the higher of—
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1 (A) the limitation determined for 2008

2 under such section 305(a)(2) for a residence of

3 the applicable size; or

4 (B) 125 percent of the area median price

5 for a residence of the applicable size, but in no

6 case to exceed 175 percent of the limitation deter7 mined for 2008 under such section 305(a)(2) for

8 a residence of the applicable size.

9 (b) DETERMINATION OF LIMITS.—The areas and area

10 median prices used for purposes of the determinations

11 under subsection (a) shall be the areas and area median

12 prices used by the Secretary of Housing and Urban Devel13 opment in determining the applicable limits under section

14 202 of this title.

15 (c) RULE OF CONSTRUCTION.—A mortgage originated

16 during the period referred to in subsection (a) that is eligi17 ble for purchase by the Federal National Mortgage Associa18 tion or the Federal Home Loan Mortgage Corporation pur19 suant to this section shall be eligible for such purchase for

20 the duration of the term of the mortgage, notwithstanding

21 that such purchase occurs after the expiration of such pe22 riod.

23 (d) EFFECTON HOUSING GOALS.—Notwithstanding

24 any other provision of law, mortgages purchased in accord25 ance with the increased maximum original principal obli-
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1 gation limitations determined pursuant to this section shall

2 not be considered in determining performance with respect

3 to any of the housing goals established under section 1332,

4 1333, or 1334 of the Housing and Community Development

5 Act of 1992 (12 U.S.C. 4562–4), and shall not be considered

6 in determining compliance with such goals pursuant to sec7 tion 1336 of such Act (12 U.S.C. 4566) and regulations,

8 orders, or guidelines issued thereunder.

9 (e) SENSE OF CONGRESS.—It is the sense of the Con10 gress that the securitization of mortgages by the Federal Na11 tional Mortgage Association and the Federal Home Loan

12 Mortgage Corporation plays an important role in providing

13 liquidity to the United States housing markets. Therefore,

14 the Congress encourages the Federal National Mortgage As15 sociation and the Federal Home Loan Mortgage Corpora16 tion to securitize mortgages acquired under the increased

17 conforming loan limits established in this section, to the ex18 tent that such securitizations can be effected in a timely

19 and efficient manner that does not impose additional costs

20 for mortgages originated, purchased, or securitized under

21 the existing limits or interfere with the goal of adding li22 quidity to the market.

23 SEC. 202. TEMPORARY LOAN LIMIT INCREASE FOR FHA.

24 (a) INCREASE OF HIGH-COST AREA LIMIT.—For

25 mortgages for which the mortgagee has issued credit ap-
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1 proval for the borrower on or before December 31, 2008, sub2 paragraph (A) of section 203(b)(2) of the National Housing

3 Act (12 U.S.C. 1709(b)(2)(A)) shall be considered (except

4 for purposes of section 255(g) of such Act (12 U.S.C. 1715z–

5 20(g))) to require that a mortgage shall involve a principal

6 obligation in an amount that does not exceed the lesser of—

7 (1) in the case of a 1-family residence, 125 per8 cent of the median 1-family house price in the area,

9 as determined by the Secretary; and in the case of a

10 2-, 3-, or 4-family residence, the percentage of such

11 median price that bears the same ratio to such me12 dian price as the dollar amount limitation deter13 mined for 2008 under section 305(a)(2) of the Federal

14 Home Loan Mortgage Corporation Act (12 U.S.C.

15 1454(a)(2)) for a 2-, 3-, or 4-family residence, respec16 tively, bears to the dollar amount limitation deter17 mined for 2008 under such section for a 1-family res18 idence; or

19 (2) 175 percent of the dollar amount limitation

20 determined for 2008 under such section 305(a)(2) for

21 a residence of the applicable size (without regard to

22 any authority to increase such limitation with respect

23 to properties located in Alaska, Guam, Hawaii, or the

24 Virgin Islands);
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1 except that the dollar amount limitation in effect under this

2 subsection for any size residence for any area shall not be

3 less than the greater of (A) the dollar amount limitation

4 in effect under such section 203(b)(2) for the area on Octo5 ber 21, 1998; or (B) 65 percent of the dollar amount limita6 tion determined for 2008 under such section 305(a)(2) for

7 a residence of the applicable size. Any reference in this sub8 section to dollar amount limitations in effect under section

9 305 (a)(2) of the Federal Home Loan Mortgage Corporation

10 Act means such limitations as in effect without regard to

11 any increase in such limitation pursuant to section 201 of

12 this title.

13 (b) DISCRETIONARY AUTHORITY.—If the Secretary of

14 Housing and Urban Development determines that market

15 conditions warrant such an increase, the Secretary may,

16 for the period that begins upon the date of the enactment

17 of this Act and ends at the end of the date specified in sub18 section (a), increase the maximum dollar amount limita19 tion determined pursuant to subsection (a) with respect to

20 any particular size or sizes of residences, or with respect

21 to residences located in any particular area or areas, to

22 an amount that does not exceed the maximum dollar

23 amount then otherwise in effect pursuant to subsection (a)

24 for such size residence, or for such area (if applicable), by

25 not more than $100,000.
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1 (c) PUBLICATION OF AREA MEDIAN PRICES AND LOAN

2 LIMITS.—The Secretary of Housing and Urban Develop3 ment shall publish the median house prices and mortgage

4 principal obligation limits, as revised pursuant to this sec5 tion, for all areas as soon as practicable, but in no case

6 more than 30 days after the date of the enactment of this

7 Act. With respect to existing areas for which the Secretary

8 has not established area median prices before such date of

9 enactment, the Secretary may rely on existing commercial

10 data in determining area median prices and calculating

11 such revised principal obligation limits.

12 TITLE III—EMERGENCY

13 DESIGNATION

14 SEC. 301. EMERGENCY DESIGNATION.

15 For purposes of Senate enforcement, all provisions of

16 this Act are designated as emergency requirements and nec17 essary to meet emergency needs pursuant to section 204 of

18 S. Con. Res. 21 (110th Congress), the concurrent resolution

19 on the budget for fiscal year 2008.

Attest:

Secretary.
110TH CONGRESS

2D SESSION H. R. 5140

AMENDMENT