I 

113TH CONGRESS 

2D SESSION H. R. 4791 

To amend section 1333 of the Federal Housing Enterprises Financial Safety 

and Soundness Act of 1992 to ensure that multifamily housing mortgage 

purchases by Fannie Mae and Freddie Mac that are credited toward 

fulfillment of such enterprises multifamily special affordable housing goal 

increase or preserve the number of dwelling units affordable to lowincome families. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 30, 2014 

Mrs. CAROLYN B. MALONEY of New York introduced the following bill; which 

was referred to the Committee on Financial Services 

A BILL 

To amend section 1333 of the Federal Housing Enterprises 

Financial Safety and Soundness Act of 1992 to ensure 

that multifamily housing mortgage purchases by Fannie 

Mae and Freddie Mac that are credited toward fulfillment of such enterprises multifamily special affordable 

housing goal increase or preserve the number of dwelling 

units affordable to low-income families. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Responsible GSE Af3 fordable Housing Investment Act of 2014’’. 

4 SEC. 2. COMPLIANCE WITH MULTIFAMILY SPECIAL AF5 FORDABLE HOUSING GOAL. 

6 (a) IN GENERAL.—Subsection (d) of section 1333 of 

7 the Federal Housing Enterprises Financial Safety and 

8 Soundness Act of 1992 (12 U.S.C. 4563) is amended— 

9 (1) by striking the subsection designation and 

10 all that follows through ‘‘The Director’’ and insert11 ing the following: 

12 ‘‘(d) DETERMINATION OF COMPLIANCE.— 

13 ‘‘(1) IN GENERAL.—The Director’’; and 

14 (2) by adding at the end the following new 

15 paragraph: 

16 ‘‘(2) REDUCTION OF CREDIT FOR CONVERSION

17 TO NON-AFFORDABLE UNITS.—The Director shall, 

18 by regulation, establish standards for the multi19 family special affordable housing goal under this sec20 tion that proportionately reduce the number of units 

21 receiving credit for any mortgage purchase by an en22 terprise that facilitates the conversion of dwelling 

23 units that, at the time of such purchase, are avail24 able for rental at rates that are affordable to low25 income families to dwelling units that would not be 


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1 affordable to low-income families. Such regulations 

2 shall consider and include the following factors: 

3 ‘‘(A) LIMITATION BASED ON PROJECT

4 DEBT.—Credit shall not be provided toward the 

5 achievement of such goal for any mortgage pur6 chase for multifamily housing that involves an 

7 aggregate amount of project debt that is not 

8 reasonable, as determined in accordance with 

9 prudent underwriting standards established by 

10 the Director, in proportion to project income, as 

11 documented in accordance with the standards 

12 established under this subsection. 

13 ‘‘(B) TREATMENT OF SECURITIES.—In the 

14 case of any purchase by an enterprise of a secu15 rity, or an interest in a security, that is backed 

16 by mortgages that finance units that would oth17 erwise qualify for credit toward the achievement 

18 of the multifamily special affordable housing 

19 goal if financed directly by the enterprise, if the 

20 Director determines that such purchase may be 

21 counted toward the achievement of the goal 

22 under this section, the Director shall require 

23 the enterprise to apply the same standard as 

24 set forth in subparagraph (A) with respect to 

25 mortgage purchases to the mortgages backing 


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1 such security to determine whether the units fi2 nanced by such mortgages are eligible for credit 

3 toward the achievement of the housing goal. 

4 ‘‘(C) RENT LEVELS.—In measuring the 

5 performance of each enterprise in meeting the 

6 goal established under this section, rent levels 

7 for units shall be calculated by using the great8 er of the rent levels at the time the loan is pur9 chased or the rent levels under the pro forma 

10 operating income statement on which the un11 derwriting for the loan was based. 

12 ‘‘(D) CARRYOVER.—If the Director pro13 vides credit toward the achievement of the mul14 tifamily special affordable housing goal under 

15 this section, for any year, for any mortgage 

16 purchase by an enterprise, but determines at 

17 any time thereafter that, because of failure to 

18 comply with the standards established under 

19 subparagraphs (A) and (B), such purchase does 

20 not qualify for such credit or does not qualify 

21 for such credit to the extent previously pro22 vided, the Director shall increase the multi23 family special housing goal for such enterprise 

24 for the current or ensuing year otherwise appli25 cable to the extent of such nonqualification.’’. 


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1 (b) REGULATIONS.—The Director of the Federal 

2 Housing Finance Agency shall issue regulations required 

3 under paragraph (2) of section 1333(d) of the Federal 

4 Housing Enterprises Financial Safety and Soundness Act 

5 of 1992, as added by subsection (a) of this section, not 

6 later than the expiration of the 180-day period beginning 

7 upon the date of the enactment of this Act. 

Æ 


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