I

107TH CONGRESS

1ST SESSION H. R. 1481

To prevent the premature shutdown of certain FHA mortgage insurance

programs.

IN THE HOUSE OF REPRESENTATIVES

APRIL 4, 2001

Mr. LAFALCE (for himself and Mr. FRANK) introduced the following bill;

which was referred to the Committee on Financial Services

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’’.

6 SEC. 2. USE OF NEGATIVE CREDIT SUBSIDY FROM GEN7 ERAL AND SPECIAL RISK INSURANCE FUND

8 PROGRAMS.

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

10 National Housing Act (12 U.S.C. 1735c) is amended—
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1 (1) by redesignating subsections (e) and (f) as

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

3 (2) by inserting after subsection (d) the fol4 lowing new subsection:

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

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

7 for insuring mortgages or loans which are obliga8 tions of the General Insurance Fund that is deter9 mined for any fiscal year, for purposes of title V of

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

11 661 et seq.), to have costs (as defined in such title)

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

13 amount of such negative credit subsidy shall be con14 sidered to be new budget authority provided in ad15 vance in an appropriations Act for such fiscal year

16 and shall be available for covering the costs of mak17 ing insurance commitments under any program for

18 insurance for mortgages or loans under which such

19 insurance is an obligation of the General Insurance

20 Fund or the Special Risk Insurance Fund.

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

22 apply with respect to a fiscal year only if and begin23 ning at such time that, during such fiscal year, all

24 amounts of budget authority appropriated for such

25 fiscal year to cover the costs of programs for insur-
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1 ing mortgages or loans which are obligations of the

2 General Insurance Fund or the Special Risk Insur3 ance Fund have been used to enter into commit4 ments for such insurance.’’.

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

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

7 amended—

8 (1) by redesignating subsection (c) as sub9 section (d); and

10 (2) by inserting after subsection (b) the fol11 lowing new subsection:

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

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

14 for insuring mortgages or loans which are obliga15 tions of the Special Risk Insurance Fund that is de16 termined for any fiscal year, for purposes of title V

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

18 661 et seq.), to have costs (as defined in such title)

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

20 amount of such negative credit subsidy shall be con21 sidered to be new budget authority provided in ad22 vance in an appropriations Act for such fiscal year

23 and shall be available for covering the costs of mak24 ing insurance commitments under any program for

25 insurance for mortgages or loans under which such
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1 insurance is an obligation of the General Insurance

2 Fund or the Special Risk Insurance Fund.

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

4 apply with respect to a fiscal year only if and begin5 ning at such time that, during such fiscal year, all

6 amounts of budget authority appropriated for such

7 fiscal year to cover the costs of programs for insur8 ing mortgages or loans which are obligations of the

9 General Insurance Fund or the Special Risk Insur10 ance Fund have been used to enter into commit11 ments for such insurance.’’.

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