HELPER Act of 2023

Subjects: Finance and Financial Sector


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1514 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                S. 1514

  To amend the National Housing Act to establish a mortgage insurance 
         program for first responders, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 10, 2023

    Mr. Rubio (for himself, Mr. Ossoff, Mr. Brown, Mr. Warnock, Mr. 
    Menendez, Ms. Cortez Masto, and Mr. Blumenthal) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To amend the National Housing Act to establish a mortgage insurance 
         program for first responders, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Homes for Every Local Protector, 
Educator, and Responder Act of 2023'' or the ``HELPER Act of 2023''.

SEC. 2. FHA MORTGAGE INSURANCE PROGRAM FOR MORTGAGES FOR FIRST 
              RESPONDERS.

    Section 203 of the National Housing Act (12 U.S.C. 1709) is amended 
by adding at the end the following:
    ``(z) FHA Mortgage Insurance Program for Mortgages for First 
Responders.--
            ``(1) Definitions.--In this subsection:
                    ``(A) First responder.--The term `first responder' 
                means an individual who is, as attested by the 
                individual--
                            ``(i)(I) employed full-time by a law 
                        enforcement agency of the Federal Government, a 
                        State, a Tribal government, or a unit of 
                        general local government; and
                            ``(II) in carrying out such full-time 
                        employment, sworn to uphold, and make arrests 
                        for violations of, Federal, State, county, 
                        township, municipal, or Tribal laws, or 
                        authorized by law to supervise sentenced 
                        criminal offenders or individuals with pending 
                        criminal charges;
                            ``(ii) employed full-time as a firefighter, 
                        paramedic, or emergency medical technician by a 
                        fire department or emergency medical services 
                        responder unit of the Federal Government, a 
                        State, a Tribal government, or a unit of 
                        general local government; or
                            ``(iii) employed as a full-time teacher by 
                        a State-accredited public school or private 
                        school that provides direct services to 
                        students in grades pre-kindergarten through 12.
                    ``(B) First-time homebuyer.--The term `first-time 
                homebuyer' has the meaning given the term in section 
                104 of the Cranston-Gonzalez National Affordable 
                Housing Act (42 U.S.C. 12704).
                    ``(C) State.--The term `State' has the meaning 
                given the term in section 201.
                    ``(D) Tribal government.--The term `Tribal 
                government' means the recognized governing body of any 
                Indian or Alaska Native tribe, band, nation, pueblo, 
                village, community, component band, or component 
                reservation, individually identified (including 
                parenthetically) in the list published most recently 
                pursuant to section 104 of the Federally Recognized 
                Indian Tribe List Act of 1994 (25 U.S.C. 5131).
            ``(2) Authority.--The Secretary may, upon application by a 
        mortgagee, insure any mortgage eligible for insurance under 
        this subsection to an eligible mortgagor and, upon such terms 
        and conditions as the Secretary may prescribe, make commitments 
        for the insurance of such mortgages prior to the date of their 
        execution or disbursement.
            ``(3) Mortgage terms; mortgage insurance premium.--
                    ``(A) Terms.--
                            ``(i) In general.--A mortgage insured under 
                        this subsection shall--
                                    ``(I) be made to an eligible 
                                mortgagor;
                                    ``(II) comply with the requirements 
                                established under paragraphs (1) 
                                through (7) of subsection (b); and
                                    ``(III) be used only to--
                                            ``(aa) purchase or repair a 
                                        1-family residence, including a 
                                        1-family dwelling unit in a 
                                        condominium project, to serve 
                                        as a principal residence of the 
                                        mortgagor, as attested by the 
                                        mortgagor; or
                                            ``(bb) purchase a principal 
                                        residence of the mortgagor, as 
                                        attested by the mortgagor, 
                                        which is--

                                                    ``(AA) a 
                                                manufactured home to be 
                                                permanently affixed to 
                                                a lot that is owned by 
                                                the mortgagor and 
                                                titled as real 
                                                property; or

                                                    ``(BB) a 
                                                manufactured home and a 
                                                lot to which the home 
                                                will be permanently 
                                                affixed that is titled 
                                                as real property.

                            ``(ii) No down payment.--Notwithstanding 
                        any provision to the contrary in the matter 
                        following subsection (b)(2)(B) with respect to 
                        first-time homebuyers--
                                    ``(I) the Secretary may insure any 
                                mortgage that involves an original 
                                principal obligation (including 
                                allowable charges and fees and the 
                                premium pursuant to subparagraph (B) of 
                                this paragraph) in an amount not to 
                                exceed 100 percent of the appraised 
                                value of the property involved; and
                                    ``(II) the mortgagor of a mortgage 
                                described in subclause (I) shall not be 
                                required to pay any amount, in cash or 
                                its equivalent, on account of the 
                                property.
                    ``(B) Mortgage insurance premium.--
                            ``(i) Up-front premium.--The Secretary 
                        shall establish and collect an insurance 
                        premium in connection with mortgages insured 
                        under this subsection that is a percentage of 
                        the original insured principal obligation of 
                        the mortgage amount, which shall be collected 
                        at the time and in the manner provided under 
                        subsection (c)(2)(A), except that the premiums 
                        collected under this subparagraph--
                                    ``(I) may be in an amount that 
                                exceeds 3 percent of the amount of the 
                                original insured principal obligation 
                                of the mortgage; and
                                    ``(II) may be adjusted by the 
                                Secretary from time to time by 
                                increasing or decreasing such 
                                percentages as the Secretary considers 
                                necessary, based on the performance of 
                                mortgages insured under this subsection 
                                and market conditions.
                            ``(ii) Prohibition of monthly premiums.--A 
                        mortgage insured under this subsection shall 
                        not be subject to a monthly insurance premium, 
                        including a premium under subsection (c)(2)(B).
            ``(4) Eligible mortgagors.--The mortgagor for a mortgage 
        insured under this subsection shall, at the time the mortgage 
        is executed--
                    ``(A) be a first-time homebuyer;
                    ``(B) have completed a program of housing 
                counseling provided through a housing counseling agency 
                approved by the Secretary;
                    ``(C) as attested by the mortgagor--
                            ``(i) be employed as a first responder;
                            ``(ii) have been--
                                    ``(I) employed as a first responder 
                                for not less than 4 of the 5 years 
                                preceding the date on which the 
                                mortgagor submitted an application to 
                                insure the mortgage under this section; 
                                or
                                    ``(II) released from employment as 
                                a first responder due to an occupation-
                                connected disability resulting from 
                                such duty or employment;
                            ``(iii) be in good standing as a first 
                        responder and not on probation or under 
                        investigation for conduct that, if determined 
                        to have occurred, is grounds for termination of 
                        employment;
                            ``(iv) in good faith intend to continue as 
                        a first responder for not less than 1 year 
                        following the date of closing on the mortgage; 
                        and
                            ``(v) have previously never been the 
                        mortgagor under a mortgage insured under this 
                        subsection;
                    ``(D) meet such requirements as the Secretary shall 
                establish to ensure that insurance of the mortgage 
                represents an acceptable risk to the Mutual Mortgage 
                Insurance Fund; and
                    ``(E) meet such underwriting requirements as the 
                Secretary shall establish to meet actuarial objectives 
                identified by the Secretary, which may include avoiding 
                a positive subsidy rate or complying with the capital 
                ratio requirement under section 205(f)(2).
            ``(5) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out the program under this 
        subsection--
                    ``(A) $660,000 for fiscal year 2024, to remain 
                available until expended; and
                    ``(B) $160,000 for each of fiscal years 2025 
                through 2030, to remain available until expended.
            ``(6) Reauthorization required.--The authority to enter 
        into new commitments to insure mortgages under this subsection 
        shall expire on the date that is 5 years after the date on 
        which the Secretary first makes available insurance for 
        mortgages under this subsection.''.
                                 &lt;all&gt;
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