I 
113TH CONGRESS 
1ST SESSION H. R. 1997 
To allow investor participation in the loan rehabilitation program authorized 
under section 203(k) of the National Housing Act. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 15, 2013 
Mr. MCKEON (for himself and Mr. PETERS of California) introduced the 
following bill; which was referred to the Committee on Financial Services 
A BILL 
To allow investor participation in the loan rehabilitation pro-
gram authorized under section 203(k) of the National 
Housing Act. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Communities Achiev-
ing Sustainability Act’’. 
SEC. 2. INVESTOR PARTICIPATION IN FHA REHABILITA-
TION PROGRAM. 
(a) INVESTOR PARTICIPATION.— 
(1) IN GENERAL.—The Secretary shall, upon 
application by a mortgagee and approval of such ap-
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plication by the Secretary, insure and make commit-
ments to insure rehabilitation loans (including ad-
vances made during rehabilitation) which are eligible 
for insurance under section 203(k) of the National 
Housing Act (12 U.S.C. 1709) made by financial in-
stitutions in order to assist in the rehabilitation of 
1- to 4-family structures used primarily for residen-
tial purposes. 
(2) ELIGIBLE MORTGAGORS.—Notwithstanding 
any other provision of law or regulation, such reha-
bilitation loans insured pursuant to this Act shall in-
volve a mortgagor who is an investor. 
(b) TERMS AND CONDITIONS.—Such commitments to 
insure and such insurance shall be made upon such terms 
and conditions which the Secretary may prescribe pursu-
ant to this Act and which are consistent with the provi-
sions of subsections (b), (c), (e), (i), (j), and (k) of section 
203 of the National Housing Act (12 U.S.C. 1709 (b), 
(c), (e), (i), (j), and (k)), except as modified by the provi-
sions of this Act. 
(c) MAXIMUM LOAN COMMITMENT.—To be eligible 
for insurance under this Act, a mortgage shall not exceed 
90 percent of the appraised value of the 1- to 4-family 
structure subject to such mortgage. 
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(d) CALENDAR YEAR LIMITATION.—The Secretary 
may insure, or enter into a commitment to insure, up to 
four 1- to 4-family structures for an investor described 
in subsection (a)(2) during a calendar year. 
(e) MORTGAGE PREMIUM.—The single premium pay-
ment required under section 203(k)(2)(A) of the National 
Housing Act (12 U.S.C. 1709(k)(2)(A)) shall be increased 
by 10 basis points for any mortgage insured pursuant to 
this Act. 
(f) DEFINITIONS.—In this Act: 
(1) INVESTOR.— 
(A) IN
GENERAL.—The term ‘‘investor’’ 
means a person who— 
(i) obtains a rehabilitation loan for a 
structure described in subsection (a)(1) for 
the purpose of appreciation or production 
of income with respect to such structure; 
and 
(ii) does not intend on occupying such 
structure. 
(B) PERSON DEFINED.—As used in this 
subparagraph, the term ‘‘person’’ has the 
meaning given such term in section 551(2) of 
title 5, United States Code. 
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(2) MORTGAGEE; MORTGAGOR; MORTGAGE.— 
The terms ‘‘mortgagee’’, ‘‘mortgagor’’, and ‘‘mort-
gage’’ have the same meanings as given such terms 
in section 201 of the National Housing Act (12 
U.S.C. 1707). 
SEC. 3. SUNSET PROVISION. 
The provisions of this Act shall terminate on the date 
that is 2 years following the date of the enactment of this 
Act and the Secretary shall not approve any application 
described in section 2(a)(1) submitted after the conclusion 
of such 2-year period. 
Æ 
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