‘‘(i) DEFINITIONS.—For the purposes of this section,
the following definitions shall apply:
‘‘(1) CHILD CARE AND DEVELOPMENT FACIL-
ITY.—The term ‘child care and development facility’
means a public facility, proprietary facility, or facil-
ity of a private nonprofit corporation or association
that—
‘‘(A) has as its purpose the care and devel-
opment of children less than 12 years of age;
and
‘‘(B) is licensed or regulated by the State
in which it is located (or, if there is no State
law providing for such licensing and regulation
by the State, by the municipality or other politi-
cal subdivision in which the facility is located).
The term does not include facilities for school-age
children primarily for use during normal school
hours. The term includes facilities for training indi-
viduals to provide child care and development serv-
ices.
‘‘(2) EQUIPMENT.—The term ‘equipment’ in-
cludes machinery, utilities, and built-in equipment
and any necessary enclosures or structures to house
them, and any other items necessary for the func-
tioning of a particular facility as a child care and
development facility, including necessary furniture.
Such term includes books, curricular, and program
materials.
‘‘(3) MORTGAGE; FIRST
MORTGAGE; MORTGA-
GEE.—The term ‘mortgage’ means a first mortgage
on real estate in fee simple, or on the interest of ei-
ther the lessor or lessee thereof under a lease having
a period of not less than 7 years to run beyond the
maturity date of the mortgage. The term ‘first mort-
gage’ means such classes of first liens as are com-
monly given to secure advances (including advances
during construction) on, or the unpaid purchase
price of, real estate under the laws of the State in
which the real estate is located, together with the
credit instrument or instruments (if any) secured
thereby, and any mortgage may be in the form of
one or more trust mortgages or mortgage indentures
or deeds of trust, securing notes, bonds, or other
credit instruments, and, by the same instrument or
by a separate instrument, may create a security in-
terest in initial equipment, whether or not attached
to the realty. The term ‘mortgagor’ has the meaning
given the term in section 207(a).
‘‘(j) LIMITATION ON INSURANCE AUTHORITY.—
‘‘(1) TERMINATION.—No mortgage may be in-
sured under this section or section 223(h) after Sep-
tember 30, 2005, except pursuant to a commitment
to insure issued on or before such date.
‘‘(2) AGGREGATE PRINCIPAL AMOUNT LIMITA-
TION.—The aggregate principal amount of mort-
gages for which the Secretary enters into commit-
ments to insure under this section or section 223(h)
on or before the date under paragraph (1) may not
exceed $2,000,000,000. If, upon the date under
paragraph (1), the aggregate insurance authority
provided under this paragraph has not been fully
used, the Secretary of the Treasury shall submit a
report to the Congress evaluating the need for con-
tinued mortgage insurance under this section.’’.
‘‘(k) REGULATIONS.—The Secretary shall issue any
regulations necessary to carry out this section. In issuing
such regulations, the Secretary shall consult with the Sec-
retary of Health and Human Services with respect to any
aspects of the regulations regarding child care and devel-
opment facilities.’’.
SEC. 4. INSURANCE FOR MORTGAGES FOR ACQUISITION OR
REFINANCING DEBT OF EXISTING CHILD
CARE AND DEVELOPMENT FACILITIES.
Section 223 of the National Housing Act (12 U.S.C.
1715n) is amended by adding at the end the following new
subsection:
‘‘(h) MORTGAGE INSURANCE FOR PURCHASE OR RE-
FINANCING OF EXISTING CHILD CARE AND DEVELOP-
MENT FACILITIES.—
‘‘(1) AUTHORITY.—Notwithstanding any other
provision of this Act, the Secretary may insure
under any section of this title a mortgage executed
in connection with the purchase or refinancing of an
existing child care and development facility, the pur-
chase of a structure to serve as a child care and
development facility, or the refinancing of existing
debt of an existing child care and development facil-
ity.
‘‘(2) PURCHASE OF EXISTING FACILITIES AND
STRUCTURES.—In the case of the purchase under
this subsection of an existing child care and develop-
ment facility or purchase of an existing structure to
serve as such a facility, the Secretary shall prescribe
any terms and conditions that the Secretary consid-
ers necessary to ensure that—
‘‘(A) the facility or structure purchased
continues to be used as a child care and devel-
opment facility; and
‘‘(B) the facility complies with the same
requirements applicable under subsections (d)
and (e) of section 257 to facilities having mort-
gages insured under such section.
‘‘(3) REFINANCING OF EXISTING FACILITIES.—
In the case of refinancing of an existing child care
and development facility, the Secretary shall pre-
scribe any terms and conditions that the Secretary
considers necessary to ensure that—
‘‘(A) the refinancing is used to lower the
monthly debt service costs (taking into account
any fees or charges connected with such refi-
nancing) of the existing facility;
‘‘(B) the proceeds of any refinancing will
be employed only to retire the existing indebted-
ness and pay the necessary cost of refinancing
on the existing facility;
‘‘(C) the existing facility is economically
viable; and
‘‘(D) the facility complies with the same
requirements applicable under section 257(d) to