property located in an extremely high-cost area 
as determined by the Secretary’’ after ‘‘or the 
Virgin Islands’’ the second place such term ap-
pears; and 
(C) by inserting ‘‘, or with respect to 
projects consisting of more than four dwelling 
units located in an extremely high-cost area as 
determined by the Secretary’’ after ‘‘or the Vir-
gin Islands’’ the third place such term appears; 
(2) in the second sentence— 
(A) by inserting ‘‘, or with respect to a 
project consisting of more than four dwelling 
units located in an extremely high-cost area as 
determined by the Secretary,’’ after ‘‘or the Vir-
gin Islands’’ the first place such term appears; 
and 
(B) by inserting ‘‘, or in the case of a 
project consisting of more than four dwelling 
units in an extremely high-cost area as deter-
mined by the Secretary, in such extremely high- 
cost area,’’ after ‘‘or the Virgin Islands’’ the 
second place such term appears; and 
(3) in the section heading, by striking ‘‘AND 
THE VIRGIN ISLANDS’’ and inserting ‘‘THE VIRGIN 
ISLANDS, AND EXTREMELY HIGH-COST AREAS’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to mortgages insured under title 
II of the National Housing Act after September 30, 2010. 
SEC. 20. SPECIAL FORBEARANCE FOR MORTGAGORS WITH 
CHINESE DRYWALL. 
The provisions of Mortgagee Letter 2002–17 of the 
Secretary of Housing and Urban Development (regarding 
‘‘Special Forbearance: Program Changes and Updates’’) 
relating to Type I Special Forbearance shall apply, until 
the conclusion of fiscal year 2011 and may not be revoked, 
annulled, repealed, or rescinded during such period, with 
respect to mortgagees of mortgages insured under title II 
of the National Housing Act that are secured by one- to 
four-family dwellings that have problem or damaging 
drywall products. 
SEC. 21. INCREASED LOAN LIMITS FOR DESIGNATED COUN-
TIES. 
(a) AUTHORITY.—Notwithstanding any other provi-
sion of law, the Secretary of Housing and Urban Develop-
ment (in this section referred to as the ‘‘Secretary’’) may 
increase the dollar amount limitations on the principal ob-
ligation of mortgages otherwise determined under section 
203(b)(2) of the National Housing Act for any county that 
is designated under this section. 
(b) PROCEDURE.—
(1) FEDERAL REGISTER NOTICE.—Any designa-
tion of a county under this section shall be made 
only pursuant to application by the county for such 
designation, in accordance with procedures that the 
Secretary may establish. The Secretary may estab-
lish such procedures only by publication in the Fed-
eral Register not later than 60 days after the date 
of the enactment of this Act. 
(2) FINAL DETERMINATION.—If the Secretary 
establishes procedures for applications under para-
graph (1) and receives a completed application for 
designation under this section of a county in accord-
ance with such procedures, the Secretary shall issue 
a final determination regarding such application for 
designation, based on the criteria under subsection 
(c), not later than 60 days after such receipt. 
(c) DETERMINATION CRITERIA.—The Secretary may 
designate an applicant county under this section only if 
the county is located within a micropolitan area (as such 
term is defined by the Director of the Office of Manage-
ment and Budget) and meets the following criteria: 
(1) More than 70 percent of the border of the 
applicant county abuts two or more metropolitan 
statistical areas (as such term is defined by the Di-
rector of the Office of Management and Budget) for
which each dollar amount limitation on the principal 
obligation of a mortgage that may be insured under 
section 203 of the National Housing Act, in effect 
at the time of such determination, is at least 40 per-
cent greater than the dollar amount limitation for 
the same size residence for the applicant county. For 
purposes of such calculation, the dollar amount limi-
tations of such abutting counties shall not include 
any increase attributable to the authority under this 
section. 
(2) The applicant county has experienced sig-
nificant population growth, as evidenced by an in-
crease of 15 percent or more during the 10 years 
preceding the application, according to statistics of 
the United States Census Bureau or such other ap-
propriate criteria as the Secretary shall establish. 
(3) The dollar amount limitation on the prin-
cipal obligation of a mortgage on housing in the ap-
plicant county that may be insured under section 
203 of the National Housing Act, in effect at the 
time of such application, is the minimum such dollar 
amount limitation allowable under the matter that 
follows clause (ii) in section 203(b)(2)(A) of the Na-
tional Housing Act.