324 
of this Act and such transfer shall be deemed a transfer 
of function for purposes of section 3503 of title 5, United 
States Code. 
(b) GUARANTEED POSITIONS.—Each employee trans-
ferred under subsection (a) shall be guaranteed a position 
with the same status, tenure, grade, and pay as that held 
on the day immediately preceding the transfer. Each such 
employee holding a permanent position shall not be invol-
untarily separated or reduced in grade or compensation for 
12 months after the date of transfer, except for cause or, 
if the employee is a temporary employee, separated in ac-
cordance with the terms of the appointment. 
(c) APPOINTMENT AUTHORITY FOR EXCEPTED SERV-
ICE EMPLOYEES.— 
(1) IN GENERAL.—In the case of employees occu-
pying positions in the excepted service, any appoint-
ment authority established pursuant to law or regula-
tions of the Office of Personnel Management for filling 
such positions shall be transferred, subject to para-
graph (2). 
(2) DECLINE OF TRANSFER.—The Director of the 
Federal Housing Finance Agency may decline a 
transfer of authority under paragraph (1) (and the 
employees appointed pursuant thereto) to the extent 
that such authority relates to positions excepted from 
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the competitive service because of their confidential, 
policy-making, policy-determining, or policy-advo-
cating character. 
(d) REORGANIZATION.—If the Director of the Federal 
Housing Finance Agency determines, after the end of the 
1-year period beginning on the date of the abolishment 
under section 301(a), that a reorganization of the combined 
work force is required, that reorganization shall be deemed 
a major reorganization for purposes of affording affected 
employees 
retirement 
under 
section 
8336(d)(2) 
or 
8414(b)(1)(B) of title 5, United States Code. 
(e) EMPLOYEE BENEFIT PROGRAMS.—Any employee 
of the Office of Federal Housing Enterprise Oversight ac-
cepting employment with the Director of the Federal Hous-
ing Finance Agency as a result of a transfer under sub-
section (a) may retain for 12 months after the date such 
transfer occurs membership in any employee benefit pro-
gram of the Federal Housing Finance Agency or the Office 
of Federal Housing Enterprise Oversight, as applicable, in-
cluding insurance, to which such employee belongs on the 
date of the abolishment under section 301(a) if— 
(1) the employee does not elect to give up the 
benefit or membership in the program; and 
(2) the benefit or program is continued by the 
Director of the Federal Housing Finance Agency, 
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The difference in the costs between the benefits which would 
have been provided by such agency and those provided by 
this section shall be paid by the Director of the Federal 
Housing Finance Agency. If any employee elects to give up 
membership in a health insurance program or the health 
insurance program is not continued by such Director, the 
employee shall be permitted to select an alternate Federal 
health insurance program within 30 days of such election 
or notice, without regard to any other regularly scheduled 
open season. 
SEC. 304. TRANSFER OF PROPERTY AND FACILITIES. 
Upon the abolishment under section 301(a), all prop-
erty of the Office of Federal Housing Enterprise Oversight 
shall transfer to the Director of the Federal Housing Fi-
nance Agency. 
Subtitle B—Federal Housing 
Finance Board 
SEC. 321. ABOLISHMENT OF THE FEDERAL HOUSING FI-
NANCE BOARD. 
(a) IN GENERAL.—Effective at the end of the 6-month 
period beginning on the date of enactment of this Act, the 
Federal Housing Finance Board (in this title referred to 
as the ‘‘Board’’) is abolished. 
(b) DISPOSITION OF AFFAIRS.—During the 6-month 
period beginning on the date of enactment of this Act, the 
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Board, for the purpose of winding up the affairs of the 
Board and in addition to carrying out its other responsibil-
ities under law— 
(1) shall manage the employees of such Board 
and provide for the payment of the compensation and 
benefits of any such employee which accrue before the 
effective date of the transfer of such employee under 
section 323; and 
(2) may take any other action necessary for the 
purpose of winding up the affairs of the Board. 
(c) STATUS OF EMPLOYEES BEFORE TRANSFER.—The 
amendments made by titles I and II and the abolishment 
of the Board under subsection (a) may not be construed to 
affect the status of any employee of such Board as employees 
of an agency of the United States for purposes of any other 
provision of law before the effective date of the transfer of 
any such employee under section 323. 
(d) USE OF PROPERTY AND SERVICES.— 
(1) PROPERTY.—The Director of the Federal 
Housing Finance Agency may use the property of the 
Board to perform functions which have been trans-
ferred to the Director of the Federal Housing Finance 
Agency for such time as is reasonable to facilitate the 
orderly transfer of functions transferred under any 
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other provision of this Act or any amendment made 
by this Act to any other provision of law. 
(2) AGENCY
SERVICES.—Any agency, depart-
ment, or other instrumentality of the United States, 
and any successor to any such agency, department, or 
instrumentality, which was providing supporting 
services to the Board before the expiration of the pe-
riod under subsection (a) in connection with func-
tions that are transferred to the Director of the Fed-
eral Housing Finance Agency shall— 
(A) continue to provide such services, on a 
reimbursable basis, until the transfer of such 
functions is complete; and 
(B) consult with any such agency to coordi-
nate and facilitate a prompt and reasonable 
transition. 
(e) SAVINGS PROVISIONS.— 
(1) EXISTING
RIGHTS, DUTIES, AND
OBLIGA-
TIONS NOT AFFECTED.—Subsection (a) shall not affect 
the validity of any right, duty, or obligation of the 
United States, a member of the Board, or any other 
person, which— 
(A) arises under the Federal Home Loan 
Bank Act or any other provision of law applica-
ble with respect to such Board; and 
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(B) existed on the day before the effective 
date of the abolishment under subsection (a). 
(2) CONTINUATION
OF
SUITS.—No action or 
other proceeding commenced by or against the Board 
in connection with functions that are transferred to 
the Director of the Federal Housing Finance Agency 
shall abate by reason of the enactment of this Act, ex-
cept that the Director of the Federal Housing Finance 
Agency shall be substituted for the Board or any 
member thereof as a party to any such action or pro-
ceeding. 
SEC. 322. CONTINUATION AND COORDINATION OF CERTAIN 
REGULATIONS. 
(a) IN GENERAL.—All regulations, orders, determina-
tions, and resolutions described under subsection (b) shall 
remain in effect according to the terms of such regulations, 
orders, determinations, and resolutions, and shall be en-
forceable by or against the Director of the Federal Housing 
Finance Agency until modified, terminated, set aside, or 
superseded in accordance with applicable law by such Di-
rector, any court of competent jurisdiction, or operation of 
law. 
(b) APPLICABILITY.—A regulation, order, determina-
tion, or resolution is described under this subsection if it— 
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330 
(1) was issued, made, prescribed, or allowed to 
become effective by— 
(A) the Board; or 
(B) a court of competent jurisdiction and 
relates to functions transferred by this subtitle; 
and 
(2) is in effect on the effective date of the abolish-
ment under section 321(a). 
SEC. 323. TRANSFER AND RIGHTS OF EMPLOYEES OF THE 
FEDERAL HOUSING FINANCE BOARD. 
(a) TRANSFER.—Each employee of the Board shall be 
transferred to the Federal Housing Finance Agency for em-
ployment not later than the effective date of the abolishment 
under section 321(a), and such transfer shall be deemed a 
transfer of function for purposes of section 3503 of title 5, 
United States Code. 
(b) GUARANTEED POSITIONS.—Each employee trans-
ferred under subsection (a) shall be guaranteed a position 
with the same status, tenure, grade, and pay as that held 
on the day immediately preceding the transfer. Each such 
employee holding a permanent position shall not be invol-
untarily separated or reduced in grade or compensation for 
12 months after the date of transfer, except for cause or, 
if the employee is a temporary employee, separated in ac-
cordance with the terms of the appointment. 
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331 
(c) APPOINTMENT AUTHORITY FOR EXCEPTED AND 
SENIOR EXECUTIVE SERVICE EMPLOYEES.— 
(1) IN GENERAL.—In the case of employees occu-
pying positions in the excepted service or the Senior 
Executive Service, any appointment authority estab-
lished under law or by regulations of the Office of 
Personnel Management for filling such positions shall 
be transferred, subject to paragraph (2). 
(2) DECLINE OF TRANSFER.—The Director of the 
Federal Housing Finance Agency may decline a 
transfer of authority under paragraph (1) to the ex-
tent that such authority relates to positions excepted 
from the competitive service because of their confiden-
tial, policymaking, policy-determining, or policy-ad-
vocating character, and noncareer positions in the 
Senior Executive Service (within the meaning of sec-
tion 3132(a)(7) of title 5, United States Code). 
(d) REORGANIZATION.—If the Director of the Federal 
Housing Finance Agency determines, after the end of the 
1-year period beginning on the effective date of the abolish-
ment under section 321(a), that a reorganization of the 
combined workforce is required, that reorganization shall 
be deemed a major reorganization for purposes of affording 
affected employees retirement under section 8336(d)(2) or 
8414(b)(1)(B) of title 5, United States Code. 
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332 
(e) EMPLOYEE BENEFIT PROGRAMS.— 
(1) IN GENERAL.—Any employee of the Board 
accepting employment with the Federal Housing Fi-
nance Agency as a result of a transfer under sub-
section (a) may retain for 12 months after the date 
on which such transfer occurs membership in any em-
ployee benefit program of the Federal Housing Fi-
nance Agency or the Board, as applicable, including 
insurance, to which such employee belongs on the ef-
fective date of the abolishment under section 321(a) 
if— 
(A) the employee does not elect to give up 
the benefit or membership in the program; and 
(B) the benefit or program is continued by 
the Director of the Federal Housing Finance 
Agency. 
(2) COST DIFFERENTIAL.—The difference in the 
costs between the benefits which would have been pro-
vided by the Board and those provided by this section 
shall be paid by the Director of the Federal Housing 
Finance Agency. If any employee elects to give up 
membership in a health insurance program or the 
health insurance program is not continued by such 
Director, the employee shall be permitted to select an 
alternate Federal health insurance program within 30 
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333 
days after such election or notice, without regard to 
any other regularly scheduled open season. 
SEC. 324. TRANSFER OF PROPERTY AND FACILITIES. 
Upon the effective date of the abolishment under sec-
tion 321(a), all property of the Board shall transfer to the 
Director of the Federal Housing Finance Agency. 
Subtitle C—Department of Housing 
and Urban Development 
SEC. 341. TERMINATION OF ENTERPRISE-RELATED FUNC-
TIONS. 
(a) TERMINATION DATE.—For purposes of this sub-
title, the term ‘‘termination date’’ means the date that oc-
curs 6 months after the date of the enactment of this Act. 
(b) DETERMINATION
OF TRANSFERRED FUNCTIONS 
AND EMPLOYEES.— 
(1) IN GENERAL.—Not later than the expiration 
of the 3-month period beginning on the date of the en-
actment of this Act, the Secretary, in consultation 
with the Director of the Office of Federal Housing 
Enterprise Oversight, shall determine— 
(A) the functions, duties, and activities of 
the Secretary of Housing and Urban Develop-
ment regarding oversight or regulation of the en-
terprises under or pursuant to the authorizing 
statutes, title XIII of the Housing and Commu-
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ccoleman on PRODPC74 with BILLS
334 
nity Development Act of 1992, and any other 
provisions of law, as in effect before the date of 
the enactment of this Act, but not including any 
such functions, duties, and activities of the Di-
rector of the Office of Federal Housing Enter-
prise Oversight of the Department of Housing 
and Urban Development and such Office; and 
(B) the employees of the Department of 
Housing and Urban Development necessary to 
perform such functions, duties, and activities. 
(2) 
ENTERPRISE-RELATED
FUNCTIONS.—For 
purposes of this subtitle, the term ‘‘enterprise-related 
functions of the Department’’ means the functions, 
duties, and activities of the Department of Housing 
and Urban Development determined under paragraph 
(1)(A). 
(3) 
ENTERPRISE-RELATED
EMPLOYEES.—For 
purposes of this subtitle, the term ‘‘enterprise-related 
employees of the Department’’ means the employees of 
the Department of Housing and Urban Development 
determined under paragraph (1)(B). 
(c) DISPOSITION OF AFFAIRS.—During the 6-month 
period beginning on the date of enactment of this Act, the 
Secretary of Housing and Urban Development (in this title 
referred to as the ‘‘Secretary’’), for the purpose of winding 
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335 
up the affairs of the Secretary regarding the enterprise-re-
lated functions of the Department of Housing and Urban 
Development (in this title referred to as the ‘‘Department’’) 
and in addition to carrying out the Secretary’s other re-
sponsibilities under law regarding such functions— 
(1) shall manage the enterprise-related employees 
of the Department and provide for the payment of the 
compensation and benefits of any such employee 
which accrue before the effective date of the transfer 
of any such employee under section 343; and 
(2) may take any other action necessary for the 
purpose of winding up the enterprise-related functions 
of the Department. 
(d) STATUS OF EMPLOYEES BEFORE TRANSFER.—The 
amendments made by titles I and II and the termination 
of the enterprise-related functions of the Department under 
subsection (b) may not be construed to affect the status of 
any employee of the Department as employees of an agency 
of the United States for purposes of any other provision 
of law before the effective date of the transfer of any such 
employee under section 343. 
(e) USE OF PROPERTY AND SERVICES.— 
(1) PROPERTY.—The Director of the Federal 
Housing Finance Agency may use the property of the 
Secretary to perform functions which have been trans-
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336 
ferred to the Director of the Federal Housing Finance 
Agency for such time as is reasonable to facilitate the 
orderly transfer of functions transferred under any 
other provision of this Act or any amendment made 
by this Act to any other provision of law. 
(2) AGENCY
SERVICES.—Any agency, depart-
ment, or other instrumentality of the United States, 
and any successor to any such agency, department, or 
instrumentality, which was providing supporting 
services to the Secretary regarding enterprise-related 
functions of the Department before the termination 
date under subsection (a) in connection with such 
functions that are transferred to the Director of the 
Federal Housing Finance Agency shall— 
(A) continue to provide such services, on a 
reimbursable basis, until the transfer of such 
functions is complete; and 
(B) consult with any such agency to coordi-
nate and facilitate a prompt and reasonable 
transition. 
(f) SAVINGS PROVISIONS.— 
(1) EXISTING
RIGHTS, DUTIES, AND
OBLIGA-
TIONS NOT AFFECTED.—Subsection (a) shall not affect 
the validity of any right, duty, or obligation of the 
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337 
United States, the Secretary, or any other person, 
which— 
(A) arises under the authorizing statutes, 
title XIII of the Housing and Community Devel-
opment Act of 1992, or any other provision of 
law applicable with respect to the Secretary, in 
connection with the enterprise-related functions 
of the Department; and 
(B) existed on the day before the termi-
nation date under subsection (a). 
(2) CONTINUATION
OF
SUITS.—No action or 
other proceeding commenced by or against the Sec-
retary in connection with the enterprise-related func-
tions of the Department shall abate by reason of the 
enactment of this Act, except that the Director of the 
Federal Housing Finance Agency shall be substituted 
for the Secretary or any member thereof as a party 
to any such action or proceeding. 
SEC. 342. CONTINUATION AND COORDINATION OF CERTAIN 
REGULATIONS. 
(a) IN GENERAL.—All regulations, orders, and deter-
minations described in subsection (b) shall remain in effect 
according to the terms of such regulations, orders, deter-
minations, and resolutions, and shall be enforceable by or 
against the Director of the Federal Housing Finance Agen-
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338 
cy until modified, terminated, set aside, or superseded in 
accordance with applicable law by such Director, any court 
of competent jurisdiction, or operation of law. 
(b) APPLICABILITY.—A regulation, order, or deter-
mination is described under this subsection if it— 
(1) was issued, made, prescribed, or allowed to 
become effective by— 
(A) the Secretary; or 
(B) a court of competent jurisdiction and 
that relate to the enterprise-related functions of 
the Department; and 
(2) is in effect on the termination date under 
section 341(a). 
SEC. 343. TRANSFER AND RIGHTS OF EMPLOYEES OF DE-
PARTMENT OF HOUSING AND URBAN DEVEL-
OPMENT. 
(a) TRANSFER.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), each enterprise-related employee of the De-
partment shall be transferred to the Federal Housing 
Finance Agency for employment not later than the 
termination date under section 341(a) and such 
transfer shall be deemed a transfer of function for 
purposes of section 3503 of title 5, United States 
Code. 
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339 
(2) AUTHORITY TO DECLINE.—An enterprise-re-
lated employee of the Department may, in the discre-
tion of the employee, decline transfer under para-
graph (1) to a position in the Federal Housing Fi-
nance Agency and shall be guaranteed a position in 
the Department with the same status, tenure, grade, 
and pay as that held on the day immediately pre-
ceding the date that such declination was made. Each 
such employee holding a permanent position shall not 
be involuntarily separated or reduced in grade or 
compensation for 12 months after the date that the 
transfer would otherwise have occurred, except for 
cause or, if the employee is a temporary employee, 
separated in accordance with the terms of the ap-
pointment. 
(b) GUARANTEED POSITIONS.—Each enterprise-related 
employee of the Department transferred under subsection 
(a) shall be guaranteed a position with the same status, 
tenure, grade, and pay as that held on the day immediately 
preceding the transfer. Each such employee holding a per-
manent position shall not be involuntarily separated or re-
duced in grade or compensation for 12 months after the date 
of transfer, except for cause or, if the employee is a tem-
porary employee, separated in accordance with the terms 
of the appointment. 
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340 
(c) APPOINTMENT AUTHORITY FOR EXCEPTED AND 
SENIOR EXECUTIVE SERVICE EMPLOYEES.— 
(1) IN GENERAL.—In the case of employees occu-
pying positions in the excepted service or the Senior 
Executive Service, any appointment authority estab-
lished under law or by regulations of the Office of 
Personnel Management for filling such positions shall 
be transferred, subject to paragraph (2). 
(2) DECLINE OF TRANSFER.—The Director of the 
Federal Housing Finance Agency may decline a 
transfer of authority under paragraph (1) (and the 
employees appointed pursuant thereto) to the extent 
that such authority relates to positions excepted from 
the competitive service because of their confidential, 
policymaking, policy-determining, or policy-advo-
cating character, and noncareer positions in the Sen-
ior Executive Service (within the meaning of section 
3132(a)(7) of title 5, United States Code). 
(d) REORGANIZATION.—If the Director of the Federal 
Housing Finance Agency determines, after the end of the 
1-year period beginning on the termination date under sec-
tion 341(a), that a reorganization of the combined work-
force is required, that reorganization shall be deemed a 
major reorganization for purposes of affording affected em-
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341 
ployees 
retirement 
under 
section 
8336(d)(2) 
or 
8414(b)(1)(B) of title 5, United States Code. 
(e) EMPLOYEE BENEFIT PROGRAMS.— 
(1) IN
GENERAL.—Any enterprise-related em-
ployee of the Department accepting employment with 
the Federal Housing Finance Agency as a result of a 
transfer under subsection (a) may retain for 12 
months after the date on which such transfer occurs 
membership in any employee benefit program of the 
Federal Housing Finance Agency or the Department, 
as applicable, including insurance, to which such em-
ployee belongs on the termination date under section 
341(a) if— 
(A) the employee does not elect to give up 
the benefit or membership in the program; and 
(B) the benefit or program is continued by 
the Director of the Federal Housing Finance 
Agency. 
(2) COST DIFFERENTIAL.—The difference in the 
costs between the benefits which would have been pro-
vided by the Department and those provided by this 
section shall be paid by the Director of the Federal 
Housing Finance Agency. If any employee elects to 
give up membership in a health insurance program 
or the health insurance program is not continued by 
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342 
such Director, the employee shall be permitted to se-
lect an alternate Federal health insurance program 
within 30 days after such election or notice, without 
regard to any other regularly scheduled open season. 
SEC. 344. TRANSFER OF APPROPRIATIONS, PROPERTY, AND 
FACILITIES. 
Upon the termination date under section 341(a), all 
assets, liabilities, contracts, property, records, and unex-
pended balances of appropriations, authorizations, alloca-
tions, and other funds employed, held, used, arising from, 
available to, or to be made available to the Department in 
connection with enterprise-related functions of the Depart-
ment shall transfer to the Director of the Federal Housing 
Finance Agency. Unexpended funds transferred by this sec-
tion shall be used only for the purposes for which the funds 
were originally authorized and appropriated. 
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VerDate Aug 31 2005 
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Union Calendar No. 84 
110TH CONGRESS 
1ST SESSION 
H. R. 1427 
[Report No. 110–142] 
A BILL 
To reform the regulation of certain housing-related 
Government-sponsored enterprises, and for other 
purposes. 
MAY 9, 2007 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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