I 
117TH CONGRESS 
1ST SESSION H. R. 5915 
To increase the principal obligation limits for mortgage insurance under 
the National Housing Act for residences in eligible metropolitan cities 
and urban counties, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 9, 2021 
Mr. AGUILAR (for himself and Mr. AMODEI) introduced the following bill; 
which was referred to the Committee on Financial Services 
A BILL 
To increase the principal obligation limits for mortgage in-
surance under the National Housing Act for residences 
in eligible metropolitan cities and urban counties, and 
for other purposes. 
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 ‘‘FHA Fairness Act’’. 
SEC. 2. FHA PRINCIPAL OBLIGATION LIMITS FOR RESI-
DENCES IN ELIGIBLE CITIES AND COUNTIES. 
(a) IN GENERAL.—Section 203(b) of the National 
Housing Act (12 U.S.C. 1709) is amended— 
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(1) by striking paragraph (2) and inserting the 
following: 
‘‘(2) Involve a principal obligation (including 
such initial service charges, appraisal, inspection, 
and other fees as the Secretary shall approve) in an 
amount— 
‘‘(A) not to exceed the lesser of— 
‘‘(i) in the case of a 1-family resi-
dence, the greater of 115 percent of the 
median 1-family house price in the area, as 
determined by the Secretary, or, in the 
case of a residence located in an eligible 
city or county, 125 percent of the median 
1-family house price in the eligible city or 
county, as determined by the Secretary; 
and, in the case of a 2-, 3-, or 4-family 
residence, the greater of the percentage of 
such median price that bears the same 
ratio to such median price as the dollar 
amount limitation determined under the 
sixth sentence of section 1454(a)(2) of this 
title for a 2-, 3-, or 4-family residence, re-
spectively, bears to the dollar amount limi-
tation determined under such section for a 
1-family residence as determined by the 
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Secretary, or, the 125 percent of the me-
dian 2-, 3-, or 4-family house price, as ap-
plicable, in the eligible city or county in 
which the residence is located, as defined 
by the Secretary; or 
‘‘(ii) 150 percent of the dollar amount 
limitation determined under the sixth sen-
tence of such section 1454(a)(2) for a resi-
dence of applicable size; except that the 
dollar amount limitation in effect under 
this subparagraph for any size residence 
for any area may not be less than the 
greater of— 
‘‘(I) the dollar amount limitation 
in effect under this section for the 
area on October 21, 1998; or 
‘‘(II) 65 percent of the dollar 
amount limitation determined under 
the sixth sentence of such section 
1454(a)(2) for a residence of the ap-
plicable size; and 
‘‘(B) not to exceed 100 percent of the ap-
praised value of the property. 
For purposes of the preceding sentence, the term 
‘area’ means a metropolitan statistical area as estab-
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lished by the Office of Management and Budget; and 
the median 1-family house price for an area shall be 
equal to the median 1-family house price of the 
county within the area that has the highest such me-
dian price. 
Notwithstanding any other provision of this para-
graph, the amount which may be insured under this 
section may be increased by up to 20 percent if such 
increase is necessary to account for the increased 
cost of the residence due to the installation of a 
solar energy system (as defined in subparagraph (3) 
of the last paragraph of section 2(a) of this Act) 
therein. 
Notwithstanding any other provision of this para-
graph, the Secretary may not insure, or enter into 
a commitment to insure, a mortgage under this sec-
tion that is executed by a first-time homebuyer and 
that involves a principal obligation (including such 
initial service charges, appraisal, inspection, and 
other fees as the Secretary shall approve) in excess 
of 97 percent of the appraised value of the property 
unless the mortgagor has completed a program of 
counseling with respect to the responsibilities and fi-
nancial management involved in homeownership that 
is approved by the Secretary; except that the Sec-
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retary may, in the discretion of the Secretary, waive 
the applicability of this requirement.’’; and 
(2) by adding at the end the following: 
‘‘(10) DEFINITIONS.—For the purposes of this 
subsection: 
‘‘(A) ELIGIBLE
CITY
OR
COUNTY.—The 
term ‘eligible city or county’ means a metropoli-
tan city or urban county (as such terms are de-
fined in section 102 of the Housing and Com-
munity Development Act of 1974 (42 U.S.C. 
5302)) that has a median 1-family home price 
that exceeds 115 percent of the median 1-fam-
ily home price for the area within which such 
city or county is located and is located in an 
area that, as determined by the Secretary, expe-
rienced a decrease in maximum principal obliga-
tion amount under this paragraph for 1-family 
residences equal to or in excess of 20 percent 
between January 1, 2013, and January 1, 
2014. 
‘‘(B) AREA.—The term ‘area’ means a 
metropolitan statistical area as established by 
the Office of Management and Budget.’’. 
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SEC. 3. EFFECTIVE DATE. 
The amendment made by this Act shall apply only 
to mortgages with respect to which the Commissioner as-
signs a case number on or after January 1, 2023. 
Æ 
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