I
107TH CONGRESS
1ST SESSION
H. R. 989
To direct the Secretary of Housing and Urban Development to carry out
a 3 year pilot program to assist law enforcement officers purchasing
homes in locally-designated at-risk areas.
IN THE HOUSE OF REPRESENTATIVES
MARCH 13, 2001
Mr. GREEN of Wisconsin (for himself, Mr. GREENWOOD, Mrs. MCCARTHY of
New York, Mr. GUTKNECHT, Mr. MCGOVERN, Mr. RUSH, Mr. DAVIS of
Illinois, Mrs. JO ANN DAVIS of Virginia, Mr. PAYNE, Mr. HORN, Mr.
ROGERS of Michigan, Mr. PASCRELL, Mr. HOUGHTON, Mrs. MYRICK, Mr.
HALL of Texas, and Ms. HOOLEY of Oregon) introduced the following
bill; which was referred to the Committee on Financial Services
A BILL
To direct the Secretary of Housing and Urban Development
to carry out a 3 year pilot program to assist law enforce-
ment officers purchasing homes in locally-designated at-
risk areas.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. LAW ENFORCEMENT OFFICER HOMEOWNER-
SHIP PILOT PROGRAM.
(a) ASSISTANCE
FOR LAW ENFORCEMENT OFFI-
CERS.—For the 3 years following the date of the enact-
ment of this Act, the Secretary of Housing and Urban
Development shall carry out a pilot program to assist Fed-
eral, State, and local law enforcement officers purchasing
homes in locally-designated at-risk areas in accordance
with this Act.
(b) ELIGIBILITY.—To be eligible for assistance under
this Act, a law enforcement officer shall—
(1) have completed not less than 6 months of
service as a law enforcement officer as of the date
that the law enforcement officer applies for such as-
sistance; and
(2) agree, in writing, to use the residence pur-
chased with such assistance as the primary residence
of the law enforcement officer for not less than 3
years after the date of purchase.
(c) MORTGAGE ASSISTANCE.—If a law enforcement
officer purchases a home in locally-designated at-risk area
and finances such purchase through a mortgage insured
under title II of the National Housing Act (12 U.S.C.
1707 et seq.), notwithstanding any provision of section
203 or any other provision of the National Housing Act,
the following shall apply:
(1) DOWNPAYMENT.—
(A) IN
GENERAL.—There shall be no
downpayment required if the purchase price of
the property is not more than the reasonable
value of the property, as determined by the Sec-
retary.
(B) PURCHASE PRICE EXCEEDS VALUE.—
If the purchase price of the property exceeds
the reasonable value of the property, as deter-
mined by the Secretary, the required downpay-
ment shall be the difference between such rea-
sonable value and the purchase price.
(2) CLOSING
COSTS.—The closing costs and
origination fee for such mortgage may be included in
the loan amount.
(3) INSURANCE
PREMIUM
PAYMENT.—There
shall be 1 insurance premium payment due on the
mortgage. Such insurance premium payment—
(A) shall be equal to 1 percent of the loan
amount;
(B) shall be due and considered earned by
the Secretary at the time of the loan closing;
and
(C) may be included in the loan amount
and paid from the loan proceeds.
(d) LOCALLY-DESIGNATED AT-RISK AREA.—
(1) IN GENERAL.—Any unit of local govern-
ment may request that the Secretary designate any
area within the jurisdiction of that unit of local gov-
ernment as a locally-designated at-risk area for pur-
poses of this Act if the proposed area—
(A) has a crime rate that is significantly
higher than the crime rate of the non-des-
ignated area that is within the jurisdiction of
the unit of local government; and
(B) has a population that is not more than
25 percent of the total population of area with-
in the jurisdiction of the unit of local govern-
ment.
(2) DEADLINE
FOR
CONSIDERATION
OF
RE-
QUEST.—Not later than 60 days after receiving a re-
quest under paragraph (1), the Secretary shall ap-
prove or disapprove the request.
(e) SUNSET.—The Secretary shall not approve any
application for assistance under this Act that is received
by the Secretary more than 3 years after the date of the
enactment of this Act.
Æ