I 
112TH CONGRESS 
1ST SESSION H. R. 2636 
To authorize depository institutions, depository institution holding companies, 
Fannie Mae, and Freddie Mac to lease foreclosed property held by 
such entities for up to 5 years, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 25, 2011 
Mr. GARY G. MILLER of California (for himself, Mr. BACHUS, Mrs. MCCAR-
THY of New York, and Mr. FRANK of Massachusetts) introduced the fol-
lowing bill; which was referred to the Committee on Financial Services 
A BILL 
To authorize depository institutions, depository institution 
holding companies, Fannie Mae, and Freddie Mac to 
lease foreclosed property held by such entities for up 
to 5 years, 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 ‘‘Neighborhood Preser-
vation Act of 2011’’. 
SEC. 2. FINDINGS. 
The Congress finds as follows: 
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(1) Depository institutions and affiliates of de-
pository institutions currently may control and lease 
foreclosed property for a limited period of time often 
subject to safety and soundness considerations, 
under various Federal laws and the law of some 
States. 
(2) Authorizing such institutions, the GSEs, 
and affiliates to enter into a long-term lease with the 
occupant of the property or any other person would 
reduce the number of residential properties entering 
into the housing inventory, which in turn would help 
to stabilize home values and restore confidence in 
the housing markets. 
(3) Allowing depository institutions, the GSEs, 
and affiliates of such institutions to lease foreclosed 
property will allow the institution or affiliate to dis-
pose of such property into a presumably more stable 
market at the end of the lease term which would re-
duce the loss the institution or affiliate may other-
wise be required to recognize upon disposition of the 
property. 
(4) Providing a means for foreclosed property 
to remain occupied during the housing downturn will 
preserve the property itself as well as the aesthetic 
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and economic values of neighboring homes and even 
whole neighborhoods. 
SEC. 3. BANK LEASING OF FORECLOSED PROPERTIES. 
(a) IN GENERAL.—Section 18 of the Federal Deposit 
Insurance Act (12 U.S.C. 1828) is amended by adding at 
the end the following new subsection: 
‘‘(y) LEASING OF FORECLOSED PROPERTY.— 
‘‘(1) LEASING AUTHORIZED.—Notwithstanding 
any provision of Federal or State law restricting the 
time during which a depository institution, or any 
affiliate of a depository institution, may hold or 
lease property, or any provision of Federal or State 
law prohibiting a depository institution, or any affil-
iate of a depository institution, from leasing prop-
erty and subject to this subsection and regulations 
prescribed under this subsection, any depository in-
stitution, and any affiliate of a depository institu-
tion, may lease to any individual, including a lease 
with an option to purchase, for not to exceed 5 years 
an interest in residential property which— 
‘‘(A) was or is security for an extension of 
credit by such depository institution or affiliate; 
and 
‘‘(B) came under the ownership or control 
of the depository institution or affiliate through 
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foreclosure, or a deed in lieu of foreclosure, on 
the extension of credit. 
‘‘(2) SAFETY AND SOUNDNESS REGULATIONS.— 
The Federal banking agencies shall jointly prescribe 
regulations which— 
‘‘(A) establish criteria and minimum re-
quirements for the leasing activity of any depos-
itory institution or affiliate of a depository in-
stitution, including minimum capital require-
ments, that the agency determines to be appro-
priate for the preservation of the safety and 
soundness of the institution or affiliate; 
‘‘(B) establish requirements or exceptions 
that the agency determines are appropriate 
under this subsection for any such institution 
or affiliate for any other purpose; and 
‘‘(C) provide for appropriate actions under 
section 38 with respect to any such lease if nec-
essary to protect the capital or safety and 
soundness of the institution or affiliate or any 
other necessary enforcement action. 
‘‘(3) LENGTH OF LEASE.—If any provision of 
any Federal or State law, including the Bank Hold-
ing Company Act of 1956, governing the permissible 
activities of depository institutions or affiliates of de-
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pository institutions permits a depository institution 
or any such affiliate to hold property as described in 
paragraph (1) for a period longer than 5 years, any 
lease under paragraph (1) may be extended to the 
extent permitted by such provision of law. 
‘‘(4) SUNSET.—This section shall apply only 
with respect to leases entered into during the 3-year 
period beginning on the date of the enactment of the 
Neighborhood Preservation Act.’’. 
(b) INTENT OF THE CONGRESS.—It is the intent of 
the Congress that— 
(1) no permanent change in policy on leasing 
foreclosed property is being established with respect 
to depository institutions and depository institution 
holding companies; and 
(2) subsection (y) of section 18 of the Federal 
Deposit Insurance Act should not apply to leases en-
tered into after the sunset date contained in such 
subsection. 
SEC. 4. GOVERNMENT SPONSORED ENTERPRISE LEASING 
OF FORECLOSED PROPERTIES. 
(a) IN GENERAL.—For the purpose of mitigating 
losses to the taxpayer and stabilizing home prices, an en-
terprise may market for rental any real estate owned prop-
erties and assets of such enterprises and enter into lease 
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agreements with lessees as the Federal Housing Finance 
Agency determines appropriate, prior to the sale of such 
properties and assets, except that any such lease agree-
ment shall be no greater than 5 years. Authority to enter 
into leasing agreements pursuant to this subsection shall 
terminate 3 years after the date of the enactment of this 
Act. 
(b) ENTERPRISE DEFINED.—The term ‘‘enterprise’’ 
means— 
(1) the Federal National Mortgage Association; 
and 
(2) the Federal Home Loan Mortgage Corpora-
tion. 
Æ 
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