103 
in meeting the goals established under this section and 
shall evaluate such performance (for purposes of section 
1336) based on— 
‘‘(1) the income of the prospective or actual 
tenants of the property, where such data are avail-
able; or 
‘‘(2) where the data referred to in paragraph 
(1) are not available, rent levels affordable to low- 
income and very low-income families. 
A rent level shall be considered to be affordable for pur-
poses of this subsection for an income category referred 
to in this subsection if it does not exceed 30 percent of 
the maximum income level of such income category, with 
appropriate adjustments for unit size as measured by the 
number of bedrooms. 
‘‘(d) DETERMINATION OF COMPLIANCE.—The Direc-
tor shall, for each year that the housing goal under this 
section is in effect pursuant to section 1331(a), determine 
whether each enterprise has complied with such goal and 
the additional requirements under subsection (a)(2). 
‘‘SEC. 1334. DISCRETIONARY ADJUSTMENT OF HOUSING 
GOALS. 
‘‘(a) AUTHORITY.—An enterprise may petition the 
Director in writing at any time during a year to reduce 
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104 
the level of any goal for such year established pursuant 
to this subpart. 
‘‘(b) STANDARD
FOR REDUCTION.—The Director 
may reduce the level for a goal pursuant to such a petition 
only if— 
‘‘(1) market and economic conditions or the fi-
nancial condition of the enterprise require such ac-
tion; or 
‘‘(2) efforts to meet the goal would result in the 
constraint of liquidity, over-investment in certain 
market segments, or other consequences contrary to 
the intent of this subpart, or section 301(3) of the 
Federal National Mortgage Association Charter Act 
(12 U.S.C. 1716(3)) or section 301(3) of the Fed-
eral Home Loan Mortgage Corporation Act (12 
U.S.C. 1451 note), as applicable. 
‘‘(c) DETERMINATION.—The Director shall make a 
determination regarding any proposed reduction within 30 
days of receipt of the petition regarding the reduction. The 
Director may extend such period for a single additional 
15-day period, but only if the Director requests additional 
information from the enterprise. A denial by the Director 
to reduce the level of any goal under this section may be 
appealed to the United States District Court for the Dis-
trict of Columbia or the United States district court in 
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105 
the jurisdiction in which the headquarters of an enterprise 
is located.’’. 
(b) CONFORMING AMENDMENTS.—The Housing and 
Community Development Act of 1992 is amended— 
(1) in section 1335(a) (12 U.S.C. 4565(a)), in 
the matter preceding paragraph (1), by striking 
‘‘low- and moderate-income housing goal’’ and all 
that follows through ‘‘section 1334’’ and inserting 
‘‘housing goals established under this subpart’’; and 
(2) 
in 
section 
1336(a)(1) 
(12 
U.S.C. 
4566(a)(1)), by striking ‘‘sections 1332, 1333, and 
1334,’’ and inserting ‘‘this subpart’’. 
(c) DEFINITIONS.—Section 1303 of the Housing and 
Community Development Act of 1992 (12 U.S.C. 4502), 
as amended by the preceding provisions of this Act, is fur-
ther amended— 
(1) in paragraph (22) (relating to the definition 
of ‘‘very low-income’’), by striking ‘‘60 percent’’ each 
place such term appears and inserting ‘‘50 percent’’; 
(2) by redesignating paragraphs (19) through 
(22) as paragraphs (23) through (26), respectively; 
(3) by inserting after paragraph (18) the fol-
lowing new paragraph: 
‘‘(22) RURAL AREA.—The term ‘rural area’ has 
the meaning given such term in section 520 of the 
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106 
Housing Act of 1949 (42 U.S.C. 1490), except that 
such term includes micropolitan areas and tribal 
trust lands.’’. 
(4) by redesignating paragraphs (13) through 
(18) as paragraphs (16) through (21), respectively; 
(5) by inserting after paragraph (12) the fol-
lowing new paragraph: 
‘‘(15) LOW-INCOME AREA.—The term ‘low in-
come area’ means a census tract or block numbering 
area in which the median income does not exceed 80 
percent of the median income for the area in which 
such census tract or block numbering area is lo-
cated, and, for the purposes of section 1332(a)(2), 
shall include families having incomes not greater 
than 100 percent of the area median income who re-
side in minority census tracts.’’; 
(6) by redesignating paragraphs (11) and (12) 
as paragraphs (13) and (14), respectively; 
(7) by inserting after paragraph (10) the fol-
lowing new paragraph: 
‘‘(12) EXTREMELY
LOW-INCOME.—The term 
‘extremely low-income’ means— 
‘‘(A) in the case of owner-occupied units, 
income not in excess of 30 percent of the area 
median income; and 
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107 
‘‘(B) in the case of rental units, income 
not in excess of 30 percent of the area median 
income, with adjustments for smaller and larger 
families, as determined by the Secretary.’’; 
(8) by redesignating paragraphs (7) through 
(10) as paragraphs (8) through (11), respectively; 
and 
(9) by inserting after paragraph (6) the fol-
lowing new paragraph: 
‘‘(7) CONFORMING MORTGAGE.—The term ‘con-
forming mortgage’ means, with respect to an enter-
prise, a conventional mortgage having an original 
principal obligation that does not exceed the dollar 
limitation, in effect at the time of such origination, 
under, as applicable— 
‘‘(A) section 302(b)(2) of the Federal Na-
tional Mortgage Association Charter Act; or 
‘‘(B) section 305(a)(2) of the Federal 
Home Loan Mortgage Corporation Act.’’. 
SEC. 126. DUTY TO SERVE UNDERSERVED MARKETS. 
(a) ESTABLISHMENT
AND EVALUATION
OF PER-
FORMANCE.—Section 1335 of the Housing and Commu-
nity Development Act of 1992 (12 U.S.C. 4565) is amend-
ed— 
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108 
(1) in the section heading, by inserting ‘‘DUTY 
TO SERVE UNDERSERVED MARKETS AND’’ be-
fore ‘‘OTHER’’; 
(2) by striking subsection (b); 
(3) in subsection (a)— 
(A) in the matter preceding paragraph (1), 
by inserting ‘‘and to carry out the duty under 
subsection (a) of this section’’ before ‘‘, each 
enterprise shall’’; 
(B) in paragraph (3), by inserting ‘‘and’’ 
after the semicolon at the end; 
(C) in paragraph (4), by striking ‘‘; and’’ 
and inserting a period; 
(D) by striking paragraph (5); and 
(E) by redesignating such subsection as 
subsection (b); 
(4) by inserting before subsection (b) (as so re-
designated by paragraph (3)(E) of this subsection) 
the following new subsection: 
‘‘(a) DUTY TO SERVE UNDERSERVED MARKETS.— 
‘‘(1) DUTY.—In accordance with the purpose of 
the enterprises under section 301(3) of the Federal 
National Mortgage Association Charter Act (12 
U.S.C. 1716) and section 301(b)(3) of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 
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109 
1451 note) to undertake activities relating to mort-
gages on housing for very low-, low-, and moderate- 
income families involving a reasonable economic re-
turn that may be less than the return earned on 
other activities, each enterprise shall have the duty 
to increase the liquidity of mortgage investments 
and improve the distribution of investment capital 
available for mortgage financing for underserved 
markets. 
‘‘(2) UNDERSERVED
MARKETS.—To meet its 
duty under paragraph (1), each enterprise shall com-
ply with the following requirements with respect to 
the following underserved markets: 
‘‘(A) MANUFACTURED HOUSING.—The en-
terprise shall lead the industry in developing 
loan products and flexible underwriting guide-
lines to facilitate a secondary market for mort-
gages on manufactured homes for very low-, 
low-, and moderate-income families. 
‘‘(B) AFFORDABLE
HOUSING
PRESERVA-
TION.—The enterprise shall lead the industry in 
developing loan products and flexible under-
writing guidelines to facilitate a secondary mar-
ket to preserve housing affordable to very 
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110 
low-, low-, and moderate-income families, in-
cluding housing projects subsidized under— 
‘‘(i) the project-based and tenant- 
based rental assistance programs under 
section 8 of the United States Housing Act 
of 1937; 
‘‘(ii) the program under section 236 
of the National Housing Act; 
‘‘(iii) the below-market interest rate 
mortgage program under section 221(d)(4) 
of the National Housing Act; 
‘‘(iv) the supportive housing for the 
elderly program under section 202 of the 
Housing Act of 1959; 
‘‘(v) the supportive housing program 
for persons with disabilities under section 
811 of the Cranston-Gonzalez National Af-
fordable Housing Act; and 
‘‘(vi) the rural rental housing program 
under section 515 of the Housing Act of 
1949. 
‘‘(C) RURAL
AND
OTHER
UNDERSERVED 
MARKETS.—The enterprise shall lead the indus-
try in developing loan products and flexible un-
derwriting guidelines to facilitate a secondary 
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111 
market for mortgages on housing for very 
low-, low-, and moderate-income families in 
rural areas, and for mortgages for housing for 
any other underserved market for very low-, 
low-, and moderate-income families that the 
Secretary identifies as lacking adequate credit 
through conventional lending sources. Such un-
derserved markets may be identified by bor-
rower type, market segment, or geographic 
area.’’; and 
(5) by adding at the end the following new sub-
section: 
‘‘(c) EVALUATION
AND REPORTING
OF COMPLI-
ANCE.— 
‘‘(1) IN GENERAL.—Not later than 6 months 
after the effective date under section 185 of the 
Federal Housing Finance Reform Act of 2007, the 
Director shall establish a manner for evaluating 
whether, and the extent to which, the enterprises 
have complied with the duty under subsection (a) to 
serve underserved markets and for rating the extent 
of such compliance. Using such method, the Director 
shall, for each year, evaluate such compliance and 
rate the performance of each enterprise as to extent 
of compliance. The Director shall include such eval-
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