I
106TH CONGRESS
2D SESSION
H. R. 3884
To amend section 203 of the National Housing Act to provide for 1 percent
downpayments for FHA mortgage loans for teachers and public safety
officers to buy homes within the jurisdictions of their employing agencies.
IN THE HOUSE OF REPRESENTATIVES
MARCH 9, 2000
Mr. LAFALCE (for himself, Mr. KANJORSKI, Mr. MALONEY of Connecticut,
Ms. HOOLEY of Oregon, Mr. WEYGAND, Ms. LEE, Mr. FORBES, Mr.
GUTIERREZ, 
Mr. 
SANDLIN, 
Mr. 
ROMERO-BARCELO´, 
and 
Mrs.
CHRISTENSEN) introduced the following bill; which was referred to the
Committee on Banking and Financial Services
A BILL
To amend section 203 of the National Housing Act to pro-
vide for 1 percent downpayments for FHA mortgage
loans for teachers and public safety officers to buy homes
within the jurisdictions of their employing agencies.
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 ‘‘Homeownership Op-
portunities for Uniformed Services and Educators Act’’.
SEC. 2. REDUCED DOWNPAYMENT REQUIREMENTS FOR
LOANS FOR TEACHERS AND UNIFORMED MU-
NICIPAL EMPLOYEES.
(a) IN GENERAL.—Section 203(b) of the National
Housing Act (12 U.S.C. 1709(b)) is amended—
(1) in paragraph (10)(A), in the matter pre-
ceding clause (i)—
(A) by striking ‘‘Notwithstanding’’ and in-
serting ‘‘Except as provided in paragraph (11)
and notwithstanding’’; and
(B) by striking ‘‘involving’’ and insert ‘‘the
mortgage shall involve’’; and
(2) by adding at the end the following new
paragraph:
‘‘(11) 
REDUCED
DOWNPAYMENT
REQUIRE-
MENTS FOR TEACHERS AND UNIFORMED MUNICIPAL
EMPLOYEES.—
‘‘(A) IN GENERAL.—In the case of a mort-
gage described in subparagraph (B)—
‘‘(i) the mortgage shall involve a prin-
cipal obligation in an amount that does not
exceed the sum of 99 percent of the ap-
praised value of the property and the total
amount of initial service charges, ap-
praisal, inspection, and other fees (as the
Secretary shall approve) paid in connection
with the mortgage;
‘‘(ii) no other provision of this sub-
section limiting the principal obligation of
the mortgage based upon a percentage of
the appraised value of the property subject
to the mortgage shall apply; and
‘‘(iii) the matter in paragraph (9) that
precedes the first proviso shall not apply
and the mortgage shall be executed by a
mortgagor who shall have paid on account
of the property at least 1 percent of the
cost of acquisition (as determined by the
Secretary) in cash or its equivalent.’’.
‘‘(B) MORTGAGES COVERED.—A mortgage
described in this subparagraph is a mortgage—
‘‘(i) under which the mortgagor is an
individual who—
‘‘(I) is employed on a full-time
basis as (aa) a teacher or adminis-
trator in a public or private school
that provides elementary or secondary
education, as determined under State
law, except that secondary education
shall not include any education be-
yond grade 12, or (bb) a public safety
officer (as such term is defined in sec-
tion 1204 of the Omnibus Crime Con-
trol and Safe Streets Act of 1968 (42
U.S.C. 3796b), except that such term
shall not include any officer serving a
public agency of the Federal Govern-
ment); and
‘‘(II) has not, during the 12-
month period ending upon the insur-
ance of the mortgage, had any present
ownership interest in a principal resi-
dence located in the jurisdiction de-
scribed in clause (ii); and
‘‘(ii) made for a property that is lo-
cated within the jurisdiction of—
‘‘(I) in the case of a mortgage of
a mortgagor described in clause
(i)(I)(aa), the local educational agency
(as such term is defined in section
14101 of the Elementary and Sec-
ondary Education Act of 1965 (20
U.S.C. 8801)) for the school in which
the mortgagor is employed (or, in the
case of a mortgagor employed in a
private school, the local educational
agency having jurisdiction for the area
in which the private school is located);
or
‘‘(II) in the case of a mortgage of
a mortgagor described in clause
(i)(I)(bb), the jurisdiction served by
the public law enforcement agency,
firefighting agency, or rescue or am-
bulance agency that employs the
mortgagor.’’.
(b) DEFERRAL AND REDUCTION OF UP-FRONT PRE-
MIUM.—Section 203(c) of the National Housing Act (12
U.S.C. 1709(c)(2)) is amended—
(1) in paragraph (2), in the matter preceding
subparagraph (A), by striking ‘‘Notwithstanding’’
and inserting ‘‘Except as provided in paragraph (3)
and notwithstanding’’; and
(2) by adding at the end the following new
paragraph:
‘‘(3) DEFERRAL AND REDUCTION OF UP-FRONT PRE-
MIUM.—In the case of any mortgage described in sub-
section (b)(11)(B):
‘‘(A) Paragraph (2)(A) of this subsection (relat-
ing to collection of up-front premium payments)
shall not apply.
‘‘(B) If, at any time during the 5-year period
beginning on the date of the insurance of the mort-
gage, the mortgagor ceases to be employed as de-
scribed in subsection (b)(11)(B)(i)(I) or pays the
principal obligation of the mortgage in full, the Sec-
retary shall at such time collect a single premium
payment in an amount equal to the amount of the
single premium payment that, but for this para-
graph, would have been required under paragraph
(2)(A) of this subsection with respect to the mort-
gage, as reduced by 20 percent of such amount for
each successive 12-month period completed during
such 5-year period before such cessation or prepay-
ment occurs.’’.
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