I 
109TH CONGRESS 
1ST SESSION H. R. 3556 
To authorize the Secretary of Housing and Urban Development to carry 
out pilot programs to insure low-downpayment mortgages to enable teach-
ers and public safety officers to purchase homes in the jurisdictions 
they serve and to assist Federal, State, and local public safety officers 
purchasing homes in locally-designated at-risk areas. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 28, 2005 
Ms. HARRIS introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To authorize the Secretary of Housing and Urban Develop-
ment to carry out pilot programs to insure low-downpay-
ment mortgages to enable teachers and public safety 
officers to purchase homes in the jurisdictions they serve 
and to assist Federal, State, and local public safety 
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. SHORT TITLE. 
This Act may be cited as the ‘‘Housing Affordability 
for Teachers and Public Safety Officers Act of 2005’’.
SEC. 2. PILOT PROGRAM FOR REDUCED FHA DOWNPAY-
MENT 
REQUIREMENTS 
FOR 
LOANS 
FOR 
TEACHERS AND PUBLIC SAFETY OFFICERS. 
(a) IN GENERAL.—Section 203(b) of the National 
Housing Act (12 U.S.C. 1709(b)) is amended by adding 
at the end the following new paragraph: 
‘‘(10) 
REDUCED
DOWNPAYMENT
REQUIRE-
MENTS FOR TEACHERS AND PUBLIC SAFETY OFFI-
CERS.— 
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (2), in the case of a mortgage 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 (aa) a teacher, or (bb) a 
public safety officer; 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 
for the school in which the mortgagor
is employed (or, in the case of a mort-
gagor 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. 
‘‘(C) 
PROGRAM
INTEGRITY.—Notwith-
standing any other provision of this paragraph 
and section 203(c)(3), the Secretary may sus-
pend the applicability of this paragraph and 
such section for such period as the Secretary 
considers appropriate if the Secretary deter-
mines such suspension is necessary because of 
fraud or other issues regarding program integ-
rity. 
‘‘(D) PILOT PROGRAM LIMITATIONS.— 
‘‘(i) ANNUAL.—In any fiscal year, the 
aggregate number of mortgages insured 
under this paragraph may not exceed 10
percent of the aggregate number of mort-
gages and loans insured by the Secretary 
under this title during the preceding fiscal 
year. 
‘‘(ii) TERM OF PROGRAM.—The aggre-
gate number or mortgages insured under 
this paragraph may not exceed 50,000.’’. 
(b) DEFERRAL AND REDUCTION OF UP-FRONT PRE-
MIUM.—Section 203(c) of the National Housing Act (12 
U.S.C. 1709(c)) 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 
PREMIUM.—In the case of any mortgage described in 
subsection (b)(10)(B)— 
‘‘(A) paragraph (2)(A) of this subsection 
(relating to collection of up-front premium pay-
ments) shall not apply; and 
‘‘(B) if, at any time during the 5-year pe-
riod beginning on the date of the insurance of 
the mortgage, the mortgagor ceases to be a
teacher or public safety officer (as such terms 
are defined in section 201) or pays the principal 
obligation of the mortgage in full, the Secretary 
shall at such time collect a single premium pay-
ment in an amount equal to the amount of the 
single premium payment that, but for this para-
graph, would have been required under para-
graph (2)(A) of this subsection with respect to 
the mortgage, as reduced by 20 percent of such 
amount for each successive 12-month period 
completed during such 5-year period before 
such cessation or prepayment occurs.’’. 
(c) DEFINITIONS.—Section 201 of the National 
Housing Act (12 U.S.C. 1707) is amended— 
(1) in subsection (a), by redesignating clauses 
(1) and (2) as clauses (A) and (B), respectively; 
(2) by redesignating subsections (a) through (f) 
as paragraphs (1) through (6), respectively; 
(3) by realigning each such paragraph 2 ems 
from the left margin; and 
(4) by adding at the end the following new 
paragraphs: 
‘‘(7) The term ‘public safety officer’ has the 
meaning given such term in section 1204 of the Om-
nibus Crime Control and Safe Streets Act of 1968 
(42 U.S.C. 3796b). 
‘‘(8) The term ‘teacher’ means an individual 
who is employed on a part- or full-time basis as a 
teacher, teacher assistant, or administrator in a pub-
lic or private school that provides elementary or sec-
ondary education, as determined under State law, 
except that elementary education shall include pre- 
Kindergarten education, and except that secondary 
education shall not include any education beyond 
grade 12. 
‘‘(9) The term ‘local educational agency’ has 
the meaning given such term in section 14101 of the 
Elementary and Secondary Education Act of 1965 
(20 U.S.C. 8801).’’. 
(d) REGULATIONS.—Not later than 60 days after the 
date of the enactment of this Act, the Secretary shall issue 
regulations to implement the amendments made by this 
section. 
SEC. 3. PILOT PROGRAM FOR PUBLIC SAFETY OFFICER 
HOME OWNERSHIP IN AT-RISK AREAS. 
(a) PROGRAM AUTHORITY.—The Secretary of Hous-
ing and Urban Development shall carry out a pilot pro-
gram in accordance with this section to assist Federal,
State, and local public safety officers purchasing homes 
in locally-designated at-risk areas. 
(b) ELIGIBILITY.—To be eligible for assistance under 
this section, a public safety officer shall agree, in writing, 
to use the residence purchased with such assistance as the 
primary residence of the public safety officer for not less 
than 3 years after the date of purchase. 
(c) MORTGAGE ASSISTANCE.—If a public safety offi-
cer 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 one 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) LOCAL DESIGNATION OF AT-RISK AREAS.— 
(1) CRITERIA.—Any unit of local government 
may request that the Secretary designate any area 
within the jurisdiction of that unit of local govern-
ment as a locally-designated at-risk area for pur-
poses of this section 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) PUBLIC SAFETY OFFICER.—For purposes of this 
section, the term ‘‘public safety officer’’ has the meaning 
given such term in section 201 of the National Housing 
Act (12 U.S.C. 1707) (as amended by section 2(c) of this 
Act). 
(f) PROGRAM
INTEGRITY.—Notwithstanding any 
other provision of this section, the Secretary may suspend 
the applicability of this section for such period as the Sec-
retary considers appropriate if the Secretary determines 
such suspension is necessary because of fraud or other 
issues regarding program integrity. 
(g) REGULATIONS.—Not later than 60 days after the 
date of the enactment of this Act, the Secretary shall issue 
regulations to implement the provisions of this section. 
(h) SUNSET.—The Secretary shall not approve any 
application for assistance under this section that is re-
ceived by the Secretary after the expiration of the 3-year
period beginning on the date that the Secretary first 
makes available assistance under the pilot program under 
this section. 
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