I 
116TH CONGRESS 
2D SESSION 
H. R. 8974 
To increase the principal obligation limits for mortgage insurance under 
the National Housing Act for residences in eligible metropolitan cities 
and urban counties. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 16, 2020 
Mr. AGUILAR introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To increase the principal obligation limits for mortgage in-
surance under the National Housing Act for residences 
in eligible metropolitan cities and urban counties. 
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 ‘‘FHA Fairness Act’’. 
SEC. 2. FHA PRINCIPAL OBLIGATION LIMITS FOR RESI-
DENCES IN ELIGIBLE CITIES AND COUNTIES. 
Section 203(b) of the National Housing Act (12 
U.S.C. 1709) is amended by adding at the end of para-
graph (2) the following undesignated paragraph: 
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‘‘Notwithstanding any other provision of this 
paragraph, in the case of a residence located in an 
eligible city or county, clause (i) and (ii) of subpara-
graph (A) shall be considered to require that a mort-
gage shall involve a principal obligation in an 
amount that does not exceed in the case of a 1-fam-
ily residence, 125 percent of the median 1-family 
house price in the eligible city or county in which the 
residence is located, as defined by the Secretary; in 
the case of a 2-family residence, 125 percent of the 
median 2-family house price in the eligible city or 
county in which the residence is located, as defined 
by the Secretary; in the case of a 3-family residence, 
125 percent of the median 3-family house price in 
the eligible city or county in which the residence is 
located, as defined by the Secretary; and in the case 
of a 4-family residence, 125 percent of the median 
4-family house price in the eligible city or county in 
which the residence is located, as defined by the Sec-
retary. For the purposes of the preceding sentence, 
the term ‘eligible city or county’ means a metropoli-
tan city or urban county (as such terms are defined 
in section 102 of the Housing and Community De-
velopment Act of 1974 (42 U.S.C. 5302)) that has 
a median 1-family home price that exceeds the 
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amount determined under subparagraph (A)(ii) of 
this paragraph for the area (as the term is defined 
in the first sentence after subparagraph (B)) within 
which such city or county is located and is located 
in an area that, as determined by the Secretary, ex-
perienced a decrease in maximum principal obliga-
tion amount under this paragraph for 1-family resi-
dences equal to or in excess of 20 percent between 
January 1, 2013, and January 1, 2014.’’. 
SEC. 3. EFFECTIVE DATE. 
The amendment made by this Act shall apply only 
to mortgages for which the mortgagee has issued credit 
approval for the borrower on or after January 1, 2021. 
Æ 
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