(1) sponsoring single room occupancy and fam-
ily-oriented mutual housing cooperatives; and 
(2) providing continuing management and sup-
port services to its self-governed member buildings. 
SEC. 232. ESTABLISHMENT. 
(a) IN GENERAL.—There is hereby established the 
Federal Homelessness to Housing Mutual Mortgage Asso-
ciation, otherwise to be known as ‘‘Hollie Mae’’, which 
shall be a body corporate under the direction of a Board 
of Directors. Within the limitations of law and regulation, 
the Board of Directors shall determine the general policies 
that govern the operations of the Association. 
(b) TAX-EXEMPT STATUS.—The Association shall be 
considered, for purposes of section 501(c)(3) of the Inter-
nal Revenue Code of 1986 (26 U.S.C. 501(c)(3)), to be 
a corporation organized and operated for charitable pur-
poses and shall be organized and operated at all times in 
a manner such that the Association is an organization ex-
empt from taxation pursuant to such section 501. 
(c) OFFICE.—The principal office of the Association 
shall be in the District of Columbia or at any other place 
determined by the Association. 
(d) BOARD OF DIRECTORS.—
(1) MEMBERS.—Except as provided in para-
graph (5), the Board of Directors of the Association 
shall consist of 20 persons, as follows: 
(A) CLASS A TENANT-SHAREHOLDER MEM-
BERS.—9 members, who shall be individuals 
who are tenant-shareholders of mutual housing 
sponsored and managed by the Association, and 
who shall be elected pursuant to an election in 
which only tenant-shareholders of such housing 
are eligible to vote. 
(B) CLASS
B
BOARD-NOMINATED
MEM-
BERS.—9 members, who shall meet such cri-
teria regarding experience as the Board shall 
establish in the areas of low-income housing, fi-
nance, supportive services, real estate manage-
ment, cooperative business, local government, 
and advocacy and services for homeless persons, 
and who shall be elected pursuant to an election 
in which only tenant-shareholders of mutual 
housing sponsored and managed by the Associa-
tion may vote, from among qualified persons 
nominated by existing members of the Board 
under this subparagraph.
(C) CLASS C PRESIDENTIALLY APPOINTED 
MEMBERS.—2 members, who shall be appointed 
by the President of the United States. 
(2) TERMS.— 
(A) CLASS A MEMBERS.—Each member of 
the Board of Directors pursuant to paragraph 
(1)(A) shall be elected for a term of 3 years, ex-
cept that, as designated at the time of election, 
of such members first elected pursuant to para-
graph (5)(C), 3 members shall be elected for 
terms of 1 year and 3 members shall be elected 
for terms of 2 years. 
(B) CLASS B MEMBERS.—Each member of 
the Board of Directors pursuant to paragraph 
(1)(B) shall be elected for a term of 3 years, 
except that, as designated at the time of elec-
tion, of such members first elected pursuant to 
paragraph (5)(C), 3 members shall be elected 
for terms of 1 year and 3 members shall be 
elected for terms of 2 years. 
(C) CLASS C MEMBERS.—Each member of 
the Board of Directors pursuant to paragraph 
(1)(C) shall be appointed for a term of 2 years. 
(3) VACANCIES.—Any appointive seat on the 
Board of Directors that becomes vacant shall be
filled by appointment by the President of the United 
States, but only for the unexpired portion of the 
term. Any elective seat on the Board of Directors 
that becomes vacant shall be filled by the Board of 
Directors, but only for the unexpired portion of the 
term. 
(4) PROHIBITION
ON
COMPENSATION.—Any 
member of the Board of Directors who is a full-time 
officer or employee of the Federal Government shall 
not, as such member, receive compensation for serv-
ices as such a member. 
(5) 
INITIAL
BOARD.—Notwithstanding 
any 
other provision of this subsection, the initial Board 
of Directors shall be organized as follows: 
(A) MEMBERS.—The initial Board shall 
have 9 members— 
(i) 6 of whom shall be appointed by 
the Interagency Council on the Homeless 
after a call for nominations, which shall be 
made by public notice; and 
(ii) 3 of whom shall be appointed by 
the National Cooperative Bank. 
(B) TERM
OF
OPERATIONS.—The initial 
Board shall serve until the expiration of the 
180-day period beginning upon the Association
having obtained occupancy certificates for three 
mutual housing cooperatives sponsored by the 
Association. 
(C) TRANSITION.—During the period re-
ferred to in subparagraph (B), the initial Board 
shall nominate qualified persons for election to 
the Board pursuant to paragraph (1)(B), elec-
tions pursuant to paragraph (2) shall be held 
for members of the Board pursuant to subpara-
graphs (A) and (B) of paragraph (1), and 
members pursuant to paragraph (1)(C) shall be 
appointed. 
SEC. 233. POWERS AND AUTHORITIES. 
(a) CORPORATE POWERS.—The Association shall 
have power— 
(1) to adopt, alter, and use a corporate seal; 
(2) to have succession until dissolved by Act of 
Congress; 
(3) to make and enforce such bylaws, rules, and 
regulations as may be necessary or appropriate to 
carry out the purposes or provisions of this subtitle; 
(4) to make and perform contracts, agreements, 
and commitments; 
(5) to prescribe and impose fees and charges 
for services by the Association;
(6) to settle, adjust, and compromise, and with 
or without consideration or benefit to the Associa-
tion to release or waive in whole or in part, in ad-
vance or otherwise, any claim, demand, or right of, 
by, or against the Association; 
(7) to sue and be sued, complain and defend, in 
any State, Federal, or other court; 
(8) to acquire, take, hold, and own, and to deal 
with and dispose of any property; and 
(9) to determine its necessary expenditures and 
the manner in which the same shall be incurred, al-
lowed, and paid, and appoint, employ, and fix and 
provide for the compensation and benefits of offi-
cers, employees, attorneys, and agents as the Board 
of Directors determines reasonable and comparable 
with compensation for employment in other similar 
nonprofit businesses. 
(b) EXEMPTION FROM STATE TAXATION.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the Association, including its franchise, 
activities, capital, reserves, surplus, and income, 
shall be exempt from all taxation now or hereafter 
imposed by any territory, dependency, or possession 
of the United States or by any State, county, mu-
nicipality, or local taxing authority.
(2) TREATMENT OF REAL PROPERTY TAXES.— 
In the case of any real property of the Association 
that is disposed of by the Association or the use of 
which changes from mutual housing use to any other 
use, the Association shall be liable for payment of 
any taxes that would have been incurred during the 
3-year period ending up such disposition or change 
of use but for paragraph (1). 
(c) ACTIONS.—Notwithstanding section 1349 of title 
28, United States Code, or any other provision of law— 
(1) the Association shall be deemed to be an 
agency included in sections 1345 and 1442 of such 
title 28; 
(2) all civil actions to which the Association is 
a party shall be deemed to arise under the laws of 
the United States, and the district courts of the 
United States shall have original jurisdiction of all 
such actions, without regard to amount or value; 
and 
(3) any civil or other action, case or controversy 
in a court of a State, or in any court other than a 
district court of the United States, to which the As-
sociation is a party may at any time before the trial 
thereof be removed by the Association, without the 
giving of any bond or security, to the district court
of the United States for the district and division em-
bracing the place where the same is pending, or, if 
there is no such district court, to the district court 
of the United States for the district in which the 
principal office of the Association is located, by fol-
lowing any procedure for removal of causes in effect 
at the time of such removal. 
(d) INVESTMENT OF FUNDS.—Funds of the Associa-
tion may be invested in such investments as the Board 
of Directors may prescribe. Any Federal Reserve bank or 
Federal home loan bank, or any bank as to which at the 
time of its designation by the Association there is out-
standing a designation by the Secretary of the Treasury 
as a general or other depositary of public money, may be 
designated by the Association as a depositary or custodian 
or as a fiscal or other agent of the Association, and is 
hereby authorized to act as such depositary, custodian, or 
agent. 
SEC. 234. MUTUAL HOUSING OPERATIONS. 
(a) IN GENERAL.—The Association may develop, 
support, finance, construct, acquire, reconstruct, rehabili-
tate, assist, own, operate, manage, hold, and otherwise 
deal in mutual housing. 
(b) MUTUAL HOUSING.—For purposes of this sub-
title, the term ‘‘mutual housing’’ means housing—
(1) that is held by the Association or another 
nonprofit mutual housing association as a coopera-
tive ownership housing association, as the Board of 
Directors shall provide; 
(2) occupancy in the dwelling units of which is 
restricted to members of the Association; 
(3) in which a right to permanent occupancy of 
a dwelling unit is granted to the member, contingent 
upon payment of a housing charge and fulfillment of 
such other obligations of membership in the Associa-
tion as may be established by the Board of Direc-
tors; 
(4) the management and operation of which is 
governed by the Board of Directors, with the advice 
of a council of residents of the housing as the Board 
shall establish; and 
(5) within which such resident programs, sup-
port services, and assistance may be provided as the 
Board of Directors, with the advice of the resident 
council, considers appropriate. 
(c) HOUSING AFFORDABILITY, TYPES, TARGETING, 
AND OCCUPANCY PRIORITY.—Mutual housing supported, 
developed, or held by the Association shall comply with 
the following requirements:
(1) AFFORDABILITY.—The housing shall be 
housing that is affordable, as determined by the 
Board of Directors, for low-income families (as such 
term is defined in section 3(b) of the United States 
Housing Act of 1937 (42 U.S.C. 1437a(b)). 
(2) TYPES.—The housing shall be designed— 
(A) for occupancy by families; or 
(B) as single room occupancy dwellings ap-
propriate for occupancy by individuals. 
(3) INCOME TARGETING.—All dwelling units in 
the housing may be reserved for occupancy by 
low-, very low-, and extremely low-income families 
with modest or intermittent needs for other sup-
portive services. 
(4) OCCUPANCY PRIORITY.— 
(A) FIRST
PRIORITY.—Priority for occu-
pancy in all dwelling units in the housing shall 
be provided to individuals and families who— 
(i) during the 12-month period ending 
upon initial occupancy, were homeless (as 
such term is defined in section 103 of the 
McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11302); or 
(ii) during the 24-month period end-
ing upon initial occupancy, received assist-
ance under a State program funded under 
part A of title IV of the Social Security 
Act. 
(B) SECONDARY PRIORITY.—Priority, sec-
ondary to that provided pursuant to subpara-
graph (A), for occupancy in the housing shall 
be provided to individuals and families holding 
a voucher for rental assistance under section 
8(o) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(o)) or other similar tenant- 
based rental assistance. 
(C) GENERAL AVAILABILITY OF UNITS.—If 
there are insufficient individuals and families 
that qualify for priorities under subparagraphs 
(A) and (B) to fill all the dwelling units in the 
housing, dwelling units may be made available 
to other individuals and families that meet the 
income requirements for occupancy in the hous-
ing. 
(5) OTHER.—The housing shall comply with 
such other policies regarding eligible residents as the 
Board of Directors may establish. 
SEC. 235. FINANCING. 
(a) AUTHORIZATION
OF
APPROPRIATIONS
FOR 
START-UP.—There is authorized to be appropriated to the
Association for assistance for the supporting and devel-
oping mutual housing and costs of the Association in car-
rying out its functions— 
(1) $50,000,000 for fiscal year 2007; 
(2) $100,000,000 for fiscal year 2008; and 
(3) $150,000,000 for fiscal year 2009. 
(b) OBLIGATIONS AND SECURITIES.— 
(1) AUTHORITY
TO
ISSUE.—The Association 
may, upon such terms and conditions as the Board 
of Directors may prescribe, borrow, give security, 
pay interest or other return, and issue notes, deben-
tures, bonds, and other obligations and securities. 
(2) TREASURY APPROVAL.—Any notes, deben-
tures, or substantially identical types of unsecured 
obligations of the Association evidencing money bor-
rowed, whether general or subordinated, shall be 
issued upon the approval of the Secretary of the 
Treasury and shall have such maturities and bear 
such rate or rates of interest as may be determined 
by the Association with the approval of the Sec-
retary of the Treasury. 
(c) TEMPORARY AUTHORITY
TO BORROW FROM 
TREASURY.— 
(1) IN GENERAL.—The Secretary of the Treas-
ury may purchase any obligations issued under sub-
section (b). For such purpose, the Secretary may use 
a public debt transaction the proceeds of the sale of 
any securities issued under chapter 31 of title 31, 
United States Code, and the purposes for which se-
curities may be issued under such chapter are ex-
tended to include such purpose. 
(2) LIMITATIONS ON AMOUNT AND TIMING.— 
The Secretary of the Treasury shall not at any time 
purchase any obligations under this subsection— 
(A) after the expiration of the 3-year pe-
riod beginning upon the date of the enactment 
of the first appropriation Act that provides 
amounts for the Association pursuant to sub-
section (a); or 
(B) if the purchase would increase the ag-
gregate principal amount of the outstanding 
holdings of obligations under this subsection by 
the Secretary to an amount greater than 
$100,000,000. 
(3) TERMS AND CONDITIONS.—Each purchase 
of obligations by the Secretary of the Treasury 
under this subsection shall be upon terms and condi-
tions established to yield a rate of return determined 
by the Secretary of the Treasury to be appropriate, 
taking into consideration the current average rate on
outstanding marketable obligations of the United 
States as of the last day of the month preceding the 
making of the purchase. 
(4) SALE.—The Secretary of the Treasury may 
at any time sell, upon terms and conditions and at 
prices determined by the Secretary, any of the obli-
gations acquired by the Secretary under this sub-
section. 
(5) TREATMENT
AS
PUBLIC
DEBT
TRANS-
ACTIONS.—All redemptions, purchases, and sales by 
the Secretary of the Treasury of obligations under 
this subsection shall be treated as public debt trans-
actions of the United States. 
(d) SENSE OF CONGRESS REGARDING FINANCING.— 
It is the sense of the Congress that— 
(1) in order to facilitate the raising of capital 
by the Association to carry out its functions, interest 
on revenue bonds of the Association should be treat-
ed under Federal law as exempt from Federal tax-
ation; 
(2) operating funds for housing provided by the 
Association should be derived wholly from the 
monthly payments made by, or on behalf of, resi-
dents of the cooperative housing of the Association; 
and
(3) the Association should use its tax-exempt, 
nonprofit status to obtain funding and resources for 
its activities from foundations, State and local gov-
ernments, land trusts, and other sources of income 
made available to such organizations. 
SEC. 236. RELATIONSHIP WITH OTHER PROGRAMS. 
(a) COMMUNITY REINVESTMENT ACT CREDIT.—In 
assessing and taking into account, under section 804(a) 
of the Community Reinvestment Act of 1977 (12 U.S.C. 
2903(a)), the record of any regulation financial institu-
tion, the appropriate Federal financial supervisory agency 
(as defined in section 803(1) of such Act) may consider 
as a factor investments in mutual housing supported by 
the Association in determining whether the institution is 
meeting the credit needs of its community for purposes 
of such section 804(a). 
(b) HUD MORTGAGEE PROGRAMS.—The Secretary 
of Housing and Urban Development shall treat the Asso-
ciation as an eligible mortgagee for purposes of participa-
tion in all single family and multifamily mortgage insur-
ance programs under the National Housing Act (12 
U.S.C. 1701 et seq.), except that such participation shall 
be subject to the authority of the Mortgagee Review Board 
under section 202 of such Act (12 U.S.C. 1708).
(c) COMMUNITY DEVELOPMENT FINANCIAL INSTITU-
TIONS.—The Association shall, in providing mutual hous-
ing in accordance and carrying out its functions and re-
sponsibilities under this subtitle, utilize and work with 
community development financial institutions (as such 
term is defined in section 103 of the Community Develop-
ment Banking and Financial Institutions Act of 1994 (12 
U.S.C. 4702)) to the maximum extent practicable. 
(d) FANNIE MAE.—Section 302(b) of the Federal 
National Mortgage Association Charter Act (12 U.S.C. 
1717(b)) is amended by adding at the end the following 
new paragraph: 
‘‘(7) The corporation may purchase, service, sell lend 
on the security of, and otherwise deal in loans or advances 
of credit secured by any first or subsequent mortgage or 
other lien on mutual housing that is owned or leased by 
the Federal Homeownership Mutual Mortgage Associa-
tion. Such mortgages shall meet any purchase standards 
otherwise established by the corporation pursuant to sec-
tion 304(a).’’ 
(e) FREDDIE MAC.—Section 305(a) of the Federal 
Home Loan Mortgage Corporation Act (12 U.S.C. 
1454(a)) is amended by adding at the end the following 
new paragraph:
‘‘(6) The Corporation may purchase, service, sell lend 
on the security of, and otherwise deal in loans or advances 
of credit secured by any first or subsequent mortgage or 
other lien on mutual housing that is owned or leased by 
the Federal Homeownership Mutual Mortgage Associa-
tion. Such mortgages shall meet any purchase standards 
otherwise established by the Corporation pursuant to 
paragraph (1).’’. 
(f) GINNIE MAE.—The first sentence of section 
306(g)(1) of the National Housing Act (12 U.S.C. 
1721(g)(1)) is amended by inserting before the period at 
the end the following: ‘‘; or a trust or pool or composed 
of mortgages on mutual housing that is owned or leased 
by the Federal Homeownership Mutual Mortgage Associa-
tion’’. 
(g) REVENUE BONDS AND TAX CREDITS.— 
(1) MUTUAL
HOUSING
BONDS
TREATED
AS 
QUALIFIED MORTGAGE BONDS.—Any bond which is 
issued as part of an issue by a State or political sub-
division thereof for the purpose of providing mutual 
housing developed by the Association to members of 
a limited equity cooperative shall be treated as a 
qualified mortgage bond for purposes of section 143 
of the Internal Revenue Code of 1986 (relating to 
qualified mortgage bonds). For purposes of the pre-
ceding sentence, section 143(d) of such Code shall 
be applied by substituting ‘‘80 percent’’ for ‘‘95 per-
cent’’. 
(2) REHABILITATION CREDIT.—For purposes of 
section 47 of the Internal Revenue Code of 1986 (re-
lating to rehabilitation credit), mutual housing sup-
ported, developed, or held by the Association shall be 
treated as residential rental property. 
(3) CREDIT MAY BE TRANSFERRED.—Nothing 
in any law or rule of law shall be construed to limit 
the transferability of the credit allowed to the Asso-
ciation by sections 42 and 47 of the Internal Rev-
enue Code of 1986 (relating to low-income housing 
credit and rehabilitation credit) through sale and re-
purchase agreements. 
(h) CDBG AND HOME.—Notwithstanding any other 
provision of law— 
(1) mutual housing owned or leased by the As-
sociation or any affiliate of the Association that is 
formed for the purpose of owning or leasing mutual 
housing shall be considered affordable housing for 
purposes of the HOME Investment Partnerships 
Act; and 
(2) the provision of assistance for the develop-
ment of such mutual housing shall be considered an
activity eligible for assistance under title I of the 
Housing and Community Development Act of 1974 
(42 U.S.C. 5301 et seq.). 
(i) SECTION 8 HOMEOWNERSHIP PROGRAM.—Not-
withstanding any other provision of law, homeownership 
assistance under section 8(y) of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437f(y)) may be used in con-
nection with fulfilling the financial obligations for mem-
bership in a mutual housing association operating housing 
owned or leased by the Association and for residence in 
housing of such association, in the manner that such as-
sistance is made available under such section for owner-
ship in a housing cooperative. Such use shall include use 
of assistance amounts to provide a deposit with the Asso-
ciation, on behalf of such a resident, in an amount not 
exceeding three months carrying charges, which shall be 
held by the Association and used at the request of the 
resident and the approval of the Secretary upon financial 
hardship to the resident, and if not so used shall be recov-
ered by the Secretary upon termination of the membership 
of the resident in the Association. 
(j) SUPPORTIVE HOUSING.— 
(1) PARTNERING AUTHORITY.—Mutual housing 
owned or leased by the Association may be developed 
as—