HELPER Act of 2021
Bill: S.2981 | Sponsor: Sen. Rubio, Marco (R-FL)
Policy area: Housing and Community Development

Summary:
Homes for Every Local Protector, Educator, and Responder Act of 2021 or the HELPER Act of 2021
This bill establishes a program administered by the Department of Housing and Urban Development to provide mortgage assistance to law enforcement officers, elementary and secondary school teachers, firefighters, or other first responders. Specifically, these individuals may be eligible for a one-time mortgage on a primary family residence with no down payment and no monthly mortgage insurance premium.

To amend the National Housing Act to establish a mortgage insurance 
         program for first responders, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Homes for Every Local Protector, 
Educator, and Responder Act of 2021'' or the ``HELPER Act of 2021''.

SEC. 2. FHA MORTGAGE INSURANCE PROGRAM FOR MORTGAGES FOR FIRST 
              RESPONDERS.

    Title II of the National Housing Act (12 U.S.C. 1707 et seq.) is 
amended by adding at the end the following new section:

``SEC. 259. FHA MORTGAGE INSURANCE PROGRAM FOR MORTGAGES FOR FIRST 
              RESPONDERS.

    ``(a) Authority.--Subject to subsection (i), the Secretary may, 
upon application by a mortgagee, insure any mortgage eligible for 
insurance under this section and, upon such terms and conditions as the 
Secretary may prescribe, make commitments for the insurance of such 
mortgages prior to the date of their execution or disbursement.
    ``(b) Eligible Mortgagors.--The mortgagor for a mortgage insured 
under this section shall, at the time the mortgage is executed, meet 
the following requirements:
            ``(1) First responder.--The mortgagor shall be--
                    ``(A)(i) employed full-time by a law enforcement 
                agency of the Federal Government, a State (as such term 
                is defined in section 201), or a unit of general local 
                government; and
                    ``(ii) in carrying out such full-time employment, 
                sworn to uphold, and make arrests for violations of, 
                Federal, State, county, township, or municipal laws, or 
                authorized by law to supervise sentenced criminal 
                offenders;
                    ``(B) employed full-time as a firefighter, 
                paramedic, or emergency medical technician by a fire 
                department or emergency medical services responder unit 
                of the Federal Government, a State, or a unit of 
                general local government; or
                    ``(C) employed as a full-time teacher by a State-
                accredited public school or private school that 
                provides direct services to students in grades pre-
                kindergarten through 12.
            ``(2) Years of service.--The mortgagor shall have been--
                    ``(A) employed as required under paragraph (1) 
                before application for a mortgage insured under this 
                section for 4 or more consecutive years; or
                    ``(B) released from employment described in 
                paragraph (1)(C) due to an occupation-connected 
                disability resulting directly from such duty or 
                employment.
            ``(3) Intent for future service.--Except in the case of a 
        mortgagor described in paragraph (2)(B), the mortgagor shall 
        have certified that the mortgagor in good faith intends to 
        continue employment as described in paragraph (1) for at least 
        one year following the date of closing on the mortgage.
            ``(4) Good standing.--The mortgagor shall be in good 
        standing with respect to the employment required under 
        paragraph (1) and not on probation or under investigation for 
        conduct that, if determined to have occurred, is grounds for 
        termination of employment.
            ``(5) Acceptable risk.--The mortgagor meets such 
        requirements as the Secretary shall establish to ensure that 
        insurance of the mortgage represents an acceptable risk to the 
        Mutual Mortgage Insurance Fund.
            ``(6) Actuarial objectives.--The mortgagor meets such 
        underwriting requirements as the Secretary shall establish to 
        meet actuarial objectives identified by the Secretary, which 
        may include avoiding a positive subsidy rate or complying with 
        the capital ratio requirement under section 205(f)(2).
            ``(7) One-time use.--The mortgagor shall never previously 
        have been the mortgagor under a mortgage insured under this 
        section.
    ``(c) Mortgage Terms.--A mortgage insured under this section shall 
comply with the following requirements:
            ``(1) Use of proceeds.--The proceeds of the mortgage shall 
        be used only--
                    ``(A) to purchase, construct, or repair a 1-family 
                residence, including a 1-family dwelling unit in a 
                condominium project; or
                    ``(B) to purchase--
                            ``(i) a manufactured home to be permanently 
                        affixed to a lot that is owned by the 
                        mortgagor; or
                            ``(ii) a manufactured home and a lot to 
                        which the home will be permanently affixed.
            ``(2) Security.--The mortgage shall be secured by an 
        interest in the residence for which the proceeds are used.
            ``(3) No downpayment.--Subject to paragraph (5) of this 
        subsection, the mortgage may involve an original principal 
        obligation in an amount up to 100 percent of the cost of 
        acquisition of the residence involved (including charges and 
        fees referred to in such paragraph (5) and the premium pursuant 
        to subsection (d)(1)) and shall not require that the mortgagor 
        shall pay any amount, in cash or its equivalent, on account of 
        the property.
            ``(4) Use as principal residence.--
                    ``(A) Requirement.--The residence securing the 
                mortgage shall be occupied, during the term of the 
                mortgage, by the mortgagor as the mortgagor's principal 
                residence.
                    ``(B) Certification.--The mortgagor shall certify 
                compliance with subparagraph (A) upon the execution of 
                the mortgage and annually during the period specified 
                in such subparagraph.
            ``(5) Loan limits.--The mortgage shall involve an original 
        principal obligation (including such initial service charges, 
        appraisal, inspection, and other fees to the extent allowable 
        in connection with a mortgage insured under section 203) not 
        exceeding the amount allowable with respect to a mortgage 
        insured under section 203(h).
            ``(6) Closing costs.--The Secretary shall provide that the 
        seller of a residence acquired using a mortgage insured under 
        this section may pay all or a part of any closing costs 
        associated with such sale, subject to such limits as the 
        Secretary shall establish.
            ``(7) Mortgagee.--A mortgage insured under this section 
        shall be originated by a mortgagee approved by Secretary under 
        this title.
            ``(8) Interest.--A mortgage insured under this section 
        shall bear interest at rate agreed to by the mortgagor and 
        mortgagee, which may be adjustable.
    ``(d) Mortgage Insurance Premium.--
            ``(1) Up-front premium.--Subject to paragraph (2), the 
        Secretary shall establish and collect an insurance premium in 
        connection with each mortgage insured under this section, at 
        the time and in the manner provided under section 203(c)(2)(A), 
        except that such premiums shall be in an amount equal to 3.6 
        percent of the amount of the original insured principal 
        obligation of the mortgage.
            ``(2) Authority to adjust.--The Secretary may adjust the 
        percentages specified in paragraph (1) from time to time by 
        increasing or decreasing such percentages as the Secretary 
        considers necessary, based on the performance of mortgages 
        insured under this section and market conditions.
            ``(3) Prohibition of monthly premiums.--A mortgage insured 
        under this section shall not be subject to a monthly insurance 
        premium, including a premium under section 203(c)(2)(B).
    ``(e) Extent of Insurance.--Mortgage insurance under this section 
shall provide insurance of the mortgage in the same amount as would be 
guaranteed under section 3703(a)(1) of title 38, United States Code, 
for a loan guaranteed under chapter 37 of such title having an original 
principal obligation in the same amount as such mortgage.
    ``(f) Procedure Upon Default.--In the event of default in the 
payment of any mortgage insured under this section, such mortgage shall 
be subject to the same requirements, conditions, and procedures 
applicable under this title to mortgages insured under section 203 that 
are in default.
    ``(g) MMIF.--A mortgage insured under this section shall be an 
obligation of the Mutual Mortgage Insurance Fund established under 
section 202(a).
    ``(h) Reauthorization Required.--The authority to enter into new 
commitments to insure mortgages under this section shall expire upon 
the conclusion of the 5-year period beginning on the date of the 
enactment of this section unless otherwise specifically provided by 
law.''.
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