I 117th CONGRESS 1st Session H. R. 5915 IN THE HOUSE OF REPRESENTATIVES November 9, 2021 Mr. Aguilar (for himself and Mr. Amodei ) introduced the following bill; which was referred to the Committee on Financial Services A BILL To increase the principal obligation limits for mortgage insurance under the National Housing Act for residences in eligible metropolitan cities and urban counties, and for other purposes.

1. Short title This Act may be cited as the FHA Fairness Act . 2. FHA Principal obligation limits for residences in eligible cities and counties (a) In general Section 203(b) of the National Housing Act ( 12 U.S.C. 1709 ) is amended— (1) by striking paragraph (2) and inserting the following: (2) Involve a principal obligation (including such initial service charges, appraisal, inspection, and other fees as the Secretary shall approve) in an amount— (A) not to exceed the lesser of— (i) in the case of a 1-family residence, the greater of 115 percent of the median 1-family house price in the area, as determined by the Secretary, or, in the case of a residence located in an eligible city or county, 125 percent of the median 1-family house price in the eligible city or county, as determined by the Secretary; and, in the case of a 2-, 3-, or 4-family residence, the greater of the percentage of such median price that bears the same ratio to such median price as the dollar amount limitation determined under the sixth sentence of section 1454(a)(2) of this title for a 2-, 3-, or 4-family residence, respectively, bears to the dollar amount limitation determined under such section for a 1-family residence as determined by the Secretary, or, the 125 percent of the median 2-, 3-, or 4-family house price, as applicable, in the eligible city or county in which the residence is located, as defined by the Secretary; or (ii) 150 percent of the dollar amount limitation determined under the sixth sentence of such section 1454(a)(2) for a residence of applicable size; except that the dollar amount limitation in effect under this subparagraph for any size residence for any area may not be less than the greater of— (I) the dollar amount limitation in effect under this section for the area on October 21, 1998; or (II) 65 percent of the dollar amount limitation determined under the sixth sentence of such section 1454(a)(2) for a residence of the applicable size; and (B) not to exceed 100 percent of the appraised value of the property. For purposes of the preceding sentence, the term area means a metropolitan statistical area as established by the Office of Management and Budget; and the median 1-family house price for an area shall be equal to the median 1-family house price of the county within the area that has the highest such median price. Notwithstanding any other provision of this paragraph, the amount which may be insured under this section may be increased by up to 20 percent if such increase is necessary to account for the increased cost of the residence due to the installation of a solar energy system (as defined in subparagraph (3) of the last paragraph of section 2(a) of this Act) therein. Notwithstanding any other provision of this paragraph, the Secretary may not insure, or enter into a commitment to insure, a mortgage under this section that is executed by a first-time homebuyer and that involves a principal obligation (including such initial service charges, appraisal, inspection, and other fees as the Secretary shall approve) in excess of 97 percent of the appraised value of the property unless the mortgagor has completed a program of counseling with respect to the responsibilities and financial management involved in homeownership that is approved by the Secretary; except that the Secretary may, in the discretion of the Secretary, waive the applicability of this requirement. ; and (2) by adding at the end the following: (10) Definitions For the purposes of this subsection: (A) Eligible city or county The term eligible city or county means a metropolitan city or urban county (as such terms are defined in section 102 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5302 )) that has a median 1-family home price that exceeds 115 percent of the median 1-family home price for the area within which such city or county is located and is located in an area that, as determined by the Secretary, experienced a decrease in maximum principal obligation amount under this paragraph for 1-family residences equal to or in excess of 20 percent between January 1, 2013, and January 1, 2014. (B) Area The term area means a metropolitan statistical area as established by the Office of Management and Budget. . 3. Effective date The amendment made by this Act shall apply only to mortgages with respect to which the Commissioner assigns a case number on or after January 1, 2023.