I 117th CONGRESS 2d Session H. R. 9246 IN THE HOUSE OF REPRESENTATIVES October 28, 2022 Mr. Khanna (for himself, Ms. Porter , and Mr. Takano ) introduced the following bill; which was referred to the Committee on Ways and Means , and in addition to the Committee on Financial Services , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Internal Revenue Code of 1986 to disallow the deduction of certain expenses relating to ownership of single-family homes by specified large investors, to impose an excise tax on the sale of such homes by such investors, to establish the neighborhood homes tax credit, and to prohibit Federal mortgage assistance relating to certain large investors.

1. Short title This Act may be cited as the Stop Wall Street Landlords Act of 2022 . 2. Disallowance of deduction of certain expenses related to single-family homes held by specified large investors (a) In general Part IX of subchapter B of Chapter 1 of subtitle A of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: 280I. Certain expenses related to single-family homes held by specified large investors (a) In general In the case of a specified large investor, no deduction shall be allowed under this chapter for the following expenses relating to the ownership of a single-family home: (1) Amounts paid or incurred for the interest on a mortgage relating to such single-family home or to insure such single-family home. (2) Depreciation of such single-family home. (b) Specified large investor For purposes of this section— (1) In general The term specified large investor means any person for any taxable year if the aggregate fair market value of all assets of such person (reduced by the aggregate debts of the taxpayer) exceeds $100,000,000 at any time during such taxable year. (2) Treatment of controlled groups For purposes of this subsection— (A) In general All persons which are part of a controlled group (within the meaning of section 1563(a) applied by substituting more than 50 percent for at least 80 percent each place it appears) shall be treated as 1 person. (B) Nonincorporated persons under common control Under regulations or other guidance provided by the Secretary, principles similar to the principles of subparagraph (A) shall apply to a group of persons under common control where 1 or more of such persons is not a corporation. (3) Government entities and certain tax-exempt entities Such term shall not include either of the following: (A) Any governmental entity. (B) Any organization which is described in section 501(c)(3) and exempt from tax under section 501(a). (c) Single-Family home (1) In general For purposes of this section, the term single-family home means any real property located in the United States if such property includes at least 1 dwelling unit and not more than 4 dwelling units. (2) Exception for federally-assisted buildings For purposes of this section— (A) In general Such term shall not include any federally-assisted building. (B) Federally-assisted building The term federally-assisted building means any building— (C) which is substantially assisted, financed, or operated under section 8 of the United States Housing Act of 1937, section 221(d)(3), 221(d)(4), or 236 of the National Housing Act, section 515 of the Housing Act of 1949, or any other housing program administered by the Department of Housing and Urban Development or by the Rural Housing Service of the Department of Agriculture, (D) with respect to which a credit is allowed to the taxpayer under section 42, or (E) for which financing is provided by a qualified bond (within the meaning of section 141). (d) Exceptions (1) Principal residence In the case of a specified large investor who is an individual, subsection (a) shall not apply to any single-family home if such home is used as the principal residence of such investor. (2) Original construction or substantial rehabilitation Subsection (a) shall not apply with respect to a single-family home originally constructed or substantially rehabilitated (as defined in section 47(c)) by the taxpayer. . (b) Clerical amendment The table of sections for part IX of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 280H the following new item: Sec. 280I. Certain expenses related to single-family homes held by specified large investors. . (c) Effective date The amendments made by this section shall apply to amounts paid or incurred and depreciation that occurs after the date that is 18 months after the date of the enactment of this Act. 3. Excise tax on transfers of single-family homes by specified large investors (a) In general Subchapter C of chapter 36 of subtitle D of the Internal Revenue Code of 1986 is amended to read as follows: C Tax on transfers of single-family homes by specified large investors Sec. 4471. Tax on transfers of single-family homes by specified large investors. 4471. Tax on transfers of single-family homes by specified large investors (a) In general There is hereby imposed a tax on the sale or transfer of a single-family home by a specified large investor in an amount equal to the sale price of the single-family home. (b) Specified large investor; single family home For purposes of this section, the terms specified large investor and single-family home shall have the respective meanings given such terms in section 280I. (c) Special rules Rules similar to the rules of subsections (b)(2), (d)(1), and (d)(2) of 280I shall apply for purposes of this section. . (b) Clerical amendment The table of subchapters for chapter 36 of subtitle D of such Code is amended by adding after the item relating to subchapter B the following new item: Subchapter C. Tax on Transfers of Single-Family Homes by Specified Large Investors. . (c) Effective date The amendments made by this section shall apply to sales and transfers occurring after the date that is 18 months after the date of the enactment of this Act. 4. Neighborhood homes credit (a) In general Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 42 the following new section: 42A. Neighborhood homes credit (a) Allowance of credit For purposes of section 38, the neighborhood homes credit determined under this section for the taxable year is, with respect to each qualified residence sold by the taxpayer during such taxable year in an affordable sale, the lesser of— (1) the excess (if any) of— (A) the reasonable development costs paid or incurred by the taxpayer with respect to such qualified residence, over (B) the sale price of such qualified residence (reduced by any reasonable expenses paid or incurred by the taxpayer in connection with such sale), or (2) 35 percent of the lesser of— (A) the eligible development costs paid or incurred by the taxpayer with respect to such qualified residence, or (B) 80 percent of the national median sale price for new homes (as determined pursuant to the most recent census data available as of the date on which the neighborhood homes credit agency makes an allocation for the qualified project). (b) Development costs For purposes of this section— (1) Reasonable development costs (A) In general The term reasonable development costs means amounts paid or incurred for the acquisition of buildings and land, construction, substantial rehabilitation, demolition of structures, or environmental remediation, to the extent that the neighborhood homes credit agency determines that such amounts meet the standards specified pursuant to subsection (f)(1)(C) (as of the date on which construction or substantial rehabilitation is substantially complete, as determined by such agency) and are necessary to ensure the financial feasibility of such qualified residence. (B) Considerations in making determination In making the determination under subparagraph (A), the neighborhood homes credit agency shall consider— (i) the sources and uses of funds and the total financing, (ii) any proceeds or receipts generated or expected to be generated by reason of tax benefits, and (iii) the reasonableness of the developmental costs and fees. (2) Eligible development costs The term eligible development costs means the amount which would be reasonable development costs if the amounts taken into account as paid or incurred for the acquisition of buildings and land did not exceed 75 percent of such costs determined without regard to any amount paid or incurred for the acquisition of buildings and land. (3) Substantial rehabilitation The term substantial rehabilitation means amounts paid or incurred for rehabilitation of a qualified residence if such amounts exceed the greater of— (A) $20,000, or (B) 20 percent of the amounts paid or incurred by the taxpayer for the acquisition of buildings and land with respect to such qualified residence. (4) Construction and rehabilitation only after allocation taken into account (A) In general The terms reasonable development costs and eligible development costs shall not include any amount paid or incurred before the date on which an allocation is made to the taxpayer under subsection (e) with respect to the qualified project of which the qualified residence is part unless such amount is paid or incurred for the acquisition of buildings or land. (B) Land and building acquisition costs Amounts paid or incurred for the acquisition of buildings or land shall be included under paragraph (A) only if paid or incurred not more than 3 years before the date on which the allocation referred to in subparagraph (A) is made. If the taxpayer acquired any building or land from an entity (or any related party to such entity) that holds an ownership interest in the taxpayer, then such entity must also have acquired such property within such 3-year period, and the acquisition cost included under subparagraph (A) with respect to the taxpayer shall not exceed the amount such entity paid or incurred to acquire such property. (c) Qualified residence For purposes of this section— (1) In general The term qualified residence means a residence that— (A) is real property affixed on a permanent foundation, (B) is— (i) a house which is comprised of 4 or fewer residential units, (ii) a condominium unit, or (iii) a house or an apartment owned by a cooperative housing corporation (as defined in section 216(b)), (C) is part of a qualified project with respect to the neighborhood homes credit agency has made an allocation under subsection (e), and (D) is located in a qualified census tract (determined as of the date of such allocation). (2) Qualified census tract (A) In general The term qualified census tract means a census tract— (i) which— (I) has a median family income which does not exceed 80 percent of the median family income for the applicable area, (II) has a poverty rate that is not less than 130 percent of the poverty rate of the applicable area, and (III) has a median value for owner-occupied homes that does not exceed the median value for owner-occupied homes in the applicable area, (ii) which— (I) is located in a city which has a population of not less than 50,000 and such city has a poverty rate that is not less than 150 percent of the poverty rate of the applicable area, (II) has a median family income which does not exceed the median family income for the applicable area, and (III) has a median value for owner-occupied homes that does not exceed 80 percent of the median value for owner-occupied homes in the applicable area, (iii) which— (I) is located in a nonmetropolitan county, (II) has a median family income which does not exceed the median family income for the applicable area, and (III) has been designated by a neighborhood homes credit agency under this clause, or (iv) which is not otherwise a qualified census tract and is located in a disaster area (as defined in section 7508A(d)(3)), but only with respect to credits allocated in any period during which the President of the United States has determined that such area warrants individual or individual and public assistance by the Federal Government under the Robert T. Stafford Disaster Relief and Emergency Assistance Act. (B) Applicable area The term applicable area means— (i) in the case of a metropolitan census tract, the metropolitan area in which such census tract is located, and (ii) in the case of a census tract other than a census tract described in clause (i), the State. (d) Affordable sale For purposes of this section— (1) In general The term affordable sale means a sale to a qualified homeowner of a qualified residence that the neighborhood homes credit agency certifies as meeting the standards promulgated under subsection (f)(1)(D) for a price that does not exceed— (A) in the case of any qualified residence not described in subparagraph (B), (C), or (D), the amount equal to the product of 4 multiplied by the median family income for the applicable area (as determined pursuant to the most recent census data available as of the date of the contract for such sale), (B) in the case of a house comprised of 2 residential units, 125 percent of the amount described in subparagraph (A), (C) in the case of a house comprised of 3 residential units, 150 percent of the amount described in subparagraph (A), or (D) in the case of a house comprised of 4 residential units, 175 percent of the amount described in subparagraph (A). (2) Qualified homeowner The term qualified homeowner means, with respect to a qualified residence, an individual— (A) who owns and uses such qualified residence as the principal residence of such individual, and (B) whose family income (determined as of the date that a binding contract for the affordable sale of such residence is entered into) is 140 percent or less of the median family income for the applicable area in which the qualified residence is located. (e) Credit ceiling and allocations (1) Credit limited based on allocations to qualified projects (A) In general The credit allowed under subsection (a) to any taxpayer for any taxable year with respect to one or more qualified residences which are part of the same qualified project shall not exceed the excess (if any) of— (i) the amount allocated by the neighborhood homes credit agency under this paragraph to such taxpayer with respect to such qualified project, over (ii) the aggregate amount of credit allowed under subsection (a) to such taxpayer with respect to qualified residences which are a part of such qualified project for all prior taxable years. (B) Deadline for completion No credit shall be allowed under subsection (a) with respect to any qualified residence unless the affordable sale of such residence is during the 5-year period beginning on the date of the allocation to the qualified project of which such residence is a part (or, in the case of a qualified residence to which subsection (i) applies, the rehabilitation of such residence is completed during such 5-year period). (2) Limitations on allocations to qualified projects (A) Allocations limited by State neighborhood homes credit ceiling The aggregate amount allocated to taxpayers with respect to qualified projects by the neighborhood homes credit agency of any State for any calendar year shall not exceed the State neighborhood homes credit amount of such State for such calendar year. (B) Set-aside for certain projects involving qualified nonprofit organizations Rules similar to the rules of section 42(h)(5) shall apply for purposes of this section. (3) Determination of State neighborhood homes credit ceiling (A) In general The State neighborhood homes credit amount for a State for a calendar year is an amount equal to the sum of— (i) the greater of— (I) the product of $3 ($6 in the case of calendar year 2025), multiplied by the State population (determined in accordance with section 146(j)), or (II) $4,000,000 ($8,000,000 in the case of calendar year 2025), and (ii) any amount previously allocated to any taxpayer with respect to any qualified project by the neighborhood homes credit agency of such State which can no longer be allocated to any qualified residence because the 5-year period described in paragraph (1)(B) expires during calendar year. (B) Termination of additional amounts The amount determined under subparagraph (A)(i) shall be zero with respect to any calendar year beginning after December 31, 2025. (C) 3-year carryforward of unused limitation The State neighborhood homes credit amount for a State for a calendar year shall be increased by the excess (if any) of the State neighborhood homes credit amount for such State for the preceding calendar year over the aggregate amount allocated by the neighborhood homes credit agency of such State during such preceding calendar year. Any amount carried forward under the preceding sentence shall not be carried past the third calendar year after the calendar year in which such credit amount originally arose, determined on a first-in, first-out basis. (f) Responsibilities of neighborhood homes credit agencies (1) In general Notwithstanding subsection (e), the State neighborhood homes credit dollar amount shall be zero for a calendar year unless the neighborhood homes credit agency of the State— (A) allocates such amount pursuant to a qualified allocation plan of the neighborhood homes credit agency, (B) allocates not more than 20 percent of amounts allocated in the previous year (or for allocations made in 2022, not more than 20 percent of the neighborhood homes credit ceiling for such year) to projects with respect to qualified residences which— (i) are located in census tracts described in subsection (c)(2)(A)(iii), (c)(2)(A)(iv), (i)(5), or (ii) are not located in a qualified census tract but meet the requirements of (i)(8), (C) promulgates standards with respect to reasonable qualified development costs and fees, (D) promulgates standards with respect to construction quality, (E) in the case of any neighborhood homes credit agency which makes an allocation to a qualified project which includes any qualified residence to which subsection (i) applies, promulgates standards with respect to protecting the owners of such residences, including the capacity of such owners to pay rehabilitation costs not covered by the credit provided by this section and providing for the disclosure to such owners of their rights and responsibilities with respect to the rehabilitation of such residences, and (F) submits to the Secretary (at such time and in such manner as the Secretary may prescribe) an annual report specifying— (i) the amount of the neighborhood homes credits allocated to each qualified project for the previous year, (ii) with respect to each qualified residence completed in the preceding calendar year— (I) the census tract in which such qualified residence is located, (II) with respect to the qualified project that includes such qualified residence, the year in which such project received an allocation under this section, (III) whether such qualified residence was new, substantially rehabilitated and sold to a qualified homeowner, or substantially rehabilitated pursuant to subsection (i), (IV) the eligible development costs of such qualified residence, (V) the amount of the neighborhood homes credit with respect to such qualified residence, (VI) the sales price of such qualified residence, if applicable, and (VII) the family income of the qualified homeowner (expressed as a percentage of the applicable area median family income for the location of the qualified residence), and (iii) such other information as the Secretary may require. (2) Qualified allocation plan For purposes of this subsection, the term qualified allocation plan means any plan which— (A) sets forth the selection criteria to be used to prioritize qualified projects for allocations of State neighborhood homes credit dollar amounts, including— (i) the need for new or substantially rehabilitated owner-occupied homes in the area addressed by the project, (ii) the expected contribution of the project to neighborhood stability and revitalization, including the impact on neighborhood residents, (iii) the capability and prior performance of the project sponsor, and (iv) the likelihood the project will result in long-term homeownership, (B) has been made available for public comment, and (C) provides a procedure that the neighborhood homes credit agency (or any agent or contractor of such agency) shall follow for purposes of— (i) identifying noncompliance with any provisions of this section, and (ii) notifying the Internal Revenue Service of any such noncompliance of which the agency becomes aware. (g) Repayment (1) In general (A) Sold during 5-year period If a qualified residence is sold during the 5-year period beginning immediately after the affordable sale of such qualified residence referred to in subsection (a), the seller (with respect to the sale during such 5-year period) shall transfer an amount equal to the repayment amount to the relevant neighborhood homes credit agency. (B) Use of repayments A neighborhood homes credit agency shall use any amount received pursuant to subparagraph (A) only for purposes of qualified projects. (2) Repayment amount For purposes of paragraph (1)(A), the repayment amount is an amount equal to 50 percent of the gain from the sale to which the repayment relates, reduced by 20 percent for each year of the 5-year period referred to in paragraph (1)(A) which ends before the date of such sale. (3) Lien for repayment amount A neighborhood homes credit agency receiving an allocation under this section shall place a lien on each qualified residence that is built or rehabilitated as part of a qualified project for an amount such agency deems necessary to ensure potential repayment pursuant to paragraph (1)(A). (4) Denial of deductions if converted to rental housing If, during the 5-year period described in paragraph (1), an individual who owns a qualified residence fails to use such qualified residence as such individual’s principal residence for any period of time, no deduction shall be allowed for expenses paid or incurred by such individual with respect to renting, during such period of time, such qualified residence. (5) Waiver The neighborhood homes credit agency may waive the repayment required under paragraph (1)(A) in the case of homeowner experiencing a hardship. (h) Other definitions and special rules For purposes of this section— (1) Neighborhood homes credit agency The term neighborhood homes credit agency means the agency designated by the governor of a State as the neighborhood homes credit agency of the State. (2) Qualified project The term qualified project means a project that a neighborhood homes credit agency certifies will build or substantially rehabilitate one or more qualified residences. (3) Determinations of family income Rules similar to the rules of section 143(f)(2) shall apply for purposes of this section. (4) Possessions treated as states The term State includes the District of Columbia and the possessions of the United States. (5) Special rules related to condominiums and cooperative housing corporations (A) Determination of development costs In the case of a qualified residence described in clause (ii) or (iii) of subsection (c)(1)(A), the reasonable development costs and eligible development costs of such qualified residence shall be an amount equal to such costs, respectively, of the entire condominium or cooperative housing property in which such qualified residence is located, multiplied by a fraction— (i) the numerator of which is the total floor space of such qualified residence, and (ii) the denominator of which is the total floor space of all residences within such property. (B) Tenant-stockholders of cooperative housing corporations treated as owners In the case of a cooperative housing corporation (as such term is defined in section 216(b)), a tenant-stockholder shall be treated as owning the house or apartment which such person is entitled to occupy. (6) Related party sales not treated as affordable sales (A) In general A sale between related persons shall not be treated as an affordable sale. (B) Related persons For purposes of this paragraph, a person (in this subparagraph referred to as the related person ) is related to any person if the related person bears a relationship to such person specified in section 267(b) or 707(b)(1), or the related person and such person are engaged in trades or businesses under common control (within the meaning of subsections (a) and (b) of section 52). For purposes of the preceding sentence, in applying section 267(b) or 707(b)(1), 10 percent shall be substituted for 50 percent . (7) Inflation adjustment (A) In general In the case of a calendar year after 2022, the dollar amounts in subsections (b)(3)(A), (e)(3)(A)(i)(I), (e)(3)(A)(i)(II), and (i)(2)(C) shall each be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting calendar year 2021 for calendar year 2016 in subparagraph (A)(ii) thereof. (B) Rounding (i) In the case of the dollar amounts in subsection (b)(3)(A) and (i)(2)(C), any increase under paragraph (1) which is not a multiple of $1,000 shall be rounded to the nearest multiple of $1,000. (ii) In the case of the dollar amount in subsection (e)(3)(A)(i)(I), any increase under paragraph (1) which is not a multiple of $0.01 shall be rounded to the nearest multiple of $0.01. (iii) In the case of the dollar amount in subsection (e)(3)(A)(i)(II), any increase under paragraph (1) which is not a multiple of $100,000 shall be rounded to the nearest multiple of $100,000. (8) Report (A) In general The Secretary shall annually issue a report, to be made available to the public, which contains the information submitted pursuant to subsection (f)(1)(F). (B) De-identification The Secretary shall ensure that any information made public pursuant to paragraph (1) excludes any information that would allow for the identification of qualified homeowners. (9) List of qualified census tracts The Secretary of Housing and Urban Development shall, for each year, make publicly available a list of qualified census tracts under— (A) on a combined basis, clauses (i) and (ii) of subsection (c)(2)(A), (B) clause (iii) of such subsection, and (C) subsection (i)(5)(A). (i) Application of credit with respect to owner-Occupied rehabilitations (1) In general In the case of a qualified rehabilitation by the taxpayer of any qualified residence which is owned (as of the date that the written binding contract referred to in paragraph (3) is entered into) by a specified homeowner, the rules of paragraphs (2) through (7) shall apply. (2) Alternative credit determination In the case of any qualified residence described in paragraph (1), the neighborhood homes credit determined under subsection (a) with respect to such residence shall (in lieu of any credit otherwise determined under subsection (a) with respect to such residence) be allowed in the taxable year during which the qualified rehabilitation is completed (as determined by the neighborhood homes credit agency) and shall be equal to the least of— (A) the excess (if any) of— (i) the amounts paid or incurred by the taxpayer for the qualified rehabilitation of the qualified residence to the extent that such amounts are certified by the neighborhood homes credit agency (at the time of the completion of such rehabilitation) as meeting the standards specified pursuant to subsection (f)(1)(C), over (ii) any amounts paid to such taxpayer for such rehabilitation, (B) 50 percent of the amounts described in subparagraph (A)(i), or (C) $50,000. (3) Qualified rehabilitation (A) In general For purposes of this subsection, the term qualified rehabilitation means a rehabilitation or reconstruction performed pursuant to a written binding contract between the taxpayer and the qualified homeowner if the amount paid or incurred by the taxpayer in the performance of such rehabilitation or reconstruction exceeds the dollar amount in effect under subsection (b)(3)(A). (B) Application of limitation to expenses paid or incurred after allocation A rule similar to the rule of section (b)(4) shall apply for purposes of this subsection. (4) Specified homeowner For purposes of this subsection, the term qualified homeowner means, with respect to a qualified residence, an individual— (A) who owns and uses such qualified residence as the principal residence of such individual as of the date that the written binding contract referred to in paragraph (3) is entered into, and (B) whose family income (determined as of such date) does not exceed the median family income for the applicable area (with respect to the census tract in which the qualified residence is located). (5) Additional census tracts in which owner-occupied residences may be located In the case of any qualified residence described in paragraph (1), the term qualified census tract includes any census tract which— (A) meets the requirements of subsection (c)(2)(A)(i) without regard to subclause (III) thereof, and (B) is designated by the neighborhood homes credit agency for purposes of this paragraph. (6) Modification of repayment requirement In the case of any qualified residence described in paragraph (1), subsection (g) shall be applied by beginning the 5-year period otherwise described therein on the date on which the qualified owner acquired the residence. (7) Related parties Paragraph (1) shall not apply if the taxpayer is the owner of the qualified residence described in paragraph (1) or is related (within the meaning of subsection (h)(6)(B)) to such owner. (8) Pyrrhotite remediation The requirement of subsection (c)(1)(C) shall not apply to a qualified rehabilitation under this subsection of a qualified residence that is documented by an engineer’s report and core testing to have a foundation that is adversely impacted by pyrrhotite or other iron sulfide minerals. (j) Regulations The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section, including regulations that prevent avoidance of the rules, and abuse of the purposes, of this section. . (b) Credit allowed as part of general business credit Section 38(b) is amended by striking plus at the end of paragraph (39), by striking the period at the end of paragraph (40) and inserting , plus , and by adding at the end the following new paragraph: (41) the neighborhood homes credit determined under section 42A(a), . (c) Credit allowed against alternative minimum tax Section 38(c)(4)(B), as amended by the preceding provisions of this Act, is amended by redesginating clauses (iv) through (xiii) as clauses (v) through (xiv), respectively, and by inserting after clause (iii) the following new clause: (iv) the credit determined under section 42A, . (d) Conforming amendments (1) Subsections (i)(3)(C), (i)(6)(B)(i), and (k)(1) of section 469 are each amended by inserting or 42A after section 42 . (2) The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 42 the following new item: Sec. 42A. Neighborhood homes credit. . (e) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 5. Prohibitions on federal mortgage assistance (a) Fannie Mae and Freddie Mac Subpart A of part 2 of subtitle A of title XIII of the Housing and Community Development Act of 1992 ( 12 U.S.C. 4541 et seq. ) is amended by adding at the end the following new section: 1329. Prohibition relating to specified large investors The Director shall, by regulation, prohibit the enterprises from newly purchasing any mortgage on a single family housing or any portion thereof (or any interest in such a mortgage), and from newly lending on the security of or securitizing any such mortgage under which the mortgagee is a specified large investor (as such term is defined in section 280I of the Internal Revenue Code of 1986). . (b) Ginnie Mae Section 302(c) of the National Housing Act ( 12 U.S.C. 1717(c) ) is amended by adding at the end the following new paragraph: (6) The Association may not newly guarantee the payment of principal of or interest on any trust certificate or other security based or backed by a trust or pool that contains, or purchase or acquire, any mortgage under which the mortgagee is a specified large investor (as such term is defined in section 280I of the Internal Revenue Code of 1986). .