Housing Affordability for Teachers and Public Safety Officers Act of 2005 - Amends the National Housing Act to provide for one percent downpayments (and deferral and reduction of up-front payments) for Federal Housing Administration (FHA) mortgage loans for qualified elementary and secondary school teachers, teacher assistants, and administrators and public safety officers (as defined by the Omnibus Crime Control and Safe Streets Act of 1968) to purchase homes within the jurisdictions of their employing agencies. Authorizes program suspension for fraud or program integrity issues. Limits aggregate mortgages insured under such program to 50,000.
Directs the Secretary of Housing and Urban Development to carry out a mortgage assistance pilot program to assist federal, state, and local public safety officers purchase primary residences in locally-designated at-risk areas. Authorizes program suspension for fraud or program integrity issues. Prohibits application approvals after the expiration of the three-year period beginning on the date that the Secretary first makes program assistance available.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3556 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 3556
To authorize the Secretary of Housing and Urban Development to carry
out pilot programs to insure low-downpayment mortgages to enable
teachers and public safety officers to purchase homes in the
jurisdictions they serve and to assist Federal, State, and local public
safety officers purchasing homes in locally-designated at-risk areas.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 28, 2005
Ms. Harris introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To authorize the Secretary of Housing and Urban Development to carry
out pilot programs to insure low-downpayment mortgages to enable
teachers and public safety officers to purchase homes in the
jurisdictions they serve and to assist Federal, State, and local public
safety officers purchasing homes in locally-designated at-risk areas.
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 ``Housing Affordability for Teachers
and Public Safety Officers Act of 2005''.
SEC. 2. PILOT PROGRAM FOR REDUCED FHA DOWNPAYMENT REQUIREMENTS FOR
LOANS FOR TEACHERS AND PUBLIC SAFETY OFFICERS.
(a) In General.--Section 203(b) of the National Housing Act (12
U.S.C. 1709(b)) is amended by adding at the end the following new
paragraph:
``(10) Reduced downpayment requirements for teachers and
public safety officers.--
``(A) In general.--Notwithstanding paragraph (2),
in the case of a mortgage described in subparagraph
(B)--
``(i) the mortgage shall involve a
principal obligation in an amount that does not
exceed the sum of 99 percent of the appraised
value of the property and the total amount of
initial service charges, appraisal, inspection,
and other fees (as the Secretary shall approve)
paid in connection with the mortgage;
``(ii) no other provision of this
subsection limiting the principal obligation of
the mortgage based upon a percentage of the
appraised value of the property subject to the
mortgage shall apply; and
``(iii) the matter in paragraph (9) that
precedes the first proviso shall not apply and
the mortgage shall be executed by a mortgagor
who shall have paid on account of the property
at least 1 percent of the cost of acquisition
(as determined by the Secretary) in cash or its
equivalent.
``(B) Mortgages covered.--A mortgage described in
this subparagraph is a mortgage--
``(i) under which the mortgagor is an
individual who--
``(I) is (aa) a teacher, or (bb) a
public safety officer; and
``(II) has not, during the 12-month
period ending upon the insurance of the
mortgage, had any present ownership
interest in a principal residence
located in the jurisdiction described
in clause (ii); and
``(ii) made for a property that is located
within the jurisdiction of--
``(I) in the case of a mortgage of
a mortgagor described in clause
(i)(I)(aa), the local educational
agency for the school in which the
mortgagor is employed (or, in the case
of a mortgagor employed in a private
school, the local educational agency
having jurisdiction for the area in
which the private school is located);
or
``(II) in the case of a mortgage of
a mortgagor described in clause
(i)(I)(bb), the jurisdiction served by
the public law enforcement agency,
firefighting agency, or rescue or
ambulance agency that employs the
mortgagor.
``(C) Program integrity.--Notwithstanding any other
provision of this paragraph and section 203(c)(3), the
Secretary may suspend the applicability of this
paragraph and such section for such period as the
Secretary considers appropriate if the Secretary
determines such suspension is necessary because of
fraud or other issues regarding program integrity.
``(D) Pilot program limitations.--
``(i) Annual.--In any fiscal year, the
aggregate number of mortgages insured under
this paragraph may not exceed 10 percent of the
aggregate number of mortgages and loans insured
by the Secretary under this title during the
preceding fiscal year.
``(ii) Term of program.--The aggregate
number or mortgages insured under this
paragraph may not exceed 50,000.''.
(b) Deferral and Reduction of Up-Front Premium.--Section 203(c) of
the National Housing Act (12 U.S.C. 1709(c)) is amended--
(1) in paragraph (2), in the matter preceding subparagraph
(A), by striking ``Notwithstanding'' and inserting ``Except as
provided in paragraph (3) and notwithstanding''; and
(2) by adding at the end the following new paragraph:
``(3) Deferral and reduction of up-front premium.--In the
case of any mortgage described in subsection (b)(10)(B)--
``(A) paragraph (2)(A) of this subsection (relating
to collection of up-front premium payments) shall not
apply; and
``(B) if, at any time during the 5-year period
beginning on the date of the insurance of the mortgage,
the mortgagor ceases to be a teacher or public safety
officer (as such terms are defined in section 201) or
pays the principal obligation of the mortgage in full,
the Secretary shall at such time collect a single
premium payment in an amount equal to the amount of the
single premium payment that, but for this paragraph,
would have been required under paragraph (2)(A) of this
subsection with respect to the mortgage, as reduced by
20 percent of such amount for each successive 12-month
period completed during such 5-year period before such
cessation or prepayment occurs.''.
(c) Definitions.--Section 201 of the National Housing Act (12
U.S.C. 1707) is amended--
(1) in subsection (a), by redesignating clauses (1) and (2)
as clauses (A) and (B), respectively;
(2) by redesignating subsections (a) through (f) as
paragraphs (1) through (6), respectively;
(3) by realigning each such paragraph 2 ems from the left
margin; and
(4) by adding at the end the following new paragraphs:
``(7) The term `public safety officer' has the meaning
given such term in section 1204 of the Omnibus Crime Control
and Safe Streets Act of 1968 (42 U.S.C. 3796b).
``(8) The term `teacher' means an individual who is
employed on a part- or full-time basis as a teacher, teacher
assistant, or administrator in a public or private school that
provides elementary or secondary education, as determined under
State law, except that elementary education shall include pre-
Kindergarten education, and except that secondary education
shall not include any education beyond grade 12.
``(9) The term `local educational agency' has the meaning
given such term in section 14101 of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 8801).''.
(d) Regulations.--Not later than 60 days after the date of the
enactment of this Act, the Secretary shall issue regulations to
implement the amendments made by this section.
SEC. 3. PILOT PROGRAM FOR PUBLIC SAFETY OFFICER HOME OWNERSHIP IN AT-
RISK AREAS.
(a) Program Authority.--The Secretary of Housing and Urban
Development shall carry out a pilot program in accordance with this
section to assist Federal, State, and local public safety officers
purchasing homes in locally-designated at-risk areas.
(b) Eligibility.--To be eligible for assistance under this section,
a public safety officer shall agree, in writing, to use the residence
purchased with such assistance as the primary residence of the public
safety officer for not less than 3 years after the date of purchase.
(c) Mortgage Assistance.--If a public safety officer purchases a
home in locally-designated at-risk area and finances such purchase
through a mortgage insured under title II of the National Housing Act
(12 U.S.C. 1707 et seq.), notwithstanding any provision of section 203
or any other provision of the National Housing Act, the following shall
apply:
(1) Downpayment.--
(A) In general.--There shall be no downpayment
required if the purchase price of the property is not
more than the reasonable value of the property, as
determined by the Secretary.
(B) Purchase price exceeds value.--If the purchase
price of the property exceeds the reasonable value of
the property, as determined by the Secretary, the
required downpayment shall be the difference between
such reasonable value and the purchase price.
(2) Closing costs.--The closing costs and origination fee
for such mortgage may be included in the loan amount.
(3) Insurance premium payment.--There shall be one
insurance premium payment due on the mortgage. Such insurance
premium payment--
(A) shall be equal to 1 percent of the loan amount;
(B) shall be due and considered earned by the
Secretary at the time of the loan closing; and
(C) may be included in the loan amount and paid
from the loan proceeds.
(d) Local Designation of at-Risk Areas.--
(1) Criteria.--Any unit of local government may request
that the Secretary designate any area within the jurisdiction
of that unit of local government as a locally-designated at-
risk area for purposes of this section if the proposed area--
(A) has a crime rate that is significantly higher
than the crime rate of the non-designated area that is
within the jurisdiction of the unit of local
government; and
(B) has a population that is not more than 25
percent of the total population of area within the
jurisdiction of the unit of local government.
(2) Deadline for consideration of request.--Not later than
60 days after receiving a request under paragraph (1), the
Secretary shall approve or disapprove the request.
(e) Public Safety Officer.--For purposes of this section, the term
``public safety officer'' has the meaning given such term in section
201 of the National Housing Act (12 U.S.C. 1707) (as amended by section
2(c) of this Act).
(f) Program Integrity.--Notwithstanding any other provision of this
section, the Secretary may suspend the applicability of this section
for such period as the Secretary considers appropriate if the Secretary
determines such suspension is necessary because of fraud or other
issues regarding program integrity.
(g) Regulations.--Not later than 60 days after the date of the
enactment of this Act, the Secretary shall issue regulations to
implement the provisions of this section.
(h) Sunset.--The Secretary shall not approve any application for
assistance under this section that is received by the Secretary after
the expiration of the 3-year period beginning on the date that the
Secretary first makes available assistance under the pilot program
under this section.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Referred to the Subcommittee on Housing and Community Opportunity.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line