View all text of Subchapter II [§ 1707 - § 1715z-25]
§ 1715z–22. Multifamily mortgage credit programs
(a) In general
(b) Risk-sharing program
(1) In general
(2) Program requirements
(A) In general
(B) Mortgage insurance and reinsurance
(C) Risk apportionment
(D) Reimbursement capacityAgreements entered into under this subsection between the Secretary and a qualified participating entity shall provide evidence acceptable to the Secretary of the capacity of such entity to fulfill any reimbursement obligations made pursuant to this subsection. Evidence of such capacity which may be considered by the Secretary may include—
(i) a pledge of the full faith and credit of a qualified participating entity to fulfill any obligations entered into by the entity;
(ii) reserves pledged or otherwise restricted by the qualified participating entity in an amount equal to an agreed upon percentage of the loss assumed by the entity under subparagraph (C);
(iii) funds pledged through a State or local guarantee fund; or
(iv) any other form of evidence mutually agreed upon by the Secretary and the qualified participating entity.
(E) Underwriting standards
(F) Authority of Secretary
(G) Disclosure of records
(3) Development of alternativesThe Secretary shall develop and assess a variety of risk-sharing alternatives, including arrangements under which the Secretary assumes an appropriate share of the risk related to long-term mortgage loans on newly constructed or acquired multifamily rental housing, mortgage refinancings, bridge financing for construction, and other forms of multifamily housing mortgage lending that the Secretary deems appropriate to carry out the purposes of this subsection. Such alternatives shall be designed—
(A) to ensure that other parties bear a share of the risk, in percentage amount and in position of exposure, that is sufficient to create strong, market-oriented incentives for other participating parties to maintain sound underwriting and loan management practices;
(B) to develop credit mechanisms, including sound underwriting criteria, processing methods, and credit enhancements, through which resources of the Federal Housing Administration can assist in increasing multifamily housing lending as needed to meet the expected need in the United States;
(C) to provide a more adequate supply of mortgage credit for sound multifamily rental housing projects in underserved urban and rural markets;
(D) to encourage major financial institutions to expand their participation in mortgage lending for sound multifamily housing, through means such as mitigating uncertainties regarding actions of the Federal Government (including the possible failure to renew short-term subsidy contracts);
(E) to increase the efficiency, and lower the costs to the Federal Government, of processing and servicing multifamily housing mortgage loans insured by the Federal Housing Administration; and
(F) to improve the quality and expertise of Federal Housing Administration staff and other resources, as required for sound management of reinsurance and other market-oriented forms of credit enhancement.
(4) Eligibility standards
(5) Insurance authority
(6) Fees
(7) Non-Federal participation
(8) Prohibition on Ginnie Mae securitization
(9) Qualification as affordable housing
(10) Certification of subsidy layering compliance
(11) Implementation
(c) Housing finance agency program
(1) In general
(2) Program requirements
(A) In general
(B) Mortgage insurance
(C) Risk apportionment
(D) Reimbursement capacityAgreements entered into under this subsection between the Secretary and a qualified housing finance agency shall provide evidence of the capacity of such agency to fulfill any reimbursement obligations made pursuant to this subsection. Evidence of such capacity may include—
(i) a pledge of the full faith and credit of a qualified State or local agency to fulfill any obligations entered into by the qualified housing finance agency;
(ii) reserves pledged or otherwise restricted by the qualified housing finance agency in an amount equal to an agreed upon percentage of the loss assumed by the housing finance agency under subparagraph (C);
(iii) funds pledged through a State or local guarantee fund; or
(iv) any other form of evidence mutually agreed upon by the Secretary and the qualified housing finance agency.
(E) Underwriting standards
(F) Disclosure of records
(3) Mortgage insurance premiums
(4) Insurance authority
(5) Identity of interest
(6) Prohibition on Ginnie Mae securitization
(7) Qualification as affordable housing
(8) Regulations
(9) Environmental and other reviews
(A) Environmental reviews
(i) In general(I) In order to assure that the policies of the National Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] and other provisions of law which further the purposes of such Act (as specified in regulations issued by the Secretary) are most effectively implemented in connection with the insurance of mortgages under subsection (c)(2), and to assure to the public undiminished protection of the environment, the Secretary may, under such regulations, in lieu of the environmental protection procedures otherwise applicable, provide for agreements to endorse for insurance mortgages under subsection (c)(2) upon the request of qualified housing finance agencies under this subsection, if the State or unit of general local government, as designated by the Secretary in accordance with regulations, assumes all of the responsibilities for environmental review, decisionmaking, and action pursuant to such Act, and such other provisions of law as the regulations of the Secretary may specify, that would otherwise apply to the Secretary with respect to the insurance of mortgages on particular properties.(II) The Secretary shall issue regulations to carry out this subparagraph only after consultation with the Council on Environmental Quality. Such regulations shall, among other matters, provide—(aa) for the monitoring of the performance of environmental reviews under this subparagraph;(bb) subject to the discretion of the Secretary, for the provision or facilitation of training for such performance; and(cc) subject to the discretion of the Secretary, for the suspension or termination by the Secretary of the qualified housing finance agency’s responsibilities under subclause (I).(III) The Secretary’s duty under subclause (II) shall not be construed to limit any responsibility assumed by a State or unit of general local government with respect to any particular property under subclause (I).
(ii) Procedure
(iii) CertificationA certification under the procedures authorized by this paragraph shall—(I) be in a form acceptable to the Secretary;(II) be executed by the chief executive officer or other officer of the State or unit of general local government who qualifies under regulations of the Secretary;(III) specify that the State or unit of general local government under this section has fully carried out its responsibilities as described under clause (i); and(IV) specify that the certifying officer consents to assume the status of a responsible Federal official under the National Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] and under each provision of law specified in regulations issued by the Secretary insofar as the provisions of such Act or such other provisions of law apply pursuant to clause (i), and is authorized and consents on behalf of the State or unit of general local government and himself or herself to accept the jurisdiction of the Federal courts for the purpose of enforcement of the responsibilities as such an official.
(iv) Approval by States
(B) Lead-based paint poisoning prevention
(C) Certification of subsidy layering compliance
(10) DefinitionsFor purposes of this subsection, the following definitions shall apply:
(A) MortgageThe term “mortgage” means a first mortgage on real estate that is—
(i) owned in fee simple; or
(ii) subject to a leasehold interest that—(I) has a term of not less than 99 years and is renewable; or(II) has a remaining term that extends beyond the maturity of the mortgage for a period of not less than 10 years.
(B) First mortgage
(C) Unit of general local government; State
(Pub. L. 102–550, title V, § 542, Oct. 28, 1992, 106 Stat. 3794; Pub. L. 103–233, title III, § 307(a), (b), Apr. 11, 1994, 108 Stat. 373, 376; Pub. L. 104–120, § 8, Mar. 28, 1996, 110 Stat. 836; Pub. L. 104–134, title I, § 101(e) [title II, § 205], Apr. 26, 1996, 110 Stat. 1321–257, 1321–284; renumbered title I, Pub. L. 104–140, § 1(a), May 2, 1996, 110 Stat. 1327; Pub. L. 105–18, title II, § 10003, June 12, 1997, 111 Stat. 201; Pub. L. 105–276, title II, § 211, Oct. 21, 1998, 112 Stat. 2486; Pub. L. 106–74, title II, § 226, as added Pub. L. 106–113, div. A, title I, § 175(d), Nov. 29, 1999, 113 Stat. 1534; Pub. L. 106–377, § 1(a)(1) [title II, § 235], Oct. 27, 2000, 114 Stat. 1441, 1441A–35.)