12 U.S.C. § 4567 — Affordable housing allocations

Page 1675 TITLE 12—BANKS AND BANKING § 4567 may issue a cease and desist order in accord- ance with section 4581 of this title, impose civil money penalties in accordance with sec- tion 4585 of this title, exercise other appro- priate enforcement authority or seek other ap- propriate actions. (Pub. L. 102–550, title XIII, § 1336, Oct. 28, 1992, 106 Stat. 3962; Pub. L. 110–289, div. A, title I, §§ 1122(a)(1), 1128(c)(2), 1129(b), (c), 1130(a), July 30, 2008, 122 Stat. 2689, 2702, 2705, 2706.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (a)(4) and (c)(4), was in the original ‘‘this title’’, meaning title XIII of Pub. L. 102–550, Oct. 28, 1992, 106 Stat. 3941, which is classified principally to this chapter. For complete classification of title XIII to the Code, see Short Title note set out under section 4501 of this title and Tables. The Federal National Mortgage Association Charter Act, referred to in subsecs. (a)(4) and (c)(4), is title III of act June 27, 1934, ch. 847, 48 Stat. 1252, which is clas- sified generally to subchapter III (§ 1716 et seq.) of chap- ter 13 of this title. For complete classification of this Act to the Code, see Short Title note set out under sec- tion 1716 of this title and Tables. The Federal Home Loan Mortgage Corporation Act, referred to in subsecs. (a)(4) and (c)(4), is title III of Pub. L. 91–351, July 24, 1970, 84 Stat. 451, which is classi- fied generally to chapter 11A (§ 1451 et seq.) of this title. For complete classification of this Act to the Code, see Short Title and Statement of Purpose note set out under section 1451 of this title and Tables. AMENDMENTS 2008—Subsec. (a). Pub. L. 110–289, § 1122(a)(1), sub- stituted ‘‘Director’’ for ‘‘Secretary’’ wherever appear- ing in pars. (1) to (3). Subsec. (a)(1). Pub. L. 110–289, § 1129(b)(1), inserted ‘‘and with the duty under section 4565(a) of this title of each enterprise with respect to underserved markets,’’ before ‘‘as provided in this section’’. Pub. L. 110–289, § 1128(c)(2), substituted ‘‘this subpart’’ for ‘‘sections 4562, 4563, and 4564 of this title,’’. Subsec. (a)(2). Pub. L. 110–289, § 1129(c)(1), inserted ‘‘, except as provided in paragraph (5),’’ before ‘‘may assign’’. Subsec. (a)(4). Pub. L. 110–289, § 1129(b)(2), added par. (4). Subsec. (a)(5). Pub. L. 110–289, § 1129(c)(2), added par. (5). Subsecs. (b), (c). Pub. L. 110–289, § 1130(a), added sub- secs. (b) and (c) and struck out former subsecs. (b) and (c) which related to notice and determination of failure to meet housing goals and submission of housing plans, respectively. § 4567. Affordable housing allocations (a) Set aside and allocation of amounts by enter- prises Subject to subsection (b), in each fiscal year— (1) the Federal Home Loan Mortgage Cor- poration shall— (A) set aside an amount equal to 4.2 basis points for each dollar of the unpaid principal balance of its total new business purchases; and (B) allocate or otherwise transfer— (i) 65 percent of such amounts to the Sec- retary of Housing and Urban Development to fund the Housing Trust Fund estab- lished under section 4568 of this title; and (ii) 35 percent of such amounts to fund the Capital Magnet Fund established pur- suant to section 4569 of this title; and (2) the Federal National Mortgage Associa- tion shall— (A) set aside an amount equal to 4.2 basis points for each dollar of unpaid principal balance of its total new business purchases; and (B) allocate or otherwise transfer— (i) 65 percent of such amounts to the Sec- retary of Housing and Urban Development to fund the Housing Trust Fund estab- lished under section 4568 of this title; and (ii) 35 percent of such amounts to fund the Capital Magnet Fund established pur- suant to section 4569 of this title. (b) Suspension of contributions The Director shall temporarily suspend alloca- tions under subsection (a) by an enterprise upon a finding by the Director that such allocations— (1) are contributing, or would contribute, to the financial instability of the enterprise; (2) are causing, or would cause, the enter- prise to be classified as undercapitalized; or (3) are preventing, or would prevent, the en- terprise from successfully completing a cap- ital restoration plan under section 4622 of this title. (c) Prohibition of pass-through of cost of alloca- tions The Director shall, by regulation, prohibit each enterprise from redirecting the costs of any allocation required under this section, through increased charges or fees, or decreased pre- miums, or in any other manner, to the origina- tors of mortgages purchased or securitized by the enterprise. (d) Enforcement of requirements on enterprise Compliance by the enterprises with the re- quirements under this section shall be enforce- able under subpart 3. Any reference in such sub- part to this part or to an order, rule, or regula- tion under this part specifically includes this section and any order, rule, or regulation under this section. (e) Required amount for HOPE reserve fund Of the aggregate amount allocated under sub- section (a), 25 percent shall be deposited into a fund established in the Treasury of the United States by the Secretary of the Treasury for such purpose. (f) Limitation No funds under this chapter may be used in conjunction with property taken by eminent do- main, unless eminent domain is employed only for a public use, except that, for purposes of this section, public use shall not be construed to in- clude economic development that primarily ben- efits any private entity. (Pub. L. 102–550, title XIII, § 1337, as added Pub. L. 110–289, div. A, title I, § 1131(b), July 30, 2008, 122 Stat. 2711.) Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsec. (f), was in the original ‘‘this title’’, meaning title XIII of Pub. L. 102–550, Oct. 28, 1992, 106 Stat. 3941, which is classified principally to this chapter. For complete classification Page 1676 TITLE 12—BANKS AND BANKING § 4568 of title XIII to the Code, see Short Title note set out under section 4501 of this title and Tables. PRIOR PROVISIONS A prior section 4567, Pub. L. 102–550, title XIII, § 1337, Oct. 28, 1992, 106 Stat. 3964, related to reports during transition, prior to repeal by Pub. L. 110–289, div. A, title I, § 1131(a), July 30, 2008, 122 Stat. 2711. § 4568. Housing Trust Fund (a) Establishment and purpose (1) In general The Secretary of Housing and Urban Devel- opment (in this section referred to as the ‘‘Secretary’’) shall establish and manage a Housing Trust Fund, which shall be funded with amounts allocated by the enterprises under section 4567 of this title and any amounts as are or may be appropriated, trans- ferred, or credited to such Housing Trust Fund under any other provisions of law. The purpose of the Housing Trust Fund under this section is to provide grants to States (as such term is defined in section 4502 of this title) for use— (A) to increase and preserve the supply of rental housing for extremely low- and very low-income families, including homeless families; and (B) to increase homeownership for ex- tremely low- and very low-income families. (2) Federal assistance For purposes of the application of Federal civil rights laws, all assistance provided from the Housing Trust Fund shall be considered Federal financial assistance. (b) Allocations for HOPE bond payments (1) In general Notwithstanding subsection (c), to help ad- dress the mortgage crisis, of the amounts allo- cated pursuant to clauses (i) and (ii) of section 4567(a)(1)(B) of this title and clauses (i) and (ii) of section 4567(a)(2)(B) of this title in excess of amounts described in section 4567(e) of this title— (A) 100 percent of such excess shall be used to reimburse the Treasury for payments made pursuant to section 1715z–23(w)(1)(C) of this title in calendar year 2009; (B) 50 percent of such excess shall be used to reimburse the Treasury for such pay- ments in calendar year 2010; and (C) 25 percent of such excess shall be used to reimburse the Treasury for such pay- ments in calendar year 2011. (2) Excess funds At the termination of the HOPE for Home- owners Program established under section 1715z–23 of this title, if amounts used to reim- burse the Treasury under paragraph (1) exceed the total net cost to the Government of the HOPE for Homeowners Program, such amounts shall be used for their original pur- pose, as described in paragraphs (1)(B) and (2)(B) of section 4567(a) of this title. (3) Treasury fund The amounts referred to in subparagraphs (A) through (C) of paragraph (1) shall be depos- ited into a fund established in the Treasury of the United States by the Secretary of the Treasury for such purpose. (c) Allocation for Housing Trust Fund in fiscal year 2010 and subsequent years (1) In general Except as provided in subsection (b), the Secretary shall distribute the amounts allo- cated for the Housing Trust Fund under this section to provide affordable housing as de- scribed in this subsection. (2) Permissible designees A State receiving grant amounts under this subsection may designate a State housing fi- nance agency, housing and community devel- opment entity, tribally designated housing en- tity (as such term is defined in section 4103 of title 25), or any other qualified instrumen- tality of the State to receive such grant amounts. (3) Distribution to States by needs-based for- mula (A) In general The Secretary shall, by regulation, estab- lish a formula within 12 months of July 30, 2008, to distribute amounts made available under this subsection to each State to pro- vide affordable housing to extremely low- and very low-income households. (B) Basis for formula The formula required under subparagraph (A) shall include the following: (i) The ratio of the shortage of standard rental units both affordable and available to extremely low-income renter house- holds in the State to the aggregate short- age of standard rental units both afford- able and available to extremely low-in- come renter households in all the States. (ii) The ratio of the shortage of standard rental units both affordable and available to very low-income renter households in the State to the aggregate shortage of standard rental units both affordable and available to very low-income renter house- holds in all the States. (iii) The ratio of extremely low-income renter households in the State living with either (I) incomplete kitchen or plumbing facilities, (II) more than 1 person per room, or (III) paying more than 50 percent of income for housing costs, to the aggre- gate number of extremely low-income renter households living with either (IV) incomplete kitchen or plumbing facilities, (V) more than 1 person per room, or (VI) paying more than 50 percent of income for housing costs in all the States. (iv) The ratio of very low-income renter households in the State paying more than 50 percent of income on rent relative to the aggregate number of very low-income renter households paying more than 50 per- cent of income on rent in all the States. (v) The resulting sum calculated from the factors described in clauses (i) through (iv) shall be multiplied by the relative cost of construction in the State. For purposes