12 U.S.C. § 4563 — Multifamily special affordable housing

Page 1670 TITLE 12—BANKS AND BANKING § 4563 1 So in original. principal balance of the mortgage loan to be the principal balance as reported in the infor- mation referred to in paragraph (4), as rounded to the nearest thousand dollars. (f) Notice of determination and enterprise com- ment (1) Notice Within 30 days of making a determination under subsection (d) regarding compliance of an enterprise for a year with a housing goal established under this section and before any public disclosure thereof, the Director shall provide notice of the determination to the en- terprise, which shall include an analysis and comparison, by the Director, of the perform- ance of the enterprise for the year and the tar- gets for the year under subsection (e). (2) Comment period The Director shall provide each enterprise an opportunity to comment on the determina- tion during the 30-day period beginning upon receipt by the enterprise of the notice. (g) Use of borrower income In monitoring the performance of each enter- prise pursuant to the housing goals under this section and evaluating such performance (for purposes of section 4566 of this title), the Direc- tor shall consider a mortgagor’s income to be such income at the time of origination of the mortgage. (h) Consideration of properties with rental units Mortgages financing two- to four-unit owner- occupied properties shall count toward the achievement of the single-family housing goals under this section, if such properties otherwise meet the requirements under this section, not- withstanding the use of one or more units for rental purposes. (i) Goals credit The Director shall determine whether an en- terprise shall receive full, partial, or no credit for a transaction toward achievement of any of the housing goals established pursuant to sec- tion 4562 and 4563 of this title. In making any such determination, the Director shall consider whether a transaction or activity of an enter- prise is substantially equivalent to a mortgage purchase and either (1) creates a new market, or (2) adds liquidity to an existing market. No credit toward the achievement of the housing goals and subgoals established under this sec- tion may be given to the purchase of mortgages, including any transaction or activity of an en- terprise determined to be substantially equiva- lent to a mortgage purchase, that is determined to be unacceptable or contrary to good lending practices, inconsistent with safety and sound- ness, or unauthorized for purchase by the enter- prises, pursuant to regulations issued by the Di- rector. (Pub. L. 102–550, title XIII, § 1332, as added Pub. L. 110–289, div. A, title I, § 1128(b), July 30, 2008, 122 Stat. 2697.) Editorial Notes REFERENCES IN TEXT The Home Mortgage Disclosure Act of 1975, referred to in subsec. (e)(2)(A), (4), is title III of Pub. L. 94–200, Dec. 31, 1975, 89 Stat. 1125, which is classified prin- cipally to chapter 29 (§ 2801 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 2801 of this title and Tables. PRIOR PROVISIONS A prior section 4562, Pub. L. 102–550, title XIII, § 1332, Oct. 28, 1992, 106 Stat. 3956, related to low- and mod- erate-income housing goal, prior to repeal by Pub. L. 110–289, div. A, title I, § 1128(a), July 30, 2008, 122 Stat. 2696. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 102–550, title XIII, § 1338, Oct. 28, 1992, 106 Stat. 3964, which provided the effective date for housing goals established under former sections 4562(d), 4563(d), and 4564(d) of this title, was repealed by Pub. L. 110–289, div. A, title I, § 1122(a)(2), July 30, 2008, 122 Stat. 2689. § 4563. Multifamily special affordable housing goal (a) Establishment of goal (1) In general The Director shall, by regulation, establish a single annual goal, by either unit or dollar volume, of purchases by each enterprise of mortgages on multifamily housing that fi- nance dwelling units affordable to low-income families. (2) Additional requirements for units afford- able to very low-income families When establishing the goal under this sec- tion, the Director shall establish additional requirements for the purchase by each enter- prise of mortgages on multifamily housing that finance dwelling units affordable to very low-income families. (3) Reporting on smaller properties The Director shall require each enterprise to report on the purchase by each enterprise of multifamily housing of a smaller or limited size that is affordable to low-income families, which may be based on multifamily projects of 5 to 50 units (as such numbers may be adjusted by the Director) or on mortgages of up to $5,000,000 (as such amount may be adjusted by the Director), and may, by regulation, estab- lish such aditional 1 requirements related to such units. (4) Factors In establishing the goal and additional re- quirements under this section, the Director shall not consider segments of the market de- termined to be inconsistent with safety and soundness or unauthorized for purchase by the enterprises, and shall take into consider- ation— (A) national multifamily mortgage credit needs and the ability of the enterprise to provide additional liquidity and stability for the multifamily mortgage market; (B) the performance and effort of the en- terprise in making mortgage credit available for multifamily housing in previous years; (C) the size of the multifamily mortgage market for housing affordable to low-income Page 1671 TITLE 12—BANKS AND BANKING § 4565 1 So in original. No par. (2) has been enacted. and very low-income families, including the size of the multifamily markets for housing of a smaller or limited size; (D) the ability of the enterprise to lead the market in making multifamily mortgage credit available, especially for multifamily housing described in paragraphs (1) and (2); (E) the availability of public subsidies; and (F) the need to maintain the sound finan- cial condition of the enterprise. (b) Units financed by housing finance agency bonds The Director shall give full credit toward the achievement of the multifamily special afford- able housing goal under this section (for pur- poses of section 4566 of this title) to dwelling units in multifamily housing that otherwise qualifies under such goal and that is financed by tax-exempt or taxable bonds issued by a State or local housing finance agency, if such bonds, in whole or in part— (1) are secured by a guarantee of the enter- prise; or (2) are purchased by the enterprise, except that the Director may give less than full cred- it for purchases of investment grade bonds, to the extent that such purchases do not provide a new market or add liquidity to an existing market. (c) Measurement of performance The Director shall monitor the performance of each enterprise in meeting the goals established under this section and shall evaluate such per- formance (for purposes of section 4566 of this title) based on whether the rent levels are af- fordable. A rent level shall be considered to be affordable for purposes of this subsection for low-income families if it does not exceed 30 per- cent of the maximum income level of such in- come category, with appropriate adjustments for unit size as measured by the number of bed- rooms. (d) Determination of compliance The Director shall determine, for each year that the housing goal under this section is in ef- fect pursuant to section 4561(a) of this title, whether each enterprise has complied with such goal and the additional requirements under sub- section (a)(2). (Pub. L. 102–550, title XIII, § 1333, as added Pub. L. 110–289, div. A, title I, § 1128(b), July 30, 2008, 122 Stat. 2700.) Editorial Notes PRIOR PROVISIONS A prior section 4563, Pub. L. 102–550, title XIII, § 1333, Oct. 28, 1992, 106 Stat. 3958, related to special affordable housing goal, prior to repeal by Pub. L. 110–289, div. A, title I, § 1128(a), July 30, 2008, 122 Stat. 2696. § 4564. Discretionary adjustment of housing goals (a) Authority An enterprise may petition the Director in writing at any time during a year to reduce the level of any goal or subgoal for such year estab- lished pursuant to this subpart. (b) Standard for reduction The Director may reduce the level for a goal or subgoal pursuant to such a petition only if— (1) market and economic conditions or the financial condition of the enterprise require such action; or (2) efforts to meet the goal or subgoal would result in the constraint of liquidity, over-in- vestment in certain market segments, or other consequences contrary to the intent of this subpart, or section 1716(3) of this title or section 301(b)(3) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451 note), as applicable. (c) Determination The Director shall, promptly upon receipt of a petition regarding a reduction, seek public com- ment on the reduction for a period of 30 days. The Director shall make a determination re- garding any proposed reduction within 30 days after the expiration of such public comment pe- riod. The Director may extend such determina- tion period for a single additional 15-day period, but only if the Director requests additional in- formation from the enterprise. (Pub. L. 102–550, title XIII, § 1334, as added Pub. L. 110–289, div. A, title I, § 1128(b), July 30, 2008, 122 Stat. 2701.) Editorial Notes REFERENCES IN TEXT Section 301(b)(3) of the Federal Home Loan Mortgage Corporation Act, referred to in subsec. (b)(2), is section 301(b)(3) of Pub. L. 91–351, which is set out as a Short Title and Statement of Purpose note under section 1451 of this title. PRIOR PROVISIONS A prior section 4564, Pub. L. 102–550, title XIII, § 1334, Oct. 28, 1992, 106 Stat. 3960, related to central cities, rural areas, and other underserved areas housing goal, prior to repeal by Pub. L. 110–289, div. A, title I, § 1128(a), July 30, 2008, 122 Stat. 2696. § 4565. Duty to serve underserved markets and other requirements (a) Duty to serve underserved markets (1) 1 Duty To increase the liquidity of mortgage invest- ments and improve the distribution of invest- ment capital available for mortgage financing for underserved markets, each enterprise shall provide leadership to the market in developing loan products and flexible underwriting guide- lines to facilitate a secondary market for mortgages for very low-, low-, and moderate- income families with respect to the following underserved markets: (A) Manufactured housing The enterprise shall develop loan products and flexible underwriting guidelines to fa- cilitate a secondary market for mortgages on manufactured homes for very low-, low-, and moderate-income families. (B) Affordable housing preservation The enterprise shall develop loan products and flexible underwriting guidelines to fa- cilitate a secondary market to preserve housing affordable to very low-, low-, and