12 U.S.C. § 4564 — Discretionary adjustment of housing goals

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