**March 14, 2000
Full-Committee Mark-Up on H.R. 1776
MANAGERS AMENDMENT SUMMARY
[These changes have been incorporated in an amendment in the nature of a substitute. This summary also reflects UC technical amendment by Chairman Leach ]
FINDINGS AND PURPOSES:
1. Mortgage Consumer Protection: Adds: "Consumers should be afforded all reasonable opportunity to access mortgage credit; to the lowest-cost mortgage for which the consumer can qualify; to know the true cost of a mortgage; to be free of regulatory burden; and to know what is behind a lenders mortgage decision."
TITLE I: REMOVAL OF BARRIERS TO AFFORDABLE HOUSING
1. OFHEO/Financial Regulators provision: Exempts from the section 102 Housing Impact Analysis any rule relating to the safety and soundness operations of any financial institution including the GSEs.
TITLE II: HOMEOWNERSHIP THROUGH MORTGAGE INSURANCE AND LOAN GUARANTEES
1. HECMs: Technical changes to allow for initial service, appraisal and inspection fees with reverse mortgage proceeds used for long-term care insurance contracts, and extending waiver of up-front premium fees when proceeds are used for all qualifying health care services, subject to limitations (Lazio/LaFalce).
2. ARMS: Change text for ARMs limit from 40% of previous FHA activity to current law cap of 30% (Royce/Kelly).
3. 203(k): Technical changes, including clarification that affiliated business arrangements under RESPA (i.e. bundling of services), are not affected by the identity of interest protections. (Lazio)
4. FHA Police Provision: Allows reduced downpayment requirements for FHA loans for teachers and uniformed municipal employees (LaFalce). This provision compliments Rep. Greens provision in Sec 204.
5. FHA Law Enforcement Provision: Make effective date of provision 3 years from implementation of the pilot program rather than date of enactment. Expands definition to include "correctional officers." (Rep. Green)
6. FHA Simplified Downpayment Program: Congress authorized a simplified downpayment for Alaska and Hawaii in 1998 and 1999 Appropriations. In FY 2000, Congress made the simplified downpayment apply nationwide. This provision would make the change permanent.
7. Section 249 (NHA) Affordable Housing Initiative: Amends section 249 of the National Housing Act to allow Community Development Financial Institutions (CDFI) to originate and service section 249 risk-sharing mortgage loans in a demonstration program. Section 249 was added to the NHA in 1983 by the PMI industry to allow HUD authority to conduct reinsurance demonstration programs in two Regions of the Country. (Baker)
8. GAO Report of FHA Home Inspections: Adds additional study requirements for GAO to report back on HUDs implementation of the Departments Homebuyer Protection Plan. (Baker)
TITLE III: SECTION 8 HOMEOWNERSHIP OPTION
TITLE IV: COMMUNITY DEVELOPMENT BLOCK GRANTS
1. Public Service Cap: Provides for a 5-year extension of the 25% public service cap for Los Angeles, CA. We authorized this for a two-year period in the public housing bill. The current authority lapses the end of this FY. (Royce/Dreier/Sherman/Waters)
2. Urban County Grandfathering: Grandfathers Salt Lake County under the CDBG program because the annexation trend in the area will leave the county ineligible as an urban county. (Cook)
3. Urban County Classification: The Community Development Block Grant (CDBG) Program statutory provisions, relating to the "urban county" classification, do not contemplate the form of consolidated city/county government found in Duval County, Florida (Jacksonville) where there is no unincorporated area. A pending decision by the Bureau of the Census, and subsequently by the U.S. Department of Housing and Urban Development (HUD), could cost the consolidated government nearly $500,000 a year in CDBG funds. Jacksonville is seeking legislation to prevent the loss of funding. This provision would classify Jacksonville as an "urban county." Such legislation would preserve the areas longstanding status as an entitlement area for CDBG grants.
4. CDBG Municipal Employees: Provides a requirement that the 150% of median limit for the municipal employee program only applies to high-cost areas as determined by the Secretary. (Capuano)
5. CDBG Municipal Employees: Limits the municipal employee program to first-time homebuyers only. (Weldon)
TITLE V: HOME INVESTMENT PARTNERSHIPS PROGRAM
1. Administrative Expenses: Provides flexibility in the HOME program to allow administrative expenses to be used over a long-term period to accommodate longer-term administration of servicing homeownership initiatives. (Leach)
2. Affordable Housing Coordination: Authorizes three pilot programs that would provide planning money to regions to coordinate affordable housing. This would be a set-aside from the HOME program for two years at $3 million each year. (Hooley)
3. HOME Municipal Employees: Provides a requirement that the 150% of median limit for the municipal employee program only applies to high-cost areas as determined by the Secretary. (Capuano)
4. Grandfamilies: Adds a technical change to the grandfamilies provision to accommodate "great-great grand children." (Capuano)
TITLE VI: LOCAL HOMEOWNERSHIP INITIATIVES
1. Lead Paint: The provision enables grantees to use grant funds from the existing HUD Lead Hazard Control Grant program to provide access to residential lead-based paint poisoning prevention services at centralized locations. It also allows funds to be used to provide temporary lead-safe housing. (Weygand)
TITLE VII: INDIAN HOUSING HOMEOWNERSHIP
1. Officer Next Door Program: Authorizes an Officer Next Door program for Indian housing programs. Also in Section 219 of the Administrations Budget request.
TITLE VIII: TRANSFER OF UNOCCUPIED AND SUBSTANDARD HUD-HELD HOUSING TO LOCAL GOVERNMENTS AND COMMUNITY DEVELOPMENT CORPORATIONS
1. One Dollar Homes: Amends Title IX to reflect a $1 dollar purchase program for HUD foreclosed homes held for 6 months or more. (HUD/Watts/Kasich)
TITLE XI: MANUFACTURED HOUSING IMPROVEMENT
1. Senate Compromise: This provision reinserts Title VII of HR 1776 (as introduced), the "Manufactured Housing Improvement Act of 1999," and altars the text to conform to Senate compromises. This includes some technical changes to keep consistent with the House bills base text:
- Consensus Committee: Changes the composition of the committee from five groups with five members each to include three groups with seven members in each group: (1) producers, (2) users and (3) general interest and public officials. The change in the committee composition is consistent with the American National Standards Institute (ANSI) guidelines. In addition, there is language to ensure that the committee is represented by balanced interests and that "all affected interests have the opportunity for fair and equitable participation without dominance by any single interest."
- Installation Program: The managers amendment gives the States five years to adopt an installation program "established by State law" that includes: (1) installation standards, (2) the training and licensing of installers and (3) the inspection of the installation of manufactured homes. During this five-year period, the Secretary of the Department of Housing and Urban Development (HUD) and the Consensus Committee are charged with constructing a "model" manufactured housing installation program. In states that choose not to adopt an installation program, HUD may contract with an appropriate agent in those states to implement the "model" installation program.
- Dispute Resolution: Requires States to implement a dispute resolution program within the 5-year period beginning on the date of enactment of this Act for the timely resolution of disputes between manufacturers, retailers, and installers of manufactured homes. In States that choose not to adopt their own dispute resolution program, HUD may contract with an appropriate agent in those states to implement a dispute resolution program.
2. Enforcement: Requires State issuance of appropriate orders for the correction or repair of defects in the manufactured homes that are reported during the 1-year period beginning on the date of installation under the dispute resolution program.
TITLE IX: PRIVATE MORTGAGE INSURANCE CANCELLATION AND TERMINATION
TITLE X: RURAL HOUSING HOMEOWNERSHIP
1. Rural Housing Preservation: Continues Agricultures existing Rural Housing Service grandfather for a narrow category of communities until the 2010 census. (Bereuter, HR 3706.)
2. Technical corrections