HR 1481 IH

To prevent the premature shutdown of certain FHA mortgage insurance programs.

April 4, 2001

Mr. LAFALCE (for himself and Mr. Frank) introduced the following bill; which was referred to the Committee on Financial Services

To prevent the premature shutdown of certain FHA mortgage insurance programs.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `FHA Shutdown Prevention Act'.

SEC. 2. USE OF NEGATIVE CREDIT SUBSIDY FROM GENERAL AND SPECIAL RISK INSURANCE FUND PROGRAMS.

(a) GENERAL INSURANCE FUND- Section 519 of the National Housing Act (12 U.S.C. 1735c) is amended--

(1) by redesignating subsections (e) and (f) as subsections (f) and (g), respectively; and

(2) by inserting after subsection (d) the following new subsection:

`(e) USE OF NEGATIVE CREDIT SUBSIDY-

`(1) IN GENERAL- In the case of any program for insuring mortgages or loans which are obligations of the General Insurance Fund that is determined for any fiscal year, for purposes of title V of the Congressional Budget Act of 1974 (2 U.S.C. 661 et seq.), to have costs (as defined in such title) of a negative amount, subject to paragraph (2), the amount of such negative credit subsidy shall be considered to be new budget authority provided in advance in an appropriations Act for such fiscal year and shall be available for covering the costs of making insurance commitments under any program for insurance for mortgages or loans under which such insurance is an obligation of the General Insurance Fund or the Special Risk Insurance Fund.

`(2) APPLICABILITY- Paragraph (1) shall apply with respect to a fiscal year only if and beginning at such time that, during such fiscal year, all amounts of budget authority appropriated for such fiscal year to cover the costs of programs for insuring mortgages or loans which are obligations of the General Insurance Fund or the Special Risk Insurance Fund have been used to enter into commitments for such insurance.'.

(b) SPECIAL RISK INSURANCE FUND- Section 238 of the National Housing Act (12 U.S.C. 1715z-3) is amended--

(1) by redesignating subsection (c) as subsection (d); and

(2) by inserting after subsection (b) the following new subsection:

`(c) USE OF NEGATIVE CREDIT SUBSIDY-

`(1) IN GENERAL- In the case of any program for insuring mortgages or loans which are obligations of the Special Risk Insurance Fund that is determined for any fiscal year, for purposes of title V of the Congressional Budget Act of 1974 (2 U.S.C. 661 et seq.), to have costs (as defined in such title) of a negative amount, subject to paragraph (2), the amount of such negative credit subsidy shall be considered to be new budget authority provided in advance in an appropriations Act for such fiscal year and shall be available for covering the costs of making insurance commitments under any program for insurance for mortgages or loans under which such insurance is an obligation of the General Insurance Fund or the Special Risk Insurance Fund.

`(2) APPLICABILITY- Paragraph (1) shall apply with respect to a fiscal year only if and beginning at such time that, during such fiscal year, all amounts of budget authority appropriated for such fiscal year to cover the costs of programs for insuring mortgages or loans which are obligations of the General Insurance Fund or the Special Risk Insurance Fund have been used to enter into commitments for such insurance.'.

END