To direct the Secretary of Housing and Urban Development to carry out a 3-year pilot program to assist law enforcement officers purchasing homes in locally designated at-risk areas.

February 12, 2003

Mr. GREEN of Wisconsin (for himself, Mr. HOUGHTON, Mr. MCGOVERN, Mr. PAYNE, Mr. KENNEDY of Minnesota, Ms. HOOLEY of Oregon, and Mrs. MCCARTHY of New York) introduced the following bill; which was referred to the Committee on Financial Services

To direct the Secretary of Housing and Urban Development to carry out a 3-year pilot program to assist law enforcement officers purchasing homes in locally designated at-risk areas.

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

SECTION 1. LAW ENFORCEMENT OFFICER HOMEOWNERSHIP PILOT PROGRAM.

(a) ASSISTANCE FOR LAW ENFORCEMENT OFFICERS- For the 3 years following the date of the enactment of this Act, the Secretary of Housing and Urban Development shall carry out a pilot program to assist Federal, State, and local law enforcement officers purchasing homes in locally designated at-risk areas in accordance with this Act.

(b) ELIGIBILITY- To be eligible for assistance under this Act, a law enforcement officer shall--

(1) have completed not less than 6 months of service as a law enforcement officer as of the date that the law enforcement officer applies for such assistance; and

(2) agree, in writing, to use the residence purchased with such assistance as the primary residence of the law enforcement officer for not less than 3 years after the date of purchase.

(c) MORTGAGE ASSISTANCE- If a law enforcement officer purchases a home in a locally designated at-risk area and finances such purchase through a mortgage insured under title II of the National Housing Act (12 U.S.C. 1707 et seq.), notwithstanding any provision of section 203 or any other provision of the National Housing Act, the following shall apply:

(1) DOWNPAYMENT-

(A) IN GENERAL- There shall be no downpayment required if the purchase price of the property is not more than the reasonable value of the property, as determined by the Secretary.

(B) PURCHASE PRICE EXCEEDS VALUE- If the purchase price of the property exceeds the reasonable value of the property, as determined by the Secretary, the required downpayment shall be the difference between such reasonable value and the purchase price.

(2) CLOSING COSTS- The closing costs and origination fee for such mortgage may be included in the loan amount.

(3) INSURANCE PREMIUM PAYMENT- There shall be 1 insurance premium payment due on the mortgage. Such insurance premium payment--

(A) shall be equal to 1 percent of the loan amount;

(B) shall be due and considered earned by the Secretary at the time of the loan closing; and

(C) may be included in the loan amount and paid from the loan proceeds.

(d) LOCALLY DESIGNATED AT-RISK AREA-

(1) IN GENERAL- Any unit of local government may request that the Secretary designate any area within the jurisdiction of that unit of local government as a locally designated at-risk area for purposes of this Act if the proposed area--

(A) has a crime rate that is significantly higher than the crime rate of the non-designated area that is within the jurisdiction of the unit of local government; and

(B) has a population that is not more than 25 percent of the total population of area within the jurisdiction of the unit of local government.

(2) DEADLINE FOR CONSIDERATION OF REQUEST- Not later than 60 days after receiving a request under paragraph (1), the Secretary shall approve or disapprove the request.

(e) SUNSET- The Secretary shall not approve any application for assistance under this Act that is received by the Secretary more than 3 years after the date of the enactment of this Act.

END