[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2961 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 2961
To provide mortgage assistance to firefighters.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 25, 2003
Mr. Pascrell (for himself, Mrs. Emerson, Mr. Pallone, Mrs. McCarthy of
New York, Mr. Weldon of Pennsylvania, Mr. Capuano, Mr. Holden, Mr.
Doyle, Mr. Brady of Pennsylvania, Mr. Rahall, Mr. Davis of Tennessee,
Mr. Rehberg, Mr. Emanuel, Mr. Cooper, Mr. Stenholm, Mr. Owens, and Ms.
Woolsey) introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To provide mortgage assistance to firefighters.
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 ``Firefighters Affordable Housing
Act''.
SEC. 2. MORTGAGE ASSISTANCE FOR VOLUNTEER FIREFIGHTERS.
(a) In General.--The Secretary of Housing and Urban Development may
make mortgage assistance payments under this section on behalf of
volunteer firefighters to reduce the interest rates on eligible
mortgage loans under subsection (b) for such firefighters.
(b) Eligible Mortgages.--Assistance may be provided under this
section only for a mortgage loan that meets the following requirements:
(1) Firefighter mortgagor.--The mortgagor under the loan is
a volunteer firefighter.
(2) Principal residence.--The residence subject to the
mortgage is a single family residence that is the principal
residence of the mortgagor.
(3) Maximum mortgage amount.--The principal obligation of
the mortgage loan does not exceed the principal amount eligible
for insurance with respect to the property under the National
Housing Act.
(4) Responsible mortgagee.--The mortgage has been made to,
and is held by, a mortgagee that is federally insured or that
is otherwise approved by the Secretary as responsible and able
to service the mortgage properly.
(c) Interest Rate Buydowns.--Mortgage assistance under this section
shall be provided only in the form of a payment or payments to the
mortgagee in amounts sufficient to decrease by 2 percent the annual
rate of interest payable on the mortgage by the eligible volunteer
firefighter who is the mortgagor. Such payments may be made on an up-
front basis or an ongoing monthly basis, as the Secretary considers
appropriate.
(d) Terms of Assistance.--
(1) Termination.--The Secretary shall establish limitations
on mortgage assistance payments under this section to ensure
that a mortgagor may not receive the benefit of a reduced
mortgage interest from such payments for any portion of the
term of a mortgage remaining after the occurrence of either of
the following:
(A) Failure to use as principal residence.--The
mortgagor ceases to comply with the requirement under
subsection (b)(2).
(B) Termination of duties as firefighter.--During
the 10-year period beginning upon the execution of the
mortgage, the mortgagor ceases to comply with the
requirement under subsection (b)(1).
The Secretary may carry out his paragraph by terminating any
ongoing assistance payments under this section or by
recapturing from the mortgagor the amount of any assistance
payment made on an up-front basis that the Secretary determines
is attributable to reducing the interest rate for the portion
of the mortgage term remaining after an occurrence described in
subparagraph (A) or (B).
(2) One-time assistance.--The Secretary may make assistance
payments under this subsection with respect only to a single
mortgage loan of an eligible volunteer firefighter.
(e) Applications.--The Secretary shall provide for volunteer
firefighters to submit applications for mortgage assistance under this
section and for review of such applications to determine eligibility
for such assistance. Assistance shall be made available on a first-
come, first-served basis for applications eligible for such assistance.
(f) Report.--The Secretary shall submit to the Congress, not later
than 2 years after the date of the enactment of this Act, a report
containing a description of the activities of the Secretary under the
mortgage assistance program under this section and an analysis of the
effectiveness of such program in assisting home buyers that are
eligible volunteer firefighters.
(g) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Public agency.--The term ``public agency'' means the
United States, any State of the United States, the District of
Columbia, the Commonwealth of Puerto Rico, the Commonwealth of
the Northern Mariana Islands, Guam, the Virgin Islands,
American Samoa, and any other territory or possession of the
United States, or any unit of general local government,
department, agency, or instrumentality of any entity referred
to in this paragraph.
(2) Public fire service.--The term ``public fire service''
means a public agency consisting of personnel, apparatus, and
equipment which has as its primary purpose the provision of
services to protect property and maintaining the safety and
welfare of the public from the dangers of fire, regardless of
whether the personnel of any such organization include paid
employees. Such term includes a public agency that also
provides ambulance services or rescue services.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(4) Single family residence.--The term ``single family
residence'' means a 1- to 4-family residence. Such term
includes a unit in a cooperative.
(5) Volunteer firefighter.--
(A) In general.--The term ``volunteer firefighter''
means an individual who--
(i)(I) carries out duties for a public fire
service that consist primarily of work directly
connected with--
(aa) the control and extinguishment
of fires or the maintenance and use of
firefighting apparatus and equipment;
or
(bb) if the public fire service for
which the individual carries out duties
provides ambulance or rescue services,
the provision of ambulance or rescue
services or the maintenance of
ambulance or rescue apparatus or
equipment; and
(II) does not receive any remuneration in
the form of pay, salary, or wages for
conducting the duties referred to in subclause
(I); or
(ii) otherwise serves on a volunteer basis
as a firefighter, as determined by the
Secretary.
(B) Allowable benefits.--An individual described in
subparagraph (A) shall not be excluded from treatment
under this section as a volunteer firefighter because
such individual is provided, in connection with the
duties referred to in subparagraph (A)--
(i) reimbursement or allowance for expenses
actually incurred;
(ii) insurance coverage for injuries
proximately caused by such duties;
(iii) food and lodging while on service for
such duties; or
(iv) any other benefits that the Secretary
determines are appropriate for purposes of this
section.
(h) Regulations.--The Secretary shall issue any regulations
necessary to carry out this section.
(i) Authorization of Appropriations.--There are authorized to be
appropriated for assistance payments under this section $20,000,000 for
each of fiscal years 2004, 2005, 2006, 2007, and 2008.
SEC. 3. REDUCED FHA DOWNPAYMENT REQUIREMENTS FOR LOANS FOR PROFESSIONAL
FIREFIGHTERS.
(a) In General.--Section 203(b) of the National Housing Act (12
U.S.C. 1709(b)) is amended by adding at the end the following new
paragraph:
``(10) Reduced downpayment requirements for professional
firefighters.--
``(A) In general.--Notwithstanding paragraph (2),
in the case of a mortgage described in subparagraph
(B)--
``(i) the mortgage shall involve a
principal obligation in an amount that does not
exceed the sum of 99 percent of the appraised
value of the property and the total amount of
initial service charges, appraisal, inspection,
and other fees (as the Secretary shall approve)
paid in connection with the mortgage;
``(ii) no other provision of this
subsection limiting the principal obligation of
the mortgage based upon a percentage of the
appraised value of the property subject to the
mortgage shall apply; and
``(iii) the matter in paragraph (9) that
precedes the first proviso shall not apply and
the mortgage shall be executed by a mortgagor
who shall have paid on account of the property
at least 1 percent of the cost of acquisition
(as determined by the Secretary) in cash or its
equivalent.
``(B) Mortgages covered.--A mortgage described in
this subparagraph is a mortgage--
``(i) under which the mortgagor--
``(I) is a firefighter; and
``(II) has not, during the 12-month
period ending upon the insurance of the
mortgage, had any present ownership
interest in a principal residence
located in the jurisdiction described
in clause (ii); and
``(ii) made for a property that is located
within the jurisdiction served by the public
fire service or rescue or ambulance agency that
employs the mortgagor.
``(C) Definitions.--For purposes of this paragraph,
the following definitions shall apply:
``(i) Firefighter.--The term `firefighter'
means an individual--
``(I) who is employed on a full-
time basis by a public fire service or
a private firefighting brigade; and
``(II) the duties of whose position
are primarily to perform work directly
connected with (aa) the control and
extinguishment of fires or the
maintenance and use of firefighting
apparatus and equipment, or (bb) if the
public fire service or private
firefighting brigade employing the
individual provides ambulance or rescue
services, the provision of ambulance or
rescue services or the maintenance of
ambulance or rescue apparatus or
equipment.
``(ii) Public agency.--The term `public
agency' means the United States, any State of
the United States, the District of Columbia,
the Commonwealth of Puerto Rico, the
Commonwealth of the Northern Mariana Islands,
Guam, the Virgin Islands, American Samoa, and
any other territory or possession of the United
States, or any unit of general local
government, department, agency, or
instrumentality of any entity referred to in
this subparagraph.
``(iii) Public fire service.--The term
`public fire service' means a public agency
consisting of personnel, apparatus, and
equipment which has as its primary purpose the
provision of services to protect property and
maintaining the safety and welfare of the
public from the dangers of fire. Such term
includes a public agency that also provides
ambulance service or rescue services.''.
(b) Deferral and Reduction of Up-Front Premium.--Section 203(c) of
the National Housing Act (12 U.S.C. 1709(c)) is amended--
(1) in paragraph (2), in the matter preceding subparagraph
(A), by striking ``Notwithstanding'' and inserting ``Except as
provided in paragraph (3) and notwithstanding''; and
(2) by adding at the end the following new paragraph:
``(3) Deferral and reduction of up-front premium.--In the case of
any mortgage described in subsection (b)(10)(B):
``(A) Paragraph (2)(A) of this subsection (relating to
collection of up-front premium payments) shall not apply.
``(B) If, at any time during the 5-year period beginning on
the date of the insurance of the mortgage, the mortgagor ceases
to be a firefighter (as such term is defined in subsection
(b)(10)(C)) or pays the principal obligation of the mortgage in
full, the Secretary shall at such time collect a single premium
payment in an amount equal to the amount of the single premium
payment that, but for this paragraph, would have been required
under paragraph (2)(A) of this subsection with respect to the
mortgage, as reduced by 20 percent of such amount for each
successive 12-month period completed during such 5-year period
before such cessation or prepayment occurs.''.
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