H.R. 3766

Main Street TARP Act of 2009

Latest
Raw Text PDF XML

I

111th CONGRESS

1st Session

H. R. 3766

IN THE HOUSE OF REPRESENTATIVES

October 8, 2009

Mr. Frank of Massachusetts (for himself, Ms. Waters, Mr. Kanjorski, Ms. Velázquez, Mr. Cardoza, Mr. Fattah, and Mr. Cummings) introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To use amounts made available under the Troubled Assets Relief Program of the Secretary of the Treasury for relief for homeowners and affordable rental housing.

1.

Short title

This Act may be cited as the Main Street TARP Act of 2009.

2.

Housing Trust Fund

(a)

Use of TARP Funds

Using the authority available under sections 101(a) and 115(a) of division A of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211(a), 5225(a)), the Secretary of the Treasury shall transfer to the Secretary of Housing and Urban Development $1,000,000,000, and the Secretary of Housing and Urban Development shall credit such amount to the Housing Trust Fund established under section 1338 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4568) for use in accordance with such section.

(b)

Tenant rent contribution

Subparagraph (A) of section 1338(c)(7) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4568(c)(7)(A)) is amended by inserting before the semicolon the following: ; and except that all rental housing dwelling units shall be subject to legally binding commitments that ensure that the contribution toward rent by a family residing in a dwelling unit shall not exceed 30 percent of the adjusted income of such family.

3.

Emergency mortgage relief

(a)

Use of TARP funds

Using the authority available under sections 101(a) and 115(a) of division A of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5211(a), 5225(a)), the Secretary of the Treasury shall transfer to the Secretary of Housing and Urban Development $2,000,000,000, and the Secretary of Housing and Urban Development shall credit such amount to the Emergency Homeowners’ Relief Fund, which such Secretary shall establish pursuant to section 107 of the Emergency Housing Act of 1975 (12 U.S.C. 2706), as such Act is amended by this section, for use for emergency mortgage assistance in accordance with title I of such Act.

(b)

Reauthorization of emergency mortgage relief program

Title I of the Emergency Housing Act of 1975 is amended—

(1)

in section 103 (12 U.S.C. 2702)—

(A)

in paragraph (2)—

(i)

by striking have indicated and all that follows through regulation of the holder and insert have certified;

(ii)

by striking (such as the volume of delinquent loans in its portfolio); and

(iii)

by striking , except that such statement and all that follows through purposes of this title; and

(B)

in paragraph (4), by inserting or medical conditions after adverse economic conditions;

(2)

in section 104 (12 U.S.C. 2703)—

(A)

in subsection (b), by striking the lesser of $250 per month or; and

(B)

in subsection (d), by inserting before the period at the end the following: , except that such interest rate may exceed such maximum rate but only as necessary to comply with rules under a program operated by a State that otherwise complies with program rules under this title;

(3)

in section 105 (12 U.S.C. 2704)—

(A)

by striking subsection (b);

(B)

in subsection (e)—

(i)

by inserting and emergency mortgage relief payments made under section 106 after insured under this section; and

(ii)

by striking $1,500,000,000 at any one time and inserting $2,000,000,000;

(C)

by redesignating subsections (c), (d), and (e) as subsections (b), (c), and (d), respectively; and

(D)

by adding at the end the following new subsection:

(e)

The Secretary shall establish underwriting guidelines or procedures to allocate amounts made available for loans and advances insured under this section and for emergency relief payments made under section 106 based on the likelihood that a mortgagor will be able to resume mortgage payments, pursuant to the requirement under section 103(5).

;

(4)

in section 107—

(A)

by striking (a); and

(B)

by striking subsection (b);

(5)

in section 108 (12 U.S.C. 2707), by adding at the end the following new subsection:

(d)

The Secretary may allow funds to be administered by a State through an existing program that complies with program rules under this title.

;

(6)

in section 109 (12 U.S.C. 2708)—

(A)

in the section heading, by striking authorization and;

(B)

by striking subsection (a);

(C)

by striking (b); and

(D)

by striking 1977 and inserting 2011;

(7)

by striking sections 110, 111, and 113 (12 U.S.C. 2709, 2710, 2712); and

(8)

by redesignating section 112 (12 U.S.C. 2711) as section 110.

4.

Reducing TARP authorization limit to offset costs

Paragraph (3) of section 115(a) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5225) is amended by striking $1,259,000,000 and inserting 2,259,000,000.