The House is expected to consider H.R. 3527 in the House on Tuesday, September 15, 2009, under a motion to suspend the rules, requiring a two-thirds majority vote for passage. This legislation was introduced by Rep. Anthony Weiner (D-NY) on July 31, 2009.
H.R. 3527 would amend the National Housing Act to revise the maximum mortgage loan principal amounts the Secretary of Housing and Urban Development (HUD) may insure for elevator-type structures with respect to: (1) rental housing; (2) cooperative housing; (3) rehabilitation and neighborhood conservation housing; (4) housing for moderate income and displaced families; (5) housing for elderly persons; and (6) condominiums. The bill would replace the current specific dollar amount limitations per family unit by which the insurable mortgage principal obligation may be increased. It would set a maximum dollar amount increase limitation per family unit of 50 percent of the insurable amounts specified for each unit size. Lastly, the bill would authorize the Secretary to set a higher maximum for the principal obligation of mortgages insured with respect to projects consisting of more than four dwelling units located in an extremely high-cost area (similar to insurance of mortgages on property in Alaska, Guam, Hawaii, and the Virgin Islands).
Some Members may be concerned that H.R. 3527 would authorize the Secretary of HUD to increase FHA's insurance coverage amounts which would increase the exposure to taxpayers.
The Congressional Budget Office (CBO) has not yet produced a cost estimate for H.R. 3527.
