H.R. 5872: General and Special Risk Insurance Funds Availability Act

H.R. 5872

General and Special Risk Insurance Funds Availability Act

Date
July 28, 2010 (111th Congress, 2nd Session)

Staff Contact
Communications

Floor Situation

The House is expected to consider H.R. 5872 on the House floor on Wednesday, July 28, 2010, under a motion to suspend the rules, requiring a two-thirds majority vote for passage.  This legislation was introduced by Rep. Barney Frank (D-MA) on July 27, 2010.

Bill Summary

The bill would authorize the HUD Secretary to enter into commitments to guarantee loans in an amount not exceeding $20,000,000,000 in total loan principal.  Some Members may be concerned that the bill would increase the HUD Secretary’s commitment authority by $5 billion for FHA’s multifamily program.  HUD expects to reach its current $15 billion commitment limitation before the end of the current fiscal year.   

Cost

According to CBO, the bill would enable FHA to insure more loans, about $3 billion more than currently estimated for 2010.  Using a subsidy rate of slightly more than 3 percent, additional collections would be close to $96 million.