FDIC Law, Regulations, Related Acts
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1000 - Federal Deposit Insurance Act
SEC. 40. FDIC AFFORDABLE HOUSING PROGRAM.
(a) Purpose.--The purpose of this section is to provide
homeownership and rental housing opportunities for very low-income,
low-income, and moderate-income families.
[Codified to 12 U.S.C. 1831q(a)]
[Source: Section 2[40(a)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 241(a) of title II of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2317), effective December 19,
1991]
(b) Funding and Limitations of Program.--
(1) DURATION OF PROGRAM.--The provisions of this section
shall be effective, subject to the provisions of paragraph (2), only
during the 3-year period beginning upon the commencement of the first
fiscal year for which amounts are provided pursuant to paragraph
(2)(A).
(2) ANNUAL FISCAL LIMITATIONS.--
(A) IN GENERAL.--In each fiscal year during the 3-year
period referred to in paragraph (1), the provisions of this section
shall apply only--
(i) to such extent or in such amounts as are provided in
appropriations Acts for any losses resulting during the fiscal year
from the sale of properties under this section, except that such
amounts for losses may not exceed $30,000,000 in any fiscal year; and
(ii) to the extent that amounts are provided in appropriations
Acts pursuant to subparagraph (C) for any other costs relating to the
program under this section.
(B) DEFINITION OF LOSSES.--For purposes of this
paragraph, the amount of losses resulting from the sale of properties
under this section during any fiscal year shall be the amount equal to
the sum of any affordable housing discounts reasonably anticipated to
accrue during the fiscal year.
(C) AUTHORIZATION OF APPROPRIATIONS.--There are
authorized to be appropriated, for each fiscal year during the 3-year
period referred to in paragraph (1), such sums as may be necessary for
any costs of the program under this section other than losses resulting
from the sale of properties under this section.
(D) OTHER DEFINITIONS.--For purposes of this paragraph:
(i) AFFORDABLE HOUSING DISCOUNT.--The term
"affordable housing discount" means, with respect to any eligible
residential or eligible condominium property transferred under this
section by the Corporation, the difference (if any) between the
realizable disposition value of the property and the actual sale price
of the property under this section.
(ii) REALIZABLE DISPOSITION VALUE.--The term
"realizable disposition value" means the estimated sale price
that the Corporation reasonably would be able to obtain upon the sale
of a property by the Corporation under the provisions of this Act, not
including this section, and any other applicable laws. Not later than
the expiration of the 120-day period beginning upon the commencement of
the first fiscal year for which amounts are provided pursuant to
paragraph (2)(A), the Corporation shall establish, and publish in the
Federal Register, procedures for determining the realizable disposition
value of a property transferred under this section, which shall take
into consideration such factors as the Corporation considers
appropriate, including the actual sale prices of properties disposed of
by the Resolution Trust Corporation under section 21A(c) of the Federal
Home Loan Bank Act, the prices of other properties sold under similar
programs, and the appraised value of the property transferred under
this section. Until such procedures are established, the Corporation
may consider the realizable disposition value of any eligible
residential or condominium property to be equal to the appraised value
of the property.
(3) EXISTING CONTRACTS.--The provisions of this section
shall not apply to any eligible residential property or any eligible
condominium property that is subject to an agreement entered into by
the Corporation before the commencement of the first fiscal year for
which amounts are provided pursuant to paragraph (2)(A) that provides
for any other disposition of the property.
[Codified to 12 U.S.C. 1831q(b)]
[Source: Section 2[40(b)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 241(a) of title II of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2317), effective December 19,
1991]
(c) Rules Governing Disposition of Eligible Single Family
Properties.--
(1) NOTICE TO CLEARINGHOUSES.--Within a reasonable
period of time after acquiring title to an eligible single family
property, the Corporation shall provide written notice to
clearinghouses. Such notice shall contain basic information about the
property, including but not limited to location, condition, and
information relating to the estimated fair market value of the
property. Each clearinghouse shall make such information available,
upon request, to other public agencies, other nonprofit organizations,
and qualifying households. The Corporation shall allow public agencies,
nonprofit organizations, and qualifying households reasonable access to
eligible single family property for purposes of inspection.
(2) OFFERS TO SELL TO NONPROFIT ORGANIZATIONS, PUBLIC
AGENCIES, AND QUALIFYING HOUSEHOLDS.--During the 180-day period
beginning on the date on which the Corporation makes an eligible single
family property available for sale, the Corporation shall offer to sell
the property to--
(A) qualifying households (including qualifying households with
members who are veterans); or
(B) public agencies or nonprofit organizations that agree to (i)
make the property available for occupancy by and maintain it as
affordable for low-income families (including low-income families with
members who are veterans) for the remaining useful life of such
property, or (ii) make the property available for purchase by any such
family who, except as provided in paragraph (4), agrees to occupy the
property as a principal residence for at least 12 months and certifies
in writing that the family intends to occupy the property for at least
12 months.
The restrictions described in clause (i) of subparagraph (B) shall be
contained in the deed or other recorded instrument. If, upon the
expiration of such 180-day period, no qualifying household, public
agency, or nonprofit organization has made a bona fide offer to
purchase the property, the Corporation may offer to sell the property
to any purchaser. The Corporation shall actively market eligible single
family properties for sale to low-income families and to low-income
families with members who are veterans.
(3) RECAPTURE OF PROFITS FROM RESALE.--Except as
provided in paragraph (4), if any eligible single family property sold
(A) to a qualifying household, or (B) to a low-income family pursuant
to paragraph (2)(B)(ii), subsection (j)(3)(A), or subsection (k)(2), is
resold by the qualifying household or low-income family during the
1-year period beginning upon initial acquisition by the household or
low-income family, the Corporation shall recapture 75 percent of the
amount of any proceeds from the resale that exceed the sum of (i) the
original sale price for the acquisition of the property by the
qualifying household or low-income family, (ii) the costs of any
improvements to the property made after the date of the acquisition,
and (iii) any closing costs in connection with the acquisition.
(4) EXCEPTIONS TO RECAPTURE REQUIREMENT.--
(A) RELOCATION.--The Corporation may in its discretion
waive the applicability (i) to any qualifying household of the
requirement under paragraph (3) and the requirements relating to
residency of a qualifying household under subparagraphs (B) and (C) of
subsection (p)(12), and (ii) to any low-income family of the
requirement under paragraph (3) and the residency requirements under
paragraph (2)(B)(ii). The Corporation may grant any such waiver only
for good cause shown, including any necessary relocation of the
qualifying household or low-income family.
(B) OTHER RECAPTURE PROVISIONS.--The requirement under
paragraph (3) shall not apply to any eligible single family property
for which, upon resale by the qualifying household or low-income family
during the 1-year period beginning upon initial acquisition by the
household or family, a portion of the sale proceeds or any subsidy
provided in connection with the acquisition of the property by the
household or family is required to be recaptured or repaid under any
other Federal, State, or local law (including section 143(m) of the
Internal Revenue Code of 1986) or regulation or under any sale
agreement.
(5) EXCEPTION TO AVOID DISPLACEMENT OF EXISTING
RESIDENTS.--Notwithstanding the first sentence of paragraph (2),
during the 180-day period following the date on which the Corporation
makes an eligible single family property available for sale, the
Corporation may sell the property to the household residing in the
property, but only if (A) such household was residing in the property
at the time notice regarding the property was provided to
clearinghouses under paragraph (1), (B) such sale is necessary to avoid
the displacement of, and unnecessary hardship to, the resident
household, (C) the resident household intends to occupy the property as
a principal residence for at least 12 months, and (D) the resident
household certifies in writing that the household intends to occupy the
property for at least 12 months.
[Codified to 12 U.S.C. 1831q(c)]
[Source: Section 2[40(c)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 241(a) of title II of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2317), effective December 19, 1991; as amended by
section 602(a)(65) of title IV of the Act of September 23, 1994 (Pub.
L. No. 103--325; 108 Stat. 2291), effective September 23,
1994]
(d) Rules Governing Disposition of Eligible Multifamily
Housing Properties.--
(1) NOTICE TO CLEARINGHOUSES.--Within a reasonable
period of time after acquiring title to an eligible multifamily housing
property, the Corporation shall provide written notice to
clearinghouses. Such notice shall contain basic information about the
property, including but not limited to location, number of units
(identified by number of bedrooms), and information relating to the
estimated fair market value of the property. Each clearinghouse shall
make such information available, upon request, to qualifying
multifamily purchasers. The Corporation shall allow qualifying
multifamily purchasers reasonable access to eligible multifamily
housing properties for purposes of inspection.
(2) EXPRESSION OF SERIOUS INTEREST.--Qualifying
multifamily purchasers may give written notice of serious interest in a
property during a period ending 90 days after the time the Corporation
provides notice under paragraph (1). The notice of serious interest
shall be in such form and include such information as the Corporation
may prescribe.
(3) NOTICE OF READINESS FOR SALE.--Upon the expiration
of the period referred to in paragraph (2) for a property, the
Corporation shall provide written notice to any qualifying multifamily
purchaser that has expressed serious interest in the property. Such
notice shall specify the minimum terms and conditions for sale of the
property.
(4) OFFERS BY QUALIFYING MULTIFAMILY PURCHASERS.--A
qualifying multifamily purchaser receiving notice in accordance with
paragraph (3) shall have 45 days (from the date notice is received) to
make a bona fide offer to purchase the property. The Corporation shall
accept an offer that complies with the terms and conditions established
by the Corporation. If, before the expiration of such 45-day period,
any offer to purchase a property initially accepted by the Corporation
is subsequently rejected or fails (for any reason), the Corporation
shall accept another offer to purchase the property made
during
such period that complies with the terms and
conditions established by the Corporation (if such another offer is
made). The preceding sentence may not be construed to require a
qualifying multifamily purchaser whose offer is accepted during the
45-day period to purchase the property before the expiration of the
period.
(5) EXTENSION OF RESTRICTED OFFER PERIODS.--The
Corporation may provide notice to clearinghouses regarding, and offer
for sale under the provisions of paragraphs (1) through (4), any
eligible multifamily housing property--
(A) in which no qualifying multifamily purchaser has expressed
serious interest during the period referred to in paragraph (2), or
(B) for which no qualifying multifamily purchaser has made a bona
fide offer before the expiration of the period referred to in paragraph
(4),
except that the Corporation may, in the discretion of the
Corporation, alter the duration of the periods referred to in
paragraphs (2) and (4) in offering any property for sale under this
paragraph.
(6) SALE OF MULTIFAMILY PROPERTIES TO OTHER
PURCHASERS.--
(A) TIMING.--If, upon the expiration of the period
referred to in paragraph (2), no qualifying multifamily purchaser has
expressed serious interest in a property, the Corporation may offer to
sell the property, individually or in combination with other
properties, to any purchaser.
(B) LIMITATION ON COMBINATION SALES.--The Corporation
may not sell in combination with other properties any property for
which a qualifying multifamily purchaser has expressed serious interest
in purchasing individually.
(C) EXPIRATION OF OFFER PERIOD.--If, upon the expiration
of the period referred to in paragraph (4), no qualifying multifamily
purchaser has made an offer to purchase a property, the Corporation may
offer to sell the property, individually or in combination with other
properties, to any purchaser.
(7) LOW-INCOME OCCUPANCY REQUIREMENTS.--
(A) SINGLE PROPERTY PURCHASES.--With respect to any
purchase of a single eligible multifamily housing property by a
qualifying multifamily purchaser under paragraph (4) or (5)--
(i) not less than 35 percent of all dwelling units purchased
shall be made available for occupancy by and maintained as affordable
for low-income and very low-income families during the remaining useful
life of the property in which the units are located, provided that
(ii) not less than 20 percent of all dwelling units purchased
shall be made available for occupancy by and maintained as affordable
for very low-income families during the remaining useful life of the
property in which the units are located.
(B) AGGREGATION REQUIREMENTS FOR MULTIPROPERTY
PURCHASES.--With respect to any purchase under paragraph (4) or (5)
by a qualifying multifamily purchaser involving more than one eligible
multifamily housing property as a part of the same negotiation, with
respect to which the purchaser intends to aggregate the low-income
occupancy required under this paragraph over the total number of units
so purchased--
(i) not less than 40 percent of the aggregate number of all
dwelling units purchased shall be made available for occupancy by and
maintained as affordable for low-income and very low-income families
during the remaining useful life of the building or structure in which
the units are located; provided that
(ii) not less than 20 percent of the aggregate number of all
dwelling units purchased shall be made available for occupancy by and
maintained as affordable for very low-income families during the
remaining useful life of the building or structure in which the units
are located; and further provided that
(iii) not less than 10 percent of the dwelling units in each
separate property purchased shall be made available for occupancy by
and maintained as affordable for low-income families during the
remaining useful life of the property in which the units are located.
The requirements of this paragraph shall be contained in the deed or
other recorded instrument.
(8) EXEMPTIONS.--
(A) CONTINUED OCCUPANCY OF CURRENT RESIDENTS.--No
purchaser of an eligible multifamily property may terminate the
occupancy of any person residing in the property on the date of
purchase for purposes of meeting the low-income occupancy requirement
applicable to the property under paragraph (7). The purchaser shall be
considered to be in compliance with this subsection if each newly
vacant dwelling unit is reserved for low-income occupancy until the
low-income occupancy requirement is met.
(B) FINANCIAL INFEASIBILITY.--The Secretary or the State
housing finance agency for the State in which an eligible multifamily
housing property is located may temporarily reduce the low-income
occupancy requirements under paragraph (7) applicable to the property,
if the Secretary or such agency determines that an owner's compliance
with such requirements is no longer financially feasible. The owner of
the property shall make a good-faith effort to return low-income
occupancy to the level required under paragraph (7), and the Secretary
or the State housing finance agency, as appropriate, shall review the
reduction annually to determine whether financial infeasibility
continues to exist.
[Codified to 12 U.S.C. 1831q(d)]
[Source: Section 2[40(d)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 241(a) of title II of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2317), effective December 19, 1991; as amended by
section 602(a)(66) of title IV of the Act of September 23, 1994 (Pub.
L. No. 103--325; 108 Stat. 2291), effective September 23,
1994]
(e) Rent Limitations.--
(1) IN GENERAL.--With respect to properties under
paragraph (2), rents charged to tenants for units made available for
occupancy by very low-income families shall not exceed 30 percent of
the adjusted income of a family whose income equals 50 percent of the
median income for the area, as determined by the Secretary, with
adjustment for family size. Rents charged to tenants for units made
available for occupancy by low-income families other than very
low-income families shall not exceed 30 percent of the adjusted income
of a family whose income equals 65 percent of the median income for the
area, as determined by the Secretary, with adjustment for family size.
(2) APPLICABILITY.--The rent limitations under this
subsection shall apply to any eligible single family property sold
pursuant to subsection (c)(2)(B)(i) and to any eligible multifamily
housing property sold pursuant to subsection (d).
[Codified to 12 U.S.C. 1831q(e)]
[Source: Section 2[40(e)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 241(a) of title II of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2317), effective December 19,
1991]
(f) Preferences for Sales.--
(1) IN GENERAL.--In selling any eligible multifamily
housing property or combinations of eligible residential properties,
the Corporation shall give preference, among substantially similar
offers, to the offer that would reserve the highest percentage of
dwelling units for occupancy or purchase by very low-income and
low-income families and would retain such affordability for the longest
term.
(2) MULTIPROPERTY PURCHASES.--The Corporation shall give
preference, among substantially similar offers made under paragraph (4)
or (5) of subsection (d) to purchase more than one eligible multifamily
housing property as a part of the same negotiation, to offers made by
purchasers who agree to maintain low-income occupancy in each separate
property purchased in compliance with the levels required for
properties under subsection (d)(7)(A).
(3) DEFINITION OF SUBSTANTIALLY SIMILAR OFFERS.--For
purposes of this subsection, a given offer to purchase eligible
multifamily housing property or combinations of such properties shall
be considered to be substantially similar to another offer if the
purchase price under such given offer is not less than 85 percent of
the purchase price under the other offer.
[Codified to 12 U.S.C. 1831q(f)]
[Source: Section 2[40(f)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 241(a) of title II of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2317), effective December 19,
1991]
(g) Financing Sales.--
(1) ASSISTANCE BY CORPORATION.--
(A) SALE PRICE.--The Corporation shall establish a
market value for each eligible multifamily housing property. The
Corporation shall sell eligible multifamily housing property at the net
realizable market value, except that the Corporation may agree to sell
eligible multifamily housing property at a price below the net
realizable market value to the extent necessary to facilitate an
expedited sale of such property and enable a public agency or nonprofit
organization to comply with the low-income occupancy requirements
applicable to such property under subsection (d)(7) of this section.
The Corporation may sell eligible single family property or eligible
condominium property to qualifying households, nonprofit organizations,
and public agencies without regard to any minimum sale price.
(B) PURCHASE LOAN.--The Corporation may provide a loan
at market interest rates to any purchaser of eligible residential
property for all or a portion of the purchase price, which loan shall
be secured by a first or second mortgage on the property. The
Corporation may provide the loan at below market interest rates to the
extent necessary to facilitate an expedited sale of eligible
residential property and permit (i) a low-income family to purchase an
eligible single family property under subsection (c) of this section,
or (ii) a public agency or nonprofit organization to comply with the
low-income occupancy requirements applicable to the purchase of an
eligible residential property under subsection (c) or (d) of this
section. The Corporation shall provide loans under this subparagraph in
a form permitting sale or transfer of the loan to a subsequent holder.
In providing financing for combinations of eligible multifamily housing
properties under this section, the Corporation may hold a participating
share, including a subordinate participation. The Corporation shall
periodically provide, to a wide range of minority- and women-owned
businesses engaged in providing affordable housing and to nonprofit
organizations, more than 50 percent of the control of which is held by
1 or more minority individuals, that are engaged in providing
affordable housing, information that is sufficient to inform such
businesses and organizations of the availability and terms of financing
under this subparagraph; such information may be provided directly, by
notices published in periodicals and other publications that regularly
provide information to such businesses or organizations, and through
persons and organizations that regularly provide information or
services to such businesses or organizations. For purposes of this
subparagraph, the terms "women-owned business" and
"minority-owned business" have the meanings given such terms in
section 21A(r) of the Federal Home Loan Bank Act, and the term
"minority" has the meaning given such term in section 1204(c)(3)
of the Financial Institutions Reform, Recovery, and Enforcement Act of
1989.
(2) ASSISTANCE BY HUD.--The Secretary shall take such
action as may be necessary to expedite the processing of applications
for assistance under section 202 of the Housing Act of 1959 [12 U.S.C.
§ 1701q], the United States Housing Act of 1937 [42 U.S.C. § 1437
et seq.], Title IV of the McKinney-Vento Homeless Assistance Act [42
U.S.C. § 11360 et seq.], and the National Housing Act [12 U.S.C.
§ 1701 et seq.], to enable any organization or individual to
purchase eligible residential property.
(3) ASSISTANCE BY FMHA.--The Secretary of Agriculture
shall take such action as may be necessary to expedite the processing
of applications for assistance under Title V of the Housing Act of 1949
[42 U.S.C. § 1471 et seq.] to enable any organization or individual
to purchase eligible residential property.
(4) EXCEPTION TO DISPOSITION RULES.--Notwithstanding the
requirements under paragraphs (1), (2), (3), (4), (6), and (8) of
subsection (d) of this section, the Corporation may provide for the
disposition of eligible multifamily housing properties as necessary to
facilitate purchase of such properties for use in connection with
section 202 of the Housing Act of 1959.
(5) BULK ACQUISITIONS UNDER HOME INVESTMENT PARTNERSHIPS
ACT.--
(A) PURCHASE PRICE.--In providing for bulk acquisition
of eligible single family properties by participating jurisdictions for
inclusion in affordable housing activities under title II of the
Cranston-Gonzalez National Affordable Housing Act [42 U.S.C. § 12721
et seq.], the Corporation shall agree to an amount to be paid for
acquisition of such properties. The acquisition price shall include
discounts for bulk purchase and for holding of the property such that
the acquisition price for each property shall not exceed the fair
market value of the property, as valued individually.
(B) EXEMPTION.--To the extent necessary to facilitate
sale of properties under this paragraph, the requirements of
subsections (c) and (f) of this section and of paragraph (1) of this
subsection shall not apply to such transactions and properties involved
in such transactions.
(C) INVENTORIES.--To facilitate acquisitions by such
participating jurisdictions, the Corporation shall provide the
participating jurisdictions with inventories of eligible single family
properties not less than 4 times each year.
[Codified to 12 U.S.C. 1831q(g)]
[Source: Section 2[40(g)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 241(a) of title II of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2317), effective December 19, 1991; amended by
section 14(d)(2) of the Act of December 17, 1993 (Pub. L. No. 103--204;
107 Stat. 2396), effective December 17, 1993]
(h) Coordination With Other Programs.--
(1) USE OF SECONDARY MARKET AGENCIES.--In the
disposition of eligible residential properties, the Corporation (in
consultation with the Secretary) shall explore opportunities to work
with secondary market entities to provide housing for low- and
moderate-income families.
(2) CREDIT ENHANCEMENT.--
(A) IN GENERAL.--With respect to such properties, the
Secretary may, consistent with statutory authorities, work through the
Federal Housing Administration, the Government National Mortgage
Association, the Federal National Mortgage Association, the Federal
Home Loan Mortgage Corporation, and other secondary market entities to
develop risk-sharing structures, mortgage insurance, and other credit
enhancements to assist in the provision of property ownership, rental,
and cooperative housing opportunities for low- and moderate-income
families.
(B) CERTAIN TAX-EXEMPT BONDS.--The Corporation may
provide credit enhancements with respect to tax-exempt bonds issued on
behalf of nonprofit organizations pursuant to section 103, and subpart
A of part IV of subchapter A of chapter 1, of the Internal Revenue Code
of 1986, with respect to the disposition of eligible residential
properties for the purposes described in subparagraph (A).
(3) NATIONAL AFFORDABLE HOUSING ACT.--The Corporation
shall coordinate the disposition of eligible residential property under
this section with appropriate programs and provisions of, and
amendments made by, the Cranston-Gonzalez National Affordable Housing
Act, including titles II [42 U.S.C. § 12721 et seq.] and IV of such
Act.
[Codified to 12 U.S.C. 1831q(h)]
[Source: Section 2[40(h)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 241(a) of title II of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2317), effective December 19,
1991]
(i) Exemption for Certain Transactions With Insured Depository
Institutions.--The provisions of this section shall not apply with
respect to any eligible residential property after the date the
Corporation enters into a contract to sell such property to an insured
depository institution (as defined in section 3), including any sale
in
connection with a transfer of all or
substantially all of the assets of a closed insured depository
institution (including such property) to another insured depository
institution.
[Codified to 12 U.S.C. 1831q(i)]
[Source: Section 2[40(i)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 241(a) of title II of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2317), effective December 19,
1991]
(j) Transfer of Certain Eligible Residential Properties to
State Housing Agencies for Disposition.--Notwithstanding
subsections (c), (d), (f), and (g), the Corporation may transfer
eligible residential properties to the State housing finance agency or
any other State housing agency for the State in which the property is
located, or to any local housing agency in whose jurisdiction the
property is located. Transfers of eligible residential properties under
this subsection may be conducted by direct sale, consignment sale, or
any other method the Corporation considers appropriate and shall be
subject to the following requirements:
(1) INDIVIDUAL OR BULK TRANSFER.--The Corporation may
transfer such properties individually or in bulk, as agreed to by the
Corporation and the State housing finance agency or State or local
housing agency.
(2) ACQUISITION PRICE.--The acquisition price paid by
the State housing finance agency or State or local housing agency to
the Corporation for properties transferred under this subsection shall
be an amount agreed to by the Corporation and the transferee agency.
(3) LOW-INCOME USE.--Any State housing finance agency or
State or local housing agency acquiring properties under this
subsection shall offer to sell or transfer the properties only as
follows:
(A) ELIGIBLE SINGLE FAMILY PROPERTIES.--For eligible
single family properties--
(i) to purchasers described under subparagraphs (A) and (B) of
subsection (c)(2);
(ii) if the purchaser is a purchaser described under subsection
(c)(2)(B)(i), subject to the rent limitations under subsection (e)(1);
(iii) subject to the requirement in the second sentence of
subsection (c)(2); and
(iv) subject to recapture by the Corporation of excess proceeds
from resale of the properties under paragraphs (3) and (4) of
subsection (c).
(B) ELIGIBLE MULTIFAMILY HOUSING PROPERTIES.--For
eligible multifamily housing properties--
(i) to qualifying multifamily purchasers;
(ii) subject to the low-income occupancy requirements under
subsection (d)(7);
(iii) subject to the provisions of subsection (d)(8);
(iv) subject to a preference, among financially acceptable
offers, to the offer that would reserve the highest percentage of
dwelling units for occupancy or purchase by very low- and low-income
families and would retain such affordability for the longest term; and
(v) subject to the rent limitations under subsection (e)(1).
(4) AFFORDABILITY.--The State housing finance agency or
State or local housing agency shall endeavor to make the properties
transferred under this subsection more affordable to low-income
families based upon the extent to which the acquisition price of a
property under paragraph (2) is less than the market value of the
property.
[Codified to 12 U.S.C. 1831q(j)]
[Source: Section 2[40(j)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 241(a) of title II of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2317), effective December 19,
1991]
(k) Exception for Sales to Nonprofit Organizations and Public
Agencies.--
(1) SUSPENSION OF OFFER PERIODS.--With respect to
any eligible residential property, the Corporation may (in the
discretion of the Corporation) suspend any of the requirements of
paragraphs (1) and (2) of subsection (c) and paragraphs (1) through (4)
of subsection (d), as applicable, but only to the extent that for the
duration of the suspension
the Corporation negotiates the sale of the
property to a nonprofit organization or public agency. If the property
is not sold pursuant to such negotiations, the requirements of any
provisions suspended shall apply upon the termination of the
suspension. Any time period referred to in such subsections shall toll
for the duration of any suspension under this paragraph.
(2) USE RESTRICTIONS.--
(A) ELIGIBLE SINGLE FAMILY PROPERTY.--Any eligible
single family property sold under this subsection shall be (i) made
available for occupancy by and maintained as affordable for low-income
families for the remaining useful life of the property, or made
available for purchase by such families, (ii) subject to the rent
limitations under subsection (e)(1), (iii) subject to the requirements
relating to residency of a qualifying household under subsection
(p)(12) and to residency of a low-income family under subsection
(c)(2)(B), and (iv) subject to recapture by the Corporation of excess
proceeds from resale of the property under paragraphs (3) and (4) of
subsection (c).
(B) ELIGIBLE MULTIFAMILY HOUSING PROPERTY.--Any eligible
multifamily housing property sold under this subsection shall comply
with the low-income occupancy requirements under subsection (d)(7) and
shall be subject to the rent limitations under subsection (e)(1).
[Codified to 12 U.S.C. 1831q(k)]
[Source: Section 2[40(k)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 241(a) of title II of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2317), effective December 19,
1991]
(l) Rules Governing Disposition of
Eligible Condominium Property.--
(1) NOTICE TO CLEARINGHOUSES.--Within a reasonable
period of time after acquiring title to an eligible condominium
property, the Corporation shall provide written notice to
clearinghouses. Such notice shall contain basic information about the
property. Each clearinghouse shall make such information available,
upon request, to purchasers described in subparagraphs (A) through (D)
of paragraph (2). The Corporation shall allow such purchasers
reasonable access to an eligible condominium property for purposes of
inspection.
(2) OFFERS TO SELL.--For the 180-day period following
the date on which the Corporation makes an eligible condominium
property available for sale, the Corporation may offer to sell the
property, at the discretion of the Corporation, to 1 or more of the
following purchasers:
(A) Qualifying households.
(B) Nonprofit organizations.
(C) Public agencies.
(D) For-profit entities.
(3) LOW-INCOME OCCUPANCY REQUIREMENTS.--
(A) IN GENERAL.--Except as provided in subparagraph (B),
any nonprofit organization, public agency, or for-profit entity that
purchases an eligible condominium property shall (i) make the property
available for occupancy by and maintain it as affordable for low-income
families for the remaining useful life of the property, or (ii) make
the property available for purchase by any such family who, except as
provided in paragraph (5), agrees to occupy the property as a principal
residence for at least 12 months and certifies in writing that the
family intends to occupy the property for at least 12 months. The
restriction described in clause (i) of the preceding sentence shall be
contained in the deed or other recorded instrument.
(B) MULTIPLE-UNIT PURCHASES.--If any nonprofit
organization, public agency, or for-profit entity purchases more than 1
eligible condominium property as a part of the same negotiation or
purchase, the Corporation may (in the discretion of the Corporation)
waive the requirement under subparagraph (A) and provide instead that
not less than 35 percent of all eligible condominium properties
purchased shall be (i) made available for occupancy by and maintained
as affordable for low-income families for the remaining
useful life of the property, or (ii) made
available for purchase by any such family who, except as provided in
paragraph (5), agrees to occupy the property as a principal residence
for at least 12 months and certifies in writing that the family intends
to occupy the property for at least 12 months. The restriction
described in clause (i) of the preceding sentence shall be contained in
the deed or other recorded instrument.
(C) SALE TO OTHER PURCHASERS.--If, upon the expiration
of the 180-day period referred to in paragraph (2), no purchaser
described in subparagraphs (A) through (D) of paragraph (2) has made a
bona fide offer to purchase the property, the Corporation may offer to
sell the property to any other purchaser.
(4) RECAPTURE OF PROFITS FROM RESALE.--Except as
provided in paragraph (5), if any eligible condominium property sold
(A) to a qualifying household, or (B) to a low-income family pursuant
to paragraph (3)(A)(ii) or (3)(B)(ii), is resold by the qualifying
household or low-income family during the 1-year period beginning upon
initial acquisition by the household or family, the Corporation shall
recapture 75 percent of the amount of any proceeds from the resale that
exceed the sum of (i) the original sale price for the acquisition of
the property by the qualifying household or low-income family, (ii) the
costs of any improvements to the property made after the date of the
acquisition, and (iii) any closing costs in connection with the
acquisition.
(5) EXCEPTION TO RECAPTURE REQUIREMENT.--The Corporation
(or its successor) may in its discretion waive the applicability to any
qualifying household or low-income family of the requirement under
paragraph (4) and the requirements relating to residency of a
qualifying household or low-income family (under subsection (p)(12) and
paragraph (3) of this subsection, respectively). The Corporation may
grant any such a waiver only for good cause shown, including any
necessary relocation of the qualifying household or low-income family.
(6) LIMITATIONS ON MULTIPLE UNIT PURCHASES.--The
Corporation may not sell or offer to sell as part of the same
negotiation or purchase any eligible condominium properties that are
not located in the same condominium project (as such term is defined in
section 604 of the Housing and Community Development Act of 1980). The
preceding sentence may not be construed to require all eligible
condominium properties offered or sold as part of the same negotiation
or purchase to be located in the same structure.
(7) RENT LIMITATIONS.--Rents charged to tenants of
eligible condominium properties made available for occupancy by very
low-income families shall not exceed 30 percent of the adjusted income
of a family whose income equals 50 percent of the median income for the
area, as determined by the Secretary, with adjustment for family size.
Rents charged to tenants of eligible condominium properties made
available for occupancy by low-income families other than very
low-income families shall not exceed 30 percent of the adjusted income
of a family whose income equals 65 percent of the median income for the
area, as determined by the Secretary, with adjustment for family size.
[Codified to 12 U.S.C. 1831q(l)]
[Source: Section 2[40(l)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 241(a) of title II of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2317), effective December 19,
1991]
(m) Liability Provisions.--
(1) IN GENERAL.--The provisions of this section, or any
failure by the Corporation to comply with such provisions, may not be
used by any person to attack or defeat any title to property after it
is conveyed by the Corporation.
(2) LOW-INCOME OCCUPANCY.--The low-income occupancy
requirements under subsections (c), (d), (j)(3), (k)(2), and (l)(3)
shall be judicially enforceable against purchasers of property under
this section and their successors in interest by affected very low- and
low-income families, State housing finance agencies, and any agency,
corporation, or authority of the United States. The parties specified
in the preceding sentence shall be entitled to reasonable attorney fees
upon prevailing in any such judicial action.
(3) CLEARINGHOUSES.--A clearinghouse shall not be
subject to suit for its failure to comply with the requirements of this
section.
(4) CORPORATION.--The Corporation shall not be liable to
any depositor, creditor, or shareholder of any insured depository
institution for which the Corporation has been appointed receiver or
conservator, or of any subsidiary corporation of a depository
institution under receivership or conservatorship, or any claimant
against such institution or subsidiary, because the disposition of
assets of the institution or the subsidiary under this section affects
the amount of return from the assets.
[Codified to 12 U.S.C. 1831q(m)]
[Source: Section 2[40(m)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 241(a) of title II of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2317), effective December 19, 1991; amended by
section 14(f)(2) of the Act of December 17, 1993 (Pub. L. No. 103--204;
107 Stat. 2398), effective December 17, 1993]
(n) Unified Affordable Housing Programs.--
(1) IN GENERAL.--Not later than 4 months after
[December 17, 1993], the date of enactment of the Resolution Trust
Corporation Completion Act, the Corporation shall enter into an
agreement, as described in paragraph (3), with the Resolution Trust
Corporation that sets out a plan for the orderly unification of the
Corporation's activities, authorities, and responsibilities under this
section with the authorities, activities, and responsibilities of the
Resolution Trust Corporation pursuant to section 21A(c) of the Federal
Home Loan Bank Act in a manner that best achieves an effective and
comprehensive affordable housing program management structure. The
agreement shall be entered into after consultation with the Affordable
Housing Advisory Board under section 14(b) of the Resolution Trust
Corporation Completion Act.
(2) AUTHORITY AND IMPLEMENTATION.--The Corporation shall
have the authority to carry out the provisions of the agreement entered
into pursuant to paragraph (1) and shall implement such agreement as
soon as practicable but in no event later than 8 months after
[December 17, 1993], the date of enactment of the Resolution Trust
Corporation Completion Act.
(3) TERMS OF AGREEMENT.--The agreement required under
paragraph (1) shall provide a plan for--
(A) a program unifying all activities and responsibilities of the
Corporation and the Resolution Trust Corporation, and the design of the
unified program shall take into consideration the substantial
experience of the Resolution Trust Corporation regarding--
(i) seller financing;
(ii) technical assistance;
(iii) marketing skills and relationships with public and
nonprofit entities; and
(iv) staff resources;
(B) the elimination of duplicative and unnecessary administrative
costs and resources;
(C) the management structure of the unified program;
(D) a timetable for the unification; and
(E) a methodology to determine the extent to which the provisions
of this section shall be effective, in accordance with the limitations
under subsection (b)(2).
(4) TRANSFER TO FDIC.--Beginning not later than October
1, 1995, the Corporation shall carry out any remaining authority and
responsibilities of the Resolution Trust Corporation, as set forth in
section 21A(c) of the Federal Home Loan Bank Act.
[Codified to 12 U.S.C. 1831q(n)]
[Source: Section 2[40(n)] of the Act of September 21,
1950 (Pub. L. No. 797; 64 Stat. 882), effective September 21, 1950, as
added by section 241(a) of title II of the Act of December 19, 1991
(Pub. L. No. 102--242; 105 Stat. 2317), effective December 19, 1991;
amended by section 14(e)(2) of the Act of December 17, 1993 (Pub. L.
No. 103--204; 107 Stat. 2397), effective December 17,
1993]
(o) Report.--To the extent applicable, in the annual
report submitted by the Secretary to the Congress under section 8 of
the Department of Housing and Urban Development Act, the Secretary
shall include a detailed description of any activities under this
section, including recommendations for any additional authority the
Secretary considers necessary to implement the provisions of this
section.
[Codified to 12 U.S.C. 1831q(o)]
[Source: Section 2[40(o)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 241(a) of title II of the Act of December 19, 1991 (Pub. L. No.
102--242; 105 Stat. 2317), effective December 19,
1991]
(p) Definitions.--For purposes of this section:
(1) ADJUSTED INCOME and ADJUSTED INCOME--The terms
"adjusted income" and "income" shall have the meaning given
such terms in section 3(b) of the United States Housing Act of 1937
[42 U.S.C. § 1437a(b)].
(2) CLEARINGHOUSE.--The term "clearinghouse"
means--
(A) the State housing finance agency for the State in which an
eligible residential property or eligible condominium property is
located;
(B) the Office of Community Investment (or other comparable
division) within the Federal Housing Finance Board; and
(C) any national nonprofit organizations (including any nonprofit
entity established by the corporation established under title IX of the
Housing and Community Development Act of 1968 [42 U.S.C. § 3931])
that the Corporation determines has the capacity to act as a
clearinghouse for information.
(3) CORPORATION.--The term "Corporation" means the
Federal Deposit Insurance Corporation acting in its corporate capacity
or its capacity as receiver.
(4) ELIGIBLE CONDOMINIUM PROPERTY.--The term
"eligible condominium property" means a condominium unit, as such
term is defined in section 604 of the Housing and Community Development
Act of 1980--
(A) to which such Corporation acquires title in its corporate
capacity, its capacity as conservator, or its capacity as receiver
(including in its capacity as the sole owner of a subsidiary
corporation of a depository institution under conservatorship or
receivership, which subsidiary has as its principal business the
ownership of real property); and
(B) that has an appraised value that does not exceed the amount
provided in section 203(b)(2)(A) of the National Housing Act [12
U.S.C. § 1709(b)(2)(A)] except that such amount shall not exceed
$101,250 in the case of a 1-family residence, $114,000 in the case of a
2-family residence, $138,000 in the case of a 3-family residence, and
$160,000 in the case of a 4-family residence.
(5) ELIGIBLE MULTIFAMILY HOUSING PROPERTY.--The term
"eligible multifamily housing property" means a property
consisting of more than 4 dwelling units--
(A) to which the Corporation acquires title in its corporate
capacity, its capacity as conservator, or its capacity as receiver
(including in its capacity as the sole owner of a subsidiary
corporation of a depository institution under conservatorship or
receivership, which subsidiary has as its principal business the
ownership of real property); and
(B) that has an appraised value that does not exceed the
applicable dollar amount specified in section 221(d)(3)(ii) of the
National Housing Act [12 U.S.C. § 1715l(d)(3)(ii)] for
elevator-type structures, as such dollar amount is increased under such
section for geographical areas or on a project-by-project basis (except
that any such increase on a project-by-project basis shall be made
pursuant to a determination by the Corporation that such increase is
necessary).
(6) ELIGIBLE RESIDENTIAL PROPERTY.--The term
"eligible residential property" includes eligible single family
properties and eligible multifamily housing properties.
(7) ELIGIBLE SINGLE FAMILY PROPERTY.--The term
"eligible single family property" means a 1- to 4-family
residence (including a manufactured home)--
(A) to which the Corporation acquires title in its corporate
capacity, its capacity as conservator, or its capacity as receiver
(including in its capacity as the sole owner of a
subsidiary corporation of a depository
institution under conservatorship or receivership, which subsidiary has
as its principal business the ownership of real property); and
(B) that has an appraised value that does not exceed the amount
provided in section 203(b)(2)(A) of the National Housing Act except
that such amount shall not exceed $101,250 in the case of a 1-family
residence, $114,000 in the case of a 2-family residence, $138,000 in
the case of a 3-family residence, and $160,000 in the case of a
4-family residence.
(8) LOW-INCOME FAMILIES.--The term "low-income
families" means families and individuals whose incomes do not exceed
80 percent of the median income of the area involved, as determined by
the Secretary, with adjustment for family size.
(9) NET REALIZABLE MARKET VALUE.--The term "net
realizable market value" means a price below the market value that
takes into account (A) any reductions in holding costs resulting from
the expedited sale of a property, including foregone real estate taxes,
insurance, maintenance costs, security costs, and loss of use of funds,
and (B) the avoidance, if applicable, of fees paid to real estate
brokers, auctioneers, or other individuals or organizations involved in
the sale of property owned by the Corporation.
(10) NONPROFIT ORGANIZATION.--The term "nonprofit
organization" means a private organization (including a limited
equity cooperative)--
(A) no part of the earnings of which inures to the benefit of any
member, shareholder, founder, contributor, or individual; and
(B) that is approved by the Corporation as to financial
responsibility.
(11) PUBLIC AGENCY.--The term "public agency"
means any Federal, State, local, or other governmental entity, and
includes any public housing agency.
(12) QUALIFYING HOUSEHOLD.--The term "qualifying
household" means a household--
(A) who intends to occupy eligible single family property as a
principal residence;
(B) who agrees to occupy the property as a principal residence
for at least 12 months;
(C) who certifies in writing that the household intends to occupy
the property as a principal residence for at least 12 months; and
(D) whose income does not exceed 115 percent of the median income
for the area, as determined by the Secretary, with adjustment for
family size.
(13) QUALIFYING MULTIFAMILY PURCHASER.--The term
"qualifying multifamily purchaser" means--
(A) a public agency;
(B) a nonprofit organization; or
(C) a for-profit entity, which makes a commitment (for itself or
any related entity) to comply with the low-income occupancy
requirements under subsection (d)(7) for any eligible multifamily
housing property for which an offer to purchase is made during or after
the periods specified under subsection (d).
(14) SECRETARY.--The term "Secretary" means the
Secretary of Housing and Urban Development.
(15) STATE HOUSING FINANCE AGENCY.--The term "State
housing finance agency" means the public agency, authority,
corporation, or other instrumentality of a State that has the authority
to provide residential mortgage loan financing throughout the State.
(16) VERY LOW-INCOME FAMILIES.--The term "very
low-income families" means families and individuals whose incomes do
not exceed 50 percent of the median income of the area involved, as
determined by the Secretary, with adjustment for family size.
[Codified to 12 U.S.C. 1831q(p)]
[Source: Section 2[40(p)] of the Act of September
21, 1950 (Pub. L. No. 797; 64 Stat. 882), effective September 21, 1950,
as added by section 241(a) of title II of the Act of December 19, 1991
(Pub. L. No. 102--242; 105 Stat. 2317), effective December 19, 1991; as
amended by the Act of October 6, 1992 (Pub. L. No. 102-389; 106 Stat.
1592-1593), effective October 6, 1992; section 503(c)(4) of title V of
the Act of October 28, 1992 (Pub. L. No. 102--550; 106
Stat. 3780), effective October 28, 1992;
section 13 of the Act of December 17, 1993 (Pub. L. No. 103--204; 107
Stat. 2391), effective December 17, 1993]
(q) Notice to Clearinghouses Regarding Ineligible
Properties.--
(1) IN GENERAL.--Within a reasonable period of time
after acquiring title to an ineligible residential property, the
Corporation shall, to the extent practicable, provide written notice to
clearinghouses.
(2) CONTENT.--For ineligible single family properties,
such notice shall contain the same information about such properties
that the notice required under subsection (c)(1) contains with respect
to eligible single family properties. For ineligible multifamily
housing properties, such notice shall contain the same information
about such properties that the notice required under subsection (d)(1)
contains with respect to eligible multifamily housing properties. For
ineligible condominium properties, such notice shall contain the same
information about such properties that the notice required under
subsection (l)(1) contains with respect to eligible condominium
properties.
(3) AVAILABILITY.--The clearinghouses shall make such
information available, upon request, to other public agencies, other
nonprofit organizations, qualifying households, qualifying multifamily
purchasers, and other purchasers, as appropriate.
(4) DEFINITIONS.--For purposes of this subsection, the
following definitions shall apply:
(A) INELIGIBLE CONDOMINIUM PROPERTY.--The term
"ineligible condominium property" means any eligible condominium
property to which the provisions of this section do not apply as a
result of the limitations under subsection (b)(2)(A).
(B) INELIGIBLE MULTIFAMILY HOUSING PROPERTY.--The term
"ineligible multifamily housing property" means any eligible
multifamily housing property to which the provisions of this section do
not apply as a result of the limitations under subsection (b)(2)(A).
(C) INELIGIBLE SINGLE FAMILY PROPERTY.--The term
"ineligible single family property" means any eligible single
family property to which the provisions of this section do not apply as
a result of the limitations under subsection (b)(2)(A).
(D) INELIGIBLE RESIDENTIAL PROPERTY.--The term
"ineligible residential property" includes ineligible single
family properties, ineligible multifamily housing properties, and
ineligible condominium properties.
[Codified to 12 U.S.C. 1831q(q)]
[Source: Section 2[40(q)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 14(a)(2) of the Act of December 17, 1993 (Pub. L. No. 103-204;
107 Stat. 2393), effective December 17, 1993]
NOTES AND DECISIONS
Section 14(b) of the Act of December 17, 1993 (Pub. L. No. 103-204;
107 Stat. 2393) provides as follows:
"(b) Affordable Housing Advisory Board.--
"(1) ESTABLISHMENT.--There is hereby established the
Affordable Housing Advisory Board (in this subsection referred to as
the "Advisory Board") to advise the Thrift Depositor Protection
Oversight Board and the Board of Directors of the Federal Deposit
Insurance Corporation on policies and programs related to the provision
of affordable housing, including the operation of the affordable
programs.
"(2) MEMBERSHIP.--The Advisory Board shall consist
of--
"(A) the Secretary of Housing and Urban Development;
"(B) the Chairperson of the Board of Directors of the Federal
Deposit Insurance Corporation (or the Chairperson's delegate), who
shall be a nonvoting member;
"(C) the Chairperson of the Thrift Depositor Protection
Oversight Board (or the Chairperson's delegate), who shall be a
nonvoting member;
"(D) 4 persons appointed by the Secretary of Housing and
Urban Development not later than the expiration of the
90-
day period beginning on the date of the
enactment of this Act, who represent the interests of individuals and
organizations involved in using the affordable housing programs
(including nonprofit organizations, public agencies, and for-profit
organizations that purchase properties under the affordable housing
programs, organizations that provide technical assistance regarding the
affordable housing programs, and organizations that represent the
interest of low- and moderate-income families); and
"(E) 2 persons who are members of the National Housing
Advisory Board pursuant to section 21A(d)(2)(B)(ii) of the Federal Home
Loan Bank Act (as in effect before the effective date of the repeal
under subsection (c)(2)), who shall be appointed by such Board before
such effective date.
"(3) TERMS.--Each member shall be appointed for a
term of 4 years, except as provided in paragraphs (4) and (5).
"(4) TERMS OF INITIAL APPOINTEES.--
"(A) PERMANENT POSITIONS.--As designated by the
Secretary of Housing and Urban Development at the time of appointment,
of the members first appointed under paragraph (2)(D)--
"(i) 1 shall be appointed for a term of 1 year;
"(ii) 1 shall be appointed for a term of 2 years;
"(iii) 1 shall be appointed for a term of 3 years; and
"(iv) 1 shall be appointed for a term of 4 years.
"(B) INTERIM MEMBERS.--The members of the Advisory
Board under paragraph (2)(E) shall be appointed for a single term of 4
years, which shall begin upon the earlier of (i) the expiration of the
90-day period beginning on the date of the enactment of this Act, or
(ii) the first meeting of the Advisory Board.
"(5) VACANCIES.--Any member appointed to fill a
vacancy occurring before the expiration of the term for which the
member's predecessor was appointed shall be appointed only for the
remainder of that term. A member may serve after the expiration of that
member's term until a successor has taken office. A vacancy in the
Commission shall be filled in the manner in which the original
appointment was made.
"(6) MEETINGS.--
"(A) TIMING AND LOCATION.--The Advisory Board shall
meet 4 times a year, or more frequently if requested by the Thrift
Depositor Protection Oversight Board or the Board of Directors of the
Federal Deposit Insurance Corporation. In each year, the Advisory Board
shall conduct such meetings at various locations in different regions
of the United States in which substantial residential property assets
of the Federal Deposit Insurance Corporation or the Resolution Trust
Corporation are located. The first meeting of the Advisory Board shall
take place not later than the expiration of the 90-day period beginning
on the date of the enactment of this Act.
"(B) ADVICE.--The Advisory Board shall submit
information and advice resulting from each meeting, in such form as the
Board considers appropriate, to the Thrift Depositor Protection
Oversight Board and the Board of Directors of the Federal Deposit
Insurance Corporation.
"(7) ANNUAL REPORTS.--For each year, the Advisory
Board shall submit a report containing its finding and recommendations
to the Committee on Banking, Housing, and Urban affairs of the Senate
and the Committee on Banking, Finance and Urban Affairs of the House of
Representatives, the Federal Deposit Insurance Corporation, and the
Resolution Trust Corporation. The first such report shall be made not
later than the expiration of the 6-month period beginning on the date
of the enactment of this Act.
"(8) DEFINITION.--For purposes of this subsection,
the term "affordable housing programs" means the program under
section 21A(c) of the Federal Home Loan Bank Act and the program under
section 40 of the Federal Deposit Insurance Act.
"(9) SUNSET.--The Advisory Board established under
this subsection shall terminate on September 30, 1998.
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