Housing and Economic Recovery Act of 2008


 * Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

{{SECTION|SEC. 1.|SECTION 1}}. SHORT TITLE; TABLE OF CONTENTS.

 * (a) Short Title.—
 * This Act may be cited as the ``Housing and Economic Recovery Act of 2008´´.


 * (b) Table of Content. —
 * The table of contents for this Act is as follows:


 * Sec. 1. Short Title; Table of Contents.
 * DIVISION A—HOUSING FINANCE REFORM
 * Sec. 1001. Short title.
 * Sec. 1002. Definitions.


 * TITLE I—REFORM OF REGULATION OF ENTERPRISES


 * Subtitle A—Improvement of Safety and Soundness Supervision
 * Sec. 1101. Establishment of the Federal Housing Finance Agency.
 * Sec. 1102. Duties and authorities of the Director.
 * Sec. 1103. Federal Housing Finance Oversight Board.
 * Sec. 1104. Authority to require reports by regulated entities.
 * Sec. 1105. Examiners and accountants; authority to contract for reviews of regulated entities; ombudsman.
 * Sec. 1106. Assessments.
 * Sec. 1107. Regulations and orders.
 * Sec. 1108. Prudential management and operations standards.
 * Sec. 1109. Review of and authority over enterprise assets and liabilities.
 * Sec. 1110. Risk-based capital requirements.
 * Sec. 1111. Minimum capital levels.
 * Sec. 1112. Registration under the securities laws.
 * Sec. 1113. Prohibition and withholding of executive compensation.
 * Sec. 1114. Limit on golden parachutes.
 * Sec. 1115. Reporting of fraudulent loans.
 * Sec. 1116. Inclusion of minorities and women; diversity in Agency workforce.
 * Sec. 1117. Temporary authority for purchase of obligations of regulated entities by Secretary of Treasury.
 * Sec. 1118. Consultation between the Director of the Federal Housing Finance Agency and the Board of Governors of the Federal Reserve System to ensure financial market stability.


 * Subtitle B—Improvement of Mission Supervision
 * Sec. 1121. Transfer of program approval and housing goal oversight.
 * Sec. 1122. Assumption by the Director of certain other HUD responsibilities.
 * Sec. 1123. Review of enterprise products.
 * Sec. 1124. Conforming loan limits.
 * Sec. 1125. Annual housing report.
 * Sec. 1126. Public use database.
 * Sec. 1127. Reporting of mortgage data.
 * Sec. 1128. Revision of housing goals.
 * Sec. 1129. Duty to serve underserved markets.
 * Sec. 1130. Monitoring and enforcing compliance with housing goals.
 * Sec. 1131. Affordable housing programs.
 * Sec. 1132. Financial education and counseling.
 * Sec. 1133. Transfer and rights of certain HUD employees.


 * Subtitle C—Prompt Corrective Action
 * Sec. 1141. Critical capital levels.
 * Sec. 1142. Capital classifications.
 * Sec. 1143. Supervisory actions applicable to undercapitalized regulated entities.
 * Sec. 1144. Supervisory actions applicable to significantly undercapitalized regulated entities.
 * Sec. 1145. Authority over critically undercapitalized regulated entities.


 * Subtitle D—Enforcement Actions
 * Sec. 1151. Cease and desist proceedings.
 * Sec. 1152. Temporary cease and desist proceedings.
 * Sec. 1153. Removal and prohibition authority.
 * Sec. 1154. Enforcement and jurisdiction.
 * Sec. 1155. Civil money penalties.
 * Sec. 1156. Criminal penalty.
 * Sec. 1157. Notice after separation from service.
 * Sec. 1158. Subpoena authority.


 * Subtitle E—General Provisions
 * Sec. 1161. Conforming and technical amendments.
 * Sec. 1162. Presidentially-appointed directors of enterprises.
 * Sec. 1163. Effective date.


 * TITLE II—FEDERAL HOME LOAN BANKS
 * Sec. 1201. Recognition of distinctions between the enterprises and the Federal Home Loan Banks.
 * Sec. 1202. Directors.
 * Sec. 1203. Definitions.
 * Sec. 1204. Agency oversight of Federal Home Loan Banks.
 * Sec. 1205. Housing goals.
 * Sec. 1206. Community development financial institutions.
 * Sec. 1207. Sharing of information among Federal Home Loan Banks.
 * Sec. 1208. Exclusion from certain requirements.
 * Sec. 1209. Voluntary mergers.
 * Sec. 1210. Authority to reduce districts.
 * Sec. 1211. Community financial institution members.
 * Sec. 1212. Public use database; reports to Congress.
 * Sec. 1213. Semiannual reports.
 * Sec. 1214. Liquidation or reorganization of a Federal Home Loan Bank.
 * Sec. 1215. Study and report to Congress on securitization of acquired member assets.
 * Sec. 1216. Technical and conforming amendments.
 * Sec. 1217. Study on Federal Home Loan Bank advances.
 * Sec. 1218. Federal Home Loan Bank refinancing authority for certain residential mortgage loans.


 * TITLE III—TRANSFER OF FUNCTIONS, PERSONNEL, AND PROPERTY OF OFHEO AND THE FEDERAL HOUSING FINANCE BOARD
 * Subtitle A—OFHEO
 * Sec. 1301. Abolishment of OFHEO.
 * Sec. 1302. Continuation and coordination of certain actions.
 * Sec. 1303. Transfer and rights of employees of OFHEO.
 * Sec. 1304. Transfer of property and facilities.


 * Subtitle B—Federal Housing Finance Board
 * Sec. 1311. Abolishment of the Federal Housing Finance Board.
 * Sec. 1312. Continuation and coordination of certain actions.
 * Sec. 1313. Transfer and rights of employees of the Federal Housing Finance Board.
 * Sec. 1314. Transfer of property and facilities.


 * TITLE IV—HOPE FOR HOMEOWNERS
 * Sec. 1401. Short title.
 * Sec. 1402. Establishment of HOPE for Homeowners Program.
 * Sec. 1403. Fiduciary duty of servicers of pooled residential mortgage loans.
 * Sec. 1404. Revised standards for FHA appraisers.


 * TITLE V—S.A.F.E. MORTGAGE LICENSING ACT
 * Sec. 1501. Short title.
 * Sec. 1502. Purposes and methods for establishing a mortgage licensing system and registry.
 * Sec. 1503. Definitions.
 * Sec. 1504. License or registration required.
 * Sec. 1505. State license and registration application and issuance.
 * Sec. 1506. Standards for State license renewal.
 * Sec. 1507. System of registration administration by Federal agencies.
 * Sec. 1508. Secretary of Housing and Urban Development backup authority to establish a loan originator licensing system.
 * Sec. 1509. Backup authority to establish a nationwide mortgage licensing and registry system.
 * Sec. 1510. Fees.
 * Sec. 1511. Background checks of loan originators.
 * Sec. 1512. Confidentiality of information.
 * Sec. 1513. Liability provisions.
 * Sec. 1514. Enforcement under HUD backup licensing system.
 * Sec. 1515. State examination authority.
 * Sec. 1516. Reports and recommendations to Congress.
 * Sec. 1517. Study and reports on defaults and foreclosures.


 * TITLE VI—MISCELLANEOUS
 * Sec. 1601. Study and reports on guarantee fees.
 * Sec. 1602. Study and report on default risk evaluation.
 * Sec. 1603. Conversion of HUD contracts.
 * Sec. 1604. Bridge depository institutions.
 * Sec. 1605. Sense of the Senate.


 * DIVISION B—FORECLOSURE PREVENTION
 * Sec. 2001. Short title.
 * Sec. 2002. Emergency designation.


 * TITLE I—FHA MODERNIZATION ACT OF 2008
 * Sec. 2101. Short title.


 * Subtitle A—Building American Homeownership
 * Sec. 2111. Short title.
 * Sec. 2112. Maximum principal loan obligation.
 * Sec. 2113. Cash investment requirement and prohibition of seller-funded down payment assistance.
 * Sec. 2114. Mortgage insurance premiums.
 * Sec. 2115. Rehabilitation loans.
 * Sec. 2116. Discretionary action.
 * Sec. 2117. Insurance of condominiums.
 * Sec. 2118. Mutual Mortgage Insurance Fund.
 * Sec. 2119. Hawaiian home lands and Indian reservations.
 * Sec. 2120. Conforming and technical amendments.
 * Sec. 2121. Insurance of mortgages.
 * Sec. 2122. Home equity conversion mortgages.
 * Sec. 2123. Energy efficient mortgages program.
 * Sec. 2124. Pilot program for automated process for borrowers without sufficient credit history.
 * Sec. 2125. Homeownership preservation.
 * Sec. 2126. Use of FHA savings for improvements in FHA technologies, procedures, processes, program performance, staffing, and salaries.
 * Sec. 2127. Post-purchase housing counseling eligibility improvements.
 * Sec. 2128. Pre-purchase homeownership counseling demonstration.
 * Sec. 2129. Fraud prevention.
 * Sec. 2130. Limitation on mortgage insurance premium increases.
 * Sec. 2131. Savings provision.
 * Sec. 2132. Implementation.
 * Sec. 2133. Moratorium on implementation of risk-based premiums.


 * Subtitle B—Manufactured Housing Loan Modernization
 * Sec. 2141. Short title.
 * Sec. 2142. Purposes.
 * Sec. 2143. Exception to limitation on financial institution portfolio.
 * Sec. 2144. Insurance benefits.
 * Sec. 2145. Maximum loan limits.
 * Sec. 2146. Insurance premiums.
 * Sec. 2147. Technical corrections.
 * Sec. 2148. Revision of underwriting criteria.
 * Sec. 2149. Prohibition against kickbacks and unearned fees.
 * Sec. 2150. Leasehold requirements.


 * TITLE II—MORTGAGE FORECLOSURE PROTECTIONS FOR SERVICEMEMBERS
 * Sec. 2201. Temporary increase in maximum loan guaranty amount for certain housing loans guaranteed by the Secretary of Veterans Affairs.
 * Sec. 2202. Counseling on mortgage foreclosures for members of the Armed Forces returning from service abroad.
 * Sec. 2203. Enhancement of protections for servicemembers relating to mortgages and mortgage foreclosures.


 * TITLE III—EMERGENCY ASSISTANCE FOR THE REDEVELOPMENT OF ABANDONED AND FORECLOSED HOMES
 * Sec. 2301. Emergency assistance for the redevelopment of abandoned and foreclosed homes.
 * Sec. 2302. Nationwide distribution of resources.
 * Sec. 2303. Limitation on use of funds with respect to eminent domain.
 * Sec. 2304. Limitation on distribution of funds.
 * Sec. 2305. Counseling intermediaries.


 * TITLE IV—HOUSING COUNSELING RESOURCES
 * Sec. 2401. Housing counseling resources.
 * Sec. 2402. Credit counseling.


 * TITLE V—MORTGAGE DISCLOSURE IMPROVEMENT ACT
 * Sec. 2501. Short title.
 * Sec. 2502. Enhanced mortgage loan disclosures.
 * Sec. 2503. Community Development Investment Authority for depository institutions.


 * TITLE VI—VETERANS HOUSING MATTERS
 * Sec. 2601. Home improvements and structural alterations for totally disabled members of the Armed Forces before discharge or release from the Armed Forces.
 * Sec. 2602. Eligibility for specially adapted housing benefits and assistance for members of the Armed Forces with service-connected disabilities and individuals residing outside the United States.
 * Sec. 2603. Specially adapted housing assistance for individuals with severe burn injuries.
 * Sec. 2604. Extension of assistance for individuals residing temporarily in housing owned by a family member.
 * Sec. 2605. Increase in specially adapted housing benefits for disabled veterans.
 * Sec. 2606. Report on specially adapted housing for disabled individuals.
 * Sec. 2607. Report on specially adapted housing assistance for individuals who reside in housing owned by a family member on permanent basis.
 * Sec. 2608. Definition of annual income for purposes of section 8 and other public housing programs.
 * Sec. 2609. Payment of transportation of baggage and household effects for members of the Armed Forces who relocate due to foreclosure of leased housing.


 * TITLE VII—SMALL PUBLIC HOUSING AUTHORITIES PAPERWORK REDUCTION ACT
 * Sec. 2701. Short title.
 * Sec. 2702. Public housing agency plans for certain qualified public housing agencies.


 * TITLE VIII—HOUSING PRESERVATION


 * Subtitle A—Preservation Under Federal Housing Programs
 * Sec. 2801. Clarification of disposition of certain properties.
 * Sec. 2802. Eligibility of certain projects for enhanced voucher assistance.
 * Sec. 2803. Transfer of certain rental assistance contracts.
 * Sec. 2804. Public housing disaster relief.
 * Sec. 2805. Preservation of certain affordable housing.


 * Subtitle B—Coordination of Federal Housing Programs and Tax Incentives for Housing
 * Sec. 2831. Short title.
 * Sec. 2832. Approvals by Department of Housing and Urban Development.
 * Sec. 2833. Project approvals by rural housing service.
 * Sec. 2834. Use of FHA loans with housing tax credits.
 * Sec. 2835. Other HUD programs.


 * TITLE IX—MISCELLANEOUS
 * Sec. 2901. Homeless assistance.
 * Sec. 2902. Increasing access and understanding of energy efficient mortgages.


 * DIVISION C—TAX-RELATED PROVISIONS
 * Sec. 3000. Short title; etc.


 * TITLE I—HOUSING TAX INCENTIVES


 * Subtitle A—Multi-Family Housing


 * Part I—Low-Income Housing Tax Credit
 * Sec. 3001. Temporary increase in volume cap for low-income housing tax credit.
 * Sec. 3002. Determination of credit rate.
 * Sec. 3003. Modifications to definition of eligible basis.
 * Sec. 3004. Other simplification and reform of low-income housing tax incentives.
 * Sec. 3005. Treatment of military basic pay.


 * Part II—Modifications to Tax-Exempt Housing Bond Rules
 * Sec. 3007. Recycling of tax-exempt debt for financing residential rental projects.
 * Sec. 3008. Coordination of certain rules applicable to low-income housing credit and qualified residential rental project exempt facility bonds.


 * Part III—Reforms Related to the Low-Income Housing Credit and Tax-Exempt Housing Bonds
 * Sec. 3009. Hold harmless for reductions in area median gross income.
 * Sec. 3010. Exception to annual current income determination requirement where determination not relevant.


 * Subtitle B—Single Family Housing
 * Sec. 3011. First-time homebuyer credit.
 * Sec. 3012. Additional standard deduction for real property taxes for nonitemizers.


 * Subtitle C—General Provisions
 * Sec. 3021. Temporary liberalization of tax-exempt housing bond rules.
 * Sec. 3022. Repeal of alternative minimum tax limitations on tax-exempt housing bonds, low-income housing tax credit, and rehabilitation credit.
 * Sec. 3023. Bonds guaranteed by Federal home loan banks eligible for treatment as tax-exempt bonds.
 * Sec. 3024. Modification of rules pertaining to FIRPTA nonforeign affidavits.
 * Sec. 3025. Modification of definition of tax-exempt use property for purposes of the rehabilitation credit.
 * Sec. 3026. Extension of special rule for mortgage revenue bonds for residences located in disaster areas.
 * Sec. 3027. Transfer of funds appropriated to carry out 2008 recovery rebates for individuals.


 * TITLE II—REFORMS RELATED TO REAL ESTATE INVESTMENT TRUSTS


 * Subtitle A—Foreign Currency and Other Qualified Activities
 * Sec. 3031. Revisions to REIT income tests.
 * Sec. 3032. Revisions to REIT asset tests.
 * Sec. 3033. Conforming foreign currency revisions.


 * Subtitle B—Taxable REIT Subsidiaries
 * Sec. 3041. Conforming taxable REIT subsidiary asset test.


 * Subtitle C—Dealer Sales
 * Sec. 3051. Holding period under safe harbor.
 * Sec. 3052. Determining value of sales under safe harbor.


 * Subtitle D—Health Care REITs
 * Sec. 3061. Conformity for health care facilities.


 * Subtitle E—Effective Dates
 * Sec. 3071. Effective dates.


 * TITLE III—REVENUE PROVISIONS


 * Subtitle A—General Provisions
 * Sec. 3081. Election to accelerate the AMT and research credits in lieu of bonus depreciation.
 * Sec. 3082. Certain GO Zone incentives.
 * Sec. 3083. Increase in statutory limit on the public debt.


 * Subtitle B—Revenue Offsets
 * Sec. 3091. Returns relating to payments made in settlement of payment card and third party network transactions.
 * Sec. 3092. Gain from sale of principal residence allocated to nonqualified use not excluded from income.
 * Sec. 3093. Delay in application of worldwide allocation of interest.
 * Sec. 3094. Time for payment of corporate estimated taxes.

Approved July 30, 2008.

Legislative History

 * CONGRESSIONAL RECORD:
 * Vol. 153 (2007):
 * Aug. 4, considered and passed House.
 * Vol. 154 (2008):
 * Apr. 3, 4, 7-10, considered and passed Senate, amended.
 * May 8, House concurred in Senate amendment with amendments.
 * June 19, 20, 23-26, July 7-11, Senate considered and concurred in House amendments with amendment.
 * July 23, House concurred in Senate amendment with amendment.
 * July 25, 26, Senate considered and concurred in House amendment.
 * July 25, 26, Senate considered and concurred in House amendment.