Page:United States Statutes at Large Volume 103 Part 1.djvu/451

 PUBLIC LAW 101-73 —AUG. 9, 1989 103 STAT. 423 SEC. 720. LIQUIDITY. Section 5A of the Federal Home Loan Bank Act (12 U.S.C. 1425a) is hereby repealed. SEC. 721. AFFORDABLE HOUSING. Section 10 of the Federal Home Loan Bank Act (12 U.S.C. 1430) (as amended by section 710 and section 714 of this Act) is amended by adding at the end the following: "(i) COMMUNITY INVESTMENT PROGRAM.— "(1) IN GENERAL.—Each Bank shall establish a program to provide funding for members to undertake community-oriented mortgage lending. Each Bank shall designate a community investment officer to implement community lending and afford- able housing advance programs of the Banks under this subsec- tion and subsection (j) and provide technical assistance and outreach to promote such programs. Advances under this pro- gram shall be priced at the cost of consolidated Federal Home Loan Bank obligations of comparable maturities, taking into account reasonable administrative costs. " (2) COMMUNITY-ORIENTED MORTGAGE LENDING.— For purposes of this subsection, the term 'community-oriented mortggige lend- ing' means providing loans— "(A) to finance home purchases by families whose income does not exceed 115 percent of the median income for the ^-^v area, "(B) to finance purchase or rehabilitation of housing for occupancy by families whose income does not exceed 115 percent of median income for the area, "(C) to finance commercial and economic development activities that benefit low- and moderate-income families or activities that are located in low- and moderate-income neighborhoods, and "(D) to finance projects that further a combination of the purposes described in subparagraphs (A) through (C). "(j) AFFORDABLE HOUSING PROGRAM.— "(1) IN GENERAL. —Pursuant to regulations promulgated by Disadvantaged the Board, each Bank shall establish an Affordable Housing persons. Program to subsidize the interest rate on advances to members engaged in lending for long term, low- and moderate-income, owner-occupied and affordable rental housing at subsidized in- terest rates. "(2) STANDARDS. —The Board's regulations shall permit Bank members to use subsidized advances received from the Banks to— "(A) finance homeownership by families with incomes at or below 80 percent of the median income for the area; or "(B) finance the purchase, construction, or rehabilitation of rental housing, at least 20 percent of the units of which will be occupied by and affordable for very low-income households for the remaining useful life of such housing or the mortgage term. "(3) PRIORITIES FOR MAKING ADVANCES. — In using advances authorized under paragraph (1), each Bank member shall give priority to qualified projects such as the following: "(A) purchase of homes by families whose income is 80 percent or less of the median income for the area,

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