Page:United States Statutes at Large Volume 106 Part 5.djvu/157

 PUBLIC LAW 102-550—OCT. 28, 1992 106 STAT. 3795 enhancements, through which resources of the Federal Housing Administration can assist in increasing multifamily housing lending as needed to meet the expected need in the United States; (C) to provide a more adequate supply of mortgage credit for sound multifamily rental housing projects m underserved urban and rural markets; (D) to encourage m£gor financial institutions to expand their participation in mortgage lending for sound multifamily housing, through means such as mitigating uncertainties regarding actions of the Federal Government (including the possible failure to renew short-term subsidy contracts); (E) to increase the efficiency, and lower the costs to the Federal Government, of processing and servicing multifamily housing mortgage loans insured by the Federal Housing Administration; and (F) to improve the qualify and expertise of Federal Housing Administration staff and other resources, as required for sound management of reinsureuice and other market-oriented forms of credit enhancement. (4) ELIGIBILITY STANDARDS. — The Secretary shall establish and enforce st€indards for financial institutions and entities to be eligible to enter into reinsurance agreements under this subsection, as the Secretary determines to he appropriate. (5) FUNDING.—Using any authority provided in appropriation Acts to insure loans under the National Housing Act, the Secretary may enter into commitments under this subsection for risk sharing with respect to mortgages on not more than 15,000 units over fiscal years 1993 and 1994. The demonstration authorized under this subsection shall not be expanded until the reports required under subsection (d) are submitted to Congress. (6) FEES.—The Secretary shall establish and collect premimns and fees under this subsection as the Secretary determines appropriate to (A) achieve the purpose of this subsection, and (B) compensate the Federal Housing Administration for the risks assumed and related administrative costs. (7) NON-FEDERAL PARTICIPATION.—The Secretary shall carry out this subsection, to the maximum extent practicable, with the participation of well-established residential mortgage originators, financial institutions that invest in multifamily housing mortgages, multifamily housing sponsors, and such other private sector experts in multifamily housing finance as the Secretary determines to be appropriate. (8) TIMING.—The Slecretary shall take any administrative actions necessary to initiate the pilot program under this subsection not later than the expiration of the 8-month period beginning on the date of the enactment of this Act. (c) HOUSING FINANCE AGENCY PILOT PROGRAM. — (1) IN GENERAL.—^l^'he Secretary shall carry out a specific pilot program in conjimction with qualified housing finance agencies to test the effectiveness of Federcd credit enhancement for loans for affordable multifamily housing through a system of risk-sharing agreements with such agencies. (2) PILOT PROGRAM REQUIREMENTS. — (A) IN GENERAL.— In carrying out the pilot program authorized under this subsection, the Secretary shall enter

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