---
kind: "section"
citation: "12 U.S.C. § 1715z–22"
title: "12"
title_heading: "Banks and Banking"
number: "1715z–22"
heading: "Multifamily mortgage credit programs"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/1715z-22"
units:
  - "Chapter 13 — National Housing"
  - "Subchapter II — Mortgage Insurance"
---

# §1715z–22. Multifamily mortgage credit programs

- (a) **In general—** The [Secretary](/usc/12/1715z–22a.md?p=4) of Housing and Urban Development (hereinafter referred to as the “[Secretary](/usc/12/1715z–22a.md?p=4)”) shall carry out programs through the Federal Housing Administration to provide new forms of Federal [credit](/usc/12/5481.md?p=7) enhancement for multifamily loans. In carrying out the programs, the [Secretary](/usc/12/1715z–22a.md?p=4) shall include an evaluation of the effectiveness of entering into partnerships or other contractual arrangements including reinsurance and risk-sharing agreements with [State](/usc/12/1707.md?p=d) or local housing finance agencies, the Federal Housing Finance [Board](/usc/12/1861.md?p=b-3), the Federal National [Mortgage](/usc/12/1707.md?p=a) Association, the Federal Home Loan [Mortgage](/usc/12/1707.md?p=a) Corporation, qualified financial institutions, and other [State](/usc/12/1707.md?p=d) or local [mortgage](/usc/12/1707.md?p=a) insurance companies or bank lending consortia.
- (b) **Risk-sharing program—**
  - (1) **In general—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall carry out a program in conjunction with [qualified participating entities](/usc/12/1715z–22a.md?p=5) to provide Federal [credit](/usc/12/5481.md?p=7) enhancement for loans for affordable [multifamily housing](/usc/12/1715z–22a.md?p=1) through a system of risk-sharing agreements with such entities.
  - (2) **Program requirements—**
    - (A) **In general—** In carrying out the program under this subsection, the [Secretary](/usc/12/1715z–22a.md?p=4) shall enter into risk-sharing agreements with [qualified participating entities](/usc/12/1715z–22a.md?p=5).
    - (B) **Mortgage insurance and reinsurance—** Agreements under [subparagraph (A)](#b-2-A) may provide for (i) [mortgage](/usc/12/1707.md?p=a) insurance through the Federal Housing Administration of loans for affordable [multifamily housing](/usc/12/1715z–22a.md?p=1) originated by or through, or purchased by, [qualified participating entities](/usc/12/1715z–22a.md?p=5), and (ii) reinsurance, including reinsurance of pools of loans, on affordable [multifamily housing](/usc/12/1715z–22a.md?p=1). In entering into risk-sharing agreements under this subsection covering [mortgages](/usc/12/1707.md?p=a), the [Secretary](/usc/12/1715z–22a.md?p=4) may give preference to [mortgages](/usc/12/1707.md?p=a) that are not already in the portfolios of [qualified participating entities](/usc/12/1715z–22a.md?p=5).
    - (C) **Risk apportionment—** Agreements entered into under this subsection between the [Secretary](/usc/12/1715z–22a.md?p=4) and a [qualified participating entity](/usc/12/1715z–22a.md?p=5) shall specify the percentage of loss that each of the parties to the agreement will assume in the event of default of the insured or reinsured multifamily [mortgage](/usc/12/1707.md?p=a). Such agreements shall specify that the [qualified participating entity](/usc/12/1715z–22a.md?p=5) and the [Secretary](/usc/12/1715z–22a.md?p=4) shall share any loss in accordance with the risk-sharing agreement.
    - (D) **Reimbursement capacity—** Agreements entered into under this subsection between the [Secretary](/usc/12/1715z–22a.md?p=4) and a [qualified participating entity](/usc/12/1715z–22a.md?p=5) shall provide evidence acceptable to the [Secretary](/usc/12/1715z–22a.md?p=4) of the capacity of such entity to fulfill any reimbursement obligations made pursuant to this subsection. Evidence of such capacity which may be considered by the [Secretary](/usc/12/1715z–22a.md?p=4) may include—
      - (i) a pledge of the full faith and [credit](/usc/12/5481.md?p=7) of a [qualified participating entity](/usc/12/1715z–22a.md?p=5) to fulfill any obligations entered into by the entity;
      - (ii) reserves pledged or otherwise restricted by the [qualified participating entity](/usc/12/1715z–22a.md?p=5) in an amount equal to an agreed upon percentage of the loss assumed by the entity under [subparagraph (C)](#b-2-C);
      - (iii) funds pledged through a [State](/usc/12/1707.md?p=d) or local guarantee fund; or
      - (iv) any other form of evidence mutually agreed upon by the [Secretary](/usc/12/1715z–22a.md?p=4) and the [qualified participating entity](/usc/12/1715z–22a.md?p=5).
    - (E) **Underwriting standards—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall allow any [qualified participating entity](/usc/12/1715z–22a.md?p=5) to use its own underwriting standards and loan terms and conditions for purposes of underwriting loans to be insured under this subsection, except as provided in this section, without further review by the [Secretary](/usc/12/1715z–22a.md?p=4), except that the [Secretary](/usc/12/1715z–22a.md?p=4) may impose additional underwriting criteria and loan terms and conditions for contractual agreements where the [Secretary](/usc/12/1715z–22a.md?p=4) retains more than 50 percent of the risk of loss. Any financing permitted on property insured under this subsection other than the [first mortgage](/usc/12/1707.md?p=a) shall be expressly subordinate to the insured [mortgage](/usc/12/1707.md?p=a).
    - (F) **Authority of Secretary—** The [Secretary](/usc/12/1715z–22a.md?p=4), upon request of a [qualified participating entity](/usc/12/1715z–22a.md?p=5), may insure or reinsure and make commitments to insure or reinsure under this section any [mortgage](/usc/12/1707.md?p=a), advance, loan, or pool of [mortgages](/usc/12/1707.md?p=a) otherwise eligible under this section, pursuant to a risk-sharing agreement providing that the [qualified participating entity](/usc/12/1715z–22a.md?p=5) will carry out (under a delegation or otherwise, and with or without compensation, but subject to audit, exception, or review requirements) such [credit](/usc/12/5481.md?p=7) approval, appraisal, inspection, issuance of commitments, approval of insurance of advances, cost certification, servicing, property disposition, or other functions as the [Secretary](/usc/12/1715z–22a.md?p=4) shall approve as consistent with the purpose of this section. All appraisals of property for [mortgage](/usc/12/1707.md?p=a) insurance under this section shall be completed by a Certified General Appraiser in accordance with the Uniform Standards of Professional Appraisal Practice.
    - (G) **Disclosure of records—** [Qualified participating entities](/usc/12/1715z–22a.md?p=5) shall make available to the [Secretary](/usc/12/1715z–22a.md?p=4) or the [Secretary](/usc/12/1715z–22a.md?p=4)’s designee, at the [Secretary](/usc/12/1715z–22a.md?p=4)’s request, such financial and other records as the [Secretary](/usc/12/1715z–22a.md?p=4) deems necessary for purposes of review and monitoring for the program under this section.
  - (3) **Development of alternatives—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall develop and assess a variety of risk-sharing alternatives, including arrangements under which the [Secretary](/usc/12/1715z–22a.md?p=4) assumes an appropriate share of the risk related to long-term [mortgage](/usc/12/1707.md?p=a) loans on newly constructed or acquired multifamily rental housing, [mortgage](/usc/12/1707.md?p=a) refinancings, bridge financing for construction, and other forms of [multifamily housing](/usc/12/1715z–22a.md?p=1) [mortgage](/usc/12/1707.md?p=a) lending that the [Secretary](/usc/12/1715z–22a.md?p=4) deems appropriate to carry out the purposes of this subsection. Such alternatives shall be designed—
    - (A) to ensure that other parties bear a share of the risk, in percentage amount and in position of exposure, that is sufficient to create strong, market-oriented incentives for other participating parties to maintain sound underwriting and loan management practices;
    - (B) to develop [credit](/usc/12/5481.md?p=7) mechanisms, including sound underwriting criteria, processing methods, and [credit](/usc/12/5481.md?p=7) enhancements, through which resources of the Federal Housing Administration can assist in increasing [multifamily housing](/usc/12/1715z–22a.md?p=1) lending as needed to meet the expected need in the United States;
    - (C) to provide a more adequate supply of [mortgage](/usc/12/1707.md?p=a) [credit](/usc/12/5481.md?p=7) for sound multifamily rental housing projects in underserved urban and rural markets;
    - (D) to encourage major financial institutions to expand their participation in [mortgage](/usc/12/1707.md?p=a) lending for sound [multifamily housing](/usc/12/1715z–22a.md?p=1), 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](/usc/12/1715z–22a.md?p=1) [mortgage](/usc/12/1707.md?p=a) loans insured by the Federal Housing Administration; and
    - (F) to improve the quality and expertise of Federal Housing Administration staff and other resources, as required for sound management of reinsurance and other market-oriented forms of [credit](/usc/12/5481.md?p=7) enhancement.
  - (4) **Eligibility standards—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall establish and enforce standards for eligibility under this subsection of [qualified participating entities](/usc/12/1715z–22a.md?p=5) under this subsection, as the [Secretary](/usc/12/1715z–22a.md?p=4) determines to be appropriate.
  - (5) **Insurance authority—** Using any authority provided in appropriation Acts to insure [mortgages](/usc/12/1707.md?p=a) under the National Housing Act [[12 U.S.C. 1701](/usc/12/1701.md) et seq.], the [Secretary](/usc/12/1715z–22a.md?p=4) may enter into commitments under this subsection for risk-sharing units.
  - (6) **Fees—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall establish and collect premiums and fees under this subsection as the [Secretary](/usc/12/1715z–22a.md?p=4) 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](/usc/12/1715z–22a.md?p=4) shall carry out this subsection, to the maximum extent practicable, with the participation of well-established residential [mortgage](/usc/12/1707.md?p=a) originators, financial institutions that [invest](/usc/12/1861.md?p=b-6) in [multifamily housing](/usc/12/1715z–22a.md?p=1) [mortgages](/usc/12/1707.md?p=a), [multifamily housing](/usc/12/1715z–22a.md?p=1) sponsors, and such other private sector experts in [multifamily housing](/usc/12/1715z–22a.md?p=1) finance as the [Secretary](/usc/12/1715z–22a.md?p=4) determines to be appropriate.
  - (8) **Prohibition on Ginnie Mae securitization—** The Government National [Mortgage](/usc/12/1707.md?p=a) Association shall not securitize any multifamily loans insured or reinsured under this subsection.
  - (9) **Qualification as affordable housing—** [Multifamily housing](/usc/12/1715z–22a.md?p=1) securing loans insured or reinsured under this subsection shall qualify as affordable only if the housing is occupied by families and bears rents not greater than the gross rent for rent-restricted residential units as determined under [section 42(g) of title 26](/usc/26/42.md?p=g).
  - (10) **Certification of subsidy layering compliance—** The requirements of [section 3545(d) of title 42](/usc/42/3545.md?p=d) may be satisfied in connection with a commitment to insure a [mortgage](/usc/12/1707.md?p=a) under this subsection by a certification by a housing [credit](/usc/12/5481.md?p=7) agency (including an entity established by a [State](/usc/12/1707.md?p=d) that provides [mortgage](/usc/12/1707.md?p=a) insurance) to the [Secretary](/usc/12/1715z–22a.md?p=4) that the combination of assistance within the jurisdiction of the [Secretary](/usc/12/1715z–22a.md?p=4) and other government assistance provided in connection with a property for which a [mortgage](/usc/12/1707.md?p=a) is to be insured shall not be any greater than is necessary to provide affordable housing.
  - (11) **Implementation—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall take any administrative actions necessary to initiate the program under this subsection.
- (c) **Housing finance agency program—**
  - (1) **In general—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall carry out a specific program in conjunction with [qualified housing finance agencies](/usc/12/1715z–22a.md?p=2) (including entities established by [States](/usc/12/1707.md?p=d) that provide [mortgage](/usc/12/1707.md?p=a) insurance) to provide Federal [credit](/usc/12/5481.md?p=7) enhancement for loans for affordable [multifamily housing](/usc/12/1715z–22a.md?p=1) through a system of risk-sharing agreements with such agencies.
  - (2) **Program requirements—**
    - (A) **In general—** In carrying out the program authorized under this subsection, the [Secretary](/usc/12/1715z–22a.md?p=4) shall enter into risk-sharing agreements with [qualified housing finance agencies](/usc/12/1715z–22a.md?p=2).
    - (B) **Mortgage insurance—** Agreements under [subparagraph (A)](#c-2-A) shall provide for full [mortgage](/usc/12/1707.md?p=a) insurance through the Federal Housing Administration of the loans for affordable [multifamily housing](/usc/12/1715z–22a.md?p=1) originated by or through [qualified housing finance agencies](/usc/12/1715z–22a.md?p=2) and for reimbursement to the [Secretary](/usc/12/1715z–22a.md?p=4) by such agencies for either all or a portion of the losses incurred on the loans insured.
    - (C) **Risk apportionment—** Agreements entered into under this subsection between the [Secretary](/usc/12/1715z–22a.md?p=4) and a [qualified housing finance agency](/usc/12/1715z–22a.md?p=2) shall specify the percentage of loss that each of the parties to the agreement will assume in the event of default of the insured multifamily [mortgage](/usc/12/1707.md?p=a). Such agreements shall specify that the [qualified housing finance agency](/usc/12/1715z–22a.md?p=2) and the [Secretary](/usc/12/1715z–22a.md?p=4) shall share any loss in accordance with the risk-sharing agreement.
    - (D) **Reimbursement capacity—** Agreements entered into under this subsection between the [Secretary](/usc/12/1715z–22a.md?p=4) and a [qualified housing finance agency](/usc/12/1715z–22a.md?p=2) shall provide evidence of the capacity of such agency to fulfill any reimbursement obligations made pursuant to this subsection. Evidence of such capacity may include—
      - (i) a pledge of the full faith and [credit](/usc/12/5481.md?p=7) of a qualified [State](/usc/12/1707.md?p=d) or local agency to fulfill any obligations entered into by the [qualified housing finance agency](/usc/12/1715z–22a.md?p=2);
      - (ii) reserves pledged or otherwise restricted by the [qualified housing finance agency](/usc/12/1715z–22a.md?p=2) in an amount equal to an agreed upon percentage of the loss assumed by the housing finance agency under [subparagraph (C)](#c-2-C);
      - (iii) funds pledged through a [State](/usc/12/1707.md?p=d) or local guarantee fund; or
      - (iv) any other form of evidence mutually agreed upon by the [Secretary](/usc/12/1715z–22a.md?p=4) and the [qualified housing finance agency](/usc/12/1715z–22a.md?p=2).
    - (E) **Underwriting standards—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall allow any [qualified housing finance agency](/usc/12/1715z–22a.md?p=2) to use its own underwriting standards and loan terms and conditions for purposes of underwriting loans to be insured under this subsection without further review by the [Secretary](/usc/12/1715z–22a.md?p=4), except that the [Secretary](/usc/12/1715z–22a.md?p=4) may impose additional underwriting criteria and loan terms and conditions for contractual agreements where the [Secretary](/usc/12/1715z–22a.md?p=4) retains more than 50 percent of the risk of loss.
    - (F) **Disclosure of records—** [Qualified housing finance agencies](/usc/12/1715z–22a.md?p=2) shall make available to the [Secretary](/usc/12/1715z–22a.md?p=4) such financial and other records as the [Secretary](/usc/12/1715z–22a.md?p=4) deems necessary for program review and monitoring purposes.
  - (3) **Mortgage insurance premiums—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall establish a schedule of insurance premium payments for [mortgages](/usc/12/1707.md?p=a) insured under this subsection based on the percentage of loss the [Secretary](/usc/12/1715z–22a.md?p=4) may assume. Such schedule shall reflect lower or nominal premiums for [qualified housing finance agencies](/usc/12/1715z–22a.md?p=2) that assume a greater share of the risk apportioned according to [paragraph (2)(C)](#c-2-C).
  - (4) **Insurance authority—** Using any authority provided in appropriation Acts to insure [mortgages](/usc/12/1707.md?p=a) under the National Housing Act [[12 U.S.C. 1701](/usc/12/1701.md) et seq.], the [Secretary](/usc/12/1715z–22a.md?p=4) may enter into commitments under this subsection for risk-sharing units.
  - (5) **Identity of interest—** Notwithstanding any other provision of law, the [Secretary](/usc/12/1715z–22a.md?p=4) shall not apply identity of interest provisions to agreements entered into with qualified [State](/usc/12/1707.md?p=d) housing finance agencies under this subsection.
  - (6) **Prohibition on Ginnie Mae securitization—** The Government National [Mortgage](/usc/12/1707.md?p=a) Association shall not securitize any multifamily loans insured under this subsection.
  - (7) **Qualification as affordable housing—** [Multifamily housing](/usc/12/1715z–22a.md?p=1) securing loans insured under this subsection shall qualify as affordable only if the housing is occupied by families and bears rents not greater than the gross rent for rent-restricted residential units as determined under [section 42(g) of title 26](/usc/26/42.md?p=g).
  - (8) **Regulations—** Not later than 90 days after October 28, 1992, the [Secretary](/usc/12/1715z–22a.md?p=4) shall issue such regulations as may be necessary to carry out this subsection.
  - (9) **Environmental and other reviews—**
    - (A) **Environmental reviews—**
      - (i) **In general—**
        - (I) In order to assure that the policies of the National Environmental Policy Act of 1969 [[42 U.S.C. 4321](/usc/42/4321.md) et seq.] and other provisions of law which further the purposes of such Act (as specified in regulations issued by the [Secretary](/usc/12/1715z–22a.md?p=4)) are most effectively implemented in connection with the insurance of [mortgages](/usc/12/1707.md?p=a) under [subsection (c)(2)](#c-2), and to assure to the public undiminished protection of the environment, the [Secretary](/usc/12/1715z–22a.md?p=4) may, under such regulations, in lieu of the environmental protection procedures otherwise applicable, provide for agreements to endorse for insurance [mortgages](/usc/12/1707.md?p=a) under [subsection (c)(2)](#c-2) upon the request of [qualified housing finance agencies](/usc/12/1715z–22a.md?p=2) under this subsection, if the [State](/usc/12/1707.md?p=d) or unit of general local government, as designated by the [Secretary](/usc/12/1715z–22a.md?p=4) in accordance with regulations, assumes all of the responsibilities for environmental review, decisionmaking, and action pursuant to such Act, and such other provisions of law as the regulations of the [Secretary](/usc/12/1715z–22a.md?p=4) may specify, that would otherwise apply to the [Secretary](/usc/12/1715z–22a.md?p=4) with respect to the insurance of [mortgages](/usc/12/1707.md?p=a) on particular properties.
        - (II) The [Secretary](/usc/12/1715z–22a.md?p=4) shall issue regulations to carry out this subparagraph only after consultation with the Council on Environmental Quality. Such regulations shall, among other matters, provide—
          - (aa) for the monitoring of the performance of environmental reviews under this subparagraph;
          - (bb) subject to the discretion of the [Secretary](/usc/12/1715z–22a.md?p=4), for the provision or facilitation of training for such performance; and
          - (cc) subject to the discretion of the [Secretary](/usc/12/1715z–22a.md?p=4), for the suspension or termination by the [Secretary](/usc/12/1715z–22a.md?p=4) of the [qualified housing finance agency](/usc/12/1715z–22a.md?p=2)’s responsibilities under [subclause (I)](#c-9-A-i-I).
        - (III) The [Secretary](/usc/12/1715z–22a.md?p=4)’s duty under [subclause (II)](#c-9-A-i-II) shall not be construed to limit any responsibility assumed by a [State](/usc/12/1707.md?p=d) or unit of general local government with respect to any particular property under [subclause (I)](#c-9-A-i-I).
      - (ii) **Procedure—** The [Secretary](/usc/12/1715z–22a.md?p=4) shall approve a [mortgage](/usc/12/1707.md?p=a) for the provision of [mortgage](/usc/12/1707.md?p=a) insurance subject to the procedures authorized by this paragraph only if, not less than 15 days prior to such approval, prior to any approval, commitment, or endorsement of [mortgage](/usc/12/1707.md?p=a) insurance on the property on behalf of the [Secretary](/usc/12/1715z–22a.md?p=4), and prior to any commitment by the [qualified housing finance agency](/usc/12/1715z–22a.md?p=2) to provide financing under the risk-sharing agreement with respect to the property, the [qualified housing finance agency](/usc/12/1715z–22a.md?p=2) submits to the [Secretary](/usc/12/1715z–22a.md?p=4) a request for such approval, accompanied by a certification of the [State](/usc/12/1707.md?p=d) or unit of general local government that meets the requirements of [clause (iii)](#c-9-A-iii). The [Secretary](/usc/12/1715z–22a.md?p=4)’s approval of any such certification shall be deemed to satisfy the [Secretary](/usc/12/1715z–22a.md?p=4)’s responsibilities under the National Environmental Policy Act of 1969 [[42 U.S.C. 4321](/usc/42/4321.md) et seq.] and such other provisions of law as the regulations of the [Secretary](/usc/12/1715z–22a.md?p=4) specify insofar as those responsibilities relate to the provision of [mortgage](/usc/12/1707.md?p=a) insurance on the property that is covered by such certification.
      - (iii) **Certification—** A certification under the procedures authorized by this paragraph shall—
        - (I) be in a form acceptable to the [Secretary](/usc/12/1715z–22a.md?p=4);
        - (II) be executed by the chief executive officer or other officer of the [State](/usc/12/1707.md?p=d) or unit of general local government who qualifies under regulations of the [Secretary](/usc/12/1715z–22a.md?p=4);
        - (III) specify that the [State](/usc/12/1707.md?p=d) or unit of general local government under this section has fully carried out its responsibilities as described under [clause (i)](#c-9-A-i); and
        - (IV) specify that the certifying officer consents to assume the status of a responsible Federal official under the National Environmental Policy Act of 1969 [[42 U.S.C. 4321](/usc/42/4321.md) et seq.] and under each provision of law specified in regulations issued by the [Secretary](/usc/12/1715z–22a.md?p=4) insofar as the provisions of such Act or such other provisions of law apply pursuant to [clause (i)](#c-9-A-i), and is authorized and consents on behalf of the [State](/usc/12/1707.md?p=d) or unit of general local government and himself or herself to accept the jurisdiction of the Federal courts for the purpose of enforcement of the responsibilities as such an official.
      - (iv) **Approval by States—** In cases in which a unit of general local government carries out the responsibilities described in [clause (i)](#c-9-A-i), the [Secretary](/usc/12/1715z–22a.md?p=4) may permit the [State](/usc/12/1707.md?p=d) to perform those actions of the [Secretary](/usc/12/1715z–22a.md?p=4) described in [clause (ii)](#c-9-A-ii) and the performance of such actions by the [State](/usc/12/1707.md?p=d), where permitted by the [Secretary](/usc/12/1715z–22a.md?p=4), shall be deemed to satisfy the [Secretary](/usc/12/1715z–22a.md?p=4)’s responsibilities referred to in the second sentence of [clause (ii)](#c-9-A-ii).
    - (B) **Lead-based paint poisoning prevention—** In carrying out the requirements of [section 302](/usc/12/302.md) of the Lead-Based Paint Poisoning Prevention Act [[42 U.S.C. 4822](/usc/42/4822.md)], the [Secretary](/usc/12/1715z–22a.md?p=4) may provide by regulation for the assumption of all or part of the [Secretary](/usc/12/1715z–22a.md?p=4)’s duties under such Act [[42 U.S.C. 4801](/usc/42/4801.md) et seq.] by [qualified housing finance agencies](/usc/12/1715z–22a.md?p=2), for purposes of this section.
    - (C) **Certification of subsidy layering compliance—** The requirements of [section 3545(d) of title 42](/usc/42/3545.md?p=d) may be satisfied in connection with a commitment to insure a [mortgage](/usc/12/1707.md?p=a) under this subsection by a certification by a housing [credit](/usc/12/5481.md?p=7) agency (including an entity established by a [State](/usc/12/1707.md?p=d) that provides [mortgage](/usc/12/1707.md?p=a) insurance) to the [Secretary](/usc/12/1715z–22a.md?p=4) that the combination of assistance within the jurisdiction of the [Secretary](/usc/12/1715z–22a.md?p=4) and other government assistance provided in connection with a property for which a [mortgage](/usc/12/1707.md?p=a) is to be insured shall not be any greater than is necessary to provide affordable housing.
  - (10) **Definitions—** For purposes of this subsection, the following definitions shall apply:
    - (A) **Mortgage—** The term “[mortgage](/usc/12/1707.md?p=a)” means a [first mortgage](/usc/12/1707.md?p=a) on [real estate](/usc/12/1707.md?p=g) that is—
      - (i) owned in fee simple; or
      - (ii) subject to a leasehold interest that—
        - (I) has a term of not less than 99 years and is renewable; or
        - (II) has a remaining term that extends beyond the maturity of the [mortgage](/usc/12/1707.md?p=a) for a period of not less than 10 years.
    - (B) **First mortgage—** The term “[first mortgage](/usc/12/1707.md?p=a)” means a single first lien given to secure advances on, or the unpaid purchase price of, [real estate](/usc/12/1707.md?p=g), under the laws of the [State](/usc/12/1707.md?p=d) in which the [real estate](/usc/12/1707.md?p=g) is located, together with the [credit](/usc/12/5481.md?p=7) instrument, if any, secured thereby. Any other financing permitted on property insured under this section must be expressly subordinate to the insured [mortgage](/usc/12/1707.md?p=a).
    - (C) **Unit of general local government; State—** The terms “unit of general local government” and “[State](/usc/12/1707.md?p=d)” have the same meanings as in [section 5302(a) of title 42](/usc/42/5302.md?p=a).

## Source credit

(Pub. L. 102–550, title V, § 542, Oct. 28, 1992, 106 Stat. 3794; Pub. L. 103–233, title III, § 307(a), (b), Apr. 11, 1994, 108 Stat. 373, 376; Pub. L. 104–120, § 8, Mar. 28, 1996, 110 Stat. 836; Pub. L. 104–134, title I, § 101(e) [title II, § 205], Apr. 26, 1996, 110 Stat. 1321–257, 1321–284; renumbered title I, Pub. L. 104–140, § 1(a), May 2, 1996, 110 Stat. 1327; Pub. L. 105–18, title II, § 10003, June 12, 1997, 111 Stat. 201; Pub. L. 105–276, title II, § 211, Oct. 21, 1998, 112 Stat. 2486; Pub. L. 106–74, title II, § 226, as added Pub. L. 106–113, div. A, title I, § 175(d), Nov. 29, 1999, 113 Stat. 1534; Pub. L. 106–377, § 1(a)(1) [title II, § 235], Oct. 27, 2000, 114 Stat. 1441, 1441A–35.)

## Notes

### Editorial Notes

### References in Text

The National Housing Act, referred to in subsecs. (b)(5) and (c)(4), is act June 27, 1934, ch. 847, 48 Stat. 1246, which is classified principally to this chapter (§ 1701 et seq.). For complete classification of this Act to the Code, see section 1701 of this title and Tables.

The National Environmental Policy Act of 1969, referred to in subsec. (c)(9)(A)(i)(I), (ii), (iii)(IV), is Pub. L. 91–190, Jan. 1, 1970, 83 Stat. 852, which is classified generally to chapter 55 (§ 4321 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 4321 of Title 42 and Tables.

The Lead-Based Paint Poisoning Prevention Act, referred to in subsec. (c)(9)(B), is Pub. L. 91–695, Jan. 13, 1971, 84 Stat. 2078, which is classified generally to chapter 63 (§ 4801 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 4801 of Title 42 and Tables.

### Codification

Section was formerly set out as a note under section 1707 of this title.

Section was enacted as part of the Multifamily Housing Finance Improvement Act and also as part of the Housing and Community Development Act of 1992, and not as part of the National Housing Act which comprises this chapter.

### Amendments

2000—Pub. L. 106–377, § 1(a)(1) [title II, § 235(6)], substituted “programs” for “demonstrations” in section catchline.

Subsec. (a). Pub. L. 106–377, § 1(a)(1) [title II, § 235(1)], substituted “provide” for “demonstrate the effectiveness of providing” in first sentence and “the programs” for “demonstration programs” in second sentence.

Subsec. (b). Pub. L. 106–377, § 1(a)(1) [title II, § 235(5)], struck out “pilot” after “Risk-sharing” in heading.

Subsec. (b)(1). Pub. L. 106–377, § 1(a)(1) [title II, § 235(2)(A)], substituted “provide” for “determine the effectiveness of”.

Subsec. (b)(2)(A). Pub. L. 106–377, § 1(a)(1) [title II, § 235(5)], struck out “pilot” before “program”.

Subsec. (b)(5). Pub. L. 106–377, § 1(a)(1) [title II, § 235(2)(B)], added par. (5) and struck out heading and text of former par. (5). Text read as follows: “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 7,500 units during fiscal year 1996. The demonstration authorized under this subsection shall not be expanded until the reports required under subsection (d) are submitted to Congress, and not more than an additional 25,000 units in each of the fiscal years 1999 and 2000.”

Subsec. (c). Pub. L. 106–377, § 1(a)(1) [title II, § 235(5)], struck out “pilot” after “finance agency” in heading.

Subsec. (c)(1). Pub. L. 106–377, § 1(a)(1) [title II, § 235(3)(A), (5)], struck out “pilot” before “program” and substituted “provide Federal credit enhancement” for “test the effectiveness of Federal credit enhancement”.

Subsec. (c)(2). Pub. L. 106–377, § 1(a)(1) [title II, § 235(5)], struck out “pilot” after “Program requirements” in heading.

Subsec. (c)(2)(A). Pub. L. 106–377, § 1(a)(1) [title II, § 235(5)], struck out “pilot” before “program”.

Subsec. (c)(4). Pub. L. 106–377, § 1(a)(1) [title II, § 235(3)(B)], added par. (4) and struck out heading and text of former par. (4). Text read as follows: “Using any authority provided by appropriations Acts to insure mortgages under the National Housing Act, the Secretary may enter into commitments under this subsection with respect to mortgages on not more than 12,000 units during fiscal year 1996, not more than an additional 7,500 units during fiscal year 1997 and not more than an additional 25,000 units in each of fiscal years 1999 and 2000. The demonstration authorized under this subsection shall not be expanded until the reports required under subsection (d) of this section are submitted to the Congress.”

Subsec (d). Pub. L. 106–377, § 1(a)(1) [title II, § 235(4)], struck out heading and text of subsec. (d) which related to independent studies and reports.

1999—Subsec. (b)(5). Pub. L. 106–74, § 226(1), as added by 106–113, § 175(d), substituted “in each of the fiscal years 1999 and 2000” for “during fiscal year 1999”.

Subsec. (c)(4). Pub. L. 106–74, § 226(2), as added by Pub. L. 106–113, § 175(d), substituted “in each of fiscal years 1999 and 2000” for “during fiscal year 1999”.

1998—Subsec. (b)(5). Pub. L. 105–276, § 211(1), inserted before period at end “, and not more than an additional 25,000 units during fiscal year 1999”.

Subsec. (c)(4). Pub. L. 105–276, § 211(2), substituted “1996,” for “1996 and” and inserted “and not more than an additional 25,000 units during fiscal year 1999” after “fiscal year 1997”.

1997—Subsec. (c)(4). Pub. L. 105–18 substituted “on not more than 12,000 units during fiscal year 1996 and not more than an additional 7,500 units during fiscal year 1997” for “on not more than 12,000 units during fiscal year 1996”.

1996—Subsec. (b)(5). Pub. L. 104–120, § 8(a), and Pub. L. 104–134, § 101(e) [title II, § 205(a)], amended par. (5) identically, substituting “on not more than 7,500 units during fiscal year 1996” for “on not more than 15,000 units over fiscal years 1993 and 1994”.

Subsec. (c)(4). Pub. L. 104–120, § 8(b), and Pub. L. 104–134, § 101(e) [title II, § 205(b)], amended par. (4) identically, substituting “on not more than 12,000 units during fiscal year 1996” for “on not to exceed 30,000 units over fiscal years 1993, 1994, and 1995”.

1994—Subsec. (b)(1), (2). Pub. L. 103–233, § 307(a)(1), added pars. (1) and (2) and struck out headings and text of former pars. (1) and (2) relating to authority of Secretary for carrying out risk-sharing pilot program and authority of Secretary for reinsurance agreements, respectively.

Subsec. (b)(4). Pub. L. 103–233, § 307(a)(2), substituted “eligibility under this subsection of qualified participating entities” for “financial institutions and entities to be eligible to enter into reinsurance agreements”.

Subsec. (b)(8). Pub. L. 103–233, § 307(a)(3), (4), added par. (8) and struck out heading and text of former par. (8). Text read as follows: “The Secretary 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 October 28, 1992.”

Subsec. (b)(9), (10). Pub. L. 103–233, § 307(a)(4), added pars. (9) and (10).

Subsec. (b)(11). Pub. L. 103–233, § 307(a)(3), added par. (11).

Subsec. (c)(1). Pub. L. 103–233, § 307(b)(1), inserted “(including entities established by States that provide mortgage insurance)” after “qualified housing finance agencies”.

Subsec. (c)(2)(C). Pub. L. 103–233, § 307(b)(2)(A), substituted “Such agreements shall specify that the qualified housing finance agency and the Secretary shall share any loss in accordance with the risk-sharing agreement.” for “Such agreements shall specify that the qualified housing finance agency and the Secretary shall share equally the full amount of any loss on the insured mortgage.”

Subsec. (c)(2)(F). Pub. L. 103–233, § 307(b)(2)(B), added subpar. (F).

Subsec. (c)(7). Pub. L. 103–233, § 307(b)(3), struck out “very low-income” before “families” and “(2)” after “section 42(g)”.

Subsec. (c)(9), (10). Pub. L. 103–233, § 307(b)(4), added pars. (9) and (10).

### Statutory Notes and Related Subsidiaries

### Effective Date of 1996 Amendment

Amendment by Pub. L. 104–120 to be construed to have become effective Oct. 1, 1995, see section 13(a) of Pub. L. 104–120, set out as a note under section 1437d of Title 42, The Public Health and Welfare.