S. 2544 (105th): Homeownership and Community Development Act of 1998

105th Congress, 1997–1998. Text as of Oct 02, 1998 (Introduced).

Status & Summary | PDF | Source: GPO

S 2544 IS

105th CONGRESS

2d Session

S. 2544

To enhance homeownership through community development financial institutions.

IN THE SENATE OF THE UNITED STATES

OCTOBER 2, 1998

Mr. FAIRCLOTH introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs


A BILL

To enhance homeownership through community development financial institutions.

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

SECTION 1. SHORT TITLE.

    (a) SHORT TITLE- This Act may be cited as the ‘Homeownership and Community Development Act of 1998’.

SEC. 2. COMMUNITY DEVELOPMENT INSTITUTIONS TO BE ELIGIBLE TO BORROW AS A NONMEMBER FROM THE FEDERAL HOME LOAN BANK SYSTEM.

    SECTION 10b- Section 10b of the Federal Home Loan Bank Act (12 U.S.C. 1430b) is amended--

      (1) in subsection (a) by striking the second sentence and inserting the following two sentences: ‘Such mortgagees must be (i) chartered institutions having succession and (ii) subject to the inspection and supervision of some governmental agency or a community development financial institution (other than an insured depository institution or a subsidiary thereof) that, at the time the advance is made, is certified under the Community Development Banking and Financial Institutions Act of 1994. The principal activity of such mortgagees in the mortgage field must consist of lending their own funds.’;

      (2) in the last sentence of subsection (a) by replacing the word ‘such’ with ‘the same’ and by replacing the phrase ‘shall be determined by the board’ with the phrase ‘are comparable extensions of credit to members’; and

      (3) in subsection (b) by inserting in the first sentence between the words ‘agency’ and ‘for’ the following phrase: ‘or a certified community development financial institution’.