,,ib ,union ,calendar ,no4 #bhh #aaeth ,,congress #ast ,session ,h4 ,r4 #badh ,report ,no4 #aae-cib ,,in ,,the ,,house ,,of ,,representatives ,april #bf1 #bjag ,mr4 ,pittenger 7for himself and ,mr4 ,david ,scott of ,georgia7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,november #f1 #bjag;,additional sponsors3 ,mr4 ,walker1 ,mr4 ,ross1 ,mrs4 ,wagner1 ,mr4 ,barr1 ,mr4 ,tipton1 ,mr4 ,stivers1 ,mr4 ,gottheimer1 ,mr4 ,fitzpatrick1 ,mr4 ,coffman1 ,mr4 ,budd1 ,mr4 ,messer1 ,mr4 ,luetkemeyer1 ,mr4 ,loudermilk1 ,mr4 ,emmer1 and ,mr4 ,davidson ,november #f1 #bjag ,reported with amendments1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed ,omit the part struck through and insert the part printed in italic ,a ,,bill ,to amend the ,federal ,deposit ,insurance ,act to clarify capital requirements for certain acquisition1 development1 or construction loans4 #a4 ,short title ,this ,act may be cited as ,clarifying ,commercial ,real ,estate ,loans4 #b4 ,capital requirements for certain acquisition1 development1 or construction loans ,the ,federal ,deposit ,insurance ,act is amended by adding at the end the following new section3 #ea4 ,capital requirements for certain acquisition1 development1 or construction loans 7a7 ,in general ,the appropriate ,federal banking agencies may only subject a depository institution to higher capital standards with respect to a high volatility commercial real estate 7,,hvcre7 exposure 7as defined under section #cbd4b of title #ab1 ,code of ,federal ,regulations1 as in effect on the day before the date of the enactment of this section7 7as such term is defined under section #cbd4b of title #ab1 ,code of ,federal ,regulations1 as of ,october #aa1 #bjag1 or if a successor regulation is in effect as of the date of the enactment of this section1 such term or any successor term contained in such successor regulation7 if such exposure is an ,,hvcre ,,adc loan4 7b7 ,,hvcre ,,adc loan defined ,for purposes of this section and with respect to a depository institution1 the term ,,hvcre ,,adc loan-- 7#a7 means a credit facility secured by land or improved real property that1 prior to being reclassified by the depository institution as a ,non-,,hvcre ,,adc loan pursuant to subsection 7d7-- 7,a7 finances or has financed primarily finances1 has financed1 or refinances the acquisition1 development1 or construction of real property2 7,b7 has the purpose of providing financing to acquire1 develop1 or improve such real property into income-producing real property2 and 7,c7 is dependent upon future income or sales proceeds from1 or refinancing of1 such real property for the repayment of such credit facility2 7#b7 does not include a credit facility financing-- 7,a7 the acquisition1 development1 or construction of properties that are-- 7i7 one- to four-family residential properties2 7ii7 real property that would qualify as an investment in community development2 or 7iii7 agricultural land2 7,b7 the acquisition or refinance of existing income-producing real property secured by a mortgage on such property1 if the cash flow being generated by the real property is sufficient to support the debt service and expenses of the real property1 as determined by the depository institution1 in accordance with the institution's applicable loan underwriting criteria for permanent financings2 7,c7 improvements to existing income-producing improved real property secured by a mortgage on such property1 if the cash flow being generated by the real property is sufficient to support the debt service and expenses of the real property1 as determined by the depository institution1 in accordance with the institution's applicable loan underwriting criteria for permanent financings2 or 7,d7 commercial real property projects in which-- 7i7 the loan-to-value ratio is less than or equal to the applicable maximum supervisory loan-to-value ratio as determined by the appropriate ,federal banking agency2 and 7ii7 the borrower has contributed capital of at least #ae percent of the real property's appraised1 as completed value to the project in the form of-- 7,i7 cash2 7,,ii7 unencumbered readily marketable assets2 7,,iii7 paid development expenses out-of-pocket2 or 7,,iv7 contributed real property or improvements2 and 7iii7 the borrower contributed the minimum amount of capital described under clause 7ii7 before the depository institution advances funds under the credit facility1 and such minimum amount of capital contributed by the borrower is contractually required to remain in the project until the credit facility has been reclassified by the depository institution as a ,non-,,hvcre ,,adc loan under subsection 7d72 7#c7 does not include any loan made prior to ,january #a1 #bjae2 and 7#d7 does not include a credit facility reclassified as a ,non-,,hvcre ,,adc loan under subsection 7d74 7c7 ,value of contributed real property ,for purposes of this section1 the value of any real property contributed by a borrower as a capital contribution shall be the appraised value of the property as determined under standards prescribed pursuant to section #aaaj of the ,financial ,institutions ,reform1 ,recovery1 and ,enforcement ,act of #aihi 7#ab ,u4,s4,c4 #ccci71 in connection with the extension of the credit facility or loan to such borrower4 7d7 ,reclassification as a ,non-,,hvcre ,,adc loan ,for purposes of this section and with respect to a credit facility and a depository institution1 upon-- 7#a7 the completion of the development or construction of the real property being financed by the credit facility2 and 7#b7 cash flow being generated by the real property being sufficient to support the debt service and expenses of the real property1 in either case to the satisfaction of the depository institution1 in accordance with the institution's applicable loan underwriting criteria for permanent financings1 the credit facility may be reclassified by the depository institution as a ,non-,,hvcre ,,adc loan4 4 ,november #f1 #bjag ,reported with amendments1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed