,i #aaith ,,congress #b;d ,session ,h4 ,r4 #idfa ,,in ,,the ,,house ,,of ,,representatives ,june #be1 #bjbf,mr4 ,fitzgerald introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to permit the ,federal ,home ,loan ,mortgage ,corporation and the ,federal ,national ,mortgage ,association to purchase and securitize certain residential construction loans4 #a4 ,short title ,this ,act may be cited as the ,working ,families ,home ,construction ,act of #bjbf4 #b4 ,purchase of qualifying construction loans by ,fannie ,mae and ,freddie ,mac 7a7 ,in general ,notwithstanding any other provision of law1 the ,director of the ,federal ,housing ,finance ,agency 7hereafter referred to as the ,director7 shall permit the enterprises to purchase and securitize qualifying construction loans1 as described in this section4 7b7 ,qualifying construction loan ,a qualifying loan shall have each of the following characteristics3 7#a7 ,the loan shall be made by a depository institution1 a credit union1 a ,state housing finance agency1 or any other entity as determined by the ,director4 7#b7 ,the originating institution for the loan shall verify and document the financial viability1 capacity to complete1 and support from the local community as defined in subsection 7d77#d71 for the purpose of providing that information to an enterprise4 7#c7 ,the loan shall have an interest rate established by the ,director1 which takes into account-- 7,a7 affordability for a family described in paragraph 7#i72 and 7,b7 safety and soundness with respect to the operating costs and expected losses related to purchasing qualifying construction loans4 7#d7 ,the loan shall be made to a builder1 homebuilder1 or developer4 7#e7 ,the loan shall be for a construction project that will result in the building of #a or more owner-occupied dwelling units4 7#f7 ,the recipient of the loan shall contribute not less than #aj percent of the capital required to complete the construction project 7including the value of the land on which the project is located7 to be undertaken by the recipient using such loan4 7#g7 ,the loan shall be-- 7,a7 not more than #ajj1jjj for each dwelling unit to be constructed as part of the construction project provided that the amounts described in this paragraph represent the maximum amount of supplemental or gap financing eligible for purchase and securitization by an enterprise under this ,act and may be layered with other construction financing sources1 including commercial construction loans1 ,state or local financing1 and developer equity contributions and shall not be construed to require that a qualifying construction loan serve as the sole or primary source of financing for any construction project2 and 7,b7 not more than #b1djj1jjj in total for any single construction project4 7#h7 ,the loan may be used for-- 7,a7 acquiring land2 7,b7 professional services1 including engineering services1 land use planning services1 surveying1 environmental due diligence2 7,c7 developing infrastructure that will serve such eligible construction project1 including roads1 sewers1 sidewalks1 grading1 water lines1 stormwater management1 lighting1 and street landscaping and signage2 7,d7 construction of dwelling units2 7,e7 direct developer incentives2 or 7,f7 municipal fees and permits4 7#i7 ,each dwelling unit built as part of a construction project financed with a loan shall be sold to a family whose income is between #ij percent and #acj percent of the area median income in the area where the dwelling unit is located4 7#aj7 ,when a dwelling unit built as part of a construction project financed with a loan is sold1 the terms of the sale shall require the purchaser to reside in the dwelling unit for not less than #a year1 and shall require developers to include a recorded1 restrictive covenant to that effect4 7c7 ,availability of amounts 7#a7 ,freddie ,mac ,section #accg of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #defg7;a77#a77;,b77 is amended in subsection 7a77#a77;,b7-- 7,a7 in clause 7i7-- 7i7 by striking #fe and inserting #ec2 and 7ii7 by striking and at the end2 7,b7 in clause 7ii71 by striking #ce and inserting #be2 and 7,c7 by adding at the end the following3 7iii7 #bb percent of such amounts for the purpose of purchasing and securitizing qualifying construction loans under the ,working ,families ,home ,construction ,act of #bjbf2 and 4 7#b7 ,fannie ,mae ,section #accg of the ,federal ,housing ,enterprises ,financial ,safety and ,soundness ,act of #aiib 7#ab ,u4,s4,c4 #defg7;a77#b77;,b77 is amended in subsection 7a77#b77;,b7-- 7,a7 in clause 7i7-- 7i7 by striking #fe and inserting #ec2 and 7ii7 by striking and at the end2 7,b7 in clause 7ii7-- 7i7 by striking #ce and inserting #be2 and 7ii7 by striking the period at the end and inserting 2 and2 and 7,c7 by adding at the end the following3 7iii7 #bb percent of such amounts for the purpose of purchasing and securitizing qualifying construction loans under the ,working ,families ,home ,construction ,act of #bjbf2 and 4 7d7 ,definitions ,in this section3 7#a7 ,credit union ,the term credit union has the meaning given the term insured credit union in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb74 7#b7 ,depository institution ,the term depository institution has the meaning given the term in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7#c7 ,enterprise ,the term enterprise means-- 7,a7 the ,federal ,home ,loan ,mortgage ,corporation2 or 7,b7 the ,federal ,national ,mortgage ,association4 7#d7 ,support from the local community ,the term support from the local community means formal authorization or endorsement for the proposed construction project from the relevant local governmental authority1 which shall be deemed satisfied by any one of the following3 7,a7 a valid zoning approval issued by the relevant local government authority for the proposed construction project2 7,b7 a building permit issued by the relevant local government authority for the proposed construction project2 7,c7 a formal resolution or letter of support from a local elected official with jurisdiction over the area in which the project is located2 or 7,d7 such other documentation as the ,director determines demonstrates formal local governmental authorization for the proposed construction project4