Amendment sought to limit the ability of owners of eligible low-income housing to prepay mortgages on their property by providing that, if incentives offered to an owner yield an annual return equal to or greater than 8 percent of equity, the owner would not be permitted to prepay the mortgage or terminate the insurance contract with respect to the property.

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Amendment Number
664
Description
Amendment sought to limit the ability of owners of eligible low-income housing to prepay mortgages on their property by providing that, if incentives offered to an owner yield an annual return equal to or greater than 8 percent of equity, the owner would not be permitted to prepay the mortgage or terminate the insurance contract with respect to the property.
Purpose
An amendment to require building owners to maintain their properties for low and moderate income tenants if the incentives offered by HUD for doing so equal the fair market rate of return on the owner's equity in the building. Owners who terminate their commitment to low income housing by repaying their federally subsidized mortgages early would be required to maintain the property for low and moderate income tenants for the remaining useful life of the property, if the annual rate of return on government incentives authorized in the bill would exceed 8% of the fair market equity.
Congress
101
Type
HAMDT
Latest Action Date
Aug 1, 1990
Latest Action Text
By unanimous consent, the Frank amendment was withdrawn.
Latest Action Time
10:47:21
Submitted Date
Aug 1, 1990
Chamber
House of Representatives
Update Date
Jul 1, 2021
Amendment 664 — Informed