PUBLIC LAW 102-550—OCT. 28, 1992 106 STAT. 3795

enhancements, through which resources of the Federal
Housing Administration can assist in increasing multifam-
ily housing lending as needed to meet the expected need
in the United States;

(C) to provide a more adequate supply of mortgage
credit for sound multifamily rental housing projects in
underserved urban and rural markets;

(D) to encourage major financial institutions to expand
their participation m mortgage lending for sound multifam-
ily housing, through means such as mitigating uncertain-
ties 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 multi-
family housing mortgage 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 enhancement.

(4) ELIGIBILITY STANDARDS.—The Secretary shall establish
and enforce standards for financial institutions and entities
to be eligible to enter into reinsurance agreements under this
subsection, as the Secretary determines to be appropriate.

(5) FUNDING.—Using any authority provided in appropria-
tion Acts to insure loans under the National Housing Act,
the Secretary may enter into commitments under this sub-
section for risk sharing with respect to mortgages on not more
than 15,000 units over fiscal years 1993 and 1994. The dem-
onstration authorized under this subsection shall not be
expanded until the reports required under subsection (d) are
submitted to Congress.

(6) FEES.—The Secretary shall establish and collect pre-
miums and fees under this subsection as the Secretary deter-
mines 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 shall
carry out this subsection, to the maximum extent practicable,
with the participation of well-established residential mortgage
originators, financial institutions that invest in multifamily
housing mortgages, multifamily housing sponsors, and such
other private sector experts in multifamily housing finance
as the Secretary determines to be appropriate.

(8) TIMING.—The Secretary shall take any administrative
actions necessary to initiate the pilot program under this sub-
section not later than the expiration of the 8-month period
beginning on the date of the enactment of this Act.

(c) HOUSING FINANCE AGENCY PILOT PROGRAM.—

(1) IN GENERAL.—The Secretary shall carry out a specific
pilot program in conjunction with qualified housing finance
agencies to test the effectiveness of Federal credit enhancement
for loans for affordable multifamily housing through a system
of risk-sharing agreements with such agencies.

(2) PILOT PROGRAM REQUIREMENTS.—

(A) IN GENERAL.—In carrying out the pilot program
authorized under this subsection, the Secretary shall enter