Amendment of Affordable Housing Program Regulation

FEDERAL HOUSING FINANCE BOARD

12 CFR Part 960

[No. 95-26]

Amendment of Affordable Housing Program Regulation

AGENCY: Federal Housing Finance Board.

ACTION: Final rule.

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SUMMARY: The Federal Housing Finance Board (Board) is finalizing the

provisions of a proposed rule published in the Federal Register on July

28, 1995, amending, in part, the Board's regulation governing the

operation of the Affordable Housing Program (AHP). The amendments

contained in the proposed rule, and now adopted in final form,

authorize a Federal Home Loan Bank (Bank) to set aside a limited

portion of its available AHP subsidies to assist first-time homebuyers

pursuant to a program meeting specific requirements set forth in the

final rule. In addition, the final rule permits a Bank to establish a

homeownership set-aside program with requirements different from those

specifically set forth, subject to prior approval of the Board.

EFFECTIVE DATE: The final rule is effective on October 25, 1995.

FOR FURTHER INFORMATION CONTACT: Brandon B. Straus, Attorney-Advisor,

Office of General Counsel, (202) 408-2589, or Diane E. Dorius, Deputy

Director, Office of Housing Finance, (202) 408-2576, Federal Housing

Finance Board, 1777 F Street, N.W., Washington, DC 20006.

SUPPLEMENTARY INFORMATION:

I. Statutory and Regulatory Background

Section 10(j)(1) of the Federal Home Loan Bank Act (Bank Act)

requires each Bank to establish a program to subsidize the interest

rate on advances to members of the Federal Home Loan Bank System (Bank

System) engaged in lending for long-term, low- and moderate-income,

owner-occupied and affordable rental housing at subsidized interest

rates. See 12 U.S.C. 1430(j)(1). The Board is required to promulgate

regulations governing the Program. See id. Sec. 1430(j)(9); 12 CFR part

960.

Under the Board's AHP regulation, each Bank must make a specified

annual contribution to fund its AHP. See 12 CFR 960.10. During each

calendar year, each Bank accepts applications for funds from its

members during two of four quarterly funding periods, or ``rounds.''

See 12 CFR 960.4. Applications are reviewed and recommended, and AHP

funds are awarded to applicants through a competitive scoring process

set forth in the AHP regulation. See 12 CFR 960.5. AHP funds are

awarded to the applicants whose applications score the highest among

all the applications received by the Bank in that funding round. See

id.

The Board believes that promoting homeownership for first-time

homebuyers is a significant part of the mission of the Bank System. In

furtherance of that goal, the Board and the Banks recently joined a

partnership agreement to promote the President's National Homeownership

Strategy to expand homeownership to millions of households by the year

2000. The Board believes that permitting the Banks to direct a portion

of their AHP contribution to assist low- and moderate-income, first-

time homebuyers is consistent with its commitment to the National

Homeownership Strategy. Accordingly, on July 28, 1995, the Board

published in the Federal Register a proposal to amend the AHP

regulation to authorize a Bank to set aside a portion of its AHP

contribution to assist low- and moderate-income, first-time homebuyers

to purchase homes. See 60 FR 38768 (July 28, 1995).

II. Summary of Proposed Rule

The proposed rule generally would authorize each Bank to establish

a Matched Savings First-Time

[[Page 49328]]

Homebuyers' Initiative (Initiative), according to the specific

requirements set forth in the proposed rule, under which the Bank would

set aside up to the greater of $1 million or 10 percent of its annual

required AHP contribution to be used as matching funds for first-time

homebuyers' savings deposits maintained with a Bank member. The

proposed rule also would authorize the Banks to establish first-time

homebuyer programs with different requirements from those applicable to

an Initiative (non-conforming homeownership set-aside programs), with

prior approval of the Board.

Under the proposed rule, each dollar of a participating household's

savings would be matched by the member with up to three dollars of AHP

funds, but no more than $5,000, to be used by the household to pay for

downpayment and closing costs in connection with its first-time

purchase of a one-to-four family, owner-occupied property (including a

condominium or cooperative housing unit) used as its primary residence.

Each Bank would have discretion to determine the appropriate ratio of

AHP funds-to-savings of a participating household (with a maximum of

three-to-one), which ratio shall apply to all households participating

in the Bank's initiative.

Under the proposed rule, members could be pre-approved for

participation in an Initiative if they have: (1) Established a

dedicated savings account program for eligible households; (2)

established a first-time homebuyer policy that defines the

qualifications for being a ``first-time'' homebuyer and that includes

financial and other incentives for such first-time homebuyers; and (3)

have established or sponsor a homebuyer counseling program.

Under the proposed rule, in order to enroll initially in the

program, a household would be required to: (1) Have an income at or

below 80 percent of the area median income; (2) meet the requirements

of the member's first-time homebuyer policy, (3) open a dedicated

savings account with a participating member and agree to a savings

schedule; (4) enroll in a homebuyer counseling program; and (5) agree

to obtain mortgage financing from the member for the purchase of the

home. If, after six months from enrollment, a household were

progressing satisfactorily according to its agreed-upon schedule of

savings, the Bank would be required to reserve matching AHP funds, as

targeted in the savings schedule, in the name of the household, and the

household would be notified of acceptance into the Initiative. The

household, however, could not draw down the matching funds unless it

had saved for a minimum period of 10 months. The proposed rule would

require a household to use matching funds to purchase a home within one

year of acceptance in the Initiative (which occurs six month's after

initial enrollment with the member), or a longer period if the Bank

determined that reasonable circumstances justified extension beyond one

year.

Under the proposed rule, a home purchased by a participating

household with funds received under an Initiative must be subject to a

deed restriction, ``soft'' second mortgage, or other legally

enforceable mechanism, pursuant to the requirements set forth in the

proposed rule, that would enable the Bank to recapture from the member

or directly from the seller a pro rata portion of those funds if the

home were sold by the initial household to a household that is not low-

or moderate-income, within 5 years (or longer, at the discretion of the

Bank) from the date of purchase by the participating household. The

proposed rule would allow for Bank waiver of the recapture requirement

if its imposition would cause undue hardship on the seller.

Under the proposed rule, a Bank would make matching funds available

on a rolling, first come, first-served basis. A Bank could make

available up to $1 million of additional AHP funds from the next year's

Initiative set-aside if demand for funds under the Initiative exceeded

the amount set aside in the current year.

III. Analysis of Public Comments and Summary of the Final Rule

The Board requested public comment, generally, on all aspects of

the proposed rule, and specifically requested comment on four specific

issues addressed in the proposal: (1) Whether a 5-year retention period

for housing assisted under an Initiative is appropriate; (2) whether a

Bank should be permitted to commit its AHP contributions from future

years if demand for Initiative funds in a given year exceeds that

year's set-aside; (3) whether non-conforming set-aside programs should

be limited to programs assisting first-time homebuyers or should be

permitted to assist other kinds of activities related to homeownership

that promote the National Homeownership Strategy; and (4) whether the

funding limit established by the proposed rule is appropriate

generally, and whether this limit should apply also to non-conforming

set-aside programs.

General Comments

The Board received 32 comment letters on the proposed rule. Twenty-

six commenters generally supported the proposal. Six commenters,

including one Bank, two Bank members, two not-for-profit housing

organizations and a real estate company did not support the set-aside

of AHP funds for specific purposes. In general, these commenters

opposed the proposal because it would reduce the amount of funds

generally available to finance other affordable housing projects and

activities that would not qualify under the set-aside.

The Board believes limited set-asides are an appropriate way for

the Banks to direct AHP funds to specific activities that promote the

goals of National Homeownership Strategy and are consistent with the

goals of the AHP. Further, the authority for the Banks to establish

set-asides for homeownership programs is entirely voluntary. Therefore,

a Bank need not establish such a program if it determines that a set-

aside is not appropriate in its district. Accordingly, the Board is

finalizing the set-aside proposal set forth in the proposed rule with

the following changes, taking into account comments received from the

public.

Long-Term Retention

Nineteen commenters supported a 5-year retention period for housing

assisted under an Initiative. Among these commenters were seven Banks,

seven Bank members, one banking trade association, one Bank Advisory

Council, one Community Development credit union, and one city. Among

the reasons cited by the supporters of a 5-year retention period were

that a 5-year retention period: allows a household to build equity in a

home; provides a greater incentive for a homeowner to improve his or

her property, whereas a longer retention term removes that incentive;

reduces the monitoring requirements for the Bank member and the Bank;

and eases the potential recapture responsibility of Bank members.

Three commenters supported a retention period longer than 5 years.

One commenter supported a 10-year retention period to prevent real

estate speculation. Another commenter suggested that a 10-year period

would not place an undue monitoring burden on the Banks and would

result in a more equitable distribution of AHP funds. One commenter

supported a 15-year period, citing the scarcity of resources for low-

income housing.

Based on commenters' general support for a 5-year retention period,

[[Page 49329]]

the final rule adopts this as the minimum requirement. Further, one

Bank member suggested that the provision in the proposed rule exempting

a household from the recapture requirement if it sells its home to an

income-eligible household within the five-year period creates an

unnecessary burden on the member to have to determine the income

eligibility of such future home purchasers. The Board also notes that

even in cases where the purchasing household does qualify as income-

eligible, the subsidy initially received by the seller is not passed on

to the purchaser. Therefore, the final rule requires that in all cases

where a participating household sells its home prior to the end the 5-

year retention period, the household must repay a pro rata portion of

the funds it received under the Initiative.

Commitment of AHP Contributions From Future Years

Of the 14 comments addressing this issue, the majority specifically

supported the provision in the proposed rule permitting a Bank to

commit its AHP contributions from future years if demand for Initiative

funds in a given year exceeds that year's set-aside. Several commenters

noted concern about the potential oversubscription of an Initiative.

In order to address this issue, the final rule requires each Bank

to establish a policy that ensures that the Bank enrolls no more

households in its Initiative than the Bank can fund with the amount of

funds set aside by the Bank for the Initiative in a given year. Under

such a policy, the Bank should make projections of the amount of funds

necessary to fund all the households enrolled in an Initiative in a

given year, so that all enrolled households receive funds according to

the agreed-upon savings goals established upon enrollment. The final

rule also provides that in cases where demand for Initiative funds in a

given year exceeds the amount of set-aside funds available for that

year, the Bank may: (1) Make available up to an additional $1 million

from the next year's set-aside of funds under such initiative; and/or

(2) establish a waiting list for households meeting the requirements

for enrollment, provided that the Bank clearly inform households on the

waiting list that there is no guarantee that they will be enrolled.

Non-Conforming Homeownership Set-Aside Programs

The Board specifically requested comment on whether other,

nonconforming set-aside programs proposed by a Bank under

Sec. 960.5(g)(2) of the proposed rule should be limited to programs

that assist first-time homebuyers, or whether it would be practicable

to broaden the language of the proposal to allow for assistance to be

provided to other categories of activities related to homeownership

that promote the National Homeownership Strategy, such as improving and

rehabilitating existing homes and encouraging homeownership strategies

that revitalize distressed communities.

Approximately one-third of the commenters supported a homeownership

set-aside that did not meet the specific requirements of the matched

savings model. Some cited the need for rehabilitation as a community

revitalization strategy and/or the need for additional alternatives to

meet the goals of the National Homeownership Strategy. Eighteen

commenters were opposed to limiting the set-asides to first-time

homebuyers, citing the need for renovation of existing homes and

revitalization of communities. Two commenters, a Bank and its Advisory

Council, supported permitting Banks to set aside AHP funds for disaster

relief or other programs to address local needs.

The Board believes that it is appropriate to limit the set-aside to

uses consistent with the National Homeownership Strategy. Therefore,

the Board has decided to retain the first-time homebuyer requirement

for Initiatives established under Sec. 960.5(g)(1). However, the final

rule provides that nonconforming homeownership set-aside programs

established by a Bank under Sec. 960.5(g)(2) may include homeownership

programs that meet those goals of the National Homeownership Strategy

that, in the Board's determination, are consistent with the goals and

requirements of section 10(j) of the Bank Act, such as providing funds

for the purchase or rehabilitation of homes by income-eligible first-

time homebuyers and homeowners currently living in overcrowded

conditions, unsanitary or unsound premises, unsafe neighborhoods, or

neighborhoods that do not offer adequate economic or educational

opportunities.

Amount of Available Funds

The Board specifically requested comment on whether the funding

limit of the greater of $1 million or 10 percent of a Bank's annual

required AHP contribution: (a) Is appropriate generally; and (b) should

apply to other, non-conforming set-aside programs under proposed

Sec. 960.5(g)(2), or whether the funding limits for such other programs

should be left to the discretion of the Board. Among the eight

commenters addressing this issue, there was general support for the

funding limit as applied to an Initiative, but there was not a clear

consensus on whether this limit should apply also to a nonconforming

set-aside program. One commenter supported allowing the Board to

determine the limit for nonconforming homeownership set-aside programs,

and two commenters suggested allowing the Banks to determine the limit.

The final rule provides that total funding for an Initiative

established by a Bank under Sec. 960.5(g)(1) shall be limited to the

greater of $1 million or 10 percent of a Bank's annual required AHP

contribution. Funding limits for nonconforming homeownership set-aside

programs proposed by a Bank under Sec. 960.5(g)(2) shall be subject to

Board approval.

Comments on Other Provisions of the Proposed Rule

Two commenters suggested that the Board should define ``first-time

homebuyer,'' rather than permitting each member to establish its own

definition, in order to ensure uniform application of the definition.

Commenters also suggested that the definition include victims of

domestic violence and single heads of households who are in the process

of dissolving their marriages and that the definition be consistent

with the requirements governing federal tax-exempt mortgage revenue

bonds (MRB). See 26 U.S.C. 143(d). In order to establish uniformity

within and among the Bank's Initiatives, the Board is adopting the

definition of ``first-time homebuyer'' contained in the Cranston-

Gonzalez National Affordable Housing Act of 1990, see Pub. Law 101-625,

sec. 104(14), 104 Stat. 4079, 4087 (Nov. 28, 1990) (codified at 42

U.S.C. ch. 130). This definition is consistent with the requirements

governing MRBs.

Two Bank members suggested that households with sufficient existing

savings should be permitted to receive matching funds without being

required to participate in a savings program over time. One not-for-

profit housing organization specifically supported the minimum time

requirement for savings as a mechanism to help avoid defaults by

households that rush into home purchases. The final rule retains the

proposed provisions governing the required minimum period for savings.

Nothing in the final rule would preclude a household from using

existing savings to make deposits in its dedicated savings account

established with the member. Further, a program

[[Page 49330]]

with alternative savings requirements could be considered by the Board

as a nonconforming homeownership set-aside program proposed by a Bank

under Sec. 960.5(g)(2).

Some commenters cited the need for flexibility in the savings goal,

since some households may experience circumstances that limit their

capacity to save on a regular schedule, such as seasonal employment.

The final rule clarifies that a household need not make equal deposits

of funds at uniform intervals in order to meet the requirement that it

make satisfactory progress towards meeting its savings goal. The final

rule requires that a household make satisfactory progress in making

deposits in its dedicated savings account in a manner that is

consistent with the goals of its agreed-upon savings schedule.

Five commenters, including three Bank members, suggested that the

requirement that a household purchase a home within one year of

acceptance into an Initiative does not allow sufficient time for a

household to meet its savings goal and then locate and close on a

suitable home. Commenters recommended allowing longer periods ranging

from 18 to 36 months. Accordingly, the final rule changes the deadline

for the use of Initiative funds to 2 years from the date the Bank

reserves matching funds in the name of the household.

One commenter stated that the requirement in the proposed rule that

a Bank member verify a household's progress in meeting its savings

schedule every six months from the date of each household's acceptance

into the Initiative would create an undue burden on the member. The

commenter suggested that the member be allowed to set two dates at six-

month intervals during the year on which to verify the progress of all

households in that member's program. The final rule reflects this

change.

Two commenters suggested that the maximum amount of matching funds

per household permitted under the proposed rule would be too low,

especially in areas with high housing costs. Because a program with a

higher matching ratio or a higher dollar limit could be considered for

approval by the Board under Sec. 960.5(g)(2), the Board has retained

the matched savings requirement for an Initiative in the final rule.

One commenter requested that the proposed rule permit a

participating household to obtain a mortgage through an MRB program or

from a not-for-profit organization that provides lower-cost funds. The

Board believes that member involvement in mortgage lending for

participating households encourages members to be more active in the

AHP and in financing affordable housing generally. Lending under an

Initiative also will help members meet their obligations under the

Community Reinvestment Act. A number of MRB programs use financial

institutions to make loans under those programs. Therefore, a member

would not be precluded from using an MRB program or collaborating with

another funding source to fund a loan it makes to a household under an

Initiative. Further, a nonconforming set-aside program allowing the use

of a funding source in place of a member could be considered by the

Board under Sec. 960.5(g)(2). Therefore the final rule retains the

provision of the proposed rule requiring a household receiving funds

under an Initiative to agree to obtain mortgage financing from the

member with whom it maintains its dedicated savings account. The final

rule adds new provisions requiring that mortgage loans provided by

members in connection with the use of funds provided under an

Initiative shall not be priced above the market rate for a loan of

similar maturity and terms.

IV. Regulatory Flexibility Act

The final rule applies only to the Banks, which do not come within

the meaning of ``small entities,'' as defined in the Regulatory

Flexibility Act (RFA). See 5 U.S.C. 601(6). Therefore, in accordance

with section 605(b) of the RFA, see id. Sec. 605(b), the Board hereby

certifies that this final rule will not have a significant economic

impact on a substantial number of small entities.

List of Subjects in 12 CFR Part 960

Banks, banking, Credit, Federal home loan banks, Housing.

Accordingly, chapter IX, title 12, subchapter E, Code of Federal

Regulations, is hereby amended as follows:

SUBCHAPTER E--AFFORDABLE HOUSING

PART 960--AFFORDABLE HOUSING PROGRAM

1. The authority citation for part 960 is revised to read as

follows:

Authority: 12 U.S.C. 1422a, 1422b, 1430(j).

2. Section 960.4 is amended by revising the first sentence of

paragraph (a) to read as follows:

Sec. 960.4 Applications for funding.

(a) Except as provided in Sec. 960.5(g), the Program is based on

District-wide competitions administered by the Board. * * *

* * * * *

3. Section 960.5 is amended by adding a new paragraph (g) and by

revising paragraph (a)(1) to read as follows:

Sec. 960.5 Project scoring and funding.

(a) General. (1) Each Bank will evaluate all applications received

pursuant to Sec. 960.4(a) from its members that satisfy the use

provisions identified in Sec. 960.3(b).

* * * * *

(g) Set-aside programs. Programs established by a Bank under this

paragraph (g) shall be priority projects under section 10(j)(3) of the

Federal Home Loan Bank Act. For purposes of this paragraph (g), the

term ``first-time homebuyer'' means a first-time homebuyer as defined

in 42 U.S.C. 12704(14).

(1) Programs exempt from prior Board approval. Without the prior

approval of the Board, a Bank may set aside annually up to the greater

of $1 million or 10 percent of its annual required Affordable Housing

Program contribution to fund a matched savings first-time homebuyers'

initiative that meets all of the following requirements:

(i) Announcement of available Bank funds. The Bank shall notify its

members of the amount of annual funds available under the initiative;

(ii) Pre-approval of member participants. The Bank shall approve a

member's participation in the initiative if the member has:

(A) Established a savings account program offering dedicated

savings accounts to eligible households;

(B) Established a first-time homebuyer policy that includes

financial or other incentives for first-time homebuyers;

(C) Established a homebuyer counseling program based on those

offered by or in conjunction with a not-for-profit housing agency or

other recognized counseling organization;

(D) Committed that the Bank or member participant will be entitled

to recapture of the equivalent amount of the matching funds, as

provided in paragraph (g)(1)(xi) of this section;

(iii) Approval of initial enrollment of households. Subject to a

Bank's policy established under paragraph (g)(1)(iv) of this section,

the Bank shall approve the initial enrollment, through the approved

member participant, of a household as a potential beneficiary in the

initiative, if the household:

(A) Is low- or moderate-income, as defined in Sec. 960.1(g), and is

a first-time homebuyer, as of the date of enrollment;

[[Page 49331]]

(B) Has opened a dedicated savings account with the member

participant and established a schedule of savings into the account;

(C) Has enrolled in a homebuyer counseling program established by

the member participant that is based on those offered by or in

conjunction with a not-for-profit housing agency or other recognized

counseling organization; and

(D) Has agreed to obtain mortgage financing from the member

participant for the purchase of a home;

(iv) Establishment of Bank policy on enrollment. The Bank shall

establish a policy that ensures that the Bank enrolls no more

households in its initiative than the Bank can fund with the amount of

funds set aside by the Bank for the initiative in a given year;

(v) Bank reservation of matching funds six months after initial

enrollment. The Bank shall reserve, in the name of the household,

matching funds as targeted in the household's schedule of savings for a

given year, and shall notify the member participant and household of

such reservation, if, six months after the initial enrollment of the

household (or, in cases of households enrolled after being on a waiting

list under paragraph (g)(1)(x)(B)(2) of this section, and who, for a

period of at least six months, have contributed to a dedicated savings

account with a member participant), the member participant certifies to

the Bank that the household is progressing satisfactorily by

participating in the homebuyer counseling program and depositing funds

to its dedicated savings account consistent with the goals of its

agreed schedule of savings;

(vi) Verification of household progress. The Bank shall require the

member participant to verify, semi-annually, each participating

household's satisfactory progress in completing the homebuyer

counseling program and making deposits to its dedicated savings account

consistent with the goals of its agreed schedule of savings;

(vii) Approval of matching funds drawdown. The Bank shall approve a

request from a member participant for matching funds, and shall credit

such funds to the member participant's account, if the member

participant certifies to the Bank that:

(A) The household made deposits to its dedicated savings account

consistent with the goals of its agreed schedule of savings for a

minimum of ten months;

(B) Closing on the sale of a home to the household is scheduled to

occur within two years of the date the Bank reserved matching funds in

the name of the household, or a longer period if the Bank determines

that reasonable circumstances (such as unforeseen hardship, inability

to locate a suitable home, or delays in closing on the sale) justified

extending such time period for the use of the funds;

(C) The household has completed the required homebuyer counseling

program;

(D) The household has received the financial or other incentives

committed by the member participant pursuant to its first-time

homebuyer policy, and the interest rate on the mortgage loan provided

by the member to the household does not exceed the market rate for a

loan of similar maturity and terms;

(E) A deed restriction, ``soft'' second mortgage or other legally

enforceable mechanism exists on the household's home that entitles the

Bank or member participant to recapture of the equivalent amount of the

matching funds, as provided in paragraph (g)(1)(xi) of this section;

(viii) Amount of matching funds. Each Bank shall determine the

amount of matching funds that it will provide to households receiving

funds under its initiative, which amount shall not exceed the lesser of

three times the amount of a household's savings in its dedicated

savings account or $5,000;

(ix) Eligible uses of funds. Households receiving funds under an

initiative may use such funds only for the payment of downpayment or

closing costs in connection with the household's purchase of a one-to-

four family, owner-occupied residential property (including a

condominium or cooperative housing unit) to be used as its primary

residence;

(x) Availability of funds. In making initiative funds available:

(A) The Bank shall make such funds available on a rolling, first-

come, first-served basis;

(B) In cases where demand for initiative funds in a given year

exceeds the amount of set aside funds available for that year, the Bank

may:

(1) Make available up to an additional $1 million from the next

year's set-aside of funds under such initiative; and/or

(2) Establish a waiting list for households meeting the

requirements for enrollment, provided that the Bank clearly inform

households on the waiting list that there is no guarantee that they

will be enrolled;

(xi) Long-term requirement--recapture of funds upon resale. The

Bank shall require that a home purchased using funds under an

initiative be subject to a deed restriction, ``soft'' second mortgage

or other legally enforceable mechanism that requires that, if the home

is sold prior to the end of a period of not less than 5 years (or such

longer period as the Bank may determine in establishing its initiative)

from the date of purchase by the initial household:

(A) The Bank or its designee be given notice of the sale; and

(B) The seller be required to repay a pro rata share, except for de

minimis amounts determined by the Bank, of the funds provided under the

initiative, reduced for every year the seller owned the home, to be

repaid from any net gain from the sale of the home after deduction for

sales expenses, and to be returned to the Bank to be made available to

other households under the Initiative or to other Affordable Housing

Program projects, except that the Bank in its discretion may waive such

repayment requirement if its imposition would cause undue hardship on

the seller, as defined by the Bank;

(xii) Bank implementation procedures. Each Bank may establish its

own procedures for further implementation of the requirements of this

paragraph (g)(1).

(2) Nonconforming homeownership set-aside programs. A Bank may set

aside a portion of its annual required Affordable Housing Program

contribution, in an amount approved by the Board, to implement a

homeownership program that does not meet the requirements of paragraph

(g)(1) of this section, provided the program satisfies the requirements

of 12 U.S.C. 1430(j); meets those goals of the National Homeownership

Strategy that, in the Board's determination, are consistent with the

goals of the AHP; and receives the prior approval of the Board.

Dated: September 14, 1995.

By the Federal Housing Finance Board.

Bruce A. Morrison,

Chairman.

[FR Doc. 95-23390 Filed 9-22-95; 8:45 am]

BILLING CODE 6725-01-U