Pub. L. 102-238, tit. V, sec. 501

SEC. 501. (a) Credit Enhancement To Provide Housing Opportunities for Low-Income Persons.— (1) In general.— Section 21A(b)(10)(K) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(b)(10)(K)) is amended to read as follows: “(K) To make loans and, with respect to eligible residential properties, develop risk sharing structures and other credit enhancements to assist in the provision of property ownership, rental, and cooperative housing opportunities for lower- and moderate-income families.”. (2) Credit enhancement for certain tax-exempt bonds.— Section 21A(c)(8)(B) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(c)(8)(B)) is amended— (A) by striking “(B) Credit enhancement.—With respect to” and inserting the following: “(B) Credit enhancement.— “(i) In general.— With respect to”; and (B) by adding at the end the following new clause: “(ii) Certain tax-exempt bonds.— The Corporation may provide credit enhancements with respect to tax-exempt bonds issued on behalf of nonprofit organizations pursuant to section 103, and subpart A of part IV of subchapter A of chapter 1, of the Internal Revenue Code of 1986, with respect to the disposition of eligible residential properties for the purposes described in clause (i).”.