usc 12 § 1715z–22a
Definitions (BANKS AND BANKING (12 U.S.C.))
Operative Text
For purposes of this subtitle: The term “multifamily housing” means housing accommodations on the mortgaged property that are designed principally for residential use, conform to standards satisfactory to the Secretary, and consist of not less than 5 rental units on 1 site. These units may be detached, semidetached, row house, or multifamily structures. The term “qualified housing finance agency” means any State or local housing finance agency that— carries the designation of “top tier” or its equivalent, as evaluated by Standard and Poors or any other nationally recognized rating agency; receives a rating of “A” for its general obligation bonds from a nationally recognized rating agency; or otherwise demonstrates its capacity as a sound and experienced agency based on, but not limited to, its experience in financing multifamily housing, fund balances, administrative capabilities, investment policy, internal controls and financial management, portfolio quality, and State or local support. The term “reinsurance agreement” means a contractual obligation under which the Secretary, in exchange for appropriate compensation, agrees to assume a specified portion of the risk of loss that a lender or other party has previously assumed with respect to a mortgage on a multifamily housing property. The term “Secretary” means the Secretary of Housing and Urban Development. The term “qualified participating entity” means an entity approved by the Secretary for participation in the pilot program under this subsection, which may include— the Federal National Mortgage Association; the Federal Home Loan Mortgage Corporation; State housing finance and mortgage insurance agencies; and the Federal Housing Finance Board.
Section 12 U.S.C. § 1715z–22a establishes the working definitions that govern a federal multifamily housing reinsurance pilot program. Under this provision, 'multifamily housing' covers residential rental properties of at least five units on a single site, while a 'qualified housing finance agency' must meet specific creditworthiness or demonstrated-capacity standards. A 'reinsurance agreement' describes the contractual arrangement by which the Secretary of HUD takes on a defined share of mortgage risk from a lender in exchange for compensation, and a 'qualified participating entity' is any organization the Secretary approves to take part in the program.
Plain English — not legal advice.
Property owners and managers dealing with federally backed financing under 12 U.S.C. § 1715z–22a should be aware that the 'multifamily housing' definition sets a floor of five rental units on one site, meaning smaller properties may fall outside this program's scope. Operators who work with housing finance agencies or seek reinsurance arrangements generally confirm that their financing partners qualify as either a 'qualified housing finance agency' or a 'qualified participating entity' as defined in this section. Understanding these definitions helps operators determine whether a particular financing structure or agency relationship falls within the program's framework.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For tenants living in properties that may be financed through the pilot program governed by 12 U.S.C. § 1715z–22a, this definitional provision clarifies what types of housing and financing arrangements fall under the program's umbrella. Knowing that 'multifamily housing' under this section means at least five rental units on one site can help tenants understand whether their building is potentially subject to this federal framework. Tenants with questions about how federal mortgage programs affect their housing can reach out to a local tenant-rights organization or a HUD-approved housing counseling agency for general information.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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