mr. chairman , i yield myself such time as i may consume . 
the manager 's amendment that i offer makes a number of substantive and technical changes to h.r. 1461 , the federal housing finance reform act of 2005 . 
h.r. 1461 , as reported by the committee on financial services , greatly expands the affordable housing role of fannie and freddie . 
there are major sections on new single-family and multifamily housing goals , duty to serve lower-income markets , and a new affordable housing fund with contributions from the enterprises . 
the bill establishes a fund to finance construction of houses for underserved people . 
it is modeled after the successful affordable housing program of the federal home loan bank system . 
fannie mae and freddie mac will manage programs funded by a percentage of their earnings . 
the manager 's amendment moves the effective date of the entire bill up from 1 year to 6 months following enactment , including the affordable housing funds . 
for the first 2 years , fannie and freddie will contribute 3.5 percent of after-tax earnings and , subsequent to that , 5 percent of such earnings . 
twenty-five percent of the gses ' contributions will go annually to the treasury department to help pay off refcorp , that is , s and l bonds , with the remainder going to the fund . 
the fund will sunset in 5 years , when its extension will be considered . 
during the first 2 years , priority consideration will be given to areas impacted by hurricanes katrina and rita . 
thereafter priority in funding will be based on greatest impact , geographic diversity , timely action , as well as other disaster area needs . 
eligible recipients , for-profit builders , state housing agencies , and nonprofit organizations must have a demonstrated capacity for affordable housing activities and make assurances that they will comply with limits on the use of those funds . 
funds may not be used for political activities , advocacy , lobbying , counseling services , travel expenses , and tax return advice . 
nonprofit recipients must have affordable housing as their primary purpose , and beginning 1 year before applying , nonprofits and their affiliates can not have engaged in federal election activity , electioneering communication , or lobbying . 
recipient use of funds will be closely tracked . 
those misusing funds will be permanently barred from participation and must make reimbursement . 
in addition , the manager 's amendment includes a request from the committee on the judiciary to require consultation with the attorney general by the gse regulator when exercising new litigation authority , and from the committee on government reform to remove a freedom of information act exemption for the proceedings of the new agency 's oversight board . 
the federal housing finance agency will establish an ombudsman to hear complaints and appeals from the gses and those having business relationships with the gses . 
h.r. 1461 consolidates current gse regulation by two agencies in hud into one agency . 
the manager 's amendment clarifies that existing rules and regulations will remain in force during the 6-month transition period and until changed by the new federal housing finance agency . 
i urge adoption of the manager 's amendment . 
mr. chairman , i reserve the balance of my time . 
