Housing Preservation and Tenant Protection Act of 2010 - Requires the Secretary of Housing and Urban Development (HUD), upon request of a project owner with a rental supplement contract or a rental assistance program (RAP) contract, to convert such contract to a section 8 project-based assistance contract.
Prohibits an owner of specified covered housing from selling such property before notifying the required parties and giving HUD an opportunity to purchase it. (Thus grants HUD the first right of refusal.)
Prescribes requirements for: (1) preservation of HUD-owned and HUD-held buildings; (2) HUD authority to assign flexible subsidy loans; and (3) the use of existing section 8 funds to preserve and revitalize affordable housing.
Amends the Housing and Community Development Act of 1992 to authorize the Government National Mortgage Association (Ginnie Mae) to securitize any Federal Housing Administration (FHA) risk-share multifamily loan under the same terms and conditions as if the loan were insured under the National Housing Act.
Revises or prescribes requirements for: (1) restoring housing at risk of loss due to deterioration; (2) protecting residents in HUD assisted projects; (3) preserving troubled projects facing foreclosure; (4) providing incentives under the Multifamily Assisted Housing Reform and Affordability Act of 1997; and (5) establishing a publicly available preservation data base composed of each covered multifamily property.
Section 202 Supportive Housing for the Elderly Act of 2010 - Amends the Housing Act of 1959 regarding project rental assistance for supportive housing for the elderly.
Amends the American Homeownership and Economic Opportunity Act of 2000 with respect to project-based rental housing assistance programs and senior preservation rental assistance contracts
Requires HUD to establish and operate a national senior housing clearinghouse.
Rural Housing Preservation Act of 2010 - Amends the Housing Act of 1949 to require the Secretary of Agriculture to carry out a preservation program to provide financial incentives and other assistance to owners of Section 515 rural multifamily housing projects through long-term use agreements entered into between the project owners and the Secretary. (A Section 515 project is one involving housing and related facilities for elderly persons and families or other persons and families of low income.)
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4868 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 4868
To prevent the loss of affordable housing dwelling units in the United
States.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 17, 2010
Mr. Frank of Massachusetts (for himself, Ms. Waters, Mr. Gutierrez, Ms.
Velazquez, Mr. Capuano, Mr. Hinojosa, Mr. Baca, Mr. Lynch, Mr. Al Green
of Texas, Ms. Kilroy, Mr. Himes, Ms. Clarke, and Mr. Delahunt)
introduced the following bill; which was referred to the Committee on
Financial Services, and in addition to the Committees on the Budget and
Ways and Means, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To prevent the loss of affordable housing dwelling units in the United
States.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Housing
Preservation and Tenant Protection Act of 2010''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
Sec. 2. Implementation.
Sec. 3. Budget treatment.
TITLE I--PRESERVATION OF FEDERALLY FINANCED AND STATE-FINANCED
AFFORDABLE HOUSING AT RISK OF CONVERSION TO MARKET-RATE HOUSING
Sec. 101. Conversion of rent supplement and RAP contracts to project-
based rental assistance under section 8.
Sec. 102. Preservation of properties with expiring use restrictions.
Sec. 103. Enhanced voucher assistance and preservation project-based
section 8 assistance for State-financed
affordable housing.
Sec. 104. Project-based preservation assistance.
Sec. 105. Preservation of State-financed affordable housing.
Sec. 106. Preservation exchange program.
Sec. 107. Federal first right of refusal.
Sec. 108. Amendment to Low-Income Housing Preservation and Resident
Homeownership Act of 1990.
Sec. 109. Preservation of HUD-held and HUD-owned buildings.
Sec. 110. Authority for HUD to assign flexible subsidy loans.
Sec. 111. Use of existing section 8 funds to preserve and revitalize
affordable housing.
Sec. 112. Authority for Ginnie Mae to securitize FHA risk-sharing
mortgages.
TITLE II--RESTORATION OF HOUSING AT RISK OF LOSS DUE TO DETERIORATION
Sec. 201. Authority to transfer rental assistance to other properties.
Sec. 202. Building transfers: requirements for purchasers of FHA
insured projects and section 8 projects.
Sec. 203. Use of interest reduction payments for rehabilitation grants.
Sec. 204. Clarification of budget-based rent increases for
rehabilitated projects.
Sec. 205. Interest reduction payments for section 236 projects
experiencing a reduction of units.
TITLE III--PROTECTION OF RESIDENTS
Sec. 301. Tenant protection voucher to replace lost subsidized units on
1-for-1 basis.
Sec. 302. Maintenance of housing.
Sec. 303. Resident enforcement of public housing agency or project
owner agreements with HUD.
Sec. 304. Resident access to building information.
TITLE IV--PRESERVATION OF TROUBLED PROJECTS FACING FORECLOSURE
Sec. 401. Maintaining affordability through escrowing of rental
assistance.
Sec. 402. Multifamily housing mortgage foreclosure.
Sec. 403. Building acquisition: valuation of physically distressed
properties sold by HUD.
Sec. 404. Investment through up-front grants from General Insurance
Fund.
Sec. 405. Maintaining project-based assistance for projects disposed of
by HUD.
Sec. 406. Correcting harm caused by late subsidy payments.
TITLE V--INCENTIVES UNDER MAHRA FOR OWNERS TO MAINTAIN HOUSING
AFFORDABILITY
Sec. 501. Extension of mark-to-market program.
Sec. 502. Maintaining affordability in preservation project
transactions.
Sec. 503. Encouraging continued participation in assisted housing
programs.
Sec. 504. Prepayment of FHA mortgages on multifamily housing.
Sec. 505. Period of eligibility for nonprofit debt relief.
Sec. 506. Acquisition of restructured projects by nonprofit
organizations.
Sec. 507. Rent adjustments upon subsequent renewals of section 8
contracts.
Sec. 508. Budget-based rent adjustments.
Sec. 509. Independent appraisal requirement in cases of divergent rent
studies.
Sec. 510. Extension of housing assistance payment contract.
Sec. 511. Otherwise eligible projects.
Sec. 512. Exception rents.
Sec. 513. Disaster-damaged eligible projects.
Sec. 514. Funding for tenant and other participation and capacity
building.
TITLE VI--PRESERVATION DATABASE
Sec. 601. Preservation database.
TITLE VII--SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY
Sec. 701. Short title and table of contents.
Subtitle A--New Construction Reforms
Sec. 711. Project rental assistance.
Sec. 712. Selection criteria.
Sec. 713. Development cost limitations.
Sec. 714. Owner deposits.
Sec. 715. Definition of private nonprofit organization.
Sec. 716. Preferences for homeless elderly.
Sec. 717. Nonmetropolitan allocation.
Subtitle B--Refinancing
Sec. 721. Approval of prepayment of debt.
Sec. 722. Sources of refinancing.
Sec. 723. Use of unexpended amounts.
Sec. 724. Use of project residual receipts.
Sec. 725. Additional provisions.
Subtitle C--Assisted Living Facilities
Sec. 731. Definition of assisted living facility.
Sec. 732. Monthly assistance payment under rental assistance.
Subtitle D--National Senior Housing Clearinghouse
Sec. 741. National senior housing clearinghouse.
TITLE VIII--RURAL HOUSING PRESERVATION
Sec. 801. Short title.
Sec. 802. Preservation of multifamily housing.
Sec. 803. Rural preservation and rural tenant protection vouchers.
Sec. 804. Tenant participation.
Sec. 805. Priority for financing.
Sec. 806. Conforming amendment.
Sec. 807. Regulations.
SEC. 2. IMPLEMENTATION.
The Secretary of Housing and Urban Development and the Secretary of
Agriculture, as applicable, shall by notice establish any additional
requirements that may be necessary to immediately, except as
specifically provided otherwise, carry out the provisions of this Act.
Such notice shall take effect upon issuance.
SEC. 3. BUDGET TREATMENT.
The budgetary effects of this Act, for the purpose of complying
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by
reference to the latest statement titled ``Budgetary Effects of PAYGO
Legislation'' for this Act, submitted for printing in the Congressional
Record by the Chairman of the Committee on the Budget of the House of
Representatives, provided that such statement has been submitted prior
to the vote on passage.
TITLE I--PRESERVATION OF FEDERALLY FINANCED AND STATE-FINANCED
AFFORDABLE HOUSING AT RISK OF CONVERSION TO MARKET-RATE HOUSING
SEC. 101. CONVERSION OF RENT SUPPLEMENT AND RAP CONTRACTS TO PROJECT-
BASED RENTAL ASSISTANCE UNDER SECTION 8.
(a) Conversion.--Notwithstanding any other provision of law and
subject to the availability of appropriations, the Secretary of Housing
and Urban Development shall, at the request of a project owner with a
contract under section 101 of the Housing and Urban Development Act of
1965 (12 U.S.C. 1701s) or a contract under section 236(f)(2) of the
National Housing Act (12 U.S.C. 1715z-1(f)(2)), submitted during the
12-month period beginning on the date of the enactment of this Act,
convert such contract to project-based assistance under section 8 of
the United States Housing Act of 1937 (42 U.S.C. 1437f) (in this
section referred to as ``section 8'').
(b) Terms.--A contract for project-based rental assistance under
section 8 pursuant to a conversion under subsection (a) of this section
shall--
(1) be subject to the availability of amounts provided in
appropriations Act; and
(2) have a term that is not shorter in duration than the
remaining term of the contract that is converted, pursuant to
subsection (a) of this section, to project-based assistance
under such section 8, plus an additional term of not less than
5 years, and up to 30 years at the request of the owner.
(c) Loan Management Assistance Contracts.--After the initial year
of a project-based rental assistance contract under section 8 for loan
management assistance, the contract may, at the option of the project
owner and subject to the conditions specified in section 524(a)(4)(D)
of the Multifamily Assisted Housing Reform and Affordability Act of
1997 (42 U.S.C. 1437f note), be converted to a renewal contract under
such section 524, subject to the availability of appropriations, if the
project owner agrees to a contract term that extends 10 years beyond
the remaining term of the assistance contract.
(d) Use Restrictions.--Notwithstanding any other provision of law,
conversion of a contract pursuant to subsection (a) shall not diminish
the affordability restrictions or number of assisted units applicable
to the property that is subject to the contract converted.
(e) Use of Recaptured Amounts.--Any budget authority recaptured as
a result of conversion of any contract pursuant to subsection (a) shall
be used by the Secretary of Housing and Urban Development for making
assistance payments with respect to the initial 12-month period of the
contract for project-based rental assistance under section 8 resulting
from such conversion.
SEC. 102. PRESERVATION OF PROPERTIES WITH EXPIRING USE RESTRICTIONS.
(a) Federal Assistance and Extension of Affordability
Requirements.--
(1) Provision of assistance.--
(A) Authority.--The Secretary of Housing and Urban
Development may use amounts made available under
paragraph (5) to provide assistance under this section
with respect to covered multifamily housing properties.
(B) Applications and selection criteria.--The
Secretary shall provide for owners of covered
multifamily housing properties to submit applications
for assistance under this section and shall establish
criteria for selection of properties to receive
assistance that shall take into consideration the need
of a property for such assistance.
(2) Rehabilitation assistance.--The Secretary may provide a
grant or loan under this paragraph to the owner or purchaser of
the property, subject to the following requirements:
(A) Purpose.--The assistance shall be provided for
the purpose of rehabilitating the property for
continued use as housing affordable to low- and
moderate-income families.
(B) Eligible use.--Amounts from the grant or loan
may be used only for payment of nonrecurring
maintenance and capital improvements for the property,
and associated transaction costs, under such terms and
conditions as are determined by the Secretary.
(C) Per unit amount limitations.--The amount from a
grant or loan used with respect to a dwelling unit in
the property may not exceed the per unit dollar amount
limitation as the Secretary shall establish for
purposes of this paragraph for dwelling units of the
applicable size.
(D) Required extension of affordability
restrictions.--The Secretary may provide assistance
under this paragraph for a property only if the owner
of the property enters into such binding commitments as
the Secretary may require, which shall be applicable to
any subsequent owner, to ensure that the property will
be operated, for a period of not less than 30 years
that begins on the termination date for the property,
in accordance with all affordability restrictions that
are applicable to the property under the multifamily
housing subsidy program under which the property is
assisted before the termination date, with flexibility
to recognize more significant restrictions accompanying
other subsidies for the property.
(3) Assistance for purchase.--The Secretary may provide a
grant or loan under this paragraph to an eligible organization
under subparagraph (B) for acquisition of a covered multifamily
housing property, subject to the following requirements:
(A) Purpose.--The assistance shall be provided for
the purpose of facilitating acquisition of properties
by eligible organizations whose missions are to provide
affordable housing to low- and moderate-income
families.
(B) Eligible organizations.--A grant or loan under
this paragraph may be made only to a nonprofit
organization, a for-profit organization, or a public
housing agency (as such term is defined in section 3(b)
of the United States Housing Act of 1937 (42 U.S.C.
1437a(b)) that provides such assurances as the
Secretary may require that the organization--
(i) will acquire the property; and
(ii) is capable of managing the property
and related facilities (either directly or
through a contract) for the remaining useful
life of the property and related facilities.
(C) Eligible use.--Amounts from the grant or loan
may be used only to cover any direct costs (other than
the purchase price), including transaction costs,
incurred by the eligible organization in purchasing and
assuming responsibility for the property and related
facilities involved.
(D) Per unit amount limitations.--The amount from a
grant or loan used with respect to a dwelling unit in
the property may not exceed the per unit dollar amount
limitation as the Secretary shall establish for
purposes of this paragraph for dwelling units of the
applicable size.
(E) Required extension of affordability
restrictions.--The Secretary may provide assistance
under this paragraph for a property only if the
eligible organization that purchases the property
enters into such binding commitments as the Secretary
may require, which shall be applicable to any
subsequent owner, to ensure that the property will be
operated, for the remaining useful life of the
property, in accordance with all affordability
restrictions that are applicable to the property under
the multifamily housing subsidy program under which the
property is assisted before the termination date.
(4) Low- and moderate-income affordability assistance.--The
Secretary may provide new project-based assistance under
section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f) for currently unassisted units in covered multifamily
housing properties occupied by tenants otherwise eligible for
such assistance, subject to the following requirements:
(A) Purpose.--The assistance shall be provided for
the purpose of maintaining the affordability of
dwelling units in covered multifamily housing
properties not currently provided project-based rental
assistance.
(B) Eligibility.--Assistance may be made available
for a property only if the property--
(i) is located in an area having a
demonstrated demand for affordable rental
housing; or
(ii) may be subject to rent level increases
as the result of mortgage maturity or
termination or as the result of a
recapitalization activity approved by the
Secretary or the Secretary of Agriculture.
(C) Form and term.--The assistance shall be in the
form of a housing assistance payment contract under
such section 8 and shall be provided for such term as
may be agreed to by the Secretary and the owner of the
property. The form of assistance may include an
amendment of an existing assistance contract to cover
additional units in the subject property.
(D) Prevention of duplicative subsidies.--
Assistance may not be provided for any dwelling unit in
a property if such assistance would duplicate other
project- or tenant-based rental assistance of any kind
for the dwelling unit from any source.
(E) Amount and rent levels.--The Secretary shall
determine the amount of annual assistance provided for
a property based on rent levels, for the dwelling units
in the property that are subject to affordability
restrictions pursuant to subparagraph (F), that are
equal to the lesser of--
(i) comparable market rents for the market
area in which the property is located for
dwelling units of the applicable size; and
(ii) 150 percent of the fair market rentals
established under section 8(c) of the United
States Housing Act of 1937 for the market area
in which the property is located for dwelling
units of the applicable size.
(F) Required extension of affordability
restrictions.--The Secretary may provide assistance
under this paragraph for a property only if the owner
of the property enters into such binding commitments as
the Secretary may require, which shall be applicable to
any subsequent owner, to ensure that the property will
be operated, for a period not shorter than the term of
the assistance agreed to pursuant to subparagraph (C)
or 10 years, whichever is longer, that begins on the
termination date for the property, in accordance with
all affordability restrictions that are applicable to
the property under the multifamily housing subsidy
program under which the property is assisted before the
termination date.
(5) Authorization of appropriations.--There are authorized
to be appropriated for assistance under this subsection such
sums as may be necessary.
(b) Enhanced Vouchers.--
(1) Qualification; election to remain in unit.--Section
8(t)(1) of the United States Housing Act of 1937 (42 U.S.C.
1437f(t)(1)(B)) is amended--
(A) in the matter preceding subparagraph (A), by
inserting ``and shall not require that the family
requalify under the selection standards for a public
housing agency in order to be eligible for such
assistance'' before the comma; and
(B) by striking subparagraph (B) and inserting the
following new subparagraph:
``(B)(i) the assisted family may elect to remain in
the same project in which the family was residing on
the date of the eligibility event for the project
regardless of unit and family size standards normally
used by the administering public housing agency (except
that tenants may be required to move to units of
appropriate size if available on the premises), and the
owner of the unit shall accept the enhanced voucher and
terminate the tenancy only for serious or repeated
violation of the terms and conditions of the lease or
for violation of applicable law; and
``(ii) if, during any period the family makes such
an election and continues to so reside, the rent for
the dwelling unit of the family in such project exceeds
the applicable payment standard established pursuant to
subsection (o) for the unit, the amount of rental
assistance provided on behalf of the family shall be
determined using a payment standard that is equal to
the rent for the dwelling unit (as such rent may be
increased from time-to-time), subject to paragraph
(10)(A) of subsection (o) and any other reasonable
limit prescribed by the Secretary, except that a limit
shall not be considered reasonable for purposes of this
subparagraph if it adversely affects such assisted
families;''.
(2) Provision to residents of assisted multifamily projects
upon termination date.--
(A) Requirement.--Upon the termination date for
each assisted multifamily housing property, to the
extent that amounts for assistance under this paragraph
are provided in advance in appropriation Acts, the
Secretary of Housing and Urban Development shall make
enhanced voucher assistance under section 8(t) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(t))
available on behalf of each family described in
subparagraph (B). The Secretary shall make such
assistance available no later than 60 days before the
termination date on behalf of each family described in
subparagraph (B) that elects to move from the property.
(B) Eligibility.--A family described in this
subparagraph is a family who--
(i)(I) is a low-income family (as such term
is defined in section 3(b) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b))); or
(II) is a moderate-income family that is--
(aa) an elderly family (as such
term is used in section 3(b) of the
United States Housing Act of 1937 (42
U.S.C. 1437a(b)));
(bb) a disabled family (as such
term is used in section 3(b) of the
United States Housing Act of 1937 (42
U.S.C. 1437a(b))); or
(cc) residing in a low-vacancy area
(as determined by the Secretary); and
(ii) is residing in--
(I) a property that immediately
before such termination date was an
assisted multifamily housing property;
and
(II) a dwelling unit that is not
assisted after such termination date
under section 8 of the United States
Housing Act of 1937.
(C) Eligibility event.--Section 8(t)(2) of the
United States Housing Act of 1937 (42 U.S.C.
1437f(t)(2)) is amended by adding after the period at
the end the following new sentence: ``Such term
includes, with respect to an assisted multifamily
housing property (as such term is defined in section
102(f) of the Housing Preservation and Tenant
Protection Act of 2010), the occurrence of the
termination date (as such term is defined in such
section 102(f)) for the property.''
(3) Regulations.--The Secretary of Housing and Urban
Development shall issue regulations to implement the amendments
made by this subsection not later than the expiration of the 6-
month period beginning on the date of enactment of this Act,
and such regulations shall require that the provisions of such
amendments relating to termination of tenancy shall be
contained in the lease.
(c) Notification Requirement.--
(1) Timing.--An owner of an assisted multifamily housing
property, including any owner of a property with rent
limitations that expire concurrently with the expiration of the
term of the mortgage for the property, who intends to terminate
or alter the affordability restrictions for the property on or
after the termination date for the property shall, not less
than 12 months before such termination date, provide written
notice of such termination date to the Secretary of Housing and
Urban Development, the chief executive officer of the State and
the unit of general local government (as such term is defined
in section 104 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12704)) in which the property is
located, and each tenant of the property.
(2) Contents.--The notice shall include--
(A) a statement specifying any changes in the terms
or applicability of the affordability restrictions for
the property that the owner intends to make on or after
the termination date for the property;
(B) a statement that, if the owner proceeds with
such intended changes and the Congress makes funds
available, the Department of Housing and Urban
Development will provide tenant-based rental assistance
to all eligible residents, enabling them to choose the
place they wish to rent, which may include the right to
remain in the dwelling unit in which they currently
reside; and
(C) a statement that, if the Congress makes funds
available, the owner and the Secretary may yet agree to
renewal of assistance and affordability restrictions
for the property, thereby obviating the need for such
tenant-based rental assistance.
(3) Failure to provide notice.--If the owner does not
provide the notice required under this subsection,
notwithstanding any inapplicability of the affordability
restrictions for the property, the owner may not evict the
tenants or increase the tenants' rent payments until such time
as the owner has provided the notice and the 12-month period
beginning upon the provision of such notice has elapsed.
(4) Other terms.--The Secretary may, to preserve affordable
housing or protect tenants in such properties, establish
additional notice requirements.
(5) Savings provision.--This subsection may not be
construed to annul, alter, affect, or preempt any provision of
the law of a State or political subdivision thereof requiring
notice regarding termination of assistance or affordability
restrictions with respect to a multifamily housing project or
to exempt any person from complying with such a law.
(d) Projects With Common Use Agreements.--Notwithstanding any
provision of the Emergency Low Income Housing Preservation Act of 1987
(12 U.S.C. 1715l note), if two covered multifamily housing properties
are encumbered by use agreements that were recorded in land records on
the same date pursuant to such Act and both such properties are subject
to a single mortgage, both such use agreements shall be deemed to
expire on the earlier of the expiration dates stated in such use
agreements, but only if the owner of the properties agrees to maintain
any project-based rental assistance for both such properties for the
30-year period beginning upon such common expiration date. At the
request of the owner, the Secretary shall establish contract rents for
such project-based assistance at levels for comparable properties in
the same market area.
(e) Annual and Semiannual Reviews.--
(1) Annual review.--To ensure compliance with this section,
the Secretary shall conduct an annual review on actions taken
under this section and the status of covered multifamily
housing properties and submit a report to the Congress
regarding each such annual review.
(2) Semiannual review.--Not less than semiannually during
the 2-year period beginning on the date of the enactment of
this Act and not less than annually thereafter, the Secretary
shall submit reports to the Committee on Financial Services of
the House of Representatives and the Committee on Banking,
Housing, and Urban Affairs of the Senate stating, for such
periods, the total number of assisted multifamily housing
properties for which notification has been provided under
subsection (c) during such period, the total number of covered
multifamily housing properties for which assistance has been
provided under subsection (a), and the type or types of such
assistance provided.
(f) Definitions.--For purposes of this section:
(1) Affordability restrictions.--The term ``affordability
restrictions'' means, with respect to a covered multifamily
housing property, limits imposed by regulation, regulatory
agreement, or contract on tenant rents, rent contributions, or
income eligibility.
(2) Assisted multifamily housing property.--The term
``assisted multifamily housing property'' means a multifamily
housing project for which assistance is provided under a
multifamily housing subsidy program.
(3) Comparable properties.--The term ``comparable
properties'' means, with respect to a covered multifamily
housing property, properties in the same market area, where
practicable, that--
(A) are similar to the covered multifamily housing
property as to neighborhood (including risk of crime),
type of location, access, street appeal, age, property
size, apartment mix, physical configuration, property
and unit amenities, utilities, and other relevant
characteristics;
(B) are not receiving rental assistance of any kind
from any source; and
(C) are not subject to affordability restrictions
of any kind.
(4) Covered multifamily housing property.--The term
``covered multifamily housing property'' means an assisted
multifamily housing property for which the termination date
will occur within the 10-year period beginning on the date of
the enactment of this Act.
(5) Low-income family.--The term ``low-income family'' has
the meaning given such term in section 3(b) of the United
States Housing Act of 1937 (42 U.S.C. 1437a(b)).
(6) Moderate-income family.--The term ``moderate-income
family'' has the meaning given such term in section 229 of the
Low-Income Housing Preservation and Resident Homeownership Act
of 1992 (12 U.S.C. 4119).
(7) Multifamily housing subsidy program.--The term
``multifamily housing subsidy program'' means--
(A) the rent supplement program under section 101
of the Housing and Urban Development Act of 1965 (12
U.S.C. 1701s);
(B) the below-market interest rate mortgage
insurance program under section 221(d)(3) of the
National Housing Act (12 U.S.C. 1715l(d)(3));
(C) a contract under section 236(f)(2) of the
National Housing Act (12 U.S.C. 1715z-1(f)(2));
(D) the program for interest reduction payments
under section 236 of the National Housing Act (12
U.S.C. 1715z-1) and any comparable State program
providing for interest reduction payments;
(E) the program for supportive housing for the
elderly under section 202 of the Housing Act of 1959
(12 U.S.C. 1701q), including assistance under such
section as in effect before the enactment of the
Cranston-Gonzalez National Affordable Housing Act;
(F) the program for rural rental housing under
section 515 of the Housing Act of 1949 (42 U.S.C.
1485); and
(G) any other mortgage insurance program provided
under the National Housing Act for which the insured
property is subject to budget-based rent restrictions.
(8) Nonprofit organization.--The term ``nonprofit
organization'' has the meaning, with respect to housing
assisted under this section, given such term in section 202(k)
of the Housing Act of 1959 (12 U.S.C. 1701q(k)).
(9) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(10) Termination date.--The term ``termination date''
means, with respect to an assisted or a covered multifamily
housing property, the date that--
(A) the mortgage, loan, or capital advance for the
property matures or expires and the affordability
restrictions applicable to the property because of
assistance for the property pursuant to a multifamily
housing subsidy program terminate with respect to the
property;
(B) an assistance contract for the property that is
not renewed, terminates, or expires;
(C) in the case of a property that is not eligible
low-income housing, as such term is defined in section
229 of the Low-Income Housing Preservation and Resident
Homeownership Act of 1990 (12 U.S.C. 4119), the
mortgage or loan that covers the property is prepaid or
an insurance contract that covers the property
terminates; or
(D) use restrictions imposed with respect to the
property pursuant to the Emergency Low Income Housing
Preservation Act of 1987 expire.
(g) Regulations.--The Secretary may issue any regulations necessary
to carry out this section.
SEC. 103. ENHANCED VOUCHER ASSISTANCE AND PRESERVATION PROJECT-BASED
SECTION 8 ASSISTANCE FOR STATE-FINANCED AFFORDABLE
HOUSING.
(a) Enhanced Voucher Assistance.--
(1) Requirement.--Upon the prepayment or maturity of a
mortgage for which interest reduction payments have been made
through a State housing program or financed by a State housing
finance agency and subsidized by interest reduction payments
made pursuant to section 236 of the National Housing Act (12
U.S.C. 1715z-1), to the extent that amounts for assistance
under this subsection are provided in advance in appropriation
Acts, the Secretary of Housing and Urban Development shall make
enhanced voucher assistance under section 8(t) of the United
States Housing Act of 1937(42 U.S.C. 1437(t)) available on
behalf of families described in paragraph (2).
(2) Eligible families.--A family described in this
paragraph is a family that--
(A)(i) is a low-income family, as such term is
defined in section 3(b) of the United States Housing
Act of 1937 (42 U.S.C. 1437a(b)); or
(ii) is a moderate-income family that has an income
that is not less than 80 percent, and not greater than
95 percent, of the median income for the area, as
determined by the Secretary, that--
(I) is an elderly family (as such term is
used in section 3(b) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b));
(II) is a disabled family (as such term is
used in such section 3(b); or
(III) resides in a low-vacancy area, as
determined by the Secretary; and
(B) on such prepayment or maturity date is residing
in dwelling unit of the project that--
(i) immediately before such prepayment or
maturity was subject to the mortgage for which
interest reduction payments were made and
subject to affordability restrictions; and
(ii) is not assisted after such prepayment
or maturity date under section 8 of the United
States Housing Act of 1937, other than as
provided under section 8(t)(4) of the United
States Housing Act of 1937 (42 U.S.C.
1437f(t)(4)).
(3) Eligibility event.--Paragraph (2) of section 8(t) of
the United States Housing Act of 1937 (42 U.S.C. 1437f(t)(2)),
as amended by the preceding provisions of this Act, is further
amended by adding after the period at the end the following new
sentence: ``Such term also includes, with respect to a
multifamily family housing project with a mortgage for which
interest reduction payments have been made through a State
housing program or financed by a State housing finance agency,
the prepayment or maturity of such mortgage which results in
eligible residents of such housing project being eligible for
enhanced voucher assistance under this subsection, pursuant to
section 103(a) of the Housing Preservation and Tenant
Protection Act of 2010.''.
(b) Preservation Project-Based Section 8 Assistance.--
(1) In general.--Notwithstanding any other provision of
law, in connection with the prepayment or maturity of a
multifamily housing project mortgage subsidized by interest
reduction payments made through a State housing program or
financed by a State housing finance agency and subsidized by
interest reduction payments made pursuant to section 236 of the
National Housing Act (12 U.S.C. 1715z-1), to prevent
displacement of residents and to further preservation and
affordability of such multifamily housing project, at the
election of the project owner and in lieu of enhanced voucher
assistance under subsection (a) of this section or project-
based voucher assistance under subsections (t)(4) and
(o)(13)(N) of section 8 of the United States Housing Act of
1937 (42 U.S.C. 1437f), the Secretary of Housing and Urban
Development shall, pursuant to the authority under subsections
(a) and (b) of such section 8, enter an annual contributions
contract with the State housing finance agency to permit the
State housing finance agency enter project-based assistance
contract under this subsection covering all units in the
project for which such enhanced or project-based voucher
assistance would otherwise be provided.
(2) Contract terms.--Any project-based assistance contract
pursuant to this subsection shall--
(A) be considered for all purposes a contract
entered into under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f);
(B) have a term of at least 20 years;
(C) provide such assistance at rent levels
established as provided under section 524 of the
Multifamily Assisted Housing Reform and Affordability
Act of 1997 (42 U.S.C. 1437f note);
(D) be subsequently renewable at the request of the
owner under such section 524;
(E) be subject to the availability of amounts
provided in appropriations Acts; and
(F) be subject to such other terms as the Secretary
considers appropriate.
(3) Income targeting.--To the extent that dwelling units
subject to an assistance contract under this paragraph are
occupied by families eligible for enhanced voucher assistance
under section 8(t) of the United States Housing Act of 1937 (42
U.S.C. 1437f(t)), the units shall be considered to be in
compliance with all income targeting requirements under the
United States Housing Act of 1937.
(4) Tenant eligibility.--Notwithstanding any other
provision of law, in the multifamily housing project for which
project-based assistance is provided pursuant to this
subsection, each eligible family described in subsection (a)(2)
of this section that resides in a dwelling unit in such project
on the date such assistance contract first becomes effective
shall be considered to meet any applicable requirements for
income eligibility and occupancy.
(5) Contract administration.--Notwithstanding any other
provision of law, any contract for project-based assistance
entered into pursuant to this subsection shall be administered
by the project-based contract administrator of the State in
which the multifamily housing project is located.
SEC. 104. PROJECT-BASED PRESERVATION ASSISTANCE.
(a) Enhanced Vouchers.--Section 8(t) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(t)) is amended--
(1) by redesignating paragraph (4) as paragraph (5); and
(2) by inserting after paragraph (3) the following new
paragraph:
``(4) Project-based preservation assistance.--
``(A) Authority.--Notwithstanding any other
provision of law, in the case of a multifamily housing
project eligible under subparagraph (C), the Secretary
shall, subject to the availability of amounts provided
in advance in appropriation Acts and at the request of
the owner of the project, provide project-based
preservation assistance in accordance with this
paragraph, in such form authorized in subparagraph (B)
as is requested by the owner, in lieu of enhanced
voucher assistance under this subsection. Such owner of
the project shall agree to accept such project-based
preservation assistance for a period of not less than
20 years: Provided, That any renewal contract during
such period is offered on terms and conditions
comparable to the original contract.
``(B) Forms.--Project-based preservation assistance
provided in accordance with this paragraph shall be in
one of the following forms:
``(i) Project-based preservation
vouchers.--Project-based voucher assistance,
which shall be provided in accordance with
subsection (o)(13)(N).
``(ii) Project-based assistance.--Project-
based assistance under the terms and conditions
in section 524 of the Multifamily Assisted
Housing Reform and Affordability Act of 1997
(42 U.S.C. 1437f note). In determining the
initial rent levels for a contract for project-
based assistance under this subparagraph, the
Secretary shall establish initial contract
rents at the comparable market rents for the
area (as such term is defined in section
524(a)(5) of the Multifamily Assisted Housing
Reform and Affordability Act of 1997 (42 U.S.C.
1437f note)).
``(C) Eligible projects.--A multifamily housing
project is eligible under this subparagraph if--
``(i)(I) an eligibility event for the
project occurs; and
``(II) the project is not a project for
which the owner has opted not to renew a
contract for project-based rental assistance
under this section; or
``(ii) enhanced voucher assistance has
already been provided for the project pursuant
to the conditions specified in subparagraph
(F)(ii).
``(D) Eligible units.--
``(i) Income eligibility.--Assistance
pursuant to this paragraph may be provided for
all dwelling units in a multifamily housing
project for which tenants residing in the
project at the time assistance is initially
provided meet income eligibility requirements
for enhanced voucher assistance under this
subsection.
``(ii) Additional units.--At the request of
the owner of a multifamily housing project for
which assistance pursuant to this paragraph is
provided, the Secretary may approve assistance
for additional dwelling units, which may
include units that are vacant at the time of
the eligibility event, subject to a
determination by the Secretary that such
additional assistance is necessary or desirable
to further the purposes reflected in
subparagraph (E).
``(iii) Rent payments.--Eligible families
residing in a project at the time assistance
pursuant to this paragraph is provided shall be
subject to the provisions of subparagraphs (A)
and (D) of paragraph (1) of this subsection.
Notwithstanding the preceding sentence, an
eligible family that is a low-income family
shall not be required to pay as rent for a
dwelling unit assisted pursuant to this
paragraph an amount that exceeds 30 percent of
the family's adjusted monthly income.
``(iv) Income eligibility.--For purposes of
income targeting requirements under section 16
of the United States Housing Act of 1937 (42
U.S.C. 1437n), tenants initially assisted under
this paragraph shall not be considered new
tenants.
``(E) Required determinations.--As a condition of
entering into a contract pursuant to this paragraph,
the Secretary shall have determined, pursuant to
standards established by the Secretary and before
entering into such contract, that--
``(i) the housing to be assisted under the
contract is economically viable; and
``(ii)(I) there is a significant demand for
the housing;
``(II) the housing will contribute to a
community revitalization plan or to
deconcentrating poverty and expanding housing
and economic opportunities; or
``(III) the continued affordability of the
housing otherwise is an important asset to the
community.
The Secretary may delegate the authority to make the
determination under this subparagraph to the public
housing agency or project-based contract administrator
that would administer project-based assistance for such
project. Such public housing agency or project-based
contract administrator shall apply such standards as
the Secretary shall establish in making such
determination.
``(F) Timing of request.--
``(i) Projects for which request is made
before eligibility event.--In the case of a
project eligible for assistance under
subparagraph (C)(i) that is requested prior to
the occurrence of the eligibility event, a
contract for assistance pursuant to this
paragraph shall be provided upon the occurrence
of the eligibility event.
``(ii) Request made after issuance of
enhanced vouchers.--In the case of a project
eligible for assistance under subparagraph
(C)(ii) that is requested after the issuance of
enhanced voucher assistance for the project, a
contract for assistance pursuant to this
paragraph shall be provided only--
``(I) if the eligibility event for
the project occurred before the date of
the enactment of the Housing
Preservation and Tenant Protection Act
of 2010 and a request for such
assistance is made within 12 months
after such date of enactment (or such
longer period as the Secretary may
permit to facilitate preservation of
the project as affordable housing);
``(II) if the project is sold or
otherwise transferred and the new owner
requests such assistance within 12
months (or such longer period as the
Secretary may permit to facilitate
preservation of the project as
affordable housing) of such purchase;
or
``(III) in such other circumstances
as the Secretary may determine are
necessary or appropriate to facilitate
preservation of the project as
affordable.
Assistance for projects eligible pursuant to
subparagraph (C)(ii) may only be provided as
project-based preservation voucher assistance
under subparagraph (B)(i). Such contract shall
cover all dwelling units in the project that
are occupied by tenants receiving enhanced
voucher assistance at the time the contract is
effective, plus any additional units as may be
approved for the project pursuant to
subparagraph (D)(ii).''.
(b) PHA Project-Based Voucher Assistance.--Paragraph (13) of
section 8(o) of the United States Housing Act of 1937 (42 U.S.C.
1437f(o)(13)) is amended by adding at the end the following new
subparagraph:
``(N) Preservation assistance.--
``(i) Authority.--Project-based voucher
assistance in accordance with this subparagraph
shall be provided for projects eligible for
such assistance pursuant to subsection (t)(4).
``(ii) Authority for higher rents.--At the
request of the owner of a multifamily housing
project for a contract for assistance in
accordance with this subparagraph to establish
rents at levels above those permitted by
subparagraph (H) of this paragraph, a public
housing agency may request, and the Secretary
may approve, higher unit rents if necessary to
preserve housing opportunities that further the
purposes of subsection (t)(4)(E).
``(iii) Projects in multiple pha
jurisdictions.--If the Secretary has not
entered into a contract with a public housing
agency to provide enhanced voucher assistance
under subsection (t) for the project at the
time the owner of a multifamily housing project
requests assistance in accordance with this
subparagraph, and the project is located within
the jurisdiction for the program under this
subsection of more than one public housing
agency, in determining which agency will
administer such assistance, the Secretary
shall--
``(I) consider the ratio of the
number of vouchers to be awarded under
this subparagraph and of other project-
based vouchers administered under this
paragraph to the total number of
vouchers administered by an agency; and
``(II) among other factors, provide
preference to an agency for which the
total number of project-based vouchers
administered under this paragraph,
including vouchers to be awarded
pursuant to this subparagraph, would
not exceed 50 percent of the total
number of all vouchers to be
administered by the agency after such
award.
The Secretary shall establish guidelines for
determining which agency will administer
assistance if a unit is not located within the
jurisdiction of any public housing agency that
administers vouchers.
``(iv) Inapplicability of goals.--
Subparagraph (C) shall not apply to a housing
assistance payment contract pursuant to this
subparagraph.
``(v) Disregard of assistance under
percentage limitation.--Amounts provided
pursuant to this subparagraph shall not be
considered for purposes of calculating the
limitation under subparagraph (B).
``(vi) Inapplicability of income-mixing
requirement.--Subparagraph (D) shall not apply
with respect to a housing assistance payments
contract pursuant to this subparagraph.''.
SEC. 105. PRESERVATION OF STATE-FINANCED AFFORDABLE HOUSING.
(a) Maximum Contract Term.--In the case of a State housing finance
agency that has entered into a housing assistance payments contract
with the owner of a housing project for project-based rental assistance
under section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f), using the November 1975 version of form HUD 52645A of the
Department of Housing and Urban Development, under the Section 8
Housing Assistance Payment Program for State Housing Finance and
Development Agencies, if such contract provides that the maximum total
term of the contract for any dwelling unit shall not exceed a period
terminating on the date of the last payment of principal due on the
permanent financing, the Secretary of Housing and Urban Development
shall treat such provision as providing for a maximum term extending to
the originally scheduled maturity date of the permanent financing,
without regard to any prepayment of such permanent financing.
(b) Amendment to Mark-to-Market Provisions.--Section 524 of the
Multifamily Assisted Housing Reform and Affordability Act of 1997 is
amended--
(1) by redesignating subsection (g) as subsection (i); and
(2) by inserting after subsection (f) the following new
subsection:
``(g) State Housing Agency Contracts.--
``(1) Rent adjustments for extended contracts.--In the case
of a contract for project-based assistance under section 8 of
the United States Housing Act of 1937 pursuant to the State
Housing Agencies program governed by part 883 of the
Secretary's regulations (24 C.F.R. 883), the provisions of this
section authorizing the increase of rent levels to comparable
market rents shall apply upon the expiration of any contract
term, notwithstanding the renewal provisions of the contract.
If, at any time during the five-year period ending upon the
final expiration date of any such contract, the owner of the
housing project assisted under the contract enters into a
binding commitment to renew the contract at the rent levels
authorized under subsection (a)(4)(A) for an additional five-
year term beginning upon the final expiration of the contract,
the annual rent adjustment during such five-year period ending
upon such final expiration date may be to such rent levels.
``(2) Projects with debt financing.--In the case of a
contract for project-based assistance under section 8 for a
project with debt financing provided by a State housing agency
or local housing authority, with the approval of the State
housing agency or local authority, the owner may terminate the
contract and enter into a new contract for project-based
assistance under this section for a term of 20 years, subject
to the availability of amounts provided by appropriation Acts,
but only if the owner enters into an enforceable commitment to
preserve the affordability of the project for not fewer than 55
years from the date of such contract, subject to the continued
provision of rental assistance under section 8 or a comparable
program.''.
SEC. 106. PRESERVATION EXCHANGE PROGRAM.
(a) Establishment of Program.--The Secretary of Housing and Urban
Development shall carry out a preservation exchange program under this
section to provide for the transfer of preservation projects to
purchasers who agree to maintain the projects for use for affordable
housing.
(b) Participation.--
(1) Election.--The Secretary shall provide for owners of
preservation projects to elect, in accordance with such
procedures as the Secretary shall establish, to participate in
the preservation exchange program under this section.
(2) Transfer of preservation projects.--A selling owner of
a preservation project may, in accordance with this section,
enter into a contract for transfer of the project to a
preservation purchaser during the 12-month period beginning
upon such election.
(3) Offer period.--A selling owner of a preservation
project shall agree not to sell, transfer, or further encumber
the preservation project during the period of the owner's
participation in the program, with respect to such project,
except as otherwise provided in this section.
(4) Compliance with program requirements.--Except as
otherwise provided by the Secretary, a preservation project may
be sold under the program only if all of the parties to the
transaction comply with the requirements of this section.
(c) Notice of Participation and Certification.--
(1) Recipients; timing.--Each selling owner shall of a
preservation project shall--
(A) not later than the date that is 12 months
before the date of maturity or expiration of the
mortgage on the preservation project, provide written
notice of election to participate in the program with
respect to the project to--
(i) the Secretary;
(ii) each tenant of the project;
(iii) any public housing agency or other
organization representing tenants of the
preservation project; and
(iv) qualified State and local authorities;
and
(B) post such notice conspicuously in the common
area of the preservation project for the duration of
the 12-month period beginning on the date that notice
is required to be provided pursuant to subparagraph
(A).
(2) Contents.--Notice required under subparagraph (A)
shall--
(A) include a statement that the selling owner has
elected to participate in the preservation exchange
program and to seek a contract for sale of the
preservation project to a preservation purchaser within
the 12-month period following the date of the notice,
or within such other time period as permitted by this
section;
(B) clearly identify the preservation project;
(C) identify, and provide contact information for,
the selling owner; and
(D) include such other information regarding the
preservation project and its potential sale under the
program as the Secretary may require, which shall
include information concerning any applicable subsidies
or restrictions applicable to the preservation project.
(3) Certification.--Not later than 7 days after completion
of all notice requirements of paragraph (1) with respect to a
preservation project, the selling owner shall certify in
writing to the Secretary that notice to all recipients has been
provided as required under this section.
(4) Notification to congress and public.--Not later than 14
days after certification pursuant to paragraph (3) is provided
to the Secretary regarding a preservation project, the
Secretary shall--
(A) provide to the Member of the House of
Representatives representing the district in which the
project is located, and to the Members of the Senate
for the State in which the project is located, a copy
of such notice and certification; and
(B) make such notice and certification publicly
available at an easily identifiable World Wide Web
location of the Department of Housing and Urban
Development.
(d) Opportunity To Purchase.--
(1) Notification; offer.--During the offer period referred
to in subsection (b)(3) with respect to a preservation
project--
(A) the Secretary shall post on an easily
identifiable World Wide Web location of the Department
of Housing and Urban Development information that
identifies the preservation project as eligible for
purchase or transfer pursuant to the preservation
exchange program, additional information about the
property, as determined by the Secretary, and the
identity of a contact person on behalf of the selling
owner who may be contacted by a potential preservation
purchaser; and
(B) a potential preservation purchaser may make an
offer to purchase the preservation project, in
accordance with the requirements of this section, by
providing the offer, in writing, to the selling owner
and a copy of the offer to the Secretary.
(2) Determination of bona fide offer.--During the 21-day
period beginning upon receipt of a copy of an offer to purchase
a preservation project made by a potential preservation
purchaser pursuant to paragraph (1)(B) (in this subsection
referred to as the ``review period''), the Secretary shall--
(A) review the terms of the offer to purchase and
determine whether it is a bona fide preservation
purchase offer meeting the requirements of subsection
(e); and
(B) provide notice of such determination to the
parties.
If the parties do not receive such notice of such determination
from the Secretary during the review period, notwithstanding
subsection (i)(1), the offer shall be considered for purposes
of this section to be a bona fide preservation purchase offer.
(3) Tolling of other periods.--During the review period for
an offer to purchase a preservation project or until earlier
receipt of a determination from the Secretary under paragraph
(2), all other time periods set forth in this section shall be
tolled with respect to such preservation project.
(4) Action on offer.--With respect to a bona fide offer to
purchase a preservation project made by a potential
preservation purchase, during the 30-day period that begins
upon the earlier of the receipt of a determination from the
Secretary under paragraph (2) regarding the offer or the
expiration of the review period, the selling owner shall accept
or reject the offer, subject to the conditions and requirements
set forth in this section.
(5) Accepted offer; contract.--If a selling owner accepts a
bona fide preservation purchase offer made by a potential
preservation purchaser, such parties shall promptly enter into
a binding contract that reflects the terms of the accepted
offer.
(6) Declined offer.--If a selling owner declines to accept
any bona fide preservation purchase offer made to the owner,
such owner shall--
(A) provide to the Secretary a written explanation
of the basis for its decision; and
(B) repay to the Secretary all funds it received as
a participant in the program, plus interest at rate
determined by the Secretary at the time the funds were
made available.
(e) Bona Fide Preservation Purchase Offer.--An offer to purchase a
preservation project shall constitute a bona fide preservation purchase
offer meeting the requirements of this subsection only if the offer--
(1) includes an agreement by the preservation purchaser to
enter into such agreements, which shall be contained in the
deed or other recorded instruments for the preservation
project, as specified by the Secretary, that ensure that the
preservation project will remain affordable for very-low income
families for a period of not less than 40 years from the date
of transfer pursuant to sale under such offer, utilizing all
available assistance, including renewal of existing Federal
assistance contracts and leasing to holders of tenant-based
assistance;
(2) includes an agreement by the preservation purchaser to
accept any contract for project-based rental assistance
applicable to the preservation project, notwithstanding the
transfer of the preservation housing to the preservation
purchaser, including the renewal of such contract upon
expiration, for a period of not less than 40 years from the
date of transfer;
(3) requires that the preservation purchaser execute such
agreements, which shall be contained in the deed or other
recorded instruments for the preservation housing, as specified
by the Secretary, that ensure that the preservation project and
related facilities will remain affordable for very-low income
households for a period of not less that 40 years from the date
of transfer, using all available assistance, including renewal
of existing Federal assistance contracts and leasing to holders
of tenant-based assistance; and
(4) includes such other terms and conditions as may be
required by the Secretary.
(f) Incentives.--Notwithstanding any other provision of law or
regulation, the Secretary may, with respect to a preservation project--
(1) suspend physical inspections and management reviews of
the project, during the period that begins upon the provision
to the Secretary by the selling owner notice of its election to
participate in the program and ending upon the completion of
the transfer of the preservation project to a preservation
purchaser or termination of participation of the selling owner
in the program;
(2) streamline approval of requests for prepayment,
assignment of Housing Assistance Payments contracts, transfer
of physical assets, and other activities and functions, to
facilitate the sale or transfer under the program to a
preservation purchaser;
(3) release project resources, in the form of reserve for
replacement funds or project residual receipts, to the selling
owner for purposes related to preparation of the preservation
project for sale under the program, applicable pre-development
costs, or transaction costs related to sale or transfer of the
preservation project under the program;
(4) provide advances in the form of a forgivable loan for
the selling owner to be used for direct predevelopment and
administrative costs for preparation of the preservation
project for sale under the program, and the transfer of the
preservation project to the preservation purchaser, but not
including compensation for property value beyond the purchase
price;
(5) provide grants or loans to a preservation purchaser who
has entered into a bona fide preservation purchase contact
under the program with the selling owner, which grant or loan
funds shall be used for to purchase or rehabilitate the
preservation project; and
(6) provide grants or loans pursuant to section 102(a) of
this Act to a preservation purchaser who has entered into a
bona fide preservation purchase contract under the program with
the selling owner.
(g) Release of Selling Owner.--Upon closing of the sale or transfer
of the preservation project pursuant to this section--
(1) the selling owner shall be released from obligations
with respect to the preservation project under--
(A) the new construction, substantial
rehabilitation, moderate rehabilitation, property
disposition, and loan management set-aside programs,
and any other program providing project-based
assistance, under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f);
(B) the below-market interest rate program under
paragraphs (3) and (5) of section 221(d)(3) of the
National Housing Act (12 U.S.C. 1715(d));
(C) section 236 of the National Housing Act (12
U.S.C. 1715z-1);
(D) section 202 of the Housing Act of 1959 (12
U.S.C. 1701q);
(E) the rent supplement program under section 101
of the Housing and Urban Development Act of 1965 (12
U.S.C. 1701s); or
(F) other Federal affordable housing programs, as
identified by the Secretary; and
(2) the preservation purchaser agrees--
(A) to operate the preservation project in
accordance with the provisions of this section and any
agreements entered into pursuant to this section; and
(B) to maintain any existing limits or restrictions
on the amount of tenant rents, rent contributions, or
income eligibility of tenants, or on the use of the
preservation project, as required by the Secretary, for
a period of not less than 40 years from the transfer
date, except that rents may be increased to the extent
that additional project-based assistance is provided by
the Secretary.
(h) Renewal of Participation in Program.--
(1) In general.--A selling owner who has participated in
the program in good faith for 12 months and does not receive or
does not reject a bona fide preservation purchase offer during
that 12-month period of participation may seek approval of the
Secretary to renew its participation for an additional 12-month
period. A request for renewal under this paragraph shall be
subject to the same provisions of subsection (c) applicable to
a notice of election to participate in the program.
(2) Timing.--A request for renewal may be made, but shall
not be required to be made, immediately upon the expiration of
the selling owner's initial 12-month period of participation in
the program.
(3) Approval.--The Secretary may, at the discretion of the
Secretary, approve or reject a renewal request under this
subsection. A renewal request that is not accepted or rejected
by the Secretary during the 30-day period beginning upon
receipt of the request by the Secretary shall be considered for
purposes of this section to have been accepted.
(4) Terms.--A selling owner who renews participation in the
program shall be subject to the requirements and procedures for
participation under this section for the initial term of
participation.
(i) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Bona fide preservation purchase offer.--The term ``bona
fide preservation purchase offer'' means an offer to purchase a
preservation project that has been determined by the Secretary,
pursuant to subsection (d)(2) to meet the requirements under
subsection (e).
(2) Eligible jurisdiction.--The term ``eligible
jurisdiction'' means an area so designated by the Secretary for
purposes of this section.
(3) Preservation contract.--The term ``preservation
contract'' means any contract for sale or transfer of a
preservation project pursuant to the provisions of this
section.
(4) Preservation exchange program.--The terms
``preservation exchange program'' and ``program'' mean the
preservation exchange program authorized by, and established
pursuant to, this section.
(5) Preservation project.--The term ``preservation
project'' means any multifamily housing project that--
(A) has been specifically identified to the
Secretary by a selling owner as available for purchase
or transfer under the preservation exchange program;
(B) is located in an eligible jurisdiction;
(C) is financed by a loan or mortgage that will
mature or expire within 5 years of the election by the
selling owner to participate in the preservation
exchange program; and
(D) is insured or assisted under--
(i) the new construction, substantial
rehabilitation, moderate rehabilitation,
property disposition, and loan management set-
aside programs, or any other program providing
project-based assistance, under section 8 of
the United States Housing Act of 1937 (42
U.S.C. 1437f);
(ii) the below-market interest rate program
under paragraphs (3) and (5) of section
221(d)(3) of the National Housing Act (12
U.S.C. 1715(d));
(iii) section 236 of the National Housing
Act (12 U.S.C. 1715z-1);
(iv) section 202 of the Housing Act of 1959
(12 U.S.C. 1701q);
(v) the rent supplement program under
section 101 of the Housing and Urban
Development Act of 1965 (12 U.S.C. 1701s); or
(vi) any other Federal affordable housing
program, as identified by the Secretary.
(6) Preservation purchaser.--The term ``preservation
purchaser'' means any person or entity that acquires a
preservation project pursuant to an agreement to participate in
the preservation exchange program.
(7) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(8) Selling owner.--The term ``selling owner'' means, with
respect to a preservation project, the person or entity that
owns the project and that has elected to participate in the
preservation exchange program with respect to such project.
(j) Effect of Participation.--During the time that the owner is
participating in the preservation exchange program with respect to a
preservation project, such owner and such project shall not be subject
to the requirements under section 107 of this Act.
(k) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary such sums as may be necessary to carry
out this section, including amounts for the provision of additional
educational services and training and technical assistance and to
provide information to the public and to potential participants in the
preservation exchange program to facilitate participation in the
program, and for other activities to promote the preservation of
affordable housing.
(l) Regulations.--The Secretary shall issue any regulations
necessary to carry out this section.
SEC. 107. FEDERAL FIRST RIGHT OF REFUSAL.
(a) Notice of Termination of Affordability Restrictions.--
(1) Notice of termination.--
(A) Requirement.--Except as provided in
subparagraph (D), an owner of covered housing shall
provide written notice under subparagraph (B) of any
termination of the affordability restrictions affecting
the covered housing, not later than one year, but no
earlier than three years, before such termination to--
(i) all tenants and the resident council,
if any, of the covered housing;
(ii) the State housing agency or comparable
State agency of the State in which the housing
is located; and
(iii) the Secretary.
Nothing in this section shall prohibit an owner from
taking actions to terminate an affordability
restriction during any notice period under this
section; except that an owner shall comply with all of
the notice terms and restrictions pursuant to
paragraphs (2) and (3).
(B) Contents.--Written notice under this
subparagraph with respect to covered housing shall
include--
(i) the address of the covered housing;
(ii) the name and address of the owner;
(iii) a statement identifying that an
affordability restriction may terminate;
(iv) the date on which each affordability
restriction may terminate; and
(v) such other information as may be
required by the Secretary.
(C) Single notice covering multiple terminations.--
In any case in which more than one termination is
scheduled to occur within a 12-month period, an owner
may provide a single written notice covering all such
terminations, but only if the notice is provided in
accordance with subparagraph (A) at least one year
before the earliest such termination and the notice
otherwise complies with this paragraph.
(D) Transition.--Subparagraph (A) shall not apply
with respect to covered housing subject to an
affordability restriction that, as of the effective
date under subsection (j), has less than two years of
applicability remaining. Such covered housing shall be
subject to paragraph (5).
(2) Notice of intent to complete termination.--An owner of
covered housing shall not complete a termination or allow a
termination to occur with respect to such housing unless, not
later than one year before the completion of the last
termination event affecting the covered housing, the owner
provides the entities identified in paragraph (1) with written
notice of intent to complete such termination. The notice shall
include--
(A) the address of the covered housing;
(B) the name and address of the owner;
(C) the date on which the owner intends to complete
termination; and
(D) such other information as may be required by
the Secretary.
(3) Opportunity for purchase by secretary.--Except as
provided in subsection (d), an owner of covered housing shall
not sell the covered housing at any time before--
(A) providing notice, in writing, to the parties
identified in paragraph (1) of the owner's intention to
sell the property; and
(B) offering the Secretary the opportunity to
purchase the property pursuant to subsection (b).
(4) Delivery of notice.--
(A) In general.--Except as provided in subparagraph
(B), any notice required by this subsection shall be
deemed to have been provided when delivered in person
or mailed by certified or registered mail, return
receipt requested, to the party to whom notice is
required.
(B) Notice to tenant.--With respect to any notice
to tenants required by this subsection, any such notice
shall be deemed to have been provided upon the when--
(i) the notice is delivered in hand to the
tenant or an adult member of the tenant's
household;
(ii) the notice is sent by first class
mail; or
(iii) a copy is left in or under the door
of the tenant's dwelling unit.
(5) Transition.--Notwithstanding paragraph (1) of this
subsection, an owner of covered housing who, on the effective
date under subsection (j), has less than one year remaining
before the date when the affordability restriction will cease
to apply to such housing, shall not be required to give the
one-year notice required by paragraph (1), but shall provide
such notice within 90 days after the effective date under
subsection (j). Notwithstanding paragraph (2) of this
subsection, an owner who, on the effective date under
subsection (j), has less than one year remaining before a
termination shall not be required to give the one-year notice
required by paragraph (2), but shall provide such notice within
90 days after such effective date.
(6) Effect of offer, purchase, or sale.--The notice
requirements of this subsection shall not be affected by the
status of an offer, purchase contract, or sale under subsection
(b) or (c).
(b) Right of Secretary to Make Offer.--
(1) Opportunity for purchase by secretary.--An owner of
covered housing shall offer the Secretary an opportunity to
purchase the covered housing, in accordance with this
subsection, before entering into any agreement to sell such
housing to a third party. This paragraph may not be construed
to establish any obligation on the part of an owner of covered
housing to enter into an agreement to sell such housing to the
Secretary.
(2) Assignee of secretary.--
(A) Authority to select.--The Secretary may select
an assignee to act on behalf of the Secretary under
this subsection as the purchaser of covered housing and
shall give the owner written notice of any assignee
selected.
(B) Agreement.--The Secretary shall enter into a
written agreement with any assignee selected, which
shall provide that the assignee, and any of its
successors or assigns, agree to preserve the
affordability of the covered housing. Upon entering
into such an agreement, the assignee shall assume all
rights and responsibilities of the Secretary as a
prospective purchaser under this subsection and
subsection (c).
(C) Revocation.--At any time before a sale of
covered housing under this subsection or subsection
(d), the Secretary may revoke the selection and
designation of an assignee with respect to the covered
housing pursuant to this paragraph and assume the
rights and responsibilities in the Secretary's own
capacity or select a new assignee and enter into an
agreement under subparagraph (B) with such assignee. No
action under this subparagraph shall operate to extend
or alter any time periods for performance under this
section or in any purchase contract entered into
pursuant to this section.
(3) Purchase offer.--
(A) Timing.--During the 90-day period with respect
to covered housing that begins upon receipt of notice
pursuant to subsection (a)(3) of the owner's intention
to sell the covered housing, the Secretary may submit
an offer to the owner to purchase the covered housing.
(B) Failure to submit.--Failure by the Secretary to
submit an offer to purchase covered housing during the
period under subparagraph (A) shall constitute an
irrevocable waiver of the Secretary's rights under this
subsection and the owner may sell the covered housing
subject to subsection (c).
(C) Acceptance.--If the owner accepts the initial
or any revised offer of the Secretary, the owner and
the Secretary shall enter into such other agreements as
are necessary and appropriate to complete the purchase.
If the owner and the Secretary have not entered into an
agreement for the Secretary to purchase the property
within 90 days after receipt of the notice pursuant to
subsection (a)(3), the owner may enter into an
agreement to sell the property to a purchaser of the
owner's choice, subject to subsection (c).
(4) Availability of documents.--
(A) Requirement.--If the Secretary makes a request
pursuant to this subparagraph to the owner of covered
housing at any time after notice required under
subsection (a)(1) has been provided, the owner shall,
within 10 days after receiving the request, make the
documents described in subparagraph (B) available to
the Secretary for review and photocopying during normal
business hours at the owner's principal place of
business or at a commercial photocopying facility.
(B) Covered documents.--The documents described in
this subparagraph with respect to covered housing shall
include--
(i) any existing architectural plans and
specifications of the covered housing;
(ii) itemized lists of monthly operating
expenses and capital expenditures for the
covered housing in each of the two preceding
calendar years;
(iii) any capital needs studies or market
studies for the covered housing that have been
submitted to a Federal, State, or local agency
in the preceding three years;
(iv) utility consumption rates for the
covered housing for preceding year;
(v) the last two audited annual financial
statements and physical inspection reports for
the covered housing filed with Federal, State,
or local agencies;
(vi) the most recent rent roll for the
covered housing showing then-current vacancies
and rent arrearages;
(vii) a statement of the approximate
annualized vacancy rate for the covered housing
for each of the two preceding calendar years;
and
(viii) any other documents relating to the
covered housing that the Secretary considers
appropriate.
(C) Protection of information.--Documents obtained
pursuant to a request under this paragraph shall not be
considered public records, and the Secretary shall not
make such documents available to the public without the
written consent of the owner or pursuant to a court
order, except that disclosure of such documents may be
made to potential funding sources, regulatory agencies,
or agents or consultants of the Secretary in connection
with a purchase transaction pursuant to this
subsection, subject to appropriate confidentiality
agreements.
(5) Inspections.--
(A) In general.--Subject to execution of an access
and confidentiality agreement in accordance with
subparagraph (B), upon request by the Secretary and
with appropriate notice, the owner shall permit
reasonable inspections of the dwelling units, building
systems, common areas, and common grounds of the
covered housing by agents, consultants, and
representatives of the Secretary or the assignee of the
Secretary, including inspections related to
environmental, engineering, structural, or zoning
matters.
(B) Access and confidentiality agreement.--An
access and confidentiality agreement in accordance with
this subparagraph is an agreement, entered into by the
owner of covered housing and any agents, consultants,
or representatives of the Secretary or the assignee of
the Secretary, in a form approved by the Secretary,
with respect to such matters as insurance to be carried
by the inspectors of the covered housing, indemnities
of the owner, restrictions on invasive testing,
restoration requirements, the timing of such
inspections, and the requirement to maintain
confidentiality with respect to all matters discovered.
(6) Notification to tenants.--Not later than 30 days after
the Secretary submits an offer to purchase the covered housing
pursuant to subsection (c), the Secretary shall notify tenants
in the housing development of its plans.
(c) First Right of Refusal.--
(1) Sale to third party.--An owner of covered housing may
execute a purchase contract with a third party to sell the
covered housing pursuant to this subsection during the one-year
period that begins upon the date on which notice for such
housing was provided to the Secretary pursuant to subsection
(a)(3). After such period expires, the owner may not sell the
housing without providing notice of such sale in accordance
with subsection (a)(3)(A).
(2) Matching of third party offer by secretary or other
party.--
(A) Notice of third party purchase contract.--Upon
execution of a third party purchase contract for
covered housing, the owner shall, within 7 days, submit
a copy of the contract to the Secretary, the resident
council, if any, all tenants, and the State housing
agency.
(B) Purchase by secretary and assignment of right
to match offer.--In the case of covered housing for
which a third party purchase contract is executed, the
Secretary may--
(i) elect to purchase the housing under a
contract under subparagraph (D); or
(ii) assign the right to match the third
party offer for the covered housing under a
contract under subparagraph (D).
If the Secretary elects to take action under clause (i)
or (ii), the Secretary shall take such action, or
execute such other agreement as is acceptable to the
owner and the Secretary, during the 30-day period that
begins upon receipt by the Secretary of a copy of the
third party purchase contract.
(C) Extension of time periods.--The time periods
set forth in this paragraph may be extended by
agreement between the owner and the Secretary.
(D) Terms of matching contract.--The purchase
contract between the owner and the Secretary or the
Secretary's assignee pursuant to this paragraph shall
contain the same material terms and conditions as the
executed third party purchase contract, except that the
purchase contract between the owner and the assignee
shall provide at least the following terms:
(i) Amount of earnest money deposit.--The
amount of the earnest money deposit shall not
exceed the lesser of--
(I) the amount of the deposit
provided under the third party purchase
contract;
(II) 2 percent of the sale price;
or
(III) $250,000.
(ii) Escrow of earnest money deposit.--The
earnest money deposit shall be held under
commercially reasonable terms by an escrow
agent selected jointly by the owner and the
Secretary or the assignee of the Secretary.
(iii) Refunding of earnest money deposit.--
The earnest money deposit shall be refundable
for not less than 90 days from the date of
execution of the purchase contract or such
longer period as provided for in the third
party purchase contract; except that if the
owner unreasonably delays the buyer's ability
to conduct due diligence during the 90-day
period, the earnest money deposit shall
continue to be refundable for a period greater
than 90 days.
(iv) Time for performance.--The time for
performance shall be no sooner than 240 days
after the date of the execution of the purchase
contract, or such later date provided for in
the third party purchase contract.
(3) Failure to execute purchase contract by secretary or
assignee.--If the Secretary, or the assignee, fails to execute
a proposed purchase contract during the 30-day period under
paragraph (2)(B) (as such period may be extended pursuant to
paragraph (2)(C)), the owner may, during the 2-year period
beginning upon expiration of such 30-day (or extended) period,
complete a sale of the owner's covered housing to a third
party, except as provided in paragraph (5). After the
expiration of such 2-year period, the owner may not sell the
housing without, after such expiration, complying with
paragraph (3) of subsection (a) and with this subsection.
(4) Failure to perform purchase contract by secretary or
assignee.--If the Secretary, or the assignee, executes the
proposed purchase contract as provided in paragraph (2) but
fails to perform as provided in the executed purchase contract,
the owner may, during the 2-year period beginning upon the date
on which the executed purchase contract terminated, complete a
sale of the owner's covered housing to a third party. After the
expiration of such 2-year period, the owner may not sell the
housing without, after such expiration, complying with
paragraph (3) of subsection (a) and with this subsection.
(5) Counteroffer.--
(A) Opportunity.--After receipt of the third party
purchase contract provided for in paragraph (2), the
Secretary may, during the 30-day period under paragraph
(2), make a counteroffer by executing and submitting to
the owner an amended proposed purchase contract, or by
assigning the right to make such a counteroffer to an
assignee.
(B) Assignment.--If the Secretary assigns the right
under subparagraph (A) to make a counteroffer, the
assignee may, during the 15-day period that begins upon
such assignment or the remaining period remaining in
the 30-day period under paragraph (2), whichever is
longer, make such a counteroffer.
(C) Failure by secretary to execute or assign.--
Failure by the Secretary to execute or assign the
purchase contract or submit a counteroffer during the
30-day period under paragraph (2) shall constitute a
waiver of the Secretary's right to purchase under this
subsection.
(D) Period for owner response.--If the Secretary or
an assignee submits a counteroffer pursuant to this
paragraph, the owner may, during the 30-day period
beginning upon receipt of the amended proposed purchase
contract, execute the amended proposed purchase
contract or reject the counteroffer in writing.
(E) Rejection by owner.--If the owner rejects the
counteroffer, the owner may, during the 2-year period
beginning on the date of such rejection, complete a
sale of the covered housing to a third party. If such
sale is upon economic terms and conditions that are the
same as, or materially more favorable to the proposed
purchaser than, the economic terms and conditions in
the proposed purchase contract offered by the Secretary
or assignee in the Secretary's or assignee's
counteroffer, the owner shall, within 7 days after such
execution, provide a copy of the new third party
purchase contract, along with a proposed purchase
contract for execution by the Secretary or assignee,
which shall contain the same terms and conditions as
the executed third party purchase contract. The
Secretary or assignee may, during the 30-day period
beginning upon receipt of the third party purchase
contract and the proposed purchase contract, execute
the proposed purchase contract or such other agreement
as is acceptable to the owner and the Secretary or
assignee.
(6) Provision of third party contract to secretary.--If any
owner executes any purchase contract with a third party during
any of the 2-year periods referred to paragraph (3), (4), or
(5), the owner shall--
(A) not later than 7 after such execution, provide
the Secretary with a copy of the new or amended
purchase contract executed with respect to the covered
housing; and
(B) not later than 7 days after the recording or
filing of the deed or other document with the registry
of deeds or the registry district of the land court of
the county in which the affected covered housing is
located, provide the Secretary with a copy of any such
deed or other document transferring the owner's
interest in the covered housing.
(7) Certification by owner.--Any third party purchase
contract, amended third party purchase contract, deed, or any
other document transferring the owner's interest in covered
housing shall include a certification by the owner that the
document is accurate and complete and that there are no other
agreements between the owner and the third party buyer, or an
affiliate of either, with respect to the sale of the covered
housing.
(d) Exemptions.--
(1) Inapplicability of first right of refusal.--Subsection
(b) and (c) shall not apply to any of the following actions:
(A) A government taking of covered housing by
eminent domain or a negotiated purchase in lieu of
eminent domain.
(B) A forced sale of covered housing pursuant to a
foreclosure.
(C) A deed-in-lieu of foreclosure for covered
housing.
(D) A proposed sale of covered housing to a
purchaser pursuant to terms and conditions that
preserve affordability, as determined by the Secretary
(including sales or transfers pursuant to section 106
of this Act).
(E) A proposed sale of covered housing--
(i) that the Secretary has determined was
not, as of the effective date under subsection
(j), receiving Federal assistance nor subject
to regulation by any of the programs identified
in subsection (g)(4), other than the program
identified in subsection (g)(4)(A); and
(ii) under which the buyer has agreed, as
provided in a regulatory agreement, to renew in
whole, all contracts for project-based
assistance under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f) or any
successor program thereto; such renewal shall
be subject to the availability, at the time of
such renewal, of such assistance to the owner
on economic terms and conditions that are
comparable to the existing project-based rental
assistance contract.
(F) A proposed sale of covered housing to an
affiliate of the owner that is not a termination, as
determined by the Secretary.
(G) A proposed sale of covered housing with respect
to which the first scheduled termination will occur
more than 15 years after the date of the sale.
(H) A bona fide proposed sale pursuant to a
purchase contract in effect on the effective date under
subsection (j).
(2) Requirement to submit request.--The Secretary shall
make a determination that an exemption under subparagraph (D),
(E), or (F) of paragraph (1) applies only pursuant to a written
request for such an exemption submitted by the owner of the
covered housing. Such a request shall include the name and
address of any resident council for the covered housing. The
Secretary shall provide a copy of the Secretary's determination
under subparagraph (D), (E), or (F) of paragraph (1) to the
owner and the resident council.
(e) Regulatory Agreement.--A purchase of covered housing by the
Secretary or an assignee of the Secretary pursuant to this section
shall be subject to a regulatory agreement. Such a regulatory agreement
shall not contain any terms or conditions that would preclude an owner
or purchaser from participating in, or diminishing the benefits that an
owner would otherwise receive by participating in the mark-to-market
program of the Department under Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note).
(f) Certificate of Compliance.--
(1) Issuance.--An owner of covered housing who has complied
with subsections (a), (b), and (c), which has not resulted in a
purchase by the Secretary or the assignee of the Secretary of
the covered housing, or which has resulted in a sale of the
covered housing pursuant to subsection (c), may apply to the
Secretary for a certificate of compliance by submitting a
written request for the certificate, in such form and together
with such documentation as the Secretary shall require. The
Secretary shall issue the certificate of compliance within 30
days after receipt of the application if the Secretary
determines that the owner has complied with said subsections
(a), (b), and (c) and such certificate shall establish the
owner's compliance to the satisfaction of the Secretary.
(2) Filing.--An owner obtaining a certificate of compliance
with respect to covered housing shall file the certificate with
the registry of deeds or the registry district of the land
court of the county in which the covered housing is located not
later than one year after the date of issuance.
(3) Provision to tenants.--Upon request by any tenant of
the affected covered housing, the owner shall provide a copy of
the owner's request for a certificate of compliance.
(g) Relationship With Other Laws.--This section shall not preempt
any State or local law that has established a right of first refusal to
preserve affordable housing that is on terms and conditions that are
comparable to this section, establishes such a right after the
effective date under subsection (j). Any covered housing located in a
State or locality with such a right of first refusal shall not be
subject to this section.
(h) Definitions.--For the purposes of this section, the following
definitions shall apply:
(1) Affiliate.--The term ``affiliate'' means an entity
owned or controlled by an owner or under common control with
the owner.
(2) Affordability restriction.--The term ``affordability
restriction'' means, with respect to covered housing, a limit
on rents that an owner may charge for occupancy of a rental
unit in the housing or a limit on tenant income for persons or
families seeking to qualify for admission to such housing.
(3) Assignee.--The term ``assignee'' means a State agency,
local or regional housing authority, nonprofit or for profit
corporation, or other entity qualified to do business in the
affected State, that is selected by the Secretary to operate
covered housing that is decent, safe, and sanitary affordable
housing in a manner to be determined by the Secretary.
(4) Covered housing.--The term ``covered housing'' means a
housing unit or development that receives Federal assistance
under any of the following programs or provisions:
(A) The programs under section 8 of the United
States Housing Act of 1937 (42 U.S.C. 1437f) for new
construction, substantial rehabilitation, moderate
rehabilitation, property disposition, and loan
management set-aside, and any other Federal program
providing project-based rental assistance.
(B) The Federal program for low-income housing tax
credits under section 42 of the Internal Revenue Code
of 1986 (26 U.S.C. 42).
(C) The program for rent supplement assistance
under section 101 of the Housing and Urban Development
Act of 1965 (12 U.S.C. 1701s).
(D) Section 202 of the Housing Act of 1959 (12
U.S.C. 1701q).
(E) The below-market interest rate program under
paragraphs (3) and (5) of 221(d)(3) of the National
Housing Act (12 U.S.C. 1715(d) (3) and (5)).
(F) Section 221(d)(4) of the National Housing Act
(12 U.S.C. 1715(d)(4)), to the extent the project's
rents are restricted pursuant to a government
agreement.
(G) A contract under section 236(f)(2) of the
National Housing Act (12 U.S.C. 1715z-1(f)(2)).
(H) Section 236 of the National Housing Act (12
U.S.C. 1715z-1) and any comparable State program
providing for interest reduction payments or rental
assistance payments.
(I) Sections 514, 515, and 516 of the Housing Act
of 1949 (42 U.S.C. 1484, 1485, and 1486).
(J) Section 521 of the Housing Act of 1949 (42
U.S.C. 1490a).
(K) The urban development action grant program
under section 119 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5318), to the extent
that the affordability of dwelling units subject to
such program are restricted pursuant to a government
agreement.
(L) The rental development grant program under
section 17(d) of the United States Housing Act of 1937
(42 U.S.C. 1437o), as in effect before October 1, 1989,
to the extent that rents of a project assisted under
such program are restricted pursuant to a government
agreement.
(5) Department.--The term ``Department'' means the
Department of Housing and Urban Development.
(6) Low-income family.--The term ``low-income family'' has
the meaning given such term in section 3(b) of the Unites
States Housing Act of 1937 (42 U.S.C. 1437a(b)).
(7) Owner.--The term ``owner'' means, with respect to
covered housing, the person, firm, partnership, corporation,
trust, organization, limited liability company, or other
entity, or its successors or assigns, that holds title to the
housing.
(8) Prepayment.--The term ``prepayment'' means--
(A) the payment in full, or the refinancing, of a
federally insured or federally held mortgage loan
indebtedness prior to the original maturity date,
(B) the voluntary cancellation of mortgage
insurance on covered housing, or
(C) the payment in full of a government contract,
any of which would have the effect of removing (i) the
affordability restrictions applicable to covered housing, or
(ii) a requirement to renew any such affordability restrictions
(9) Purchase contract.--The term ``purchase contract''
means a binding written agreement under which an owner agrees
to sell covered housing including, without limitation, a
purchase and sale agreement, contract of sale, purchase option,
or other similar instrument.
(10) Resident council.--
(A) In general.--The term ``resident council''
means, with respect to covered housing, any
incorporated nonprofit organization or association
that--
(i) is representative of the residents of
the covered housing;
(ii) adopts written procedures providing
for the election of officers on a regular
basis; and
(iii) has a democratically elected
governing board, elected by the residents of
the covered housing.
(B) Limitation.--No owner of covered housing or
other third party shall be required to ascertain an
organization's or association's compliance with the
requirements of subparagraph (A).
(11) Sale.--
(A) In general.--The term ``sale'' means an act by
which an owner conveys, transfers, or disposes property
by deed or otherwise, whether through a single
transaction, or a series of transactions, during a 2-
year period.
(B) Limitation.--Such term does not include
disposition of covered housing by an owner to an
affiliate of such owner.
(12) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(13) State housing agency.--The term ``State housing
agency'' means the department of housing or department of
housing and community development of a State, or any comparable
State agency.
(14) Tenant.--The term ``tenant'' means, with respect to
covered housing, a person entitled to possession or occupancy
of a rental unit within the covered housing, including a
subtenant, lessee, and sublessee.
(15) Termination.--The term ``termination'' means, with
respect to covered housing, the date that--
(A) the mortgage or loan for the housing matures
and the affordability restrictions applicable to the
housing because of assistance for the housing pursuant
to a program referred to in paragraph (4) terminate
with respect to the housing;
(B) an assistance contract under a program referred
to in paragraph (4) for the housing that is not
renewed, terminates, or expires;
(C) in the case of housing that is not eligible
low-income housing, as such term is defined in section
229 of the Low-Income Housing Preservation and Resident
Homeownership Act of 1990 (12 U.S.C. 4119), the
mortgage or loan that covers the housing is prepaid or
an insurance contract that covers the housing
terminates; or
(D) use restrictions imposed with respect to the
housing pursuant to the Emergency Low Income Housing
Preservation Act of 1987 expire.
(i) Regulations.--The Secretary shall issue regulations to carry
out this section not later than the effective date under subsection
(j). This subsection shall take effect upon the date of the enactment
of this Act.
(j) Effective Date.--Except as otherwise specifically provided in
this section, this section shall take upon the expiration of the 180-
day period beginning on the date of the enactment of this Act.
SEC. 108. AMENDMENT TO LOW-INCOME HOUSING PRESERVATION AND RESIDENT
HOMEOWNERSHIP ACT OF 1990.
Section 232 of the Low-Income Housing Preservation and Resident
Homeownership Act of 1990 (12 U.S.C. 4122) is amended--
(1) in subsection (a), by striking ``No State'' and
inserting ``Except as provided in subsection (c), no State'';
and
(2) by adding at the end the following new subsection:
``(c) Inapplicability to Housing for Which No Plan of Action Is
Executed.--Preemption under subsection (a) shall not apply to eligible
low-income housing for which an owner has not executed a plan of action
for incentives under this subtitle.
``(d) Clarification of Congressional Intent Regarding Federal
Preemption.--State and local laws intended to further the preservation
of affordable housing or to protect tenants when owners propose to
terminate their participation in Federal affordable housing programs
are not preempted by Federal law, except as expressly required by the
terms of any applicable Federal statute.''.
SEC. 109. PRESERVATION OF HUD-HELD AND HUD-OWNED BUILDINGS.
(a) Use of All Available Enforcement and Intervention Tools.--To
maximize the preservation of existing housing assisted by the
Department of Housing and Urban Development, the Secretary of Housing
and Urban Development shall utilize all available enforcement and
intervention tools to stabilize properties in distress, including
acting as mortgagee-in-possession, accepting deeds in lieu of
foreclosure from owners, and exercising rights under applicable program
contacts and regulations.
(b) Management and Disposition Authority.--Subsection (a) of 204 of
the Departments of Veterans Affairs and Housing and Urban Development,
and Independent Agencies Appropriations Act, 1997 (12 U.S.C. 1715z-
11a(a)) is amended--
(1) by striking ``During'' and all that follows through
``and thereafter, the provision of'' and inserting ``In
managing and disposing of multifamily properties that are owned
by the Secretary or that have mortgages held by the Secretary,
during any fiscal year, the Secretary may provide'';
(2) by striking ``and multifamily mortgages held by the
Secretary''; and
(3) by striking ``notwithstanding any other provision'' and
inserting ``consistent with other applicable provisions''.
SEC. 110. AUTHORITY FOR HUD TO ASSIGN FLEXIBLE SUBSIDY LOANS.
The Secretary of Housing and Urban Development may, in connection
with a preservation transaction or transfer of an assisted project to
an owner that commits to long-term use and affordability restrictions
with respect to the property to forgive or assign to the transferee any
debt held by the Secretary that was created pursuant to section 201 of
the Housing and Community Development Amendments of 1978 (12 U.S.C.
1715z-1a), if required for the financial viability of the preservation
transaction or the transfer. If any low-income housing tax credits
under section 42 of the Internal Revenue Code of 1986 (26 U.S.C. 42),
State or local funds, tax-exempt housing bonds, or other affordable
housing resources are being utilized by the purchaser in connection
with the transfer of the property, the Secretary shall not require any
repayment in connection with the assignment or forgiveness of the
mortgages to the purchaser.
SEC. 111. USE OF EXISTING SECTION 8 FUNDS TO PRESERVE AND REVITALIZE
AFFORDABLE HOUSING.
Section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f) is amended by adding at the end the following:
``(ff) Affordable Housing Preservation and Revitalization
Program.--
``(1) In general.--The Secretary of Housing and Urban
Development shall ensure that funds in the residual receipts
account of an eligible multifamily housing property are, at the
time of a qualified sale or pursuant to an approved
rehabilitation plan approved by the Secretary or the section 8
contract administrator, transferred or released, in conjunction
with an approved rehabilitation plan, to the acquiring owner.
``(2) Use of residual receipt funds by purchaser.--An owner
that acquires an assisted multifamily housing property through
a qualified sale shall, subject to the approval of the
Secretary, use the funds in the residual receipts account
transferred to it, or for its benefit--
``(A) to pay for rehabilitation costs;
``(B) to deposit funds into the replacement reserve
account of the property;
``(C) to pay for social and other services that
directly benefit the tenants of such property;
``(D) to pay for costs associated with the
acquisition of the property; and
``(E) to pay for any other costs, as determined
eligible by the Secretary.
``(3) Use of residual receipts by owners to preserve and
renew affordable housing.--Subject to approval and any
requirements established by the Secretary, an owner of an
eligible multifamily housing property may use funds in the
residual receipts account for the property to--
``(A) reduce operating or cash flow deficits when
such use would prevent an increase in rental rates for
tenants;
``(B) make a mortgage payment when a mortgage
default is actual or imminent;
``(C) pay for rehabilitation costs, which may
include--
``(i) making repairs to the property not
otherwise covered by a reserve for replacements
or other similar fund;
``(ii) providing additional project
amenities and improvements, such as air
conditioning, a sprinkler system, fire or smoke
detectors, energy saving devices or
improvements, office equipment, and computers
and associated software; and
``(iii) making enhancements to the property
or retrofit units to enhance accessibility;
``(D) pay accrued, allowable distributions in cases
in which insufficient surplus cash is available;
``(E) repay residual receipt notes approved by the
Secretary;
``(F) repay flexible subsidy operating assistance
or capital improvements loans provided under section
201 of the Housing and Community Development Amendments
of 1978 (12 U.S.C. 1715z-1a);
``(G) provide for testing or abatement of lead-
based paint at the property;
``(H) provide for social and other services that
directly benefit the tenants of such property; and
``(I) pay for any costs or purposes, as determined
eligible by the Secretary.
``(4) Delegation of authority to section 8 contract
administrator or other entity.--At the request of a section 8
contract administrator or other appropriate entity, as
determined by the Secretary, that administers assistance
referred to in paragraph (5)(A)(i) with respect to an eligible
multifamily housing property, the Secretary may delegate to
such agency the authority of the Secretary under paragraph (2)
or (3), or both, to approve the use of funds in residual
receipt accounts for properties so assisted by such agency as
provided in such paragraph or paragraphs.
``(5) Definitions.--For purposes of this subsection, the
following definitions shall apply:
``(A) Eligible multifamily housing property.--The
term `eligible multifamily housing property' means a
property that--
``(i) is assisted under any program
providing project-based assistance under
section 8 of the United States Housing Act of
1937 (42 U.S.C. 1437f); and
``(ii) is subject to regulations of the
Secretary in effect on the date of enactment of
this subsection that require remittance of
excess funds to the Secretary upon termination
of the project-based assistance contract.
``(B) Qualified sale.--
``(i) In general.--The term `qualified
sale' means the sale or other transfer of an
eligible multifamily housing property to an
owner who agrees to maintain affordability and
use restrictions regarding the property that
are--
``(I) for a term of not less than
30 years from the time of the qualified
sale; and
``(II) legally enforceable.
``(ii) Future applicability of
restrictions.--The restrictions under
subparagraph (A) shall be--
``(I) binding on all successors and
assigns of the qualified preservation
owner; and
``(II) recorded as a restrictive
covenant on the property pursuant to
State law.
``(C) Residual receipts.--The term `residual
receipts' means--
``(i) funds generated by a property in
excess of the amount needed for operating
expenses, operating reserve requirements, and
allowable distributions to project owners; and
``(ii) includes any other funds that the
Secretary, in his or her discretion, designates
as residual receipts.
``(6) Residual receipts not treated as federal funds.--For
the purposes of section 42 of the Internal Revenue Code of
1986, residual receipts used or transferred under this section
shall not be considered Federal funds.''.
SEC. 112. AUTHORITY FOR GINNIE MAE TO SECURITIZE FHA RISK-SHARING
MORTGAGES.
(a) Authority.--Section 542 of the Housing and Community
Development Act of 1992 (12 U.S.C. 1715z-22) is amended--
(1) in subsection (b), by striking paragraph (8) and
inserting the following new paragraph:
``(8) Ginnie mae securitization.--The Government National
Mortgage Association may securitize any multifamily loan
insured or reinsured under this subsection under the same terms
and conditions as if the loan were insured under the National
Housing Act.''; and
(2) in subsection (c), by striking paragraph (6) and
inserting the following new paragraph:
``(6) Ginnie mae securitization.--The Government National
Mortgage Association may securitize any multifamily loan
insured under this subsection under the same terms and
conditions as if the loan were insured under the National
Housing Act.''.
(b) Limitation.--Section 542 of the Housing and Community
Development Act of 1992 is amended by adding at the end the following
new subsection:
``(d) Limitation.--In carrying out subsections (b)(8) and (c)(6),
the Secretary shall prohibit State housing finance agencies from giving
preference to, or conditioning the approval of, awards of subordinate
debt funds, allocation of tax credits, or tax exempt bonds based on the
use of financing for the first mortgage that is provided by such State
housing finance agency.''.
(c) Conforming Amendment.--Clause (ii) of the first sentence of
section 306(g)(1) of the National Housing Act (12 U.S.C. 1721(g)(1)) is
amended by inserting before the period at the end the following: ``; or
insured or reinsured under subsection (b) or (c) of section 542 of the
Housing and Community Development Act of 1992, subject to the terms of
paragraph (8) or (6), respectively, of such subsection''.
TITLE II--RESTORATION OF HOUSING AT RISK OF LOSS DUE TO DETERIORATION
SEC. 201. AUTHORITY TO TRANSFER RENTAL ASSISTANCE TO OTHER PROPERTIES.
(a) Authority.--Subject to subsection (b) and notwithstanding any
other provision of law, the Secretary of Housing and Urban Development
may authorize the transfer of some or all of project-based assistance,
debt, interest reduction payments, and statutorily required low-income
and very low-income use restrictions, associated with one or more
covered multifamily housing properties to another covered multifamily
housing property or properties located in the same metropolitan area.
(b) Phased Transfers.--Transfers of project-based assistance under
this section may be done in phases to accommodate the financing and
other requirements related to improving or constructing the property or
properties to which the assistance is transferred to ensure that such
property or properties meet the standards under subsection (c).
(c) Conditions.--A transfer authorized in subsection (a) shall be
subject to the following conditions:
(1) Total number of low-income units.--The number of low-
income and very low-income dwelling units provided by the
transferring property or properties shall remain the same as
the number of such dwelling units in the receiving property or
properties. Upon transfer of subsidy, vacant, nonviable, or
obsolete units may be replaced with units that meet the demands
of the local waiting list for assistance under section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f) or current
market demand, but only if there is no impact on assisted
residents of such units.
(2) Net amount of assistance.--The net dollar amount of
Federal assistance provided to the transferring property or
properties shall remain the same as the net dollar amount of
Federal assistance provided to the receiving property or
properties, unless an increase in Federal assistance is
necessary to secure project financing, to allow rent increases
permitted under the Multifamily Affordable Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note), to
accommodate allowable reconfigurations of the units and
bedrooms, or to allow standard contract extensions, or
simultaneous termination of current contracts with extensions
of new contract authority, similar to that extended to
comparable properties, as determined by the Secretary.
(3) Condition of transferring property.--The transferring
property shall, as determined by the Secretary, be physically
obsolete or economically non-viable.
(4) Condition of receiving property.--The receiving
property shall meet or exceed applicable physical standards
established by the Secretary within a reasonable period of
time, as determined by the Secretary.
(5) Tenant protection.--
(A) Notification and consultation.--The owner or
mortgagor of the transferring property shall notify and
consult with the tenants of the transferring property
concerning all significant elements of the transfer
plan, including the identification of receiving
properties and any proposed additional ownership
entities.
(B) Best interest of tenants; fair housing.--The
transfer shall, as determined by the Secretary--
(i) be in the best interest of the tenants;
and
(ii) comply with applicable statutes and
regulations relating to fair housing.
(6) Availability of new units.--The tenants of the
transferring property shall not be required to vacate their
dwelling units in the transferring property until new units in
the receiving property or properties are available for
occupancy, including a phase or phases of a multi-phase project
or projects that are available for occupancy. Tenants may
choose to be temporarily relocated to facilitate their
transition to the receiving property according to relocation
procedures set forth in the Uniform Relocation Assistance and
Real Property Acquisition Act of 1970 (42 U.S.C. 4601 et seq.).
(7) Mortgages under national housing act.--Any lien on the
receiving property resulting from additional financing obtained
by the owner shall be subordinate to any lien under a mortgage
insured under the National Housing Act that is transferred to,
or placed on, such property by the Secretary, except that the
Secretary may waive this requirement upon determination that
such waiver is necessary to facilitate the financing of
acquisition, construction, or rehabilitation of the receiving
property.
(8) Housing subject to a use agreement.--The owner or
mortgagor of the receiving property shall execute and record a
continuation of the existing use agreement or a new use
agreement for the property containing use restrictions having a
duration at least as long as the existing restrictions.
(9) No increase of risk to insurance funds.--The transfer
under this section shall result in no increase in financial
risk to the General and Special Risk Insurance Funds of the
Secretary, as determined by the Secretary, except that the
Secretary may waive this requirement upon determination that
such waiver is necessary to facilitate the financing of
acquisition, construction, or rehabilitation of the receiving
property.
(10) No increase of federal liability.--Federal liability
with regard to the receiving property shall not be increased,
as determined by the Secretary, except as provided in paragraph
(2).
(d) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Covered multifamily housing property.--The term
``covered multifamily housing property'' means housing that is
assisted or insured under one or more of the following
programs:
(A) The rent supplement program under section 101
of the Housing and Urban Development Act of 1965 (12
U.S.C. 1701s).
(B) The below-market interest rate mortgage
insurance program under section 221(d)(3) of the
National Housing Act (12 U.S.C. 17151(d)(3)).
(C) The program for assistance provided under the
proviso in section 221(d)(5) of the National Housing
Act (12 U.S.C. 17151(d)(5)).
(D) A contract under section 236(f)(2) of the
National Housing Act (12 U.S.C. 1715z-1(f)(2)).
(E) The program for interest reduction payments
under section 236 of the National Housing Act (12
U.S.C. 1715z-1) or a comparable State program providing
for interest reduction payments.
(F) Any other mortgage insurance program provided
under the National Housing Act for which the insured
property is subject to budget-based rent restrictions.
(G) The program for supportive housing for the
elderly under section 202 of the Housing Act of 1959
(12 U.S.C. 1701q), including assistance under such
section as was in effect before the enactment of the
Cranston-Gonzales National Affordable Housing Act.
(H) The program for rural rental housing under
section 515 of the Housing Act of 1949 (42 U.S.C.
1485).
(I) Any program providing project-based assistance
that is attached to the structure.
(J) Any other program under which the Secretary
provides any rental assistance, mortgage insurance,
subsidy, or other financial assistance.
(2) Low-income; very low-income.--The terms ``low-income''
and ``very low-income'', with respect to a covered multifamily
housing property, shall have the meanings provided under the
laws and regulations governing the program under which the
covered multifamily housing property is insured or assisted.
(3) Project-based assistance.--The term ``project-based
assistance'' means--
(A) assistance provided under section 8(b) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(b)),
including the additional assistance program;
(B) assistance for housing constructed or
substantially rehabilitated pursuant to assistance
provided under section 8(b)(2) of such Act (as such
section was in effect immediately before October 1,
1983);
(C) rent supplement payments under section 101 of
the Housing and Urban Development Act of 1965 (12
U.S.C. 1701s);
(D) additional assistance payments under section
236(f)(2) of the National Housing Act (12 U.S.C. 1715z-
1(f)(2)) or a comparable State program providing for
interest reduction payments;
(E) payments made under section 202(c)(2) of the
Housing Act of 1959 (12 U.S.C. 1701q(c)(2)); and
(F) payments made under any other Federal program
under which rental assistance is attached to the
structure.
(4) Receiving property.--The term ``receiving property''
means, with respect to a transfer of project-based assistance,
debt, and statutorily required low-income and very low-income
use restrictions under this section, the covered multifamily
housing property or properties to which the assistance, debt,
and use restrictions are to be transferred.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(6) Transferring property.--The term ``transferring
property'' means, with respect to a transfer of project-based
assistance, debt, and statutorily required low-income and very
low-income use restrictions under this section, the covered
multifamily housing property or properties from which the
assistance, debt, and use restrictions are to be transferred.
SEC. 202. BUILDING TRANSFERS: REQUIREMENTS FOR PURCHASERS OF FHA
INSURED PROJECTS AND SECTION 8 PROJECTS.
(a) Requirements for Potential Purchasers.--Not later than 90 days
after the date of the enactment of this Act, the Secretary of Housing
and Urban Development shall issue a proposed rulemaking, in accordance
with title 5, United States Code, that applies the participation and
certification requirements for potential purchasers required under
section 219 of Division G of the Consolidated Appropriations Act, 2004
(Public Law 108-199; 118 Stat. 397) to the sale or transfer of any
multifamily housing having a mortgage that is insured or receives
assistance under the National Housing Act or for which project-based
assistance is provided under section 8 of the United States Housing Act
of 1937 (42 U.S.C. 1437f).
(b) Notice to Local Government and Residents of Application for
Transfer.--The Secretary shall provide notice of an owner's application
for approval of any such transfer to the unit of local government where
the property is located, and to the residents of the property, using
procedures required under the Housing and Community Development
Amendments of 1978.
(c) Grounds for Disapproval.--Grounds for disapproval of a transfer
may include--
(1) a purchaser's record of pervasive or continuing
noncompliance under housing, health, and safety codes with
respect to other housing owned or managed by the purchaser,
regardless of location, except where the Secretary determines
that such noncompliance did not result from the actions of the
purchaser and would be satisfactorily remedied by a plan
approved by the Secretary; and
(2) a risk of financial instability for the project under
the terms of the acquisition, such as indicated by the
application of conventional underwriting standards.
SEC. 203. USE OF INTEREST REDUCTION PAYMENTS FOR REHABILITATION GRANTS.
The Secretary of Housing and Urban Development may obligate any
amounts recaptured from the termination of a contract for interest
reduction payments under section 236 of the National Housing Act (12
U.S.C. 1715z-1), for the use under subsection (s) of such section,
except that the Secretary shall take immediate action to issue
appropriate guidelines to make such funds available within 180 days
after the date of the enactment of this Act, which shall include the
availability of both loans and grants.
SEC. 204. CLARIFICATION OF BUDGET-BASED RENT INCREASES FOR
REHABILITATED PROJECTS.
(a) Approval of Rent Increases.--
(1) Approval.--At the request of an owner of a covered
multifamily housing property (which term, for purposes of this
section, shall have the same meaning given such term in section
201(c) of this Act) that meets the requirements of paragraph
(2), the Secretary of Housing and Urban Development shall,
prior to rehabilitation and subject to subsection (b), adjust
project rents on a budget-based basis to support the cost of
the rehabilitation, any increased debt service, and other
appropriate costs.
(2) Requirements.--The requirements of this paragraph with
respect to a covered multifamily housing property are that--
(A) the project is to undergo rehabilitation; and
(B) the owner or purchaser of the project executes
a binding agreement to preserve the project as
affordable housing at least until the later of the
maturity date of the original mortgage for the project
or the termination of an assistance contract on the
property.
(b) Conditions.--Rent adjustments pursuant to this section for a
covered multifamily housing property shall be subject to the following
conditions and requirements:
(1) Effectiveness.--Such rent adjustments shall not become
effective until completion of the rehabilitation of the
property.
(2) Amount.--Such rent adjustments shall--
(A) be subject to adjustment by the Secretary based
on differences between estimated and actual costs; and
(B) with respect to units that are assisted under
section 8 of the United States Housing Act of 1937 (42
U.S.C. 1437) that are subject to a renewal contract
under section 524(a) of the Multifamily Assisted
Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437f note), not exceed, after rehabilitation, the rent
for comparable unassisted units in the area.
(3) Tenant notice and opportunity to comment.--Tenants in
the property shall be provided notice and an opportunity to
comment on such rent adjustments in accordance with rent
increase procedures of the Department of Housing and Urban
Development issued pursuant to the authority under section
202(b) of the Housing and Community Development Amendments of
1978 (12 U.S.C. 1715z-1b(b)).
(4) Provision of rental assistance.--Rental assistance
shall be provided for all affected eligible tenants of the
property in the form of new project-based assistance for
previously unassisted units and legally authorized contract
rent increases under existing project-based contracts.
(c) Effect on Other Transactions.--This section shall not have any
effect on transactions not meeting the terms and conditions of this
section.
SEC. 205. INTEREST REDUCTION PAYMENTS FOR SECTION 236 PROJECTS
EXPERIENCING A REDUCTION OF UNITS.
(a) In General.--Section 236(e)(2) of the National Housing Act (12
U.S.C. 1715z-1(e)(2)) is amended--
(1) by striking ``under the terms'' and inserting ``for the
remaining term''; and
(2) by adding at the end the following new sentence: ``The
Secretary may continue to provide the interest reduction
payments in their entirely, notwithstanding a reduction of
total units, if the project owner is able to demonstrate that
such an action will contribute to the long-term physical or
financial viability of the property.''.
(b) Applicability.--The amendments made by subsection (a) shall
apply to all interest reduction payments made after October 1, 2006.
TITLE III--PROTECTION OF RESIDENTS
SEC. 301. TENANT PROTECTION VOUCHER TO REPLACE LOST SUBSIDIZED UNITS ON
1-FOR-1 BASIS.
Subject only to the availability of amounts provided for such
purpose in appropriation Acts, the Secretary of Housing and Urban
Development shall provide replacement vouchers for rental assistance
under section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f) for all dwelling units in projects that cease to be covered
multifamily housing properties (as such term is defined in section 201
of this Act) due to demolition, disposition, or conversion.
SEC. 302. MAINTENANCE OF HOUSING.
Section 8(d) of the United States Housing Act of 1937 (42 U.S.C.
1437f(d)) is amended by adding at the end the following new paragraphs:
``(7) Enforcement of Housing Standards Related to Physical
Condition of Property.--If the Secretary determines, upon any
inspection or management review for any multifamily housing project
covered by a housing assistance payments contract under this section,
that there are serious violations of housing standards applicable to
such project that are not corrected after reasonable notice, or any
other substantial or repeated violations of other program requirements,
including residents right to organize, the Secretary may take one or
more of the following actions:
``(A) Withhold all or part of the housing assistance
payments due under the contract.
``(B) Withhold any rent increases otherwise due.
``(C) Assume possession and management of the project and
take any actions necessary to correct the violations, including
using such withheld payments to effectuate repairs or to
reimburse others who make repairs.
``(D) Use such withheld payments to pay for utilities and
other services that are the responsibility of the owner under
the lease or applicable law.
``(8) Escrow of Tenant Rents.--If the Secretary determines that
there are serious violations of housing standards applicable to any
multifamily housing project covered by a housing assistance payments
contract under this section or any other substantial or repeated
violations of other program requirements, any tenants in assisted units
in the project may withhold the tenant contribution toward rent and pay
such amount, when due, into an escrow fund, or use such withheld
payments to effectuate repairs, in accordance with procedures
established by the Secretary. If a tenant withholds the tenant
contribution toward rent in accordance with this paragraph, the
Secretary shall withhold all or part of the housing assistance payments
due under the contract until the violation is remedied. An owner of a
project shall not evict tenants for nonpayment of rent for exercising
rights under this paragraph.
``(9) Protection of Tenants.--An owner of a multifamily housing
project covered by a housing assistance payments contract under this
subsection may not terminate the tenancy of any tenant because of the
withholding or abatement of assistance pursuant to this subsection.
During the period that assistance is abated pursuant to this
subsection, the tenant may terminate the tenancy by notifying the
owner.
``(10) Inspections Upon Request or Petition.--In addition to
periodic inspections by the Secretary, the Secretary shall conduct an
inspection or management review of any multifamily housing project
covered by a housing assistance payments contract under this section
when requested by the local government in which the project is located
or by a petition signed by not less than 25 percent of the tenants of
the occupied units in the project.''.
SEC. 303. RESIDENT ENFORCEMENT OF PUBLIC HOUSING AGENCY OR PROJECT
OWNER AGREEMENTS WITH HUD.
(a) In General.--In each covered agreement described in subsection
(c), any resident, or resident or tenant association, of an affected
project shall be permitted to petition the Secretary of Housing and
Urban Development requesting enforcement of alleged violations of the
covered agreement.
(b) Judicial Relief.--If the Secretary, or the designee of the
Secretary, fails to issue a determination regarding an enforcement
request within 90 days after receipt of the petition, the resident, or
resident or tenant association, may seek appropriate judicial relief in
connection with the alleged violation and enforcement of a covered
agreement in any forum of competent jurisdiction. In the case of any
alleged violation that threaten the health or safety of tenants, the
time period for making such a determination shall be no longer than 15
days.
(c) Covered Agreements.--A covered agreement described in this
subsection is any--
(1) contract between the Secretary and any public housing
agency for housing assistance payments under section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f);
(2) agreement under the Multifamily Assisted Housing Reform
and Affordability Act of 1997 (42 U.S.C. 1437f note) for--
(A) Mark-to-Market Restructuring Commitments or
renewal of section 8 rental assistance for a project
involving any action under section 517(b) of such Act;
or
(B) Rehabilitation Escrow Deposit Agreements for
Mark-to-Market; or
(3) contract for mortgage insurance executed by the
Secretary and any owner or purchaser of a multifamily housing
project.
(d) Regulations.--Within 180 days after the date of the enactment
of this Act, the Secretary shall issue regulations providing procedures
for--
(1) receiving tenant petitions to enforce the terms of a
covered agreement;
(2) evaluating alleged violations of a covered agreement;
and
(3) providing notice to residents, and resident and tenant
associations.
SEC. 304. RESIDENT ACCESS TO BUILDING INFORMATION.
(a) Access to Information.--Upon a written request by a legitimate
residents association established with respect to a multifamily housing
property to which part 245 of the regulations of the Secretary of
Housing and Urban Development (24 C.F.R. Part 245), by or through its
duly appointed designee or representative, the Secretary shall make
available, for the property represented by the association--
(1) information identifying the legal entities that own and
manage the property, including identification of general
partners and other principals, and their other properties
assisted by the Department of Housing and Urban Development,
including previous participation certifications (with Social
Security numbers redacted);
(2) an annual operating statement of profit and loss, and
project budgets submitted to the Department of Housing and
Urban Development;
(3) subsidy contracts and regulatory agreements, use
agreements. or other contracts referred to in section 303(c) of
this Act between owners and the Department of Housing and Urban
Development, including correspondence between owners and the
Department;
(4) management reviews, capital needs assessments, and
physical inspection reports conducted of entities identified in
paragraph (1) by the Department or a contractor of the
Department; and
(5) an annual statement, prepared by the Department's
contract administrator for the subject property, of the
balances of, and expenditures from, any replacement reserves
and other escrow funds for the property.
(b) Protection of Personal Information.--Subsection (a) shall not
be construed to require disclosure of Social Security numbers, personal
tax returns, or any other personal financial information of or
concerning individuals who have an interest in the ownership or
management entities referred to in subsection (a).
TITLE IV--PRESERVATION OF TROUBLED PROJECTS FACING FORECLOSURE
SEC. 401. MAINTAINING AFFORDABILITY THROUGH ESCROWING OF RENTAL
ASSISTANCE.
In the case of any transfer of a distressed multifamily property
that does not comply with housing quality standards applicable to the
property, the Secretary of Housing and Urban Development may not
recapture any rental assistance that is attached to any dwelling units
in the property and provided under a contract for the property under
section 8 of the United States Housing Act of 1937 or under any other
program administered by the Secretary, but shall hold any such
assistance in escrow for the property during the period of
noncompliance and, upon determining that the property complies with
such standards make such assistance available for the property.
SEC. 402. MULTIFAMILY HOUSING MORTGAGE FORECLOSURE.
The Multifamily Mortgage Foreclosure Act of 1981 is amended--
(1) in section 362 (12 U.S.C. 3701)--
(A) in paragraph (5), by striking ``and'' at the
end;
(B) in paragraph (6), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(7) mortgages transferred by the Secretary to State and
local governments should be foreclosed in the same manner as
mortgages held by the Secretary.'';
(2) in section 363 (12 U.S.C. 3702)--
(A) in paragraph (9), by striking ``and'' at the
end;
(B) in paragraph (10), by striking the period at
the end and inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(11) `State or local government transferee' means any
State or unit of general local government, any public housing
authority, or any State or local housing finance agency that
has acquired mortgages pursuant to section 203 of the Housing
and Community Development Amendments of 1978 (12 U.S.C. 1701z-
11), section 204 of the Departments of Veterans Affairs and
Housing and Urban Development, and Independent Agencies
Appropriations Act, 1997 (12 U.S.C. 1715z-11a), or any other
provision of law, that were previously held by the
Secretary.'';
(3) in section 364 (12 U.S.C. 3703)--
(A) by inserting ``, or any State or local
government transferee,'' after ``Secretary'' the first
and fourth places such term appears; and
(B) by inserting ``, or the State or local
government transferee,'' after ``Secretary'' the
second, third, and fifth places such term appears;
(4) in section 365 (12 U.S.C. 3704)--
(A) by inserting ``, or any State or local
government transferee,'' after ``Secretary'' the first
place such term appears;
(B) by inserting ``, or the State or local
government transferee,'' after ``Secretary'' each other
place such term appears; and
(C) by striking the last 3 sentences and inserting
the following: ``The entity designating the foreclosure
commissioner, whether the Secretary or any State or
local government transferee, shall be a guarantor of
payment of any judgment against the foreclosure
commissioner for damages based upon the commissioner's
failure properly to perform the commissioner's duties.
As between the entity designating the foreclosure
commissioner, whether the Secretary or any State or
local government transferee, and the mortgagor, the
entity designating the foreclosure commissioner shall
bear the risk of any financial default by the
foreclosure commissioner. In the event that the
Secretary or any State or local government transferee
makes any payment pursuant to the preceding two
sentences, the Secretary or any State or local
government transferee shall be fully subrogated to the
rights satisfied by such payment.'';
(5) in section 366 (12 U.S.C. 3705)--
(A) by inserting ``, or any State or local
government transferee,'' after ``Secretary'' the first,
third, fourth, and fifth place such term appears; and
(B) by inserting ``, or the State or local
government transferee,'' after ``Secretary'' the second
and sixth places such term appears;
(6) in section 367 (12 U.S.C. 3706)--
(A) in subsection (a)--
(i) in paragraph (1), by inserting ``or the
State or local government transferee,'' after
``Secretary,''; and
(ii) in paragraph (8), by inserting ``, or
the State or local government transferee''
after ``Secretary'';
(B) in subsection (b)--
(i) by inserting ``, or any State or local
government transferee,'' after ``Secretary''
the first and second places such term appears;
and
(ii) by inserting ``, or the State or local
government transferee,'' after ``Secretary''
the third place such term appears; and
(C) by adding at the end the following new
subsection:
``(c) In any case in which a State or local government transferee
is the purchaser of a multifamily project, the State or local
government transferee shall manage and dispose of such project to
benefit those originally intended to be assisted under the prior
program unless continued operation and disposition of the property
under such program is not feasible based on consideration of the costs
of rehabilitating and operating the property after considering all
available Federal, State, and local resources, including rent
adjustments under section 524 of the Multifamily Assisted Housing
Reform and Affordability Act of 1997 (42 U.S.C. 1437f note).''.
(7) in section 368 (12 U.S.C. 3707)--
(A) by inserting ``, or any State or local
government transferee,'' after ``Secretary'' the first
and third places such term appears; and
(B) by inserting ``, or the State of local
government transferee,'' after ``Secretary'' the second
place such term appears;
(8) in section 369A (12 U.S.C. 3709)--
(A) by inserting ``, or any State or local
government transferee,'' after ``Secretary'' the second
place such term appears; and
(B) by inserting `, or the State or local
government transferee,' after `Secretary' the first,
third, and fourth places such term appears;
(9) in section 369B (12 U.S.C. 3710)--
(A) by inserting ``, or the State of local
government transferee,'' after ``Secretary'' the first
and second places such term appears; and
(B) by inserting ``, or any State or local
government transferee,'' after ``Secretary'' each other
place such term appears;
(10) in section 369E (12 U.S.C. 3713), by inserting ``, or
any State or local government transferee,'' after ``Secretary''
each place such term appears; and
(11) in section 369F(a)(1) (12 U.S.C. 3714(a)(1)), by
inserting ``, or any State or local government transferee,''
before the semicolon at the end.
SEC. 403. BUILDING ACQUISITION: VALUATION OF PHYSICALLY DISTRESSED
PROPERTIES SOLD BY HUD.
(a) In General.--Notwithstanding title II of the Deficit Reduction
Act of 2005 (12 U.S.C. 1701z-11 note) or any other provision of law, in
determining the market value of any multifamily real property or
multifamily loan for any noncompetitive sale to a State or local
government, the Secretary of Housing and Urban Development shall
consider, but not be limited to, industry standard appraisal practices,
including the cost of repairs needed to bring the property into such
condition as to satisfy minimum State and local code standards and the
cost of maintaining the affordability requirements imposed by the
Secretary on the multifamily real property or multifamily loan.
(b) Definitions.--For purposes of this section, the terms
``affordability requirements'', ``multifamily loan'', and ``multifamily
real property'' have the same meaning given such terms in section 2001
of the Deficit Reduction Act of 2005 (12 U.S.C. 1701z-11 note).
SEC. 404. INVESTMENT THROUGH UP-FRONT GRANTS FROM GENERAL INSURANCE
FUND.
(a) 1978 Act.--Paragraph (4) of section 203(f) of the Housing and
Community Development Amendments of 1978 (12 U.S.C. 1701z-11(f)(4)) is
amended by striking the last sentence.
(b) Clarification of Authorized Assistance.--In implementing the
provisions amended by subsection (b) of this section, the Secretary of
Housing and Urban Development may utilize both up-front grants and
project-based rental assistance under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f) as necessary to preserve the
affordability of a multifamily housing project to low- and very low-
income families.
SEC. 405. MAINTAINING PROJECT-BASED ASSISTANCE FOR PROJECTS DISPOSED OF
BY HUD.
(a) In General.--In managing and disposing of any multifamily
property that is owned by, or has a mortgage held by, the Secretary of
Housing and Urban Development, the Secretary shall maintain any
contracts for rental assistance payments under section 8 of the United
States Housing Act of 1937 (42 U.S.C. 1437f) and other programs that
are attached to any dwelling units in the property.
(b) Infeasibility of Continued Assistance.--To the extent the
Secretary determines, in consultation with the tenants and the local
government, that such a multifamily property owned or held by the
Secretary is not feasible for continued rental assistance payments
under such section 8 or other programs, based on consideration of (1)
the costs of rehabilitating and operating the property and all
available Federal, State, and local resources, including rent
adjustments under section 524 of the Multifamily Assisted Housing
Reform and Affordability Act of 1997 (42 U.S.C. 1437f note), and
environmental conditions that cannot be remedied in a cost-effective
fashion, the Secretary may, in consultation with the tenants of such
property, contract for project-based rental assistance payments with an
owner or owners of other existing housing properties, or provide other
rental assistance.
(c) Foreclosure.--For all properties with project-based section 8
assistance, regardless of the type of underlying financing, the
Secretary shall also take appropriate actions to ensure that project-
based contracts remain in effect prior to foreclosure, subject to the
exercise of contractual remedies to assist relocation of tenants for
imminent major threats to health and safety, after written notice to
and informed consent of the affected tenants and use of other available
remedies, such as partial abatements or receivership.
(d) Applicability of MAHRA.--After disposition of any multifamily
property described under this section, the contract and allowable rent
levels on such properties shall be subject to section 524 of the
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42
U.S.C. 1437f note).
SEC. 406. CORRECTING HARM CAUSED BY LATE SUBSIDY PAYMENTS.
Section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f), as amended by the preceding provisions of this Act, is further
amended by adding at the end the following new subsection:''.
``(gg) Late Payments.--
``(1) In general.--The Secretary shall make payments of
project-based rental assistance provided under this section for
each month on or before the due date under paragraph (2) for
the payment.
``(2) Due date.--The due date under this paragraph for a
monthly payment is the first business day of the month.
``(3) Notification of late payment.--The Secretary shall
notify a project owner at least 10 days before the due date for
a housing assistance payment if such payment will be late and
shall inform the project owner of the approximate date the
payment will be made.
``(4) Use of reserves.--If a housing assistance payment for
a project has not been received before the expiration of the
10-day period beginning upon the due date for such payment, the
project owner shall, after the expiration of such period, be
entitled to obtain funds from a project replacement reserve,
residual receipts reserve, or other project reserve in order to
pay operating and debt service costs for the project. Upon
receipt of the monthly housing assistance payment from the
Secretary, the project owner shall promptly replace or
replenish any such funds advanced pursuant to the preceding
sentence.
``(5) Interest payment.--If a monthly housing assistance
payment is not made before the expiration of the 30-day period
beginning upon the due date for such payment, the Secretary
shall pay to the owner simple interest on the amount of such
monthly payment, from the due date until the date of payment,
at a rate determined by the Secretary of Treasury in accordance
with section 12 of the Contract Disputes Act of 1978 (41 U.S.C.
611). Interest payments under this paragraph shall be made from
amounts made available for management and administration of the
Department of Housing and Urban Development.''.
TITLE V--INCENTIVES UNDER MAHRA FOR OWNERS TO MAINTAIN HOUSING
AFFORDABILITY
SEC. 501. EXTENSION OF MARK-TO-MARKET PROGRAM.
Section 579 of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by striking
``October 1, 2011'' each place such term appears and inserting
``October 1, 2015''.
SEC. 502. MAINTAINING AFFORDABILITY IN PRESERVATION PROJECT
TRANSACTIONS.
(a) Renewal Under Alternative Authorities.--Paragraph (1) of
section 524(e) of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by adding
at the end the following new sentences: ``At the request of the owner
of the project, in order to facilitate a rehabilitation plan approved
by the Secretary as being necessary to ensure the sustainability of a
project, a contract eligible for renewal pursuant to this paragraph may
instead be renewed pursuant to any provision of subsection (a) or (b)
of this section if the contract is otherwise eligible for renewal
pursuant to such provision. In the case of a renewal pursuant to
subsection (a) or (b), the rent and rent adjustment standards
applicable to a renewal pursuant to those subsections shall apply, but
tenant occupancy and affordability restrictions in the plan of action
shall continue to apply to the project for the duration of those
restrictions.''.
(b) Extension of Affordability Period for ELIHPA Projects.--Section
524(e) of the Multifamily Assisted Housing Reform and Affordability Act
of 1997 (42 U.S.C. 1437f note) is amended by adding at the end the
following new paragraph:
``(4) Hybrid contract.--To facilitate the sale, transfer,
or rehabilitation of a project that is subject to a plan of
action under the Emergency Low Income Housing Preservation Act
of 1987 (12 U.S.C. 1715l note) to an owner who agrees to
binding low-income affordability restrictions for at least 30
years beyond the term of the plan of action and a
rehabilitation plan approved by the Secretary as being
necessary to ensure the sustainability of the project, a
contract for such a project shall, at the request of the owner
of the project, be renewed under this paragraph for a term of
not less than 30 years. The contract shall provide that the
terms of the plan of action shall apply for the duration of the
original plan of action, and that at the expiration of the plan
of action the rents shall be established at rent levels equal
to comparable market rents for the market area. After
expiration of the plan of action, rent adjustments shall be
determined in accordance with the provisions of subsection (c)
that are applicable to contracts renewed pursuant to subsection
(a). Any existing contract entered into pursuant to paragraph
(1) shall be terminated at the request of the owner of the
project, and replaced by a contract under this paragraph.''.
SEC. 503. ENCOURAGING CONTINUED PARTICIPATION IN ASSISTED HOUSING
PROGRAMS.
(a) Elimination of Discriminatory Renewal Terms.--Paragraph (3) of
section 524(b) of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended--
(1) in the matter preceding subparagraph (A), by striking
``the lesser of'' and inserting ``as follows''; and
(2) by striking subparagraphs (A), (B), and (C) and
inserting the following:
``(A) Previously renewed projects.--In the case of
a project with a contract previously renewed under this
paragraph, for the first renewal occurring after the
date of the enactment of the Housing Preservation and
Tenant Protection Act of 2010, at a rent level
determined in accordance paragraph (1)(B) of this
subsection.
``(B) Projects not previously renewed.--In the case
of a project with a contract not previously renewed
under this paragraph, at a rent level determined in
accordance with paragraph (1) of this subsection.''.
(b) Subsequent Renewals and Rent Adjustments.--Paragraph (1) of
section 524(c) of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended in the
first sentence by striking ``(b)(1)'' and inserting ``(b)(1), (b)(3)''.
SEC. 504. PREPAYMENT OF FHA MORTGAGES ON MULTIFAMILY HOUSING.
(a) Conditions for Prepayment.--Section 250 of the National Housing
Act (12 U.S.C. 1715z-15) is amended--
(1) in subsection (a)--
(A) by striking paragraph (1) and inserting the
following new paragraph:
``(1) the Secretary has determined that--
``(A) such project is no longer meeting a need for
rental housing for lower income families in the area,
as evidenced by a persistent lack of demand for the
units under the rent schedule approved by the
Secretary; or
``(B) the prepayment is part of a transaction to
preserve and improve the project as affordable housing,
pursuant to the guidance in effect that implements
section 236(e)(2) of this Act (12 U.S.C. 1715z-1(e)2))
or pursuant to additional administrative guidance,
ensuring that--
``(i) the proceeds of any refinancing will
be used for rehabilitation of the project and
related costs or for affordable housing and
related social services under a plan approved
by the Secretary;
``(ii) tenants will not be displaced from
the project;
``(iii) rent burdens for unassisted tenants
as a result of the transaction will not be
increased by more than 10 percent annually or
20 percent in total, unless additional project-
based assistance is provided; and
``(iv) binding commitments, which shall
apply to current and subsequent owners, are
made to ensure that the project will operate in
accordance with all currently applicable low-
income affordability restrictions for a period
of not less than the original mortgage term
plus an additional 20 years, including a duty
to maintain a substantially similar occupancy
profile for the project of low-, very low-, and
extremely low-income tenants, to renew any
expiring rental assistance contracts for the
project, and accept additional rental
assistance for the project.'';
(B) in paragraph (2)--
(i) in subparagraph (A), by inserting
before the semicolon at the end the following:
``which shall include reasonable access to all
information relevant to the request, including
the anticipated sources and uses of proceeds,
any additional financing, subsidies, and rental
assistance, and any proposed rehabilitation
plan, affordable housing and services plan, or
use agreement''; and
(ii) in subparagraph (C), by inserting
before the semicolon the following: ``in making
the determination required by paragraph (1)'';
(C) in paragraph (3), by striking the period at the
end and inserting ``; and''; and
(D) by adding at the end the following new
paragraph:
``(4) the Secretary has ensured that such prepayment or
termination involves extension of any low-income affordability
restrictions (as such term is defined in section 229 of the
Low-Income Housing Preservation and Resident Homeownership Act
of 1990 (12 U.S.C. 4119) for the project for a period of not
less than 30 years.''.
(b) Use of Proceeds of Preservation Transactions by Nonprofit
Owners of Multifamily Projects; Section 236 Transactions; Clarification
of Effect.--Section 250 of the National Housing Act (12 U.S.C. 1715z-
15) is amended by adding at the end the following new subsections:
``(d) Use of Proceeds From Preservation Transaction.--
Notwithstanding any other provision of law, in connection with a
preservation transaction, the prepayment of a mortgage on a multifamily
rental housing project or termination of an insurance contract pursuant
to section 229, or the sale or refinancing of a multifamily rental
housing project for which approval of the Secretary is required, the
Secretary may not, in any manner that is not equally applicable to a
for-profit owner of such a project--
``(1) impose on any owner of such a project that is a
nonprofit organization or controlled by a nonprofit
organization any limitation on the right of such owner to use
the proceeds of such preservation transaction for the
affordable housing mission (including tenant and supportive
services) of such organization, except that any increase in the
project-based rental assistance shall be used solely to cover
the cost of actual debt service, customary operating costs, and
project reserve requirements, and for any rehabilitation of the
project and reasonably related costs, and not for cash
distributions or proceeds made to any project owner or
purchaser; or
``(2) restrict the right of any owner of such a project
that is a nonprofit organization or controlled by a nonprofit
organization to do business, in connection with any affiliate
or entity in which it has a financial interest.
``(e) Section 236 Decoupling Refinancing Transactions.--In the case
of a decoupling refinancing transaction under section 236, the
Secretary may not enter into any agreement that establishes an escrow
for the payment of future section 8 rent increases from sales proceeds
funded by low-income housing tax credit equity and any such agreement
already entered into shall be considered unenforceable, shall be
rescinded, and may be reissued without the void condition.
``(f) Applicability.--Notwithstanding any existing administrative
directive of the Secretary to the contrary, except as specifically
authorized in this section, this section shall apply to the prepayment
of any multifamily mortgage on any property insured or held by the
Secretary under this Act for which the approval of the Secretary is
required for prepayment of the mortgage.''.
SEC. 505. PERIOD OF ELIGIBILITY FOR NONPROFIT DEBT RELIEF.
Section 517(a)(5) of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by adding
at the end the following new sentences: ``If such purchaser acquires
such project subsequent to the date of recordation of the affordability
agreement described in section 514(e)(6), (A) the purchaser must
acquire the project on or before the later of (i) seven years after the
date of recordation of the affordability agreement and (ii) two years
after the date of enactment of this sentence; and (B) the Secretary
must have received, and determined acceptable, the purchaser's
application for modification, assignment, or forgiveness prior to the
purchaser's acquisition of the project. In the event any low-income
housing tax credits, State or local funds, tax-exemption or other
affordable housing resources are being utilized by the purchaser in
connection with the transfer of the property, the Secretary shall not
require any repayment in connection with the assignment or forgiveness
of the mortgages to the purchaser.''.
SEC. 506. ACQUISITION OF RESTRUCTURED PROJECTS BY NONPROFIT
ORGANIZATIONS.
Paragraph (5) of section 517(a) of the Multifamily Assisted Housing
Reform and Affordability Act of 1997 (42 U.S.C. 1437 note) is amended
by inserting ``, or the sole general partner of the limited partnership
owning the project,'' after ``if the project''.
SEC. 507. RENT ADJUSTMENTS UPON SUBSEQUENT RENEWALS OF SECTION 8
CONTRACTS.
Section 524(c) of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by adding
at the end the following new paragraph:
``(3) Subsequent renewals.--At the request of the owner of
the project, a contract initially renewed pursuant to this
section may subsequently be renewed under any renewal authority
in this section for which it is eligible. The subsequent
renewal of a contract initially renewed under subsection (b)(1)
shall be at rents established in accordance with paragraph (1)
of this subsection. A project whose contract is initially
renewed under this section shall not be considered an eligible
multifamily housing project as defined in section 512(2) unless
(A) the owner of the project and the Secretary consent to the
project's designation as an eligible multifamily housing
project, and (B) the project meets the requirements of
subparagraphs (A) and (C) of such section 512(2).''.
SEC. 508. BUDGET-BASED RENT ADJUSTMENTS.
(a) Methods for Annual Rent Adjustments.--Section 514(g) of the
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42
U.S.C. 1437f note) is amended by adding at the end the following new
paragraph:
``(4) Annual rent adjustments.--The Secretary shall
annually adjust the rents initially established pursuant to
this section using an operating cost adjustment factor
established by the Secretary (which shall not result in a
negative adjustment) or, upon the request of the project owner,
on a budget basis.''
(b) Meeting Rehabilitation Needs of Previously Restructured
Projects.--Section 517(c) of the Multifamily Assisted Housing Reform
and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by
adding at the end the following new paragraph:
``(3) Rehabilitation needs of restructured projects.--
``(A) Rehabilitation assistance.--Notwithstanding
any other provision of this title, at the request of a
project owner, the Secretary shall, pursuant to a
revised evaluation of the physical condition of the
project approved by the Secretary, provide
rehabilitation assistance from the funding sources
specified in the first sentence of paragraph (1)(A) for
any project for which the Secretary and the project
owner executed a mortgage restructuring and rental
assistance sufficiency plan prior to October 1, 2001,
pursuant to which mortgage debt on the project was
restructured.
``(B) Funding through debt restructuring.--The
Secretary may, in connection with the transfer of a
project to a qualified preservation owner, modify or
waive any of the requirements or conditions on debt
restructuring contained in this title in order to
provide a simplified debt restructuring for funding the
rehabilitation of previously restructured projects
under this title. The Secretary may make a non-default
partial or full payment of claim under a mortgage
insurance contract pursuant to section 541(b) of the
National Housing Act (12 U.S.C. 1735f-19(b)),
notwithstanding the limitation in section 541(b) to its
one-time use. The Secretary may also modify or waive
any requirement or condition in such section 541(b)
that the Secretary considers inconsistent with the
simplified debt restructuring authorized by this
paragraph.
``(C) Contribution.--The project owner receiving
rehabilitation assistance under this paragraph shall
not be required to make the contribution specified in
paragraph (1)(B) or (2)(C), except to the extent the
Secretary increases project rents to provide for a
return of the owner's contribution over such period as
the Secretary shall determine.''.
SEC. 509. INDEPENDENT APPRAISAL REQUIREMENT IN CASES OF DIVERGENT RENT
STUDIES.
Section 524(a)(5) of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by adding
at the end the following new sentence: ``In connection with a contract
renewal under this section or section 515, if the comparable market
rent determination made by the Secretary and the owner's appraiser
differ by 15 percent or more, the owner may request a third appraiser,
jointly selected and compensated by the Secretary and the owner, to
make a comparable market rent determination that shall be binding on
both parties.''.
SEC. 510. EXTENSION OF HOUSING ASSISTANCE PAYMENT CONTRACT.
(a) In General.--Section 524(a) of the Multifamily Assisted Housing
Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended
by adding at the end the following new paragraph:
``(6) Extension of contract term.--In connection with the
refinancing or sale of a project covered by a contract renewed
under this subsection, the Secretary shall, at the request of
the owner, amend the contract to extend the term to 30 years or
such shorter term as the owner may request. Such an extension
shall be subject to the availability of sufficient amounts
provided in appropriation Acts.''.
(b) Exception Rent Projects.--Section 524(b) of the Multifamily
Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f
note) is amended by adding at the end the following new paragraph:
``(4) Extension of contract term.--In connection with the
refinancing or sale of a project covered by a contract renewed
under this subsection, the Secretary shall, at the request of
the owner, amend the contract to extend the term to 30 years or
such shorter term as the owner may request. Such an extension
shall be subject to the availability of sufficient amounts
provided in appropriation Acts''.
SEC. 511. OTHERWISE ELIGIBLE PROJECTS.
Section 514 of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by adding
at the end the following new subsection:
``(i) Other Eligible Projects.--
``(1) In general.--Notwithstanding any other provision of
this subtitle, a project that meets the requirements of
subparagraphs (B) and (C) of section 512(2) but does not meet
the requirements of subparagraph (A) of section 512(2), may be
treated as an eligible multifamily housing project on an
exception basis if the Secretary determines, subject to
paragraph (2), that such treatment is necessary to preserve the
project in the most cost-effective manner in relation to other
alternative preservation options.
``(2) Owner request.--
``(A) Request required.--The Secretary shall not
treat an otherwise eligible project described under
paragraph (1) as an eligible multifamily housing
project unless the owner of the project requests such
treatment.
``(B) No adverse treatment if no request made.--If
the owner of a project does not make a request under
subparagraph (A), the Secretary shall not withhold from
such project any other available preservation option.
``(3) Cancellation.--
``(A) Timing.--At any time prior to the completion
of a mortgage restructuring under this subtitle, the
owner of a project may--
``(i) withdraw any request made under
paragraph (2)(A); and
``(ii) pursue any other option with respect
to the renewal of such owner's section 8
contract pursuant to any applicable statute or
regulation.
``(B) Documentation.--If an owner of a project
withdraws such owner's request and pursues other
renewal options under this paragraph, such owner shall
be entitled to submit documentation or other
information to replace the documentation or other
information used during processing for mortgage
restructuring under this subtitle.
``(4) Limitation.--The Secretary may exercise the authority
to treat projects as eligible multifamily housing projects
pursuant to this subsection only to the extent that the number
of units in such projects do not exceed 10 percent of all units
for which mortgage restructuring pursuant to section 517 is
completed.''.
SEC. 512. EXCEPTION RENTS.
In the matter preceding clause (i) of section 514(g)(2)(A) of the
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42
U.S.C. 1437f note) is amended--
(1) by inserting ``disaster-damaged eligible projects and''
after ``waive this limit for''; and
(2) by striking ``five percent of all units'' and inserting
``9 percent of all units''.
SEC. 513. DISASTER-DAMAGED ELIGIBLE PROJECTS.
(a) Market Rent Determination.--Section 514(g)(1)(B) of the
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42
U.S.C. 1437f note) is amended by striking ``determined, are equal'' and
inserting the following: ``determined--
``(i) with respect to a disaster-damaged
property, are equal to 100 percent of the fair
market rents for the relevant market area (as
such rents were in effect at the time of such
disaster); and
``(ii) with respect to other eligible
multifamily housing projects, are equal''.
(b) Owner Investment.--Section 517(c) of the Multifamily Assisted
Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is
amended by adding at the end the following:
``(3) Properties damaged by natural disasters.--With
respect to a disaster-damaged eligible property, the owner
contribution toward rehabilitation needs shall be determined in
accordance with paragraph (2)(C).''.
SEC. 514. FUNDING FOR TENANT AND OTHER PARTICIPATION AND CAPACITY
BUILDING.
Paragraph (3) of section 514(f) of the Multifamily Assisted Housing
Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is
amended--
(1) in subparagraph (A)--
(A) in the first sentence--
(i) by striking ``not more than'' and
inserting ``not less than'';
(ii) by striking ``of low-income housing
for which project-based rental assistance is
provided at below market rent levels and may
not be renewed'' and inserting the following:
``and improvement of low-income housing for
which project-based rental assistance,
subsidized loans, or enhanced vouchers under
section 8(t) are provided''; and
(iii) in the second parenthetical clause,
by inserting before the closing parenthesis the
following: ``, and predevelopment assistance to
enable such transfers''; and
(B) by inserting after the period at the end the
following: ``For outreach and training of tenants and
technical assistance, the Secretary shall implement a
grant program utilizing performance-based outcome
measures for eligible costs incurred. Recipients
providing capacity building or technical assistance
services to tenant groups shall be qualified nonprofit
Statewide, countywide, area-wide or citywide
organizations with demonstrated experience including at
least a two-year recent track record of organizing and
providing assistance to tenants, and independence from
the owner, a prospective purchaser, or their managing
agents. The Secretary may provide assistance and
training to grantees in administrative and fiscal
management to ensure compliance with applicable Federal
requirements. The Secretary shall expedite the
provision of funding for the fiscal year in which the
date of the enactment of the Housing Preservation and
Tenant Protection Act of 2010 occurs by entering into
new multi-year contracts with any prior grantee without
adverse audit findings or whose adverse audit findings
have been cleared, and by entering into an interagency
agreement for not less than $1,000,000 with the
Corporation for National and Community Service or any
other agency of the Federal Government, that is
selected by the Secretary and the Secretary determines
is qualified to conduct such program, to conduct a
tenant outreach and training program under the same or
similar terms and conditions as was most recently
conducted by the Corporation. The Secretary shall also
make available flexible grants to qualified nonprofit
organizations that do not own eligible multifamily
properties, for tenant outreach in underserved areas,
and to experienced national or regional nonprofit
organizations to provide specialized training or
support to grantees assisted under this section.
Notwithstanding any other provision of law, funds
authorized under this section for any fiscal year shall
be available for obligation in subsequent fiscal years.
The Secretary shall require each recipient of amounts
made available pursuant to this subparagraph to submit
to the Secretary reports, on a quarterly basis,
detailing the use of such funds and including such
information as the Secretary shall require.''; and
(2) by adding at the end the following new subparagraphs:
``(D) Prohibitions.--None of the funds made
available under subparagraph (A) may be used for any
political activities, political advocacy, or lobbying
(as such terms are defined by Circular A-122 of the
Office of Management and Budget, entitled `Cost
Principles for Non-Profit Organizations'), or for
expenses for travel to engage in political activities
or preparation of or provision of advice on tax
returns.
``(E) Program compliance systems.--Each recipient
of amounts made available under subparagraph (A) shall
develop systems to ensure compliance with the program
and the requirements of this paragraph.
``(F) Penalties.--The Secretary may impose
penalties on any recipient of amounts made available
under subparagraph (A) that fails to comply with any
requirement under this paragraph or of the program
established pursuant to this paragraph, which penalties
may include--
``(i) ineligibility for further assistance
from amounts made available under subparagraph
(A); and
``(ii) requiring the recipient to reimburse
the Secretary for any amounts that were so
misused.''.
TITLE VI--PRESERVATION DATABASE
SEC. 601. PRESERVATION DATABASE.
(a) Unique Identifier.--The Secretary of Housing and Urban
Development, in consultation with the Secretary of Agriculture, shall
establish a unique alphanumeric identifier for each covered multifamily
property (as such term is defined in subsection (i)). A property shall
have only one such identifier, regardless of whether such property is
receiving more than one of the forms of assistance identified in
subsection (i).
(b) Public Availability of Information.--The Secretary of Housing
and Urban Development shall require the submission of information and
make publicly available such information about each covered multifamily
property, which information shall include the following:
(1) The unique identifier for the property established
pursuant to subsection (a).
(2) The name of the property.
(3) The address and geographical coordinates of the
property.
(4) The name of, and contact information for, the owner (or
owners) or sponsor (or sponsors) of the property.
(5) A characterization of the type of owners or sponsors of
the property (such as nonprofit or for-profit).
(6) The name of, and contact information for, the property
management company.
(7) The year that the property was built or placed in
service.
(8) The total number of dwelling units in the property.
(9) The total number of dwelling units in the property of
each size (such as studio units, 1-bedroom units, or 2-bedroom
units).
(10) The average income of tenants residing in dwelling
units in the property receiving project-based rental
assistance, according to the most recent available information.
(11) For each size of dwelling unit in the property, the
contract rents for such dwelling units.
(12) For each size of dwelling unit in the property, the
ratio of the contract rents for such dwelling units to the fair
market rent established under section 8(c) of the United States
Housing Act of 1937 for such size dwelling units for the area
in which the property is located.
(13) The most recent 3 scores for the property for any
physical inspections, including any real estate assessment
center (REAC) scores for the property, and the dates of such
inspections.
(14) Indicators of the financial condition of the property,
which may include notification of any foreclosure proceedings
on the property and any bankruptcy filings by the entity
holding title to the property.
(15) The form or forms of assistance identified in
subsection (i) that are provided for the property.
(16) For each form of assistance identified in subsection
(i) that is provided for the property, the total number of
dwelling units in the property for which such assistance is
provided.
(17) For each form of assistance identified in subsection
(i) that is provided for the property, the total number of
assisted dwelling units in the property of each size (such as
studio units, 1-bedroom units, and 2-bedroom units).
(18) For each form of assistance identified in subsection
(i) that is provided for the property, a characterization of
occupancy restrictions applicable to the property (such as
restrictions limiting occupancy to only elderly, disabled, or
families).
(19) For each form of assistance identified in subsection
(i) that is provided for the property, any limitations on the
incomes of tenants applicable to the assistance.
(20) For each form of assistance identified in subsection
(i) that is provided for the property, the day, month, and year
that any affordability or low-income use restrictions
applicable to the property first applied.
(21) For each form of assistance identified in subsection
(i) that is provided for the property, the day, month, and year
that any affordability or low-income use restrictions
applicable to the property will terminate.
(22) For each form of assistance identified in subsection
(i) that is provided for the property, the day, month, and year
of any early termination date for such form of assistance after
which any affordability or low-income use restrictions will not
necessarily apply to the property (such as the termination of
the compliance period for any low-income housing tax credit for
the property or the date that a loan or mortgage for the
property held or insured by the Secretary is first eligible for
prepayment).
(23) Any notices, plans, and information relating to the
property required under the Low-Income Housing Preservation and
Resident Homeownership Act of 1990 (12 U.S.C. 4101 et seq.),
including any notice of intent to prepay a mortgage under
section 212 of such Act, information provided under section 216
of such Act by the Secretary, second notice of intent under
section 216(d) of such Act, plan of action under section 217 of
such Act, and notice of approval of a plan of action under
section 225 of such Act.
(24) Any notice of a request to terminate an insurance
contract under title II of the National Housing Act for a loan
or mortgage on the property.
(25) Any notice of a request to prepay a loan or mortgage
on the property insured under title II of the National Housing
Act and an indication of whether such request was made in
conjunction with a refinance application under such title.
(26) Any notice under section 8(c)(8) of the United States
Housing Act of 1937 of proposed termination of an assistance
contract under such section for the property.
(27) A description of any notice indicating an intention of
the owner in selling the property.
(28) Any other information as the Secretary or the designee
of the Secretary determines is appropriate.
(c) Means.--
(1) Availability through world wide web.--The information
made available pursuant to subsection (b) shall be made
available to the public through a World Wide Web site of the
Department of Housing and Urban Development.
(2) Searchable electronic database.--Such information shall
be made available in a searchable electronic database format
that allows for the data for each of the forms of assistance
specified in subsection (i) to be aggregated in a single
database.
(3) Use of existing systems and databases.--The
requirements of subsection (b) may be met by adapting existing
systems or databases to include the unique identifier
established pursuant to subsection (a) and the information
specified in subsection (b).
(4) Annual and quarterly list.--At least annually, the
Secretary shall update and make available a list of properties
receiving one of more forms of assistance specified in
subsection (i). At least on a quarterly basis, the Secretary
shall make available through a World Wide Web site of the
Department of Housing and Urban Development a list of
properties receiving one or more forms of assistance specified
in subsection (i). Each such annual and quarterly list shall
include, for each such property, the unique identifier
established pursuant to subsection (a) and the information
specified in paragraphs (1) through (3) of subsection (b).
(d) Updating.--The information made available pursuant to
subsection (b) shall be updated not less than annually or in accordance
with any rules or practice applicable to the subsidy program involved
that require information to be made available more frequently. Any
historical databases shall remain available to the public through a
World Wide Web site of the Department of Housing and Urban Development.
(e) Initial Availability.--The Secretary of Housing and Urban
Development shall make information initially publicly available
pursuant to this section not later than the expiration of the 18-month
period beginning on the date of the enactment of this Act.
(f) Information From Department of Agriculture.--The Secretary of
Agriculture shall take such actions as may be necessary to ensure that
information regarding any covered multifamily properties described in
paragraphs (1)(E) and (3)(G) of subsection (i) that is sufficient for
the Secretary of Housing and Urban Development to comply with the
requirements of this section, with respect to such properties, is
timely made available to the Secretary of Housing and Urban
Development.
(g) Information From Secretary of the Treasury.--The Secretary of
the Treasury shall take such actions as may be necessary to ensure that
information regarding any covered multifamily properties described in
paragraphs (4) and (6) of subsection (i) that is sufficient for the
Secretary of Housing and Urban Development to comply with the
requirements of this section, with respect to such properties, is
timely made available to the Secretary of Housing and Urban
Development.
(h) Grants to States and Localities.--
(1) Authority.--The Secretary of Housing and Urban
Development shall, to the extent amounts are made available for
grants under this subsection, make grants to States and units
of local government to enable such entities to collect and make
available to the public information about State and local
assistance provided to covered multifamily properties
identified in databases developed by the Secretary pursuant to
this section or to other properties assisted by such States and
units of local government.
(2) Authorization of appropriations.--There is authorized
to be appropriated to the Secretary of Housing and Urban
Development for grants under this subsection such sums as may
be necessary in each fiscal year to carry out this subsection.
(i) Covered Multifamily Properties.--For purposes of this section,
the term ``covered multifamily property'' means a property consisting
of more than 4 rental dwelling units, which property--
(1) is covered in whole or in part by a contract for
assistance that is attached to the structure under--
(A) section 8 of the United States Housing Act of
1937 (42 U.S.C. 1437f), including--
(i) subsections (b) and (o)(13) of such
section 8;
(ii) the new construction and substantial
rehabilitation program under such section
8(b)(2), as in effect before October 1, 1983;
(iii) the property disposition program
under such section 8(b);
(iv) the moderate rehabilitation program
under such section 8(e)(2); and
(v) the loan management assistance program
under such section 8;
(B) section 23 of the United States Housing Act of
1937, as in effect before January 1, 1975;
(C) the rent supplement program under section 101
of the Housing and Urban Development Act of 1965 (12
U.S.C. 1701s);
(D) section 8 of the United States Housing Act of
1937, following conversion from assistance under
section 101 of the Housing and Urban Development Act of
1965; or
(E) section 521 of the Housing Act of 1949 (42
U.S.C. 1490a);
(2) is financed by a mortgage insured or held by the
Secretary under title II of the National Housing Act (12 U.S.C.
1707 et seq.);
(3) receives assistance that is attached to the structure
pursuant to--
(A) section 202 of the Housing Act of 1959 (12
U.S.C. 1701q), including properties receiving
assistance prior to the enactment of the Cranston-
Gonzalez National Affordable Housing Act;
(B) section 811 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 8013);
(C) section 5 or 9 of the United States Housing Act
of 1937 (42 U.S.C. 1437c, 1437g);
(D) title II of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12721 et seq.);
(E) subtitle D of title VIII of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C.
12901 et seq.);
(F) title IV of the McKinney-Vento Homeless
Assistance Act (12 U.S.C. 11301 et seq.); or
(G) sections 514, 515, or 516 of the Housing Act of
1949 (42 U.S.C. 1484, 1485);
(4) is financed in whole or part with low-income housing
tax credits pursuant to section 42 of the Internal Revenue Code
of 1986 (26 U.S.C. 42);
(5) is financed in whole or part with amounts from the
Housing Trust Fund established under section 1338 of the
Federal Housing Enterprises Financial Safety and Soundness Act
of 1992 (12 U.S.C. 4568); or
(6) is financed in whole or in part with the proceeds from
a bond issued pursuant to section 141 or 142 of the Internal
Revenue Code of 1986 (26 U.S.C. 141, 142).
(j) Protection of Information.--This title shall not be construed
to require disclosure of Social Security numbers, personal tax returns,
or any other personal financial information of or concerning
individuals who have an interest in the ownership or management
entities of covered housing.
TITLE VII--SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY
SEC. 701. SHORT TITLE AND TABLE OF CONTENTS.
This title may be cited as the ``Section 202 Supportive Housing for
the Elderly Act of 2010''.
Subtitle A--New Construction Reforms
SEC. 711. PROJECT RENTAL ASSISTANCE.
Paragraph (2) of section 202(c) of the Housing Act of 1959 (12
U.S.C. 1701q(c)(2)) is amended--
(1) by inserting after ``assistance.--'' the following:
``(A) Initial project rental assistance contract.--'';
(2) in the last sentence, by striking ``may'' and inserting
``shall''; and
(3) by adding at the end the following new subparagraph:
``(B) Renewal of and increases in contract amounts.--
``(i) Expiration of contract term.--Upon the
expiration of each contract term, the Secretary shall
adjust the annual contract amount to provide for
reasonable project costs, and any increases, including
adequate reserves, supportive services, and service
coordinators.
``(ii) Emergency situations.--In the event of
emergency situations that are outside the control of
the owner, the Secretary shall increase the annual
contract amount, subject to reasonable review and
limitations as the Secretary shall provide.''.
SEC. 712. SELECTION CRITERIA.
Section 202(f)(1) of the Housing Act of 1959 (12 U.S.C. 1701q(f))
is amended--
(1) by redesignating subparagraphs (F) and (G) as
subparagraphs (G) and (H), respectively; and
(2) by inserting after subparagraph (E):
``(F) the extent to which the applicant has ensured that a
service coordinator will be employed or otherwise retained for
the housing, who has the managerial capacity and responsibility
for carrying out the actions described in subparagraphs (A) and
(B) of subsection (g)(2);''.
SEC. 713. DEVELOPMENT COST LIMITATIONS.
Section 202(h)(1) of the Housing Act of 1959 (12 U.S.C.
1701q(h)(1)) is amended, in the matter preceding subparagraph (A), by
inserting ``reasonable'' before ``development cost limitations''.
SEC. 714. OWNER DEPOSITS.
Section 202(j)(3)(A) of the Housing Act of 1959 (12 U.S.C.
1701q(j)(3)(A)) is amended by inserting after the period at the end the
following: ``Such amount shall be used only to cover operating deficits
during the first 3 years of operations and shall not be used to cover
construction shortfalls or inadequate initial project rental assistance
amounts.''.
SEC. 715. DEFINITION OF PRIVATE NONPROFIT ORGANIZATION.
Paragraph (4) of section 202(k) of the Housing Act of 1959 (12
U.S.C. 1701q(k)(4)) is amended to read as follows:
``(4) The term ``private nonprofit organization'' means--
``(A) any incorporated private institution or
foundation--
``(i) no part of the net earnings of which
inures to the benefit of any member, founder,
contributor, or individual;
``(ii) which has a governing board--
``(I) the membership of which is
selected in a manner to assure that
there is significant representation of
the views of the community in which
such housing is located, except that,
in the case of any organization that is
the sponsor of multiple housing
projects assisted under this section,
the organization may comply with this
subclause by having a local advisory
board for each community to the
governing board of the organization,
the membership of which is selected in
the manner required under this
subclause; and
``(II) which is responsible for the
operation of the housing assisted under
this section; and
``(iii) which is approved by the Secretary
as to financial responsibility;
``(B) a for-profit limited partnership the sole
general partner of which is--
``(i) an organization meeting the
requirements under subparagraphs (A); or
``(ii) a for-profit corporation wholly
owned and controlled by one or more
organizations meeting the requirements under
subparagraph (A); and
``(C) a limited liability company wholly owned or
controlled by one or more organizations meeting the
requirements under subparagraph (A).''.
SEC. 716. PREFERENCES FOR HOMELESS ELDERLY.
Subsection (j) of section 202 of the Housing Act of 1959 (12 U.S.C.
1701q(j)) is amended by adding at the end the following new paragraph:
``(9) Preferences for homeless elderly.--The Secretary
shall permit an owner of housing assisted under this section to
establish for, and apply to, such housing a preference in
tenant selection for the homeless elderly, either within the
application or after selection pursuant to subsection (f), but
only if--
``(A) such preference is consistent with paragraph
(2); and
``(B) the owner demonstrates that the supportive
services identified pursuant to subsection (e)(4), or
additional supportive services to be made available
upon implementation of the preference, will meet the
needs of the homeless elderly, maintain safety and
security for all tenants, and be provided on a
consistent, long-term, and economical basis.''.
SEC. 717. NONMETROPOLITAN ALLOCATION.
Paragraph (3) of section 202(l) of the Housing Act of 1959 (12
U.S.C. 1701q(l)(3)) is amended by inserting after the period at the end
the following: ``In complying with this paragraph, the Secretary shall
either operate a national competition for the nonmetropolitan funds or
make allocations to regional offices of the Department of Housing and
Urban Development.''.
Subtitle B--Refinancing
SEC. 721. APPROVAL OF PREPAYMENT OF DEBT.
Subsection (a) of section 811 of the American Homeownership and
Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended--
(1) in the matter preceding paragraph (1), by inserting ``,
for which the Secretary's consent to prepayment is required,''
after ``Affordable Housing Act)'';
(2) in paragraph (1)--
(A) by inserting ``at least 30 years following''
before ``the maturity date'';
(B) by inserting ``project-based'' before ``rental
assistance payments contract'';
(C) by inserting ``project-based'' before ``rental
housing assistance programs''; and
(D) by inserting ``, or any successor project-based
rental assistance program,'' after ``1701s))'';
(3) by amending paragraph (2) to read as follows:
``(2) the prepayment may involve refinancing of the loan if
such refinancing results in--
``(A) a lower interest rate on the principal of the
loan for the project and in reductions in debt service
related to such loan; or
``(B) a transaction in which the project owner will
address the physical needs of the project, but only if,
as a result of the refinancing--
``(i) the rent charges for unassisted
families residing in the project do not
increase or such families are provided rental
assistance under a senior preservation rental
assistance contract for the project pursuant to
subsection (e); and
``(ii) the overall cost for providing
rental assistance under section 8 for the
project (if any) is not increased, except, upon
approval by the Secretary to--
``(I) mark-up-to-market contracts
pursuant to section 524(a)(3) of the
Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C.
1437f note), as such section is carried
out by the Secretary for properties
owned by nonprofit organizations; or
``(II) mark-up-to-budget contracts
pursuant to section 524(a)(4) of the
Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C.
1437f note), as such section is carried
out by the Secretary for properties
owned by eligible owners (as such term
is defined in section 202(k) of the
Housing Act of 1959 (12 U.S.C.
1701q(k)); and''; and
(4) by adding at the end the following:
``(3) notwithstanding paragraph (2)(A), the prepayment and
refinancing authorized pursuant to paragraph (2)(B) involves an
increase in debt service only in the case of a refinancing of a
project assisted with a loan under such section 202 carrying an
interest rate of 6 percent or lower.''.
SEC. 722. SOURCES OF REFINANCING.
The last sentence of section 811(b) of the American Homeownership
and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) is
amended--
(1) by inserting after ``National Housing Act,'' the
following: ``or approving the standards used by authorized
lenders to underwrite a loan refinanced with risk sharing as
provided by section 542 of the Housing and Community
Development Act of 1992 (12 U.S.C. 1701 note),''; and
(2) by striking ``may'' and inserting ``shall''.
SEC. 723. USE OF UNEXPENDED AMOUNTS.
Subsection (c) of section 811 of the American Homeownership and
Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended--
(1) by striking ``Use of Unexpended Amounts.--'' and
inserting ``Use of Pro-ceeds.--'';
(2) by amending the matter preceding paragraph (1) to read
as follows: ``Upon execution of the refinancing for a project
pursuant to this section, the Secretary shall ensure that
proceeds are used in a manner advantageous to tenants of the
project, or are used in the provision of affordable rental
housing and related social services for elderly persons that
are tenants of the project or of other projects assisted with a
loan under section 202 of the Housing Act of 1959 (12 U.S.C.
1701q) by the private nonprofit organization project owner,
private nonprofit organization project sponsor, or private
nonprofit organization project developer, including--'';
(3) in paragraph (1), by striking ``not more than 15
percent of'';
(4) in paragraph (2), by inserting before the semicolon the
following; ``, including reducing the number of units by
reconfiguring units that are functionally obsolete,
unmarketable, or not economically viable'';
(5) in paragraph (3), by striking ``or'' at the end;
(6) in paragraph (4), by striking ``according to a pro rata
allocation of shared savings resulting from the refinancing.''
and inserting a semicolon; and
(7) by adding at the end the following new paragraphs:
``(5) rehabilitation of the project to ensure long-term
viability;
``(6) the payment to the project owner, sponsor, or third
party developer of a developer's fee in an amount not to exceed
or duplicate--
``(A) in the case of a project refinanced through a
State low income housing tax credit program, the fee
permitted by the low income housing tax credit program
as calculated by the State program as a percentage of
acceptable development cost as defined by that State
program; or
``(B) in the case of a project refinanced through
any other source of refinancing, 15 percent of the
acceptable development cost; and
``(7) the payment of equity, if any, to--
``(A) in the case of a sale, to the seller or the
sponsor of the seller, in an amount equal to the lesser
of the purchase price or the appraised value of the
project, as each is reduced by the cost of prepaying
any outstanding indebtedness on the project and
transaction costs of the sale; or
``(B) in the case of a refinancing without the
transfer of the project, to the project owner or the
project sponsor, in an amount equal to the difference
between the appraised value of the project less the
outstanding indebtedness and total acceptable
development cost.
For purposes of paragraphs (6)(B) and (7)(B), the term ``acceptable
development cost'' shall include, as applicable, the cost of
acquisition, rehabilitation, loan prepayment, initial reserve deposits,
and transaction costs.''.
SEC. 724. USE OF PROJECT RESIDUAL RECEIPTS.
Paragraph (1) of section 811(d) of the American Homeownership and
Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended--
(1) by striking ``not more than 15 percent of''; and
(2) by inserting before the period at the end the
following: ``or other purposes approved by the Secretary''.
SEC. 725. ADDITIONAL PROVISIONS.
Section 811 of the American Homeownership and Economic Opportunity
Act of 2000 (12 U.S.C. 1701q note) is amended by adding at the end the
following new subsections:
``(e) Senior Preservation Rental Assistance Contracts.--
Notwithstanding any other provision of law, in connection with a
prepayment plan for a project approved under subsection (a) by the
Secretary or as otherwise approved by the Secretary to prevent
displacement of elderly residents of the project in the case of
refinancing or recapitalization and to further preservation and
affordability of such project, the Secretary shall provide project-
based rental assistance for the project under a senior preservation
rental assistance contract, as follows:
``(1) Assistance under the contract shall be made available
to the private nonprofit organization owner--
``(A) for a term of at least 20 years, subject to
annual appropriations; and
``(B) under the same rules governing project-based
rental assistance made available under section 8 of the
Housing Act of 1937 or under the rules governing such
other assistance as may be made available for the
project.
``(2) Any projects for which a senior preservation rental
assistance contract is provided shall be subject to a use
agreement to ensure continued project affordability having a
term of the longer of (A) the term of the senior preservation
rental assistance contract, or (B) such term as is required by
the new financing.
``(f) Subordination or Assumption of Existing Debt.--In lieu of
prepayment under this section of the indebtedness with respect to a
project, the Secretary may approve--
``(1) in connection with new financing for the project, the
subordination of the loan for the project under section 202 of
the Housing Act of 1959 (as in effect before the enactment of
the Cranston-Gonzalez National Affordable Housing Act) and the
continued subordination of any other existing subordinate debt
previously approved by the Secretary to facilitate preservation
of the project as affordable housing; or
``(2) the assumption (which may include the subordination
described in paragraph (1)) of the loan for the project under
such section 202 in connection with the transfer of the project
with such a loan to a private nonprofit organization.
``(g) Flexible Subsidy Debt.--The Secretary shall waive the
requirement that debt for a project pursuant to the flexible subsidy
program under section 201 of the Housing and Community Development
Amendments of 1978 (12 U.S.C. 1715z-1a) be prepaid in connection with a
prepayment, refinancing, or transfer under this section of a project if
such waiver is necessary for the financial feasibility of the
transaction and is consistent with the long-term preservation of the
project as affordable housing.
``(h) Tenant Involvement in Prepayment and Refinancing.--The
Secretary shall not accept an offer to prepay the loan for any project
under section 202 of the Housing Act of 1959 unless the Secretary has--
``(1) determined that the owner of the project has notified
the tenants of the owner's request for approval of a
prepayment;
``(2) determined that the owner of the project has provided
the tenants with an opportunity to comment on the owner's
request for approval of a prepayment, including a description
of any anticipated rehabilitation or other use of the proceeds
from the transaction, and its impacts on project rents, tenant
contributions, or the affordability restrictions for the
project; and
``(3) taken such comments into consideration.
``(i) Definition of Private Nonprofit Organization.--For purposes
of this section, the term `private nonprofit organization' has the
meaning given such term in section 202(k) of the Housing Act of 1959
(12 U.S.C. 1701q(k)).''.
Subtitle C--Assisted Living Facilities
SEC. 731. DEFINITION OF ASSISTED LIVING FACILITY.
Section 202b(g) of the Housing Act of 1959 (12 U.S.C. 1701q-2(g))
is amended by striking paragraph (1) and inserting the following new
paragraph:
``(1) the term `assisted living facility' means a facility
that--
``(A) is owned by a private nonprofit organization;
and
``(B)(i) is licensed and regulated by a State (or
if there is no State law providing for such licensing
and regulation by the State, by the municipality or
other political subdivision in which the facility is
located); or
``(ii)(I) makes available, directly or through
licensed or certified third party service providers, to
residents at the resident's request or choice
supportive services to assist the residents in carrying
out the activities of daily living, as described in
section 232(b)(6)(B) of the National Housing Act (12
U.S.C. 1715w(b)(6)(B)); and
``(II) provides separate dwelling units for
residents, each of which may contain a full kitchen and
bathroom and which includes common rooms and other
facilities appropriate for the provision of supportive
services to the residents of the facility; and''.
SEC. 732. MONTHLY ASSISTANCE PAYMENT UNDER RENTAL ASSISTANCE.
Clause (iii) of section 8(o)(18)(B) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(o)(18)(B)(iii)) is amended by inserting
before the period at the end the following: ``, except that a family
may be required at the time the family initially receives such
assistance to pay rent in an amount exceeding 40 percent of the monthly
adjusted income of the family by such an amount or percentage that is
reasonable given the services and amenities provided and as the
Secretary deems appropriate.''.
Subtitle D--National Senior Housing Clearinghouse
SEC. 741. NATIONAL SENIOR HOUSING CLEARINGHOUSE.
(a) Establishment.--Not later than 12 months after the date of
enactment of this Act, the Secretary of Housing and Urban Development
(in this section referred to as the ``Secretary'') shall establish and
operate a clearinghouse to serve as a national repository to receive,
collect, process, assemble, and disseminate information regarding the
availability and quality of multifamily developments for elderly
tenants, including--
(1) the availability of--
(A) supportive housing for the elderly pursuant to
section 202 of the Housing Act of 1959 (12 U.S.C.
1701q), including any housing unit assisted with a
project rental assistance contract under such section;
(B) properties and units eligible for assistance
under section 8 of the United States Housing Act of
1937 (42 U.S.C. 1437f);
(C) properties eligible for the low-income housing
tax credit under section 42 of the Internal Revenue
Code of 1986;
(D) units in assisted living facilities insured
pursuant to section 221(d)(4) of the National Housing
Act (12 U.S.C. 1715l(d)(4));
(E) units in any multifamily project that has been
converted into an assisted living facility for elderly
persons pursuant to section 202b of the Housing Act of
1959 (12 U.S.C. 1701q-2); and
(F) any other federally assisted or subsidized
housing for the elderly;
(2) the number of available units in each property,
project, or facility described in paragraph (1);
(3) the number of bedrooms in each available unit in each
property, project, or facility described in paragraph (1);
(4) the estimated cost to a potential tenant to rent or
reside in each available unit in each property, project, or
facility described in paragraph (1);
(5) the presence of a waiting list for entry into any
available unit in each property, project, or facility described
in paragraph (1);
(6) the number of persons on the waiting list for entry
into any available unit in each property, project, or facility
described in paragraph (1);
(7) the amenities available in each available unit in each
property, project, or facility described in paragraph (1),
including--
(A) the services provided by such property,
project, or facility;
(B) the size and availability of common space
within each property, project, or facility;
(C) the availability of organized activities for
individuals residing in such property, project, or
facility; and
(D) any other additional amenities available to
individuals residing in such property, project, or
facility;
(8) the level of care (personal, physical, or nursing)
available to individuals residing in any property, project, or
facility described in paragraph (1);
(9) whether there is a service coordinator in any property,
project, or facility described in paragraph (1); and
(10) any other criteria determined appropriate by the
Secretary.
(b) Collection and Updating of Information.--
(1) Initial collection.--Not later than 180 days after the
date of enactment of this Act, the Secretary shall conduct an
annual survey requesting information from each owner of a
property, project, or facility described in subsection (a)(1)
regarding the provisions described in paragraphs (2) through
(11) of such subsection.
(2) Response time.--Not later than 60 days after receiving
the request described under paragraph (1), the owner of each
such property, project, or facility shall submit such
information to the Secretary.
(3) Public availability.--Not later than 120 days after the
Secretary receives the submission of any information required
under paragraph (2), the Secretary shall make such information
publicly available through the clearinghouse.
(4) Updates.--The Secretary shall conduct a biennial survey
of each owner of a property, project, or facility described in
subsection (a)(1) for the purpose of updating or modifying
information provided in the initial collection of information
under paragraph (1). Not later than 30 days after receiving
such a request, the owner of each such property, project, or
facility shall submit such updates or modifications to the
Secretary. Not later than 60 days after receiving such updates
or modifications, the Secretary shall inform the clearinghouse
of such updated or modified information.
(c) Functions.--The clearinghouse established under subsection (a)
shall--
(1) respond to inquiries from State and local governments,
other organizations, and individuals requesting information
regarding the availability of housing in multifamily
developments for elderly tenants;
(2) make such information publicly available via the
Internet website of the Department of Housing and Urban
Development, which shall include--
(A) access via electronic mail; and
(B) an easily searchable, sortable, downloadable,
and accessible index that itemizes the availability of
housing in multifamily developments for elderly tenants
by State, county, and zip code;
(3) establish a toll-free number to provide the public with
specific information regarding the availability of housing in
multifamily developments for elderly tenants; and
(4) perform any other duty that the Secretary determines
necessary to achieve the purposes of this section.
(d) Relationship With Other Databases.--In carrying out this
section, the Secretary may make the clearinghouse a part of any other
multifamily housing database that the Secretary maintains or is
otherwise required to establish pursuant to this Act or any other
provision of law.
(e) Authorization of Appropriations.--There are authorized to be
appropriated such sums as necessary to carry out this section.
TITLE VIII--RURAL HOUSING PRESERVATION
SEC. 801. SHORT TITLE.
This title may be cited as the ``Rural Housing Preservation Act of
2010''.
SEC. 802. PRESERVATION OF MULTIFAMILY HOUSING.
(a) Preservation Program.--Title V of the Housing Act of 1949 (42
U.S.C. 1471 et seq.) is amended by adding at the end the following new
section:
``SEC. 545. PRESERVATION OF MULTIFAMILY HOUSING AND PROTECTION OF
TENANTS.
``(a) Preservation Program.--The Secretary shall, subject to the
availability of amounts appropriated, carry out a preservation program
in accordance with this section to provide financial incentives and
other assistance to owners of eligible projects through long-term use
agreements entered into between the project owners and the Secretary.
``(b) Applications To Participate.--
``(1) In general.--The Secretary shall accept applications
from owners of eligible projects to participate in the
preservation program under this section.
``(2) Priority.--In selecting among applications of
eligible projects to participate in the preservation program,
the Secretary may give priority to applications for such
projects that are located on tribal trust lands or other Indian
areas, in colonias (as such term is defined in section 916(e)
of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 5306 note), or in other small, poor, low-income
communities.
``(c) Long-Term Viability Plan.--
``(1) Requirement.--The Secretary shall prepare and approve
a long-term viability plan under this subsection with respect
to each eligible project for which the owner requests to
participate.
``(2) Contents.--Each long-term viability plan for an
eligible project shall include the following information:
``(A) Physical needs assessment.--A physical needs
assessment of the project that identifies and projects,
for the following 30 years--
``(i) all necessary repairs, improvements,
maintenance, and management standards for the
project, and when they will be made, in order
to meet the requirements of this title; and
``(ii) the costs associated with the items
referred to clause (i).
``(B) Financial plan.--A financial plan for the
project that--
``(i) reviews the financial stability of
the project;
``(ii) includes the loan restructuring
elements, rent adjustments, management and
operational efficiencies, and other financial
adjustments to the project that are necessary
to cover operating expenses for the project and
maintain an adequate financial reserve for the
future maintenance and capital needs of the
project;
``(iii) provides the project owner with a
long-term rate of return on equity of the
project owner, as determined by the Secretary,
commensurate to comparable rural multifamily
housing projects for which a tax credit is
provided under section 42 of the Internal
Revenue Code of 1986 (26 U.S.C. 42), and
provides that any return in excess of such rate
of return shall be made available to the
Secretary only for use under section 514, 515,
or 516;
``(iv) meets the physical needs for the
project determined under the physical needs
assessment;
``(v) ensures that rents available under
the plan are affordable to eligible households
in accordance with subsection (f); and
``(vi) addresses any costs associated with
any temporary tenant displacement resulting
from renovations or rehabilitation undertaken
as a result of participation of the project in
the preservation program.
``(3) Development through participating administrative
entities.--The Secretary may develop long-term viability plans
through the use of third-party participating administrative
entities, who may be a private contractor, a State housing
finance agency, or a nonprofit organization.
``(4) Preservation determination.--Based on the long-term
viability plan for an eligible project, the Secretary shall
determine whether to offer the project owner a financial
restructuring plan under subsection (d) and the financial
incentives to be included in any such plan offered.
``(5) Final review and comment.--Before a determination is
made under subparagraph (D) with respect to any long-term
viability plan prepared by the Secretary, the Secretary shall--
``(A) provide the project owner an opportunity to
review the plan and discuss the plan with the Secretary
or its agent;
``(B) make available to the tenants of the project
a copy of such plan and provide a period of not less
than 30 days for tenants to submit comments regarding
the plan to the Secretary; and
``(C) respond in writing to such comments.
``(6) Fees.--The Secretary may charge the project owner a
fee for preparation of the long-term viability plan.
``(7) Payment of fees.--If a long-term viability for a
project is approved, the payment of such fee may be
incorporated into a project owner's financial restructuring
plan for the project provided by the Secretary pursuant to
subsection (d).
``(d) Financial Restructuring Plan; Preservation Incentives.--Based
on the long-term viability plan for an eligible project, the Secretary
may offer a project owner a financial restructuring plan for the
project. Such a plan may include one or more of the following
preservation incentives:
``(1) Reduction or elimination of interest on the loan or
loans for the project made under section 514, 515, or 516.
``(2) Partial or full deferral of payments due under such
loan or loans.
``(3) Forgiveness of such loan or loans.
``(4) Subordination of such loan or loans, subject to such
terms and conditions as the Secretary shall determine.
``(5) Reamortization of loan payments under such loan or
loans over extended terms.
``(6) A grant from the Secretary for the project.
``(7) Payment of project costs associated with developing
the long-term viability plan.
``(8) Opportunity for project owners to obtain further
investment equity from third parties.
``(9) A direct loan or guarantee of a loan for the project,
with a subsidized interest rate without regard to the value of
the project.
``(e) Long-Term Use Agreement.--
``(1) In general.--If the owner of an eligible project
agrees to the terms of a financial restructuring plan for the
project providing preservation benefits under subsection (d),
in exchange for such benefits, the Secretary and the project
owner shall enter into a long-term use agreement under this
subsection for the project.
``(2) Agreement.--A long-term use agreement for an eligible
project shall include--
``(A) the terms of the financial restructuring plan
for the project, including any preservation incentives
to be provided;
``(B) an agreement by the project owner--
``(i) to continue the property use
restrictions with respect to the project in
accordance with this title for a period of--
``(I) 30 years, or
``(II) the remaining term of any
loans under this title for the project,
whichever ends later;
``(ii) to comply with the long-term
viability plan for the project; and
``(iii) to comply with the rent terms under
subsection (f) for the project;
``(C) provisions terminating the agreement if any
material preservation incentives for the project to be
provided under the agreement are no longer available
and the Secretary determines that such unavailability
is not the fault of the owner;
``(D) any rent terms for the project pursuant to
subsection (f);
``(E) a covenant which runs with the land;
``(F) a representation and warranty by the owner to
provide safe, healthy, clean buildings pursuant to the
Secretary's guidelines;
``(G) provisions providing for rural preservation
voucher assistance under section 542(c) for low-income
households residing in the project who are eligible for
such vouchers; and
``(H) such other terms as the Secretary determines
are necessary to implement the purposes of this
section.
``(f) Rents Under Long-Term Use Agreement.--Rents for any eligible
households residing in dwelling units in any preserved project shall
comply with the following requirements:
``(1) Maximum household contribution to rent and
utilities.--The maximum household contribution to monthly rent
and utilities for any eligible household may not exceed 30
percent of the adjusted income of the eligible household.
``(2) Rent adjustments.--The rents for eligible projects
may be increased or decreased only on an annual basis and only
in accordance with standards incorporated in such agreement.
``(3) Lowest cost requirement.--In determining the terms of
a restructuring plan, and the type and amount of preservation
benefits under such plan to approve under this section for an
eligible project, the Secretary shall, to the extent
practicable, approve assistance that imposes the least cost to
the Secretary while meeting the requirements of the long-term
viability plan for the project.
``(g) Earned Income Disregard for Residents.--
``(1) In general.--Notwithstanding any other provision of
law, the amount of the contribution toward rent for a dwelling
unit payable, by any household described in paragraph (3), for
occupancy in a project funded with a loan under section 514,
515, or 516 may not be increased as a result of the increased
income due to employment during the 12-month period beginning
on the date on which the employment is commenced.
``(2) Phase-in of rent increases.--Upon the expiration of
the 12-month period referred to in paragraph (1), the
contribution toward rent payable by a household described in
paragraph (3) may be increased due to the continued employment
of the household member described in subparagraph (3)(B),
except that during the 12-month period beginning upon such
expiration the amount of the increase may not be greater than
50 percent of the amount of the total increase in contribution
toward rent that would be applicable but for this paragraph.
``(3) Eligible household.--A household described in this
paragraph is a household that--
``(A)(i) is an eligible household who resides in an
eligible project; or
``(ii) is provided rural preservation voucher
assistance pursuant to section 542(c); and
``(B)(i) whose income increases as a result of
employment of a member of the household who was
previously unemployed for 1 or more years;
``(ii) whose earned income increases during the
participation of a household member in any family self-
sufficiency or other job training program; or
``(iii) who is or was, within 6 months, assisted
under any State program for temporary assistance for
needy families funded under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.) and whose
earned income increases.
``(h) Ineligibility.--
``(1) Procedure for determination.--The Secretary may
determine that a project owner is ineligible for participation
in the preservation program under this section in accordance
with the standards under paragraph (2).
``(2) Standards.--The Secretary may determine that a
project owner is ineligible if--
``(A) the project owner has a history of poor
management or maintenance of multifamily housing
properties;
``(B) the project owner is in default on a loan
made available under the section 514, 515, or 516
housing program;
``(C) the Secretary is unable to enter into a long-
term use agreement for the project that is the subject
of the application with the project owner within a
reasonable time;
``(D) the project owner is suspended or debarred
from participating in Federal contracts or programs; or
``(E) the Secretary has other good cause for
withholding from the project owner the benefits made
available under this section.
``(i) Definitions.--For purposes of this section, the following
definitions shall apply:
``(1) Eligible household.--The term `eligible household'
means a household that, under section 514, 515, or 516, is
eligible to reside in a project funded with a loan made by the
Secretary under such section.
``(2) Eligible project.--The term `eligible project' means
a housing project funded with a loan made at any time by the
Secretary under section 514, 515, or 516, the principal
obligation of which has not been fully repaid.
``(3) Project owner; owner.--The terms `project owner' and
`owner' mean, with respect to an eligible project, an
individual or entity, or principals thereof that own, or plan
to purchase, the project.
``(4) Preserved project.--The term `preserved project'
means an eligible project for which the Secretary and owner
have entered into agreement on a financial restructuring plan
for the project and into a long-term use agreement for the
project, under this section.
``(j) Annual Report.--The Secretary shall submit a report to the
Congress annually regarding the compliance of owners of eligible
projects participating in the preservation program under this section
with the requirements of such program, which shall identify and
describe any significant failures to comply.
``(k) Authorization of Appropriations.--There are authorized to be
appropriated for each of fiscal years 2011 through 2015 such sums as
may be necessary to carry out the preservation program under this
section.''.
SEC. 803. RURAL PRESERVATION AND RURAL TENANT PROTECTION VOUCHERS.
Section 542 of the Housing Act of 1949 (42 U.S.C. 1490r) is amended
by adding at the end the following new subsections:
``(c) Rural Preservation Assistance.--In the case of a housing
project subject to a loan made under section 514, 515, or 516 that is a
preserved project (as such term is defined in section 545(i)), the
Secretary shall, to the extent that amounts for assistance under this
subsection are provided in advance in appropriation Acts, make
available to each eligible household (as such term is defined in
section 545(i)) that is not already assisted under the rental
assistance program under section 521 or the program for rental
assistance under section 8 of the United States Housing Act of 1937 (42
U.S.C. 1437f), and is residing in the project upon the date that a
long-term use agreement is entered into pursuant to section 545(e)
between the project owner and the Secretary, voucher assistance under
this subsection or rental assistance under section 521 upon such date,
as follows:
``(1) The amount of assistance provided shall be sufficient
to allow such household to remain in the project after it is
preserved.
``(2) The percentage of adjusted income paid by the
eligible household for rent and utilities for the assisted
dwelling shall not exceed 30 percent of adjusted income of the
eligible household.
``(3) The assistance shall be available to the eligible
household only during the period in which the eligible
household resides in the preserved project and the long-term
use agreement remains in effect.
``(4) Upon termination of the participation of the eligible
household in the assistance program, the assistance shall
remain attached to the preserved project and shall be available
for use by another eligible household residing in the preserved
project.
``(d) Rural Tenant Protection Vouchers for Prepayments and
Foreclosures.--
``(1) In general.--In the case of a housing project subject
to a loan made under section 514, 515, or 516 that is prepaid
or foreclosed upon, the Secretary shall, to the extent that
amounts for assistance under this subsection are provided in
advance in appropriation Acts, make available to each eligible
household (as such term is defined in section 545(i)) that is
not assisted under the rental assistance program under section
521 or the program for rental assistance under section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f), and is
residing in a dwelling unit in the project upon the date that
the Secretary approves the prepayment or submits notice of
foreclosure to the project owner, as applicable, voucher
assistance upon such date, as follows:
``(A) Relocation vouchers.--In the case of any such
eligible household who must relocate from a project for
which the loan is being prepaid or foreclosed upon,
voucher assistance under this subsection shall be
subject to the terms of section 8(o) of the United
States Housing Act of 1937 (42 U.S.C. 1437(o)), except
that--
``(i) the percentage of adjusted income
paid by the eligible household for rent and
utilities for the assisted dwelling unit shall
not at any time exceed 30 percent of the
adjusted income of the eligible household; and
``(ii) a voucher provided pursuant to this
subparagraph shall be subject to the terms of
section 8(r) of such Act (relating to
portability), except that if an eligible
household uses the voucher to move to a
community other than the community in which the
project from which the family relocated
pursuant to such prepayment or foreclosure is
located, upon termination of the participation
of such eligible family in the voucher program,
the voucher shall be returned for use in the
community in which such project is located.
``(B) Enhanced vouchers.--In the case of any such
eligible household who remains in a project for which
the loan is prepaid or foreclosed upon, voucher
assistance under this subsection shall be subject to
the terms of section 8(t) of the United State Housing
Act of 1937 (42 U.S.C. 1437f(t)), except that--
``(i) the percentage of adjusted income
paid by the eligible household for rent and
utilities for the assisted dwelling unit shall
not at any time exceed 30 percent of the
adjusted income of the eligible household;
``(ii) the owner of the project may not
refuse to lease, to an eligible household for
whom voucher assistance under this subparagraph
is made available, any available appropriately
sized rental dwelling unit in the project;
``(iii) voucher assistance under this
subparagraph may be used only for dwelling
units in housing that is decent, safe, and
sanitary; and
``(iv) upon termination of participation of
such eligible family in the enhanced voucher
program, the voucher shall convert to a
relocation voucher under subparagraph (A) of
this paragraph, and shall be available with
respect to such project only to provide
assistance in accordance with the provisions of
such subparagraph.
``(e) Administration.--The Secretary may contract with a public
housing agency or a private or nonprofit organization to administer
vouchers authorized under subsections (c) and (d).
``(f) Renewal.--Vouchers under subsections (c) and (d) shall be
renewed annually, subject to the availability of appropriations for
such renewal.
``(g) Use of Savings.--Notwithstanding any other provision of law,
any amounts made available for voucher assistance under subsections (c)
and (d) that remain unused because of increases in the incomes of
household assisted under such vouchers shall be available to the
Secretary for eligible activities under this Act.
``(h) Applicability of Section 8 Program.--Except as specifically
provided otherwise in this section, to the maximum extent practicable,
the Secretary shall administer voucher assistance under subsections (c)
and (d) in accordance with, but not subject to, regulations and
administrative guidance for housing vouchers administered by the
Secretary of Housing and Urban Development under section 8(o) of such
Act.
``(i) Authorization of Appropriations.--There is authorized to be
appropriated for voucher assistance under subsections (c) and (d) such
sums as may be necessary for each of fiscal years 2011 through 2015.''.
SEC. 804. TENANT PARTICIPATION.
Title V of the Housing Act of 1949 is amended by inserting after
section 517 (42 U.S.C. 1487) the following new section:
``SEC. 518. TENANT PARTICIPATION.
``The Secretary shall extend to tenants in multifamily housing
projects financed under sections 514, 515, 516 and 538 all of the
rights that are specified in section 202 of the Housing and Community
Development Amendments of 1978 (12 U.S.C. 1715z-1b) with respect to
tenants of multifamily housing projects (as such term is defined in
subsection (a) of such section).''.
SEC. 805. PRIORITY FOR FINANCING.
Subsection (j) of section 515 of the Housing Act of 1949 (42 U.S.C.
1485(j)) is amended--
(1) by inserting ``(1)'' before ``For''; and
(2) by adding at the end the following new paragraph:
``(2) The Secretary may give priority, in entering into contracts
under this section involving financing for new construction of a
project, for projects located in eligible rural areas having a need for
affordable low-income rental housing due to prepayment of loans made or
insured under this section.''.
SEC. 806. CONFORMING AMENDMENT.
Section 537(b)(1) of the Housing Act of 1949 (42 U.S.C. 1490p-
1(b)(1)) is amended by inserting before the semicolon the following:
``and to administer the preservation program under section 545''.
SEC. 807. REGULATIONS.
The Secretary of Agriculture shall issue proposed regulations to
carry out the amendments made by this title not later than the
expiration of the 90-day period beginning upon the date of the
enactment of this Act, and shall issue final regulations to carry out
the amendments made by this title not later than the expiration of the
180-day period beginning upon such date of enactment.
<all>
Introduced in House
Introduced in House
Referred to House Financial Services
Referred to the Committee on Financial Services, and in addition to the Committees on the Budget, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to House Budget
Referred to House Ways and Means
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended) by the Yeas and Nays: 42 - 27.
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