No official summary available for this bill.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10421 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 10421
To establish a permanent rural housing preservation and revitalization
program, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 16, 2024
Mr. Cleaver introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To establish a permanent rural housing preservation and revitalization
program, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Strategy and Investment in Rural
Housing Preservation Act of 2023''.
SEC. 2. PERMANENT ESTABLISHMENT OF HOUSING PRESERVATION AND
REVITALIZATION 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. HOUSING PRESERVATION AND REVITALIZATION PROGRAM.
``(a) Establishment.--The Secretary shall carry out a program under
this section for the preservation and revitalization of multifamily
rental housing projects financed under section 515 or both sections 514
and 516.
``(b) Notice of Maturing Loans.--
``(1) To owners.--On an annual basis, the Secretary shall
provide written notice to each owner of a property financed
under section 515 or both sections 514 and 516 that will mature
within the 4-year period beginning upon the provision of the
notice, setting forth the options and financial incentives that
are available to facilitate the extension of the loan term or
the option to decouple a rental assistance contract pursuant to
subsection (f).
``(2) To tenants.--
``(A) In general.--For each property financed under
section 515 or both sections 514 and 516, not later
than the date that is 2 years before the date that the
loan will mature, the Secretary shall provide written
notice to each household residing in the property that
informs them of the date of the loan maturity, the
possible actions that may happen with respect to the
property upon that maturity, and how to protect their
right to reside in federally assisted housing after
that maturity.
``(B) Language.--Notice under this paragraph shall
be provided in plain English and shall be translated to
other languages in the case of any property located in
an area in which a significant number of residents
speak such other languages.
``(c) Loan Restructuring.--Under the program under this section, in
any circumstance in which the Secretary proposes a restructuring to an
owner or an owner proposes a restructuring to the Secretary, the
Secretary may restructure such existing housing loans, as the Secretary
considers appropriate, for the purpose of ensuring that those projects
have sufficient resources to preserve the projects to provide safe and
affordable housing for low-income residents and farm laborers, by--
``(1) reducing or eliminating interest;
``(2) deferring loan payments;
``(3) subordinating, reducing, or reamortizing loan debt;
and
``(4) providing other financial assistance, including
advances, payments, and incentives (including the ability of
owners to obtain reasonable returns on investment) required by
the Secretary.
``(d) Renewal of Rental Assistance.--
``(1) In general.--When the Secretary proposes to
restructure a loan or agrees to the proposal of an owner to
restructure a loan pursuant to subsection (c), the Secretary
shall offer to renew the rental assistance contract under
section 521(a)(2) for a 20-year term that is subject to annual
appropriations, provided that the owner agrees to bring the
property up to or maintain the property at such standards that
will ensure maintenance of the property as decent, safe, and
sanitary housing for the full term of the rental assistance
contract.
``(2) Additional rental assistance.--
``(A) In general.--With respect to a project
described in paragraph (1), if rental assistance is not
available for all households in the project for which
the loan is being restructured pursuant to subsection
(c), the Secretary may extend such additional rental
assistance to unassisted households at that project as
is necessary to make the project safe and affordable to
low-income households.
``(B) Unavailable property.--In the event that a
property is not available to provide additional rental
assistance to households under subparagraph (A), the
Secretary may offer a rural housing voucher to those
households.
``(e) Restrictive Use Agreements.--
``(1) Requirement.--As part of the preservation and
revitalization agreement for a project, the Secretary shall
obtain a restrictive use agreement that obligates the owner to
operate the project in accordance with this title.
``(2) Term.--
``(A) No extension of rental assistance contract.--
Except when the Secretary enters into a 20-year
extension of the rental assistance contract for a
project, the term of the restrictive use agreement for
the project shall be consistent with the term of the
restructured loan for the project.
``(B) Extension of rental assistance contract.--If
the Secretary enters into a 20-year extension of the
rental assistance contract for a project, the term of
the restrictive use agreement for the project shall be
for 20 years.
``(C) Termination.--The Secretary may terminate the
20-year use restrictive use agreement for a project
before the end of the term of the agreement if the 20-
year rental assistance contract for the project with
the owner is terminated at any time for reasons outside
the control of the owner.
``(f) Decoupling of Rental Assistance.--
``(1) Renewal of rental assistance contract.--If the
Secretary determines that a maturing loan for a project cannot
reasonably be restructured in accordance with subsection (c)
because it is not financially feasible or the owner does not
agree with the proposed restructuring, and the project was
operating with rental assistance under section 521, the
Secretary may renew the rental assistance contract,
notwithstanding any provision of section 521, for a term,
subject to annual appropriations, of 20 years, provided that
the owner enters into a restrictive use agreement.
``(2) Additional rental assistance.--With respect to a
project described in paragraph (1), if rental assistance is not
available for all households in the project, the Secretary may
extend such additional rental assistance to unassisted
households at that project as is necessary to make the project
safe and affordable to low-income households.
``(3) Rents.--Any agreement to extend the term of the
rental assistance contract under section 521 for a project
shall obligate the owner to continue to maintain the project as
decent, safe and sanitary housing and to operate the
development in accordance with this title, except that rents
shall be based on the lesser of--
``(A) the budget-based needs of the project; or
``(B) the operating cost adjustment factor as a
payment standard as provided under section 524 of the
Multifamily Assisted Housing Reform and Affordability
Act of 1997 (42 U.S.C. 1437 note).
``(4) Conditions for approval.--
``(A) Plan.--Before the approval of a rental
assistance contract authorized under this section, the
Secretary shall require the owner to submit to the
Secretary a plan that identifies financing sources and
a timetable for renovations and improvements determined
to be necessary by the Secretary to maintain and
preserve the project.
``(B) Automatic approval.--If a plan submitted
under subparagraph (A) is not acted upon by the
Secretary within 30 days of the submission, the rental
assistance contract is automatically approved for not
more than a 1-year period.
``(g) Multifamily Housing Transfer Technical Assistance.--Under the
program under this section, the Secretary may provide grants to
qualified nonprofit organizations and public housing agencies to
provide technical assistance, including financial and legal services,
to borrowers under loans under this title for multifamily housing to
facilitate the acquisition of such multifamily housing properties in
areas where the Secretary determines there is a risk of loss of
affordable housing.
``(h) Transfer of Rental Assistance.--After the loan or loans for a
rental project originally financed under section 515 or both sections
514 and 516 have matured or have been prepaid and the owner has chosen
not to restructure the loan pursuant to subsection (c)--
``(1) a tenant residing in the project shall have 18 months
before loan maturation or prepayment to transfer the rental
assistance assigned to the unit of the tenant to another rental
project originally financed under section 515 or both sections
514 and 516, and such tenants will have priority for admission
over other applicants; and
``(2) the owner of the initial project may rent the
previous unit of the tenant to a new tenant without income
restrictions.
``(i) Administrative Expenses.--Of any amounts made available for
the program under this section for any fiscal year, the Secretary may
use not more than $1,000,000 for administrative expenses for carrying
out such program.
``(j) Authorization of Appropriations.--There is authorized to be
appropriated for the program under this section $200,000,000 for each
of fiscal years 2024 through 2028.
``(k) Rulemaking.--
``(1) In general.--Not later than 180 days after the date
of enactment of the Strategy and Investment in Rural Housing
Preservation Act of 2023, the Secretary shall--
``(A) publish an advance notice of proposed
rulemaking; and
``(B) consult with appropriate stakeholders.
``(2) Interim final rule.--Not later than 1 year after the
date of enactment of the Strategy and Investment in Rural
Housing Preservation Act of 2023, the Secretary shall publish
an interim final rule to carry out this section.''.
SEC. 3. ELIGIBILITY FOR RURAL HOUSING VOUCHERS.
Section 542 of the Housing Act of 1949 (42 U.S.C. 1490r) is amended
by adding at the end the following:
``(c) Eligibility of Households in Sections 514, 515, and 516
Projects.--
``(1) In general.--The Secretary may provide rural housing
vouchers under this section for any low-income household
(including those not receiving rental assistance) residing--
``(A) for a term longer than the remaining term of
their lease in effect just prior to prepayment, in a
property financed with a loan made or insured under
section 514 or 515 that has--
``(i) been prepaid without restrictions
imposed by the Secretary pursuant to section
502(c)(5)(G)(ii)(I);
``(ii) been foreclosed; or
``(iii) matured after September 30, 2005
and the property is not receiving rental
assistance under section 545(f); or
``(B) in a property assisted under section 514 or
516.
``(2) Priority.--The Secretary shall prioritize the
provision of rental housing vouchers under this section for
projects owned by nonprofit organizations and their affiliates
or public agencies.''.
SEC. 4. AMOUNT OF VOUCHER ASSISTANCE.
Notwithstanding any other provision of law, in the case of any
rural housing voucher provided pursuant to section 542 of the Housing
Act of 1949 (42 U.S.C. 1490r), the amount of the monthly assistance
payment for the household on whose behalf the assistance is provided
shall be determined as provided in subsection (a) of such section 542.
SEC. 5. RENTAL ASSISTANCE CONTRACT AUTHORITY.
Section 521(d) of the Housing Act of 1949 (42 U.S.C. 1490a(d)) is
amended--
(1) in paragraph (1)--
(A) by redesignating subparagraphs (B) and (C) as
subparagraphs (C) and (D), respectively;
(B) by inserting after subparagraph (A) the
following:
``(B) upon request of an owner of a project
financed under section 514 or 515 or an owner who has
entered into a restrictive use agreement under section
545(e), the Secretary is authorized to enter into a
renewal of such agreements for a period of 20 years or
the term of the loan, whichever is shorter, subject to
amounts made available in appropriations Acts;'';
(C) in subparagraph (C), as so redesignated, by
striking ``subparagraph (A)'' and inserting
``subparagraphs (A) and (B)''; and
(D) in subparagraph (D), as so redesignated, by
striking ``subparagraphs (A) and (B)'' and inserting
``subparagraphs (A), (B), and (C)''; and
(2) in paragraph (2)--
(A) by striking ``shall'' and inserting ``may'';
and
(B) by inserting ``(other than the authority
described in paragraph (1)(B))'' after ``this
section''.
SEC. 6. FUNDING FOR MULTIFAMILY TECHNICAL IMPROVEMENTS.
(a) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary of Agriculture $50,000,000 for fiscal
year 2024 for improving the technology of the Department of Agriculture
used to process loans for multifamily housing and otherwise managing
that housing.
(b) Timeline.--The improvements required under subsection (a) shall
be made within the 5-year period beginning upon the appropriation of
amounts under subsection (a), and those amounts shall remain available
until the expiration of that 5-year period.
SEC. 7. PLAN FOR PRESERVING AFFORDABILITY OF RENTAL PROJECTS.
(a) Plan.--Not later than 6 months after the date of enactment of
this Act, the Secretary of Agriculture (in this section referred to as
the ``Secretary'') shall submit to Congress a written plan for
preserving the affordability for low-income families of rental projects
for which loans were made under section 514 or 515 of the Housing Act
of 1949 (42 U.S.C. 1484, 1485) and avoiding the displacement of tenant
households, which shall--
(1) set forth specific performance goals and measures;
(2) set forth the specific actions and mechanisms by which
those goals will be achieved;
(3) set forth specific measurements by which progress
towards achievement of each goal can be measured;
(4) provide for detailed reporting on outcomes; and
(5) include any legislative recommendations to assist in
achievement of the goals under the plan.
(b) Advisory Committee.--
(1) Establishment; purpose.--The Secretary shall establish
an advisory committee (in this section referred to as the
``advisory committee'') to assist the Secretary in--
(A) preserving properties assisted under section
514 or 515 of the Housing Act of 1949 (42 U.S.C. 1484,
1485) through the multifamily housing preservation and
revitalization program under section 545 of such Act,
as added by section 2 of this Act; and
(B) implementing the plan required under subsection
(a).
(2) Member.--The advisory committee shall consist of 16
members, appointed by the Secretary, as follows:
(A) A State Director of Rural Development for the
Department of Agriculture.
(B) The Administrator for Rural Housing Service of
the Department of Agriculture.
(C) Two representatives of for-profit developers or
owners of multifamily rural rental housing.
(D) Two representatives of nonprofit developers or
owners of multifamily rural rental housing.
(E) Two representatives of State housing finance
agencies.
(F) Two representatives of tenants of multifamily
rural rental housing.
(G) One representative of a community development
financial institution that is involved in preserving
the affordability of housing assisted under sections
514, 515, and 516 of the Housing Act of 1949 (42 U.S.C.
1484, 1485, 1486).
(H) One representative of a nonprofit organization
that operates nationally and has actively participated
in the preservation of housing assisted by the Rural
Housing Service by conducting research regarding, and
providing financing and technical assistance for,
preserving the affordability of that housing.
(I) One representative of low-income housing tax
credit investors.
(J) One representative of regulated financial
institutions that finance affordable multifamily rural
rental housing developments.
(K) Two representatives from nonprofit
organizations representing farmworkers, including 1
organization representing farmworker women.
(3) Meetings.--The advisory committee shall meet not less
often than once each calendar quarter.
(4) Functions.--In providing assistance to the Secretary to
carry out the purpose of the advisory committee, the advisory
committee shall carry out the following functions:
(A) Assisting the Rural Housing Service of the
Department of Agriculture to improve estimates of the
size, scope, and condition of rental housing portfolio
of the Rural Housing Service, including the time frames
for maturity of mortgages and costs for preserving the
portfolio as affordable housing.
(B) Reviewing policies and procedures of the Rural
Housing Service regarding preservation of affordable
rental housing financed under sections 514, 515, 516,
and 538 of the Housing Act of 1949 (42 U.S.C. 1484,
1485, 1486, 1490p-2), the Multifamily Preservation and
Revitalization Demonstration program, and the rental
assistance program and making recommendations regarding
improvements and modifications to those policies and
procedures.
(C) Providing ongoing review of Rural Housing
Service program results.
(D) Providing reports to Congress and the public on
meetings, recommendations, and other findings of the
advisory committee.
(5) Travel costs.--Any amounts made available for
administrative costs of the Department of Agriculture may be
used for costs of travel by members of the advisory committee
to meetings of the advisory committee.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line