[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 1279 Introduced in Senate (IS)]

103d CONGRESS
  1st Session
                                S. 1279

    To provide the Secretary of Housing and Urban Development with 
        flexibility to dispose of multifamily housing projects.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                July 22 (legislative day, June 30), 1993

 Mr. Bond (for himself and Mr. D'Amato) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
    To provide the Secretary of Housing and Urban Development with 
        flexibility to dispose of multifamily housing projects.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; PURPOSES.

    (a) Short Title.--This Act may be cited as the ``FHA Multifamily 
Housing Flexible Disposition Act of 1993''.
    (b) Purposes.--The purposes of this Act are:
            (1) To balance the need to reimburse the general insurance 
        fund of the Department of Housing and Urban Development through 
        the disposition of multifamily housing projects with the goal 
        of preserving housing for low-income households.
            (2) To provide housing to households with mixed incomes 
        that are capable of paying the operating and debt service costs 
        of such housing.
            (3) To explore different approaches to disposing of such 
        housing, including the use of Federal housing rental subsidies, 
        Federal housing mortgage insurance, risk-sharing arrangements, 
        purchase money mortgages, and low-income housing tax credits, 
        or combinations thereof.
            (4) To maintain to the maximum extent possible the low-
        income character of such housing while disposing of such 
        properties in an economically viable manner.

SEC. 2. AUTHORITY.

    (a) In General.--Consistent with the purposes set forth in section 
1 and for a period of 18 months from the date of enactment of this Act, 
the Secretary of Housing and Urban Development (hereafter in this Act 
referred to as the ``Secretary'') may dispose of multifamily housing 
projects that are--
            (1) owned by the Secretary; or
            (2) being foreclosed upon by the Secretary;
without regard to the provisions of section 203 of the Housing and 
Community Development Amendments of 1978 (12 U.S.C. 1701z-11).
    (b) Sale to Local Governments and State Agencies.--
            (1) Notice.--
                    (A) In general.--Within a reasonable period of time 
                after acquiring title to a multifamily housing project, 
                the Secretary shall provide written notice to--
                            (i) the unit of general local government 
                        the jurisdiction of which includes such 
                        project; and
                            (ii) the State housing finance agency, or 
                        other appropriate agency, of the State in which 
                        such project is located.
                    (B) Contents.--The notice provided under paragraph 
                (1) shall contain basic information about the project, 
                including its location, the number of units (identified 
                by number of bedrooms), and information relating to the 
                estimated fair market value of the project.
            (2) Expression of serious interest.--Not later than 60 days 
        after receiving notice under paragraph (1), a unit of general 
        local government or State agency may provide the Secretary with 
        written notice of its serious interest in the property. Such 
        notice of serious interest shall be in such form and include 
        such information as the Secretary may prescribe.
            (3) Notice of readiness for sale.--Upon the expiration of 
        the 60-day period referred to in paragraph (2), the Secretary 
        shall provide written notice to any unit of general local 
        government or State agency that has expressed serious interest 
        in the property. Such notice shall specify the minimum terms 
        and conditions for the sale of the property.
            (4) Offers and acceptance.--
                    (A) Offers.--A unit of general local government or 
                State agency has 45 days after the date notice is 
                received under paragraph (3) to make a bona fide offer 
                to purchase the property.
                    (B) Nonprofit organizations.--An offer under this 
                paragraph may be made in conjunction with a nonprofit 
                organization.
                    (C) Acceptance.--The Secretary shall accept an 
                offer that complies with the terms and conditions 
                prescribed by the Secretary under paragraph (3).
    (c) Sale to Other Purchasers.--If, after expiration of the periods 
of time referred to in paragraphs (2) and (4)(A) of subsection (b), as 
applicable, no purchaser has expressed serious interest or made a bona 
fide offer to purchase the property, the Secretary may sell the 
property to any purchaser.
    (d) Definitions.--For the purposes of this Act the term 
``multifamily housing project'' has the same meaning as in section 
203(i)(1) of the Housing and Community Development Amendments of 1978 
(12 U.S.C. 1701z-11(i)(1)).

SEC. 3. REPORT.

    Not later than 90 days after the expiration of the 18-month period 
following the date of enactment of this Act, the Secretary shall 
transmit to the Congress a report describing the various methods of 
disposition of multifamily housing projects that have been undertaken 
pursuant to this Act and any recommendations for administrative or 
legislative action to further the purposes of this Act.

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