[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1254 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 1254
To reauthorize the Multifamily Assisted Housing Reform and
Affordability Act of 1997, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 26, 2001
Mr. Sarbanes (for himself, Mr. Reed, and Mr. Allard) introduced the
following bill; which was read twice and referred to the Committee on
Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To reauthorize the Multifamily Assisted Housing Reform and
Affordability Act of 1997, 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 ``Mark-to-Market Extension Act of
2001''.
SEC. 2. PURPOSES.
The purposes of this Act are--
(1) to continue the progress of the Multifamily Assisted
Housing Reform and Affordability Act of 1997 (referred to in
this section as ``that Act'');
(2) to ensure that properties that undergo mortgage
restructurings pursuant to that Act are rehabilitated to a
standard that allows the properties to meet their long-term
affordability requirements;
(3) to ensure that, for properties that undergo mortgage
restructurings pursuant to that Act, reserves are set at
adequate levels to allow the properties to meet their long-term
affordability requirements;
(4) to ensure that properties that undergo mortgage
restructurings pursuant to that Act are operated efficiently,
and that operating expenses are sufficient to ensure the long-
term financial and physical integrity of the properties;
(5) to ensure that properties that undergo rent
restructurings have adequate resources to maintain the
properties in good condition;
(6) to ensure that the Office of Multifamily Housing
Assistance Restructuring continues to focus on the portfolio of
properties eligible for restructuring under that Act;
(7) to ensure that the Department of Housing and Urban
Development carefully tracks the condition of those properties
on an ongoing basis;
(8) to ensure that tenant groups, non-profit organizations,
and public entities continue to have the resources for building
the capacity of tenant organizations in furtherance of the
purposes of subtitle A of that Act; and
(9) to encourage the Office of Multifamily Housing
Assistance Restructuring to continue to provide participating
administrative entities, including public participating
administrative entities, with the flexibility to respond to
specific problems that individual cases may present, while
ensuring consistent outcomes around the country.
SEC. 3. DEFINITIONS.
Section 512 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:
``(19) Department.--The term `Department' means the
Department of Housing and Urban Development.
``(20) Office.--The term `Office' means the Office of
Multifamily Housing Assistance Restructuring established under
section 571.''.
SEC. 4. FHA-INSURED MULTIFAMILY HOUSING MORTGAGE AND HOUSING ASSISTANCE
RESTRUCTURING.
The Multifamily Assisted Housing Reform and Affordability Act of
1997 (42 U.S.C. 1437f note) is amended--
(1) in section 514(f)(3)(A)--
(A) by striking ``Secretary may provide'' and
inserting ``Secretary shall provide''; and
(B) by striking ``entities) and for tenant
services,'' and inserting ``entities), for tenant
services, and for tenant groups, nonprofit
organizations, and public entities described in section
517(a)(5),'';
(2) in section 514(g)(2)(A), by striking ``mortgages in any
fiscal year'' and inserting ``rents and mortgages under this
subtitle'';
(3) in section 515(c)(4), by inserting before the period
the following: ``, which assistance shall be accepted by the
owner of that project as payment for rent if the property use
continues as rental housing'';
(4) in section 516(d), by striking ``Subject to'' and
inserting the following:
``(1) Notice to certain residents.--The Office shall notify
any tenant that is residing in a project or receiving
assistance under section 8 of the United States Housing Act of
1937 (42 U.S.C. 1437f) at the time of rejection under this
section, of that rejection.
``(2) Assistance and moving expenses.--Subject to'';
(5) in section 524(e), by adding at the end the following:
``(3) Mortgage restructuring and rental assistance
sufficiency plans.--Notwithstanding paragraph (1), the owner of
the project may request, and the Secretary may consider,
mortgage restructuring and rental assistance sufficiency plans
to facilitate sales or transfers of properties under this
subtitle, subject to an approved plan of action under the
Emergency Low Income Housing Preservation Act of 1987 (12
U.S.C. 1715l note) or the Low-Income Housing Preservation and
Resident Homeownership Act of 1990 (12 U.S.C. 4101 et seq.),
which plans shall result in a sale or transfer of those
properties.'';
(6) in section 512(2), in the second sentence, by inserting
``, but does include a project described in section 524(e)(3)''
after ``section 524(e)'';
(7) in section 517(b), by adding at the end the following:
``(8) Addition of significant features.--
``(A) In general.--If the participating
administrative entity requires the addition of
significant features, such as air conditioning, an
elevator, or additional community space, in accordance
with guidelines established by the Secretary, the
required owner contribution shall not exceed 25 percent
of the amount of rehabilitation assistance received, as
determined by the Secretary.
``(B) Applicability.--Subparagraph (A) shall apply
to all eligible multifamily housing projects except
those for which both the Secretary and the project
owner executed a mortgage restructuring and rental
assistance sufficiency plan on or before the date of
enactment of the Mark-to-Market Extension Act of 2001.
``(C) Additional cost.--Nothing in this paragraph
shall be construed to relieve an owner or purchaser
from contributing to rehabilitation assistance as
required under paragraph (7)(B).'';
(8) in section 512(2), by striking subparagraph (A) and
inserting the following:
``(A) with rents that, on an average per unit or
per room basis--
``(i) exceed the rent of comparable
properties in the same market area, as
determined by the Secretary, a participating
administrative entity, or any other independent
entity acting on behalf of the Secretary and in
accordance with guidelines established by the
Secretary; or
``(ii) exceeded the rent of comparable
properties in the same market area, as
determined by the Secretary, prior to, and
notwithstanding, any renewal of project-based
assistance under this subtitle;'';
(9) in section 520(b)--
(A) by striking ``Banking and'';
(B) by striking ``periods, the'' and inserting the
following: ``periods--
``(1) the'';
(C) by striking the period at the end and inserting
a semicolon; and
(D) by adding at the end the following:
``(2) the physical and financial condition of properties
that are the subject of rent and mortgage restructurings under
this subtitle, with special emphasis on properties that have
undergone rent restructurings after the Office determined that
mortgage restructurings were necessary; and
``(3) the status of oversight by the Department, of the
financial and physical condition of properties referred to in
paragraph (2) .''; and
(10) in section 517(a)(1)(B), by striking ``no more than
the'' and inserting the following: ``not more than the greater
of--
``(i) the full or partial payment of claim
made under this subtitle; or
``(ii) the''.
SEC. 5. ENHANCED VOUCHERS.
Section 8(t)(1)(B) of the United States Housing Act of 1937 (42
U.S.C. 1437f(t)(1)(B)) is amended by inserting after ``paragraph
(10)(A) of subsection (o)'' the following: ``and subject to the
comparable rent limitations provided in subparagraphs (A) and (B) of
section 514(g)(1) of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note)''.
SEC. 6. MISCELLANEOUS HOUSING INSURANCE.
Section 223(a)(7) of the National Housing Act (12 U.S.C.
1715n(a)(7)) is amended--
(1) by striking ``under this Act: Provided, That the
principal'' and inserting the following: ``under this Act, or
an existing mortgage held by the Secretary that is subject to a
mortgage restructuring and rental assistance sufficiency plan
pursuant to the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note), provided
that--
``(A) the principal'';
(2) by striking ``: Provided further, That a mortgage'' and
inserting the following ``; and
``(B) a mortgage''; and
(3) by striking ``or'' at the end and inserting the
following:
``(C) a mortgage that is subject to a mortgage
restructuring and rental assistance sufficiency plan
pursuant to the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note) and is
refinanced under this paragraph may have a term of not
more than 30 years; or''.
SEC. 7. TECHNICAL CORRECTION.
(a) In General.--Section 531(c) of Public Law 106-74 (113 Stat.
1116) is amended by striking ``514(h)'' and inserting ``514(h)(1)''.
(b) Retroactive Effect.--The amendment made by subsection (a) shall
be deemed to have the same effective date as section 531 of Public Law
106-74.
SEC. 8. OFFICE OF MULTIFAMILY HOUSING ASSISTANCE RESTRUCTURING.
(a) In General.--The Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended--
(1) in section 571--
(A) by inserting ``Federal Housing Administration
of the'' after ``within the''; and
(B) by inserting before the period at the end the
following: ``(in this subtitle, referred to as the
`Office')'';
(2) in section 572(a)--
(A) by striking ``by and with the advice and
consent of the Senate''; and
(B) by striking the second sentence;
(3) in section 573(b), in the first sentence, by inserting
``the Federal Housing Commissioner and'' before ``the
Secretary''; and
(4) in section 579--
(A) by striking subsection (a) and inserting the
following:
``(a) Repeal.--Subtitle A (except for section 524) and subtitle D
(except for section 576 and this section) are repealed effective
October 1, 2006, and section 576 is repealed effective October 1,
2007.'';
(B) in subsection (b), by striking ``2001'' and
inserting ``2006''; and
(C) in subsection (c), by striking ``2001'' and
inserting ``2006''.
(b) Limitation on Subsequent Employment.--Section 576 of the
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42
U.S.C. 1437f note) is amended by striking ``2-year period'' and
inserting ``1-year period''.
(c) Repeal.--Section 578 of the Multifamily Assisted Housing Reform
and Affordability Act of 1997 (42 U.S.C. 1437f note) is repealed.
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