Short title

This Act may be cited as the

Rural Rental Housing Act of 2006

Findings

Congress makes the following findings: (1)There is a pressing and increasing need for housing in the United States for families and senior citizens in rural areas, as evidenced by the fact that— (A)28 percent, or 10,400,000, of rural households in the United States live with some kind of serious housing problem; and (B)an estimated 2,600,000 rural households live in substandard housing with severe structural damage or without indoor plumbing, heat, or electricity. (2)There is an acute shortage of affordable rental housing exists in the rural United States, as evidenced by the fact that— (A)two-thirds of extremely low-income and very low-income rural households do not have access to affordable rental housing units; (B)36 percent of all rural renters pay more than 30 percent of their income for housing, and 20 percent pay more than 50 percent of their income for housing; and (C)92 percent of all renters with significant housing problems pay more than 50 percent of their income for housing costs, and 60 percent pay more than 70 percent of their income for housing. (3)Many rural renters live with serious housing problems, including a lack of basic water and wastewater services, structural insufficiencies, and overcrowding, as evidenced by the fact that— (A)more than 900,000 rural rental households (10.4 percent of all such households) live in either moderately or severely inadequate housing; and (B)approximately 1,000,000 rural renters have multiple housing problems. (4)Rural economies are often less diverse, and therefore, jobs and economic opportunity are limited because— (A)factors that exist in rural environments, such as remoteness and low population density, lead to limited access to many forces driving the economy, such as technology, lending, and investment; and (B)local expertise is often limited in rural areas where the economies are focused on farming or natural resource-based industries. (5)Rural areas have less access to credit than metropolitan areas, because— (A)banks and other investors that look for larger projects with lower risk seek metropolitan areas for loans and investment; (B)credit that is available is often insufficient, leading to the need for interim or bridge financing; and (C)credit in rural areas is often more expensive and available at less favorable terms than in metropolitan areas. (6)The Federal Government investment in rural rental housing has dropped during the last 10 years, as evidenced by the fact that— (A)Federal spending for rural rental housing has been cut by 77 percent since 1994; and (B)rural rental housing unit production financed by the Federal Government has been reduced by 88 percent since 1990. (7)To address the scarcity of rural rental housing, the Federal Government must work in partnership with State and local governments, private financial institutions, private philanthropic institutions, and the private sector, including nonprofit organizations.

Definitions

For purposes of this Act, the following definitions shall apply: (1)

Eligible project

The term eligible project means a project for the acquisition, rehabilitation, or construction of rental housing and related facilities in an eligible rural area for occupancy by low-income families. (2)

Eligible rural area

The term eligible rural area means a rural area that— (A)has a population of not more than 25,000, as determined by the most recent decennial census of the United States; and (B)is located outside an urbanized area. (3)

Eligible sponsor

The term eligible sponsor means— (A)a public agency; (B)an Indian tribe; (C)a for-profit corporation; or (D)a private nonprofit corporation— (i)a purpose of which is planning, developing, or managing housing or community development projects in rural areas; (ii)that has a record of accomplishment in housing or community development; and (iii)that meets other criteria established by the Secretary by regulation. (4)

Low-income families

The term low-income families has the meaning given such term in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)). (5)

Qualified intermediary

The term qualified intermediary means a State, a State agency designated by the Governor of the State, a public instrumentality of the State, a private nonprofit community development corporation, a nonprofit housing corporation, a community development loan fund, or a community development credit union, that— (A)has a record of providing technical and financial assistance for housing and community development activities in rural areas; and (B)has a demonstrated technical and financial capacity to administer assistance made available under this Act. (6)

Secretary

The term Secretary means the Secretary of Agriculture. (7)

State

The term State means each of the several States of the United States, the Commonwealth of Puerto Rico, the District of Columbia, the Commonwealth of the Northern Mariana Islands, Guam, the Virgin Islands, American Samoa, and any other possession of the United States.

Rural rental housing assistance

(a)

In general

The Secretary may, directly or through one or more qualified intermediaries in accordance with section 5, make assistance available under this Act to eligible sponsors in the form of loans, grants, interest subsidies, annuities, and other forms of financing assistance, to finance the eligible projects. (b)

Applications

(1)

In general

To be eligible to receive assistance under this section, an eligible sponsor shall submit to the Secretary, or a qualified intermediary, an application in such form and containing such information as the Secretary shall, by regulation, require. (2)

Affordability restriction

Each application under this subsection shall include a certification by the applicant that the housing to be acquired, rehabilitated, or constructed with assistance under this section will remain affordable for low-income families for not less than 30 years. (c)

Priority for assistance

In selecting among applicants for assistance under this section, the Secretary, or a qualified intermediary, shall give priority to providing assistance to eligible projects— (1)for very low-income families (as such term is defined in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)); (2)in low-income communities or in communities with a severe lack of affordable rental housing, in eligible rural areas, as determined by the Secretary; or (3)if the applications are submitted by public agencies, Indian tribes, private nonprofit corporations or limited dividend corporations in which the general partner is a non-profit entity whose principal purposes include planning, developing and managing low-income housing and community development projects. (d)

Allocation of assistance

(1)

In general

In carrying out this section, the Secretary shall allocate assistance among the States taking into consideration the incidence of rural substandard housing and rural poverty in each State and the share of that State of the national total of such incidence. (2)

Small state minimum

To the extent sufficient amounts are made available for assistance under this Act, in making allocations under paragraph (1), the Secretary shall provide each State an amount not less than $2,000,000. (e)

Limitations on amount of assistance

(1)

In general

Except as provided in paragraph (2), assistance made available under this Act for an eligible project may not exceed 50 percent of the total cost of such project. (2)

Exception

In the case of any eligible project for the acquisition, rehabilitation, or construction of not more than 20 rental housing units for use by very low-income families, assistance made available under this Act may not exceed 75 percent of the total cost of such project.

Delegation of authority

(a)

In general

The Secretary may delegate authority for distribution, in a State, of assistance under this Act— (1)to one or more qualified intermediaries in the State; and (2)for a period of not more than 3 years, upon the expiration of which such delegation of authority shall be subject to renewal, in the discretion of the Secretary, for one or more additional periods of not more than 3 years. (b)

Solicitation

(1)

In general

The Secretary may, in the discretion of the Secretary, solicit applications from qualified intermediaries for a delegation of authority under this section. (2)

Contents of application

Each application under this subsection shall include— (A)a certification that the applicant will— (i)provide matching funds from sources other than this Act in an amount that is not less than the amount of assistance provided to the applicant under this section; and (ii)distribute assistance to eligible sponsors in the State in accordance with section 4; and (B)a description of— (i)the State or the area within a State to be served; (ii)the incidence of poverty and substandard housing in the State or area to be served; (iii)the technical and financial qualifications of the applicant; and (iv)the assistance sought and a proposed plan for the distribution of such assistance in accordance with section 4. (3)

Multistate applications

The Secretary may, in the discretion of the Secretary, seek application by qualified intermediaries for more than one State.

Authorization of appropriations

There is authorized to be appropriated to carry out this Act $250,000,000 for each of fiscal years 2007 through 2011.