[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3965 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3965

 To extend the Mark-to-Market program of the Department of Housing and 
               Urban Development, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 25, 2007

 Ms. Waters (for herself, Mr. Frank of Massachusetts, and Ms. Pryce of 
    Ohio) introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
 To extend the Mark-to-Market program of the Department of Housing and 
               Urban Development, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Mark-to-Market 
Extension and Enhancement Act of 2007''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.
Sec. 4. Extension of Mark-to-Market program.
Sec. 5. Exception rents.
Sec. 6. Otherwise eligible projects.
Sec. 7. Disaster-damaged eligible projects.
Sec. 8. Period of eligibility for nonprofit debt relief.
Sec. 9. Correcting harm caused by late subsidy payments.
Sec. 10. Effective date.

SEC. 2. PURPOSES.

    The purpose of this Act is to--
            (1) continue the progress of the Multifamily Assisted 
        Housing Reform and Affordability Act of 1997, as amended by the 
        Mark-To-Market Extension Act of 2001;
            (2) expand eligibility for Mark-to-Market restructuring so 
        as to further the preservation of affordable housing in a cost-
        effective manner; and
            (3) provide for the preservation and rehabilitation of 
        projects damaged by Hurricanes Katrina, Rita, and Wilma, or by 
        other natural disasters.

SEC. 3. DEFINITIONS.

    Section 512 of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1473f note) is amended by adding 
at the end the following:
            ``(20) Disaster-damaged eligible project.--
                    ``(A) In general.--The term `disaster-damaged 
                eligible project' means an otherwise eligible 
                multifamily housing project--
                            ``(i) that is located in a county that was 
                        designated a major disaster area on or after 
                        January 1, 2005, by the President pursuant to 
                        title IV of the Robert T. Stafford Disaster 
                        Relief and Emergency Assistance Act (42 U.S.C. 
                        5121 et seq.);
                            ``(ii) whose owner carried casualty and 
                        liability insurance covering such project in an 
                        amount required by the Secretary;
                            ``(iii) that suffered damages not covered 
                        by such insurance that the Secretary determines 
                        is likely to exceed $5,000 per unit in 
                        connection with the natural disaster that was 
                        the subject of the designation described in 
                        subparagraph (A); and
                            ``(iv) whose owner requests restructuring 
                        of the project not later than 2 years after the 
                        date that such damage occurred.
                    ``(B) Rule of construction.--A disaster-damaged 
                eligible project shall be eligible for amounts under 
                this Act without regard to the relationship between 
                rent levels for the assisted units in such project and 
                comparable rents for the relevant market area.''.

SEC. 4. EXTENSION OF MARK-TO-MARKET PROGRAM.

    Section 579 of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1473f note) is amended by striking 
``October 1, 2011'' each place such term appears and inserting 
``October 1, 2012''.

SEC. 5. EXCEPTION RENTS.

    Section 514(g)(2) of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1473f note) is amended--
            (1) by inserting ``disaster-damaged eligible projects and'' 
        after ``waive this limit''; and
            (2) by striking ``five percent'' and inserting ``9 
        percent''.

SEC. 6. OTHERWISE ELIGIBLE PROJECTS.

    Section 514 of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1473f note) is amended by adding 
at the end the following:
    ``(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. 7. DISASTER-DAMAGED ELIGIBLE PROJECTS.

    (a) Market Rent Determinations.--Section 514(g)(1)(B) of the 
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 
U.S.C. 1473f note) is amended by striking ``determined, are equal'' and 
inserting the following: ``determined--
                            ``(i) with respect to a disaster-damaged 
                        eligible 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. 1473f 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. 8. 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. 1473f note) is amended by adding 
at the end the following: ``If such purchaser acquires such project 
subsequent to the date of recordation of the affordability agreement 
described in section 514(e)(6)--
            ``(1) such purchaser shall acquire such project on or 
        before the later of--
                    ``(A) 5 years after the date of recordation of the 
                affordability agreement; or
                    ``(B) 2 years after the date of enactment of the 
                Mark-to-Market Extension and Enhancement Act of 2007; 
                and
            ``(2) the Secretary shall have received, and determined 
        acceptable, such purchaser's application for modification, 
        assignment, or forgiveness prior to the acquisition of the 
        project by such purchaser.''.

SEC. 9. CORRECTING HARM CAUSED BY LATE SUBSIDY PAYMENTS.

    Section 8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f) is amended by adding at the end the following new subsection:
    ``(ff) Late Payments.--
            ``(1) 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.
            ``(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.''.

SEC. 10. EFFECTIVE DATE.

    This Act, and the amendments made by this Act, shall take effect on 
the earlier of--
            (1) the date of enactment of this Act; or
            (2) September 30, 2008.
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