[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 655 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 655

     To provide for more accurate valuation of multifamily housing 
properties, and loans for such properties, that are sold at a discount 
   by the Department of Housing and Urban Development to facilitate 
    acquisition of such properties that maintains the properties as 
                          affordable housing.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 24, 2007

Ms. Velazquez introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
     To provide for more accurate valuation of multifamily housing 
properties, and loans for such properties, that are sold at a discount 
   by the Department of Housing and Urban Development to facilitate 
    acquisition of such properties that maintains the properties as 
                          affordable housing.

    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 ``Pathway to Preservation Act of 
2007''.

SEC. 2. CONGRESSIONAL FINDINGS.

    The Congress finds that--
            (1) there is a great need to provide communities with tools 
        to preserve affordable housing;
            (2) a significant amount of the affordable housing 
        inventory in the United States has already been lost and a 
        large portion is at risk of being removed;
            (3) approximately 200,000 subsidized rental units are lost 
        annually;
            (4) in the case of disposition of properties owned or held 
        by the Department of Housing and Urban Development, the 
        statutory right of first refusal afforded to units of local 
        government has been effective in preserving such buildings for 
        use as affordable housing;
            (5) failing to take into account the physical condition of 
        a property when determining the sale price in a HUD property 
        sale inhibits local preservation efforts; and
            (6) the Department of Housing and Urban Development should 
        use standard industry appraisal practices when determining the 
        sale price of properties.

SEC. 3. VALUATION OF PHYSICALLY DISTRESSED PROPERTIES SOLD BY HUD IN 
              DISCOUNT SALES.

    Section 2001 of the Deficit Reduction Act of 2005 (Public Law 109-
171; 120 Stat. 7; 12 U.S.C. 1701z-11 note) is amended--
            (1) in paragraph (4), by striking ``without taking into 
        account any affordability requirements'' and inserting the 
        following: ``as determined using industry standard appraisal 
        practices, including consideration of the cost of repairs 
        needed for the property subject to the loan to comply with 
        minimum safety and building standards and the cost of 
        maintaining the affordability restrictions applicable under the 
        original loan or grant for the property''; and
            (2) in paragraph (7), by striking ``without taking into 
        account any affordability requirements'' and inserting the 
        following: ``as determined using industry standard appraisal 
        practices, including consideration of the cost of repairs 
        needed for the property to comply with minimum safety and 
        building standards and the cost of maintaining the 
        affordability restrictions applicable under the original loan 
        or grant for the property''.
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