110 HR 655 IH: Pathway to Preservation Act of U.S. House of Representatives 2007-01-24 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 1st Session H. R. 655 IN THE HOUSE OF REPRESENTATIVES January 24, 2007 Ms. Velázquez 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.

1.

Short title

This Act may be cited as the Pathway to Preservation Act of 2007.

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.

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.