1.Short title and table of
contents
(a)This Act may be cited
as the Housing Preservation and Tenant
Protection Act of 2010
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title and table of contents.
Sec. 2. Implementation.
Sec. 3. Budget treatment.
Title I—Preservation of federally financed and State-financed
affordable housing at risk of conversion to market-rate housing
Sec. 101. Conversion of rent supplement and RAP contracts to
project-based rental assistance under section 8.
Sec. 102. Preservation of properties with expiring use
restrictions.
Sec. 103. Enhanced voucher assistance and preservation
project-based section 8 assistance for State-financed affordable
housing.
Sec. 104. Project-based preservation assistance.
Sec. 105. Preservation of State-financed affordable
housing.
Sec. 106. Preservation exchange program.
Sec. 107. Federal first right of refusal.
Sec. 108. Amendment to Low-Income Housing Preservation and
Resident Homeownership Act of 1990.
Sec. 109. Preservation of HUD-held and HUD-owned
buildings.
Sec. 110. Authority for HUD to assign flexible subsidy
loans.
Sec. 111. Use of existing section 8 funds to preserve and
revitalize affordable housing.
Sec. 112. Authority for Ginnie Mae to securitize FHA
risk-sharing mortgages.
Title II—Restoration of Housing at Risk of Loss Due to
Deterioration
Sec. 201. Authority to transfer rental assistance to other
properties.
Sec. 202. Building transfers: requirements for purchasers of
FHA insured projects and section 8 projects.
Sec. 203. Use of interest reduction payments for rehabilitation
grants.
Sec. 204. Clarification of budget-based rent increases for
rehabilitated projects.
Sec. 205. Interest reduction payments for section 236 projects
experiencing a reduction of units.
Title III—Protection of Residents
Sec. 301. Tenant protection voucher to replace lost subsidized
units on 1-for-1 basis.
Sec. 302. Maintenance of housing.
Sec. 303. Resident enforcement of public housing agency or
project owner agreements with HUD.
Sec. 304. Resident access to building information.
Title IV—Preservation of troubled projects facing
foreclosure
Sec. 401. Maintaining affordability through escrowing of rental
assistance.
Sec. 402. Multifamily housing mortgage foreclosure.
Sec. 403. Building acquisition: valuation of physically
distressed properties sold by HUD.
Sec. 404. Investment through up-front grants from General
Insurance Fund.
Sec. 405. Maintaining project-based assistance for projects
disposed of by HUD.
Sec. 406. Correcting harm caused by late subsidy
payments.
Title V—Incentives under MAHRA for owners to maintain housing
affordability
Sec. 501. Extension of mark-to-market program.
Sec. 502. Maintaining affordability in preservation project
transactions.
Sec. 503. Encouraging continued participation in assisted
housing programs.
Sec. 504. Prepayment of FHA mortgages on multifamily
housing.
Sec. 505. Period of eligibility for nonprofit debt
relief.
Sec. 506. Acquisition of restructured projects by nonprofit
organizations.
Sec. 507. Rent adjustments upon subsequent renewals of section
8 contracts.
Sec. 508. Budget-based rent adjustments.
Sec. 509. Independent appraisal requirement in cases of
divergent rent studies.
Sec. 510. Extension of housing assistance payment
contract.
Sec. 511. Otherwise eligible projects.
Sec. 512. Exception rents.
Sec. 513. Disaster-damaged eligible projects.
Sec. 514. Funding for tenant and other participation and
capacity building.
Title VI—Preservation database
Sec. 601. Preservation database.
Title VII—Section 202 Supportive Housing for the
Elderly
Sec. 701. Short title and table of contents.
Subtitle A—New construction reforms
Sec. 711. Project rental assistance.
Sec. 712. Selection criteria.
Sec. 713. Development cost limitations.
Sec. 714. Owner deposits.
Sec. 715. Definition of private nonprofit
organization.
Sec. 716. Preferences for homeless elderly.
Sec. 717. Nonmetropolitan allocation.
Subtitle B—Refinancing
Sec. 721. Approval of prepayment of debt.
Sec. 722. Sources of refinancing.
Sec. 723. Use of unexpended amounts.
Sec. 724. Use of project residual receipts.
Sec. 725. Additional provisions.
Subtitle C—Assisted living facilities
Sec. 731. Definition of assisted living facility.
Sec. 732. Monthly assistance payment under rental
assistance.
Subtitle D—National Senior Housing Clearinghouse
Sec. 741. National senior housing clearinghouse.
Title VIII—Rural housing preservation
Sec. 801. Short title.
Sec. 802. Preservation of multifamily housing.
Sec. 803. Rural preservation and rural tenant protection
vouchers.
Sec. 804. Tenant participation.
Sec. 805. Priority for financing.
Sec. 806. Conforming amendment.
Sec. 807. Regulations.
2.The Secretary of Housing and Urban
Development and the Secretary of Agriculture, as applicable, shall by notice
establish any additional requirements that may be necessary to immediately,
except as specifically provided otherwise, carry out the provisions of this
Act. Such notice shall take effect upon issuance.
3.The budgetary
effects of this Act, for the purpose of complying with the Statutory
Pay-As-You-Go Act of 2010, shall be determined by reference to the latest
statement titled Budgetary Effects of PAYGO Legislation
for this
Act, submitted for printing in the Congressional Record by the Chairman of the
Committee on the Budget of the House of Representatives, provided that such
statement has been submitted prior to the vote on passage.
<enum>I</enum><header>Preservation of
federally financed and State-financed affordable housing at risk of conversion
to market-rate housing</header>
<section id="H04CA20038DD146139CFE2ADABD1091B2"><enum>101.</enum><header>Conversion of
rent supplement and RAP contracts to project-based rental assistance under
section 8</header>
<subsection id="HAA7A3C5EB9BD4A2389410E1BD0DF3BEB"><enum>(a)</enum><header>Conversion</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law
and subject to the availability of appropriations, the Secretary of Housing and
Urban Development shall, at the request of a project owner with a contract
under section 101 of the Housing and Urban Development Act of 1965 (12 U.S.C.
1701s) or a contract under section 236(f)(2) of the National Housing Act (12
U.S.C. 1715z–1(f)(2)), submitted during the 12-month period beginning on the
date of the enactment of this Act, convert such contract to project-based
assistance under section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f) (in this section referred to as <quote>section 8</quote>).</text>
</subsection><subsection id="H1898FA1B88484A26878CB0917BC606F7"><enum>(b)</enum><header>Terms</header><text>A
contract for project-based rental assistance under section 8 pursuant to a
conversion under subsection (a) of this section shall—</text>
<paragraph id="H2ED3DA31AC6B4FC5824403DB8061D404"><enum>(1)</enum><text>be subject to the
availability of amounts provided in appropriations Act; and</text>
</paragraph><paragraph id="HB072F4ED58804B38AA76E3D7028634EF"><enum>(2)</enum><text>have a term that
is not shorter in duration than the remaining term of the contract that is
converted, pursuant to subsection (a) of this section, to project-based
assistance under such section 8, plus an additional term of not less than 5
years, and up to 30 years at the request of the owner.</text>
</paragraph></subsection><subsection id="H8B71560135DB49B2B2BAD2F9EA5D9726"><enum>(c)</enum><header>Loan management
assistance contracts</header><text display-inline="yes-display-inline">After
the initial year of a project-based rental assistance contract under section 8
for loan management assistance, the contract may, at the option of the project
owner and subject to the conditions specified in section 524(a)(4)(D) of the
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437f note), be converted to a renewal contract under such section 524, subject
to the availability of appropriations, if the project owner agrees to a
contract term that extends 10 years beyond the remaining term of the assistance
contract.</text>
</subsection><subsection id="H61287C2DCCCD4E9ABB8387B751F60DEF"><enum>(d)</enum><header>Use
restrictions</header><text display-inline="yes-display-inline">Notwithstanding
any other provision of law, conversion of a contract pursuant to subsection (a)
shall not diminish the affordability restrictions or number of assisted units
applicable to the property that is subject to the contract converted.</text>
</subsection><subsection id="HEA52841EA2DE4C4DA37DEDD2F0C1AC37"><enum>(e)</enum><header>Use of
recaptured amounts</header><text display-inline="yes-display-inline">Any budget
authority recaptured as a result of conversion of any contract pursuant to
subsection (a) shall be used by the Secretary of Housing and Urban Development
for making assistance payments with respect to the initial 12-month period of
the contract for project-based rental assistance under section 8 resulting from
such conversion.</text>
</subsection></section><section id="H5712A5605B954EB888F0E3E3BA494AFC"><enum>102.</enum><header>Preservation of
properties with expiring use restrictions</header>
<subsection id="H0C29B4DB05024BA3813FC0E4D2CEA1A1"><enum>(a)</enum><header>Federal
assistance and extension of affordability requirements</header>
<paragraph id="H4A1586F0765D4D5694116D7E929E86C8"><enum>(1)</enum><header>Provision of
Assistance</header>
<subparagraph id="H20C4AF6F132C4515BCEE137EF00865C1"><enum>(A)</enum><header>Authority</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development may use amounts made available under paragraph (5) to provide
assistance under this section with respect to covered multifamily housing
properties.</text>
</subparagraph><subparagraph id="HF90E72116164486AAF3BEF3155919EA6"><enum>(B)</enum><header>Applications and
selection criteria</header><text>The Secretary shall provide for owners of
covered multifamily housing properties to submit applications for assistance
under this section and shall establish criteria for selection of properties to
receive assistance that shall take into consideration the need of a property
for such assistance.</text>
</subparagraph></paragraph><paragraph id="H102C876E50CD421C91EBA36C6B0FD0BF"><enum>(2)</enum><header>Rehabilitation
assistance</header><text>The Secretary may provide a grant or loan under this
paragraph to the owner or purchaser of the property, subject to the following
requirements:</text>
<subparagraph id="H4BCEA60F5F3E4DA787459BC04A755738"><enum>(A)</enum><header>Purpose</header><text>The
assistance shall be provided for the purpose of rehabilitating the property for
continued use as housing affordable to low- and moderate-income
families.</text>
</subparagraph><subparagraph id="H77C02CC86B554967B4514077DB5F4AA9"><enum>(B)</enum><header>Eligible
use</header><text>Amounts from the grant or loan may be used only for payment
of nonrecurring maintenance and capital improvements for the property, and
associated transaction costs, under such terms and conditions as are determined
by the Secretary.</text>
</subparagraph><subparagraph id="HE4AA7962EC0344218B621160B9DEBA7D"><enum>(C)</enum><header>Per unit amount
limitations</header><text>The amount from a grant or loan used with respect to
a dwelling unit in the property may not exceed the per unit dollar amount
limitation as the Secretary shall establish for purposes of this paragraph for
dwelling units of the applicable size.</text>
</subparagraph><subparagraph id="H07726245CA7B416E955802DC2DD1FA2D"><enum>(D)</enum><header>Required
extension of affordability restrictions</header><text>The Secretary may provide
assistance under this paragraph for a property only if the owner of the
property enters into such binding commitments as the Secretary may require,
which shall be applicable to any subsequent owner, to ensure that the property
will be operated, for a period of not less than 30 years that begins on the
termination date for the property, in accordance with all affordability
restrictions that are applicable to the property under the multifamily housing
subsidy program under which the property is assisted before the termination
date, with flexibility to recognize more significant restrictions accompanying
other subsidies for the property.</text>
</subparagraph></paragraph><paragraph id="HA4437A54C04F4A7D8FD8D9466226A8D9"><enum>(3)</enum><header>Assistance for
purchase</header><text>The Secretary may provide a grant or loan under this
paragraph to an eligible organization under subparagraph (B) for acquisition of
a covered multifamily housing property, subject to the following
requirements:</text>
<subparagraph id="HE2479BAACF1348B9A618607C3972E23E"><enum>(A)</enum><header>Purpose</header><text>The
assistance shall be provided for the purpose of facilitating acquisition of
properties by eligible organizations whose missions are to provide affordable
housing to low- and moderate-income families.</text>
</subparagraph><subparagraph id="H5A8A9F47C84043BA9C65B6E9952CAD92"><enum>(B)</enum><header>Eligible
organizations</header><text>A grant or loan under this paragraph may be made
only to a nonprofit organization, a for-profit organization, or a public
housing agency (as such term is defined in section 3(b) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)) that provides such assurances as the
Secretary may require that the organization—</text>
<clause id="H5E7ACF7AAA704E35B18F8D65CB821D7F"><enum>(i)</enum><text>will
acquire the property; and</text>
</clause><clause id="HC8DD0B218B6C45089141A565F67F93E8"><enum>(ii)</enum><text>is
capable of managing the property and related facilities (either directly or
through a contract) for the remaining useful life of the property and related
facilities.</text>
</clause></subparagraph><subparagraph id="H4BC2765B57A142AC992C8C6DD8876114"><enum>(C)</enum><header>Eligible
use</header><text>Amounts from the grant or loan may be used only to cover any
direct costs (other than the purchase price), including transaction costs,
incurred by the eligible organization in purchasing and assuming responsibility
for the property and related facilities involved.</text>
</subparagraph><subparagraph id="H31FA7143C8034A5E90F521FB73C8251A"><enum>(D)</enum><header>Per unit amount
limitations</header><text>The amount from a grant or loan used with respect to
a dwelling unit in the property may not exceed the per unit dollar amount
limitation as the Secretary shall establish for purposes of this paragraph for
dwelling units of the applicable size.</text>
</subparagraph><subparagraph id="HAC7C46035E384015BCAAAE867E534166"><enum>(E)</enum><header>Required
extension of affordability restrictions</header><text>The Secretary may provide
assistance under this paragraph for a property only if the eligible
organization that purchases the property enters into such binding commitments
as the Secretary may require, which shall be applicable to any subsequent
owner, to ensure that the property will be operated, for the remaining useful
life of the property, in accordance with all affordability restrictions that
are applicable to the property under the multifamily housing subsidy program
under which the property is assisted before the termination date.</text>
</subparagraph></paragraph><paragraph id="H857A27C00B8C48EE8B103B2AF10450F9"><enum>(4)</enum><header>Low- and
moderate-income affordability assistance</header><text display-inline="yes-display-inline">The Secretary may provide new project-based
assistance under section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f) for currently unassisted units in covered multifamily housing properties
occupied by tenants otherwise eligible for such assistance, subject to the
following requirements:</text>
<subparagraph id="H6BFFDE45067E40CBB573A58029B70D99"><enum>(A)</enum><header>Purpose</header><text>The
assistance shall be provided for the purpose of maintaining the affordability
of dwelling units in covered multifamily housing properties not currently
provided project-based rental assistance.</text>
</subparagraph><subparagraph id="HA00246B0820F409086B3A504CE9D0A90"><enum>(B)</enum><header>Eligibility</header><text>Assistance
may be made available for a property only if the property—</text>
<clause id="H8CDB449C754E447A99694C3A5C684A16"><enum>(i)</enum><text display-inline="yes-display-inline">is located in an area having a demonstrated
demand for affordable rental housing; or</text>
</clause><clause id="H9D565AAD38E944DC99753A7FBC7F01FF"><enum>(ii)</enum><text display-inline="yes-display-inline">may be subject to rent level increases as
the result of mortgage maturity or termination or as the result of a
recapitalization activity approved by the Secretary or the Secretary of
Agriculture.</text>
</clause></subparagraph><subparagraph id="HA468F5BEA54A41C1B0178D8E885391F3"><enum>(C)</enum><header>Form and
term</header><text display-inline="yes-display-inline">The assistance shall be
in the form of a housing assistance payment contract under such section 8 and
shall be provided for such term as may be agreed to by the Secretary and the
owner of the property. The form of assistance may include an amendment of an
existing assistance contract to cover additional units in the subject
property.</text>
</subparagraph><subparagraph id="H93D7CD0B6D7F4D6A8C77D328EFF72999"><enum>(D)</enum><header>Prevention of
duplicative subsidies</header><text>Assistance may not be provided for any
dwelling unit in a property if such assistance would duplicate other project-
or tenant-based rental assistance of any kind for the dwelling unit from any
source.</text>
</subparagraph><subparagraph id="H9F6B7FFD0CEA4CD7A1F19CB2B70902CE"><enum>(E)</enum><header>Amount and rent
levels</header><text>The Secretary shall determine the amount of annual
assistance provided for a property based on rent levels, for the dwelling units
in the property that are subject to affordability restrictions pursuant to
subparagraph (F), that are equal to the lesser of—</text>
<clause id="H9EB927B800724F86BD1789A1C7679B7A"><enum>(i)</enum><text>comparable market
rents for the market area in which the property is located for dwelling units
of the applicable size; and</text>
</clause><clause id="H1ED4699F6850414582628B4ADDF9DE87"><enum>(ii)</enum><text>150
percent of the fair market rentals established under section 8(c) of the United
States Housing Act of 1937 for the market area in which the property is located
for dwelling units of the applicable size.</text>
</clause></subparagraph><subparagraph id="HA0D0AD0F667641209066DCE7D8E2618A"><enum>(F)</enum><header>Required
extension of affordability restrictions</header><text>The Secretary may provide
assistance under this paragraph for a property only if the owner of the
property enters into such binding commitments as the Secretary may require,
which shall be applicable to any subsequent owner, to ensure that the property
will be operated, for a period not shorter than the term of the assistance
agreed to pursuant to subparagraph (C) or 10 years, whichever is longer, that
begins on the termination date for the property, in accordance with all
affordability restrictions that are applicable to the property under the
multifamily housing subsidy program under which the property is assisted before
the termination date.</text>
</subparagraph></paragraph><paragraph id="H17DFA81E27724E0FBEC54307A78A9F7F"><enum>(5)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated for
assistance under this subsection such sums as may be necessary.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HB08734E95B2B4F8E83F737B374E3A4D6"><enum>(b)</enum><header>Enhanced
vouchers</header>
<paragraph id="H90BF8D6B51364ED6A91FF26D6882AF5D"><enum>(1)</enum><header>Qualification;
election to remain in unit</header><text display-inline="yes-display-inline">Section 8(t)(1) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(B)) is amended—</text>
<subparagraph id="H39C008AB2892466DA0612BF227BFF3F6"><enum>(A)</enum><text>in the matter
preceding subparagraph (A), by inserting <quote>and shall not require that the
family requalify under the selection standards for a public housing agency in
order to be eligible for such assistance</quote> before the comma; and</text>
</subparagraph><subparagraph id="H8ACE17D3E46D4AE6932E1AD6B098989B"><enum>(B)</enum><text>by striking
subparagraph (B) and inserting the following new subparagraph:</text>
<quoted-block id="HCECF87C01BB5425B9CF900F3EE5A7FB3" style="OLC">
<subparagraph id="H89618586F17047AEAE8AF549793B8C3D"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="HDE3366065C98418DB3B5E6A42B4EC4FA"><enum>(i)</enum><text>the assisted family may
elect to remain in the same project in which the family was residing on the
date of the eligibility event for the project regardless of unit and family
size standards normally used by the administering public housing agency (except
that tenants may be required to move to units of appropriate size if available
on the premises), and the owner of the unit shall accept the enhanced voucher
and terminate the tenancy only for serious or repeated violation of the terms
and conditions of the lease or for violation of applicable law; and</text>
</clause><clause id="HCC3C065E13AE48469342CAB09A0C553B" indent="up1"><enum>(ii)</enum><text>if, during any period the family
makes such an election and continues to so reside, the rent for the dwelling
unit of the family in such project exceeds the applicable payment standard
established pursuant to subsection (o) for the unit, the amount of rental
assistance provided on behalf of the family shall be determined using a payment
standard that is equal to the rent for the dwelling unit (as such rent may be
increased from time-to-time), subject to paragraph (10)(A) of subsection (o)
and any other reasonable limit prescribed by the Secretary, except that a limit
shall not be considered reasonable for purposes of this subparagraph if it
adversely affects such assisted
families;</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HC849C52EA42D422A990D6E7BADED707A"><enum>(2)</enum><header>Provision to
residents of assisted multifamily projects upon termination date</header>
<subparagraph id="HED73841680B7484E855B89B012418011"><enum>(A)</enum><header>Requirement</header><text display-inline="yes-display-inline">Upon the termination date for each assisted
multifamily housing property, to the extent that amounts for assistance under
this paragraph are provided in advance in appropriation Acts, the Secretary of
Housing and Urban Development shall make enhanced voucher assistance under
section 8(t) of the United States Housing Act of 1937 (42 U.S.C. 1437f(t))
available on behalf of each family described in subparagraph (B). The Secretary
shall make such assistance available no later than 60 days before the
termination date on behalf of each family described in subparagraph (B) that
elects to move from the property.</text>
</subparagraph><subparagraph id="H3689E3EA392B4B92AB026EFE21867F0F"><enum>(B)</enum><header>Eligibility</header><text>A
family described in this subparagraph is a family who—</text>
<clause id="H19DD5A38200444B78CFD9995A411104A"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="H6552FD0E68DA44479C5CB13C457388C6"><enum>(I)</enum><text display-inline="yes-display-inline">is a low-income family (as such term is
defined in section 3(b) of the United States Housing Act of 1937 (42 U.S.C.
1437a(b))); or</text>
</subclause><subclause id="H622F257623B34569A760E4980CEEB662" indent="up1"><enum>(II)</enum><text>is a moderate-income family that
is—</text>
<item id="HACF37B61A32B476591CA3CACAF7FECCA"><enum>(aa)</enum><text display-inline="yes-display-inline">an elderly family (as such term is used in
section 3(b) of the United States Housing Act of 1937 (42 U.S.C.
1437a(b)));</text>
</item><item id="H4D0D89638DA64D5FA018D0D4735A5744"><enum>(bb)</enum><text>a disabled family (as such term is
used in section 3(b) of the United States Housing Act of 1937 (42 U.S.C.
1437a(b))); or</text>
</item><item id="H93DE2F9A866641BF9649541C314D3455"><enum>(cc)</enum><text>residing in a low-vacancy area (as
determined by the Secretary); and</text>
</item></subclause></clause><clause id="HF1C54A179A6D4F74B8ADD54938B39BB1"><enum>(ii)</enum><text display-inline="yes-display-inline">is residing in—</text>
<subclause id="H498C2527879944E9AE5003F01127151D"><enum>(I)</enum><text>a
property that immediately before such termination date was an assisted
multifamily housing property; and</text>
</subclause><subclause id="H788606C8B39A41B388B0665978C2E318"><enum>(II)</enum><text>a dwelling unit
that is not assisted after such termination date under section 8 of the United
States Housing Act of 1937.</text>
</subclause></clause></subparagraph><subparagraph id="H8A60FE7633854A7E91F2BF4F5CD66610"><enum>(C)</enum><header>Eligibility
event</header><text display-inline="yes-display-inline">Section 8(t)(2) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(t)(2)) is amended by adding
after the period at the end the following new sentence:
<quote>Such term includes, with respect to an
assisted multifamily housing property (as such term is defined in section
102(f) of the <short-title>Housing Preservation and Tenant
Protection Act of 2010</short-title>), the occurrence of the termination date
(as such term is defined in such section 102(f)) for the
property.</quote></text>
</subparagraph></paragraph><paragraph id="H6E3842E476C941E7B1CDD9F5B19BC5C1"><enum>(3)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development shall issue regulations to implement the amendments made by this
subsection not later than the expiration of the 6-month period beginning on the
date of enactment of this Act, and such regulations shall require that the
provisions of such amendments relating to termination of tenancy shall be
contained in the lease.</text>
</paragraph></subsection><subsection id="H4CABC3361EAE4FF8A63840655FA617F6"><enum>(c)</enum><header>Notification
requirement</header>
<paragraph id="H227C2A98D8AE4F16AAA8C256F778BB7B"><enum>(1)</enum><header>Timing</header><text>An
owner of an assisted multifamily housing property, including any owner of a
property with rent limitations that expire concurrently with the expiration of
the term of the mortgage for the property, who intends to terminate or alter
the affordability restrictions for the property on or after the termination
date for the property shall, not less than 12 months before such termination
date, provide written notice of such termination date to the Secretary of
Housing and Urban Development, the chief executive officer of the State and the
unit of general local government (as such term is defined in section 104 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704)) in which
the property is located, and each tenant of the property.</text>
</paragraph><paragraph id="H6985982E045A4EE1984AABE8D4CA9AE0"><enum>(2)</enum><header>Contents</header><text>The
notice shall include—</text>
<subparagraph id="H7D5AF4C192B9479B9D0F026881D22865"><enum>(A)</enum><text>a statement
specifying any changes in the terms or applicability of the affordability
restrictions for the property that the owner intends to make on or after the
termination date for the property;</text>
</subparagraph><subparagraph id="HBFB46631915E4FA5BDAD8F968E094D42"><enum>(B)</enum><text>a statement that,
if the owner proceeds with such intended changes and the Congress makes funds
available, the Department of Housing and Urban Development will provide
tenant-based rental assistance to all eligible residents, enabling them to
choose the place they wish to rent, which may include the right to remain in
the dwelling unit in which they currently reside; and</text>
</subparagraph><subparagraph id="H73A0D4F2B2A242BC8086C1B1B31EFADA"><enum>(C)</enum><text>a statement that,
if the Congress makes funds available, the owner and the Secretary may yet
agree to renewal of assistance and affordability restrictions for the property,
thereby obviating the need for such tenant-based rental assistance.</text>
</subparagraph></paragraph><paragraph id="H5783C7EAFBEA4BABB19B5195AD93D8CD"><enum>(3)</enum><header>Failure to
Provide Notice</header><text>If the owner does not provide the notice required
under this subsection, notwithstanding any inapplicability of the affordability
restrictions for the property, the owner may not evict the tenants or increase
the tenants’ rent payments until such time as the owner has provided the notice
and the 12-month period beginning upon the provision of such notice has
elapsed.</text>
</paragraph><paragraph id="H6DCC806D6ED74F16A0EEE3F0DF14D830"><enum>(4)</enum><header>Other
Terms</header><text display-inline="yes-display-inline">The Secretary may, to
preserve affordable housing or protect tenants in such properties, establish
additional notice requirements.</text>
</paragraph><paragraph id="HB5D92A57816C41F0A2C0ECBEA6998E7C"><enum>(5)</enum><header>Savings
Provision</header><text>This subsection may not be construed to annul, alter,
affect, or preempt any provision of the law of a State or political subdivision
thereof requiring notice regarding termination of assistance or affordability
restrictions with respect to a multifamily housing project or to exempt any
person from complying with such a law.</text>
</paragraph></subsection><subsection id="H9AEEF67CD2A142809F25FDF0B811F8B"><enum>(d)</enum><header>Projects with
common use agreements</header><text display-inline="yes-display-inline">Notwithstanding any provision of the
Emergency Low Income Housing Preservation Act of 1987 (12 U.S.C. 1715l note),
if two covered multifamily housing properties are encumbered by use agreements
that were recorded in land records on the same date pursuant to such Act and
both such properties are subject to a single mortgage, both such use agreements
shall be deemed to expire on the earlier of the expiration dates stated in such
use agreements, but only if the owner of the properties agrees to maintain any
project-based rental assistance for both such properties for the 30-year period
beginning upon such common expiration date. At the request of the owner, the
Secretary shall establish contract rents for such project-based assistance at
levels for comparable properties in the same market area.</text>
</subsection><subsection id="H817FB9B5275D428E93912455DFF17D14"><enum>(e)</enum><header>Annual and
semiannual reviews</header>
<paragraph id="HFA5A5983D11B43C7A84EA93A262A8965"><enum>(1)</enum><header>Annual
Review</header><text>To ensure compliance with this section, the Secretary
shall conduct an annual review on actions taken under this section and the
status of covered multifamily housing properties and submit a report to the
Congress regarding each such annual review.</text>
</paragraph><paragraph id="H9E87054107F54C6E987160940DD43C67"><enum>(2)</enum><header>Semiannual
Review</header><text>Not less than semiannually during the 2-year period
beginning on the date of the enactment of this Act and not less than annually
thereafter, the Secretary shall submit reports to the Committee on Financial
Services of the House of Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate stating, for such periods, the total number of
assisted multifamily housing properties for which notification has been
provided under subsection (c) during such period, the total number of covered
multifamily housing properties for which assistance has been provided under
subsection (a), and the type or types of such assistance provided.</text>
</paragraph></subsection><subsection commented="no" id="HE234C292F5FB4571BDDCC8F92EFFF0E8"><enum>(f)</enum><header>Definitions</header><text>For
purposes of this section:</text>
<paragraph commented="no" id="HA0AE6DFA9F7E4C67ACE2C5FB0B278A91"><enum>(1)</enum><header>Affordability
restrictions</header><text>The term <quote>affordability restrictions</quote>
means, with respect to a covered multifamily housing property, limits imposed
by regulation, regulatory agreement, or contract on tenant rents, rent
contributions, or income eligibility.</text>
</paragraph><paragraph commented="no" id="HD3FBFB2B0DB742F5AD8F316E69E8C2F2"><enum>(2)</enum><header>Assisted
multifamily housing property</header><text>The term <quote>assisted multifamily
housing property</quote> means a multifamily housing project for which
assistance is provided under a multifamily housing subsidy program.</text>
</paragraph><paragraph commented="no" id="H2E0ED15A3DB6427F81EDA40845905D7F"><enum>(3)</enum><header>Comparable
properties</header><text>The term <quote>comparable properties</quote> means,
with respect to a covered multifamily housing property, properties in the same
market area, where practicable, that—</text>
<subparagraph commented="no" id="H24791C6AEFB1429686C65A86640CBE1F"><enum>(A)</enum><text>are similar to the
covered multifamily housing property as to neighborhood (including risk of
crime), type of location, access, street appeal, age, property size, apartment
mix, physical configuration, property and unit amenities, utilities, and other
relevant characteristics;</text>
</subparagraph><subparagraph commented="no" id="HFF13EC55255246CC9B53E2F44E8E5F7F"><enum>(B)</enum><text>are not receiving
rental assistance of any kind from any source; and</text>
</subparagraph><subparagraph id="H1574C2E2CAF14B139C37A431F10CB92C"><enum>(C)</enum><text display-inline="yes-display-inline">are not subject to affordability
restrictions of any kind.</text>
</subparagraph></paragraph><paragraph commented="no" id="H9EDE0A567E014A83A7B373BCDDC05063"><enum>(4)</enum><header>Covered
multifamily housing property</header><text>The term <quote>covered multifamily
housing property</quote> means an assisted multifamily housing property for
which the termination date will occur within the 10-year period beginning on
the date of the enactment of this Act.</text>
</paragraph><paragraph commented="no" id="HD2A62A0E45E24E09BDEA19A222BC2F5F"><enum>(5)</enum><header>Low-income
family</header><text>The term <quote>low-income family</quote> has the meaning
given such term in section 3(b) of the United States Housing Act of 1937 (42
U.S.C. 1437a(b)).</text>
</paragraph><paragraph commented="no" id="H37B1EEA7D379414C9F05FECF03450A7B"><enum>(6)</enum><header>Moderate-income
family</header><text>The term <quote>moderate-income family</quote> has the
meaning given such term in section 229 of the Low-Income Housing Preservation
and Resident Homeownership Act of 1992 (12 U.S.C. 4119).</text>
</paragraph><paragraph commented="no" id="HCFCB183B54A54C15970BAB017CA902AF"><enum>(7)</enum><header>Multifamily
housing subsidy program</header><text>The term <quote>multifamily housing
subsidy program</quote> means—</text>
<subparagraph id="HB05FF0EC615E45C38E536725EDD49C63"><enum>(A)</enum><text display-inline="yes-display-inline">the rent supplement program under section
101 of the Housing and Urban Development Act of 1965 (12 U.S.C. 1701s);</text>
</subparagraph><subparagraph commented="no" id="H93E016EFFA3C4D619B0BA18EE6E2BD15"><enum>(B)</enum><text>the below-market
interest rate mortgage insurance program under section 221(d)(3) of the
National Housing Act (12 U.S.C. 1715l(d)(3));</text>
</subparagraph><subparagraph id="H6917D2B161B04A4A98A2B702501A6705"><enum>(C)</enum><text display-inline="yes-display-inline">a contract under section 236(f)(2) of the
National Housing Act (12 U.S.C. 1715z–1(f)(2));</text>
</subparagraph><subparagraph commented="no" id="HFBEA3F5EA0354F18BA3E6925A7C947EE"><enum>(D)</enum><text>the program for
interest reduction payments under section 236 of the National Housing Act (12
U.S.C. 1715z–1) and any comparable State program providing for interest
reduction payments;</text>
</subparagraph><subparagraph id="H2FEC8B3F14ED483786F1EDEB232E7093"><enum>(E)</enum><text>the program for
supportive housing for the elderly under section 202 of the Housing Act of 1959
(12 U.S.C. 1701q), including assistance under such section as in effect before
the enactment of the Cranston-Gonzalez National Affordable Housing Act;</text>
</subparagraph><subparagraph id="H8217AEB195664D6E93FD26A8783A9375"><enum>(F)</enum><text>the program for
rural rental housing under section 515 of the Housing Act of 1949 (42 U.S.C.
1485); and</text>
</subparagraph><subparagraph id="HF20804CE2D214767B5BF613E1003586A"><enum>(G)</enum><text display-inline="yes-display-inline">any other mortgage insurance program
provided under the National Housing Act for which the insured property is
subject to budget-based rent restrictions.</text>
</subparagraph></paragraph><paragraph commented="no" id="H243B45AC1C0045B59158A9FD15252346"><enum>(8)</enum><header>Nonprofit
organization</header><text display-inline="yes-display-inline">The term
<quote>nonprofit organization</quote> has the meaning, with respect to housing
assisted under this section, given such term in section 202(k) of the Housing
Act of 1959 (12 U.S.C. 1701q(k)).</text>
</paragraph><paragraph id="H908CEE8BB795432293AC6005901671D9"><enum>(9)</enum><header>Secretary</header><text>The
term <quote>Secretary</quote> means the Secretary of Housing and Urban
Development.</text>
</paragraph><paragraph commented="no" id="HB39202FE8E0A4173A07D596AD8FD0645"><enum>(10)</enum><header>Termination
date</header><text>The term <quote>termination date</quote> means, with respect
to an assisted or a covered multifamily housing property, the date that—</text>
<subparagraph id="H86F02B1993E448D39063CFEDA40783CD"><enum>(A)</enum><text display-inline="yes-display-inline">the mortgage, loan, or capital advance for
the property matures or expires and the affordability restrictions applicable
to the property because of assistance for the property pursuant to a
multifamily housing subsidy program terminate with respect to the
property;</text>
</subparagraph><subparagraph commented="no" id="HDF7E887F7D9C4544B503543AE1EEBCF7"><enum>(B)</enum><text display-inline="yes-display-inline">an assistance contract for the property
that is not renewed, terminates, or expires;</text>
</subparagraph><subparagraph id="H2E18AAE9E7BA4CFF818347B6EA661EBA"><enum>(C)</enum><text>in the case of a
property that is not eligible low-income housing, as such term is defined in
section 229 of the Low-Income Housing Preservation and Resident Homeownership
Act of 1990 (12 U.S.C. 4119), the mortgage or loan that covers the property is
prepaid or an insurance contract that covers the property terminates; or</text>
</subparagraph><subparagraph id="H930B98C893904396BA272C12541C4652"><enum>(D)</enum><text>use restrictions
imposed with respect to the property pursuant to the Emergency Low Income
Housing Preservation Act of 1987 expire.</text>
</subparagraph></paragraph></subsection><subsection id="HDF301E1648C945939DC3D6C70B5DF52B"><enum>(g)</enum><header>Regulations</header><text>The
Secretary may issue any regulations necessary to carry out this section.</text>
</subsection></section><section id="H7D1C859E1F5345C4BDF00D74584D30EA"><enum>103.</enum><header>Enhanced
voucher assistance and preservation project-based section 8 assistance for
State-financed affordable housing</header>
<subsection id="HF2EA7ED2B7DF45898785C223F2557BF0"><enum>(a)</enum><header>Enhanced voucher
assistance</header>
<paragraph id="HA1DB4E7954BF465AB19C178CF181DE64"><enum>(1)</enum><header>Requirement</header><text display-inline="yes-display-inline">Upon the prepayment or maturity of a
mortgage for which interest reduction payments have been made through a State
housing program or financed by a State housing finance agency and subsidized by
interest reduction payments made pursuant to section 236 of the National
Housing Act (12 U.S.C. 1715z–1), to the extent that amounts for assistance
under this subsection are provided in advance in appropriation Acts, the
Secretary of Housing and Urban Development shall make enhanced voucher
assistance under section 8(t) of the United States Housing Act of 1937(42
U.S.C. 1437(t)) available on behalf of families described in paragraph
(2).</text>
</paragraph><paragraph id="H6E7F03DA1C264648801268A09C69BA1D"><enum>(2)</enum><header>Eligible
families</header><text display-inline="yes-display-inline">A family described
in this paragraph is a family that—</text>
<subparagraph id="HF3A2F3B019CD484B8A392324A7B7A564"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="H68D8D169C8034B5F8EAC7448FFC442FA"><enum>(i)</enum><text>is a low-income family,
as such term is defined in section 3(b) of the United States Housing Act of
1937 (42 U.S.C. 1437a(b)); or</text>
</clause><clause id="H11C158CF4E1043AB8DAAA28E57FEB402" indent="up1"><enum>(ii)</enum><text>is a moderate-income family that
has an income that is not less than 80 percent, and not greater than 95
percent, of the median income for the area, as determined by the Secretary,
that—</text>
<subclause id="H3A14BE3A68B04784845BFADDA93F789A"><enum>(I)</enum><text>is an elderly family (as such term is
used in section 3(b) of the United States Housing Act of 1937 (42 U.S.C.
1437a(b));</text>
</subclause><subclause id="HB48C4A130E9743CDBED91845F4820EEF"><enum>(II)</enum><text>is a disabled family (as such term is
used in such section 3(b); or</text>
</subclause><subclause id="H48D067153E4A4C91A7A521254AC6BE0A"><enum>(III)</enum><text>resides in a low-vacancy area, as
determined by the Secretary; and</text>
</subclause></clause></subparagraph><subparagraph id="H3B96CFCC854C4736B8A3B2F0C1675E93"><enum>(B)</enum><text display-inline="yes-display-inline">on such prepayment or maturity date is
residing in dwelling unit of the project that—</text>
<clause id="H0EDB2302174C437C8792302F2ED631B7"><enum>(i)</enum><text>immediately before
such prepayment or maturity was subject to the mortgage for which interest
reduction payments were made and subject to affordability restrictions;
and</text>
</clause><clause id="H8097D2B1E370458EA1DD03B4686618A3"><enum>(ii)</enum><text>is
not assisted after such prepayment or maturity date under section 8 of the
United States Housing Act of 1937, other than as provided under section 8(t)(4)
of the United States Housing Act of 1937 (42 U.S.C. 1437f(t)(4)).</text>
</clause></subparagraph></paragraph><paragraph id="H6306310350134F4B9AF5BDC7C6C69E47"><enum>(3)</enum><header>Eligibility
event</header><text>Paragraph (2) of section 8(t) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(t)(2)), as amended by the preceding provisions of
this Act, is further amended by adding after the period at the end the
following new sentence: <quote>Such term also includes, with respect to a
multifamily family housing project with a mortgage for which interest reduction
payments have been made through a State housing program or financed by a State
housing finance agency, the prepayment or maturity of such mortgage which
results in eligible residents of such housing project being eligible for
enhanced voucher assistance under this subsection, pursuant to section 103(a)
of the <short-title>Housing Preservation and Tenant
Protection Act of 2010</short-title>.</quote>.</text>
</paragraph></subsection><subsection id="HBDCFD67DABB24C849C71EDB630D6A920"><enum>(b)</enum><header>Preservation
project-Based section 8 assistance</header>
<paragraph id="HEE3B91DCD2EB43BFB658DFFB94936713"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of law, in connection with the prepayment or maturity of a
multifamily housing project mortgage subsidized by interest reduction payments
made through a State housing program or financed by a State housing finance
agency and subsidized by interest reduction payments made pursuant to section
236 of the National Housing Act (12 U.S.C. 1715z–1), to prevent displacement of
residents and to further preservation and affordability of such multifamily
housing project, at the election of the project owner and in lieu of enhanced
voucher assistance under subsection (a) of this section or project-based
voucher assistance under subsections (t)(4) and (o)(13)(N) of section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f), the Secretary of Housing
and Urban Development shall, pursuant to the authority under subsections (a)
and (b) of such section 8, enter an annual contributions contract with the
State housing finance agency to permit the State housing finance agency enter
project-based assistance contract under this subsection covering all units in
the project for which such enhanced or project-based voucher assistance would
otherwise be provided.</text>
</paragraph><paragraph id="H2CCA86D5509F42EDB8FEEA42B9EA7936"><enum>(2)</enum><header>Contract
terms</header><text>Any project-based assistance contract pursuant to this
subsection shall—</text>
<subparagraph id="HA28D2EB64FBC490F89173A529A261509"><enum>(A)</enum><text>be considered for
all purposes a contract entered into under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f);</text>
</subparagraph><subparagraph id="H51F4F7F72A484D679325FAE8626C67C6"><enum>(B)</enum><text>have a term of at
least 20 years;</text>
</subparagraph><subparagraph id="H0393D54D9A2F4B7AB27941E0A5D644E4"><enum>(C)</enum><text>provide such
assistance at rent levels established as provided under section 524 of the
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437f note);</text>
</subparagraph><subparagraph id="H4F380BDCD14043A9B836766A7EC3502E"><enum>(D)</enum><text>be subsequently
renewable at the request of the owner under such section 524;</text>
</subparagraph><subparagraph id="H1B131448AF484D02AE69420143B755B3"><enum>(E)</enum><text>be subject to the
availability of amounts provided in appropriations Acts; and</text>
</subparagraph><subparagraph id="HAE94B1587DEC449B9B33B07AB39F5984"><enum>(F)</enum><text>be subject to such
other terms as the Secretary considers appropriate.</text>
</subparagraph></paragraph><paragraph id="H2213B245291448AEBE23953E17967BC4"><enum>(3)</enum><header>Income
targeting</header><text>To the extent that dwelling units subject to an
assistance contract under this paragraph are occupied by families eligible for
enhanced voucher assistance under section 8(t) of the United States Housing Act
of 1937 (42 U.S.C. 1437f(t)), the units shall be considered to be in compliance
with all income targeting requirements under the United States Housing Act of
1937.</text>
</paragraph><paragraph id="HCE0FD6E5291B465AB9E1DD364E164779"><enum>(4)</enum><header>Tenant
eligibility</header><text display-inline="yes-display-inline">Notwithstanding
any other provision of law, in the multifamily housing project for which
project-based assistance is provided pursuant to this subsection, each eligible
family described in subsection (a)(2) of this section that resides in a
dwelling unit in such project on the date such assistance contract first
becomes effective shall be considered to meet any applicable requirements for
income eligibility and occupancy.</text>
</paragraph><paragraph id="HBEEC3DB6FEED40B9A7C8362DF03AB254"><enum>(5)</enum><header>Contract
administration</header><text>Notwithstanding any other provision of law, any
contract for project-based assistance entered into pursuant to this subsection
shall be administered by the project-based contract administrator of the State
in which the multifamily housing project is located.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H8ADE27DD15D8491A8E795D15FAD8EC3F" section-type="subsequent-section"><enum>104.</enum><header>Project-based
preservation assistance</header>
<subsection id="HD00AB5E426B7463E9CA8C10A0E165449"><enum>(a)</enum><header>Enhanced
vouchers</header><text>Section 8(t) of the United States Housing Act of 1937
(42 U.S.C. 1437f(t)) is amended—</text>
<paragraph id="H562B4A4E252C4F609D497D8F73E0C83F"><enum>(1)</enum><text>by redesignating
paragraph (4) as paragraph (5); and</text>
</paragraph><paragraph id="HD4F368215DB94F87B8021EF3B76F963B"><enum>(2)</enum><text>by inserting after
paragraph (3) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HE2C1EA31ECF5456086CE901F48F2793A" style="OLC">
<paragraph id="H83F4C4FFEA56419BAE5A00E1BE9B2C53"><enum>(4)</enum><header>Project-based
preservation assistance</header>
<subparagraph id="HF4F671208BB84E61BB44408D7BC3EB87"><enum>(A)</enum><header>Authority</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law,
in the case of a multifamily housing project eligible under subparagraph (C),
the Secretary shall, subject to the availability of amounts provided in advance
in appropriation Acts and at the request of the owner of the project, provide
project-based preservation assistance in accordance with this paragraph, in
such form authorized in subparagraph (B) as is requested by the owner, in lieu
of enhanced voucher assistance under this subsection. Such owner of the project
shall agree to accept such project-based preservation assistance for a period
of not less than 20 years: <italic>Provided</italic>, That any renewal contract
during such period is offered on terms and conditions comparable to the
original contract.</text>
</subparagraph><subparagraph id="HA355F8B08D39461B80522D37E23DB9F7"><enum>(B)</enum><header>Forms</header><text>Project-based
preservation assistance provided in accordance with this paragraph shall be in
one of the following forms:</text>
<clause id="H353C549494A64DA480BF9277C28B0BDC"><enum>(i)</enum><header>Project-based
preservation vouchers</header><text>Project-based voucher assistance, which
shall be provided in accordance with subsection (o)(13)(N).</text>
</clause><clause id="H32CDF6DF9CDC41A4B65057D0801D44CC"><enum>(ii)</enum><header>Project-based
assistance</header><text display-inline="yes-display-inline">Project-based
assistance under the terms and conditions in section 524 of the Multifamily
Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note).
In determining the initial rent levels for a contract for project-based
assistance under this subparagraph, the Secretary shall establish initial
contract rents at the comparable market rents for the area (as such term is
defined in section 524(a)(5) of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note)).</text>
</clause></subparagraph><subparagraph id="H786E32DB22484769B61C37998AE847C7"><enum>(C)</enum><header>Eligible
projects</header><text>A multifamily housing project is eligible under this
subparagraph if—</text>
<clause id="HFBA9303A07DB48D59869F70D373D253D"><enum>(i)</enum><subclause commented="no" display-inline="yes-display-inline" id="HC8018E4FAA46485DBAE875136E8C91AF"><enum>(I)</enum><text display-inline="yes-display-inline">an eligibility event for the project
occurs; and</text>
</subclause><subclause id="HAAE9B56DF51E4138BCC33CD4920499A2" indent="up1"><enum>(II)</enum><text display-inline="yes-display-inline">the
project is not a project for which the owner has opted not to renew a contract
for project-based rental assistance under this section; or</text>
</subclause></clause><clause id="H3EA4E9C85EB940D880C0F168E6B4EC24"><enum>(ii)</enum><text display-inline="yes-display-inline">enhanced voucher assistance has already
been provided for the project pursuant to the conditions specified in
subparagraph (F)(ii).</text>
</clause></subparagraph><subparagraph id="H1C54703DCCEE4C59AC4F0A2769E411F3"><enum>(D)</enum><header>Eligible
units</header>
<clause id="HC3CB8AA70C8F4A4CA88890FCEBC9F16C"><enum>(i)</enum><header>Income
eligibility</header><text display-inline="yes-display-inline">Assistance
pursuant to this paragraph may be provided for all dwelling units in a
multifamily housing project for which tenants residing in the project at the
time assistance is initially provided meet income eligibility requirements for
enhanced voucher assistance under this subsection.</text>
</clause><clause id="H7CD849996BDE4E029B7592F1E5B0E353"><enum>(ii)</enum><header>Additional
units</header><text>At the request of the owner of a multifamily housing
project for which assistance pursuant to this paragraph is provided, the
Secretary may approve assistance for additional dwelling units, which may
include units that are vacant at the time of the eligibility event, subject to
a determination by the Secretary that such additional assistance is necessary
or desirable to further the purposes reflected in subparagraph (E).</text>
</clause><clause id="H8FDCBE5ACD394AF3B83FE20BBD0524CB"><enum>(iii)</enum><header>Rent
payments</header><text display-inline="yes-display-inline">Eligible families
residing in a project at the time assistance pursuant to this paragraph is
provided shall be subject to the provisions of subparagraphs (A) and (D) of
paragraph (1) of this subsection. Notwithstanding the preceding sentence, an
eligible family that is a low-income family shall not be required to pay as
rent for a dwelling unit assisted pursuant to this paragraph an amount that
exceeds 30 percent of the family’s adjusted monthly income.</text>
</clause><clause id="H87AAAEB2E5F64B70BD78E15F6CEBB544"><enum>(iv)</enum><header>Income
eligibility</header><text display-inline="yes-display-inline">For purposes of
income targeting requirements under section 16 of the United States Housing Act
of 1937 (42 U.S.C. 1437n), tenants initially assisted under this paragraph
shall not be considered new tenants.</text>
</clause></subparagraph><subparagraph display-inline="no-display-inline" id="H26592EE23C8F47228AF722887B5E75C6"><enum>(E)</enum><header>Required
determinations</header><text display-inline="yes-display-inline">As a condition
of entering into a contract pursuant to this paragraph, the Secretary shall
have determined, pursuant to standards established by the Secretary and before
entering into such contract, that—</text>
<clause id="H7624489875CD453BBAF7284C03E19495"><enum>(i)</enum><text>the housing to be
assisted under the contract is economically viable; and</text>
</clause><clause id="HA9BC052F68C9425689386AA0438F5BFA"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="H366A366F336C4538926F9C52F157B52B"><enum>(I)</enum><text>there is a significant
demand for the housing;</text>
</subclause><subclause id="H14CA6118B7504C6DB7BA7E79A9AC7BD6" indent="up1"><enum>(II)</enum><text>the housing will contribute to a
community revitalization plan or to deconcentrating poverty and expanding
housing and economic opportunities; or</text>
</subclause><subclause id="HD0E08CA3002E466E84A99C3A59FFC8CA" indent="up1"><enum>(III)</enum><text>the continued affordability of the
housing otherwise is an important asset to the community.</text>
</subclause></clause><continuation-text continuation-text-level="subparagraph">The
Secretary may delegate the authority to make the determination under this
subparagraph to the public housing agency or project-based contract
administrator that would administer project-based assistance for such project.
Such public housing agency or project-based contract administrator shall apply
such standards as the Secretary shall establish in making such
determination.</continuation-text></subparagraph><subparagraph id="H5BBEDFB064994CB49660853A6ABBD2E4"><enum>(F)</enum><header>Timing of
request</header>
<clause id="HAFFE20BF5D934273AD9EE14CB93EDDB7"><enum>(i)</enum><header>Projects for
which request is made before eligibility event</header><text display-inline="yes-display-inline">In the case of a project eligible for
assistance under subparagraph (C)(i) that is requested prior to the occurrence
of the eligibility event, a contract for assistance pursuant to this paragraph
shall be provided upon the occurrence of the eligibility event.</text>
</clause><clause id="HF7A26F2A16F9418999E8F1100462C301"><enum>(ii)</enum><header>Request made
after issuance of enhanced vouchers</header><text display-inline="yes-display-inline">In the case of a project eligible for
assistance under subparagraph (C)(ii) that is requested after the issuance of
enhanced voucher assistance for the project, a contract for assistance pursuant
to this paragraph shall be provided only—</text>
<subclause id="H56ACC6BDC1C54E44B146C250C97682A9"><enum>(I)</enum><text>if the eligibility
event for the project occurred before the date of the enactment of the
<short-title>Housing Preservation and Tenant Protection
Act of 2010</short-title> and a request for such assistance is made within 12
months after such date of enactment (or such longer period as the Secretary may
permit to facilitate preservation of the project as affordable housing);</text>
</subclause><subclause id="H695DBA6AD78F46FDBEFA937B1E748BD5"><enum>(II)</enum><text>if the project is
sold or otherwise transferred and the new owner requests such assistance within
12 months (or such longer period as the Secretary may permit to facilitate
preservation of the project as affordable housing) of such purchase; or</text>
</subclause><subclause id="H8581D976A421415EACDF597D659A83B9"><enum>(III)</enum><text>in such other
circumstances as the Secretary may determine are necessary or appropriate to
facilitate preservation of the project as affordable.</text>
</subclause><continuation-text continuation-text-level="clause">Assistance
for projects eligible pursuant to subparagraph (C)(ii) may only be provided as
project-based preservation voucher assistance under subparagraph (B)(i). Such
contract shall cover all dwelling units in the project that are occupied by
tenants receiving enhanced voucher assistance at the time the contract is
effective, plus any additional units as may be approved for the project
pursuant to subparagraph
(D)(ii).</continuation-text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H59F6C95FC483464687AE36303F3E3EEC"><enum>(b)</enum><header>PHA
project-Based voucher assistance</header><text>Paragraph (13) of section 8(o)
of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) is amended by
adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H88C4755DBCCB4FAF9D88CF65005F3960" style="OLC">
<subparagraph id="H513315C472864478B29091CFB1C2EFEE"><enum>(N)</enum><header>Preservation
assistance</header>
<clause id="HE02D4F2E47DE4BF28118D86642D25A34"><enum>(i)</enum><header>Authority</header><text>Project-based
voucher assistance in accordance with this subparagraph shall be provided for
projects eligible for such assistance pursuant to subsection (t)(4).</text>
</clause><clause id="H9A4ABFF132044889BDCCF358B47BFE3F"><enum>(ii)</enum><header>Authority for
higher rents</header><text display-inline="yes-display-inline">At the request
of the owner of a multifamily housing project for a contract for assistance in
accordance with this subparagraph to establish rents at levels above those
permitted by subparagraph (H) of this paragraph, a public housing agency may
request, and the Secretary may approve, higher unit rents if necessary to
preserve housing opportunities that further the purposes of subsection
(t)(4)(E).</text>
</clause><clause id="H367850CC158A4A06BB3205F79A0381D9"><enum>(iii)</enum><header>Projects in
multiple PHA jurisdictions</header><text display-inline="yes-display-inline">If
the Secretary has not entered into a contract with a public housing agency to
provide enhanced voucher assistance under subsection (t) for the project at the
time the owner of a multifamily housing project requests assistance in
accordance with this subparagraph, and the project is located within the
jurisdiction for the program under this subsection of more than one public
housing agency, in determining which agency will administer such assistance,
the Secretary shall—</text>
<subclause id="HEB82CF43072C4526B374A1D2A2AC4FC4"><enum>(I)</enum><text display-inline="yes-display-inline">consider the ratio of the number of
vouchers to be awarded under this subparagraph and of other project-based
vouchers administered under this paragraph to the total number of vouchers
administered by an agency; and</text>
</subclause><subclause id="HE3A87A2551AF4F32A5451EFCC962B76F"><enum>(II)</enum><text>among other
factors, provide preference to an agency for which the total number of
project-based vouchers administered under this paragraph, including vouchers to
be awarded pursuant to this subparagraph, would not exceed 50 percent of the
total number of all vouchers to be administered by the agency after such
award.</text>
</subclause><continuation-text continuation-text-level="clause">The Secretary
shall establish guidelines for determining which agency will administer
assistance if a unit is not located within the jurisdiction of any public
housing agency that administers vouchers.</continuation-text></clause><clause id="HB869601F2DA04E4790552F5A847B8529"><enum>(iv)</enum><header>Inapplicability
of goals</header><text>Subparagraph (C) shall not apply to a housing assistance
payment contract pursuant to this subparagraph.</text>
</clause><clause id="H2D6F629FD7E64DEB879D5C345BFB1C0C"><enum>(v)</enum><header>Disregard of
assistance under percentage limitation</header><text>Amounts provided pursuant
to this subparagraph shall not be considered for purposes of calculating the
limitation under subparagraph (B).</text>
</clause><clause id="HD04DEC72ECEA4929B242B64CDCFD9FC9"><enum>(vi)</enum><header>Inapplicability
of income-mixing requirement</header><text>Subparagraph (D) shall not apply
with respect to a housing assistance payments contract pursuant to this
subparagraph.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H3F3CFB9A93C84E5E8EF0E8D47385030A"><enum>105.</enum><header>Preservation of
State-financed affordable housing</header>
<subsection id="H8A9A47CA935E47ADBDD7B4DCE975D952"><enum>(a)</enum><header>Maximum contract
term</header><text display-inline="yes-display-inline">In the case of a State
housing finance agency that has entered into a housing assistance payments
contract with the owner of a housing project for project-based rental
assistance under section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f), using the November 1975 version of form HUD 52645A of the Department of
Housing and Urban Development, under the Section 8 Housing Assistance Payment
Program for State Housing Finance and Development Agencies, if such contract
provides that the maximum total term of the contract for any dwelling unit
shall not exceed a period terminating on the date of the last payment of
principal due on the permanent financing, the Secretary of Housing and Urban
Development shall treat such provision as providing for a maximum term
extending to the originally scheduled maturity date of the permanent financing,
without regard to any prepayment of such permanent financing.</text>
</subsection><subsection id="H6C1D326CBF8E493D86D7DDB906AEA9AE"><enum>(b)</enum><header>Amendment to
Mark-to-Market provisions</header><text>Section 524 of the Multifamily Assisted
Housing Reform and Affordability Act of 1997 is amended—</text>
<paragraph id="HA36448361AB94AAB8BE51F406C191EE3"><enum>(1)</enum><text>by redesignating
subsection (g) as subsection (i); and</text>
</paragraph><paragraph id="HB67EE427A76B411F91256531AC368D4E"><enum>(2)</enum><text>by inserting after
subsection (f) the following new subsection:</text>
<quoted-block id="H4EF580BDCBC74BD8B8BC8F85670FC9E7" style="OLC">
<subsection id="HCAB185FE7F434E2AAB1C44D95C85D01F"><enum>(g)</enum><header>State housing
agency contracts</header>
<paragraph id="H0766D381A1514C35BA1E40D1BFED839B"><enum>(1)</enum><header>Rent adjustments
for extended contracts</header><text display-inline="yes-display-inline">In the
case of a contract for project-based assistance under section 8 of the United
States Housing Act of 1937 pursuant to the State Housing Agencies program
governed by part 883 of the Secretary’s regulations (24 C.F.R. 883), the
provisions of this section authorizing the increase of rent levels to
comparable market rents shall apply upon the expiration of any contract term,
notwithstanding the renewal provisions of the contract. If, at any time during
the five-year period ending upon the final expiration date of any such
contract, the owner of the housing project assisted under the contract enters
into a binding commitment to renew the contract at the rent levels authorized
under subsection (a)(4)(A) for an additional five-year term beginning upon the
final expiration of the contract, the annual rent adjustment during such
five-year period ending upon such final expiration date may be to such rent
levels.</text>
</paragraph><paragraph id="H2DE56242FA0B4B4E99D547E3512B6F2E"><enum>(2)</enum><header>Projects with
debt financing</header><text>In the case of a contract for project-based
assistance under section 8 for a project with debt financing provided by a
State housing agency or local housing authority, with the approval of the State
housing agency or local authority, the owner may terminate the contract and
enter into a new contract for project-based assistance under this section for a
term of 20 years, subject to the availability of amounts provided by
appropriation Acts, but only if the owner enters into an enforceable commitment
to preserve the affordability of the project for not fewer than 55 years from
the date of such contract, subject to the continued provision of rental
assistance under section 8 or a comparable
program.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection></section><section id="H84E8B56EFF8C44938A38EBE68C9CBE35" section-type="subsequent-section"><enum>106.</enum><header>Preservation
exchange program</header>
<subsection id="HB445142700104276ACD257554DF67658"><enum>(a)</enum><header>Establishment of
program</header><text>The Secretary of Housing and Urban Development shall
carry out a preservation exchange program under this section to provide for the
transfer of preservation projects to purchasers who agree to maintain the
projects for use for affordable housing.</text>
</subsection><subsection id="H40B34FB4CC644FB2A6FE31D29FD12855"><enum>(b)</enum><header>Participation</header>
<paragraph commented="no" id="HAFD9CA6FE10A4B79AAB5AA66536F409A"><enum>(1)</enum><header>Election</header><text display-inline="yes-display-inline">The Secretary shall provide for owners of
preservation projects to elect, in accordance with such procedures as the
Secretary shall establish, to participate in the preservation exchange program
under this section.</text>
</paragraph><paragraph id="H6DD8B6C2D14A41FEA6BE35B2FC3DEC40"><enum>(2)</enum><header>Transfer of
preservation projects</header><text display-inline="yes-display-inline">A
selling owner of a preservation project may, in accordance with this section,
enter into a contract for transfer of the project to a preservation purchaser
during the 12-month period beginning upon such election.</text>
</paragraph><paragraph id="HD47E4A24BFA347A1A89B580E52529213"><enum>(3)</enum><header>Offer
period</header><text>A selling owner of a preservation project shall agree not
to sell, transfer, or further encumber the preservation project during the
period of the owner’s participation in the program, with respect to such
project, except as otherwise provided in this section.</text>
</paragraph><paragraph id="HACB7F7BD55034658BC94175229312D7C"><enum>(4)</enum><header>Compliance with
program requirements</header><text display-inline="yes-display-inline">Except
as otherwise provided by the Secretary, a preservation project may be sold
under the program only if all of the parties to the transaction comply with the
requirements of this section.</text>
</paragraph></subsection><subsection id="H54D13D630C874120848EEE777C0AD19B"><enum>(c)</enum><header>Notice of
participation and certification</header>
<paragraph id="H3D67C97DF3F243FCA8A10045EED0621E"><enum>(1)</enum><header>Recipients;
timing</header><text display-inline="yes-display-inline">Each selling owner
shall of a preservation project shall—</text>
<subparagraph id="HACC9E92CE5C74A0CA833DA09012CD5E6"><enum>(A)</enum><text display-inline="yes-display-inline">not later than the date that is 12 months
before the date of maturity or expiration of the mortgage on the preservation
project, provide written notice of election to participate in the program with
respect to the project to—</text>
<clause id="H9485A8E309A84B51A93CF8CF2FD15A87"><enum>(i)</enum><text>the
Secretary;</text>
</clause><clause id="H4607F493DF454254B40A37882BB9932E"><enum>(ii)</enum><text>each tenant of
the project;</text>
</clause><clause id="H31E83BE583AB4C40AA77D56D70D9F424"><enum>(iii)</enum><text>any public
housing agency or other organization representing tenants of the preservation
project; and</text>
</clause><clause id="HA7C8A0E7CAB3471AB81A97CBD6D1CE49"><enum>(iv)</enum><text>qualified State
and local authorities; and</text>
</clause></subparagraph><subparagraph id="H83660523D38D429FA4174BE60C03FC0E"><enum>(B)</enum><text>post such notice
conspicuously in the common area of the preservation project for the duration
of the 12-month period beginning on the date that notice is required to be
provided pursuant to subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="H8476C7A67B5B40D5AD0CB0BFC84505E0"><enum>(2)</enum><header>Contents</header><text>Notice
required under subparagraph (A) shall—</text>
<subparagraph id="H3164A51472F34612ABFF31FC54E315E6"><enum>(A)</enum><text>include a
statement that the selling owner has elected to participate in the preservation
exchange program and to seek a contract for sale of the preservation project to
a preservation purchaser within the 12-month period following the date of the
notice, or within such other time period as permitted by this section;</text>
</subparagraph><subparagraph id="HBDE89489ABF94C46A70C12CD43457C35"><enum>(B)</enum><text>clearly identify
the preservation project;</text>
</subparagraph><subparagraph id="HC95053D0C3DA4A5DA146E909EA7A7BE1"><enum>(C)</enum><text>identify, and
provide contact information for, the selling owner; and</text>
</subparagraph><subparagraph id="HCF5E2D90B33F4AE7AD6D72DFEE49BCD5"><enum>(D)</enum><text display-inline="yes-display-inline">include such other information regarding
the preservation project and its potential sale under the program as the
Secretary may require, which shall include information concerning any
applicable subsidies or restrictions applicable to the preservation
project.</text>
</subparagraph></paragraph><paragraph id="HA965636748444111A904D4AF3638627D"><enum>(3)</enum><header>Certification</header><text>Not
later than 7 days after completion of all notice requirements of paragraph (1)
with respect to a preservation project, the selling owner shall certify in
writing to the Secretary that notice to all recipients has been provided as
required under this section.</text>
</paragraph><paragraph id="HF35DF173E3C8466B8D2CCD6FB551CAA5"><enum>(4)</enum><header>Notification to
Congress and public</header><text>Not later than 14 days after certification
pursuant to paragraph (3) is provided to the Secretary regarding a preservation
project, the Secretary shall—</text>
<subparagraph id="HFF27984632034FDDA4EDA71F2709B771"><enum>(A)</enum><text>provide to the
Member of the House of Representatives representing the district in which the
project is located, and to the Members of the Senate for the State in which the
project is located, a copy of such notice and certification; and</text>
</subparagraph><subparagraph id="H868A69AFC6C545A594B86A19F14436CA"><enum>(B)</enum><text>make such notice
and certification publicly available at an easily identifiable World Wide Web
location of the Department of Housing and Urban Development.</text>
</subparagraph></paragraph></subsection><subsection id="HA92817A5EB8543309FF49A221558C610"><enum>(d)</enum><header>Opportunity To
purchase</header>
<paragraph id="HFA1C14027545420A97932888A35FDC6D"><enum>(1)</enum><header>Notification;
offer</header><text>During the offer period referred to in subsection (b)(3)
with respect to a preservation project—</text>
<subparagraph id="HD7088C3B94B54BB48F180BEE1CC91B9F"><enum>(A)</enum><text>the Secretary
shall post on an easily identifiable World Wide Web location of the Department
of Housing and Urban Development information that identifies the preservation
project as eligible for purchase or transfer pursuant to the preservation
exchange program, additional information about the property, as determined by
the Secretary, and the identity of a contact person on behalf of the selling
owner who may be contacted by a potential preservation purchaser; and</text>
</subparagraph><subparagraph id="H83A262DACEFB492AA814F6807A5A2B1E"><enum>(B)</enum><text>a potential
preservation purchaser may make an offer to purchase the preservation project,
in accordance with the requirements of this section, by providing the offer, in
writing, to the selling owner and a copy of the offer to the Secretary.</text>
</subparagraph></paragraph><paragraph id="H42C7626B6F614A33A6C6D90F67F09C1B"><enum>(2)</enum><header>Determination of
bona fide offer</header><text>During the 21-day period beginning upon receipt
of a copy of an offer to purchase a preservation project made by a potential
preservation purchaser pursuant to paragraph (1)(B) (in this subsection
referred to as the <quote>review period</quote>), the Secretary shall—</text>
<subparagraph id="HCDA29806CF744BA29F5C0023D5744D2C"><enum>(A)</enum><text>review the terms
of the offer to purchase and determine whether it is a bona fide preservation
purchase offer meeting the requirements of subsection (e); and</text>
</subparagraph><subparagraph id="H0483ADB4BD2443FDA6FF70A8D3F36914"><enum>(B)</enum><text>provide notice of
such determination to the parties.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">If the
parties do not receive such notice of such determination from the Secretary
during the review period, notwithstanding subsection (i)(1), the offer shall be
considered for purposes of this section to be a bona fide preservation purchase
offer.</continuation-text></paragraph><paragraph id="H26C292A637DE48B492531E43F0DE0658"><enum>(3)</enum><header>Tolling of other
periods</header><text>During the review period for an offer to purchase a
preservation project or until earlier receipt of a determination from the
Secretary under paragraph (2), all other time periods set forth in this section
shall be tolled with respect to such preservation project.</text>
</paragraph><paragraph id="H6D33544A00DD4255A22C0E65BB96FEE2"><enum>(4)</enum><header>Action on
offer</header><text display-inline="yes-display-inline">With respect to a bona
fide offer to purchase a preservation project made by a potential preservation
purchase, during the 30-day period that begins upon the earlier of the receipt
of a determination from the Secretary under paragraph (2) regarding the offer
or the expiration of the review period, the selling owner shall accept or
reject the offer, subject to the conditions and requirements set forth in this
section.</text>
</paragraph><paragraph id="H0408BB48508C486D9E2AF14DF822372A"><enum>(5)</enum><header>Accepted offer;
contract</header><text>If a selling owner accepts a bona fide preservation
purchase offer made by a potential preservation purchaser, such parties shall
promptly enter into a binding contract that reflects the terms of the accepted
offer.</text>
</paragraph><paragraph id="HE25947A1380049C8A36CA53742F6C8B5"><enum>(6)</enum><header>Declined
offer</header><text>If a selling owner declines to accept any bona fide
preservation purchase offer made to the owner, such owner shall—</text>
<subparagraph id="H2CB2240F9C864B2CB7E8334443CAA436"><enum>(A)</enum><text>provide to the
Secretary a written explanation of the basis for its decision; and</text>
</subparagraph><subparagraph id="H9EEFD46EE1A64FC2888E7BD38630CA3D"><enum>(B)</enum><text>repay to the
Secretary all funds it received as a participant in the program, plus interest
at rate determined by the Secretary at the time the funds were made
available.</text>
</subparagraph></paragraph></subsection><subsection id="HB3EAC68206244630B68BE7628A269119"><enum>(e)</enum><header>Bona fide
preservation purchase offer</header><text display-inline="yes-display-inline">An offer to purchase a preservation project
shall constitute a bona fide preservation purchase offer meeting the
requirements of this subsection only if the offer—</text>
<paragraph id="H3A17EA8CD658414F8D0219021FCFE726"><enum>(1)</enum><text>includes an
agreement by the preservation purchaser to enter into such agreements, which
shall be contained in the deed or other recorded instruments for the
preservation project, as specified by the Secretary, that ensure that the
preservation project will remain affordable for very-low income families for a
period of not less than 40 years from the date of transfer pursuant to sale
under such offer, utilizing all available assistance, including renewal of
existing Federal assistance contracts and leasing to holders of tenant-based
assistance;</text>
</paragraph><paragraph id="H55960F36D0424EB0BBB0DF47BD4AB0E0"><enum>(2)</enum><text>includes an
agreement by the preservation purchaser to accept any contract for
project-based rental assistance applicable to the preservation project,
notwithstanding the transfer of the preservation housing to the preservation
purchaser, including the renewal of such contract upon expiration, for a period
of not less than 40 years from the date of transfer;</text>
</paragraph><paragraph id="H5A91F9C7630247BEA526E1204A886004"><enum>(3)</enum><text>requires that the
preservation purchaser execute such agreements, which shall be contained in the
deed or other recorded instruments for the preservation housing, as specified
by the Secretary, that ensure that the preservation project and related
facilities will remain affordable for very-low income households for a period
of not less that 40 years from the date of transfer, using all available
assistance, including renewal of existing Federal assistance contracts and
leasing to holders of tenant-based assistance; and</text>
</paragraph><paragraph id="H80F0F2A8DACA4B27B6FF4B19386B3880"><enum>(4)</enum><text>includes such
other terms and conditions as may be required by the Secretary.</text>
</paragraph></subsection><subsection id="H2E59DA9F20C746C89D2A6CD51BEA7AB5"><enum>(f)</enum><header>Incentives</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law
or regulation, the Secretary may, with respect to a preservation
project—</text>
<paragraph id="H2990C0C7B2B64E6EAFD41BA40B72A2A8"><enum>(1)</enum><text>suspend physical
inspections and management reviews of the project, during the period that
begins upon the provision to the Secretary by the selling owner notice of its
election to participate in the program and ending upon the completion of the
transfer of the preservation project to a preservation purchaser or termination
of participation of the selling owner in the program;</text>
</paragraph><paragraph id="H26BD6F98E6AC4E07B08FBC47D283D619"><enum>(2)</enum><text>streamline
approval of requests for prepayment, assignment of Housing Assistance Payments
contracts, transfer of physical assets, and other activities and functions, to
facilitate the sale or transfer under the program to a preservation
purchaser;</text>
</paragraph><paragraph id="H08A15C0C801445D49B44F4CA85FE97FD"><enum>(3)</enum><text>release project
resources, in the form of reserve for replacement funds or project residual
receipts, to the selling owner for purposes related to preparation of the
preservation project for sale under the program, applicable pre-development
costs, or transaction costs related to sale or transfer of the preservation
project under the program;</text>
</paragraph><paragraph id="HE4B72B16526547D793769776576413B4"><enum>(4)</enum><text>provide advances
in the form of a forgivable loan for the selling owner to be used for direct
predevelopment and administrative costs for preparation of the preservation
project for sale under the program, and the transfer of the preservation
project to the preservation purchaser, but not including compensation for
property value beyond the purchase price;</text>
</paragraph><paragraph id="H701687768EAE46D2A28E99799728906A"><enum>(5)</enum><text>provide grants or
loans to a preservation purchaser who has entered into a bona fide preservation
purchase contact under the program with the selling owner, which grant or loan
funds shall be used for to purchase or rehabilitate the preservation project;
and</text>
</paragraph><paragraph id="H3BDF29EA6D0C493EB1FB24226175D5ED"><enum>(6)</enum><text>provide grants or
loans pursuant to section 102(a) of this Act to a preservation purchaser who
has entered into a bona fide preservation purchase contract under the program
with the selling owner.</text>
</paragraph></subsection><subsection id="H926F3E16F04F4AB4BA330E97E71DB130"><enum>(g)</enum><header>Release of
selling owner</header><text display-inline="yes-display-inline">Upon closing of
the sale or transfer of the preservation project pursuant to this
section—</text>
<paragraph id="H53465DC1728842E9B6AD02E74EDDB119"><enum>(1)</enum><text>the selling owner
shall be released from obligations with respect to the preservation project
under—</text>
<subparagraph id="H904FD7CD2745437E9B70654D2E437E56"><enum>(A)</enum><text>the new
construction, substantial rehabilitation, moderate rehabilitation, property
disposition, and loan management set-aside programs, and any other program
providing project-based assistance, under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f);</text>
</subparagraph><subparagraph id="HBD0414A9E7FC476CA87CEC4EB3B450C9"><enum>(B)</enum><text>the below-market
interest rate program under paragraphs (3) and (5) of section 221(d)(3) of the
National Housing Act (12 U.S.C. 1715(d));</text>
</subparagraph><subparagraph id="H46E33EF7097A4039A87A26A69D6CEA5B"><enum>(C)</enum><text>section 236 of the
National Housing Act (12 U.S.C. 1715z–1);</text>
</subparagraph><subparagraph id="HC498593030CC4E338596BD9A1F14E525"><enum>(D)</enum><text>section 202 of the
Housing Act of 1959 (12 U.S.C. 1701q);</text>
</subparagraph><subparagraph id="H8B2A3A042F1D4105BEE2B902154727EB"><enum>(E)</enum><text>the rent
supplement program under section 101 of the Housing and Urban Development Act
of 1965 (12 U.S.C. 1701s); or</text>
</subparagraph><subparagraph id="H3723D2BC33FC423C92CAE70F6B8759DF"><enum>(F)</enum><text>other Federal
affordable housing programs, as identified by the Secretary; and</text>
</subparagraph></paragraph><paragraph id="H7B999594156C43438AEF24D2B6C449EE"><enum>(2)</enum><text>the preservation
purchaser agrees—</text>
<subparagraph id="H1DEADCF5F5B143DE9AC1C8533C417781"><enum>(A)</enum><text>to operate the
preservation project in accordance with the provisions of this section and any
agreements entered into pursuant to this section; and</text>
</subparagraph><subparagraph id="H7B99B999268F4B7CAB4CC3AC88509B04"><enum>(B)</enum><text>to maintain any
existing limits or restrictions on the amount of tenant rents, rent
contributions, or income eligibility of tenants, or on the use of the
preservation project, as required by the Secretary, for a period of not less
than 40 years from the transfer date, except that rents may be increased to the
extent that additional project-based assistance is provided by the
Secretary.</text>
</subparagraph></paragraph></subsection><subsection id="H7A2F2EB86AEE4129A5CA79A93466F28C"><enum>(h)</enum><header>Renewal of
participation in program</header>
<paragraph id="H0A0758798E36493BA9C0E748C6402DDF"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">A selling owner who
has participated in the program in good faith for 12 months and does not
receive or does not reject a bona fide preservation purchase offer during that
12-month period of participation may seek approval of the Secretary to renew
its participation for an additional 12-month period. A request for renewal
under this paragraph shall be subject to the same provisions of subsection (c)
applicable to a notice of election to participate in the program.</text>
</paragraph><paragraph id="H6F12C6E172D6446AACA7B66DFABCDF1D"><enum>(2)</enum><header>Timing</header><text>A
request for renewal may be made, but shall not be required to be made,
immediately upon the expiration of the selling owner’s initial 12-month period
of participation in the program.</text>
</paragraph><paragraph id="H4CA4EC43F18D4B19BFEC45A38D29CFE6"><enum>(3)</enum><header>Approval</header><text>The
Secretary may, at the discretion of the Secretary, approve or reject a renewal
request under this subsection. A renewal request that is not accepted or
rejected by the Secretary during the 30-day period beginning upon receipt of
the request by the Secretary shall be considered for purposes of this section
to have been accepted.</text>
</paragraph><paragraph id="H1506EB3E5CFD4E86A114BC3793F3ECF1"><enum>(4)</enum><header>Terms</header><text>A
selling owner who renews participation in the program shall be subject to the
requirements and procedures for participation under this section for the
initial term of participation.</text>
</paragraph></subsection><subsection id="H738340A90A42468E9C2282CDDC9464B1"><enum>(i)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the following
definitions shall apply:</text>
<paragraph id="H71850E799A8C4873AA44AC67A90B5E8E"><enum>(1)</enum><header>Bona fide
preservation purchase offer</header><text>The term <quote>bona fide
preservation purchase offer</quote> means an offer to purchase a preservation
project that has been determined by the Secretary, pursuant to subsection
(d)(2) to meet the requirements under subsection (e).</text>
</paragraph><paragraph id="H1FD85652B3E949EABF1C7A39F8680B2D"><enum>(2)</enum><header>Eligible
jurisdiction</header><text>The term <quote>eligible jurisdiction</quote> means
an area so designated by the Secretary for purposes of this section.</text>
</paragraph><paragraph id="H0E780E9FF3014934AD85DBAB9A6F6B83"><enum>(3)</enum><header>Preservation
contract</header><text display-inline="yes-display-inline">The term
<quote>preservation contract</quote> means any contract for sale or transfer of
a preservation project pursuant to the provisions of this section.</text>
</paragraph><paragraph id="H1A99A43631644B51B6C6F2047080BFFF"><enum>(4)</enum><header>Preservation
exchange program</header><text>The terms <quote>preservation exchange
program</quote> and <quote>program</quote> mean the preservation exchange
program authorized by, and established pursuant to, this section.</text>
</paragraph><paragraph id="H4A5CB5A016CE42ECAC62AAD14FC7F153"><enum>(5)</enum><header>Preservation
project</header><text>The term <quote>preservation project</quote> means any
multifamily housing project that—</text>
<subparagraph id="H8291D56EE6874D96B14132A18A0ED854"><enum>(A)</enum><text>has been
specifically identified to the Secretary by a selling owner as available for
purchase or transfer under the preservation exchange program;</text>
</subparagraph><subparagraph id="HDB793C876A6246B79E291EE020889A69"><enum>(B)</enum><text>is located in an
eligible jurisdiction;</text>
</subparagraph><subparagraph id="H7404AFB405C144968524F88657C5139D"><enum>(C)</enum><text>is financed by a
loan or mortgage that will mature or expire within 5 years of the election by
the selling owner to participate in the preservation exchange program;
and</text>
</subparagraph><subparagraph id="HA2CDB94C6C234AC0AB763D6F9526306C"><enum>(D)</enum><text>is insured or
assisted under—</text>
<clause id="H0AFAB46B27E749AB82EED4F9B80F9E66"><enum>(i)</enum><text display-inline="yes-display-inline">the new construction, substantial
rehabilitation, moderate rehabilitation, property disposition, and loan
management set-aside programs, or any other program providing project-based
assistance, under section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f);</text>
</clause><clause id="H3DA73D4EA201448CBDCC08C33457730B"><enum>(ii)</enum><text display-inline="yes-display-inline">the below-market interest rate program
under paragraphs (3) and (5) of section 221(d)(3) of the National Housing Act
(12 U.S.C. 1715(d));</text>
</clause><clause id="H050DFC282460449AB6DB0360989FD70C"><enum>(iii)</enum><text display-inline="yes-display-inline">section 236 of the National Housing Act (12
U.S.C. 1715z–1);</text>
</clause><clause id="HF222C599FCAD468994B95F928A5DE736"><enum>(iv)</enum><text>section 202 of
the Housing Act of 1959 (12 U.S.C. 1701q);</text>
</clause><clause id="H1898BC88F47C432E95409909FF0240A4"><enum>(v)</enum><text>the
rent supplement program under section 101 of the Housing and Urban Development
Act of 1965 (12 U.S.C. 1701s); or</text>
</clause><clause id="H875F8B1DAA0F486ABFFDEEABD4D14B33"><enum>(vi)</enum><text>any
other Federal affordable housing program, as identified by the
Secretary.</text>
</clause></subparagraph></paragraph><paragraph id="H1B1B14A2670D4858A9B7FE2DA901FA0B"><enum>(6)</enum><header>Preservation
purchaser</header><text display-inline="yes-display-inline">The term
<quote>preservation purchaser</quote> means any person or entity that acquires
a preservation project pursuant to an agreement to participate in the
preservation exchange program.</text>
</paragraph><paragraph id="H2979DEEF687644358487A0C7DF803853"><enum>(7)</enum><header>Secretary</header><text>The
term <quote>Secretary</quote> means the Secretary of Housing and Urban
Development.</text>
</paragraph><paragraph id="H8369A277CD6842F68DF3F1DCD455459B"><enum>(8)</enum><header>Selling
owner</header><text>The term <quote>selling owner</quote> means, with respect
to a preservation project, the person or entity that owns the project and that
has elected to participate in the preservation exchange program with respect to
such project.</text>
</paragraph></subsection><subsection id="H0F5E156A839D4E6D959F82F7BEF82AB1"><enum>(j)</enum><header>Effect of
participation</header><text display-inline="yes-display-inline">During the time
that the owner is participating in the preservation exchange program with
respect to a preservation project, such owner and such project shall not be
subject to the requirements under section 107 of this Act.</text>
</subsection><subsection id="H59DE224C8E994FE69490EE523D0EF49F"><enum>(k)</enum><header>Authorization of
appropriations</header><text display-inline="yes-display-inline">There are
authorized to be appropriated to the Secretary such sums as may be necessary to
carry out this section, including amounts for the provision of additional
educational services and training and technical assistance and to provide
information to the public and to potential participants in the preservation
exchange program to facilitate participation in the program, and for other
activities to promote the preservation of affordable housing.</text>
</subsection><subsection id="H75E27DCBEB174FE6A86869D2CDE828CD"><enum>(l)</enum><header>Regulations</header><text>The
Secretary shall issue any regulations necessary to carry out this
section.</text>
</subsection></section><section id="H6FA87AC9A45442B08676196277811114" section-type="subsequent-section"><enum>107.</enum><header>Federal first right
of refusal</header>
<subsection id="H9C35B431829A4B6FA11CAE3EB96D59A4"><enum>(a)</enum><header>Notice of
termination of affordability restrictions</header>
<paragraph id="H60632EDC677646CA9113FC9C51BEBB70"><enum>(1)</enum><header>Notice of
termination</header>
<subparagraph display-inline="no-display-inline" id="HED8A18E0DA004FE6BF54B52B8BB8AA9A"><enum>(A)</enum><header>Requirement</header><text display-inline="yes-display-inline">Except as provided in subparagraph (D), an
owner of covered housing shall provide written notice under subparagraph (B) of
any termination of the affordability restrictions affecting the covered
housing, not later than one year, but no earlier than three years, before such
termination to—</text>
<clause id="HADB7F44D594D48989136B21D59F3B14E"><enum>(i)</enum><text>all
tenants and the resident council, if any, of the covered housing;</text>
</clause><clause id="HCFF88C8A4A7D4F46B3236101A49F15FD"><enum>(ii)</enum><text>the
State housing agency or comparable State agency of the State in which the
housing is located; and</text>
</clause><clause id="H6914BA19FC2A4BB9B086FCEF14476E10"><enum>(iii)</enum><text>the
Secretary.</text>
</clause><continuation-text continuation-text-level="subparagraph">Nothing
in this section shall prohibit an owner from taking actions to terminate an
affordability restriction during any notice period under this section; except
that an owner shall comply with all of the notice terms and restrictions
pursuant to paragraphs (2) and (3).</continuation-text></subparagraph><subparagraph id="H689C6D73482D4DDD8D4903DDDAF8A369"><enum>(B)</enum><header>Contents</header><text display-inline="yes-display-inline">Written notice under this subparagraph with
respect to covered housing shall include—</text>
<clause id="HC2B3E5B687A04A6CB92E99C6690BB446"><enum>(i)</enum><text>the
address of the covered housing;</text>
</clause><clause id="H0C708727117545419296D580725BC7E4"><enum>(ii)</enum><text>the
name and address of the owner;</text>
</clause><clause id="H59C2B0917A324FE7BE7B4B08BEC1AF54"><enum>(iii)</enum><text>a
statement identifying that an affordability restriction may terminate;</text>
</clause><clause id="H6DCA446B6AE74565ADFC79D888838832"><enum>(iv)</enum><text>the
date on which each affordability restriction may terminate; and</text>
</clause><clause id="HEBFCE96E452846C081B4F02DF6E895C4"><enum>(v)</enum><text>such
other information as may be required by the Secretary.</text>
</clause></subparagraph><subparagraph id="HC71577647464487D8B699FC9979CDAC5"><enum>(C)</enum><header>Single notice
covering multiple terminations</header><text>In any case in which more than one
termination is scheduled to occur within a 12-month period, an owner may
provide a single written notice covering all such terminations, but only if the
notice is provided in accordance with subparagraph (A) at least one year before
the earliest such termination and the notice otherwise complies with this
paragraph.</text>
</subparagraph><subparagraph id="H03D28B4C5F35414D987BE78CE47AF759"><enum>(D)</enum><header>Transition</header><text display-inline="yes-display-inline">Subparagraph (A) shall not apply with
respect to covered housing subject to an affordability restriction that, as of
the effective date under subsection (j), has less than two years of
applicability remaining. Such covered housing shall be subject to paragraph
(5).</text>
</subparagraph></paragraph><paragraph id="HDFA8FAD0A1F24033BEBE86964A913B51"><enum>(2)</enum><header>Notice of intent
to complete termination</header><text>An owner of covered housing shall not
complete a termination or allow a termination to occur with respect to such
housing unless, not later than one year before the completion of the last
termination event affecting the covered housing, the owner provides the
entities identified in paragraph (1) with written notice of intent to complete
such termination. The notice shall include—</text>
<subparagraph id="H72D67B55220A4DA984A8093BA29D6417"><enum>(A)</enum><text>the address of the
covered housing;</text>
</subparagraph><subparagraph id="H586D3BD32FF14142ABECB0BF70D14D00"><enum>(B)</enum><text>the name and
address of the owner;</text>
</subparagraph><subparagraph id="H20C21C49B9084870BE18C2D0F71EAAD2"><enum>(C)</enum><text>the date on which
the owner intends to complete termination; and</text>
</subparagraph><subparagraph id="H36BE9289748E474B841DD4F57EC0A4C8"><enum>(D)</enum><text>such other
information as may be required by the Secretary.</text>
</subparagraph></paragraph><paragraph id="H4114FBB2D8064AD1A7BB7E4B0656D84C"><enum>(3)</enum><header>Opportunity for
purchase by Secretary</header><text display-inline="yes-display-inline">Except
as provided in subsection (d), an owner of covered housing shall not sell the
covered housing at any time before—</text>
<subparagraph id="HDBA8E9D513C64A888222BEBC44950218"><enum>(A)</enum><text>providing notice,
in writing, to the parties identified in paragraph (1) of the owner’s intention
to sell the property; and</text>
</subparagraph><subparagraph id="HE7A6B1D9CBAB4F2D83336AED9FEE9674"><enum>(B)</enum><text>offering the
Secretary the opportunity to purchase the property pursuant to subsection
(b).</text>
</subparagraph></paragraph><paragraph id="H444850201B7A414497AA4D6E4DDDCA19"><enum>(4)</enum><header>Delivery of
notice</header>
<subparagraph id="H689890C7FA604DDCA0C09648B1F09660"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">Except as provided in
subparagraph (B), any notice required by this subsection shall be deemed to
have been provided when delivered in person or mailed by certified or
registered mail, return receipt requested, to the party to whom notice is
required.</text>
</subparagraph><subparagraph id="H1142170F02B640D5BBD0BC5702808E4D"><enum>(B)</enum><header>Notice to
tenant</header><text>With respect to any notice to tenants required by this
subsection, any such notice shall be deemed to have been provided upon the
when—</text>
<clause id="H1D2320199D5644D69B2B327354155E13"><enum>(i)</enum><text>the
notice is delivered in hand to the tenant or an adult member of the tenant’s
household;</text>
</clause><clause id="H7442052887D84FADB6DFCC7B50942EE4"><enum>(ii)</enum><text>the
notice is sent by first class mail; or</text>
</clause><clause id="H8726A77FB74D487380EDECC1B676F1AD"><enum>(iii)</enum><text>a
copy is left in or under the door of the tenant’s dwelling unit.</text>
</clause></subparagraph></paragraph><paragraph id="H84204410436D466E875A779722A9F816"><enum>(5)</enum><header>Transition</header><text display-inline="yes-display-inline">Notwithstanding paragraph (1) of this
subsection, an owner of covered housing who, on the effective date under
subsection (j), has less than one year remaining before the date when the
affordability restriction will cease to apply to such housing, shall not be
required to give the one-year notice required by paragraph (1), but shall
provide such notice within 90 days after the effective date under subsection
(j). Notwithstanding paragraph (2) of this subsection, an owner who, on the
effective date under subsection (j), has less than one year remaining before a
termination shall not be required to give the one-year notice required by
paragraph (2), but shall provide such notice within 90 days after such
effective date.</text>
</paragraph><paragraph id="H2E046ED62E39459E86E97202F421F156"><enum>(6)</enum><header>Effect of offer,
purchase, or sale</header><text display-inline="yes-display-inline">The notice
requirements of this subsection shall not be affected by the status of an
offer, purchase contract, or sale under subsection (b) or (c).</text>
</paragraph></subsection><subsection id="H31458B253DA641F29A7ECD1BB6B78DC6"><enum>(b)</enum><header>Right of
Secretary to make offer</header>
<paragraph id="HB204112A2DC4463AB94646D72B3B6751"><enum>(1)</enum><header>Opportunity for
purchase by Secretary</header><text display-inline="yes-display-inline">An
owner of covered housing shall offer the Secretary an opportunity to purchase
the covered housing, in accordance with this subsection, before entering into
any agreement to sell such housing to a third party. This paragraph may not be
construed to establish any obligation on the part of an owner of covered
housing to enter into an agreement to sell such housing to the
Secretary.</text>
</paragraph><paragraph id="HA7CFE1B07E334068B9178FC813CB36C7"><enum>(2)</enum><header>Assignee of
Secretary</header>
<subparagraph id="H8436C6957C544A3BB8A130377F6A37CB"><enum>(A)</enum><header>Authority to
select</header><text display-inline="yes-display-inline">The Secretary may
select an assignee to act on behalf of the Secretary under this subsection as
the purchaser of covered housing and shall give the owner written notice of any
assignee selected.</text>
</subparagraph><subparagraph id="H50B89102EFC848B78F09C25030A0C6AA"><enum>(B)</enum><header>Agreement</header><text>The
Secretary shall enter into a written agreement with any assignee selected,
which shall provide that the assignee, and any of its successors or assigns,
agree to preserve the affordability of the covered housing. Upon entering into
such an agreement, the assignee shall assume all rights and responsibilities of
the Secretary as a prospective purchaser under this subsection and subsection
(c).</text>
</subparagraph><subparagraph id="H01BD155C7D35406DB32FE7C21AAFF2A0"><enum>(C)</enum><header>Revocation</header><text>At
any time before a sale of covered housing under this subsection or subsection
(d), the Secretary may revoke the selection and designation of an assignee with
respect to the covered housing pursuant to this paragraph and assume the rights
and responsibilities in the Secretary’s own capacity or select a new assignee
and enter into an agreement under subparagraph (B) with such assignee. No
action under this subparagraph shall operate to extend or alter any time
periods for performance under this section or in any purchase contract entered
into pursuant to this section.</text>
</subparagraph></paragraph><paragraph id="H0ABE006AEEF646089578B0DC6A8AA45C"><enum>(3)</enum><header>Purchase
offer</header>
<subparagraph id="H8EA20E5256274528BCE86EA4422EC144"><enum>(A)</enum><header>Timing</header><text display-inline="yes-display-inline">During the 90-day period with respect to
covered housing that begins upon receipt of notice pursuant to subsection
(a)(3) of the owner’s intention to sell the covered housing, the Secretary may
submit an offer to the owner to purchase the covered housing.</text>
</subparagraph><subparagraph id="H94A8A4BC7FEF4848A6C101ED836BF8C9"><enum>(B)</enum><header>Failure to
submit</header><text>Failure by the Secretary to submit an offer to purchase
covered housing during the period under subparagraph (A) shall constitute an
irrevocable waiver of the Secretary’s rights under this subsection and the
owner may sell the covered housing subject to subsection (c).</text>
</subparagraph><subparagraph id="H824B46A2AF16490AB82FA76A216C7E12"><enum>(C)</enum><header>Acceptance</header><text>If
the owner accepts the initial or any revised offer of the Secretary, the owner
and the Secretary shall enter into such other agreements as are necessary and
appropriate to complete the purchase. If the owner and the Secretary have not
entered into an agreement for the Secretary to purchase the property within 90
days after receipt of the notice pursuant to subsection (a)(3), the owner may
enter into an agreement to sell the property to a purchaser of the owner’s
choice, subject to subsection (c).</text>
</subparagraph></paragraph><paragraph id="H376BEC685B9C4127A6632E867933CFE1"><enum>(4)</enum><header>Availability of
documents</header>
<subparagraph id="H9F1EF39111314F17A45EC60E3AD4E104"><enum>(A)</enum><header>Requirement</header><text display-inline="yes-display-inline">If the Secretary makes a request pursuant
to this subparagraph to the owner of covered housing at any time after notice
required under subsection (a)(1) has been provided, the owner shall, within 10
days after receiving the request, make the documents described in subparagraph
(B) available to the Secretary for review and photocopying during normal
business hours at the owner's principal place of business or at a commercial
photocopying facility.</text>
</subparagraph><subparagraph id="HA054A3C0A1CC4A71A4906251BFAF1A4C"><enum>(B)</enum><header>Covered
documents</header><text>The documents described in this subparagraph with
respect to covered housing shall include—</text>
<clause id="HCFBAFC3173BF4FCF8251B0B899963D07"><enum>(i)</enum><text>any
existing architectural plans and specifications of the covered housing;</text>
</clause><clause id="H2FA1786D05D74D21B983411376701D54"><enum>(ii)</enum><text>itemized lists of
monthly operating expenses and capital expenditures for the covered housing in
each of the two preceding calendar years;</text>
</clause><clause id="H347F5BFE903D44FA8EAEC004A17B111D"><enum>(iii)</enum><text>any capital
needs studies or market studies for the covered housing that have been
submitted to a Federal, State, or local agency in the preceding three
years;</text>
</clause><clause id="HA065537DE1684E249182AEA5A36A27E5"><enum>(iv)</enum><text>utility
consumption rates for the covered housing for preceding year;</text>
</clause><clause id="H6675FBC0BB174F3B8D9065B99C62F00D"><enum>(v)</enum><text>the
last two audited annual financial statements and physical inspection reports
for the covered housing filed with Federal, State, or local agencies;</text>
</clause><clause id="HA03D4ACDBF9D4E81AA44151184E4B6A6"><enum>(vi)</enum><text>the
most recent rent roll for the covered housing showing then-current vacancies
and rent arrearages;</text>
</clause><clause id="H4F7BC61FDF744E9EBAA6CE2E21C21E67"><enum>(vii)</enum><text>a
statement of the approximate annualized vacancy rate for the covered housing
for each of the two preceding calendar years; and</text>
</clause><clause id="H2C67070CABF348B094BD469A3A28A938"><enum>(viii)</enum><text>any other
documents relating to the covered housing that the Secretary considers
appropriate.</text>
</clause></subparagraph><subparagraph id="H84DAF7B4799B4E299E89ADBFC4B485EC"><enum>(C)</enum><header>Protection of
information</header><text>Documents obtained pursuant to a request under this
paragraph shall not be considered public records, and the Secretary shall not
make such documents available to the public without the written consent of the
owner or pursuant to a court order, except that disclosure of such documents
may be made to potential funding sources, regulatory agencies, or agents or
consultants of the Secretary in connection with a purchase transaction pursuant
to this subsection, subject to appropriate confidentiality agreements.</text>
</subparagraph></paragraph><paragraph id="HEA07CADE703A4D8EA27EBD655BF54999"><enum>(5)</enum><header>Inspections</header>
<subparagraph id="HB19A35330A60451DA35C292D6048A625"><enum>(A)</enum><header>In
general</header><text>Subject to execution of an access and confidentiality
agreement in accordance with subparagraph (B), upon request by the Secretary
and with appropriate notice, the owner shall permit reasonable inspections of
the dwelling units, building systems, common areas, and common grounds of the
covered housing by agents, consultants, and representatives of the Secretary or
the assignee of the Secretary, including inspections related to environmental,
engineering, structural, or zoning matters.</text>
</subparagraph><subparagraph id="HF5F4CBE5B12E42BD9ACEFFA37540C16F"><enum>(B)</enum><header>Access and
confidentiality agreement</header><text>An access and confidentiality agreement
in accordance with this subparagraph is an agreement, entered into by the owner
of covered housing and any agents, consultants, or representatives of the
Secretary or the assignee of the Secretary, in a form approved by the
Secretary, with respect to such matters as insurance to be carried by the
inspectors of the covered housing, indemnities of the owner, restrictions on
invasive testing, restoration requirements, the timing of such inspections, and
the requirement to maintain confidentiality with respect to all matters
discovered.</text>
</subparagraph></paragraph><paragraph id="H85A8D472A62942858395D02823C1C841"><enum>(6)</enum><header>Notification to
tenants</header><text>Not later than 30 days after the Secretary submits an
offer to purchase the covered housing pursuant to subsection (c), the Secretary
shall notify tenants in the housing development of its plans.</text>
</paragraph></subsection><subsection id="HD29FB0086D314185B5E3FF894BBA99EA"><enum>(c)</enum><header>First right of
refusal</header>
<paragraph commented="no" id="H3792F5495D83409691BE097D85E818E9"><enum>(1)</enum><header>Sale to third
party</header><text display-inline="yes-display-inline">An owner of covered
housing may execute a purchase contract with a third party to sell the covered
housing pursuant to this subsection during the one-year period that begins upon
the date on which notice for such housing was provided to the Secretary
pursuant to subsection (a)(3). After such period expires, the owner may not
sell the housing without providing notice of such sale in accordance with
subsection (a)(3)(A).</text>
</paragraph><paragraph id="HC67D26E12397455EA510F7AB588A8FF5"><enum>(2)</enum><header>Matching of
third party offer by Secretary or other party</header>
<subparagraph id="HBB4E0E9A14EF42AFBA1A357ED88F6FFD"><enum>(A)</enum><header>Notice of third
party purchase contract</header><text display-inline="yes-display-inline">Upon
execution of a third party purchase contract for covered housing, the owner
shall, within 7 days, submit a copy of the contract to the Secretary, the
resident council, if any, all tenants, and the State housing agency.</text>
</subparagraph><subparagraph id="HE095A05273A243EAAF60FBFC573A0487"><enum>(B)</enum><header>Purchase by
Secretary and assignment of right to match offer</header><text>In the case of
covered housing for which a third party purchase contract is executed, the
Secretary may—</text>
<clause id="H2FCE51E7DC82488FB8429C6E8B449F6B"><enum>(i)</enum><text>elect to purchase
the housing under a contract under subparagraph (D); or</text>
</clause><clause id="H81CCA85E104941609B19AFBD7BD2E8F1"><enum>(ii)</enum><text>assign the right
to match the third party offer for the covered housing under a contract under
subparagraph (D).</text>
</clause><continuation-text continuation-text-level="subparagraph">If the
Secretary elects to take action under clause (i) or (ii), the Secretary shall
take such action, or execute such other agreement as is acceptable to the owner
and the Secretary, during the 30-day period that begins upon receipt by the
Secretary of a copy of the third party purchase contract.</continuation-text></subparagraph><subparagraph id="H376FC6DFDCD54B5A96F15D29A9FCD632"><enum>(C)</enum><header>Extension of
time periods</header><text>The time periods set forth in this paragraph may be
extended by agreement between the owner and the Secretary.</text>
</subparagraph><subparagraph id="HBA7BF692A7D240629B669276628537E4"><enum>(D)</enum><header>Terms of
matching contract</header><text>The purchase contract between the owner and the
Secretary or the Secretary’s assignee pursuant to this paragraph shall contain
the same material terms and conditions as the executed third party purchase
contract, except that the purchase contract between the owner and the assignee
shall provide at least the following terms:</text>
<clause id="HF9C5E2C1D2504702AEC4354F0734267F"><enum>(i)</enum><header>Amount of
earnest money deposit</header><text>The amount of the earnest money deposit
shall not exceed the lesser of—</text>
<subclause id="H656C40AA4F0447919330645C7E695334"><enum>(I)</enum><text>the amount of the
deposit provided under the third party purchase contract;</text>
</subclause><subclause id="H84D987217B8A4D6D8FA66A1D1CBF5FD2"><enum>(II)</enum><text>2 percent of the
sale price; or</text>
</subclause><subclause id="HCA6888764AD14BC1812629CE81F3000F"><enum>(III)</enum><text>$250,000.</text>
</subclause></clause><clause id="HAFECC12E04B2452F86071120E799823D"><enum>(ii)</enum><header>Escrow of
earnest money deposit</header><text>The earnest money deposit shall be held
under commercially reasonable terms by an escrow agent selected jointly by the
owner and the Secretary or the assignee of the Secretary.</text>
</clause><clause id="HA973B29CBCDC481AB76485CE7C7DE903"><enum>(iii)</enum><header>Refunding of
earnest money deposit</header><text>The earnest money deposit shall be
refundable for not less than 90 days from the date of execution of the purchase
contract or such longer period as provided for in the third party purchase
contract; except that if the owner unreasonably delays the buyer’s ability to
conduct due diligence during the 90-day period, the earnest money deposit shall
continue to be refundable for a period greater than 90 days.</text>
</clause><clause id="H8846F9C65FC74874A22209426AF7D170"><enum>(iv)</enum><header>Time for
performance</header><text>The time for performance shall be no sooner than 240
days after the date of the execution of the purchase contract, or such later
date provided for in the third party purchase contract.</text>
</clause></subparagraph></paragraph><paragraph id="H4718A1B8D9DF485A95D3E4836D0B58B8"><enum>(3)</enum><header>Failure to
execute purchase contract by Secretary or assignee</header><text display-inline="yes-display-inline">If
the Secretary, or the assignee, fails to execute a proposed purchase contract
during the 30-day period under paragraph (2)(B) (as such period may be extended
pursuant to paragraph (2)(C)), the owner may, during the 2-year period
beginning upon expiration of such 30-day (or extended) period, complete a sale
of the owner’s covered housing to a third party, except as provided in
paragraph (5). After the expiration of such 2-year period, the owner may not
sell the housing without, after such expiration, complying with paragraph (3)
of subsection (a) and with this subsection.</text>
</paragraph><paragraph id="H8460F434F5A34CE19F25066A1D5B78F7"><enum>(4)</enum><header>Failure to
perform purchase contract by Secretary or assignee</header><text display-inline="yes-display-inline">If
the Secretary, or the assignee, executes the proposed purchase contract as
provided in paragraph (2) but fails to perform as provided in the executed
purchase contract, the owner may, during the 2-year period beginning upon the
date on which the executed purchase contract terminated, complete a sale of the
owner’s covered housing to a third party. After the expiration of such 2-year
period, the owner may not sell the housing without, after such expiration,
complying with paragraph (3) of subsection (a) and with this subsection.</text>
</paragraph><paragraph id="H037172ECE7B44A0E91872AFC9423D629"><enum>(5)</enum><header>Counteroffer</header>
<subparagraph id="H291143D42E2B4349AF3BA6E7A429C09B"><enum>(A)</enum><header>Opportunity</header><text display-inline="yes-display-inline">After receipt of the third party purchase
contract provided for in paragraph (2), the Secretary may, during the 30-day
period under paragraph (2), make a counteroffer by executing and submitting to
the owner an amended proposed purchase contract, or by assigning the right to
make such a counteroffer to an assignee.</text>
</subparagraph><subparagraph id="H06ADA3FDEEFA48D8BCFAA0233E545B09"><enum>(B)</enum><header>Assignment</header><text>If
the Secretary assigns the right under subparagraph (A) to make a counteroffer,
the assignee may, during the 15-day period that begins upon such assignment or
the remaining period remaining in the 30-day period under paragraph (2),
whichever is longer, make such a counteroffer.</text>
</subparagraph><subparagraph id="HC406BCE693AC4599A38372427DB835A4"><enum>(C)</enum><header>Failure by
Secretary to execute or assign</header><text>Failure by the Secretary to
execute or assign the purchase contract or submit a counteroffer during the
30-day period under paragraph (2) shall constitute a waiver of the Secretary’s
right to purchase under this subsection.</text>
</subparagraph><subparagraph id="HA25EA112320B44ED94BAF2110AEEEDB2"><enum>(D)</enum><header>Period for owner
response</header><text>If the Secretary or an assignee submits a counteroffer
pursuant to this paragraph, the owner may, during the 30-day period beginning
upon receipt of the amended proposed purchase contract, execute the amended
proposed purchase contract or reject the counteroffer in writing.</text>
</subparagraph><subparagraph id="HD1E85E001CDF46DD85898E9EF40D5B6B"><enum>(E)</enum><header>Rejection by
owner</header><text>If the owner rejects the counteroffer, the owner may,
during the 2-year period beginning on the date of such rejection, complete a
sale of the covered housing to a third party. If such sale is upon economic
terms and conditions that are the same as, or materially more favorable to the
proposed purchaser than, the economic terms and conditions in the proposed
purchase contract offered by the Secretary or assignee in the Secretary’s or
assignee’s counteroffer, the owner shall, within 7 days after such execution,
provide a copy of the new third party purchase contract, along with a proposed
purchase contract for execution by the Secretary or assignee, which shall
contain the same terms and conditions as the executed third party purchase
contract. The Secretary or assignee may, during the 30-day period beginning
upon receipt of the third party purchase contract and the proposed purchase
contract, execute the proposed purchase contract or such other agreement as is
acceptable to the owner and the Secretary or assignee.</text>
</subparagraph></paragraph><paragraph id="H3310508308AE4B0B922915DC21287153"><enum>(6)</enum><header>Provision of
third party contract to Secretary</header><text display-inline="yes-display-inline">If any owner executes any purchase contract
with a third party during any of the 2-year periods referred to paragraph (3),
(4), or (5), the owner shall—</text>
<subparagraph id="HB0658D3EDA8849C9A03BCD28DE5E1EA6"><enum>(A)</enum><text>not later than 7
after such execution, provide the Secretary with a copy of the new or amended
purchase contract executed with respect to the covered housing; and</text>
</subparagraph><subparagraph id="HE6BC25DD85394CD6BC876FCDD1D96CE8"><enum>(B)</enum><text>not later than 7
days after the recording or filing of the deed or other document with the
registry of deeds or the registry district of the land court of the county in
which the affected covered housing is located, provide the Secretary with a
copy of any such deed or other document transferring the owner’s interest in
the covered housing.</text>
</subparagraph></paragraph><paragraph id="H40E13A9278D34DD6BB73920CAF16BE8E"><enum>(7)</enum><header>Certification by
owner</header><text>Any third party purchase contract, amended third party
purchase contract, deed, or any other document transferring the owner’s
interest in covered housing shall include a certification by the owner that the
document is accurate and complete and that there are no other agreements
between the owner and the third party buyer, or an affiliate of either, with
respect to the sale of the covered housing.</text>
</paragraph></subsection><subsection id="HDA16DF12ED6D483FB8DE22EE039C443A"><enum>(d)</enum><header>Exemptions</header>
<paragraph id="HAB0EA8819DDA45F29D2FBCE2E72DC0E5"><enum>(1)</enum><header>Inapplicability
of first right of refusal</header><text display-inline="yes-display-inline">Subsection (b) and (c) shall not apply to
any of the following actions:</text>
<subparagraph id="HC18AEBA7EEC243158AB6FC7320A66388"><enum>(A)</enum><text>A government
taking of covered housing by eminent domain or a negotiated purchase in lieu of
eminent domain.</text>
</subparagraph><subparagraph id="H4751E38EC49D4631B05DF614C836733E"><enum>(B)</enum><text>A forced sale of
covered housing pursuant to a foreclosure.</text>
</subparagraph><subparagraph id="H989FEBB6DBCB4278BEC4B542C5EC75FC"><enum>(C)</enum><text>A deed-in-lieu of
foreclosure for covered housing.</text>
</subparagraph><subparagraph id="H9409E561DD534861B47677B315B486FC"><enum>(D)</enum><text>A proposed sale of
covered housing to a purchaser pursuant to terms and conditions that preserve
affordability, as determined by the Secretary (including sales or transfers
pursuant to section 106 of this Act).</text>
</subparagraph><subparagraph id="HB4B1F70DDE7A43988103629C01EEEA8B"><enum>(E)</enum><text>A proposed sale of
covered housing—</text>
<clause id="HA87DC74C4E37400E9B5AE206387D95D9"><enum>(i)</enum><text display-inline="yes-display-inline">that the Secretary has determined was not,
as of the effective date under subsection (j), receiving Federal assistance nor
subject to regulation by any of the programs identified in subsection (g)(4),
other than the program identified in subsection (g)(4)(A); and</text>
</clause><clause id="H81EB0455132A4F9F8D5988034A690740"><enum>(ii)</enum><text>under which the
buyer has agreed, as provided in a regulatory agreement, to renew in whole, all
contracts for project-based assistance under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f) or any successor program thereto; such
renewal shall be subject to the availability, at the time of such renewal, of
such assistance to the owner on economic terms and conditions that are
comparable to the existing project-based rental assistance contract.</text>
</clause></subparagraph><subparagraph id="HE208565D61B64E92A5F7EF2B3FA4F8EC"><enum>(F)</enum><text>A proposed sale of
covered housing to an affiliate of the owner that is not a termination, as
determined by the Secretary.</text>
</subparagraph><subparagraph id="H056C82910ADF4B32B87F36B91CE69D24"><enum>(G)</enum><text display-inline="yes-display-inline">A proposed sale of covered housing with
respect to which the first scheduled termination will occur more than 15 years
after the date of the sale.</text>
</subparagraph><subparagraph id="H4C918677F1C84AFB98FDB05BF3A1064A"><enum>(H)</enum><text display-inline="yes-display-inline">A bona fide proposed sale pursuant to a
purchase contract in effect on the effective date under subsection (j).</text>
</subparagraph></paragraph><paragraph id="HFA4E9F1A80A24D848C50939A937798D2"><enum>(2)</enum><header>Requirement to
submit request</header><text>The Secretary shall make a determination that an
exemption under subparagraph (D), (E), or (F) of paragraph (1) applies only
pursuant to a written request for such an exemption submitted by the owner of
the covered housing. Such a request shall include the name and address of any
resident council for the covered housing. The Secretary shall provide a copy of
the Secretary’s determination under subparagraph (D), (E), or (F) of paragraph
(1) to the owner and the resident council.</text>
</paragraph></subsection><subsection id="HF13065614A0B493C85BE258AB8B6337F"><enum>(e)</enum><header>Regulatory
agreement</header><text>A purchase of covered housing by the Secretary or an
assignee of the Secretary pursuant to this section shall be subject to a
regulatory agreement. Such a regulatory agreement shall not contain any terms
or conditions that would preclude an owner or purchaser from participating in,
or diminishing the benefits that an owner would otherwise receive by
participating in the mark-to-market program of the Department under Multifamily
Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f
note).</text>
</subsection><subsection id="HC6DF3BEC121A463BB08FA95057DA6847"><enum>(f)</enum><header>Certificate of
compliance</header>
<paragraph id="H7BAB66D78F974FE091086979E9C6E456"><enum>(1)</enum><header>Issuance</header><text display-inline="yes-display-inline">An owner of covered housing who has
complied with subsections (a), (b), and (c), which has not resulted in a
purchase by the Secretary or the assignee of the Secretary of the covered
housing, or which has resulted in a sale of the covered housing pursuant to
subsection (c), may apply to the Secretary for a certificate of compliance by
submitting a written request for the certificate, in such form and together
with such documentation as the Secretary shall require. The Secretary shall
issue the certificate of compliance within 30 days after receipt of the
application if the Secretary determines that the owner has complied with said
subsections (a), (b), and (c) and such certificate shall establish the owner’s
compliance to the satisfaction of the Secretary.</text>
</paragraph><paragraph id="HAAFD85CDD6A845469E1F89C5F5234161"><enum>(2)</enum><header>Filing</header><text display-inline="yes-display-inline">An owner obtaining a certificate of
compliance with respect to covered housing shall file the certificate with the
registry of deeds or the registry district of the land court of the county in
which the covered housing is located not later than one year after the date of
issuance.</text>
</paragraph><paragraph id="H3BD437760B2048E4999D026601F3DB5D"><enum>(3)</enum><header>Provision to
tenants</header><text>Upon request by any tenant of the affected covered
housing, the owner shall provide a copy of the owner’s request for a
certificate of compliance.</text>
</paragraph></subsection><subsection id="HBF0E1A039DDA42DEA86966DD8F9E7E51"><enum>(g)</enum><header>Relationship
with other laws</header><text display-inline="yes-display-inline">This section
shall not preempt any State or local law that has established a right of first
refusal to preserve affordable housing that is on terms and conditions that are
comparable to this section, establishes such a right after the effective date
under subsection (j). Any covered housing located in a State or locality with
such a right of first refusal shall not be subject to this section.</text>
</subsection><subsection id="H79D1829AD52946B2AF71081FCD7F2B9B"><enum>(h)</enum><header>Definitions</header><text>For
the purposes of this section, the following definitions shall apply:</text>
<paragraph id="HD339CBBD6D124DD7AED641A057347ABA"><enum>(1)</enum><header>Affiliate</header><text display-inline="yes-display-inline">The term <quote>affiliate</quote> means an
entity owned or controlled by an owner or under common control with the
owner.</text>
</paragraph><paragraph id="H4748E173D28B495988F012EE77FCCF5F"><enum>(2)</enum><header>Affordability
restriction</header><text>The term <quote>affordability restriction</quote>
means, with respect to covered housing, a limit on rents that an owner may
charge for occupancy of a rental unit in the housing or a limit on tenant
income for persons or families seeking to qualify for admission to such
housing.</text>
</paragraph><paragraph id="HB4AE21E4BFD549C2893044E9EDB4D86B"><enum>(3)</enum><header>Assignee</header><text>The
term <quote>assignee</quote> means a State agency, local or regional housing
authority, nonprofit or for profit corporation, or other entity qualified to do
business in the affected State, that is selected by the Secretary to operate
covered housing that is decent, safe, and sanitary affordable housing in a
manner to be determined by the Secretary.</text>
</paragraph><paragraph id="HB413F48D06AC47B585305A5FE336FD86"><enum>(4)</enum><header>Covered
housing</header><text>The term <quote>covered housing</quote> means a housing
unit or development that receives Federal assistance under any of the following
programs or provisions:</text>
<subparagraph id="H0364AD8781F748CBA77FB256A64E8CDF"><enum>(A)</enum><text>The programs under
section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) for new
construction, substantial rehabilitation, moderate rehabilitation, property
disposition, and loan management set-aside, and any other Federal program
providing project-based rental assistance.</text>
</subparagraph><subparagraph id="HFBA05ECBDB6B43438B80897D32EBD4FF"><enum>(B)</enum><text>The Federal
program for low-income housing tax credits under section 42 of the Internal
Revenue Code of 1986 (26 U.S.C. 42).</text>
</subparagraph><subparagraph id="H61915B4D04144474BE8038B2FD3B69DB"><enum>(C)</enum><text display-inline="yes-display-inline">The program for rent supplement assistance
under section 101 of the Housing and Urban Development Act of 1965 (12 U.S.C.
1701s).</text>
</subparagraph><subparagraph id="HFFEDFB2D15494C27950F42263C21496A"><enum>(D)</enum><text>Section 202 of the
Housing Act of 1959 (12 U.S.C. 1701q).</text>
</subparagraph><subparagraph id="H0BDF2D1E78414C739553B0F20FDCFB56"><enum>(E)</enum><text>The below-market
interest rate program under paragraphs (3) and (5) of 221(d)(3) of the National
Housing Act (12 U.S.C. 1715(d) (3) and (5)).</text>
</subparagraph><subparagraph id="H20F5CBE88C7B4D02AC004D7C93C01AA8"><enum>(F)</enum><text>Section 221(d)(4)
of the National Housing Act (12 U.S.C. 1715(d)(4)), to the extent the project’s
rents are restricted pursuant to a government agreement.</text>
</subparagraph><subparagraph id="H8F202846B0CB47E4A1976BE97E46C6AD"><enum>(G)</enum><text display-inline="yes-display-inline">A contract under section 236(f)(2) of the
National Housing Act (12 U.S.C. 1715z–1(f)(2)).</text>
</subparagraph><subparagraph id="H426DC2B70B144744B43784441F8C7E6C"><enum>(H)</enum><text>Section 236 of the
National Housing Act (12 U.S.C. 1715z–1) and any comparable State program
providing for interest reduction payments or rental assistance payments.</text>
</subparagraph><subparagraph id="H4F64B34C787F439791904BDAB6D0A1DE"><enum>(I)</enum><text>Sections 514, 515,
and 516 of the Housing Act of 1949 (42 U.S.C. 1484, 1485, and 1486).</text>
</subparagraph><subparagraph id="H326BDDB18951453888FCDB69C5A2701E"><enum>(J)</enum><text>Section 521 of the
Housing Act of 1949 (42 U.S.C. 1490a).</text>
</subparagraph><subparagraph id="H4E50298C7EE44BB798E0313A16241335"><enum>(K)</enum><text>The urban
development action grant program under section 119 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5318), to the extent that the affordability
of dwelling units subject to such program are restricted pursuant to a
government agreement.</text>
</subparagraph><subparagraph commented="no" id="H5EE902755B2947F8AD22DE67CE922C7B"><enum>(L)</enum><text>The rental
development grant program under section 17(d) of the United States Housing Act
of 1937 (42 U.S.C. 1437o), as in effect before October 1, 1989, to the extent
that rents of a project assisted under such program are restricted pursuant to
a government agreement.</text>
</subparagraph></paragraph><paragraph id="H1C49DBE94E554E888F7C247D2E01BB1F"><enum>(5)</enum><header>Department</header><text display-inline="yes-display-inline">The term <quote>Department</quote> means
the Department of Housing and Urban Development.</text>
</paragraph><paragraph id="HE15CDAF5FD8E4E22B1AC3B9F09F50D9B"><enum>(6)</enum><header>Low-income
family</header><text>The term <quote>low-income family</quote> has the meaning
given such term in section 3(b) of the Unites States Housing Act of 1937 (42
U.S.C. 1437a(b)).</text>
</paragraph><paragraph id="H42735A5BA8C74E2A8208145EFFD735BA"><enum>(7)</enum><header>Owner</header><text>The
term <quote>owner</quote> means, with respect to covered housing, the person,
firm, partnership, corporation, trust, organization, limited liability company,
or other entity, or its successors or assigns, that holds title to the
housing.</text>
</paragraph><paragraph id="H4CE097111E394F1E868784B4FA3BBED4"><enum>(8)</enum><header>Prepayment</header><text>The
term <quote>prepayment</quote> means—</text>
<subparagraph id="HA460D411D2F44B34B732C9FF33D43D8C"><enum>(A)</enum><text>the payment in
full, or the refinancing, of a federally insured or federally held mortgage
loan indebtedness prior to the original maturity date,</text>
</subparagraph><subparagraph id="H2560A6FB6CEE43D6AB0CD488ADF52704"><enum>(B)</enum><text>the voluntary
cancellation of mortgage insurance on covered housing, or</text>
</subparagraph><subparagraph id="H7E4EB56207014669AED8D183A5A97D82"><enum>(C)</enum><text>the payment in
full of a government contract,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">any of which
would have the effect of removing (i) the affordability restrictions applicable
to covered housing, or (ii) a requirement to renew any such affordability
restrictions</continuation-text></paragraph><paragraph id="H97C9D2538A354DCC860DD08BC5FF6D72"><enum>(9)</enum><header>Purchase
contract</header><text>The term <quote>purchase contract</quote> means a
binding written agreement under which an owner agrees to sell covered housing
including, without limitation, a purchase and sale agreement, contract of sale,
purchase option, or other similar instrument.</text>
</paragraph><paragraph id="H40EE6FF2955F4A249A67F43A9B717E03"><enum>(10)</enum><header>Resident
council</header>
<subparagraph id="H3EF0D82FC81040F393842A4315308F0F"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The term
<quote>resident council</quote> means, with respect to covered housing, any
incorporated nonprofit organization or association that—</text>
<clause id="HA9EB825E15954614A260CAAAF8B88AA7"><enum>(i)</enum><text>is
representative of the residents of the covered housing;</text>
</clause><clause id="HAFC27F05C88E433DAC6168671DDC4A6E"><enum>(ii)</enum><text>adopts written
procedures providing for the election of officers on a regular basis;
and</text>
</clause><clause id="H9DAE48A403BB4A8E9784EC74CCC678E0"><enum>(iii)</enum><text>has a
democratically elected governing board, elected by the residents of the covered
housing.</text>
</clause></subparagraph><subparagraph id="H026F654A38F44A80B8017167BF5A8501"><enum>(B)</enum><header>Limitation</header><text display-inline="yes-display-inline">No owner of covered housing or other third
party shall be required to ascertain an organization’s or association’s
compliance with the requirements of subparagraph (A).</text>
</subparagraph></paragraph><paragraph id="H5E5028CB155B472A8F2DB33E6DD716BC"><enum>(11)</enum><header>Sale</header>
<subparagraph id="H6EBFBEB5B7444ED297AE3F45636284F4"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">The term
<quote>sale</quote> means an act by which an owner conveys, transfers, or
disposes property by deed or otherwise, whether through a single transaction,
or a series of transactions, during a 2-year period.</text>
</subparagraph><subparagraph id="HBBCFD676F5FE4021AAC8B13C4AEDF779"><enum>(B)</enum><header>Limitation</header><text>Such
term does not include disposition of covered housing by an owner to an
affiliate of such owner.</text>
</subparagraph></paragraph><paragraph id="HF7281A2AD7214328A38180DBB7D8D0B7"><enum>(12)</enum><header>Secretary</header><text>The
term <quote>Secretary</quote> means the Secretary of Housing and Urban
Development.</text>
</paragraph><paragraph id="HFD215902E5C3420AA690635207DFD48C"><enum>(13)</enum><header>State housing
agency</header><text>The term <quote>State housing agency</quote> means the
department of housing or department of housing and community development of a
State, or any comparable State agency.</text>
</paragraph><paragraph id="H777DF20C241D4AD5A56C775CF42B3C0C"><enum>(14)</enum><header>Tenant</header><text>The
term <quote>tenant</quote> means, with respect to covered housing, a person
entitled to possession or occupancy of a rental unit within the covered
housing, including a subtenant, lessee, and sublessee.</text>
</paragraph><paragraph id="HBD391D353F57445795D703B498678012"><enum>(15)</enum><header>Termination</header><text display-inline="yes-display-inline">The term <quote>termination</quote> means,
with respect to covered housing, the date that—</text>
<subparagraph id="H1C340E36B70546308350461F968E0B54"><enum>(A)</enum><text>the mortgage or
loan for the housing matures and the affordability restrictions applicable to
the housing because of assistance for the housing pursuant to a program
referred to in paragraph (4) terminate with respect to the housing;</text>
</subparagraph><subparagraph id="HC5A97B46E6B24EE39F9B31A53C3986B7"><enum>(B)</enum><text>an assistance
contract under a program referred to in paragraph (4) for the housing that is
not renewed, terminates, or expires;</text>
</subparagraph><subparagraph id="H8D506EA064C847149532E241646AB8E6"><enum>(C)</enum><text>in the case of
housing that is not eligible low-income housing, as such term is defined in
section 229 of the Low-Income Housing Preservation and Resident Homeownership
Act of 1990 (12 U.S.C. 4119), the mortgage or loan that covers the housing is
prepaid or an insurance contract that covers the housing terminates; or</text>
</subparagraph><subparagraph id="HF3B7285974E34CE4932AFB16B88F96CE"><enum>(D)</enum><text>use restrictions
imposed with respect to the housing pursuant to the Emergency Low Income
Housing Preservation Act of 1987 expire.</text>
</subparagraph></paragraph></subsection><subsection id="HE7CE80AD2B1D493CA43CC18DF2955ABD"><enum>(i)</enum><header>Regulations</header><text display-inline="yes-display-inline">The Secretary shall issue regulations to
carry out this section not later than the effective date under subsection (j).
This subsection shall take effect upon the date of the enactment of this Act.</text>
</subsection><subsection id="H9FC9FE0A499D4786B820A11093C6E803"><enum>(j)</enum><header>Effective
date</header><text display-inline="yes-display-inline">Except as otherwise
specifically provided in this section, this section shall take upon the
expiration of the 180-day period beginning on the date of the enactment of this
Act.</text>
</subsection></section><section id="H2A55833D2E044F59837FED73B60F98A3"><enum>108.</enum><header>Amendment to
Low-Income Housing Preservation and Resident Homeownership Act of
1990</header><text display-inline="no-display-inline">Section 232 of the
Low-Income Housing Preservation and Resident Homeownership Act of 1990 (12
U.S.C. 4122) is amended—</text>
<paragraph commented="no" id="HBDCD62FAFFA54571A389C2737BF125FB"><enum>(1)</enum><text>in subsection (a),
by striking <quote>No State</quote> and inserting <quote>Except as provided in
subsection (c), no State</quote>; and</text>
</paragraph><paragraph id="H4352CC5D8C914EFD811666CF8BBD6DB5"><enum>(2)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H35F297D892844F72A66B3164AC77046B" style="OLC">
<subsection id="HEBFE4500FC394FD6836C18357DCEE8D5"><enum>(c)</enum><header>Inapplicability
to housing for which no plan of action is executed</header><text display-inline="yes-display-inline">Preemption
under subsection (a) shall not apply to eligible low-income housing for which
an owner has not executed a plan of action for incentives under this
subtitle.</text>
</subsection><subsection id="HD2B884D43E6B4A76956D107DE6D021FD"><enum>(d)</enum><header>Clarification of
congressional intent regarding Federal preemption</header><text display-inline="yes-display-inline">State and local laws intended to further
the preservation of affordable housing or to protect tenants when owners
propose to terminate their participation in Federal affordable housing programs
are not preempted by Federal law, except as expressly required by the terms of
any applicable Federal
statute.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" id="H890286E0385842FABC93A790DBF16531"><enum>109.</enum><header>Preservation of
HUD-held and HUD-owned buildings</header>
<subsection id="HB93E8AC4D158442B97EF321080991AA3"><enum>(a)</enum><header>Use of all
available enforcement and intervention tools</header><text display-inline="yes-display-inline">To maximize the preservation of existing
housing assisted by the Department of Housing and Urban Development, the
Secretary of Housing and Urban Development shall utilize all available
enforcement and intervention tools to stabilize properties in distress,
including acting as mortgagee-in-possession, accepting deeds in lieu of
foreclosure from owners, and exercising rights under applicable program
contacts and regulations.</text>
</subsection><subsection id="HDB0D4A4B3D49452DA7FB6A129B108078"><enum>(b)</enum><header>Management and
disposition authority</header><text display-inline="yes-display-inline">Subsection (a) of 204 of the Departments of
Veterans Affairs and Housing and Urban Development, and Independent Agencies
Appropriations Act, 1997 (12 U.S.C. 1715z–11a(a)) is amended—</text>
<paragraph commented="no" id="HEE2E00E7E11B4401AFE82ADF259B8B25"><enum>(1)</enum><text>by striking
<quote>During</quote> and all that follows through <quote>and thereafter, the
provision of</quote> and inserting <quote>In managing and disposing of
multifamily properties that are owned by the Secretary or that have mortgages
held by the Secretary, during any fiscal year, the Secretary may
provide</quote>;</text>
</paragraph><paragraph commented="no" id="H053EA7102A314EC69D528411867D052A"><enum>(2)</enum><text>by striking
<quote>and multifamily mortgages held by the Secretary</quote>; and</text>
</paragraph><paragraph commented="no" id="H8A376C4406704A01BE0F05C20179968A"><enum>(3)</enum><text>by striking
<quote>notwithstanding any other provision</quote> and inserting
<quote>consistent with other applicable provisions</quote>.</text>
</paragraph></subsection></section><section commented="no" id="HE85C69628DD6494A9790F498A38A9BD1"><enum>110.</enum><header>Authority for
HUD to assign flexible subsidy loans</header><text display-inline="no-display-inline">The Secretary of Housing and Urban
Development may, in connection with a preservation transaction or transfer of
an assisted project to an owner that commits to long-term use and affordability
restrictions with respect to the property to forgive or assign to the
transferee any debt held by the Secretary that was created pursuant to section
201 of the Housing and Community Development Amendments of 1978 (12 U.S.C.
1715z–1a), if required for the financial viability of the preservation
transaction or the transfer. If any low-income housing tax credits under
section 42 of the Internal Revenue Code of 1986 (26 U.S.C. 42), State or local
funds, tax-exempt housing bonds, or other affordable housing resources are
being utilized by the purchaser in connection with the transfer of the
property, the Secretary shall not require any repayment in connection with the
assignment or forgiveness of the mortgages to the purchaser.</text>
</section><section id="H7891EFAAE08C496A95E40B10D3EA4A1F"><enum>111.</enum><header>Use of existing
section 8 funds to preserve and revitalize affordable housing</header><text display-inline="no-display-inline">Section 8 of the United States Housing Act
of 1937 (42 U.S.C. 1437f) is amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="HF40CE006BF72463C9C32843D3A537221" style="OLC">
<subsection id="HE71233300B714D099DFA098C5F3E15DE"><enum>(ff)</enum><header>Affordable
housing preservation and revitalization program</header>
<paragraph id="H4BB4F521EDAA4BBFB008F45199BF2C30"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary of
Housing and Urban Development shall ensure that funds in the residual receipts
account of an eligible multifamily housing property are, at the time of a
qualified sale or pursuant to an approved rehabilitation plan approved by the
Secretary or the section 8 contract administrator, transferred or released, in
conjunction with an approved rehabilitation plan, to the acquiring
owner.</text>
</paragraph><paragraph id="H68C0C5A9D17E413EA87B2ECCDAA964A5"><enum>(2)</enum><header>Use of residual
receipt funds by purchaser</header><text display-inline="yes-display-inline">An
owner that acquires an assisted multifamily housing property through a
qualified sale shall, subject to the approval of the Secretary, use the funds
in the residual receipts account transferred to it, or for its benefit—</text>
<subparagraph id="HD0E509573BFA45F3BA7DD900C59AB7EE"><enum>(A)</enum><text>to pay for
rehabilitation costs;</text>
</subparagraph><subparagraph id="HB90488FD469847DEAD68702E3B9906A1"><enum>(B)</enum><text>to deposit funds
into the replacement reserve account of the property;</text>
</subparagraph><subparagraph id="H373AE6E0038F4499A76C7704345A47CE"><enum>(C)</enum><text>to pay for social
and other services that directly benefit the tenants of such property;</text>
</subparagraph><subparagraph id="HC4AEE556B9FD4C8AA35C0E0981B25994"><enum>(D)</enum><text>to pay for costs
associated with the acquisition of the property; and</text>
</subparagraph><subparagraph id="H1F469BE1979C4EF598666BD4DE0E055E"><enum>(E)</enum><text>to pay for any
other costs, as determined eligible by the Secretary.</text>
</subparagraph></paragraph><paragraph id="H9759A287CC0240CF9E7214AA85129EE0"><enum>(3)</enum><header>Use of residual
receipts by owners to preserve and renew affordable housing</header><text display-inline="yes-display-inline">Subject to approval and any requirements
established by the Secretary, an owner of an eligible multifamily housing
property may use funds in the residual receipts account for the property
to—</text>
<subparagraph id="H337C751DFCEC4FA79C2E78C10DD6AAC9"><enum>(A)</enum><text>reduce operating
or cash flow deficits when such use would prevent an increase in rental rates
for tenants;</text>
</subparagraph><subparagraph id="H93F16707497940A79110736D7ED00DCB"><enum>(B)</enum><text>make a mortgage
payment when a mortgage default is actual or imminent;</text>
</subparagraph><subparagraph id="HCA33D387613643B1B1B218B94A438C7C"><enum>(C)</enum><text>pay for
rehabilitation costs, which may include—</text>
<clause id="H5DAF4A26BF4843EB88BB58C512BA7866"><enum>(i)</enum><text>making repairs to
the property not otherwise covered by a reserve for replacements or other
similar fund;</text>
</clause><clause id="HE070E7AF8BAA41F19716B9FC61F49D5B"><enum>(ii)</enum><text>providing
additional project amenities and improvements, such as air conditioning, a
sprinkler system, fire or smoke detectors, energy saving devices or
improvements, office equipment, and computers and associated software;
and</text>
</clause><clause id="HFAE735AFEE8C4029AE05B9932AB01B3A"><enum>(iii)</enum><text>making
enhancements to the property or retrofit units to enhance accessibility;</text>
</clause></subparagraph><subparagraph id="H4B44654C3EAB4D72B0F2B6E23ACBC08C"><enum>(D)</enum><text>pay accrued,
allowable distributions in cases in which insufficient surplus cash is
available;</text>
</subparagraph><subparagraph id="H7335A6509FE04DB4991F64F711E56DA0"><enum>(E)</enum><text>repay residual
receipt notes approved by the Secretary;</text>
</subparagraph><subparagraph id="H1B045968528447448F7F3A0474D7D272"><enum>(F)</enum><text>repay flexible
subsidy operating assistance or capital improvements loans provided under
section 201 of the Housing and Community Development Amendments of 1978 (12
U.S.C. 1715z–1a);</text>
</subparagraph><subparagraph id="HFECC3A8F72D0403F96193A162D6EDE22"><enum>(G)</enum><text>provide for
testing or abatement of lead-based paint at the property;</text>
</subparagraph><subparagraph id="H308EA2E360EB434BB7BF7468050D98EC"><enum>(H)</enum><text>provide for social
and other services that directly benefit the tenants of such property;
and</text>
</subparagraph><subparagraph id="H8AAB245623C345C6BA8AA28AD0CB5B37"><enum>(I)</enum><text>pay for any costs
or purposes, as determined eligible by the Secretary.</text>
</subparagraph></paragraph><paragraph commented="no" id="HF599D995B0C84540898ADC8B51B87D31"><enum>(4)</enum><header>Delegation of
authority to section 8 contract administrator or other entity</header><text display-inline="yes-display-inline">At the request of a section 8 contract
administrator or other appropriate entity, as determined by the Secretary, that
administers assistance referred to in paragraph (5)(A)(i) with respect to an
eligible multifamily housing property, the Secretary may delegate to such
agency the authority of the Secretary under paragraph (2) or (3), or both, to
approve the use of funds in residual receipt accounts for properties so
assisted by such agency as provided in such paragraph or paragraphs.</text>
</paragraph><paragraph id="HA4104B7A6CFD4EE0A2E96B0630B1B86E"><enum>(5)</enum><header>Definitions</header><text>For
purposes of this subsection, the following definitions shall apply:</text>
<subparagraph id="H5EF2B81BF14146C4B850069EBEFDDD51"><enum>(A)</enum><header>Eligible
multifamily housing property</header><text display-inline="yes-display-inline">The term <quote>eligible multifamily
housing property</quote> means a property that—</text>
<clause id="H881887BCF54649C2824CA3CFF6CC5507"><enum>(i)</enum><text>is
assisted under any program providing project-based assistance under section 8
of the United States Housing Act of 1937 (42 U.S.C. 1437f); and</text>
</clause><clause id="H8603BBAD64D04A63A0A8A49FBEC16C13"><enum>(ii)</enum><text>is subject to
regulations of the Secretary in effect on the date of enactment of this
subsection that require remittance of excess funds to the Secretary upon
termination of the project-based assistance contract.</text>
</clause></subparagraph><subparagraph id="H507A9868D47F471D8AF397F505A3A322"><enum>(B)</enum><header>Qualified
sale</header>
<clause id="H657112DA555E4E1B906E34E01D6F4797"><enum>(i)</enum><header>In
general</header><text>The term <term>qualified sale</term> means the sale or
other transfer of an eligible multifamily housing property to an owner who
agrees to maintain affordability and use restrictions regarding the property
that are—</text>
<subclause id="H28FFA52A0F4F44C9B14DBEBBCABC628C"><enum>(I)</enum><text>for a term of not
less than 30 years from the time of the qualified sale; and</text>
</subclause><subclause id="HF5C7496731E0423480E21982BCF27C88"><enum>(II)</enum><text>legally
enforceable.</text>
</subclause></clause><clause id="HE8D3D88AD3DB4D73A5C225E0BA31C3FD"><enum>(ii)</enum><header>Future
applicability of restrictions</header><text>The restrictions under subparagraph
(A) shall be—</text>
<subclause id="HA8D3E4ADF6DD4F5F97BFE2562956ADA5"><enum>(I)</enum><text>binding on all
successors and assigns of the qualified preservation owner; and</text>
</subclause><subclause id="HA9F3E7D2A94949A29189C0615BBDB67E"><enum>(II)</enum><text>recorded as a
restrictive covenant on the property pursuant to State law.</text>
</subclause></clause></subparagraph><subparagraph id="H90866ACEEC0240A394452BFD3E711C03"><enum>(C)</enum><header>Residual
receipts</header><text>The term <term>residual receipts</term> means—</text>
<clause id="H29F686A56E1648A591DB0821716DE2B0"><enum>(i)</enum><text>funds generated by
a property in excess of the amount needed for operating expenses, operating
reserve requirements, and allowable distributions to project owners; and</text>
</clause><clause id="H09200DBC931F44738F5A695620E5D3F7"><enum>(ii)</enum><text>includes any
other funds that the Secretary, in his or her discretion, designates as
residual receipts.</text>
</clause></subparagraph></paragraph><paragraph id="HC70BAC68EA81486EA3054460503D005F"><enum>(6)</enum><header>Residual
receipts not treated as Federal funds</header><text>For the purposes of section
42 of the Internal Revenue Code of 1986, residual receipts used or transferred
under this section shall not be considered Federal
funds.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H06BFF5834C7948A8B2019CC8649C53B4"><enum>112.</enum><header>Authority for
Ginnie Mae to securitize FHA risk-sharing mortgages</header>
<subsection id="HC38B870281254FE8801D692F42C7A387"><enum>(a)</enum><header>Authority</header><text display-inline="yes-display-inline">Section 542 of the Housing and Community
Development Act of 1992 (12 U.S.C. 1715z–22) is amended—</text>
<paragraph commented="no" id="H68EA056A976145838D947F2C4DF9EC86"><enum>(1)</enum><text>in subsection (b),
by striking paragraph (8) and inserting the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H5179FE4816244AEE9915B682E1C0CDC8" style="OLC">
<paragraph commented="no" id="H0D6212C675704F41842929B94E996FF9"><enum>(8)</enum><header>Ginnie Mae
securitization</header><text display-inline="yes-display-inline">The Government
National Mortgage Association may securitize any multifamily loan insured or
reinsured under this subsection under the same terms and conditions as if the
loan were insured under the National Housing
Act.</text>
</paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H9E7BADF559E5482BBE9788F7BE399DF5"><enum>(2)</enum><text>in subsection (c),
by striking paragraph (6) and inserting the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H4CD7B02616A54AF98CBBF3F21BC9CB5D" style="OLC">
<paragraph id="HD7CFB3DFF9FB475390FC6FF08300E044"><enum>(6)</enum><header>Ginnie Mae
securitization</header><text display-inline="yes-display-inline">The Government
National Mortgage Association may securitize any multifamily loan insured under
this subsection under the same terms and conditions as if the loan were insured
under the National Housing
Act.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H328F8D5A132D4F739BCEDC75F0E8398B"><enum>(b)</enum><header>Limitation</header><text display-inline="yes-display-inline">Section 542 of the Housing and Community
Development Act of 1992 is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="H8236D8CB45A74B4FA6A817CDB29D2640" style="OLC">
<subsection id="H08149EC027874493BDEA029185851385"><enum>(d)</enum><header>Limitation</header><text display-inline="yes-display-inline">In carrying out subsections (b)(8) and
(c)(6), the Secretary shall prohibit State housing finance agencies from giving
preference to, or conditioning the approval of, awards of subordinate debt
funds, allocation of tax credits, or tax exempt bonds based on the use of
financing for the first mortgage that is provided by such State housing finance
agency.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H842E9FA09CF44CDCB36EFAD5375576BE"><enum>(c)</enum><header>Conforming
amendment</header><text display-inline="yes-display-inline">Clause (ii) of the
first sentence of section 306(g)(1) of the National Housing Act (12 U.S.C.
1721(g)(1)) is amended by inserting before the period at the end the following:
<quote>; or insured or reinsured under subsection (b) or (c) of section 542 of
the Housing and Community Development Act of 1992, subject to the terms of
paragraph (8) or (6), respectively, of such subsection</quote>.</text>
</subsection></section><enum>II</enum><header>Restoration of
Housing at Risk of Loss Due to Deterioration</header>
<section id="HF9606D74B8874EA1B06D30F6D3322F2E"><enum>201.</enum><header>Authority to
transfer rental assistance to other properties</header>
<subsection id="H54E3FEE4CF2E4B3B8CD659118BBF8422"><enum>(a)</enum><header>Authority</header><text display-inline="yes-display-inline">Subject to subsection (b) and
notwithstanding any other provision of law, the Secretary of Housing and Urban
Development may authorize the transfer of some or all of project-based
assistance, debt, interest reduction payments, and statutorily required
low-income and very low-income use restrictions, associated with one or more
covered multifamily housing properties to another covered multifamily housing
property or properties located in the same metropolitan area.</text>
</subsection><subsection id="H941E5186988E47BDABAD01CB51ECBF26"><enum>(b)</enum><header>Phased
transfers</header><text display-inline="yes-display-inline">Transfers of
project-based assistance under this section may be done in phases to
accommodate the financing and other requirements related to improving or
constructing the property or properties to which the assistance is transferred
to ensure that such property or properties meet the standards under subsection
(c).</text>
</subsection><subsection id="H2E89C0EA6339409CB82655D4B055FF2E"><enum>(c)</enum><header>Conditions</header><text>A
transfer authorized in subsection (a) shall be subject to the following
conditions:</text>
<paragraph id="H716C9BB50759450591AB440A0AFE7FCA"><enum>(1)</enum><header>Total number of
low-income units</header><text display-inline="yes-display-inline">The number
of low-income and very low-income dwelling units provided by the transferring
property or properties shall remain the same as the number of such dwelling
units in the receiving property or properties. Upon transfer of subsidy,
vacant, nonviable, or obsolete units may be replaced with units that meet the
demands of the local waiting list for assistance under section 8 of the United
States Housing Act of 1937 (42 U.S.C. 1437f) or current market demand, but only
if there is no impact on assisted residents of such units.</text>
</paragraph><paragraph id="H8147D8A8658C4C3CA65553EFF4CD54A5"><enum>(2)</enum><header>Net amount of
assistance</header><text display-inline="yes-display-inline">The net dollar
amount of Federal assistance provided to the transferring property or
properties shall remain the same as the net dollar amount of Federal assistance
provided to the receiving property or properties, unless an increase in Federal
assistance is necessary to secure project financing, to allow rent increases
permitted under the Multifamily Affordable Housing Reform and Affordability Act
of 1997 (42 U.S.C. 1437f note), to accommodate allowable reconfigurations of
the units and bedrooms, or to allow standard contract extensions, or
simultaneous termination of current contracts with extensions of new contract
authority, similar to that extended to comparable properties, as determined by
the Secretary.</text>
</paragraph><paragraph id="H05410F3912C64936AB43CC8E3C733C41"><enum>(3)</enum><header>Condition of
transferring property</header><text>The transferring property shall, as
determined by the Secretary, be physically obsolete or economically
non-viable.</text>
</paragraph><paragraph id="H11743D76FCC24492BC0F2362FC33CD99"><enum>(4)</enum><header>Condition of
receiving property</header><text>The receiving property shall meet or exceed
applicable physical standards established by the Secretary within a reasonable
period of time, as determined by the Secretary.</text>
</paragraph><paragraph id="HD36A7857DCB242CE91A51B1D4421D23E"><enum>(5)</enum><header>Tenant
protection</header>
<subparagraph id="HF300E2B652F446F5A34C3BAE6398F323"><enum>(A)</enum><header>Notification and
consultation</header><text display-inline="yes-display-inline">The owner or
mortgagor of the transferring property shall notify and consult with the
tenants of the transferring property concerning all significant elements of the
transfer plan, including the identification of receiving properties and any
proposed additional ownership entities.</text>
</subparagraph><subparagraph id="HC5DC9F0A2EDD4AB09911285FE049C201"><enum>(B)</enum><header>Best interest of
tenants; fair housing</header><text>The transfer shall, as determined by the
Secretary—</text>
<clause id="H3403427AA38345F3B383823FDE6861FA"><enum>(i)</enum><text>be
in the best interest of the tenants; and</text>
</clause><clause id="H9F4175E397F042258D235BAC48F4B154"><enum>(ii)</enum><text>comply with
applicable statutes and regulations relating to fair housing.</text>
</clause></subparagraph></paragraph><paragraph id="H2CAE39DEF4D642CFB4DA6D2EB4EA800F"><enum>(6)</enum><header>Availability of
new units</header><text display-inline="yes-display-inline">The tenants of the
transferring property shall not be required to vacate their dwelling units in
the transferring property until new units in the receiving property or
properties are available for occupancy, including a phase or phases of a
multi-phase project or projects that are available for occupancy. Tenants may
choose to be temporarily relocated to facilitate their transition to the
receiving property according to relocation procedures set forth in the Uniform
Relocation Assistance and Real Property Acquisition Act of 1970 (42 U.S.C. 4601
et seq.).</text>
</paragraph><paragraph id="H1C4F429306A14320A8737FD7914F92E4"><enum>(7)</enum><header>Mortgages under
National Housing Act</header><text>Any lien on the receiving property resulting
from additional financing obtained by the owner shall be subordinate to any
lien under a mortgage insured under the National Housing Act that is
transferred to, or placed on, such property by the Secretary, except that the
Secretary may waive this requirement upon determination that such waiver is
necessary to facilitate the financing of acquisition, construction, or
rehabilitation of the receiving property.</text>
</paragraph><paragraph id="H53C0906BA2E54139A6D30DA30C506C7F"><enum>(8)</enum><header>Housing subject
to a use agreement</header><text>The owner or mortgagor of the receiving
property shall execute and record a continuation of the existing use agreement
or a new use agreement for the property containing use restrictions having a
duration at least as long as the existing restrictions.</text>
</paragraph><paragraph id="H3BC03DCD176B4BE2B94E5815FABFF9B6"><enum>(9)</enum><header>No increase of
risk to insurance funds</header><text display-inline="yes-display-inline">The
transfer under this section shall result in no increase in financial risk to
the General and Special Risk Insurance Funds of the Secretary, as determined by
the Secretary, except that the Secretary may waive this requirement upon
determination that such waiver is necessary to facilitate the financing of
acquisition, construction, or rehabilitation of the receiving property.</text>
</paragraph><paragraph id="H74006B87AF004B86B01C58A4A27FEE20"><enum>(10)</enum><header>No increase of
Federal liability</header><text display-inline="yes-display-inline">Federal
liability with regard to the receiving property shall not be increased, as
determined by the Secretary, except as provided in paragraph (2).</text>
</paragraph></subsection><subsection id="H23B38926EF5F4A2787E7FE9CECBDE637"><enum>(d)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<paragraph id="H79829181330048DFAA96445649668286"><enum>(1)</enum><header>Covered
multifamily housing property</header><text>The term <quote>covered multifamily
housing property</quote> means housing that is assisted or insured under one or
more of the following programs:</text>
<subparagraph id="H1072FE6AF67243FFA94D311756D9C5C0"><enum>(A)</enum><text>The rent
supplement program under section 101 of the Housing and Urban Development Act
of 1965 (12 U.S.C. 1701s).</text>
</subparagraph><subparagraph id="HE17A25D2DF814CF6B92FCCB6F7432988"><enum>(B)</enum><text>The below-market
interest rate mortgage insurance program under section 221(d)(3) of the
National Housing Act (12 U.S.C. 17151(d)(3)).</text>
</subparagraph><subparagraph id="H4C1706C043114F96BA6721044C6D7244"><enum>(C)</enum><text>The program for
assistance provided under the proviso in section 221(d)(5) of the National
Housing Act (12 U.S.C. 17151(d)(5)).</text>
</subparagraph><subparagraph id="H2E5806E33BD940D29EBE928A587981A5"><enum>(D)</enum><text display-inline="yes-display-inline">A contract under section 236(f)(2) of the
National Housing Act (12 U.S.C. 1715z–1(f)(2)).</text>
</subparagraph><subparagraph id="HE147D72A376F4765952BA229D208A07F"><enum>(E)</enum><text>The program for
interest reduction payments under section 236 of the National Housing Act (12
U.S.C. 1715z–1) or a comparable State program providing for interest reduction
payments.</text>
</subparagraph><subparagraph id="H3E315A3062E143A18E729D033CB86DDC"><enum>(F)</enum><text>Any other mortgage
insurance program provided under the National Housing Act for which the insured
property is subject to budget-based rent restrictions.</text>
</subparagraph><subparagraph id="H2E52C1D49A3447759243D3EA917A2683"><enum>(G)</enum><text>The program for
supportive housing for the elderly under section 202 of the Housing Act of 1959
(12 U.S.C. 1701q), including assistance under such section as was in effect
before the enactment of the Cranston-Gonzales National Affordable Housing
Act.</text>
</subparagraph><subparagraph id="H9D55748455C3412D8930ADC7B4DB7AE1"><enum>(H)</enum><text>The program for
rural rental housing under section 515 of the Housing Act of 1949 (42 U.S.C.
1485).</text>
</subparagraph><subparagraph id="H2C6F8A1AF1274B80A45B3D7F194E8BFF"><enum>(I)</enum><text>Any program
providing project-based assistance that is attached to the structure.</text>
</subparagraph><subparagraph id="H1BD2231332F2469AA3A2E566FBCC97B8"><enum>(J)</enum><text>Any other program
under which the Secretary provides any rental assistance, mortgage insurance,
subsidy, or other financial assistance.</text>
</subparagraph></paragraph><paragraph id="H3CA0971AD2C947D5A23AFEF4DD2A480A"><enum>(2)</enum><header>Low-income; very
low-income</header><text display-inline="yes-display-inline">The terms
<quote>low-income</quote> and <quote>very low-income</quote>, with respect to a
covered multifamily housing property, shall have the meanings provided under
the laws and regulations governing the program under which the covered
multifamily housing property is insured or assisted.</text>
</paragraph><paragraph id="HA3EA476698CF484E9D2CF84EBEF9C8EC"><enum>(3)</enum><header>Project-based
assistance</header><text>The term <quote>project-based assistance</quote>
means—</text>
<subparagraph id="H191012A9913A488A86C38647F0E4B4A1"><enum>(A)</enum><text>assistance
provided under section 8(b) of the United States Housing Act of 1937 (42 U.S.C.
1437f(b)), including the additional assistance program;</text>
</subparagraph><subparagraph id="HB6556152F2E24AAE92C8B310516697EE"><enum>(B)</enum><text>assistance for
housing constructed or substantially rehabilitated pursuant to assistance
provided under section 8(b)(2) of such Act (as such section was in effect
immediately before October 1, 1983);</text>
</subparagraph><subparagraph id="H704B73ED0CB344878B850D88C1B8AA82"><enum>(C)</enum><text>rent supplement
payments under section 101 of the Housing and Urban Development Act of 1965 (12
U.S.C. 1701s);</text>
</subparagraph><subparagraph id="HD3566FBBA0214143A2C8452CCB2ADBFA"><enum>(D)</enum><text>additional
assistance payments under section 236(f)(2) of the National Housing Act (12
U.S.C. 1715z–1(f)(2)) or a comparable State program providing for interest
reduction payments;</text>
</subparagraph><subparagraph id="H6E63E1776CFE4FACA6D2435768436264"><enum>(E)</enum><text>payments made
under section 202(c)(2) of the Housing Act of 1959 (12 U.S.C. 1701q(c)(2));
and</text>
</subparagraph><subparagraph id="H8CD096ABC5E94374ADF8F99AFDA655D0"><enum>(F)</enum><text>payments made
under any other Federal program under which rental assistance is attached to
the structure.</text>
</subparagraph></paragraph><paragraph id="H1CABC50BBB864B39B28E296BE0AE6BE9"><enum>(4)</enum><header>Receiving
property</header><text>The term <quote>receiving property</quote> means, with
respect to a transfer of project-based assistance, debt, and statutorily
required low-income and very low-income use restrictions under this section,
the covered multifamily housing property or properties to which the assistance,
debt, and use restrictions are to be transferred.</text>
</paragraph><paragraph id="HAD61193C07E9407B8E456D26096A9E5B"><enum>(5)</enum><header>Secretary</header><text>The
term <quote>Secretary</quote> means the Secretary of Housing and Urban
Development.</text>
</paragraph><paragraph id="H5206C81D614C4C3C9A8CB9128772212B"><enum>(6)</enum><header>Transferring
property</header><text>The term <quote>transferring property</quote> means,
with respect to a transfer of project-based assistance, debt, and statutorily
required low-income and very low-income use restrictions under this section,
the covered multifamily housing property or properties from which the
assistance, debt, and use restrictions are to be transferred.</text>
</paragraph></subsection></section><section id="H843AF075023B4ACBBBF41B462955790A"><enum>202.</enum><header>Building
transfers: requirements for purchasers of FHA insured projects and section 8
projects</header>
<subsection id="H72DBC6CA13B84A1498142DF70ACB7601"><enum>(a)</enum><header>Requirements for
potential purchasers</header><text display-inline="yes-display-inline">Not
later than 90 days after the date of the enactment of this Act, the Secretary
of Housing and Urban Development shall issue a proposed rulemaking, in
accordance with title 5, United States Code, that applies the participation and
certification requirements for potential purchasers required under section 219
of Division G of the Consolidated Appropriations Act, 2004 (Public Law 108–199;
118 Stat. 397) to the sale or transfer of any multifamily housing having a
mortgage that is insured or receives assistance under the National Housing Act
or for which project-based assistance is provided under section 8 of the United
States Housing Act of 1937 (42 U.S.C. 1437f).</text>
</subsection><subsection id="HCA5F2100E04A409A8AC6725BF524D228"><enum>(b)</enum><header>Notice to local
government and residents of application for transfer</header><text>The
Secretary shall provide notice of an owner’s application for approval of any
such transfer to the unit of local government where the property is located,
and to the residents of the property, using procedures required under the
Housing and Community Development Amendments of 1978.</text>
</subsection><subsection id="HE45BE3EE8C36480FA159EAAAEA5DAC9B"><enum>(c)</enum><header>Grounds for
disapproval</header><text>Grounds for disapproval of a transfer may
include—</text>
<paragraph id="H18161CF9AE5B4A239AE0F790135C35B3"><enum>(1)</enum><text>a
purchaser’s record of pervasive or continuing noncompliance under housing,
health, and safety codes with respect to other housing owned or managed by the
purchaser, regardless of location, except where the Secretary determines that
such noncompliance did not result from the actions of the purchaser and would
be satisfactorily remedied by a plan approved by the Secretary; and</text>
</paragraph><paragraph id="H2BE9F7718D5D4A27B2FEE92A72B25B51"><enum>(2)</enum><text>a
risk of financial instability for the project under the terms of the
acquisition, such as indicated by the application of conventional underwriting
standards.</text>
</paragraph></subsection></section><section id="H9E580EE183E548B4B71405CD15B6F627"><enum>203.</enum><header>Use of interest
reduction payments for rehabilitation grants</header><text display-inline="no-display-inline">The Secretary of Housing and Urban
Development may obligate any amounts recaptured from the termination of a
contract for interest reduction payments under section 236 of the National
Housing Act (12 U.S.C. 1715z–1), for the use under subsection (s) of such
section, except that the Secretary shall take immediate action to issue
appropriate guidelines to make such funds available within 180 days after the
date of the enactment of this Act, which shall include the availability of both
loans and grants.</text>
</section><section id="HF4B642BC86F34082B6E7A2570DEBD869"><enum>204.</enum><header>Clarification
of budget-based rent increases for rehabilitated projects</header>
<subsection id="H6EF681D60F1141F591D3C4A488ACFBFB"><enum>(a)</enum><header>Approval of rent
increases</header>
<paragraph id="H0650EC6A87BB4404B6E2DC506AEACB4E"><enum>(1)</enum><header>Approval</header><text display-inline="yes-display-inline">At the request of an owner of a covered
multifamily housing property (which term, for purposes of this section, shall
have the same meaning given such term in section 201(c) of this Act) that meets
the requirements of paragraph (2), the Secretary of Housing and Urban
Development shall, prior to rehabilitation and subject to subsection (b),
adjust project rents on a budget-based basis to support the cost of the
rehabilitation, any increased debt service, and other appropriate costs.</text>
</paragraph><paragraph id="HFE9A6A053CDA4AD98CF01FEBF138FD07"><enum>(2)</enum><header>Requirements</header><text display-inline="yes-display-inline">The requirements of this paragraph with
respect to a covered multifamily housing property are that—</text>
<subparagraph id="H708EF098C19241E7A8A16144738DD88F"><enum>(A)</enum><text>the project is to
undergo rehabilitation; and</text>
</subparagraph><subparagraph id="H87657A204699435EB1F7133E519B84B7"><enum>(B)</enum><text>the owner or
purchaser of the project executes a binding agreement to preserve the project
as affordable housing at least until the later of the maturity date of the
original mortgage for the project or the termination of an assistance contract
on the property.</text>
</subparagraph></paragraph></subsection><subsection id="H247B3E6BE29744E89B0269B9860FC7FD"><enum>(b)</enum><header>Conditions</header><text>Rent
adjustments pursuant to this section for a covered multifamily housing property
shall be subject to the following conditions and requirements:</text>
<paragraph id="H2FF94ABF467445C699A4B0A92A792BD6"><enum>(1)</enum><header>Effectiveness</header><text>Such
rent adjustments shall not become effective until completion of the
rehabilitation of the property.</text>
</paragraph><paragraph id="H78EB31427A8C4A618A01D3F9785C480E"><enum>(2)</enum><header>Amount</header><text display-inline="yes-display-inline">Such rent adjustments shall—</text>
<subparagraph id="H3E6E282CDB5E4F73A55695CDF94CDA7E"><enum>(A)</enum><text display-inline="yes-display-inline">be subject to adjustment by the Secretary
based on differences between estimated and actual costs; and</text>
</subparagraph><subparagraph id="HB85BF26CE11943EF8220909B77759F77"><enum>(B)</enum><text display-inline="yes-display-inline">with respect to units that are assisted
under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437) that
are subject to a renewal contract under section 524(a) of the Multifamily
Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note),
not exceed, after rehabilitation, the rent for comparable unassisted units in
the area.</text>
</subparagraph></paragraph><paragraph id="H3A20191BD08A4021AA92A218DA8D14A6"><enum>(3)</enum><header>Tenant notice
and opportunity to comment</header><text display-inline="yes-display-inline">Tenants in the property shall be provided
notice and an opportunity to comment on such rent adjustments in accordance
with rent increase procedures of the Department of Housing and Urban
Development issued pursuant to the authority under section 202(b) of the
Housing and Community Development Amendments of 1978 (12 U.S.C. 1715z–1b(b)).</text>
</paragraph><paragraph commented="no" id="H502EFB1516084F77B0BC6F682D18142D"><enum>(4)</enum><header>Provision of
rental assistance</header><text display-inline="yes-display-inline">Rental
assistance shall be provided for all affected eligible tenants of the property
in the form of new project-based assistance for previously unassisted units and
legally authorized contract rent increases under existing project-based
contracts.</text>
</paragraph></subsection><subsection id="HD267485F90754A33BF6CC20E7896D44C"><enum>(c)</enum><header>Effect on other
transactions</header><text>This section shall not have any effect on
transactions not meeting the terms and conditions of this section.</text>
</subsection></section><section id="H491798F8E5364CCF93C24397109BC6AC"><enum>205.</enum><header>Interest
reduction payments for section 236 projects experiencing a reduction of
units</header>
<subsection id="HBC7A4B8121FC4120927A103E65E5597A"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 236(e)(2) of
the National Housing Act (12 U.S.C. 1715z–1(e)(2)) is amended—</text>
<paragraph id="H240CF574078F42E091C687C0310AB110"><enum>(1)</enum><text>by striking
<quote>under the terms</quote> and inserting <quote>for the remaining
term</quote>; and</text>
</paragraph><paragraph id="HB8B4C7001DD24D92867016E244F55067"><enum>(2)</enum><text>by adding at the
end the following new sentence: <quote>The Secretary may continue to provide
the interest reduction payments in their entirely, notwithstanding a reduction
of total units, if the project owner is able to demonstrate that such an action
will contribute to the long-term physical or financial viability of the
property.</quote>.</text>
</paragraph></subsection><subsection id="HF08B3CAC6893493B802391AAE297528D"><enum>(b)</enum><header>Applicability</header><text>The
amendments made by subsection (a) shall apply to all interest reduction
payments made after October 1, 2006.</text>
</subsection></section><enum>III</enum><header>Protection of
Residents</header>
<section id="HBEC510D40DEE4430BE962A41A13EE6EE"><enum>301.</enum><header>Tenant
protection voucher to replace lost subsidized units on 1-for-1
basis</header><text display-inline="no-display-inline">Subject only to the
availability of amounts provided for such purpose in appropriation Acts, the
Secretary of Housing and Urban Development shall provide replacement vouchers
for rental assistance under section 8 of the United States Housing Act of 1937
(42 U.S.C. 1437f) for all dwelling units in projects that cease to be covered
multifamily housing properties (as such term is defined in section 201 of this
Act) due to demolition, disposition, or conversion.</text>
</section><section id="H71053A07541C4BF495CA11F246BE8A4D"><enum>302.</enum><header>Maintenance of
housing</header><text display-inline="no-display-inline">Section 8(d) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(d)) is amended by adding at
the end the following new paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="H0363AA7E18BF4C9693D6833FBFF56EB3" style="OLC">
<paragraph id="HF0EA726DC0A244068F1BA986406FBFC6" indent="up1"><enum>(7)</enum><header>Enforcement of housing standards
related to physical condition of property</header><text display-inline="yes-display-inline">If the Secretary determines, upon any
inspection or management review for any multifamily housing project covered by
a housing assistance payments contract under this section, that there are
serious violations of housing standards applicable to such project that are not
corrected after reasonable notice, or any other substantial or repeated
violations of other program requirements, including residents right to
organize, the Secretary may take one or more of the following actions:</text>
<subparagraph id="H5211BA269B384774B4137D3E3304CDCA"><enum>(A)</enum><text>Withhold all or part of the housing
assistance payments due under the contract.</text>
</subparagraph><subparagraph id="HA19195C912E845D18842CE3CD4FDD0EF"><enum>(B)</enum><text display-inline="yes-display-inline">Withhold any rent increases otherwise
due.</text>
</subparagraph><subparagraph id="HE720AB36C44C4337AA4BB918A109D1CE"><enum>(C)</enum><text>Assume possession and management of
the project and take any actions necessary to correct the violations, including
using such withheld payments to effectuate repairs or to reimburse others who
make repairs.</text>
</subparagraph><subparagraph id="H00BDF48EF35B4C5E85F298BAD8AB25FB"><enum>(D)</enum><text display-inline="yes-display-inline">Use such withheld payments to pay for
utilities and other services that are the responsibility of the owner under the
lease or applicable law.</text>
</subparagraph></paragraph><paragraph id="HAC96981AB1DA414FA78967A333956F8A" indent="up1"><enum>(8)</enum><header>Escrow of tenant
rents</header><text display-inline="yes-display-inline">If the Secretary
determines that there are serious violations of housing standards applicable to
any multifamily housing project covered by a housing assistance payments
contract under this section or any other substantial or repeated violations of
other program requirements, any tenants in assisted units in the project may
withhold the tenant contribution toward rent and pay such amount, when due,
into an escrow fund, or use such withheld payments to effectuate repairs, in
accordance with procedures established by the Secretary. If a tenant withholds
the tenant contribution toward rent in accordance with this paragraph, the
Secretary shall withhold all or part of the housing assistance payments due
under the contract until the violation is remedied. An owner of a project shall
not evict tenants for nonpayment of rent for exercising rights under this
paragraph.</text>
</paragraph><paragraph id="H5B63CAF274124DE7AEE86F9554D01B94" indent="up1"><enum>(9)</enum><header>Protection of tenants</header><text display-inline="yes-display-inline">An owner of a multifamily housing project
covered by a housing assistance payments contract under this subsection may not
terminate the tenancy of any tenant because of the withholding or abatement of
assistance pursuant to this subsection. During the period that assistance is
abated pursuant to this subsection, the tenant may terminate the tenancy by
notifying the owner.</text>
</paragraph><paragraph id="H978112E0D0C6495BB9F0AC3ADAED2996" indent="up1"><enum>(10)</enum><header>Inspections upon request or
petition</header><text display-inline="yes-display-inline">In addition to
periodic inspections by the Secretary, the Secretary shall conduct an
inspection or management review of any multifamily housing project covered by a
housing assistance payments contract under this section when requested by the
local government in which the project is located or by a petition signed by not
less than 25 percent of the tenants of the occupied units in the
project.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HA7114A0DB9CC47389C6487ACA19B4707"><enum>303.</enum><header>Resident
enforcement of public housing agency or project owner agreements with
HUD</header>
<subsection id="H78AFB35C62FC4CDF8A090766E8E7A714"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">In each covered
agreement described in subsection (c), any resident, or resident or tenant
association, of an affected project shall be permitted to petition the
Secretary of Housing and Urban Development requesting enforcement of alleged
violations of the covered agreement.</text>
</subsection><subsection id="H0F79499CCFE84A0784AC2E99EB3306A3"><enum>(b)</enum><header>Judicial
relief</header><text display-inline="yes-display-inline">If the Secretary, or
the designee of the Secretary, fails to issue a determination regarding an
enforcement request within 90 days after receipt of the petition, the resident,
or resident or tenant association, may seek appropriate judicial relief in
connection with the alleged violation and enforcement of a covered agreement in
any forum of competent jurisdiction. In the case of any alleged violation that
threaten the health or safety of tenants, the time period for making such a
determination shall be no longer than 15 days.</text>
</subsection><subsection id="H169EFAEB46E64898B806F965989951DD"><enum>(c)</enum><header>Covered
agreements</header><text display-inline="yes-display-inline">A covered
agreement described in this subsection is any—</text>
<paragraph id="HCA8C71C54D4A41498948AAB788AC31E7"><enum>(1)</enum><text display-inline="yes-display-inline">contract between the Secretary and any
public housing agency for housing assistance payments under section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f);</text>
</paragraph><paragraph id="H731EB81ADE7947E482A4E4527794B1FB"><enum>(2)</enum><text>agreement under
the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42
U.S.C. 1437f note) for—</text>
<subparagraph id="H4F95DC05EBF0460DB537A76950C7A0DA"><enum>(A)</enum><text>Mark-to-Market
Restructuring Commitments or renewal of section 8 rental assistance for a
project involving any action under section 517(b) of such Act; or</text>
</subparagraph><subparagraph id="H70C801613ABD479DAE55CCC549938713"><enum>(B)</enum><text>Rehabilitation
Escrow Deposit Agreements for Mark-to-Market; or</text>
</subparagraph></paragraph><paragraph id="H30BF5C37A77E4CEA8768E8326167DF9D"><enum>(3)</enum><text>contract for
mortgage insurance executed by the Secretary and any owner or purchaser of a
multifamily housing project.</text>
</paragraph></subsection><subsection id="HE6CA40B01438461DAB4AF0FFBB6789CF"><enum>(d)</enum><header>Regulations</header><text display-inline="yes-display-inline">Within 180 days after the date of the
enactment of this Act, the Secretary shall issue regulations providing
procedures for—</text>
<paragraph id="HDBECAA0B7F9F4438BCFE1E07EC18B87E"><enum>(1)</enum><text>receiving tenant
petitions to enforce the terms of a covered agreement;</text>
</paragraph><paragraph id="H82E69DA5A15B4ACD9974D17E2D1E1667"><enum>(2)</enum><text>evaluating alleged
violations of a covered agreement; and</text>
</paragraph><paragraph id="H5507060491174E909592DCC41F008DC0"><enum>(3)</enum><text>providing notice
to residents, and resident and tenant associations.</text>
</paragraph></subsection></section><section id="HE2D383F31039466EBC89CDF397F233B6"><enum>304.</enum><header>Resident access
to building information</header>
<subsection id="H88CB19E0030C408CAD44E609DD44F247"><enum>(a)</enum><header>Access to
information</header><text display-inline="yes-display-inline">Upon a written
request by a legitimate residents association established with respect to a
multifamily housing property to which part 245 of the regulations of the
Secretary of Housing and Urban Development (24 C.F.R. Part 245), by or through
its duly appointed designee or representative, the Secretary shall make
available, for the property represented by the association—</text>
<paragraph id="H8996D216FA554CE79E5C37B6BC81AA02"><enum>(1)</enum><text>information
identifying the legal entities that own and manage the property, including
identification of general partners and other principals, and their other
properties assisted by the Department of Housing and Urban Development,
including previous participation certifications (with Social Security numbers
redacted);</text>
</paragraph><paragraph id="H310F57A875424F73BA0D9D77266092EF"><enum>(2)</enum><text display-inline="yes-display-inline">an annual operating statement of profit and
loss, and project budgets submitted to the Department of Housing and Urban
Development;</text>
</paragraph><paragraph id="HFE06B2D0C7374A64B1B2B6AD63126BA8"><enum>(3)</enum><text display-inline="yes-display-inline">subsidy contracts and regulatory
agreements, use agreements. or other contracts referred to in section 303(c) of
this Act between owners and the Department of Housing and Urban Development,
including correspondence between owners and the Department;</text>
</paragraph><paragraph id="HFE61D15653914A97B3FB27501B41496D"><enum>(4)</enum><text display-inline="yes-display-inline">management reviews, capital needs
assessments, and physical inspection reports conducted of entities identified
in paragraph (1) by the Department or a contractor of the Department;
and</text>
</paragraph><paragraph id="H68CEF466E357489489DFDC0A57BBDDCA"><enum>(5)</enum><text display-inline="yes-display-inline">an annual statement, prepared by the
Department’s contract administrator for the subject property, of the balances
of, and expenditures from, any replacement reserves and other escrow funds for
the property.</text>
</paragraph></subsection><subsection id="H546FF3D712D044F7AEBC521E8A63AAA2"><enum>(b)</enum><header>Protection of
personal information</header><text display-inline="yes-display-inline">Subsection (a) shall not be construed to
require disclosure of Social Security numbers, personal tax returns, or any
other personal financial information of or concerning individuals who have an
interest in the ownership or management entities referred to in subsection
(a).</text>
</subsection></section><enum>IV</enum><header>Preservation of
troubled projects facing foreclosure</header>
<section id="H45C7E433571C45B1ADC6BA8979245B12"><enum>401.</enum><header>Maintaining
affordability through escrowing of rental assistance</header><text display-inline="no-display-inline">In the case of any transfer of a distressed
multifamily property that does not comply with housing quality standards
applicable to the property, the Secretary of Housing and Urban Development may
not recapture any rental assistance that is attached to any dwelling units in
the property and provided under a contract for the property under section 8 of
the United States Housing Act of 1937 or under any other program administered
by the Secretary, but shall hold any such assistance in escrow for the property
during the period of noncompliance and, upon determining that the property
complies with such standards make such assistance available for the
property.</text>
</section><section id="HD20F42C11B6346CD881D31DC8F1CCAFC"><enum>402.</enum><header>Multifamily
housing mortgage foreclosure</header><text display-inline="no-display-inline">The Multifamily Mortgage Foreclosure Act of
1981 is amended—</text>
<paragraph id="HA3712BA867CC4E5DBF8CAC7B7EE0CDE7"><enum>(1)</enum><text>in section 362 (12
U.S.C. 3701)—</text>
<subparagraph id="H8A329EF791B2494C89C36353CC28B041"><enum>(A)</enum><text>in paragraph (5),
by striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="HE5266B3A7BC443E1B099B090DAC3C412"><enum>(B)</enum><text>in paragraph (6),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</subparagraph><subparagraph id="HB11755E222204CE8B505B84B2BFF3551"><enum>(C)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block id="HE0ABF616DAFD497CBFB8B52E0DC762BE" style="OLC">
<paragraph id="H4DE298E08296499586867EE71361121E"><enum>(7)</enum><text>mortgages
transferred by the Secretary to State and local governments should be
foreclosed in the same manner as mortgages held by the
Secretary.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HFD526B38DB7F4CA886703925F883B4B6"><enum>(2)</enum><text>in section 363 (12
U.S.C. 3702)—</text>
<subparagraph id="HAA19FAE8524240C68D6E6E7E62082F65"><enum>(A)</enum><text>in paragraph (9),
by striking <quote>and</quote> at the end;</text>
</subparagraph><subparagraph id="H8B47A41E4B9442D6B9FDEF9A84FB0BA0"><enum>(B)</enum><text>in paragraph (10),
by striking the period at the end and inserting <quote>; and</quote>;
and</text>
</subparagraph><subparagraph id="H12709BB2BE6940CFBC091EF448744E31"><enum>(C)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block id="H613A810120A945A3B7E009E76BEBABCC" style="OLC">
<paragraph id="HD04BD9EB181D446291847D013A365702"><enum>(11)</enum><text><quote>State or
local government transferee</quote> means any State or unit of general local
government, any public housing authority, or any State or local housing finance
agency that has acquired mortgages pursuant to section 203 of the Housing and
Community Development Amendments of 1978 (12 U.S.C. 1701z–11), section 204 of
the Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1997 (12 U.S.C. 1715z–11a), or any
other provision of law, that were previously held by the
Secretary.</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HC9D2BB4D28E7422D9686F04F33576AB2"><enum>(3)</enum><text>in section 364 (12
U.S.C. 3703)—</text>
<subparagraph id="H9B70C082802C46E3910F83CF15C1D024"><enum>(A)</enum><text>by inserting
<quote>, or any State or local government transferee,</quote> after
<quote>Secretary</quote> the first and fourth places such term appears;
and</text>
</subparagraph><subparagraph id="H07A48EC79570440FA243C838E42464AF"><enum>(B)</enum><text>by inserting
<quote>, or the State or local government transferee,</quote> after
<quote>Secretary</quote> the second, third, and fifth places such term
appears;</text>
</subparagraph></paragraph><paragraph id="H944F912D87214B2895FB243866705906"><enum>(4)</enum><text>in section 365 (12
U.S.C. 3704)—</text>
<subparagraph id="H1C13DDC6C5BF454F8D8E0E32E8E7AEBB"><enum>(A)</enum><text>by inserting
<quote>, or any State or local government transferee,</quote> after
<quote>Secretary</quote> the first place such term appears;</text>
</subparagraph><subparagraph id="HC3A5F63876E64439A67432B2D1E26C55"><enum>(B)</enum><text>by inserting
<quote>, or the State or local government transferee,</quote> after
<quote>Secretary</quote> each other place such term appears; and</text>
</subparagraph><subparagraph id="H231D8508033E48A5AE9B3FBB1FC09696"><enum>(C)</enum><text>by striking the
last 3 sentences and inserting the following: <quote>The entity designating the
foreclosure commissioner, whether the Secretary or any State or local
government transferee, shall be a guarantor of payment of any judgment against
the foreclosure commissioner for damages based upon the commissioner’s failure
properly to perform the commissioner’s duties. As between the entity
designating the foreclosure commissioner, whether the Secretary or any State or
local government transferee, and the mortgagor, the entity designating the
foreclosure commissioner shall bear the risk of any financial default by the
foreclosure commissioner. In the event that the Secretary or any State or local
government transferee makes any payment pursuant to the preceding two
sentences, the Secretary or any State or local government transferee shall be
fully subrogated to the rights satisfied by such payment.</quote>;</text>
</subparagraph></paragraph><paragraph id="H80E81A88AF5F4830868BEFA384417E9A"><enum>(5)</enum><text>in section 366 (12
U.S.C. 3705)—</text>
<subparagraph id="HBF0CC2CBF4AE406CAC81DCDC31F3E588"><enum>(A)</enum><text>by inserting
<quote>, or any State or local government transferee,</quote> after
<quote>Secretary</quote> the first, third, fourth, and fifth place such term
appears; and</text>
</subparagraph><subparagraph id="H4B73EB35E6AC4F9D9A9053487AE8D1BE"><enum>(B)</enum><text>by inserting
<quote>, or the State or local government transferee,</quote> after
<quote>Secretary</quote> the second and sixth places such term appears;</text>
</subparagraph></paragraph><paragraph id="H2C833EA501034337B16D56C356EDC458"><enum>(6)</enum><text>in section 367 (12
U.S.C. 3706)—</text>
<subparagraph id="HD6C72FB445C842CCAEBEAEE39DAACF9A"><enum>(A)</enum><text>in subsection
(a)—</text>
<clause id="HD82ED0EEBF354422B975CC7F0F96460B"><enum>(i)</enum><text>in
paragraph (1), by inserting <quote>or the State or local government
transferee,</quote> after <quote>Secretary,</quote>; and</text>
</clause><clause id="H3ED453F6D6F74500B43F34243519575E"><enum>(ii)</enum><text>in
paragraph (8), by inserting <quote>, or the State or local government
transferee</quote> after <quote>Secretary</quote>;</text>
</clause></subparagraph><subparagraph id="H1D9EE1B314874C0B90921D3B34089101"><enum>(B)</enum><text>in subsection
(b)—</text>
<clause id="HB087DB99CC0B4AA78DD343CE2F8FB6FA"><enum>(i)</enum><text>by
inserting <quote>, or any State or local government transferee,</quote> after
<quote>Secretary</quote> the first and second places such term appears;
and</text>
</clause><clause id="HF71CBDBE3ECA4C79B9848E4F47CFFADC"><enum>(ii)</enum><text>by
inserting <quote>, or the State or local government transferee,</quote> after
<quote>Secretary</quote> the third place such term appears; and</text>
</clause></subparagraph><subparagraph id="H66261EC7FFD140F9A932198797E86E5A"><enum>(C)</enum><text>by adding at the
end the following new subsection:</text>
<quoted-block id="HA4FC6BC1DFE740FAA6C1F36867F108A6" style="OLC">
<subsection id="H1ADCC0A680F249608FD14CB8C7E2E99B"><enum>(c)</enum><text>In any case in
which a State or local government transferee is the purchaser of a multifamily
project, the State or local government transferee shall manage and dispose of
such project to benefit those originally intended to be assisted under the
prior program unless continued operation and disposition of the property under
such program is not feasible based on consideration of the costs of
rehabilitating and operating the property after considering all available
Federal, State, and local resources, including rent adjustments under section
524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997
(42 U.S.C. 1437f
note).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H4F5512B26FB04FBC8B752C829A88F049"><enum>(7)</enum><text>in section 368 (12
U.S.C. 3707)—</text>
<subparagraph id="H6DFEC05B81BC4DC59988A7BF456D0954"><enum>(A)</enum><text>by inserting
<quote>, or any State or local government transferee,</quote> after
<quote>Secretary</quote> the first and third places such term appears;
and</text>
</subparagraph><subparagraph id="H8B385E47FFA346888A70D9A907567F12"><enum>(B)</enum><text>by inserting
<quote>, or the State of local government transferee,</quote> after
<quote>Secretary</quote> the second place such term appears;</text>
</subparagraph></paragraph><paragraph id="H045B60B6B74E48B5AD30B264943BB7D6"><enum>(8)</enum><text>in section 369A
(12 U.S.C. 3709)—</text>
<subparagraph id="HF980FE75775249029AB630A9BA244959"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>, or any State or local
government transferee,</quote> after <quote>Secretary</quote> the second place
such term appears; and</text>
</subparagraph><subparagraph commented="no" id="H387787A9FA744B0F964DACDA96DAFA27"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting `, or the State or local
government transferee,' after `Secretary' the first, third, and fourth places
such term appears;</text>
</subparagraph></paragraph><paragraph commented="no" id="H0CE26082C2E149F3A2EBAAB0D2CBD0E3"><enum>(9)</enum><text>in section 369B
(12 U.S.C. 3710)—</text>
<subparagraph commented="no" id="H9BD3CBACA83A4A20876EA83F68FF6801"><enum>(A)</enum><text>by inserting
<quote>, or the State of local government transferee,</quote> after
<quote>Secretary</quote> the first and second places such term appears;
and</text>
</subparagraph><subparagraph commented="no" id="H3CC728FF13C845939B38023B6D82125C"><enum>(B)</enum><text>by inserting
<quote>, or any State or local government transferee,</quote> after
<quote>Secretary</quote> each other place such term appears;</text>
</subparagraph></paragraph><paragraph commented="no" id="H7648C793F9D240249CCCFC65C93E090B"><enum>(10)</enum><text>in section 369E
(12 U.S.C. 3713), by inserting <quote>, or any State or local government
transferee,</quote> after <quote>Secretary</quote> each place such term
appears; and</text>
</paragraph><paragraph commented="no" id="HFB43E556FD82476A9E867E6D4F0EAAAD"><enum>(11)</enum><text>in section
369F(a)(1) (12 U.S.C. 3714(a)(1)), by inserting <quote>, or any State or local
government transferee,</quote> before the semicolon at the end.</text>
</paragraph></section><section id="H28634424284D47EB9F6446F08394538D"><enum>403.</enum><header>Building
acquisition: valuation of physically distressed properties sold by HUD</header>
<subsection id="H6339AB7105C14F329393303EF118FE0F"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding title
II of the Deficit Reduction Act of 2005 (12 U.S.C. 1701z–11 note) or any other
provision of law, in determining the market value of any multifamily real
property or multifamily loan for any noncompetitive sale to a State or local
government, the Secretary of Housing and Urban Development shall consider, but
not be limited to, industry standard appraisal practices, including the cost of
repairs needed to bring the property into such condition as to satisfy minimum
State and local code standards and the cost of maintaining the affordability
requirements imposed by the Secretary on the multifamily real property or
multifamily loan.</text>
</subsection><subsection commented="no" id="HC27B99819EB54F19AE495374E1E2600D"><enum>(b)</enum><header>Definitions</header><text display-inline="yes-display-inline">For purposes of this section, the terms
<quote>affordability requirements</quote>, <quote>multifamily loan</quote>, and
<quote>multifamily real property</quote> have the same meaning given such terms
in section 2001 of the Deficit Reduction Act of 2005 (12 U.S.C. 1701z–11
note).</text>
</subsection></section><section id="HCC29D28C43164E2E9036A997A1560CD4"><enum>404.</enum><header>Investment
through up-front grants from General Insurance Fund</header>
<subsection id="H926FCCBB2997434A9FE24A4614A8E997"><enum>(a)</enum><header>1978
Act</header><text display-inline="yes-display-inline">Paragraph (4) of section
203(f) of the Housing and Community Development Amendments of 1978 (12 U.S.C.
1701z–11(f)(4)) is amended by striking the last sentence.</text>
</subsection><subsection id="H61212AB68375486D89C1BF39384EF7E6"><enum>(b)</enum><header>Clarification of
authorized assistance</header><text display-inline="yes-display-inline">In
implementing the provisions amended by subsection (b) of this section, the
Secretary of Housing and Urban Development may utilize both up-front grants and
project-based rental assistance under section 8 of the United States Housing
Act of 1937 (42 U.S.C. 1437f) as necessary to preserve the affordability of a
multifamily housing project to low- and very low-income families.</text>
</subsection></section><section commented="no" id="HD6C899A1C1B34662A906E3AA1FDAB03C"><enum>405.</enum><header>Maintaining
project-based assistance for projects disposed of by HUD</header>
<subsection id="H573C161069A840DFB3F286C97E587371"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">In managing and
disposing of any multifamily property that is owned by, or has a mortgage held
by, the Secretary of Housing and Urban Development, the Secretary shall
maintain any contracts for rental assistance payments under section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f) and other programs that are
attached to any dwelling units in the property.</text>
</subsection><subsection id="HB5438B1635954E12BDA89DBE54324C8F"><enum>(b)</enum><header>Infeasibility of
continued assistance</header><text>To the extent the Secretary determines, in
consultation with the tenants and the local government, that such a multifamily
property owned or held by the Secretary is not feasible for continued rental
assistance payments under such section 8 or other programs, based on
consideration of (1) the costs of rehabilitating and operating the property and
all available Federal, State, and local resources, including rent adjustments
under section 524 of the Multifamily Assisted Housing Reform and Affordability
Act of 1997 (42 U.S.C. 1437f note), and environmental conditions that cannot be
remedied in a cost-effective fashion, the Secretary may, in consultation with
the tenants of such property, contract for project-based rental assistance
payments with an owner or owners of other existing housing properties, or
provide other rental assistance.</text>
</subsection><subsection id="H3675140E1F6E4094BCD31C71B8B41D57"><enum>(c)</enum><header>Foreclosure</header><text display-inline="yes-display-inline">For all properties with project-based
section 8 assistance, regardless of the type of underlying financing, the
Secretary shall also take appropriate actions to ensure that project-based
contracts remain in effect prior to foreclosure, subject to the exercise of
contractual remedies to assist relocation of tenants for imminent major threats
to health and safety, after written notice to and informed consent of the
affected tenants and use of other available remedies, such as partial
abatements or receivership.</text>
</subsection><subsection id="HA0E4A2F8ABBA4A32AA1681CDF0E68682"><enum>(d)</enum><header>Applicability of
MAHRA</header><text display-inline="yes-display-inline">After disposition of
any multifamily property described under this section, the contract and
allowable rent levels on such properties shall be subject to section 524 of the
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437f note).</text>
</subsection></section><section id="HE680A0237260477AB1B24E5D1D309869"><enum>406.</enum><header>Correcting harm
caused by late subsidy payments</header><text display-inline="no-display-inline">Section 8 of the United States Housing Act
of 1937 (42 U.S.C. 1437f), as amended by the preceding provisions of this Act,
is further amended by adding at the end the following new subsection: ”.</text>
<quoted-block display-inline="no-display-inline" id="H7A31D6BC37454A93BF961576518233C2" style="OLC">
<subsection id="H673EE463DC0E4EF881CFBE830E13BF4D"><enum>(gg)</enum><header>Late
payments</header>
<paragraph id="H3F9CC8BEA84948ACB97D2AEBD39AE228"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="HDED86E5D49114DFB8612714BD7CE7066"><enum>(2)</enum><header>Due
date</header><text>The due date under this paragraph for a monthly payment is
the first business day of the month.</text>
</paragraph><paragraph id="H180A307C161F44ED9AFB66A62A0C8F7B"><enum>(3)</enum><header>Notification of
late payment</header><text>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.</text>
</paragraph><paragraph id="HD7B8E53D8BA0414492ABDC7941E7803B"><enum>(4)</enum><header>Use of
reserves</header><text>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. Upon receipt of the monthly housing
assistance payment from the Secretary, the project owner shall promptly replace
or replenish any such funds advanced pursuant to the preceding sentence.</text>
</paragraph><paragraph id="H9A24701B3F51445694859955CF658ADD"><enum>(5)</enum><header>Interest
payment</header><text>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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>V</enum><header>Incentives under
MAHRA for owners to maintain housing affordability</header>
<section id="H2F74DEF0AD7746C398633263CF912EBD"><enum>501.</enum><header>Extension of
mark-to-market program</header><text display-inline="no-display-inline">Section
579 of the Multifamily Assisted Housing Reform and Affordability Act of 1997
(42 U.S.C. 1437f note) is amended by striking <quote>October 1, 2011</quote>
each place such term appears and inserting <quote>October 1, 2015</quote>.</text>
</section><section id="H6148393E21B347BFAFFA8018889A410F"><enum>502.</enum><header>Maintaining
affordability in preservation project transactions</header>
<subsection id="H4BA6D2AEABB44C168C4DC13A19A9353E"><enum>(a)</enum><header>Renewal under
alternative authorities</header><text>Paragraph (1) of section 524(e) 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 new sentences:
<quote>At the request of the owner of the project, in order to facilitate a
rehabilitation plan approved by the Secretary as being necessary to ensure the
sustainability of a project, a contract eligible for renewal pursuant to this
paragraph may instead be renewed pursuant to any provision of subsection (a) or
(b) of this section if the contract is otherwise eligible for renewal pursuant
to such provision. In the case of a renewal pursuant to subsection (a) or (b),
the rent and rent adjustment standards applicable to a renewal pursuant to
those subsections shall apply, but tenant occupancy and affordability
restrictions in the plan of action shall continue to apply to the project for
the duration of those restrictions.</quote>.</text>
</subsection><subsection id="H7DB5C0650666424EADBAC73AC6D85B8F"><enum>(b)</enum><header>Extension of
affordability period for ELIHPA projects</header><text>Section 524(e) 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 new paragraph:</text>
<quoted-block id="H4EC9C917485546EEA38BE365A2857FAB" style="OLC">
<paragraph id="HF2E9C3C0BB0A4E69B433715BA9F08D17"><enum>(4)</enum><header>Hybrid
contract</header><text display-inline="yes-display-inline">To facilitate the
sale, transfer, or rehabilitation of a project that is subject to a plan of
action under the Emergency Low Income Housing Preservation Act of 1987 (12
U.S.C. 1715l note) to an owner who agrees to binding low-income affordability
restrictions for at least 30 years beyond the term of the plan of action and a
rehabilitation plan approved by the Secretary as being necessary to ensure the
sustainability of the project, a contract for such a project shall, at the
request of the owner of the project, be renewed under this paragraph for a term
of not less than 30 years. The contract shall provide that the terms of the
plan of action shall apply for the duration of the original plan of action, and
that at the expiration of the plan of action the rents shall be established at
rent levels equal to comparable market rents for the market area. After
expiration of the plan of action, rent adjustments shall be determined in
accordance with the provisions of subsection (c) that are applicable to
contracts renewed pursuant to subsection (a). Any existing contract entered
into pursuant to paragraph (1) shall be terminated at the request of the owner
of the project, and replaced by a contract under this
paragraph.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section display-inline="no-display-inline" id="HCA9085007BE74B4299E325A2FE88E0E5"><enum>503.</enum><header>Encouraging
continued participation in assisted housing programs</header>
<subsection id="H85B1159C55F24CEC81132A48CF14A793"><enum>(a)</enum><header>Elimination of
discriminatory renewal terms</header><text display-inline="yes-display-inline">Paragraph (3) of section 524(b) of the
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437f note) is amended—</text>
<paragraph id="HFD91C2AB3BC4496297506F859B8B2DF1"><enum>(1)</enum><text>in the matter
preceding subparagraph (A), by striking <quote>the lesser of</quote> and
inserting <quote>as follows</quote>; and</text>
</paragraph><paragraph id="H32F41A9AD07D46D298BF006A18C758A0"><enum>(2)</enum><text>by striking
subparagraphs (A), (B), and (C) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="H36104D7834ED48B9A2540A940B7AE0AB" style="OLC">
<subparagraph id="HF3ED3B3B658D422EBC9CE5C9788A0A2A"><enum>(A)</enum><header>Previously
renewed projects</header><text display-inline="yes-display-inline">In the case
of a project with a contract previously renewed under this paragraph, for the
first renewal occurring after the date of the enactment of the Housing
Preservation and Tenant Protection Act of 2010, at a rent level determined in
accordance paragraph (1)(B) of this subsection.</text>
</subparagraph><subparagraph id="HCEFE0004D33B40D4B738ED19726C3297"><enum>(B)</enum><header>Projects not
previously renewed</header><text display-inline="yes-display-inline">In the
case of a project with a contract not previously renewed under this paragraph,
at a rent level determined in accordance with paragraph (1) of this subsection.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H11FAB91CC7E5426FBE7DB4E65B854F27"><enum>(b)</enum><header>Subsequent
renewals and rent adjustments</header><text display-inline="yes-display-inline">Paragraph (1) of section 524(c) of the
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437f note) is amended in the first sentence by striking <quote>(b)(1)</quote>
and inserting <quote>(b)(1), (b)(3)</quote>.</text>
</subsection></section><section id="HEB7F881C41C440A5A088CBF549A86DE8"><enum>504.</enum><header>Prepayment of
FHA mortgages on multifamily housing</header>
<subsection id="H6492C375D96C476AB6E39C78E5C8C4BA"><enum>(a)</enum><header>Conditions for
prepayment</header><text>Section 250 of the National Housing Act (12 U.S.C.
1715z–15) is amended—</text>
<paragraph id="H96D0D683C9D84D0887427A8C8268247E"><enum>(1)</enum><text>in subsection
(a)—</text>
<subparagraph id="H2AAF667ABE6449A6B5B21BF316CD0165"><enum>(A)</enum><text>by striking
paragraph (1) and inserting the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HB0DBC6698F084DE2AF66F8B17D52A893" style="OLC">
<paragraph id="HD1A5D5056F3A40F4BF0E5DDF4C16B539"><enum>(1)</enum><text display-inline="yes-display-inline">the Secretary has determined that—</text>
<subparagraph id="HBD8D2BDCA10E415B988965C45835CC85"><enum>(A)</enum><text>such project is no
longer meeting a need for rental housing for lower income families in the area,
as evidenced by a persistent lack of demand for the units under the rent
schedule approved by the Secretary; or</text>
</subparagraph><subparagraph id="HBF011B4E2FB14BD89B948FEFEC8D235D"><enum>(B)</enum><text>the prepayment is
part of a transaction to preserve and improve the project as affordable
housing, pursuant to the guidance in effect that implements section 236(e)(2)
of this Act (12 U.S.C. 1715z–1(e)2)) or pursuant to additional administrative
guidance, ensuring that—</text>
<clause id="H7A8FAD6B42584F8B951929F264058FBB"><enum>(i)</enum><text>the proceeds of
any refinancing will be used for rehabilitation of the project and related
costs or for affordable housing and related social services under a plan
approved by the Secretary;</text>
</clause><clause id="H8A1A0275658C4D0BBEB92294E63E0B8E"><enum>(ii)</enum><text>tenants will not
be displaced from the project;</text>
</clause><clause id="H0CE73724EC9F4CED994103D4F03BDF7C"><enum>(iii)</enum><text>rent burdens for
unassisted tenants as a result of the transaction will not be increased by more
than 10 percent annually or 20 percent in total, unless additional
project-based assistance is provided; and</text>
</clause><clause id="H5C9423711AC84317AE60CF9E3E98623E"><enum>(iv)</enum><text>binding
commitments, which shall apply to current and subsequent owners, are made to
ensure that the project will operate in accordance with all currently
applicable low-income affordability restrictions for a period of not less than
the original mortgage term plus an additional 20 years, including a duty to
maintain a substantially similar occupancy profile for the project of low-,
very low-, and extremely low-income tenants, to renew any expiring rental
assistance contracts for the project, and accept additional rental assistance
for the
project.</text>
</clause></subparagraph></paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H488B28E106104692B625FA62685D9D55"><enum>(B)</enum><text>in paragraph
(2)—</text>
<clause id="H4D4F649580044ED491DD536277BC828F"><enum>(i)</enum><text>in
subparagraph (A), by inserting before the semicolon at the end the following:
<quote>which shall include reasonable access to all information relevant to the
request, including the anticipated sources and uses of proceeds, any additional
financing, subsidies, and rental assistance, and any proposed rehabilitation
plan, affordable housing and services plan, or use agreement</quote>;
and</text>
</clause><clause id="H73DF77EF43074A6899892A1DF71B95EE"><enum>(ii)</enum><text display-inline="yes-display-inline">in subparagraph (C), by inserting before
the semicolon the following: <quote>in making the determination required by
paragraph (1)</quote>;</text>
</clause></subparagraph><subparagraph id="H4C773508A204483BA4CD51643C5AA344"><enum>(C)</enum><text>in paragraph (3),
by striking the period at the end and inserting <quote>; and</quote>; and</text>
</subparagraph><subparagraph id="H942F13A405A4450B8994214BF1CF4991"><enum>(D)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H4C1D07F73A954B5385F9F1E1917F5915" style="OLC">
<paragraph id="HBCFE66A4BBCB4570A1E1FBD0DD2B506F"><enum>(4)</enum><text display-inline="yes-display-inline">the Secretary has ensured that such
prepayment or termination involves extension of any low-income affordability
restrictions (as such term is defined in section 229 of the Low-Income Housing
Preservation and Resident Homeownership Act of 1990 (12 U.S.C. 4119) for the
project for a period of not less than 30 years.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection id="H9541E760E3DC4B32BEBC114A909BF061"><enum>(b)</enum><header>Use of proceeds
of preservation transactions by nonprofit owners of multifamily projects;
section 236 transactions; clarification of effect</header><text display-inline="yes-display-inline">Section 250 of the National Housing Act (12
U.S.C. 1715z–15) is amended by adding at the end the following new
subsections:</text>
<quoted-block display-inline="no-display-inline" id="H18B3BBF69E764BADA883821A59359801" style="OLC">
<subsection id="H8CC3C4FF473244E894D8D20E22B85A3D"><enum>(d)</enum><header>Use of proceeds
from preservation transaction</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law,
in connection with a preservation transaction, the prepayment of a mortgage on
a multifamily rental housing project or termination of an insurance contract
pursuant to section 229, or the sale or refinancing of a multifamily rental
housing project for which approval of the Secretary is required, the Secretary
may not, in any manner that is not equally applicable to a for-profit owner of
such a project—</text>
<paragraph id="HBB390581AB54412E84A4DE67AE13E8A9"><enum>(1)</enum><text>impose on any
owner of such a project that is a nonprofit organization or controlled by a
nonprofit organization any limitation on the right of such owner to use the
proceeds of such preservation transaction for the affordable housing mission
(including tenant and supportive services) of such organization, except that
any increase in the project-based rental assistance shall be used solely to
cover the cost of actual debt service, customary operating costs, and project
reserve requirements, and for any rehabilitation of the project and reasonably
related costs, and not for cash distributions or proceeds made to any project
owner or purchaser; or</text>
</paragraph><paragraph id="H107ED4B27D394D71AAC30B65F1CC2C05"><enum>(2)</enum><text display-inline="yes-display-inline">restrict the right of any owner of such a
project that is a nonprofit organization or controlled by a nonprofit
organization to do business, in connection with any affiliate or entity in
which it has a financial interest.</text>
</paragraph></subsection><subsection id="H726360B4C95647AE896CB4FAA78708E3"><enum>(e)</enum><header>Section 236
decoupling refinancing transactions</header><text display-inline="yes-display-inline">In the case of a decoupling refinancing
transaction under section 236, the Secretary may not enter into any agreement
that establishes an escrow for the payment of future section 8 rent increases
from sales proceeds funded by low-income housing tax credit equity and any such
agreement already entered into shall be considered unenforceable, shall be
rescinded, and may be reissued without the void condition.</text>
</subsection><subsection id="HF9D4F1917D9443578B4B9167B1590C36"><enum>(f)</enum><header>Applicability</header><text display-inline="yes-display-inline">Notwithstanding any existing administrative
directive of the Secretary to the contrary, except as specifically authorized
in this section, this section shall apply to the prepayment of any multifamily
mortgage on any property insured or held by the Secretary under this Act for
which the approval of the Secretary is required for prepayment of the
mortgage.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HA6EBD4055B7F4BBE95F8F9D947C5BE73"><enum>505.</enum><header>Period of
eligibility for nonprofit debt relief</header><text display-inline="no-display-inline">Section 517(a)(5) 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 new sentences: <quote>If such
purchaser acquires such project subsequent to the date of recordation of the
affordability agreement described in section 514(e)(6), (A) the purchaser must
acquire the project on or before the later of (i) seven years after the date of
recordation of the affordability agreement and (ii) two years after the date of
enactment of this sentence; and (B) the Secretary must have received, and
determined acceptable, the purchaser’s application for modification,
assignment, or forgiveness prior to the purchaser’s acquisition of the project.
In the event any low-income housing tax credits, State or local funds,
tax-exemption or other affordable housing resources are being utilized by the
purchaser in connection with the transfer of the property, the Secretary shall
not require any repayment in connection with the assignment or forgiveness of
the mortgages to the purchaser.</quote>.</text>
</section><section display-inline="no-display-inline" id="H6084DF0BB2CF4117ACCA017550178888"><enum>506.</enum><header>Acquisition of
restructured projects by nonprofit organizations</header><text display-inline="no-display-inline">Paragraph (5) of section 517(a) of the
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437 note) is amended by inserting <quote>, or the sole general partner of the
limited partnership owning the project,</quote> after <quote>if the
project</quote>.</text>
</section><section id="HD87F52CD072B40B785363B3D1F250591"><enum>507.</enum><header>Rent
adjustments upon subsequent renewals of section 8 contracts</header><text display-inline="no-display-inline">Section 524(c) 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 new paragraph:</text>
<quoted-block id="HF8685638D25C4F7FAE867A1E548F12E0" style="OLC">
<paragraph id="H6B4E222FA99A410CB119AADEB09B5EE1"><enum>(3)</enum><header>Subsequent
renewals</header><text display-inline="yes-display-inline">At the request of
the owner of the project, a contract initially renewed pursuant to this section
may subsequently be renewed under any renewal authority in this section for
which it is eligible. The subsequent renewal of a contract initially renewed
under subsection (b)(1) shall be at rents established in accordance with
paragraph (1) of this subsection. A project whose contract is initially renewed
under this section shall not be considered an eligible multifamily housing
project as defined in section 512(2) unless (A) the owner of the project and
the Secretary consent to the project’s designation as an eligible multifamily
housing project, and (B) the project meets the requirements of subparagraphs
(A) and (C) of such section
512(2).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H699956C71DE44A3B854D73EA846DA693"><enum>508.</enum><header>Budget-based
rent adjustments</header>
<subsection id="HD9C83C7C735549DEA5A6DC84F7860B18"><enum>(a)</enum><header>Methods for
annual rent adjustments</header><text>Section 514(g) 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 new paragraph:</text>
<quoted-block id="HFE5C50871F284C8285B4F388CD1F2B2C" style="OLC">
<paragraph id="H747B1DF85E1F48B2A2BB4831B30BE28D"><enum>(4)</enum><header>Annual rent
adjustments</header><text>The Secretary shall annually adjust the rents
initially established pursuant to this section using an operating cost
adjustment factor established by the Secretary (which shall not result in a
negative adjustment) or, upon the request of the project owner, on a budget
basis.</text>
</paragraph><after-quoted-block></after-quoted-block></quoted-block>
</subsection><subsection id="HBEA75AEB8D4E486F8439D80FD2249264"><enum>(b)</enum><header>Meeting
rehabilitation needs of previously restructured projects</header><text>Section
517(c) 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 new
paragraph:</text>
<quoted-block id="H9CC4927F917D4BBB9FA0ABA8E4FE94A5" style="OLC">
<paragraph id="H89282F48C15E437B9250FF0ED6F27B93"><enum>(3)</enum><header>Rehabilitation
needs of restructured projects</header>
<subparagraph id="HBB962B39E60F464A862E78CFB81F9DD2"><enum>(A)</enum><header>Rehabilitation
assistance</header><text>Notwithstanding any other provision of this title, at
the request of a project owner, the Secretary shall, pursuant to a revised
evaluation of the physical condition of the project approved by the Secretary,
provide rehabilitation assistance from the funding sources specified in the
first sentence of paragraph (1)(A) for any project for which the Secretary and
the project owner executed a mortgage restructuring and rental assistance
sufficiency plan prior to October 1, 2001, pursuant to which mortgage debt on
the project was restructured.</text>
</subparagraph><subparagraph id="H07322CECAD9C4798BDE20FE83514BBF2"><enum>(B)</enum><header>Funding through
debt restructuring</header><text display-inline="yes-display-inline">The
Secretary may, in connection with the transfer of a project to a qualified
preservation owner, modify or waive any of the requirements or conditions on
debt restructuring contained in this title in order to provide a simplified
debt restructuring for funding the rehabilitation of previously restructured
projects under this title. The Secretary may make a non-default partial or full
payment of claim under a mortgage insurance contract pursuant to section 541(b)
of the National Housing Act (12 U.S.C. 1735f–19(b)), notwithstanding the
limitation in section 541(b) to its one-time use. The Secretary may also modify
or waive any requirement or condition in such section 541(b) that the Secretary
considers inconsistent with the simplified debt restructuring authorized by
this paragraph.</text>
</subparagraph><subparagraph id="H6FA60DBEC2614096983AFDD7508D3772"><enum>(C)</enum><header>Contribution</header><text>The
project owner receiving rehabilitation assistance under this paragraph shall
not be required to make the contribution specified in paragraph (1)(B) or
(2)(C), except to the extent the Secretary increases project rents to provide
for a return of the owner’s contribution over such period as the Secretary
shall
determine.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HFCDE6B63166A45EF965C63A603426404"><enum>509.</enum><header>Independent
appraisal requirement in cases of divergent rent studies</header><text display-inline="no-display-inline">Section 524(a)(5) 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 new sentence: <quote>In connection
with a contract renewal under this section or section 515, if the comparable
market rent determination made by the Secretary and the owner’s appraiser
differ by 15 percent or more, the owner may request a third appraiser, jointly
selected and compensated by the Secretary and the owner, to make a comparable
market rent determination that shall be binding on both
parties.</quote>.</text>
</section><section id="H43DB70863CA040479CAB33A126AE79CB"><enum>510.</enum><header>Extension of
housing assistance payment contract</header>
<subsection id="HD1A774C58C7949CEAA075DBF15BB348E"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Section 524(a) 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 new paragraph:</text>
<quoted-block id="HD08D66E9CB4642D598C24A80E78A7DBF" style="OLC">
<paragraph id="HF60D0F2F9C3A49C0B60C0EC5027EF6A8"><enum>(6)</enum><header>Extension of
contract term</header><text>In connection with the refinancing or sale of a
project covered by a contract renewed under this subsection, the Secretary
shall, at the request of the owner, amend the contract to extend the term to 30
years or such shorter term as the owner may request. Such an extension shall be
subject to the availability of sufficient amounts provided in appropriation
Acts.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HE6E1E5AAA2DB4153B009E986E2420E4B"><enum>(b)</enum><header>Exception rent
projects</header><text display-inline="yes-display-inline">Section 524(b) 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 new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H3F20F27815AC4FECA92908DDA3585888" style="OLC">
<paragraph id="H52901FD0A97F4CEEB5ACEDF76BED7E75"><enum>(4)</enum><header>Extension of
contract term</header><text display-inline="yes-display-inline">In connection
with the refinancing or sale of a project covered by a contract renewed under
this subsection, the Secretary shall, at the request of the owner, amend the
contract to extend the term to 30 years or such shorter term as the owner may
request. Such an extension shall be subject to the availability of sufficient
amounts provided in appropriation
Acts</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HC6DC1C59EDD643A2B201CD11D51847F1"><enum>511.</enum><header>Otherwise
eligible projects</header><text display-inline="no-display-inline">Section 514
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 new
subsection:</text>
<quoted-block id="H2A9ADC98EF8747739BA35D390289E2C5" style="OLC">
<subsection id="HBB9B07D2BC0342C6B347DCE16ED2A082"><enum>(i)</enum><header>Other eligible
projects</header>
<paragraph id="HE483A7296B1142DFBE1527D51F01B43D"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="H20E06FD38B8E4D99AFE40DAB91069480"><enum>(2)</enum><header>Owner
request</header>
<subparagraph id="H07B546836E7D4C108A0C91E6A1563797"><enum>(A)</enum><header>Request
required</header><text>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.</text>
</subparagraph><subparagraph id="H3C59A065182044CDA12E0C543E0C9767"><enum>(B)</enum><header>No adverse
treatment if no request made</header><text>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.</text>
</subparagraph></paragraph><paragraph id="HECFEB2D2C52C49CD8D479DBAB852C084"><enum>(3)</enum><header>Cancellation</header>
<subparagraph id="H67478C00BF94434A817DCB8826D6122E"><enum>(A)</enum><header>Timing</header><text>At
any time prior to the completion of a mortgage restructuring under this
subtitle, the owner of a project may—</text>
<clause id="HBF1636976613429B9CAB1CD55121B6E4"><enum>(i)</enum><text>withdraw any
request made under paragraph (2)(A); and</text>
</clause><clause id="HEC494A45E8704096A51BB0B3C26EF73B"><enum>(ii)</enum><text>pursue any other
option with respect to the renewal of such owner’s section 8 contract pursuant
to any applicable statute or regulation.</text>
</clause></subparagraph><subparagraph id="HA2A4D1B458664762B738CEDD4EC10E61"><enum>(B)</enum><header>Documentation</header><text>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.</text>
</subparagraph></paragraph><paragraph commented="no" id="H069ABCDC56B942D0A2BEB4AE730D49E8"><enum>(4)</enum><header>Limitation</header><text>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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H4A1F05BBB4CD4D94939D82FAB9A77310"><enum>512.</enum><header>Exception
rents</header><text display-inline="no-display-inline">In the matter preceding
clause (i) of section 514(g)(2)(A) of the Multifamily Assisted Housing Reform
and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended—</text>
<paragraph id="H5E1968BED473490B87F43B99E8D527A3"><enum>(1)</enum><text>by inserting
<quote>disaster-damaged eligible projects and</quote> after <quote>waive this
limit for</quote>; and</text>
</paragraph><paragraph id="HBF91C2C879BB46CC9EE01CCAAE7F9402"><enum>(2)</enum><text>by striking
<quote>five percent of all units</quote> and inserting <quote>9 percent of all
units</quote>.</text>
</paragraph></section><section display-inline="no-display-inline" id="HACB8D142D5BE4926BDDAB658A3C9FDA1" section-type="subsequent-section"><enum>513.</enum><header>Disaster-damaged
eligible projects</header>
<subsection id="HE963A134E749491AAA77BB39F9213748"><enum>(a)</enum><header>Market rent
determination</header><text>Section 514(g)(1)(B) of the Multifamily Assisted
Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended
by striking “determined, are equal” and inserting the following:</text>
<quoted-block display-inline="yes-display-inline" id="HFBB41B592E9E42B1866F3F15B3E812A6" style="OLC">
<text>determined—</text><clause id="H6DE5D760F77D44B59E47C12D137F47B8"><enum>(i)</enum><text display-inline="yes-display-inline">with respect to a disaster-damaged
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</text>
</clause><clause id="HB117A8339B5047689049578EB0C1EC5F"><enum>(ii)</enum><text>with respect to
other eligible multifamily housing projects, are
equal</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HBF16F8271DBD4B748404781CCB3C007D"><enum>(b)</enum><header>Owner
Investment</header><text>Section 517(c) 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:</text>
<quoted-block display-inline="no-display-inline" id="HF6D551CC024447D6958CE63C94B20924" style="OLC">
<paragraph id="H706E474827E14C7E0081E7DB33A4ECF4"><enum>(3)</enum><header>Properties
damaged by natural disasters</header><text display-inline="yes-display-inline">With respect to a disaster-damaged eligible
property, the owner contribution toward rehabilitation needs shall be
determined in accordance with paragraph
(2)(C).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section display-inline="no-display-inline" id="H0E2C0D34E366488B89F397DEDA81EC4"><enum>514.</enum><header>Funding for
tenant and other participation and capacity building</header><text display-inline="no-display-inline">Paragraph (3) of section 514(f) of the
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437f note) is amended—</text>
<paragraph id="HAADC6D5146724D3282C6A0F75668DE6F"><enum>(1)</enum><text>in subparagraph
(A)—</text>
<subparagraph id="HB4DCE01DE3B04B30ADC8380365445386"><enum>(A)</enum><text>in the first
sentence—</text>
<clause id="HD10FE9E59C4F49A7A89C421BC18E045F"><enum>(i)</enum><text>by
striking <quote>not more than</quote> and inserting <quote>not less
than</quote>;</text>
</clause><clause id="HE137DC158EDF4D19A02B29DEFFBB3C6D"><enum>(ii)</enum><text>by
striking <quote>of low-income housing for which project-based rental assistance
is provided at below market rent levels and may not be renewed</quote> and
inserting the following: <quote>and improvement of low-income housing for which
project-based rental assistance, subsidized loans, or enhanced vouchers under
section 8(t) are provided</quote>; and</text>
</clause><clause id="H6DC6F7CF0C7C4BD1B35590E2B76BCC23"><enum>(iii)</enum><text>in
the second parenthetical clause, by inserting before the closing parenthesis
the following: <quote>, and predevelopment assistance to enable such
transfers</quote>; and</text>
</clause></subparagraph><subparagraph id="HA97D5B465B134650AF084B09479E8B00"><enum>(B)</enum><text>by inserting after
the period at the end the following: <quote>For outreach and training of
tenants and technical assistance, the Secretary shall implement a grant program
utilizing performance-based outcome measures for eligible costs incurred.
Recipients providing capacity building or technical assistance services to
tenant groups shall be qualified nonprofit Statewide, countywide, area-wide or
citywide organizations with demonstrated experience including at least a
two-year recent track record of organizing and providing assistance to tenants,
and independence from the owner, a prospective purchaser, or their managing
agents. The Secretary may provide assistance and training to grantees in
administrative and fiscal management to ensure compliance with applicable
Federal requirements. The Secretary shall expedite the provision of funding for
the fiscal year in which the date of the enactment of the
<short-title>Housing Preservation and Tenant Protection
Act of 2010</short-title> occurs by entering into new multi-year contracts with
any prior grantee without adverse audit findings or whose adverse audit
findings have been cleared, and by entering into an interagency agreement for
not less than $1,000,000 with the Corporation for National and Community
Service or any other agency of the Federal Government, that is selected by the
Secretary and the Secretary determines is qualified to conduct such program, to
conduct a tenant outreach and training program under the same or similar terms
and conditions as was most recently conducted by the Corporation. The Secretary
shall also make available flexible grants to qualified nonprofit organizations
that do not own eligible multifamily properties, for tenant outreach in
underserved areas, and to experienced national or regional nonprofit
organizations to provide specialized training or support to grantees assisted
under this section. Notwithstanding any other provision of law, funds
authorized under this section for any fiscal year shall be available for
obligation in subsequent fiscal years. The Secretary shall require each
recipient of amounts made available pursuant to this subparagraph to submit to
the Secretary reports, on a quarterly basis, detailing the use of such funds
and including such information as the Secretary shall require.</quote>;
and</text>
</subparagraph></paragraph><paragraph id="H2563C74FF5774DD0B1D2A846E38E2D08"><enum>(2)</enum><text>by adding at the
end the following new subparagraphs:</text>
<quoted-block display-inline="no-display-inline" id="H6E86A0845F0C4D8FB877E2A881ADBFAF" style="OLC">
<subparagraph id="HAEA6C7DB19B34C2A8BA0A3CEE3EFB5B8"><enum>(D)
</enum><header>Prohibitions</header><text display-inline="yes-display-inline">None of the funds made available under
subparagraph (A) may be used for any political activities, political advocacy,
or lobbying (as such terms are defined by Circular A–122 of the Office of
Management and Budget, entitled <quote>Cost Principles for Non-Profit
Organizations</quote>), or for expenses for travel to engage in political
activities or preparation of or provision of advice on tax returns.</text>
</subparagraph><subparagraph id="H8216ADD237954D99B3C53ED400864D68"><enum>(E)</enum><header>Program
compliance systems</header><text display-inline="yes-display-inline">Each
recipient of amounts made available under subparagraph (A) shall develop
systems to ensure compliance with the program and the requirements of this
paragraph.</text>
</subparagraph><subparagraph id="HAD267F2AB0D4423FAD788961033800BC"><enum>(F)</enum><header>Penalties</header><text>The
Secretary may impose penalties on any recipient of amounts made available under
subparagraph (A) that fails to comply with any requirement under this paragraph
or of the program established pursuant to this paragraph, which penalties may
include—</text>
<clause id="HCDEFCB938E31465CB17962BEE5435C00"><enum>(i)</enum><text>ineligibility for
further assistance from amounts made available under subparagraph (A);
and</text>
</clause><clause id="H91A82D4FE1734EDFAB65FC1117009505"><enum>(ii)</enum><text>requiring the
recipient to reimburse the Secretary for any amounts that were so
misused.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><enum>VI</enum><header>Preservation
database</header>
<section id="HB56C9116BE764F13A0091BD74E263C33"><enum>601.</enum><header>Preservation
database</header>
<subsection id="HCA8508BC0E884649BA7A4F6D50E859F0"><enum>(a)</enum><header>Unique
identifier</header><text display-inline="yes-display-inline">The Secretary of
Housing and Urban Development, in consultation with the Secretary of
Agriculture, shall establish a unique alphanumeric identifier for each covered
multifamily property (as such term is defined in subsection (i)). A property
shall have only one such identifier, regardless of whether such property is
receiving more than one of the forms of assistance identified in subsection
(i).</text>
</subsection><subsection id="H0D1AED74BB63404ABC1B5980BF4CC053"><enum>(b)</enum><header>Public
availability of information</header><text>The Secretary of Housing and Urban
Development shall require the submission of information and make publicly
available such information about each covered multifamily property, which
information shall include the following:</text>
<paragraph id="HB88F098A910E4177A6FF68D67916D6A0"><enum>(1)</enum><text>The unique
identifier for the property established pursuant to subsection (a).</text>
</paragraph><paragraph id="HA85165D0101940D6B54536379C205FE9"><enum>(2)</enum><text>The name of the
property.</text>
</paragraph><paragraph id="HC0014714648C49719320BE1B26383108"><enum>(3)</enum><text display-inline="yes-display-inline">The address and geographical coordinates of
the property.</text>
</paragraph><paragraph id="H598FF4F2BB2D472E9AB44271801A7AEA"><enum>(4)</enum><text display-inline="yes-display-inline">The name of, and contact information for,
the owner (or owners) or sponsor (or sponsors) of the property.</text>
</paragraph><paragraph id="H0B7CF998AD3242DA84C8E320ED6680A7"><enum>(5)</enum><text>A
characterization of the type of owners or sponsors of the property (such as
nonprofit or for-profit).</text>
</paragraph><paragraph id="HBD5A359F7BCB4FF6A3274B50D836A2C5"><enum>(6)</enum><text>The name of, and
contact information for, the property management company.</text>
</paragraph><paragraph id="HCF3E117E29624C9693DEE83B1C70F85A"><enum>(7)</enum><text>The year that the
property was built or placed in service.</text>
</paragraph><paragraph id="H0CF0998F05B4476A9150B5FC368DD183"><enum>(8)</enum><text>The total number
of dwelling units in the property.</text>
</paragraph><paragraph id="HA06AA70A672C438B93313D4ADE4ABD71"><enum>(9)</enum><text>The total number
of dwelling units in the property of each size (such as studio units, 1-bedroom
units, or 2-bedroom units).</text>
</paragraph><paragraph id="H06C506AE829046798863FE16A336A502"><enum>(10)</enum><text display-inline="yes-display-inline">The average income of tenants residing in
dwelling units in the property receiving project-based rental assistance,
according to the most recent available information.</text>
</paragraph><paragraph id="H0128C1BCE2724877BC37C208C1820033"><enum>(11)</enum><text>For each size of
dwelling unit in the property, the contract rents for such dwelling
units.</text>
</paragraph><paragraph id="H34A82AB8B53B467FA68F464BC9258EA3"><enum>(12)</enum><text display-inline="yes-display-inline">For each size of dwelling unit in the
property, the ratio of the contract rents for such dwelling units to the fair
market rent established under section 8(c) of the United States Housing Act of
1937 for such size dwelling units for the area in which the property is
located.</text>
</paragraph><paragraph id="HD1F9FE4CE6E44ECAAC985A74F512B89C"><enum>(13)</enum><text>The most recent 3
scores for the property for any physical inspections, including any real estate
assessment center (REAC) scores for the property, and the dates of such
inspections.</text>
</paragraph><paragraph id="H9CFDF842396941A5B7344A4567E91451"><enum>(14)</enum><text display-inline="yes-display-inline">Indicators of the financial condition of
the property, which may include notification of any foreclosure proceedings on
the property and any bankruptcy filings by the entity holding title to the
property.</text>
</paragraph><paragraph id="H562F823B420C4AE8862A0B3F01038D14"><enum>(15)</enum><text>The form or forms
of assistance identified in subsection (i) that are provided for the
property.</text>
</paragraph><paragraph id="H107721C442CC4783BE649E64961EC951"><enum>(16)</enum><text>For each form of
assistance identified in subsection (i) that is provided for the property, the
total number of dwelling units in the property for which such assistance is
provided.</text>
</paragraph><paragraph id="H7099C5296A17484588D50C165CD7107F"><enum>(17)</enum><text display-inline="yes-display-inline">For each form of assistance identified in
subsection (i) that is provided for the property, the total number of assisted
dwelling units in the property of each size (such as studio units, 1-bedroom
units, and 2-bedroom units).</text>
</paragraph><paragraph id="H4109014CF7A54F9ABC8C22056E67CCAF"><enum>(18)</enum><text display-inline="yes-display-inline">For each form of assistance identified in
subsection (i) that is provided for the property, a characterization of
occupancy restrictions applicable to the property (such as restrictions
limiting occupancy to only elderly, disabled, or families).</text>
</paragraph><paragraph id="H03A505D083CE422696614B06AAA882BA"><enum>(19)</enum><text>For each form of
assistance identified in subsection (i) that is provided for the property, any
limitations on the incomes of tenants applicable to the assistance.</text>
</paragraph><paragraph id="H70CF7A0B64984BEDA9F5EB34A96EF484"><enum>(20)</enum><text display-inline="yes-display-inline">For each form of assistance identified in
subsection (i) that is provided for the property, the day, month, and year that
any affordability or low-income use restrictions applicable to the property
first applied.</text>
</paragraph><paragraph id="HE02971CCD7154225ADA28D4C341B0AF9"><enum>(21)</enum><text display-inline="yes-display-inline">For each form of assistance identified in
subsection (i) that is provided for the property, the day, month, and year that
any affordability or low-income use restrictions applicable to the property
will terminate.</text>
</paragraph><paragraph id="H22147E1283F54038858AD72BA2C61088"><enum>(22)</enum><text display-inline="yes-display-inline">For each form of assistance identified in
subsection (i) that is provided for the property, the day, month, and year of
any early termination date for such form of assistance after which any
affordability or low-income use restrictions will not necessarily apply to the
property (such as the termination of the compliance period for any low-income
housing tax credit for the property or the date that a loan or mortgage for the
property held or insured by the Secretary is first eligible for
prepayment).</text>
</paragraph><paragraph id="H668369C2DD654DD09951178C2DF9C616"><enum>(23)</enum><text>Any notices,
plans, and information relating to the property required under the Low-Income
Housing Preservation and Resident Homeownership Act of 1990 (12 U.S.C. 4101 et
seq.), including any notice of intent to prepay a mortgage under section 212 of
such Act, information provided under section 216 of such Act by the Secretary,
second notice of intent under section 216(d) of such Act, plan of action under
section 217 of such Act, and notice of approval of a plan of action under
section 225 of such Act.</text>
</paragraph><paragraph id="H15D927F7F0D94064AEAF66062880B88E"><enum>(24)</enum><text>Any notice of a
request to terminate an insurance contract under title II of the National
Housing Act for a loan or mortgage on the property.</text>
</paragraph><paragraph id="H1B7A279BF61741A28FC1ADFD4E56D852"><enum>(25)</enum><text display-inline="yes-display-inline">Any notice of a request to prepay a loan or
mortgage on the property insured under title II of the National Housing Act and
an indication of whether such request was made in conjunction with a refinance
application under such title.</text>
</paragraph><paragraph id="HE1B32925DC954C11AD9E936C263FACE3"><enum>(26)</enum><text>Any notice under
section 8(c)(8) of the United States Housing Act of 1937 of proposed
termination of an assistance contract under such section for the
property.</text>
</paragraph><paragraph id="HC168F02726394FFA9967822021A1A558"><enum>(27)</enum><text>A description of
any notice indicating an intention of the owner in selling the property.</text>
</paragraph><paragraph id="HA8638540EF1D4DC4803781E5DA0268E6"><enum>(28)</enum><text display-inline="yes-display-inline">Any other information as the Secretary or
the designee of the Secretary determines is appropriate.</text>
</paragraph></subsection><subsection id="H34E73F2DD9654BA6B827CD65A272C6E7"><enum>(c)</enum><header>Means</header>
<paragraph id="HD875C6BED1224BBC9AB9C1CF7AF4C087"><enum>(1)</enum><header>Availability
through world wide web</header><text display-inline="yes-display-inline">The
information made available pursuant to subsection (b) shall be made available
to the public through a World Wide Web site of the Department of Housing and
Urban Development.</text>
</paragraph><paragraph id="H1F89A719B8934674AF93A6152E9087F3"><enum>(2)</enum><header>Searchable
electronic database</header><text display-inline="yes-display-inline">Such
information shall be made available in a searchable electronic database format
that allows for the data for each of the forms of assistance specified in
subsection (i) to be aggregated in a single database.</text>
</paragraph><paragraph id="HE62DA3A0F0B74312A764959DE2E7EA56"><enum>(3)</enum><header>Use of existing
systems and databases</header><text>The requirements of subsection (b) may be
met by adapting existing systems or databases to include the unique identifier
established pursuant to subsection (a) and the information specified in
subsection (b).</text>
</paragraph><paragraph id="HAEBA7040ED79486B889A4B114328A241"><enum>(4)</enum><header>Annual and
quarterly list</header><text display-inline="yes-display-inline">At least
annually, the Secretary shall update and make available a list of properties
receiving one of more forms of assistance specified in subsection (i). At least
on a quarterly basis, the Secretary shall make available through a World Wide
Web site of the Department of Housing and Urban Development a list of
properties receiving one or more forms of assistance specified in subsection
(i). Each such annual and quarterly list shall include, for each such property,
the unique identifier established pursuant to subsection (a) and the
information specified in paragraphs (1) through (3) of subsection (b).</text>
</paragraph></subsection><subsection id="HEB4B4A48FCC74F03BCCE3F1B14C8CBFE"><enum>(d)</enum><header>Updating</header><text display-inline="yes-display-inline">The information made available pursuant to
subsection (b) shall be updated not less than annually or in accordance with
any rules or practice applicable to the subsidy program involved that require
information to be made available more frequently. Any historical databases
shall remain available to the public through a World Wide Web site of the
Department of Housing and Urban Development.</text>
</subsection><subsection id="H6808535D17444EA491A58AB4ECB4C363"><enum>(e)</enum><header>Initial
availability</header><text>The Secretary of Housing and Urban Development shall
make information initially publicly available pursuant to this section not
later than the expiration of the 18-month period beginning on the date of the
enactment of this Act.</text>
</subsection><subsection id="HB477E5273B244B799197F697D9D1FEF2"><enum>(f)</enum><header>Information from
Department of Agriculture</header><text>The Secretary of Agriculture shall take
such actions as may be necessary to ensure that information regarding any
covered multifamily properties described in paragraphs (1)(E) and (3)(G) of
subsection (i) that is sufficient for the Secretary of Housing and Urban
Development to comply with the requirements of this section, with respect to
such properties, is timely made available to the Secretary of Housing and Urban
Development.</text>
</subsection><subsection id="H553872D8BB074581BF8EB3D2B574D836"><enum>(g)</enum><header>Information from
Secretary of the Treasury</header><text display-inline="yes-display-inline">The
Secretary of the Treasury shall take such actions as may be necessary to ensure
that information regarding any covered multifamily properties described in
paragraphs (4) and (6) of subsection (i) that is sufficient for the Secretary
of Housing and Urban Development to comply with the requirements of this
section, with respect to such properties, is timely made available to the
Secretary of Housing and Urban Development.</text>
</subsection><subsection id="H1D1471CDC71C4762BAC345018F3138F8"><enum>(h)</enum><header>Grants to States
and localities</header>
<paragraph id="H393DB0B6B4534F0CB34B4FA7E96F71DA"><enum>(1)</enum><header>Authority</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban
Development shall, to the extent amounts are made available for grants under
this subsection, make grants to States and units of local government to enable
such entities to collect and make available to the public information about
State and local assistance provided to covered multifamily properties
identified in databases developed by the Secretary pursuant to this section or
to other properties assisted by such States and units of local
government.</text>
</paragraph><paragraph id="HCFA510C475074898B8BA40A1B28F737C"><enum>(2)</enum><header>Authorization of
appropriations</header><text>There is authorized to be appropriated to the
Secretary of Housing and Urban Development for grants under this subsection
such sums as may be necessary in each fiscal year to carry out this
subsection.</text>
</paragraph></subsection><subsection id="HFC19F327461A4B48B710FBB33779A729"><enum>(i)</enum><header>Covered
multifamily properties</header><text>For purposes of this section, the term
<quote>covered multifamily property</quote> means a property consisting of more
than 4 rental dwelling units, which property—</text>
<paragraph id="HE3707550E8864AA09796976400E5D16F"><enum>(1)</enum><text display-inline="yes-display-inline">is covered in whole or in part by a
contract for assistance that is attached to the structure under—</text>
<subparagraph id="H577BC25705624E81BDF77655293265E1"><enum>(A)</enum><text>section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f), including—</text>
<clause id="HF6B4DB17D5B5443E8B8BC7C8F27ED859"><enum>(i)</enum><text>subsections (b)
and (o)(13) of such section 8;</text>
</clause><clause id="H14110D1DD70E498BA9F44820B37AA218"><enum>(ii)</enum><text>the
new construction and substantial rehabilitation program under such section
8(b)(2), as in effect before October 1, 1983;</text>
</clause><clause id="H7DA4403ED25844A99E77107F78759014"><enum>(iii)</enum><text>the property
disposition program under such section 8(b);</text>
</clause><clause id="H3CFDC5656FEB4CF9AF7DCDF77D9CCF21"><enum>(iv)</enum><text>the
moderate rehabilitation program under such section 8(e)(2); and</text>
</clause><clause id="H5282EF462399459F9E66B1AB1B60F295"><enum>(v)</enum><text>the
loan management assistance program under such section 8;</text>
</clause></subparagraph><subparagraph id="H6A01C474FC37475F9530979E7A2A7132"><enum>(B)</enum><text>section 23 of the
United States Housing Act of 1937, as in effect before January 1, 1975;</text>
</subparagraph><subparagraph id="H6FF44B2D9F2B4731A3F55E1EA296B5C9"><enum>(C)</enum><text>the rent
supplement program under section 101 of the Housing and Urban Development Act
of 1965 (12 U.S.C. 1701s);</text>
</subparagraph><subparagraph id="HCCBEC2279A7540ECA147DA1590B9D2F0"><enum>(D)</enum><text>section 8 of the
United States Housing Act of 1937, following conversion from assistance under
section 101 of the Housing and Urban Development Act of 1965; or</text>
</subparagraph><subparagraph id="HC000929197114E7EBD89FFC8B3849FC6"><enum>(E)</enum><text>section 521 of the
Housing Act of 1949 (42 U.S.C. 1490a);</text>
</subparagraph></paragraph><paragraph id="H10D5B44D76A84DEFA218FF2242A94F07"><enum>(2)</enum><text>is financed by a
mortgage insured or held by the Secretary under title II of the National
Housing Act (12 U.S.C. 1707 et seq.);</text>
</paragraph><paragraph id="HD13B9449E139495AA66D7872CF858A6F"><enum>(3)</enum><text>receives
assistance that is attached to the structure pursuant to—</text>
<subparagraph id="H26965E8329624B74AFDC4027D063DC3D"><enum>(A)</enum><text>section 202 of the
Housing Act of 1959 (12 U.S.C. 1701q), including properties receiving
assistance prior to the enactment of the Cranston-Gonzalez National Affordable
Housing Act;</text>
</subparagraph><subparagraph id="H3745DE3B337A41E0941BCE5D24E61225"><enum>(B)</enum><text>section 811 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013);</text>
</subparagraph><subparagraph id="H8CC135B2FB2B48F992D5052B76AAF434"><enum>(C)</enum><text>section 5 or 9 of
the United States Housing Act of 1937 (42 U.S.C. 1437c, 1437g);</text>
</subparagraph><subparagraph id="HEF2C017D14404FD6BAB4A5C7876804AE"><enum>(D)</enum><text>title II of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et
seq.);</text>
</subparagraph><subparagraph id="H471F99F1D4F44D8A8E79E0330D5F9B58"><enum>(E)</enum><text>subtitle D of
title VIII of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
12901 et seq.);</text>
</subparagraph><subparagraph id="H8E9ECCBA91B64FBABD99AC7C700BAE6B"><enum>(F)</enum><text>title IV of the
McKinney-Vento Homeless Assistance Act (12 U.S.C. 11301 et seq.); or</text>
</subparagraph><subparagraph id="HC20B99038715438EA6531EDFB29E90C4"><enum>(G)</enum><text display-inline="yes-display-inline">sections 514, 515, or 516 of the Housing
Act of 1949 (42 U.S.C. 1484, 1485);</text>
</subparagraph></paragraph><paragraph id="H3EC573C181FD4D5497EFC61249EC4682"><enum>(4)</enum><text>is financed in
whole or part with low-income housing tax credits pursuant to section 42 of the
Internal Revenue Code of 1986 (26 U.S.C. 42);</text>
</paragraph><paragraph id="H8B88302729E9485C8B7F77DADEC71E9D"><enum>(5)</enum><text>is financed in
whole or part with amounts from the Housing Trust Fund established under
section 1338 of the Federal Housing Enterprises Financial Safety and Soundness
Act of 1992 (12 U.S.C. 4568); or</text>
</paragraph><paragraph id="H0C4C2FC948EC41FB816D72952AAC9027"><enum>(6)</enum><text>is financed in
whole or in part with the proceeds from a bond issued pursuant to section 141
or 142 of the Internal Revenue Code of 1986 (26 U.S.C. 141, 142).</text>
</paragraph></subsection><subsection id="H5E649117FB4C482EA90A5E85E80FB15E"><enum>(j)</enum><header>Protection of
information</header><text display-inline="yes-display-inline">This title shall
not be construed to require disclosure of Social Security numbers, personal tax
returns, or any other personal financial information of or concerning
individuals who have an interest in the ownership or management entities of
covered housing.</text>
</subsection></section><enum>VII</enum><header>Section 202
Supportive Housing for the Elderly</header>
<section display-inline="no-display-inline" id="HE752EF6D2BAE45B79BB8DAE6A12D1DE3" section-type="subsequent-section"><enum>701.</enum><header>Short title and
table of contents</header><text display-inline="no-display-inline">This title
may be cited as the <quote><short-title>Section 202
Supportive Housing for the Elderly Act of 2010</short-title></quote>.</text>
</section><subtitle id="H455B31F3BF7E4DF5A27C7F70F21940B4"><enum>A</enum><header>New construction
reforms</header>
<section id="HC0BD7500164E478D98A5AC65D1267635"><enum>711.</enum><header>Project rental
assistance</header><text display-inline="no-display-inline">Paragraph (2) of
section 202(c) of the Housing Act of 1959 (12 U.S.C. 1701q(c)(2)) is
amended—</text>
<paragraph id="H8DF22D7CFD1044A494034C2E9B5CB8A7"><enum>(1)</enum><text>by inserting after
<quote><header-in-text level="paragraph" style="OLC">assistance</header-in-text>.—</quote> the following: <quote>(A)
<header-in-text level="subparagraph" style="OLC">Initial project rental
assistance contract</header-in-text>.—</quote>;</text>
</paragraph><paragraph id="H9C448F3FC78748CCA756E0AE009FE5BF"><enum>(2)</enum><text>in the last
sentence, by striking <quote>may</quote> and inserting <quote>shall</quote>;
and</text>
</paragraph><paragraph id="HC01D5473EFE14B4C984CDAD8CE3FDD9E"><enum>(3)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block id="H95235649CCB045199BF97BFB00536795" style="OLC">
<subparagraph id="H084543E892B94576AD3F66ED5EDD8B6C" indent="up1"><enum>(B)</enum><header>Renewal of and increases in contract
amounts</header>
<clause id="H1781D79B4D554B9B93E1B63502DE001D"><enum>(i)</enum><header>Expiration of contract
term</header><text>Upon the expiration of each contract term, the Secretary
shall adjust the annual contract amount to provide for reasonable project
costs, and any increases, including adequate reserves, supportive services, and
service coordinators.</text>
</clause><clause id="HE5562F978EE04D749201C6F41DACBB00"><enum>(ii)</enum><header>Emergency
situations</header><text display-inline="yes-display-inline">In the event of
emergency situations that are outside the control of the owner, the Secretary
shall increase the annual contract amount, subject to reasonable review and
limitations as the Secretary shall
provide.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HC296B79570444BF09100E35849C7502D"><enum>712.</enum><header>Selection
criteria</header><text display-inline="no-display-inline">Section 202(f)(1) of
the Housing Act of 1959 (12 U.S.C. 1701q(f)) is amended—</text>
<paragraph id="H82AF32A0859540FE82E03B7D6463F074"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subparagraphs (F) and (G)
as subparagraphs (G) and (H), respectively; and</text>
</paragraph><paragraph id="HF4D88C6900954EC800C790DC53E0D813"><enum>(2)</enum><text>by inserting after
subparagraph (E):</text>
<quoted-block display-inline="no-display-inline" id="H325F0B16AFFD4B03B674CC59BFABEA41" style="OLC">
<subparagraph id="HD6EBA81596754A6F8117FA289555BBA0" indent="up1"><enum>(F)</enum><text>the extent to which the applicant has
ensured that a service coordinator will be employed or otherwise retained for
the housing, who has the managerial capacity and responsibility for carrying
out the actions described in subparagraphs (A) and (B) of subsection
(g)(2);</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HF816196A531944569CB18317969D3C70"><enum>713.</enum><header>Development
cost limitations</header><text display-inline="no-display-inline">Section
202(h)(1) of the Housing Act of 1959 (12 U.S.C. 1701q(h)(1)) is amended, in the
matter preceding subparagraph (A), by inserting <quote>reasonable</quote>
before <quote>development cost limitations</quote>.</text>
</section><section id="H141E2014F8604647B5F9A369384071E6"><enum>714.</enum><header>Owner
deposits</header><text display-inline="no-display-inline">Section 202(j)(3)(A)
of the Housing Act of 1959 (12 U.S.C. 1701q(j)(3)(A)) is amended by inserting
after the period at the end the following: <quote>Such amount shall be used
only to cover operating deficits during the first 3 years of operations and
shall not be used to cover construction shortfalls or inadequate initial
project rental assistance amounts.</quote>.</text>
</section><section id="H60121FFCE17842D2B92061E16F99324E"><enum>715.</enum><header>Definition of
private nonprofit organization</header><text display-inline="no-display-inline">Paragraph (4) of section 202(k) of the
Housing Act of 1959 (12 U.S.C. 1701q(k)(4)) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HF411D0772E3F4FD2A6F459DF0CA2773C" style="OLC">
<paragraph id="H782E4C80F8D541E49BD657EC94595EE1"><enum>(4)</enum><text display-inline="yes-display-inline">The term “private nonprofit organization”
means—</text>
<subparagraph id="HADC07ABE06D14842A599D0EF4FA00F5A"><enum>(A)</enum><text>any incorporated
private institution or foundation—</text>
<clause id="H4AB0E2DA476B48D69313C4836A9D543B"><enum>(i)</enum><text>no
part of the net earnings of which inures to the benefit of any member, founder,
contributor, or individual;</text>
</clause><clause id="H71A360E5200648C3B3E78F80E100786F"><enum>(ii)</enum><text>which has a
governing board—</text>
<subclause id="H893B8124DEC94898A487E9BEBC1C859D"><enum>(I)</enum><text>the membership of
which is selected in a manner to assure that there is significant
representation of the views of the community in which such housing is located,
except that, in the case of any organization that is the sponsor of multiple
housing projects assisted under this section, the organization may comply with
this subclause by having a local advisory board for each community to the
governing board of the organization, the membership of which is selected in the
manner required under this subclause; and</text>
</subclause><subclause id="HAD016B3063964EC8B12BEE75AD44DEA2"><enum>(II)</enum><text>which is
responsible for the operation of the housing assisted under this section;
and</text>
</subclause></clause><clause id="HB09B28EFE77642BCA635A514A1CFA195"><enum>(iii)</enum><text>which is
approved by the Secretary as to financial responsibility;</text>
</clause></subparagraph><subparagraph id="HDD962316495D429CBB41747EE018082B"><enum>(B)</enum><text>a for-profit
limited partnership the sole general partner of which is—</text>
<clause id="HCA51E38FB47541D4884F5C2414509A81"><enum>(i)</enum><text>an
organization meeting the requirements under subparagraphs (A); or</text>
</clause><clause id="H39DFC824DDAD42ABADB4662F6E8BF8D7"><enum>(ii)</enum><text>a
for-profit corporation wholly owned and controlled by one or more organizations
meeting the requirements under subparagraph (A); and</text>
</clause></subparagraph><subparagraph id="HC9F0B380F48D4A23830A6FA90801B5DF"><enum>(C)</enum><text>a limited
liability company wholly owned or controlled by one or more organizations
meeting the requirements under subparagraph
(A).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HFD15C4C85AB34559B2A8CDD1C0711CA1"><enum>716.</enum><header>Preferences for
homeless elderly</header><text display-inline="no-display-inline">Subsection
(j) of section 202 of the Housing Act of 1959 (12 U.S.C. 1701q(j)) is amended
by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H600D1B51B2F348B48BC9B69847009BB" style="OLC">
<paragraph id="H3A18DCA6B0604DF0A5C2893751C4DEC6"><enum>(9)</enum><header>Preferences for
homeless elderly</header><text display-inline="yes-display-inline">The
Secretary shall permit an owner of housing assisted under this section to
establish for, and apply to, such housing a preference in tenant selection for
the homeless elderly, either within the application or after selection pursuant
to subsection (f), but only if—</text>
<subparagraph id="HE0FE856699FF43CDA7D017B97E1FC00"><enum>(A)</enum><text>such preference is
consistent with paragraph (2); and</text>
</subparagraph><subparagraph id="H430ADD4D0ED948C4B45BC598D5C759F"><enum>(B)</enum><text>the owner
demonstrates that the supportive services identified pursuant to subsection
(e)(4), or additional supportive services to be made available upon
implementation of the preference, will meet the needs of the homeless elderly,
maintain safety and security for all tenants, and be provided on a consistent,
long-term, and economical
basis.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H9E208136F63C439AACA465B925285BBE"><enum>717.</enum><header>Nonmetropolitan
allocation</header><text display-inline="no-display-inline">Paragraph (3) of
section 202(l) of the Housing Act of 1959 (12 U.S.C. 1701q(l)(3)) is amended by
inserting after the period at the end the following: <quote>In complying with
this paragraph, the Secretary shall either operate a national competition for
the nonmetropolitan funds or make allocations to regional offices of the
Department of Housing and Urban Development.</quote>.</text>
</section></subtitle><subtitle id="H185D63A11857425AA07B00400165566C"><enum>B</enum><header>Refinancing</header>
<section id="H7129101DCB344A1DB641F57DA362E1F"><enum>721.</enum><header>Approval of
prepayment of debt</header><text display-inline="no-display-inline">Subsection
(a) of section 811 of the American Homeownership and Economic Opportunity Act
of 2000 (12 U.S.C. 1701q note) is amended—</text>
<paragraph id="H60EFEEE7763A4DC6B92280003110ACE4"><enum>(1)</enum><text>in the matter
preceding paragraph (1), by inserting <quote>, for which the Secretary’s
consent to prepayment is required,</quote> after <quote>Affordable Housing
Act)</quote>;</text>
</paragraph><paragraph id="HED093E70574549CFBD5E00A001699292"><enum>(2)</enum><text>in paragraph
(1)—</text>
<subparagraph id="HE0C573553C8F4A6E92EAEC8C419CF0BD"><enum>(A)</enum><text>by inserting
<quote>at least 30 years following</quote> before <quote>the maturity
date</quote>;</text>
</subparagraph><subparagraph id="HADCD14FC1884424FAEA63574A9EE6F84"><enum>(B)</enum><text>by inserting
<quote>project-based</quote> before <quote>rental assistance payments
contract</quote>;</text>
</subparagraph><subparagraph id="H76FC8B8854C747FDB6A36174FFC8337"><enum>(C)</enum><text>by inserting
<quote>project-based</quote> before <quote>rental housing assistance
programs</quote>; and</text>
</subparagraph><subparagraph id="H8238731E09C74649A5D28421A7275930"><enum>(D)</enum><text>by inserting
<quote>, or any successor project-based rental assistance program,</quote>
after <quote>1701s))</quote>;</text>
</subparagraph></paragraph><paragraph id="H649543AA5E69415E8846BEF44E9A0F1"><enum>(3)</enum><text>by
amending paragraph (2) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HFB06468A33024229987D9C3C40969B6F" style="OLC">
<paragraph id="H432B750D3B0A4FD39801BDDD2437A31F"><enum>(2)</enum><text>the prepayment may
involve refinancing of the loan if such refinancing results in—</text>
<subparagraph id="H3E5F749F3CE2473398204D64F5DAF3F"><enum>(A)</enum><text>a lower interest
rate on the principal of the loan for the project and in reductions in debt
service related to such loan; or</text>
</subparagraph><subparagraph id="H37CEEFF3E89D488FB88952A1AF98E9B"><enum>(B)</enum><text>a transaction in
which the project owner will address the physical needs of the project, but
only if, as a result of the refinancing—</text>
<clause id="H78B10886C2DE4EBA909468B9B4F0D577"><enum>(i)</enum><text>the rent charges
for unassisted families residing in the project do not increase or such
families are provided rental assistance under a senior preservation rental
assistance contract for the project pursuant to subsection (e); and</text>
</clause><clause id="H01E1D34E93B441C3AD2EA0EE2F87D2F1"><enum>(ii)</enum><text>the overall cost
for providing rental assistance under section 8 for the project (if any) is not
increased, except, upon approval by the Secretary to—</text>
<subclause id="H3431E0EA0F1D4B2EAF5E254DBF54233D"><enum>(I)</enum><text>mark-up-to-market
contracts pursuant to section 524(a)(3) of the Multifamily Assisted Housing
Reform and Affordability Act of 1997 (42 U.S.C. 1437f note), as such section is
carried out by the Secretary for properties owned by nonprofit organizations;
or</text>
</subclause><subclause id="H6FF42B63D1A545E98D2D744775F9ECE6"><enum>(II)</enum><text>mark-up-to-budget
contracts pursuant to section 524(a)(4) of the Multifamily Assisted Housing
Reform and Affordability Act of 1997 (42 U.S.C. 1437f note), as such section is
carried out by the Secretary for properties owned by eligible owners (as such
term is defined in section 202(k) of the Housing Act of 1959 (12 U.S.C.
1701q(k)); and</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="H8ABB702959534810A284AEFAEC037743"><enum>(4)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HEC4A0CD911494BE6A9DB4CB5C5BE9D" style="OLC">
<paragraph id="H09748CC034D245AA85C32FAEDE65E28"><enum>(3)</enum><text>notwithstanding
paragraph (2)(A), the prepayment and refinancing authorized pursuant to
paragraph (2)(B) involves an increase in debt service only in the case of a
refinancing of a project assisted with a loan under such section 202 carrying
an interest rate of 6 percent or
lower.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HDF85DAD03FB24554B98E6DA458E16F7F"><enum>722.</enum><header>Sources of
refinancing</header><text display-inline="no-display-inline">The last sentence
of section 811(b) of the American Homeownership and Economic Opportunity Act of
2000 (12 U.S.C. 1701q note) is amended—</text>
<paragraph id="H97B6E07C0AC74FA795AECF3BEFBF9EA"><enum>(1)</enum><text>by
inserting after <quote>National Housing Act,</quote> the following: <quote>or
approving the standards used by authorized lenders to underwrite a loan
refinanced with risk sharing as provided by section 542 of the Housing and
Community Development Act of 1992 (12 U.S.C. 1701 note), </quote>; and</text>
</paragraph><paragraph id="H40477BD709E74600B816B32887693953"><enum>(2)</enum><text>by striking
<quote>may</quote> and inserting <quote>shall</quote>.</text>
</paragraph></section><section id="HE06C09806F004E209611FC130373B1DE"><enum>723.</enum><header>Use of
unexpended amounts</header><text display-inline="no-display-inline">Subsection
(c) of section 811 of the American Homeownership and Economic Opportunity Act
of 2000 (12 U.S.C. 1701q note) is amended—</text>
<paragraph id="H78B29A4A04754429BF00885D073BC2D8"><enum>(1)</enum><text>by striking
<quote><header-in-text level="subsection" style="OLC">Use of unexpended
amounts</header-in-text>.—</quote> and inserting <quote><header-in-text level="subsection" style="OLC">Use of
pro‑ceeds</header-in-text>.—</quote>;</text>
</paragraph><paragraph id="HC24329F39D814327929646EC98E0004D"><enum>(2)</enum><text>by amending the
matter preceding paragraph (1) to read as follows: <quote>Upon execution of the
refinancing for a project pursuant to this section, the Secretary shall ensure
that proceeds are used in a manner advantageous to tenants of the project, or
are used in the provision of affordable rental housing and related social
services for elderly persons that are tenants of the project or of other
projects assisted with a loan under section 202 of the Housing Act of 1959 (12
U.S.C. 1701q) by the private nonprofit organization project owner, private
nonprofit organization project sponsor, or private nonprofit organization
project developer, including—</quote>;</text>
</paragraph><paragraph id="HF15C5022B52A49EFA23138801D00578D"><enum>(3)</enum><text>in paragraph (1),
by striking <quote>not more than 15 percent of</quote>;</text>
</paragraph><paragraph id="HBB544A9DDAF041EB9D25A029F0A11100"><enum>(4)</enum><text>in paragraph (2),
by inserting before the semicolon the following; <quote>, including reducing
the number of units by reconfiguring units that are functionally obsolete,
unmarketable, or not economically viable</quote>;</text>
</paragraph><paragraph id="H91C08FCAA5F44E6BAED1268707D4F7AF"><enum>(5)</enum><text>in paragraph (3),
by striking <quote>or</quote> at the end;</text>
</paragraph><paragraph id="H4E5A5D697C99461CAA98C89B2ED9103C"><enum>(6)</enum><text>in paragraph (4),
by striking <quote>according to a pro rata allocation of shared savings
resulting from the refinancing.</quote> and inserting a semicolon; and</text>
</paragraph><paragraph id="H83A2C85B0EBC4B29BF00B24794733727"><enum>(7)</enum><text>by adding at the
end the following new paragraphs:</text>
<quoted-block id="H940C714757254616A9786DFE5F66532" style="OLC">
<paragraph id="H1B5B03F378394BF79C027305BEBA00AD"><enum>(5)</enum><text>rehabilitation of
the project to ensure long-term viability;</text>
</paragraph><paragraph id="H0DDADBDDAE5743AEBBCC05DAEBDA3299"><enum>(6)</enum><text>the payment to the
project owner, sponsor, or third party developer of a developer’s fee in an
amount not to exceed or duplicate—</text>
<subparagraph id="H987402F99A5F4E5B8291CB439E718528"><enum>(A)</enum><text>in the case of a
project refinanced through a State low income housing tax credit program, the
fee permitted by the low income housing tax credit program as calculated by the
State program as a percentage of acceptable development cost as defined by that
State program; or</text>
</subparagraph><subparagraph id="H8D97E5B4CF7A420DBCBD88B473AFAA4"><enum>(B)</enum><text>in the case of a
project refinanced through any other source of refinancing, 15 percent of the
acceptable development cost; and</text>
</subparagraph></paragraph><paragraph id="HDFF7B38315A24329A069A969CC7385"><enum>(7)</enum><text display-inline="yes-display-inline">the payment of equity, if any, to—</text>
<subparagraph id="H4B89B85194C049338EAB68EC1EC7C200"><enum>(A)</enum><text>in the case of a
sale, to the seller or the sponsor of the seller, in an amount equal to the
lesser of the purchase price or the appraised value of the project, as each is
reduced by the cost of prepaying any outstanding indebtedness on the project
and transaction costs of the sale; or</text>
</subparagraph><subparagraph id="H8C1F8927589E4DAD8F1E51E9EC3700FF"><enum>(B)</enum><text>in the case of a
refinancing without the transfer of the project, to the project owner or the
project sponsor, in an amount equal to the difference between the appraised
value of the project less the outstanding indebtedness and total acceptable
development cost.</text>
</subparagraph></paragraph><quoted-block-continuation-text quoted-block-continuation-text-level="subsection">For
purposes of paragraphs (6)(B) and (7)(B), the term “acceptable development
cost” shall include, as applicable, the cost of acquisition, rehabilitation,
loan prepayment, initial reserve deposits, and transaction
costs.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HD3121D0AC02C451A8F1D6646F1584E97"><enum>724.</enum><header>Use of project
residual receipts</header><text display-inline="no-display-inline">Paragraph
(1) of section 811(d) of the American Homeownership and Economic Opportunity
Act of 2000 (12 U.S.C. 1701q note) is amended—</text>
<paragraph id="H99FCCF1717F54943BDB85A09DC64849"><enum>(1)</enum><text>by
striking <quote>not more than 15 percent of</quote>; and</text>
</paragraph><paragraph id="H3D1566C7F4C444ADA6453D78DA1478E"><enum>(2)</enum><text>by
inserting before the period at the end the following: <quote>or other purposes
approved by the Secretary</quote>.</text>
</paragraph></section><section id="H6A4BBE22A4D54ABAA9D1CBCB133798FB"><enum>725.</enum><header>Additional
provisions</header><text display-inline="no-display-inline">Section 811 of the
American Homeownership and Economic Opportunity Act of 2000 (12 U.S.C. 1701q
note) is amended by adding at the end the following new subsections:</text>
<quoted-block id="H6C3F6980DD89450C9F8E9C80B05DDE16" style="OLC">
<subsection id="H7AF98737E3C547B691D98C980058FF16"><enum>(e)</enum><header>Senior
preservation rental assistance contracts</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law,
in connection with a prepayment plan for a project approved under subsection
(a) by the Secretary or as otherwise approved by the Secretary to prevent
displacement of elderly residents of the project in the case of refinancing or
recapitalization and to further preservation and affordability of such project,
the Secretary shall provide project-based rental assistance for the project
under a senior preservation rental assistance contract, as follows:</text>
<paragraph id="H90D65459069F452194B07D70FCC8FFB"><enum>(1)</enum><text>Assistance under
the contract shall be made available to the private nonprofit organization
owner—</text>
<subparagraph id="H3927243A0FEF4640AAF3AB4C1500343F"><enum>(A)</enum><text display-inline="yes-display-inline">for a term of at least 20 years, subject to
annual appropriations; and</text>
</subparagraph><subparagraph id="H39EA1730698B4804B919762DE3CF35D3"><enum>(B)</enum><text>under the same
rules governing project-based rental assistance made available under section 8
of the Housing Act of 1937 or under the rules governing such other assistance
as may be made available for the project.</text>
</subparagraph></paragraph><paragraph id="H3F1503D4517F440393008948B570A9BC"><enum>(2)</enum><text>Any projects for
which a senior preservation rental assistance contract is provided shall be
subject to a use agreement to ensure continued project affordability having a
term of the longer of (A) the term of the senior preservation rental assistance
contract, or (B) such term as is required by the new financing.</text>
</paragraph></subsection><subsection id="H6361104D6C2842159E5F747800B499F1"><enum>(f)</enum><header>Subordination or
assumption of existing debt</header><text display-inline="yes-display-inline">In lieu of prepayment under this section of
the indebtedness with respect to a project, the Secretary may approve—</text>
<paragraph id="H21F90F8B17F749BC91FBC2C33978983C"><enum>(1)</enum><text>in connection with
new financing for the project, the subordination of the loan for the project
under section 202 of the Housing Act of 1959 (as in effect before the enactment
of the Cranston-Gonzalez National Affordable Housing Act) and the continued
subordination of any other existing subordinate debt previously approved by the
Secretary to facilitate preservation of the project as affordable housing;
or</text>
</paragraph><paragraph id="HE8AB3FBB03F5417F8C21F4B7453EC739"><enum>(2)</enum><text>the assumption
(which may include the subordination described in paragraph (1)) of the loan
for the project under such section 202 in connection with the transfer of the
project with such a loan to a private nonprofit organization.</text>
</paragraph></subsection><subsection id="HC0A6F8EE668244039141E8FC6442DFB3"><enum>(g)</enum><header>Flexible subsidy
debt</header><text>The Secretary shall waive the requirement that debt for a
project pursuant to the flexible subsidy program under section 201 of the
Housing and Community Development Amendments of 1978 (12 U.S.C. 1715z–1a) be
prepaid in connection with a prepayment, refinancing, or transfer under this
section of a project if such waiver is necessary for the financial feasibility
of the transaction and is consistent with the long-term preservation of the
project as affordable housing.</text>
</subsection><subsection id="H4F19963D16AC4B7EA396D93E78BC600"><enum>(h)</enum><header>Tenant
involvement in prepayment and refinancing</header><text>The Secretary shall not
accept an offer to prepay the loan for any project under section 202 of the
Housing Act of 1959 unless the Secretary has—</text>
<paragraph id="H0F437955D43B4FBC8F734CFD744B2C58"><enum>(1)</enum><text>determined that
the owner of the project has notified the tenants of the owner’s request for
approval of a prepayment;</text>
</paragraph><paragraph id="HF8DB62DB153242E98869D700DB4E3BB5"><enum>(2)</enum><text>determined that
the owner of the project has provided the tenants with an opportunity to
comment on the owner’s request for approval of a prepayment, including a
description of any anticipated rehabilitation or other use of the proceeds from
the transaction, and its impacts on project rents, tenant contributions, or the
affordability restrictions for the project; and</text>
</paragraph><paragraph id="H13C8AF37968741618B1FE2F717B7A174"><enum>(3)</enum><text>taken such
comments into consideration.</text>
</paragraph></subsection><subsection id="H6AE1762E582B4184AD4D4EC4F124EC3D"><enum>(i)</enum><header>Definition of
private nonprofit organization</header><text>For purposes of this section, the
term <quote>private nonprofit organization</quote> has the meaning given such
term in section 202(k) of the Housing Act of 1959 (12 U.S.C.
1701q(k)).</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section></subtitle><subtitle id="HA42E443040D04BD9820258B3FE009B11"><enum>C</enum><header>Assisted living
facilities</header>
<section id="HC45E29F800AC421BA71FAC48468300C4"><enum>731.</enum><header>Definition of
assisted living facility</header><text display-inline="no-display-inline">Section 202b(g) of the Housing Act of 1959
(12 U.S.C. 1701q–2(g)) is amended by striking paragraph (1) and inserting the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H8322B2684FCD4EFC9145E49BC7CB8C00" style="OLC">
<paragraph id="HFD702DC92EDD4CEBBF6C1F5D645811E"><enum>(1)</enum><text display-inline="yes-display-inline">the term <term>assisted living
facility</term> means a facility that—</text>
<subparagraph id="HDB89B4631572425AA94143C3B4C43152"><enum>(A)</enum><text>is owned by a
private nonprofit organization; and</text>
</subparagraph><subparagraph id="H0510F093AF8444519B9BDFB52800E435"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H9EE9B3CCD09C4386A6A0702093A5A874"><enum>(i)</enum><text>is licensed and
regulated by a State (or if there is no State law providing for such licensing
and regulation by the State, by the municipality or other political subdivision
in which the facility is located); or</text>
</clause><clause id="H21EC2F5698D7499900EFF5731328281" indent="up1"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="H282B3E6D12124E538596973743786EA1"><enum>(I)</enum><text>makes available,
directly or through licensed or certified third party service providers, to
residents at the resident’s request or choice supportive services to assist the
residents in carrying out the activities of daily living, as described in
section 232(b)(6)(B) of the National Housing Act (12 U.S.C. 1715w(b)(6)(B));
and</text>
</subclause><subclause id="H7E5055EBC0504564B610B6E41FDD1560" indent="up1"><enum>(II)</enum><text>provides separate dwelling units
for residents, each of which may contain a full kitchen and bathroom and which
includes common rooms and other facilities appropriate for the provision of
supportive services to the residents of the facility;
and</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HAAB07CCCE1E749938E24BF6F57CAE48C"><enum>732.</enum><header>Monthly
assistance payment under rental assistance</header><text display-inline="no-display-inline">Clause (iii) of section 8(o)(18)(B) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(o)(18)(B)(iii)) is amended
by inserting before the period at the end the following: <quote>, except that a
family may be required at the time the family initially receives such
assistance to pay rent in an amount exceeding 40 percent of the monthly
adjusted income of the family by such an amount or percentage that is
reasonable given the services and amenities provided and as the Secretary deems
appropriate.</quote>.</text>
</section></subtitle><subtitle id="HDC294CAF11F14ECBB94072582D04A5BD"><enum>D</enum><header>National Senior
Housing Clearinghouse</header>
<section id="H9EBA6163EC4C4081BA21F921E69BA32"><enum>741.</enum><header>National senior
housing clearinghouse</header>
<subsection id="H59AA584847CE4D9300F1BB51E3EB7E6B"><enum>(a)</enum><header>Establishment</header><text>Not
later than 12 months after the date of enactment of this Act, the Secretary of
Housing and Urban Development (in this section referred to as the
<quote>Secretary</quote>) shall establish and operate a clearinghouse to serve
as a national repository to receive, collect, process, assemble, and
disseminate information regarding the availability and quality of multifamily
developments for elderly tenants, including—</text>
<paragraph id="HCD86FF98BD5947D0AA09210153BDEDF0"><enum>(1)</enum><text>the availability
of—</text>
<subparagraph id="H6371C1D7EB194892BFD9CF00BFE7256B"><enum>(A)</enum><text>supportive housing
for the elderly pursuant to section 202 of the Housing Act of 1959 (12 U.S.C.
1701q), including any housing unit assisted with a project rental assistance
contract under such section;</text>
</subparagraph><subparagraph id="H2159072A43C546B993F1EE419337BB62"><enum>(B)</enum><text>properties and
units eligible for assistance under section 8 of the United States Housing Act
of 1937 (42 U.S.C. 1437f);</text>
</subparagraph><subparagraph id="H8FB43D9B1C5040D98FFE19ABB05464D3"><enum>(C)</enum><text>properties
eligible for the low-income housing tax credit under section 42 of the Internal
Revenue Code of 1986;</text>
</subparagraph><subparagraph id="H15F01EED44834976B14B16A37BBD4E19"><enum>(D)</enum><text>units in assisted
living facilities insured pursuant to section 221(d)(4) of the National Housing
Act (12 U.S.C. 1715l(d)(4));</text>
</subparagraph><subparagraph id="H1FB5F06EFB044E049FBCF50040B9C8B4"><enum>(E)</enum><text>units in any
multifamily project that has been converted into an assisted living facility
for elderly persons pursuant to section 202b of the Housing Act of 1959 (12
U.S.C. 1701q–2); and</text>
</subparagraph><subparagraph id="HF8C7502AC1F94CA49FA3A4909212FE9"><enum>(F)</enum><text>any other federally
assisted or subsidized housing for the elderly;</text>
</subparagraph></paragraph><paragraph id="HC7418049F01340AFBA95F0C6FB13D851"><enum>(2)</enum><text>the number of
available units in each property, project, or facility described in paragraph
(1);</text>
</paragraph><paragraph id="HBA7C6601A24542E5BEF6289F00D70042"><enum>(3)</enum><text>the number of
bedrooms in each available unit in each property, project, or facility
described in paragraph (1);</text>
</paragraph><paragraph id="H8EE6CB8A75074ED79869009FA15F3F54"><enum>(4)</enum><text>the estimated cost
to a potential tenant to rent or reside in each available unit in each
property, project, or facility described in paragraph (1);</text>
</paragraph><paragraph id="H53235633A65F431880A686478839003D"><enum>(5)</enum><text>the presence of a
waiting list for entry into any available unit in each property, project, or
facility described in paragraph (1);</text>
</paragraph><paragraph id="H3C283661F14643CC97A2CE5D2500FDD5"><enum>(6)</enum><text>the number of
persons on the waiting list for entry into any available unit in each property,
project, or facility described in paragraph (1);</text>
</paragraph><paragraph id="H415424353C354E6ABA0000D72468E128"><enum>(7)</enum><text>the amenities
available in each available unit in each property, project, or facility
described in paragraph (1), including—</text>
<subparagraph id="H673EDEDBE52A404FBCD3AE566ECD20A0"><enum>(A)</enum><text>the services
provided by such property, project, or facility;</text>
</subparagraph><subparagraph id="HF9FF078C724E4842BD94CFE0DF04BB9C"><enum>(B)</enum><text>the size and
availability of common space within each property, project, or facility;</text>
</subparagraph><subparagraph id="HE8788535EFAF47DFB31DE4ED9607BE18"><enum>(C)</enum><text>the availability
of organized activities for individuals residing in such property, project, or
facility; and</text>
</subparagraph><subparagraph id="HA94DA67ACEB149FE928E8288E79FF919"><enum>(D)</enum><text>any other
additional amenities available to individuals residing in such property,
project, or facility;</text>
</subparagraph></paragraph><paragraph id="HD42AE09C09ED4544A5BDFA2993B30850"><enum>(8)</enum><text>the level of care
(personal, physical, or nursing) available to individuals residing in any
property, project, or facility described in paragraph (1);</text>
</paragraph><paragraph id="H481C292A2F4847D6003DF4EE6B7DC487"><enum>(9)</enum><text>whether there is a
service coordinator in any property, project, or facility described in
paragraph (1); and</text>
</paragraph><paragraph id="HA786EFDC50A84A949B72693B544255A"><enum>(10)</enum><text>any other criteria
determined appropriate by the Secretary.</text>
</paragraph></subsection><subsection id="HCDB93A399128404E9F69EBD4EFC299F7"><enum>(b)</enum><header>Collection and
updating of information</header>
<paragraph id="H514A469D1FEE4796BEB33900E7F65512"><enum>(1)</enum><header>Initial
Collection</header><text>Not later than 180 days after the date of enactment of
this Act, the Secretary shall conduct an annual survey requesting information
from each owner of a property, project, or facility described in subsection
(a)(1) regarding the provisions described in paragraphs (2) through (11) of
such subsection.</text>
</paragraph><paragraph id="HC7D16EFA6BAF4A44BC411217BF251691"><enum>(2)</enum><header>Response
time</header><text>Not later than 60 days after receiving the request described
under paragraph (1), the owner of each such property, project, or facility
shall submit such information to the Secretary.</text>
</paragraph><paragraph id="HDF637CB266954A17A6D9A8E7B7E5117"><enum>(3)</enum><header>Public
availability</header><text>Not later than 120 days after the Secretary receives
the submission of any information required under paragraph (2), the Secretary
shall make such information publicly available through the
clearinghouse.</text>
</paragraph><paragraph id="H9789F2BCCC464105BAA4D2D31D091447"><enum>(4)</enum><header>Updates</header><text>The
Secretary shall conduct a biennial survey of each owner of a property, project,
or facility described in subsection (a)(1) for the purpose of updating or
modifying information provided in the initial collection of information under
paragraph (1). Not later than 30 days after receiving such a request, the owner
of each such property, project, or facility shall submit such updates or
modifications to the Secretary. Not later than 60 days after receiving such
updates or modifications, the Secretary shall inform the clearinghouse of such
updated or modified information.</text>
</paragraph></subsection><subsection id="H605CC8095A1F4F9500F96DBDC631DFFF"><enum>(c)</enum><header>Functions</header><text>The
clearinghouse established under subsection (a) shall—</text>
<paragraph id="H36BA8DF589DB4C2900BFA6C1E969DD72"><enum>(1)</enum><text>respond to
inquiries from State and local governments, other organizations, and
individuals requesting information regarding the availability of housing in
multifamily developments for elderly tenants;</text>
</paragraph><paragraph id="H5A2E0B173520422590D9994CB39830D8"><enum>(2)</enum><text>make such
information publicly available via the Internet website of the Department of
Housing and Urban Development, which shall include—</text>
<subparagraph id="HFE7E7CA8BCF44599B166AD05CCDFB3B8"><enum>(A)</enum><text>access via
electronic mail; and</text>
</subparagraph><subparagraph id="H0A50779F902341DE00EF50D4338C32F"><enum>(B)</enum><text>an easily
searchable, sortable, downloadable, and accessible index that itemizes the
availability of housing in multifamily developments for elderly tenants by
State, county, and zip code;</text>
</subparagraph></paragraph><paragraph id="HDFCCD0A707F9431C944E5919ADC8DA39"><enum>(3)</enum><text>establish a
toll-free number to provide the public with specific information regarding the
availability of housing in multifamily developments for elderly tenants;
and</text>
</paragraph><paragraph id="H00F2EDF33EF94EF99084D7E689BC2A3"><enum>(4)</enum><text>perform any other
duty that the Secretary determines necessary to achieve the purposes of this
section.</text>
</paragraph></subsection><subsection id="HF5AC3B3DFDD34ACD916FB38C11CEBBDF"><enum>(d)</enum><header>Relationship
with other databases</header><text display-inline="yes-display-inline">In
carrying out this section, the Secretary may make the clearinghouse a part of
any other multifamily housing database that the Secretary maintains or is
otherwise required to establish pursuant to this Act or any other provision of
law.</text>
</subsection><subsection id="H5A13E59907284BF69EAC18D3997395DE"><enum>(e)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated such sums
as necessary to carry out this section.</text>
</subsection></section></subtitle><enum>VIII</enum><header>Rural housing
preservation</header>
<section display-inline="no-display-inline" id="HAF2A6708269C4CFCBB4F9B255EF43BA7" section-type="subsequent-section"><enum>801.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Rural Housing Preservation Act
of 2010</short-title></quote>.</text>
</section><section id="H66DD04F005364230B15300CD987DE5CA"><enum>802.</enum><header>Preservation of
multifamily housing</header>
<subsection id="H509F3087E6A34D00975F9040002278D"><enum>(a)</enum><header>Preservation
program</header><text display-inline="yes-display-inline">Title V of the
Housing Act of 1949 (42 U.S.C. 1471 et seq.) is amended by adding at the end
the following new section:</text>
<quoted-block display-inline="no-display-inline" id="H8EDE7C73B09C45E5A1009319C5FB75DD" style="OLC">
<section id="H3A947FFA43D34664B6DA56C7C2F89F98"><enum>545.</enum><header>Preservation of
multifamily housing and protection of tenants</header>
<subsection id="H5611DE644AE74E91BFB9CCEEAE0462B7"><enum>(a)</enum><header>Preservation
program</header><text>The Secretary shall, subject to the availability of
amounts appropriated, carry out a preservation program in accordance with this
section to provide financial incentives and other assistance to owners of
eligible projects through long-term use agreements entered into between the
project owners and the Secretary.</text>
</subsection><subsection id="HF5EA9A55B51A4E2C93972BB38D147833"><enum>(b)</enum><header>Applications To
participate</header>
<paragraph id="H26918C272F9444DD9DD7E9F199FFDDF0"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary shall
accept applications from owners of eligible projects to participate in the
preservation program under this section.</text>
</paragraph><paragraph id="HA183AFD028864F3300D2476F91579739"><enum>(2)</enum><header>Priority</header><text>In
selecting among applications of eligible projects to participate in the
preservation program, the Secretary may give priority to applications for such
projects that are located on tribal trust lands or other Indian areas, in
colonias (as such term is defined in section 916(e) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 5306 note), or in other small, poor,
low-income communities.</text>
</paragraph></subsection><subsection id="HA5ADDCA33BB4480798F6D89861328177"><enum>(c)</enum><header>Long-Term
viability plan</header>
<paragraph id="H69E10AFE0BCE4706B6E3E422EB3E8420"><enum>(1)</enum><header>Requirement</header><text>The
Secretary shall prepare and approve a long-term viability plan under this
subsection with respect to each eligible project for which the owner requests
to participate.</text>
</paragraph><paragraph id="H6B1DD13A2ABA405FB3852C6C7338301B"><enum>(2)</enum><header>Contents</header><text>Each
long-term viability plan for an eligible project shall include the following
information:</text>
<subparagraph id="HB9EA00C825C74D1F9E097F82C9A56D49"><enum>(A)</enum><header>Physical needs
assessment</header><text>A physical needs assessment of the project that
identifies and projects, for the following 30 years—</text>
<clause id="H9003B2F449AD4C02B0BA3B6007507F3"><enum>(i)</enum><text>all
necessary repairs, improvements, maintenance, and management standards for the
project, and when they will be made, in order to meet the requirements of this
title; and</text>
</clause><clause id="H0296A7E7759B4FD789E297B8CCB2320"><enum>(ii)</enum><text>the costs
associated with the items referred to clause (i).</text>
</clause></subparagraph><subparagraph id="H4983E768180D49A2B09E693200EF43AA"><enum>(B)</enum><header>Financial
plan</header><text>A financial plan for the project that—</text>
<clause id="H2802A4056B474406003877539009ABFF"><enum>(i)</enum><text>reviews the
financial stability of the project;</text>
</clause><clause id="HCBD9A4D8DDF04F50914F9206E9BFDFF0"><enum>(ii)</enum><text>includes the loan
restructuring elements, rent adjustments, management and operational
efficiencies, and other financial adjustments to the project that are necessary
to cover operating expenses for the project and maintain an adequate financial
reserve for the future maintenance and capital needs of the project;</text>
</clause><clause id="H9AD33EE2ACE948EB81B99CEB6F81828B"><enum>(iii)</enum><text display-inline="yes-display-inline">provides the project owner with a long-term
rate of return on equity of the project owner, as determined by the Secretary,
commensurate to comparable rural multifamily housing projects for which a tax
credit is provided under section 42 of the Internal Revenue Code of 1986 (26
U.S.C. 42), and provides that any return in excess of such rate of return shall
be made available to the Secretary only for use under section 514, 515, or
516;</text>
</clause><clause id="H38BB7803F89B40F68D2311DE4ED44687"><enum>(iv)</enum><text>meets the
physical needs for the project determined under the physical needs
assessment;</text>
</clause><clause id="H2C26A5C235CE48E1B1C2F485591737D"><enum>(v)</enum><text display-inline="yes-display-inline">ensures that rents available under the plan
are affordable to eligible households in accordance with subsection (f);
and</text>
</clause><clause id="H8A0793F6350B4A85B8BBE91882E5A7ED"><enum>(vi)</enum><text display-inline="yes-display-inline">addresses any costs associated with any
temporary tenant displacement resulting from renovations or rehabilitation
undertaken as a result of participation of the project in the preservation
program.</text>
</clause></subparagraph></paragraph><paragraph id="H25F0DBAE6448445CA4AC08D6D866F619"><enum>(3)</enum><header>Development
through participating administrative entities</header><text>The Secretary may
develop long-term viability plans through the use of third-party participating
administrative entities, who may be a private contractor, a State housing
finance agency, or a nonprofit organization.</text>
</paragraph><paragraph id="H178A7715E63448639B512272AC409127"><enum>(4)</enum><header>Preservation
determination</header><text>Based on the long-term viability plan for an
eligible project, the Secretary shall determine whether to offer the project
owner a financial restructuring plan under subsection (d) and the financial
incentives to be included in any such plan offered.</text>
</paragraph><paragraph id="HFAF500661531459A80FE83153D19D37"><enum>(5)</enum><header>Final review and
comment</header><text display-inline="yes-display-inline">Before a
determination is made under subparagraph (D) with respect to any long-term
viability plan prepared by the Secretary, the Secretary shall—</text>
<subparagraph id="H80B67001E25347E9B4B4C4AF36FDFCA7"><enum>(A)</enum><text>provide the
project owner an opportunity to review the plan and discuss the plan with the
Secretary or its agent;</text>
</subparagraph><subparagraph id="H6AF93E7B9FD247BC905D85F0E1DE6230"><enum>(B)</enum><text>make available to
the tenants of the project a copy of such plan and provide a period of not less
than 30 days for tenants to submit comments regarding the plan to the
Secretary; and</text>
</subparagraph><subparagraph id="H6485AEEF4A4944359E201E44ABD6B6C8"><enum>(C)</enum><text>respond in writing
to such comments.</text>
</subparagraph></paragraph><paragraph id="H6E45C6ABC3324F59BA19AB6342249DC1"><enum>(6)</enum><header>Fees</header><text display-inline="yes-display-inline">The Secretary may charge the project owner
a fee for preparation of the long-term viability plan.</text>
</paragraph><paragraph id="H396B1242F75F4187BA00BD3990A6CBEA"><enum>(7)</enum><header>Payment of
fees</header><text display-inline="yes-display-inline">If a long-term viability
for a project is approved, the payment of such fee may be incorporated into a
project owner’s financial restructuring plan for the project provided by the
Secretary pursuant to subsection (d).</text>
</paragraph></subsection><subsection id="HF3A571AE23CF4ED4BE543FDEF7FC5980"><enum>(d)</enum><header>Financial
restructuring plan; preservation incentives</header><text>Based on the
long-term viability plan for an eligible project, the Secretary may offer a
project owner a financial restructuring plan for the project. Such a plan may
include one or more of the following preservation incentives:</text>
<paragraph id="H8FE7341E2C31445D9496FB0467C58691"><enum>(1)</enum><text>Reduction or
elimination of interest on the loan or loans for the project made under section
514, 515, or 516.</text>
</paragraph><paragraph id="H9BB809066B6640B9AE24FCA5B003137"><enum>(2)</enum><text>Partial or full
deferral of payments due under such loan or loans.</text>
</paragraph><paragraph id="HA9082769DE334C7D9012C6DA2591E1D"><enum>(3)</enum><text>Forgiveness of such
loan or loans.</text>
</paragraph><paragraph id="H4CBA233289CC4B2B82A454DF971B5939"><enum>(4)</enum><text>Subordination of
such loan or loans, subject to such terms and conditions as the Secretary shall
determine.</text>
</paragraph><paragraph id="H0D6219C3F03E4CB18BBE87B84224D2CA"><enum>(5)</enum><text>Reamortization of
loan payments under such loan or loans over extended terms.</text>
</paragraph><paragraph id="H54BB2EA0000345028C302DAA6E819170"><enum>(6)</enum><text>A grant from the
Secretary for the project.</text>
</paragraph><paragraph id="HB63736799A044406BD329D16F167D3AB"><enum>(7)</enum><text>Payment of project
costs associated with developing the long-term viability plan.</text>
</paragraph><paragraph id="H71B53FA4D9B64B90B6EBAB263C06A3CF"><enum>(8)</enum><text>Opportunity for
project owners to obtain further investment equity from third parties.</text>
</paragraph><paragraph id="HBB9E62CD824348CEB29643DB9904DAF5"><enum>(9)</enum><text>A direct loan or
guarantee of a loan for the project, with a subsidized interest rate without
regard to the value of the project.</text>
</paragraph></subsection><subsection id="H201FF7AAFAB54D9AA57DB75E6864FB02"><enum>(e)</enum><header>Long-Term use
agreement</header>
<paragraph id="HBDDB1828FD1849EDB15765E9C5342908"><enum>(1)</enum><header>In
general</header><text>If the owner of an eligible project agrees to the terms
of a financial restructuring plan for the project providing preservation
benefits under subsection (d), in exchange for such benefits, the Secretary and
the project owner shall enter into a long-term use agreement under this
subsection for the project.</text>
</paragraph><paragraph id="H140145A6FCF447D39C6F83B59892E04B"><enum>(2)</enum><header>Agreement</header><text>A
long-term use agreement for an eligible project shall include—</text>
<subparagraph id="HC4B5549E19AA4BCEA7C85FED05A97898"><enum>(A)</enum><text>the terms of the
financial restructuring plan for the project, including any preservation
incentives to be provided;</text>
</subparagraph><subparagraph id="H8DF0126112504B70865D1CAE51B04D7E"><enum>(B)</enum><text>an agreement by
the project owner—</text>
<clause id="HE4DE412B1ADA45F7A91445C4564E45EF"><enum>(i)</enum><text>to
continue the property use restrictions with respect to the project in
accordance with this title for a period of—</text>
<subclause id="H78B58B8D171F47D197E2D24128ED7079"><enum>(I)</enum><text>30 years,
or</text>
</subclause><subclause id="HEF65C7BBCFD440778C3CC1DF6030024"><enum>(II)</enum><text>the remaining term
of any loans under this title for the project,</text>
</subclause><continuation-text continuation-text-level="clause">whichever
ends later;</continuation-text></clause><clause id="H5F5C71C3875C42E7B2A345D46C540155"><enum>(ii)</enum><text>to comply with
the long-term viability plan for the project; and</text>
</clause><clause id="H758BD67F20CD471D9D2FB1BCFAD995D9"><enum>(iii)</enum><text>to comply with
the rent terms under subsection (f) for the project;</text>
</clause></subparagraph><subparagraph id="HF41A4BF19C2242A38BFC44B79FD95E90"><enum>(C)</enum><text>provisions
terminating the agreement if any material preservation incentives for the
project to be provided under the agreement are no longer available and the
Secretary determines that such unavailability is not the fault of the
owner;</text>
</subparagraph><subparagraph id="HEC561B7D61A74ACCA700B8CDC188DBDB"><enum>(D)</enum><text>any rent terms for
the project pursuant to subsection (f);</text>
</subparagraph><subparagraph id="H9F01271A7C61417A91CB27928869B2DF"><enum>(E)</enum><text>a covenant which
runs with the land;</text>
</subparagraph><subparagraph id="H2088173920444525BE1733F192A007BB"><enum>(F)</enum><text>a representation
and warranty by the owner to provide safe, healthy, clean buildings pursuant to
the Secretary’s guidelines;</text>
</subparagraph><subparagraph id="H0DEC772732D24DA587F322643FC43192"><enum>(G)</enum><text>provisions
providing for rural preservation voucher assistance under section 542(c) for
low-income households residing in the project who are eligible for such
vouchers; and</text>
</subparagraph><subparagraph id="H8E5756E5621443DAA17FBD1704C2E348"><enum>(H)</enum><text>such other terms
as the Secretary determines are necessary to implement the purposes of this
section.</text>
</subparagraph></paragraph></subsection><subsection id="HCA73FDD9D1F248E0AC708225590440EB"><enum>(f)</enum><header>Rents under
long-Term use agreement</header><text>Rents for any eligible households
residing in dwelling units in any preserved project shall comply with the
following requirements:</text>
<paragraph display-inline="no-display-inline" id="HA0808422976E4E1DAE9C7325082076DD"><enum>(1)</enum><header>Maximum
household contribution to rent and utilities</header><text display-inline="yes-display-inline">The maximum household contribution to
monthly rent and utilities for any eligible household may not exceed 30 percent
of the adjusted income of the eligible household.</text>
</paragraph><paragraph id="HE0C061030B2643F396F436404911AA70"><enum>(2)</enum><header>Rent
adjustments</header><text display-inline="yes-display-inline">The rents for
eligible projects may be increased or decreased only on an annual basis and
only in accordance with standards incorporated in such agreement.</text>
</paragraph><paragraph id="HCA3648C45F934A29A9217C2290E177CC"><enum>(3)</enum><header>Lowest cost
requirement</header><text display-inline="yes-display-inline">In determining
the terms of a restructuring plan, and the type and amount of preservation
benefits under such plan to approve under this section for an eligible project,
the Secretary shall, to the extent practicable, approve assistance that imposes
the least cost to the Secretary while meeting the requirements of the long-term
viability plan for the project.</text>
</paragraph></subsection><subsection id="H8FE4C2A730374DF58DD3B013AD1C279B"><enum>(g)</enum><header>Earned income
disregard for residents</header>
<paragraph id="HBB3B7592E50248FAB0F1454B6DE45CF"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Notwithstanding any
other provision of law, the amount of the contribution toward rent for a
dwelling unit payable, by any household described in paragraph (3), for
occupancy in a project funded with a loan under section 514, 515, or 516 may
not be increased as a result of the increased income due to employment during
the 12-month period beginning on the date on which the employment is
commenced.</text>
</paragraph><paragraph id="HD76B6C13619A48A7849193ABB819586C"><enum>(2)</enum><header>Phase-in of rent
increases</header><text display-inline="yes-display-inline">Upon the expiration
of the 12-month period referred to in paragraph (1), the contribution toward
rent payable by a household described in paragraph (3) may be increased due to
the continued employment of the household member described in subparagraph
(3)(B), except that during the 12-month period beginning upon such expiration
the amount of the increase may not be greater than 50 percent of the amount of
the total increase in contribution toward rent that would be applicable but for
this paragraph.</text>
</paragraph><paragraph id="HE2AD59EEA1714BDA81AF1909744C1997"><enum>(3)</enum><header>Eligible
household</header><text>A household described in this paragraph is a household
that—</text>
<subparagraph id="H1F15EB291BC1441999B5A944B3DB5975"><enum>(A)</enum><clause commented="no" display-inline="yes-display-inline" id="H6A91EB14619B44F3837184067DEAC87F"><enum>(i)</enum><text display-inline="yes-display-inline">is an eligible household who resides in an
eligible project; or</text>
</clause><clause id="H93FD06B6EA9D45A18E78B86B48A248CA" indent="up1"><enum>(ii)</enum><text>is provided rural preservation
voucher assistance pursuant to section 542(c); and</text>
</clause></subparagraph><subparagraph id="H537A5364EFC74E7CA6F6DC6D36F6698C"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H801DFD92F2F248A984D5BDC43C462DDD"><enum>(i)</enum><text display-inline="yes-display-inline">whose income increases as a result of
employment of a member of the household who was previously unemployed for 1 or
more years;</text>
</clause><clause id="HB01805A712BD4048B472BA61AA4227A6" indent="up1"><enum>(ii)</enum><text>whose earned income increases
during the participation of a household member in any family self-sufficiency
or other job training program; or</text>
</clause><clause id="H7114FB09A9CE45DFB1016DD285B71928" indent="up1"><enum>(iii)</enum><text>who is or was, within 6 months,
assisted under any State program for temporary assistance for needy families
funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et
seq.) and whose earned income increases.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H522B099712144612B83CD1814D7B9904"><enum>(h)</enum><header>Ineligibility</header>
<paragraph id="H1F96C958B5F841CDB53F6CBF85F31C8B"><enum>(1)</enum><header>Procedure for
determination</header><text display-inline="yes-display-inline">The Secretary
may determine that a project owner is ineligible for participation in the
preservation program under this section in accordance with the standards under
paragraph (2).</text>
</paragraph><paragraph id="H924B4D6975F7442A97B76E89A32C5929"><enum>(2)</enum><header>Standards</header><text>The
Secretary may determine that a project owner is ineligible if—</text>
<subparagraph id="H8517C4BEC76746EF9327C3AC65A9594E"><enum>(A)</enum><text>the project owner
has a history of poor management or maintenance of multifamily housing
properties;</text>
</subparagraph><subparagraph id="HA04DB8FFB256420BB66CA2176141E9CE"><enum>(B)</enum><text>the project owner
is in default on a loan made available under the section 514, 515, or 516
housing program;</text>
</subparagraph><subparagraph id="H2C43D1E03B1745EAABFF9156D52CC1F6"><enum>(C)</enum><text>the Secretary is
unable to enter into a long-term use agreement for the project that is the
subject of the application with the project owner within a reasonable
time;</text>
</subparagraph><subparagraph id="H172A0F86AED64E759BACBBBFD7A6F5EB"><enum>(D)</enum><text>the project owner
is suspended or debarred from participating in Federal contracts or programs;
or</text>
</subparagraph><subparagraph id="HDA51CFF3283A493694FE8B5A414CCE7"><enum>(E)</enum><text>the Secretary has
other good cause for withholding from the project owner the benefits made
available under this section.</text>
</subparagraph></paragraph></subsection><subsection id="H7C38568062AB4875B8F3686390AABA71"><enum>(i)</enum><header>Definitions</header><text>For
purposes of this section, the following definitions shall apply:</text>
<paragraph id="HCF5DDACDAF224834AD06503FCAA68300"><enum>(1)</enum><header>Eligible
household</header><text>The term <quote>eligible household</quote> means a
household that, under section 514, 515, or 516, is eligible to reside in a
project funded with a loan made by the Secretary under such section.</text>
</paragraph><paragraph id="H5AE1B107281341948908409B1C571C6F"><enum>(2)</enum><header>Eligible
project</header><text>The term <quote>eligible project</quote> means a housing
project funded with a loan made at any time by the Secretary under section 514,
515, or 516, the principal obligation of which has not been fully
repaid.</text>
</paragraph><paragraph id="H708924AC677C4A0AAC7366623DA4E80"><enum>(3)</enum><header>Project owner;
owner</header><text>The terms <quote>project owner</quote> and
<quote>owner</quote> mean, with respect to an eligible project, an individual
or entity, or principals thereof that own, or plan to purchase, the
project.</text>
</paragraph><paragraph id="H727FAB5308E54238BE90C14DD71DC5DF"><enum>(4)</enum><header>Preserved
project</header><text>The term <quote>preserved project</quote> means an
eligible project for which the Secretary and owner have entered into agreement
on a financial restructuring plan for the project and into a long-term use
agreement for the project, under this section.</text>
</paragraph></subsection><subsection id="HE976F47E0FFD4E93BC6700F521D65264"><enum>(j)</enum><header>Annual
report</header><text>The Secretary shall submit a report to the Congress
annually regarding the compliance of owners of eligible projects participating
in the preservation program under this section with the requirements of such
program, which shall identify and describe any significant failures to
comply.</text>
</subsection><subsection id="H4D2A49121A2647EAA2FB556488F86F49"><enum>(k)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated for each
of fiscal years 2011 through 2015 such sums as may be necessary to carry out
the preservation program under this
section.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section display-inline="no-display-inline" id="HE393AACA6F5C4CCE96BE8304D8C1CAFD"><enum>803.</enum><header>Rural
preservation and rural tenant protection vouchers</header><text display-inline="no-display-inline">Section 542 of the Housing Act of 1949 (42
U.S.C. 1490r) is amended by adding at the end the following new
subsections:</text>
<quoted-block display-inline="no-display-inline" id="H0C302236E7184EA8A7D6F521FB81E1C6" style="OLC">
<subsection id="H0227F2F4A14042B1A49126B3A11734EA"><enum>(c)</enum><header>Rural
preservation assistance</header><text display-inline="yes-display-inline">In
the case of a housing project subject to a loan made under section 514, 515, or
516 that is a preserved project (as such term is defined in section 545(i)),
the Secretary shall, to the extent that amounts for assistance under this
subsection are provided in advance in appropriation Acts, make available to
each eligible household (as such term is defined in section 545(i)) that is not
already assisted under the rental assistance program under section 521 or the
program for rental assistance under section 8 of the United States Housing Act
of 1937 (42 U.S.C. 1437f), and is residing in the project upon the date that a
long-term use agreement is entered into pursuant to section 545(e) between the
project owner and the Secretary, voucher assistance under this subsection or
rental assistance under section 521 upon such date, as follows:</text>
<paragraph id="H5C0D531C2F3F416DA2FE4054139E60C9"><enum>(1)</enum><text>The amount of
assistance provided shall be sufficient to allow such household to remain in
the project after it is preserved.</text>
</paragraph><paragraph id="HB1A5336DCC3A4105B01EB152241E106F"><enum>(2)</enum><text display-inline="yes-display-inline">The percentage of adjusted income paid by
the eligible household for rent and utilities for the assisted dwelling shall
not exceed 30 percent of adjusted income of the eligible household.</text>
</paragraph><paragraph id="H8E6006EF923B48E19CC2D04B2871B5EF"><enum>(3)</enum><text display-inline="yes-display-inline">The assistance shall be available to the
eligible household only during the period in which the eligible household
resides in the preserved project and the long-term use agreement remains in
effect.</text>
</paragraph><paragraph id="H2018B2FBC0CB4F1087BC9C54D3189EA3"><enum>(4)</enum><text>Upon termination
of the participation of the eligible household in the assistance program, the
assistance shall remain attached to the preserved project and shall be
available for use by another eligible household residing in the preserved
project.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H5313D0C32EA541948D2700B48E96CAB3"><enum>(d)</enum><header>Rural tenant
protection vouchers for prepayments and foreclosures</header>
<paragraph id="HC3AC4C59C19A42D88E989C3189D9D528"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">In the case of a
housing project subject to a loan made under section 514, 515, or 516 that is
prepaid or foreclosed upon, the Secretary shall, to the extent that amounts for
assistance under this subsection are provided in advance in appropriation Acts,
make available to each eligible household (as such term is defined in section
545(i)) that is not assisted under the rental assistance program under section
521 or the program for rental assistance under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f), and is residing in a dwelling unit in
the project upon the date that the Secretary approves the prepayment or submits
notice of foreclosure to the project owner, as applicable, voucher assistance
upon such date, as follows:</text>
<subparagraph id="HCC22A0BCAC0B47C98F4200C61D7EFC38"><enum>(A)</enum><header>Relocation
vouchers</header><text display-inline="yes-display-inline">In the case of any
such eligible household who must relocate from a project for which the loan is
being prepaid or foreclosed upon, voucher assistance under this subsection
shall be subject to the terms of section 8(o) of the United States Housing Act
of 1937 (42 U.S.C. 1437(o)), except that—</text>
<clause id="H3ABB9480339341009E9C7F06BBC2D7D"><enum>(i)</enum><text>the
percentage of adjusted income paid by the eligible household for rent and
utilities for the assisted dwelling unit shall not at any time exceed 30
percent of the adjusted income of the eligible household; and</text>
</clause><clause id="HEE74AB30BD0442B685D482A84599B668"><enum>(ii)</enum><text display-inline="yes-display-inline">a voucher provided pursuant to this
subparagraph shall be subject to the terms of section 8(r) of such Act
(relating to portability), except that if an eligible household uses the
voucher to move to a community other than the community in which the project
from which the family relocated pursuant to such prepayment or foreclosure is
located, upon termination of the participation of such eligible family in the
voucher program, the voucher shall be returned for use in the community in
which such project is located.</text>
</clause></subparagraph><subparagraph id="HEB6B16672F144DBA80EA020849379C48"><enum>(B)</enum><header>Enhanced
vouchers</header><text display-inline="yes-display-inline">In the case of any
such eligible household who remains in a project for which the loan is prepaid
or foreclosed upon, voucher assistance under this subsection shall be subject
to the terms of section 8(t) of the United State Housing Act of 1937 (42 U.S.C.
1437f(t)), except that—</text>
<clause id="H4A0E8430253A4BA8ABDD2FED64CE8D70"><enum>(i)</enum><text>the percentage of
adjusted income paid by the eligible household for rent and utilities for the
assisted dwelling unit shall not at any time exceed 30 percent of the adjusted
income of the eligible household;</text>
</clause><clause id="HF74F83082B384A56A2E35086BCEA9F2E"><enum>(ii)</enum><text display-inline="yes-display-inline">the owner of the project may not refuse to
lease, to an eligible household for whom voucher assistance under this
subparagraph is made available, any available appropriately sized rental
dwelling unit in the project;</text>
</clause><clause id="H8D00285B92234E2FA75E95ADF041E200"><enum>(iii)</enum><text>voucher
assistance under this subparagraph may be used only for dwelling units in
housing that is decent, safe, and sanitary; and</text>
</clause><clause id="H36ED87174D4748CFBDED6DC91FDC1D26"><enum>(iv)</enum><text display-inline="yes-display-inline">upon termination of participation of such
eligible family in the enhanced voucher program, the voucher shall convert to a
relocation voucher under subparagraph (A) of this paragraph, and shall be
available with respect to such project only to provide assistance in accordance
with the provisions of such subparagraph.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H6B15AD3CD1C04EC4BF1BF6003249DB45"><enum>(e)</enum><header>Administration</header><text display-inline="yes-display-inline">The Secretary may contract with a public
housing agency or a private or nonprofit organization to administer vouchers
authorized under subsections (c) and (d).</text>
</subsection><subsection display-inline="no-display-inline" id="H58A70D2A107648DC8CCD8526D97FAC24"><enum>(f)</enum><header>Renewal</header><text>Vouchers
under subsections (c) and (d) shall be renewed annually, subject to the
availability of appropriations for such renewal.</text>
</subsection><subsection id="H9DDE01BB51284668B6B97EEF1ED0AA3E"><enum>(g)</enum><header>Use of
savings</header><text>Notwithstanding any other provision of law, any amounts
made available for voucher assistance under subsections (c) and (d) that remain
unused because of increases in the incomes of household assisted under such
vouchers shall be available to the Secretary for eligible activities under this
Act.</text>
</subsection><subsection id="H278CBF8E91FD4123A78DBE375577D0C4"><enum>(h)</enum><header>Applicability of
section 8 program</header><text display-inline="yes-display-inline">Except as
specifically provided otherwise in this section, to the maximum extent
practicable, the Secretary shall administer voucher assistance under
subsections (c) and (d) in accordance with, but not subject to, regulations and
administrative guidance for housing vouchers administered by the Secretary of
Housing and Urban Development under section 8(o) of such Act.</text>
</subsection><subsection id="HFFEC827A34BF4595B5E7A0E91BDC091"><enum>(i)</enum><header>Authorization of
appropriations</header><text display-inline="yes-display-inline">There is
authorized to be appropriated for voucher assistance under subsections (c) and
(d) such sums as may be necessary for each of fiscal years 2011 through
2015.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H3B6D8649040548AAACB4E1EF941EC6D4"><enum>804.</enum><header>Tenant
participation</header><text display-inline="no-display-inline">Title V of the
Housing Act of 1949 is amended by inserting after section 517 (42 U.S.C. 1487)
the following new section:</text>
<quoted-block display-inline="no-display-inline" id="HAA04309F921B444AAC8DFF77F53DAE78" style="OLC">
<section id="H0D6D94E4429042A0965F0ACCE3242140"><enum>518.</enum><header>Tenant
participation</header><text display-inline="no-display-inline">The Secretary
shall extend to tenants in multifamily housing projects financed under sections
514, 515, 516 and 538 all of the rights that are specified in section 202 of
the Housing and Community Development Amendments of 1978 (12 U.S.C. 1715z–1b)
with respect to tenants of multifamily housing projects (as such term is
defined in subsection (a) of such
section).</text>
</section><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HC226C2A7B22448DC84A861A9D14D9305"><enum>805.</enum><header>Priority for
financing</header><text display-inline="no-display-inline">Subsection (j) of
section 515 of the Housing Act of 1949 (42 U.S.C. 1485(j)) is amended—</text>
<paragraph id="H3A4F57CCD0D04470B435F13B538B9EAE"><enum>(1)</enum><text>by inserting
<quote>(1)</quote> before <quote>For</quote>; and</text>
</paragraph><paragraph id="H59032904EF2A4AD09DFFA80036F50428"><enum>(2)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HD464871226E54065ABCC427455E7B366" style="OLC">
<paragraph id="HDAEE7918C77F45B0AC3706DE35864815" indent="up1"><enum>(2)</enum><text>The Secretary may give priority, in
entering into contracts under this section involving financing for new
construction of a project, for projects located in eligible rural areas having
a need for affordable low-income rental housing due to prepayment of loans made
or insured under this
section.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HF0308EEA56BF4CDB98C535DE6D095665"><enum>806.</enum><header>Conforming
amendment</header><text display-inline="no-display-inline">Section 537(b)(1) of
the Housing Act of 1949 (42 U.S.C. 1490p–1(b)(1)) is amended by inserting
before the semicolon the following: <quote>and to administer the preservation
program under section 545</quote>.</text>
</section><section id="HCC4F65AF238F48F093EAE5E8275541B"><enum>807.</enum><header>Regulations</header><text display-inline="no-display-inline">The Secretary of Agriculture shall issue
proposed regulations to carry out the amendments made by this title not later
than the expiration of the 90-day period beginning upon the date of the
enactment of this Act, and shall issue final regulations to carry out the
amendments made by this title not later than the expiration of the 180-day
period beginning upon such date of enactment.</text>
</section>