[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4253 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 4253

To amend the Low-Income Housing Preservation and Resident Homeownership 
                              Act of 1990.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 22, 2012

Mr. Paulsen (for himself and Mr. Grimm) introduced the following bill; 
       which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Low-Income Housing Preservation and Resident Homeownership 
                              Act of 1990.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Preservation Enhancement and Savings 
Opportunity Act of 2012''.

SEC. 2. DISTRIBUTIONS AND RESIDUAL RECEIPTS.

    Section 222 of the Low-Income Housing Preservation and Resident 
Homeownership Act of 1990 (12 U.S.C. 4112) is amended by adding at the 
end the following new subsection:
    ``(e) Distribution and Residual Receipts.--After the date of the 
enactment of the Preservation Enhancement and Savings Opportunity Act 
of 2012, the owner of a property subject to a plan of action or use 
agreement pursuant to this section shall, notwithstanding any 
conflicting provision in such use agreement or a plan of action, be 
entitled to distribute--
            ``(1) annually, all surplus cash generated by the property, 
        and
            ``(2) upon request made to the Secretary, any funds 
        accumulated in a residual receipts account;
but only if such owner is in material compliance with such use 
agreement.''.

SEC. 3. FUTURE REFINANCING.

    Section 214 of the Low-Income Housing Preservation and Resident 
Homeownership Act of 1990 (12 U.S.C. 4104) is amended by adding at the 
end the following new subsection:
    ``(c) Future Refinancing.--Neither this section, nor any plan of 
action or use agreement implementing this section, shall restrict an 
owner from obtaining a new loan or refinancing a loan secured by the 
project, or from distributing the proceeds of such a loan, except that 
the treatment of such a loan for purposes of budget-based project rents 
shall be within the discretion of the Secretary.''.

SEC. 4. DEFEASANCE OF DIRECT CAPITAL LOANS.

    Section 219 of the Low-Income Housing Preservation and Resident 
Homeownership Act of 1990 (12 U.S.C. 4109) is amended by adding at the 
end the following new subsection:
    ``(c) Defeasance of Direct Capital Loans.--An owner who received a 
direct capital loan pursuant to the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1997 (Public Law 104-204) shall, upon 30 days written notice to 
the Secretary and payment to the Secretary of the present value of the 
loan as determined under a discount rate equal to the Office of 
Management and Budget's nominal Treasury rate of appropriate duration 
based upon the maturity of the loan, have the right to defease such 
loan or to obtain the release of the instrument securing such loan.''.

SEC. 5. RENT-SETTING.

    The first sentence of 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--
            (1) by inserting ``at least'' after ``benefits''; and
            (2) by inserting before the period at the end the 
        following: ``, but the owner may request a rent increase 
        pursuant to any provision of this section''.
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