I 112th CONGRESS 2d Session H. R. 4253 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.
1.
Short title
This Act may be cited as the Preservation Enhancement and Savings Opportunity Act of 2012.
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..
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. .
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. .
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.