[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2574 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 2574

     To provide rental assistance to low-income tenants of certain 
      multifamily rural housing projects, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 20, 2018

Mrs. Shaheen (for herself and Ms. Smith) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
     To provide rental assistance to low-income tenants of certain 
      multifamily rural housing projects, and for other purposes.

    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 ``Rural Housing Preservation Act of 
2018''.

SEC. 2. AVAILABILITY OF RURAL HOUSING VOUCHERS FOR TENANTS IN PROJECTS 
              WITH MATURING LOANS.

    (a) In General.--Section 542 of the Housing Act of 1949 (42 U.S.C. 
1490r) is amended by adding at the end the following:
    ``(c) Rural Vouchers for Tenants of Projects With Prepaid or 
Maturing Loans.--
            ``(1) Authority.--Subject to the availability of amounts 
        provided in appropriation Acts and to paragraph (3), the 
        Secretary shall provide rural housing vouchers under this 
        section, in the amount provided under this section, to any low-
        income household (including those not receiving rental 
        assistance) residing in a property that is--
                    ``(A) financed with a loan made or insured under 
                section 514 or 515 that has been prepaid or has matured 
                after September 30, 2005; or
                    ``(B) assisted under section 514 or 516 that is 
                owned by a nonprofit organization or public agency.
            ``(2) Administration and subsidies.--
                    ``(A) In general.--The Secretary shall, to the 
                maximum extent practicable, administer and operate 
                rural housing vouchers under this section according to 
                regulations and administrative guidance that is 
                applicable to enhanced vouchers under section 8(t) of 
                the United States Housing Act of 1937 (42 U.S.C. 
                1437f(t)) administered by the Secretary of Housing and 
                Urban Development.
                    ``(B) Amount of assistance.--The amount of rental 
                assistance provided on behalf of holders of rural 
                housing vouchers under this section shall be the same 
                as the rental assistance provided on behalf of holders 
                of enhanced vouchers under section 8(t) of the United 
                States Housing Act of 1937 (42 U.S.C. 1437f(t)).
            ``(3) Termination of assistance.--The Secretary shall 
        terminate the provision of voucher assistance pursuant to this 
        subsection, with respect to a property, if--
                    ``(A) at any time, a new loan is made or insured 
                under section 514 or 515 for the property; and
                    ``(B) as a result of a loan described in 
                subparagraph (A), rental assistance is provided on 
                behalf of the voucher holder in an amount comparable to 
                the rental assistance provided on behalf of the voucher 
                holder under the voucher program.
    ``(d) Limitation Relating to Projects With Prepaid Loans.--
            ``(1) In general.--The Secretary shall not issue rural 
        housing vouchers under this section to residents who remain in 
        properties that--
                    ``(A) were financed with a loan made or insured 
                under section 514 or 515 that has been prepaid; and
                    ``(B) are subject to any restrictive use agreements 
                entered into pursuant to section 502(c)(5)(G).
            ``(2) Review and approval.--The Secretary shall review and 
        approve all proposed rent increases for residents of properties 
        described in paragraph (1) that are protected by the use 
        agreements described in that paragraph and issue, to those 
        residents, limited voucher assistance that covers the cost of 
        all approved future rent increases that are not related to the 
        cost of prepaying the loan or refinancing the property.''.
    (b) Requirement for Section 515 Projects To Accept Vouchers.--
Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is amended by 
adding at the end the following:
    ``(bb) Requirement To Accept Rural Housing Vouchers.--No owner of a 
property financed with a loan made or insured under this section, 
whether the loan is outstanding or fully paid, may refuse to lease an 
available dwelling unit in the property to a household on behalf of 
whom voucher assistance is provided under section 542, and to enter 
into a voucher contract respecting the unit, a proximate cause of which 
is the status of the current or prospective tenant as a holder of that 
voucher.''.

SEC. 3. DECOUPLING RENTAL ASSISTANCE FROM MATURING RURAL HOUSING LOANS.

    Section 521(a)(2) of the Housing Act of 1949 (42 U.S.C. 
1490a(a)(2)) is amended by adding at the end the following:
            ``(F) Rental assistance for projects with matured loans.--
                    ``(i) Authority.--To continue to make decent, safe 
                and sanitary housing available to low-income occupants 
                of projects originally financed with a loan made or 
                insured under section 514 or 515 that has matured on or 
                after the date of enactment of this subparagraph or 
                with a grant provided under section 516, and at rental 
                rates commensurate to income as specified in 
                subparagraph (A), the Secretary may, subject to the 
                availability of amounts provided in appropriation Acts, 
                contract to make and renew annual assistance payments 
                pursuant to this subparagraph to the owners of those 
                projects.
                    ``(ii) Offer.--The Secretary shall ensure that an 
                offer to provide a contract for assistance payments 
                pursuant to this subparagraph shall be extended to all 
                owners of projects described in clause (i) not later 
                than 24 months before the maturation of the loan 
                (except in the case of loans maturing after the date 
                that is 24 months before the date of enactment of this 
                subparagraph).
                    ``(iii) Terms.--Each contract for assistance 
                payments pursuant to this subparagraph shall--
                            ``(I) have a term of 20 years and be 
                        subject to availability of amounts provided in 
                        annual appropriations Acts;
                            ``(II) cover all new and existing 
                        households residing in the project, regardless 
                        of whether or not the households were 
                        previously assisted under the rental assistance 
                        program authorized under subparagraph (A);
                            ``(III) be recorded at such local real 
                        property recording office as is prescribed by 
                        the State in which the project is located;
                            ``(IV) bind the owner of the project and 
                        successors of the owner to continue to operate 
                        the project in accordance with such agreements;
                            ``(V) require the owner and successors of 
                        the owner to agree to continue to operate the 
                        project as if the project were subject to an 
                        existing loan under section 514 or 515 or a 
                        grant under section 516, as applicable;
                            ``(VI) extend to residents of the project 
                        all the rights that at the time the contract is 
                        entered into are extended to residents of 
                        projects subject to an existing loan under 
                        section 514 or 515 or a grant under section 
                        516, as applicable;
                            ``(VII) require the owner successors of the 
                        owner to maintain the assisted housing as 
                        decent, safe, and sanitary housing; and
                            ``(VIII) provide that the Secretary may 
                        renew the contract for additional 5-year terms 
                        if the assisted housing is maintained in a 
                        decent, safe, and sanitary condition, as 
                        determined by the Secretary.
                    ``(iv) Actual market rentals.--
                            ``(I) In general.--A contract for 
                        assistance provided pursuant to this 
                        subparagraph for a project shall provide 
                        assistance to the owner based on an initial 
                        reasonable operating budget the rents for which 
                        do not exceed such actual market rental rates 
                        for the area in which the project is located, 
                        as are established by the Secretary.
                            ``(II) Adjustment; renewal.--The Secretary 
                        shall annually adjust the actual market rental 
                        rates used for purposes of this clause.
                    ``(v) Renewal; adjustment.--In providing assistance 
                pursuant to this subparagraph, the Secretary shall 
                require the owner of the project to renew the 
                assistance provided to each household not less 
                frequently than annually, in accordance with the 
                provisions of subparagraph (A), and shall adjust the 
                amount of assistance provided to a household at any 
                other time upon a decrease in the monthly income of the 
                household of $100 or more.
                    ``(vi) Administration.--Except as otherwise 
                provided in this subparagraph, rental assistance 
                contracts authorized by this subparagraph shall be 
                administered by the Secretary in the same manner as 
                rental assistance contracts for projects having 
                existing loans made or insured under section 515 or 
                existing loans and grants made under sections 514 and 
                516.''.

SEC. 4. UNIFORM STANDARDS FOR TRANSFERS OF SECTION 515 PROPERTIES USING 
              LOW-INCOME TAX CREDITS.

    Section 515 of the Housing Act of 1949 (42 U.S.C. 1485), as amended 
by this Act, is amended by adding at the end the following:
    ``(cc) Requirements for Transfers of Properties Involving Low-
Income Housing Tax Credits.--The Secretary shall establish, without 
exception, uniform requirements, terms, and conditions for any sale or 
transfer of a property financed with a loan under this section to any 
entity, including a nonprofit organization, that is seeking to acquire 
that property with amounts authorized under this section and any low-
income housing tax credit under section 42 of the Internal Revenue Code 
of 1986.''.

SEC. 5. RURAL MULTIFAMILY HOUSING REVITALIZATION PROGRAM.

    Section 515 of the Housing Act of 1949 (42 U.S.C. 1485), as amended 
by this Act, is amended by adding at the end the following:
    ``(cc) Multifamily Housing Revitalization Program.--
            ``(1) In general.--The Secretary may establish a 
        Multifamily Housing Revitalization Program for the preservation 
        and revitalization of multifamily housing projects funded with 
        loans made available pursuant to this section and sections 514 
        and 516 to ensure that those projects have sufficient resources 
        to provide safe and affordable housing for low-income residents 
        and farm laborers.
            ``(2) Options.--In carrying out paragraph (1), the 
        Secretary may--
                    ``(A) with respect to the loans--
                            ``(i) reduce or eliminate interest;
                            ``(ii) defer loan payments; and
                            ``(iii) subordinate, reduce, or reamortize 
                        loan debt; and
                    ``(B) provide other financial assistance, 
                including--
                            ``(i) advances; and
                            ``(ii) payments and incentives (including 
                        the ability of owners to obtain reasonable 
                        returns on investment).
            ``(3) Requirements.--In exchange for assistance provided 
        pursuant to this subsection, the Secretary shall enter into a 
        restrictive use agreement with the property owner to ensure 
        that the property remains subject to low-income use 
        restrictions for an additional period of time consistent with 
        the terms of the restructuring.
            ``(4) Use of funds for rural housing vouchers.--
                    ``(A) Authority.--If the Secretary determines that 
                additional voucher funds under section 542 are needed, 
                funds for the revitalization program under this 
                subsection may be used for those vouchers for any low-
                income household (including those not receiving rental 
                assistance) residing in a property financed with a loan 
                under this section that has been prepaid after 
                September 30, 2005.
                    ``(B) Amount.--Notwithstanding section 542, the 
                amount of a voucher provided pursuant to this paragraph 
                shall be the difference between comparable market rent 
                for the unit and the tenant-paid rent for the unit.
                    ``(C) Availability.--Funds made available for 
                vouchers pursuant to this paragraph shall be subject to 
                the availability of annual appropriations.
                    ``(D) Administration.--The Secretary shall, to the 
                maximum extent practicable, administer vouchers 
                provided pursuant to this paragraph with regulations 
                and administrative guidance that is applicable to 
                housing vouchers under section 8 of the United States 
                Housing Act of 1937 (42 U.S.C. 1437f) administered by 
                the Secretary of Housing and Urban Development.
            ``(5) Use of voucher funds for revitalization program.--If 
        the Secretary determines that additional funds for the 
        revitalization program under this subsection are needed, funds 
        for the rural housing voucher program under section 542 may be 
        used for the revitalization program under this subsection.''.

SEC. 6. REGULATIONS.

    Not later than 120 days after the date of enactment of this Act, 
the Secretary of Agriculture shall issue regulations necessary to carry 
out the amendments made by this Act.
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