[Congressional Record Volume 155, Number 131 (Wednesday, September 16, 2009)]
[Senate]
[Page S9439]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. WYDEN (for himself and Mr. Merkley):
  S. 1676. A bill to allow for the use of existing section 8 housing 
funds so as to preserve and revitalize affordable housing options for 
low-income individuals; to the Committee on Banking, Housing, and Urban 
Affairs.
  Mr. WYDEN. Mr. President, today I rise to introduce the Affordable 
Housing Preservation and Revitalization Act. I am delighted and honored 
to be joined in this effort by my good friend and colleague, Senator 
Jeff Merkley. It has been my privilege to work with Senator Merkley and 
his staff on an issue that is so important to our state of Oregon and 
to folks around the country.
  There has been a lot of talk about housing in the media over the past 
year. The topic of most of these conversations has been the turmoil in 
lending industry and the fallout from the mortgage meltdown. So much so 
that many Americans have by now become familiar with terms like 
``subprime'' and ``securitization.''
  But there is another housing story here, even though it may not get 
the same attention or airtime: It is the story of homelessness and the 
struggle to find affordable housing, and for thousands of Oregonians 
it's a daily reality.
  Like many States, Oregon is experiencing a sharp rise in 
homelessness.
  In Multnomah County this past January, a count found 2,438 people 
homeless on a particular night. That was 13 percent higher than in 
2007. The deterioration in the economy since January means there are 
probably more homeless on Portland streets now, officials said.
  In July, the Department of Housing and Urban Development released a 
report that listed Oregon as the State with the highest concentration 
of homeless people.
  According to a September report by the National Alliance to End 
Homeless, Central Oregon now ranks sixth in the Nation in overall 
homelessness rates and third among rural communities.
  In times like these, the Federal Government can hardly stand to lose 
its stock of affordable housing. Sadly, that is exactly whats 
happening.
  As long term contracts are coming due, many landlords are leaving the 
business of affordable housing for the private market. As these owners 
convert to market rents, which is in their economic interest, the low-
income tenants will be unable to afford their homes. With fewer and 
fewer places to turn, many of these folks will end up on the street.
  Some of properties have what are known as residual receipts--funds 
left over once the operating expenses and owner's distribution have 
been paid. Currently, this money can only be used in the most extreme 
of situations. As a result, many of these residual receipts have 
accumulated for nearly 3 decades. In Oregon alone, estimates suggest 
there are more than $10 million in untapped residual receipts.
  Senator Merkley and I believe these funds represent a substantial 
asset that could be used to help preserve affordable housing projects 
with expiring contracts. That is why we are introducing the Affordable 
Housing Preservation and Revitalization Act.
  Our legislation would permit residual receipts to be transferred with 
affordable housing properties that are sold to non-profits, provided 
the non-profits commit to preserving and maintaining the housing stock 
as affordable.
  Our legislation isn't a magic bullet and it certainly will not ensure 
that every American can put a roof over their head. But we think it's 
the kind of common sense approach that Americans can get behind. I hope 
that our colleagues will join us in supporting this bill.
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