[Congressional Record Volume 162, Number 78 (Tuesday, May 17, 2016)]
[Senate]
[Pages S2909-S2910]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 4004. Mr. NELSON submitted an amendment intended to be proposed to
amendment SA 3896 proposed by Ms. Collins (for herself, Mr. Kirk, Mr.
Reed, and Mr. Tester) to the bill H.R. 2577, making appropriations for
the Departments of Transportation, and Housing and Urban Development,
and related agencies for the fiscal year ending September 30, 2016, and
for other purposes; which was ordered to lie on the table; as follows:
In division A, strike section 225 and insert the following:
Sec. 225. (a) Any entity receiving housing assistance
payments shall maintain decent, safe, and sanitary
conditions, as determined by the Secretary of Housing and
Urban Development (in this section referred to as the
``Secretary''), and comply with any standards under
applicable State or local laws, rules, ordinances, or
regulations relating to the physical condition of any
property covered under a housing assistance payment contract.
(b) The Secretary shall take action under subsection (c)
when a multifamily housing project with a section 8 contract
or contract for similar project-based assistance--
(1) receives a Uniform Physical Condition Standards (UPCS)
score of 30 or less;
(2) fails to certify in writing to the Secretary within 3
days that all Exigent Health and Safety deficiencies
identified by the inspector at the project have been
corrected; or
(3) receives a UPCS score between 31 and 59 and has
received consecutive scores of less than 60 on UPCS
inspections.
Such requirements shall apply to insured and noninsured
projects with assistance attached to the units under section
8 of the United States Housing Act of 1937 (42 U.S.C. 1437f),
but do not apply to such units assisted under section
8(o)(13) (42 U.S.C. 1437f(o)(13)) or to public housing units
assisted with capital or operating funds under section 9 of
the United States Housing Act of 1937 (42 U.S.C. 1437g).
(c) Corrections of Deficiencies.--
(1) The Secretary shall notify the owner and provide an
opportunity for response within 30 days. If the violations
remain, the Secretary shall develop a Compliance, Disposition
and Enforcement Plan within 60 days and must provide the
owner with a Notice of Default with a specified timetable,
determined by the Secretary, for correcting all deficiencies.
The Secretary must also provide a copy of the Notice of
Default to the tenants, the local government, any mortgagees,
and any contract administrator. If the owner's appeal results
in a UPCS score of 60 or above, the Secretary may withdraw
the Notice of Default.
(2) At the end of the time period for correcting all
deficiencies specified in the Notice of Default, if the owner
fails to fully correct such deficiencies, the Secretary may--
(A) require immediate replacement of project management
with a management agent approved by the Secretary;
[[Page S2910]]
(B) impose civil money penalties, which shall be used
solely for the purpose of supporting safe and sanitary
conditions at applicable properties, as designated by the
Secretary, with priority given to the tenants of the property
affected by the penalty;
(C) abate the section 8 contract, including partial
abatement, as determined by the Secretary, until all
deficiencies have been corrected;
(D) pursue transfer of the project to an owner, approved by
the Secretary under established procedures, which will be
obligated to promptly make all required repairs and to accept
renewal of the assistance contract as long as such renewal is
offered;
(E) transfer the existing section 8 contract to another
project or projects and owner or owners;
(F) pursue exclusionary sanctions, including suspensions or
debarments from Federal programs;
(G) seek judicial appointment of a receiver to manage the
property and cure all project deficiencies or seek a judicial
order of specific performance requiring the owner to cure all
project deficiencies;
(H) work with the owner, lender, or other related party to
stabilize the property in an attempt to preserve the property
through compliance, transfer of ownership, or an infusion of
capital provided by a third-party that requires time to
effectuate; or
(I) take any other regulatory or contractual remedies
available as deemed necessary and appropriate by the
Secretary.
(d) The Secretary shall also take appropriate steps to
ensure that project-based contracts remain in effect, subject
to the exercise of contractual abatement remedies to assist
relocation of tenants for major threats to health and safety
after written notice to and informed consent of the affected
tenants and use of other remedies set forth above. To the
extent the Secretary determines, in consultation with the
tenants and the local government, that the property 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
(``MAHRAA'') and (2) environmental conditions that cannot be
remedied in a cost-effective fashion, the Secretary may, in
consultation with the tenants of that property, contract for
project-based rental assistance payments with an owner or
owners of other existing housing properties, or provide other
rental assistance.
(e) The Secretary shall report quarterly on all properties
covered by this section that are assessed through the Real
Estate Assessment Center and have UPCS physical inspection
scores of less than 60 or have received an unsatisfactory
management and occupancy review within the past 36 months.
The report shall include--
(1) the enforcement actions being taken to address such
conditions, including imposition of civil money penalties and
termination of subsidies, and identify properties that have
such conditions multiple times;
(2) actions that the Department of Housing and Urban
Development is taking to protect tenants of such identified
properties; and
(3) any administrative or legislative recommendations to
further improve the living conditions at properties covered
under a housing assistance payment contract.
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