[Congressional Record Volume 165, Number 144 (Tuesday, September 10, 2019)]
[House]
[Pages H7573-H7576]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STRATEGY AND INVESTMENT IN RURAL HOUSING PRESERVATION ACT OF 2019
Mr. SAN NICOLAS. Mr. Speaker, I move to suspend the rules and pass
the bill (H.R. 3620) to provide rental assistance to low-income tenants
in certain multifamily rural housing projects financed by the Rural
Housing Service of the Department of Agriculture, and to develop and
implement a plan for preserving the affordability of rural rental
housing, and for other purposes, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 3620
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 ``Strategy and Investment in
Rural Housing Preservation Act of 2019''.
SEC. 2. PERMANENT ESTABLISHMENT OF HOUSING PRESERVATION AND
REVITALIZATION PROGRAM.
Title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.)
is amended by adding at the end the following new section:
``SEC. 545. HOUSING PRESERVATION AND REVITALIZATION PROGRAM.
``(a) Establishment.--The Secretary shall carry out a
program under this section for the preservation and
revitalization of multifamily rental housing projects
financed under section 515 or both sections 514 and 516.
``(b) Notice of Maturing Loans.--
``(1) To owners.--On an annual basis, the Secretary shall
provide written notice to each owner of a property financed
under section 515 or both sections 514 and 516 that will
mature within the 4-year period beginning upon the provision
of such notice, setting forth the options and financial
incentives that are available to facilitate the extension of
the loan term or the option to decouple a rental assistance
contract pursuant to subsection (f).
``(2) To tenants.--
``(A) In general.--For each property financed under section
515 or both sections 514 and 516, not later than the date
that is 2 years before the date that such loan will mature,
the Secretary shall provide written notice to each household
residing in such property that informs them of the date of
the loan maturity, the possible actions that may happen with
respect to the property upon such maturity, and how to
protect their right to reside in federally assisted housing
after such maturity.
``(B) Language.--Notice under this paragraph shall be
provided in plain English and shall be translated to other
languages in the case of any property located in an area in
which a significant number of residents speak such other
languages.
``(c) Loan Restructuring.--Under the program under this
section, the Secretary may restructure such existing housing
loans, as the Secretary considers appropriate, for the
purpose of ensuring that such projects have sufficient
resources to preserve the projects to provide safe and
affordable housing for low-income residents and farm
laborers, by--
``(1) reducing or eliminating interest;
``(2) deferring loan payments;
``(3) subordinating, reducing, or reamortizing loan debt;
and
``(4) providing other financial assistance, including
advances, payments, and incentives (including the ability of
owners to obtain reasonable returns on investment) required
by the Secretary.
``(d) Renewal of Rental Assistance.--When the Secretary
offers to restructure a loan pursuant to subsection (c), the
Secretary shall offer to renew the rental assistance contract
under section 521(a)(2) for a 20-year term that is subject to
annual appropriations, provided that the owner agrees to
bring the property up to such standards that will ensure its
maintenance as decent, safe, and sanitary housing for the
full term of the rental assistance contract.
``(e) Restrictive Use Agreements.--
``(1) Requirement.--As part of the preservation and
revitalization agreement for a project, the Secretary shall
obtain a restrictive use agreement that obligates the owner
to operate the project in accordance with this title.
``(2) Term.--
``(A) No extension of rental assistance contract.--Except
when the Secretary enters into a 20-year extension of the
rental assistance contract for the project, the term of the
restrictive use agreement for the project shall be consistent
with the term of the restructured loan for the project.
``(B) Extension of rental assistance contract.--If the
Secretary enters into a 20-year extension of the rental
assistance contract for a project, the term of the
restrictive use agreement for the project shall be for 20
years.
``(C) Termination.--The Secretary may terminate the 20-year
use restrictive use agreement for a project prior to the end
of
[[Page H7574]]
its term if the 20-year rental assistance contract for the
project with the owner is terminated at any time for reasons
outside the owner's control.
``(f) Decoupling of Rental Assistance.--
``(1) Renewal of rental assistance contract.--If the
Secretary determines that a maturing loan for a project
cannot reasonably be restructured in accordance with
subsection (c) and the project was operating with rental
assistance under section 521, the Secretary may renew the
rental assistance contract, notwithstanding any provision of
section 521, for a term, subject to annual appropriations, of
at least 10 years but not more than 20 years.
``(2) Rents.--Any agreement to extend the term of the
rental assistance contract under section 521 for a project
shall obligate the owner to continue to maintain the project
as decent, safe and sanitary housing and to operate the
development in accordance with this title, except that rents
shall be based on the lesser of--
``(A) the budget-based needs of the project; or
``(B) (ii) the operating cost adjustment factor as a
payment standard as provided under section 524 of the
Multifamily Assisted Housing Reform and Affordability Act of
1997 (42 U.S.C. 1437 note).
``(g) Multifamily Housing Transfer Technical Assistance.--
Under the program under this section, the Secretary may
provide grants to qualified non-profit organizations and
public housing agencies to provide technical assistance,
including financial and legal services, to borrowers under
loans under this title for multifamily housing to facilitate
the acquisition of such multifamily housing properties in
areas where the Secretary determines there is a risk of loss
of affordable housing.
``(h) Transfer of Rental Assistance.--After the loan or
loans for a rental project originally financed under section
515 or both sections 514 and 516 have matured or have been
prepaid and the owner has chosen not to restructure the loan
pursuant to subsection (c), a tenant residing in such project
shall have 18 months prior to loan maturation or prepayment
to transfer the rental assistance assigned to the tenant's
unit to another rental project originally financed under
section 515 or both sections 514 and 516, and the owner of
the initial project may rent the tenant's previous unit to a
new tenant without income restrictions.
``(i) Administrative Expenses.--Of any amounts made
available for the program under this section for any fiscal
year, the Secretary may use not more than $1,000,000 for
administrative expenses for carrying out such program.
``(j) Authorization of Appropriations.--There is authorized
to be appropriated for the program under this section
$200,000,000 for each of fiscal years 2020 through 2024.''.
SEC. 3. ELIGIBILITY FOR RURAL HOUSING VOUCHERS.
Section 542 of the Housing Act of 1949 (42 U.S.C. 1490r) is
amended by adding at the end the following new subsection:
``(c) Eligibility of Households in Section 514, 515, and
516 Projects.--The Secretary may provide rural housing
vouchers under this section for any low-income household
(including those not receiving rental assistance) residing in
a property financed with a loan made or insured under section
514 or 515 (42 U.S.C. 1484, 1485) which has been prepaid, has
been foreclosed, or has matured after September 30, 2005, or
residing in a property assisted under section 514 or 516 that
is owned by a nonprofit organization or public agency.''.
SEC. 4. AMOUNT OF VOUCHER ASSISTANCE.
Notwithstanding any other provision of law, in the case of
any rural housing voucher provided pursuant to section 542 of
the Housing Act of 1949 (42 U.S.C. 1490r), the amount of the
monthly assistance payment for the household on whose behalf
such assistance is provided shall be determined as provided
in subsection (a) of such section 542.
SEC. 5. USE OF AVAILABLE RENTAL ASSISTANCE.
Subsection (d) of section 521 of the Housing Act of 1949
(42 U.S.C. 1490a(d)) is amended by adding at the end the
following new paragraph:
``(3) In the case of any rental assistance contract
authority that becomes available because of the termination
of assistance on behalf of an assisted family--
``(A) at the option of the owner of the rental project, the
Secretary shall provide the owner a period of 6 months before
such assistance is made available pursuant to subparagraph
(B) during which the owner may use such assistance authority
to provide assistance of behalf of an eligible unassisted
family that--
``(i) is residing in the same rental project that the
assisted family resided in prior to such termination; or
``(ii) newly occupies a dwelling unit in such rental
project during such period; and
``(B) except for assistance used as provided in
subparagraph (A), the Secretary shall use such remaining
authority to provide such assistance on behalf of eligible
families residing in other rental projects originally
financed under section 515 or both sections 514 and 516 of
this Act.''.
SEC. 6. FUNDING FOR MULTIFAMILY TECHNICAL IMPROVEMENTS.
There is authorized to be appropriated to the Secretary of
Agriculture $50,000,000 for fiscal year 2020 for improving
the technology of the Department of Agriculture used to
process loans for multifamily housing and otherwise managing
such housing. Such improvements shall be made within the 5-
year period beginning upon the appropriation of such amounts
and such amount shall remain available until the expiration
of such 5-year period.
SEC. 7. PLAN FOR PRESERVING AFFORDABILITY OF RENTAL PROJECTS.
(a) Plan.--The Secretary of Agriculture (in this section
referred to as the ``Secretary'') shall submit a written plan
to the Congress, not later than the expiration of the 6-month
period beginning on the date of the enactment of this Act,
for preserving the affordability for low-income families of
rental projects for which loans were made under section 515
or made to nonprofit or public agencies under section 514 and
avoiding the displacement of tenant households, which shall--
(1) set forth specific performance goals and measures;
(2) set forth the specific actions and mechanisms by which
such goals will be achieved;
(3) set forth specific measurements by which progress
towards achievement of each goal can be measured;
(4) provide for detailed reporting on outcomes; and
(5) include any legislative recommendations to assist in
achievement of the goals under the plan.
(b) Advisory Committee.--
(1) Establishment; purpose.--The Secretary shall establish
an advisory committee whose purpose shall be to assist the
Secretary in preserving section 515 properties and section
514 properties owned by nonprofit or public agencies through
the multifamily housing preservation and revitalization
program under section 545 and in implementing the plan
required under subsection (a).
(2) Member.--The advisory committee shall consist of 14
members, appointed by the Secretary, as follows:
(A) A State Director of Rural Development for the
Department of Agriculture.
(B) The Administrator for Rural Housing Service of the
Department of Agriculture.
(C) 2 representatives of for-profit developers or owners of
multifamily rural rental housing.
(D) 2 representatives of non-profit developers or owners of
multifamily rural rental housing.
(E) 2 representatives of State housing finance agencies.
(F) 2 representatives of tenants of multifamily rural
rental housing.
(G) 1 representative of a community development financial
institution that is involved in preserving the affordability
of housing assisted under sections 514, 515, and 516 of the
Housing Act of 1949.
(H) 1 representative of a nonprofit organization that
operates nationally and has actively participated in the
preservation of housing assisted by the Rural Housing Service
by conducting research regarding, and providing financing and
technical assistance for, preserving the affordability of
such housing.
(I) 1 representative of low-income housing tax credit
investors.
(J) 1 representative of regulated financial institutions
that finance affordable multifamily rural rental housing
developments.
(3) Meetings.--The advisory committee shall meet not less
often than once each calendar quarter.
(4) Functions.--In providing assistance to the Secretary to
carry out its purpose, the advisory committee shall carry out
the following functions:
(A) Assisting the Rural Housing Service of the Department
of Agriculture to improve estimates of the size, scope, and
condition of rental housing portfolio of the Service,
including the time frames for maturity of mortgages and costs
for preserving the portfolio as affordable housing.
(B) Reviewing current policies and procedures of the Rural
Housing Service regarding preservation of affordable rental
housing financed under sections 514, 515, 516, and 538 of the
Housing Act of 1949, the Multifamily Preservation and
Revitalization Demonstration program (MPR), and the rental
assistance program and making recommendations regarding
improvements and modifications to such policies and
procedures.
(C) Providing ongoing review of Rural Housing Service
program results.
(D) Providing reports to the Congress and the public on
meetings, recommendations, and other findings of the advisory
committee.
(5) Travel costs.--Any amounts made available for
administrative costs of the Department of Agriculture may be
used for costs of travel by members of the advisory committee
to meetings of the committee.
SEC. 8. COVERED HOUSING PROGRAMS.
Paragraph (3) of section 41411(a) of the Violence Against
Women Act of 1994 (34 U.S.C. 12491(a)(3)) is amended--
(1) in subparagraph (I), by striking ``and'' at the end;
(2) by redesignating subparagraph (J) as subparagraph (K);
and
(3) by inserting after subparagraph (I) the following new
subparagraph:
``(J) rural development housing voucher assistance provided
by the Secretary of Agriculture pursuant to section 542 of
the Housing Act of 1949 (42 U.S.C. 1490r), without regard to
subsection (b) of such section, and applicable appropriation
Acts; and''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
[[Page H7575]]
Guam (Mr. San Nicolas) and the gentleman from Ohio (Mr. Stivers) each
will control 20 minutes.
The Chair recognizes the gentleman from Guam.
{time} 1330
General Leave
Mr. SAN NICOLAS. Mr. Speaker, I ask unanimous consent that all
Members may have 5 legislative days in which to revise and extend their
remarks on this legislation and to insert extraneous material thereon.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Guam?
There was no objection.
Mr. SAN NICOLAS. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise in strong support of H.R. 3620, the Strategy and
Investment in Rural Housing Preservation Act of 2019, which will
provide a comprehensive solution to address the imminent crisis of
aging USDA multifamily rental housing that currently serves nearly
400,000 low-income families in rural America.
Like HUD properties, these properties have suffered from years of
inadequate funding, and according to the GAO, USDA does not have a
coherent strategy to preserve these homes and prevent the displacement
of low-income families. For these families, the homes we are trying to
preserve often represent the only affordable housing in their
communities.
Without Congress providing the resources and tools the USDA needs to
preserve properties in its affordable housing portfolio, many of these
families will be displaced, not only from their homes, but from their
communities. And even worse, some might fall into homelessness.
To address this problem, H.R. 3620 would permanently authorize the
Multifamily Housing Preservation and Revitalization Demonstration
program that allows USDA to restructure loans for existing USDA
multifamily properties, to provide incentive for private owners to
continue to participate in the agency's affordable housing programs and
provide those properties with further investment.
To carry out the program, H.R. 3620 would authorize $1 billion in
funding over 5 years. It would also require USDA to develop a plan for
implementing the new funding and authorities available to them under
this bill to ensure that a comprehensive strategy is in place to
preserve these rural housing properties and avoid resident
displacement.
The bill would also establish an advisory committee made up of
diverse stakeholders, including low-income tenants to include USDA on
the implementation of its plan.
Lastly, this bill includes the text of Congressman Vicente Gonzalez's
bill that will add the Rural Housing Voucher Program to the list of
covered housing programs under the Violence Against Women Act.
Groups that represent both tenants and owners support H.R. 3620,
including the National Rural Housing Coalition, the Council for
Affordable and Rural Housing, the National Housing Law Project, the
Housing Assistance Council, the National Housing Trust, and the Local
Initiatives Support Corporation.
I thank the gentleman from Missouri (Mr. Clay) for introducing this
important legislation, and I urge my colleagues to support this bill.
Mr. Speaker, I reserve the balance of my time.
Mr. STIVERS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 3620, the Strategy and
Investment in Rural Housing Preservation Act of 2019. Statistics from
the U.S. Department of Agriculture show that 15 percent of our
population lives in rural areas, and in that area, rural renters
generally have significantly lower incomes than rural homeowners.
Nearly one-third of them live below the poverty level. In fact, the
average annual income of tenants in USDA Section 515 financed
properties is approximately $13,600, and the majority of those
residents are either senior citizens or people with disabilities.
Rural housing makes up about 28.4 percent of rural and small-town
housing stock, a significant part of the rural housing market. It is
clear that the challenges of rural America are multifaceted. This bill
would help address some of those, and it would help make sure that
outcomes currently experienced as a result of the interaction of RHS'
owner assistance programs and the tenant rental assistance programs not
working well together.
The program is structured in a way that the departure of properties
from the programs, when an owner's loans either mature or are prepaid,
negatively impacts the availability of rental assistance for tenants. I
think it is safe to say that the system currently does not make much
sense, and there is a need for greater reform and consolidation.
H.R. 3620 is a step in the right direction. I would like to thank the
gentleman from Missouri (Mr. Clay), my colleague, for his work on this
very important and long-neglected issue of rural housing.
Mr. Speaker, I urge my colleagues to support this bill, and I reserve
the balance of my time.
Mr. SAN NICOLAS. Mr. Speaker, I yield 5 minutes to the gentleman from
Missouri (Mr. Clay), the sponsor of this legislation and the chair of
the Subcommittee on Housing, Community Development and Insurance.
Mr. CLAY. Mr. Speaker, I thank my friend from Guam for yielding. And
Mr. Speaker, I rise in favor of H.R. 3620, the Strategy and Investment
in Rural Housing Act of 2019, which would address the need to repair
and renovate the existing USDA rural housing stock and the best way to
deal with maturing loans.
Mr. Speaker, I ask Members to support this commonsense legislation,
and here is why:
The stock of affordable homes supported by USDA's Section 515, Rural
Rental Housing Loans and Section 514, Farm Labor Housing Loans is old
and in need of repair.
However, the USDA has been unable to come up with a clear plan to
preserve these homes and ensure residents are not displaced, putting
them at risk of housing instability, and in worst cases, homelessness.
This bill permanently authorizes the Multifamily Housing Preservation
and Revitalization program and provides $1 billion in funding over 5
years. This will give the USDA the tools and funding necessary to come
up with a comprehensive strategy for preservation and avoid tenant
displacement for some of our most vulnerable.
And the bill also, as mentioned, establishes an advisory committee
that includes a diverse range of stakeholders to advise the USDA on how
to implement its plan for preservation.
Section 515 and 514 are USDA-backed multifamily loans providing low
interest, long-term multifamily loans to support affordable rental
housing.
There are approximately 14,000 Section 515 and 514 properties across
the country that are home to nearly 400,000 families, and as was
stated, they have an average income of $13,000, which my colleagues
will recognize is well below the poverty line.
Although my congressional district is not considered rural, the State
of Missouri certainly is, and in many ways is symbolic of rural states
and communities across this Nation, and this bill will help them and
many of the most vulnerable people who work in rural communities across
America.
And as I stated at our hearing in April on this legislation and at
our markup in July, as chairman, I fully intend to ensure that this
subcommittee engages in the housing issues facing all Americans, and I
think that is a good start.
Mr. Speaker, again, I look forward to my colleagues' support.
Mr. STIVERS. Mr. Speaker, again, I rise in support of H.R. 3620. I
want to commend the gentleman from Missouri (Mr. Clay) for his
incredible work on rural housing.
As a congressman from a rural district, over 50 percent of my
district is rural. This is going to help people all around the country.
I thank Congressman Clay. We have a lot more work to do on rural
housing, but this is a good start.
Mr. Speaker, I would urge adoption, and I yield back the balance of
my time.
Mr. SAN NICOLAS. Mr. Speaker, an ounce of prevention is worth a pound
of cure.
I, again, commend the gentleman from Missouri (Mr. Clay) for bringing
this bill before the House.
[[Page H7576]]
We are committed to helping prevent and address homelessness wherever
they may find themselves, and this bill will go a long way in
addressing the need to prevent homelessness in rural communities.
H.R. 3620 passed the committee by a vote of 57-0, and I urge all of
my colleagues to join me in supporting this important piece of
legislation.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Guam (Mr. San Nicolas) that the House suspend the rules
and pass the bill, H.R. 3620, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________