[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.

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