[Congressional Record (Bound Edition), Volume 147 (2001), Part 12]
[House]
[Pages 17700-17705]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 17700]]

                  MARK-TO-MARKET EXTENSION ACT OF 2001

  Mr. GREEN of Wisconsin. Mr. Speaker, I move to suspend the rules and 
pass the bill (2589) to amend the Multifamily Assisted Housing Reform 
and Affordability Act of 1997 to reauthorize the Office of Multifamily 
Housing Assistance Restructuring, and for other purposes, as amended.
  The Clerk read as follows:

                               H.R. 2589

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Mark-to-
     Market Extension Act of 2001''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title and table of contents.
Sec. 2. Purposes.
Sec. 3. Effective date.

TITLE I--MULTIFAMILY HOUSING MORTGAGE AND ASSISTANCE RESTRUCTURING AND 
                       SECTION 8 CONTRACT RENEWAL

Sec. 101. Definitions.
Sec. 102. Mark-to-market program amendments.
Sec. 103. Consistency of rent levels under enhanced voucher assistance 
              and rent restructurings.
Sec. 104. Eligible inclusions for renewal rents of partially assisted 
              buildings.
Sec. 105. Eligibility of restructuring projects for miscellaneous 
              housing insurance.
Sec. 106. Technical corrections.

    TITLE II--OFFICE OF MULTIFAMILY HOUSING ASSISTANCE RESTRUCTURING

Sec. 201. Reauthorization of Office and extension of program.
Sec. 202. Appointment of Director.
Sec. 203. Vacancy in position of Director.
Sec. 204. Oversight by Federal Housing Commissioner.
Sec. 205. Limitation on subsequent employment.

          TITLE III--MISCELLANEOUS HOUSING PROGRAM AMENDMENTS

Sec. 301. Extension of CDBG public services cap exception.
Sec. 302. Use of section 8 enhanced vouchers for prepayments.
Sec. 303. Prepayment and refinancing of loans for section 202 
              supportive housing.
Sec. 304. Technical correction.

     SEC. 2. PURPOSES.

       The purposes of this Act are--
       (1) to continue the progress of the Multifamily Assisted 
     Housing Reform and Affordability Act of 1997 (referred to in 
     this section as ``that Act'');
       (2) to ensure that properties that undergo mortgage 
     restructurings pursuant to that Act are rehabilitated to a 
     standard that allows the properties to meet their long-term 
     affordability requirements;
       (3) to ensure that, for properties that undergo mortgage 
     restructurings pursuant to that Act, reserves are set at 
     adequate levels to allow the properties to meet their long-
     term affordability requirements;
       (4) to ensure that properties that undergo mortgage 
     restructurings pursuant to that Act are operated efficiently, 
     and that operating expenses are sufficient to ensure the 
     long-term financial and physical integrity of the properties;
       (5) to ensure that properties that undergo rent 
     restructurings have adequate resources to maintain the 
     properties in good condition;
       (6) to ensure that the Office of Multifamily Housing 
     Assistance Restructuring of the Department of Housing and 
     Urban Development continues to focus on the portfolio of 
     properties eligible for restructuring under that Act;
       (7) to ensure that the Department of Housing and Urban 
     Development carefully tracks the condition of those 
     properties on an ongoing basis;
       (8) to ensure that tenant groups, nonprofit organizations, 
     and public entities continue to have the resources for 
     building the capacity of tenant organizations in furtherance 
     of the purposes of subtitle A of that Act; and
       (9) to encourage the Office of Multifamily Housing 
     Assistance Restructuring to continue to provide participating 
     administrative entities, including public participating 
     administrative entities, with the flexibility to respond to 
     specific problems that individual cases may present, while 
     ensuring consistent outcomes around the country.

     SEC. 3. EFFECTIVE DATE.

       Except as provided in sections 106(a)(2), 303(b), and 
     304(b), this Act and the amendments made by this Act shall 
     take effect or are deemed to have taken effect, as 
     appropriate, on the earlier of--
       (1) the date of the enactment of this Act; or
       (2) September 30, 2001.

TITLE I--MULTIFAMILY HOUSING MORTGAGE AND ASSISTANCE RESTRUCTURING AND 
                       SECTION 8 CONTRACT RENEWAL

     SEC. 101. DEFINITIONS.

       Section 512 of the Multifamily Assisted Housing Reform and 
     Affordability Act of 1997 (42 U.S.C. 1437f note) is amended 
     by adding at the end the following new paragraph:
       ``(19) Office.--The term `Office' means the Office of 
     Multifamily Housing Assistance Restructuring established 
     under section 571.''.

     SEC. 102. MARK-TO-MARKET PROGRAM AMENDMENTS.

       (a) Funding for Tenant and Nonprofit Participation.--
     Section 514(f)(3)(A) of the Multifamily Assisted Housing 
     Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) 
     is amended--
       (1) by striking ``Secretary may provide not more than 
     $10,000,000 annually in funding'' and inserting ``Secretary 
     shall make available not more than $10,000,000 annually in 
     funding, which amount shall be in addition to any amounts 
     made available under this subparagraph and carried over from 
     previous years,''; and
       (2) by striking ``entities) and for tenant services,'' and 
     inserting ``entities), for tenant services, and for tenant 
     groups, nonprofit organizations, and public entities 
     described in section 517(a)(5),''.
       (b) Exception Rents.--Section 514(g)(2)(A) of the 
     Multifamily Assisted Housing Reform and Affordability Act of 
     1997 (42 U.S.C. 1437f note) is amended by striking 
     ``restructured mortgages in any fiscal year'' and inserting 
     ``portfolio restructuring agreements''.
       (c) Notice to Displaced Tenants.--Section 516(d) of the 
     Multifamily Assisted Housing Reform and Affordability Act of 
     1997 (42 U.S.C. 1437f note) is amended by striking ``Subject 
     to'' and inserting the following:
       ``(1) Notice to certain residents.--The Office shall notify 
     any tenant that is residing in a project or receiving 
     assistance under section 8 of the United States Housing Act 
     of 1937 (42 U.S.C. 1437f) at the time of rejection under this 
     section, of such rejection, except that the Office may 
     delegate the responsibility to provide notice under this 
     paragraph to the participating administrative entity.
       ``(2) Assistance and moving expenses.--Subject to''.
       (d) Restructuring Plans for Transfers of Prepayment 
     Projects.--The Multifamily Assisted Housing Reform and 
     Affordability Act of 1997 (42 U.S.C. 1437f note) is amended--
       (1) in section 524(e), by adding at the end the following 
     new paragraph:
       ``(3) Mortgage restructuring and rental assistance 
     sufficiency plans.--Notwithstanding paragraph (1), the owner 
     of the project may request, and the Secretary may consider, 
     mortgage restructuring and rental assistance sufficiency 
     plans to facilitate sales or transfers of properties under 
     this subtitle, subject to an approved plan of action under 
     the Emergency Low Income Housing Preservation Act of 1987 (12 
     U.S.C. 1715l note) or the Low-Income Housing Preservation and 
     Resident Homeownership Act of 1990 (12 U.S.C. 4101 et seq.), 
     which plans shall result in a sale or transfer of those 
     properties.''; and
       (2) in the last sentence of section 512(2), by inserting 
     ``, but does include a project described in section 
     524(e)(3)'' after ``section 524(e)''.
       (e) Addition of Significant Features.--Section 517 of the 
     Multifamily Assisted Housing Reform and Affordability Act of 
     1997 (42 U.S.C. 1437f note) is amended--
       (1) by striking subsection (c) (except that the striking of 
     such subsection may not be construed to have any effect on 
     the provisions of law amended by such subsection, as such 
     subsection was in effect before the date of the enactment of 
     this Act);
       (2) in subsection (b)--
       (A) in paragraph (7), by striking ``(7)'' and inserting 
     ``(1)''; and
       (B) by adding at the end the following new paragraph:
       ``(2) Addition of Significant Features.--
       ``(A) Authority.--An approved mortgage restructuring and 
     rental assistance sufficiency plan may require the 
     improvement of the project by the addition of significant 
     features that are not necessary for rehabilitation to the 
     standard provided under paragraph (1), such as air 
     conditioning, an elevator, and additional community space. 
     The Secretary shall establish guidelines regarding the 
     inclusion of requirements regarding such additional 
     significant features under such plans.
       ``(B) Funding.--Significant features added pursuant to an 
     approved mortgage restructuring and rental assistance 
     sufficiency plan may be paid from the funding sources 
     specified in the first sentence of paragraph (1)(A).
       ``(C) Limitation on owner contribution.--An owner of a 
     project may not be required to contribute from non-project 
     resources, toward the cost of any additional significant 
     features required pursuant to this paragraph, more than 25 
     percent of the amount of any assistance received for the 
     inclusion of such features.
       ``(D) Applicability.--This paragraph shall apply to all 
     eligible multifamily housing projects, except projects for 
     which the Secretary and the project owner executed a mortgage 
     restructuring and rental assistance sufficiency plan on or 
     before the date of the enactment of the Mark-to-Market 
     Extension Act of 2001.''; and
       (3) by inserting after paragraph (6) of subsection (b) the 
     following:
       ``(c) Rehabilitation Needs and Addition of Significant 
     Features.--''.
       (f) Look-Back Projects.--Section 512(2) of the Multifamily 
     Assisted Housing Reform and Affordability Act of 1997 (42 
     U.S.C. 1437f note) is amended by adding after the period

[[Page 17701]]

     at the end of the last sentence the following: 
     ``Notwithstanding any other provision of this title, the 
     Secretary may treat a project as an eligible multifamily 
     housing project for purposes of this title if (I) the project 
     is assisted pursuant to a contract for project-based 
     assistance under section 8 of the United States Housing Act 
     of 1937 renewed under section 524 of this Act, (II) the owner 
     consents to such treatment, and (III) the project met the 
     requirements of the first sentence of this paragraph for 
     eligibility as an eligible multifamily housing project before 
     the initial renewal of the contract under section 524.''.
       (g) Second Mortgages.--Section 517(a) of the Multifamily 
     Assisted Housing Reform and Affordability Act of 1997 (42 
     U.S.C. 1437f note) is amended--
       (1) in paragraph (1)(B), by striking ``no more than the'' 
     and inserting the following: ``not more than the greater of--
       ``(i) the full or partial payment of claim made under this 
     subtitle; or
       ``(ii) the''; and
       (2) in paragraph (5), by inserting ``of the second 
     mortgage, assign the second mortgage to the acquiring 
     organization or agency,'' after ``terms''.
       (h) Exemptions From Restructuring.--Section 514(h)(2) of 
     the Multifamily Assisted Housing Reform and Affordability Act 
     of 1997 (42 U.S.C. 1437f note) is amended by inserting before 
     the semicolon the following: ``, or refinanced pursuant to 
     section 811 of the American Homeownership and Economic 
     Opportunity Act of 2000 (12 U.S.C. 1701q note)''.

     SEC. 103. CONSISTENCY OF RENT LEVELS UNDER ENHANCED VOUCHER 
                   ASSISTANCE AND RENT RESTRUCTURINGS.

       Subtitle A of the Multifamily Assisted Housing Reform and 
     Affordability Act of 1997 (42 U.S.C. 1437f note) is amended 
     by adding at the end the following new section:

     ``SEC. 525. CONSISTENCY OF RENT LEVELS UNDER ENHANCED VOUCHER 
                   ASSISTANCE AND RENT RESTRUCTURINGS.

       ``(a) In General.--The Secretary shall examine the 
     standards and procedures for determining and establishing the 
     rent standards described under subsection (b). Pursuant to 
     such examination, the Secretary shall establish procedures 
     and guidelines that are designed to ensure that the amounts 
     determined by the various rent standards for the same 
     dwelling units are reasonably consistent and reflect rents 
     for comparable unassisted units in the same area as such 
     dwelling units.
       ``(b) Rent Standards.--The rent standards described in this 
     subsection are as follows:
       ``(1) Enhanced vouchers.--The payment standard for enhanced 
     voucher assistance under section 8(t) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437f(t)).
       ``(2) Mark-to-market.--The rents derived from comparable 
     properties, for purposes of section 514(g) of the Multifamily 
     Assisted Housing Reform and Affordability Act of 1997 (42 
     U.S.C. 1437f note).
       ``(3) Contract renewal.--The comparable market rents for 
     the market area, for purposes of section 524(a)(4) of the 
     Multifamily Assisted Housing Reform and Affordability Act of 
     1997 (42 U.S.C. 1437f note).''.

     SEC. 104. ELIGIBLE INCLUSIONS FOR RENEWAL RENTS OF PARTIALLY 
                   ASSISTED BUILDINGS.

       Section 524(a)(4)(C) of the Multifamily Assisted Housing 
     Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) 
     is amended by adding after the period at the end the 
     following: ``Notwithstanding any other provision of law, the 
     Secretary shall include in such budget-based cost increases 
     costs relating to the project as a whole (including costs 
     incurred with respect to units not covered by the contract 
     for assistance), but only (I) if inclusion of such costs is 
     requested by the owner or purchaser of the project, (II) if 
     inclusion of such costs will permit capital repairs to the 
     project or acquisition of the project by a nonprofit 
     organization, and (III) to the extent that inclusion of such 
     costs (or a portion thereof) complies with the requirement 
     under clause (ii).''.

     SEC. 105. ELIGIBILITY OF RESTRUCTURING PROJECTS FOR 
                   MISCELLANEOUS HOUSING INSURANCE.

       Section 223(a)(7) of the National Housing Act (12 U.S.C. 
     1715n(a)(7)) is amended--
       (1) by striking ``under this Act: Provided, That the 
     principal'' and inserting the following: ``under this Act, or 
     an existing mortgage held by the Secretary that is subject to 
     a mortgage restructuring and rental assistance sufficiency 
     plan pursuant to the Multifamily Assisted Housing Reform and 
     Affordability Act of 1997 (42 U.S.C. 1437f note), provided 
     that--
       ``(A) the principal'';
       (2) by striking ``except that (A)'' and inserting ``except 
     that (i)'';
       (3) by striking ``(B)'' and inserting ``(ii)'';
       (4) by striking ``(C)'' and inserting ``(iii)'';
       (5) by striking ``(D)'' and inserting ``(iv)'';
       (6) by striking ``: Provided further, That a mortgage'' and 
     inserting the following ``; and
       ``(B) a mortgage'';
       (7) by striking ``or'' at the end; and
       (8) by adding at the end the following new subparagraph:
       ``(C) a mortgage that is subject to a mortgage 
     restructuring and rental assistance sufficiency plan pursuant 
     to the Multifamily Assisted Housing Reform and Affordability 
     Act of 1997 (42 U.S.C. 1437f note) and is refinanced under 
     this paragraph may have a term of not more than 30 years; 
     or''.

     SEC. 106. TECHNICAL CORRECTIONS.

       (a) Exemptions From Restructuring.--
       (1) In general.--Section 514(h) of the Multifamily Assisted 
     Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f 
     note) is amended to read as if the amendment made by section 
     531(c) of Public Law 106-74 (113 Stat. 1116) were made to 
     ``Section 514(h)(1)'' instead of ``Section 514(h)''.
       (2) Retroactive effect.--The amendment made by paragraph 
     (1) of this subsection is deemed to have taken effect on the 
     date of the enactment of Public Law 106-74 (113 Stat. 1109).
       (b) Other.--The Multifamily Assisted Housing Reform and 
     Affordability Act of 1997 (42 U.S.C. 1437f note) is amended--
       (1) in section 511(a)(12), by striking ``this Act'' and 
     inserting ``this title'';
       (2) in section 513, by striking ``this Act'' each place 
     such term appears in subsections (a)(2)(I) and (b)(3) and 
     inserting ``this title'';
       (3) in section 514(f)(3)(B), by inserting ``Housing'' after 
     ``Multifamily'';
       (4) in section 515(c)(1)(B), by inserting ``or'' after the 
     semicolon;
       (5) in section 517(b)--
       (A) in each of paragraphs (1) through (6), by capitalizing 
     the first letter of the first word that follows the paragraph 
     heading;
       (B) in each of paragraphs (1) through (5), by striking the 
     semicolon at the end and inserting a period; and
       (C) in paragraph (6), by striking ``; and'' at the end and 
     inserting a period;
       (6) in section 520(b), by striking ``Banking and''; and
       (7) in section 573(d)(2), by striking ``Banking and''.

    TITLE II--OFFICE OF MULTIFAMILY HOUSING ASSISTANCE RESTRUCTURING

     SEC. 201. REAUTHORIZATION OF OFFICE AND EXTENSION OF PROGRAM.

       Section 579 of the Multifamily Assisted Housing Reform and 
     Affordability Act of 1997 (42 U.S.C. 1437f note) is amended--
       (1) by striking subsection (a) and inserting the following 
     new subsection:
       ``(a) Repeals.--
       ``(1) Mark-to-market program.--Subtitle A (except for 
     section 524) is repealed effective October 1, 2006.
       ``(2) OMHAR.--Subtitle D (except for this section) is 
     repealed effective October 1, 2004.'';
       (2) in subsection (b), by striking ``October 1, 2001'' and 
     inserting ``October 1, 2006'';
       (3) in subsection (c), by striking ``upon September 30, 
     2001'' and inserting ``at the end of September 30, 2004''; 
     and
       (4) by striking subsection (d) and inserting the following 
     new subsection:
       ``(d) Transfer of Authority.--Effective upon the repeal of 
     subtitle D under subsection (a)(2) of this section, all 
     authority and responsibilities to administer the program 
     under subtitle A are transferred to the Secretary.''.

     SEC. 202. APPOINTMENT OF DIRECTOR.

       (a) In General.--Section 572 of the Multifamily Assisted 
     Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f 
     note) is amended by striking subsection (a) and inserting the 
     following new subsection:
       ``(a) Appointment.--The Office shall be under the 
     management of a Director, who shall be appointed by the 
     President from among individuals who are citizens of the 
     United States and have a demonstrated understanding of 
     financing and mortgage restructuring for affordable 
     multifamily housing.''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall apply to the first Director of the Office of 
     Multifamily Housing Assistance Restructuring of the 
     Department of Housing and Urban Development appointed after 
     the date of the enactment of this Act, and any such Director 
     appointed thereafter.

     SEC. 203. VACANCY IN POSITION OF DIRECTOR.

       (a) In General.--Section 572 of the Multifamily Assisted 
     Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f 
     note) is amended by striking subsection (b) and inserting the 
     following new subsection:
       ``(b) Vacancy.--A vacancy in the position of Director shall 
     be filled by appointment in the manner provided under 
     subsection (a). The President shall make such an appointment 
     not later than 60 days after such position first becomes 
     vacant.''.
       (b) Applicability.--The amendment made by subsection (a) 
     shall apply to any vacancy in the position of Director of the 
     Office of Multifamily Housing Assistance Restructuring of the 
     Department of Housing and Urban Development which occurs or 
     exists after the date of the enactment of this Act.

     SEC. 204. OVERSIGHT BY FEDERAL HOUSING COMMISSIONER.

       (a) In General.--Section 578 of the Multifamily Assisted 
     Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f 
     note) is amended to read as follows:

     ``SEC. 578. OVERSIGHT BY FEDERAL HOUSING COMMISSIONER.

       ``All authority and responsibilities assigned under this 
     subtitle to the Secretary shall be carried out through the 
     Assistant Secretary of the Department of Housing and Urban 
     Development who is the Federal Housing Commissioner.''.
       (b) Report.--The second sentence of section 573(b) of the 
     Multifamily Assisted Housing Reform and Affordability Act of 
     1997 (42

[[Page 17702]]

     U.S.C. 1437f note) is amended by striking ``Secretary'' and 
     inserting ``Assistant Secretary of the Department of Housing 
     and Urban Development who is the Federal Housing 
     Commissioner''.

     SEC. 205. LIMITATION ON SUBSEQUENT EMPLOYMENT.

       Section 576 of the Multifamily Assisted Housing Reform and 
     Affordability Act of 1997 (42 U.S.C. 1437f note) is amended 
     by striking ``2-year period'' and inserting ``1-year 
     period''.

          TITLE III--MISCELLANEOUS HOUSING PROGRAM AMENDMENTS

     SEC. 301. EXTENSION OF CDBG PUBLIC SERVICES CAP EXCEPTION.

       Section 105(a)(8) of the Housing and Community Development 
     Act of 1974 (42 U.S.C. 5305(a)(8)) is amended by striking 
     ``through 2001'' and inserting ``through 2003''.

     SEC. 302. USE OF SECTION 8 ENHANCED VOUCHERS FOR PREPAYMENTS.

       Section 8(t)(2) of the United States Housing Act of 1937 
     (42 U.S.C. 1437f(t)(2) is amended by inserting after 
     ``insurance contract for the mortgage for such housing 
     project'' the following: ``(including any such mortgage 
     prepayment during fiscal year 1996 or a fiscal year 
     thereafter or any insurance contract voluntary termination 
     during fiscal year 1996 or a fiscal year thereafter)''.

     SEC. 303. PREPAYMENT AND REFINANCING OF LOANS FOR SECTION 202 
                   SUPPORTIVE HOUSING.

       (a) In General.--Section 811 of the American Homeownership 
     and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) 
     is amended by striking subsection (e).
       (b) Effectiveness Upon Date of Enactment.--The amendment 
     made by subsection (a) of this section shall take effect upon 
     the date of the enactment of this Act and the provisions of 
     section 811 of the American Homeownership and Economic 
     Opportunity Act of 2000 (12 U.S.C. 1701q note), as amended by 
     subsection (a) of this section, shall apply as so amended 
     upon such date of enactment, notwithstanding--
       (1) any authority of the Secretary of Housing and Urban 
     Development to issue regulations to implement or carry out 
     the amendments made by subsection (a) of this section or the 
     provisions of section 811 of the American Homeownership and 
     Economic Opportunity Act of 2000 (12 U.S.C. 1701q note); or
       (2) any failure of the Secretary of Housing and Urban 
     Development to issue any such regulations authorized.

     SEC. 304. TECHNICAL CORRECTION.

       (a) In General.--Section 101(a) of Public Law 100-77 (42 
     U.S.C. 11301 note) is amended to read as if the amendment 
     made by section 1 of Public Law 106-400 (114 Stat. 1675) were 
     made to ``Section 101'' instead of ``Section 1''.
       (b) Retroactive Effect.--The amendment made by subsection 
     (a) of this section is deemed to have taken effect 
     immediately after the enactment of Public Law 106-400 (114 
     Stat. 1675).

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Wisconsin (Mr. Green) and the gentlewoman from Indiana (Ms. Carson) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Wisconsin (Mr. Green).


                             General Leave

  Mr. GREEN of Wisconsin. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days within which to revise and extend 
their remarks and to include extraneous material on H.R. 2589, the bill 
now under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Wisconsin?
  There was no objection.
  Mr. GREEN of Wisconsin. Mr. Speaker, I yield myself such time as I 
may consume.
  The legislation we are considering here today is about affordable 
housing for low-income families and how to keep it affordable. The 
mark-to-market program and the Office of Multifamily Housing Assistance 
Restructuring, OMHAR, are both scheduled to terminate on September 30, 
2001. The legislation we are considering today represents a House-
Senate consensus. H.R. 2589 extends the Office of Multifamily Housing 
Assistance Restructuring through October 1, 2004, and reauthorizes the 
mark-to-market program through October 1, 2006.
  My colleagues should note, as a way of background, that in the late 
1970s and in the early 1980s, about 800,000 units in 8,500 multifamily 
housing projects were financed with mortgage insured by the Federal 
Housing Administration and supported by Section 8 housing assistance 
payment contracts. The Federal Government guaranteed that these 
projects would be built by insuring the mortgages and using Section 8 
contracts to guarantee that the rents would be high enough to pay off 
the mortgages. In most markets, these rents were above market levels. 
Typically, the mortgages for these multifamily dwellings had terms of 
40 years and the Section 8 contracts had terms of 20 years.
  By the late 1990s, the 20-year Section 8 contracts started to expire. 
Congress started renewing the Section 8 contracts for 1 year at market 
rents. In some areas, the market rents were sufficient to support the 
property, but in other areas, market rents were not enough to support 
the mortgage payments. Consequently, those properties were in danger of 
defaulting and costing the Federal taxpayer billions of dollars.
  In 1997, after a careful review of the insured multifamily portfolio 
of the FHA, Congress realized that if substantial changes to the 
Section 8 project-based program were not made, the renewals of expiring 
contracts for Section 8 assistance would consume an increasingly larger 
share of HUD's future budgets. In fact, HUD estimated that if no action 
were taken by 2007, the annual cost of renewing project-based Section 8 
contracts would rise to approximately $7 billion, or about one-third of 
HUD's entire budget.
  In an effort to address this growing problem, Congress enacted the 
Multifamily Assisted Housing Reform and Affordability Act. The goal of 
that 1997 legislation was twofold: First and foremost, to preserve 
affordable low-income rental housing; and, second, to reduce the cost 
to the Federal Government of rental assistant payments.
  Specifically, the legislation established OMHAR, the Office of 
Multifamily Housing Assistance, and the mark-to-market program for 
restructuring section 8 based properties with FHA-insured mortgages. 
The mark-to-market program provides the tools necessary for HUD to 
restructure the insured Section 8 multifamily housing projects by 
lowering their rents to market levels when their current Section 8 
contracts expires, and also by restructuring their mortgage debt, if 
such action is necessary, for the property to continue to have a 
positive cash flow.
  In addition to extending OMHAR and the authority of the mark-to-
market program, H.R. 2589 simplifies issues of jurisdiction and 
coordination by requiring the program director to report directly to 
the Federal Housing Commissioner instead of the Secretary of HUD. At 
present, the Office of Housing is responsible for Section 8 subsidy 
payments and the management of insurance contracts while at the same 
time OMHAR is responsible for restructuring them for the future. The 
same projects are under the jurisdiction of two separate equal offices, 
each reporting to the Secretary simultaneously. Having OMHAR report to 
the Commissioner will simplify these issues of coordination and 
jurisdiction.
  Mr. Speaker, I will be submitting for the record a section-by-section 
analysis of the bill and also several support letters for this 
legislation, letters from the National Association of Home Builders, 
the National Leased Housing Association, the National Housing Trust, 
and the National Affordable Housing Management Association.

                              {time}  1545

  Mr. Speaker, this legislation is supported by the National Leased 
Housing Association, the National Apartment Association, the National 
Multi-Housing Council, the National Affordable Housing Management 
Association, the National Association of Realtors, the Institute of 
Real Estate Management, the Mortgage Bankers Association, the Council 
for Affordable and Rural Housing, the Coalition for Affordable Housing 
Preservation, the Appraisal Institute, the National Housing Trust, and 
the National Association of Home Builders.
  Mr. Speaker, with all of that support, I urge my colleagues to 
support this legislation, and I urge its adoption.
  Mr. Speaker, I submit for the Record the letters and section by 
section analysis I referred to earlier.

[[Page 17703]]

           National Association of Home Builders, Legislative and 
                                              Political Relations,
                               Washington, DC, September 24, 2001.
     Hon. Marge Roukema,
     Chair, House of Representatives Subcommittee on Housing and 
         Community Opportunity, Rayburn House Office Building, 
         Washington, DC.
       Dear Chairwoman Roukema: On behalf of the 205,000 members 
     of the National Association of Home Builders, I write to 
     express our support for H.R. 2589, the Office of Multifamily 
     Housing Assistance Restructuring Act of 2001.''
       Timely passage of the reauthorizing legislation is critical 
     to the continuation of the Department of Housing and Urban 
     Development's (HUD) authority to restructure mortgages on 
     multifamily properties insured by FHA and enhanced by Section 
     8 rental assistance. This program ensures the continued 
     viability of affordable multifamily properties and ultimately 
     saves the federal government money. Because the program is 
     due to expire on October 1, 2001, I respectfully request your 
     support for swift passage of H.R. 2589 which extends the 
     program for another five years.
       NAHB urges you to support passage of H.R. 2589, as amended. 
     Thank you in advance for your consideration of views 
     important to the housing industry.
           Sincerely,
                                           Katherine E. Doddridge,
     Acting Senior Staff Vice President.
                                  ____

                                                   National Leased


                                          Housing Association,

                               Washington, DC, September 24, 2001.
     Hon. Marge Roukema,
     Chair, Subcommittee on Housing & Community Opportunity, 
         Rayburn House Office Building, Washington, DC.
       Dear Chairwomen Roukema: I am writing on behalf of the 
     National Leased Housing Association (NLHA) in support of H.R. 
     2589 as revised. The bill includes the necessary 
     reauthorization of the mark to market program while making a 
     number of non-controversial revisions that will improve 
     processing under the program.
       The bill will present a disruption of mortgages currently 
     in the OMHAR pipeline and will provide a measure of stability 
     for future properties that will benefit from the technical 
     provisions impacting contributions to rehabilitation, length 
     of second mortgages, and the eligibility of HUD-held loans 
     for certain mortgage processing. The bill also ensures the 
     adequate distribution of technical assistance funding and 
     corrects several inconsistent provisions in current law.
       We are grateful for your leadership in crafting a 
     compromise with the Senate to eliminate the controversial 
     provisions in S. 1254. NLHA recently joined with a number of 
     industry groups to express our concern with several 
     provisions contained in the original S. 1254, including the 
     National Apartment Association, the National Multi Housing 
     Council, the National Association of Realtors, the Institute 
     for Real Estate Management, the Mortgage Bankers Association, 
     the Council for Affordable and Rural Housing, the National 
     Affordable Housing Management Association, the Appraisal 
     Institute and the Coalition for Affordable Housing 
     Preservation. We appreciate your efforts to address and 
     mitigate those concerns.
       As always, we are thankful for your interest in promoting 
     the preservation of the affordable housing stock.
           Sincerely,
                                                   Denise B. Muba,
     Executive Director.
                                  ____



                                       National Housing Trust,

                               Washington, DC, September 24, 2001.
     Re: Extension of Mark to Market Authorization; HR 2589

     Congresswoman Marge Roukema,
     Chair, House Financial Services Subcommittee, Housing and 
         Community Opportunity, Rayburn House Office Building, 
         Washington, DC.
       Dear Congresswoman Roukema: Formed in 1986, the National 
     Housing Trust is a national nonprofit organization, located 
     in Washington, D.C. The Trust is dedicated to the 
     preservation of existing affordable housing. Its board of 
     directors is comprised of nationally recognized authorities 
     and practitioners in the housing and community development 
     field.
       The Trust is a multi-faceted organization, with expertise 
     in the financial, regulatory, tax and legal aspects of 
     existing, federal assisted, multifamily affordable housing. 
     It performs a path-finding role in the area through a unique 
     mix of public policy development, technical assistance and 
     transactional activities.
       The Trust plays a leading role in providing information and 
     technical assistance to various stakeholders concerning 
     various HUD proposals which concern the mortgage 
     restructuring and subsidy renewal for nearly 1.3 million 
     units of federally assisted and insured housing stock. The 
     Trust has testified numerous times before Congress on this 
     issue, developed policy papers concerning various proposals 
     and developed a unique database for these apartments, noting 
     term of contract, time of expiration, and the relationship of 
     the current contract rent level to local rents. The Trust 
     also trains and helps explain to residents their rights under 
     HUD programs, including HUD's ``Mark to Market'' program.
       The September 30, 2001 sunset date for the Mark to Market 
     legislative authority provided Congress a unique opportunity 
     to both review the existing program, analyze its progress and 
     remedy any perceived problems with the current program. In 
     our view, HR 2589 is a significant bipartisan response to the 
     need for continued Mark to Market legislation.
       The program of marking HUD rents down to comparable market 
     levels has been successful at both saving the taxpayers 
     unnecessary expense and reducing overleveraged HUD 
     properties. At the same time, experience has shown that many 
     Mark to Market assets provide necessary shelter for very low 
     income American families who would have no other choice if 
     the housing was not available to them. We are currently at 
     mid point in the program's progress and an extension is 
     obviously necessary.
       HR 2589 is to be particularly commended because it not only 
     extends the program but also rectifies some technical flaws 
     that will make the program work better in the future. For 
     example, apart from the very important procedural changes and 
     extensions of the program itself, without any additional 
     material cost to the American taxpayer:
       HR 2589 makes plain that the HUD Secretary shall provide 
     already statutorily provided funds for technical assistance 
     to residents and nonprofits who are interested in Mark to 
     Market housing and that funding for these programs should 
     flow to those in entities on an uninterrupted basis.
       As originally intended by Congress, the HUD Secretary is 
     given the option to provide sufficient ``Exception Rents'' 
     options for properties where the Secretary determines that 
     the housing needs of residents and the community cannot be 
     adequately addressed through implementation of the rent 
     limitations in the statute.
       HR 2589 makes a technical change permitting subordinate 
     debt to be assumable by a nonprofit organization interested 
     in preserving the housing as affordable;
       HR 2589 permits HUD to consider for Mark to Market certain 
     properties for sales to nonprofits and tenant groups which 
     had previously not been permitted in the program;
       HR 2589 requires the Secretary to include, for partially 
     assisted projects owned by nonprofit organizations, budget 
     based costs related to the project as a whole, including 
     costs incurred with respect to units not covered by the 
     contract for assistance; and
       HR 2589 permits Section 223(a)(7), a HUD insurance program 
     ideally suited for Mark to Market projects, more useful for 
     Mark to Market financing.
       Thank you for your leadership on this important issue.
           Very truly yours,
                                                  Michael Bodaken,
     Executive Director.
                                  ____

                                       National Affordable Housing


                                       Management Association,

                               Alexandria, VA, September 24, 2001.
     Hon. Michael G. Oxley,
     Chairman, Committee on Financial Services,
     House of Representatives,
     Washington, DC.
       Dear Chairman Oxley: NAHMA is pleased to express its 
     support for H.R. 2589, the Mark-to-Market Extension Act of 
     2001.
       An effective mortgage restructuring program can meet the 
     dual objectives of reducing the cost of section 8 assistance 
     at the time of contract renewal and preserving the existing 
     supply of housing affordable by lower income families. 
     Although we have been disappointed at times by the slow 
     implementation of the mark-to-market program and by some of 
     its procedural shortcomings, we believe that reauthorization 
     of the program presents the best opportunity for an orderly 
     restructuring process that protects the interests of owners, 
     residents, communities and the public.
       We want to thank you and your staff for considering the 
     views of the multifamily housing industry in the development 
     of this latest version of H.R. 2589. As currently drafted the 
     bill makes a number of important improvements in the mark-to-
     market program and its administration. We believe that H.R. 
     2589 will increase the confidence of all stakeholders in the 
     mark-to-market process.
       Again, NAHMA thanks you for your leadership on this issue.
           Sincerely,
                                                 George C. Caruso,
     Executive Director.
                                  ____


           H.R. 2589 ``Mark-to-Market Extension Act of 2001''


         sec. 1 title--``mark-to-market extension act of 2001''

                            sec. 2. purposes

       The purposes of this Act are: (1) to continue the progress 
     of the Multifamily Assisted Housing Reform and Affordability 
     Act of 1997; (2) to ensure that properties that undergo 
     mortgage restructurings are rehabilitated to a standard 
     allowing them to meet long-term affordability requirements, 
     and that they have adequate reserves for long-term 
     commitments; (3) to ensure that participating properties are 
     operated efficiently and that operating expenses are adequate 
     to maintain the properties in good physical and financial 
     condition; (4) to ensure that properties that undergo rent 
     restructuring have adequate resources to maintain the 
     properties in good condition; (5) to ensure that

[[Page 17704]]

     OMHAR continues to focus on the portfolio of properties 
     eligible for restructuring; (6) that the condition of these 
     properties is tracked on an ongoing basis; (7) to ensure that 
     tenant groups, nonprofit organizations, and public entities 
     continue to have the resources necessary to build the 
     capacity of tenant organizations; (8) to encourage OMHAR to 
     continue to provide participating administrative entities 
     with the flexibility to respond to specific problems while 
     ensuring consistent outcomes around the country.


                         sec. 3. effective date

       Except for sections 106(a)(2) and 303(b), this Act and its 
     amendments take effect on the earlier of the date of 
     enactment or September 30, 2001.

Title I--Multifamily Housing Mortgage and Assistance Restructuring and 
                       Section 8 Contract Renewal


                         Sec. 101. Definitions

       This section makes some technical changes to section 512 of 
     the Multifamily Assisted Housing reform and Affordability Act 
     of 1997 (42 U.S.C. 1437f) designating ``office'' as OMHAR.


              sec. 102. Mark-To-Market Program Amendments

       (1) This section amends 514(f)(3) of the Act by requiring 
     HUD to give restructuring grants to tenant groups, tenant-
     endorsed community-based nonprofits, and public entities for 
     tenant services in projects undergoing restructuring. These 
     grants are available over a two-year period.
       514(g)(2)(A) of the Act--Exception Rents--is amended by 
     striking ``restructured mortgages in any fiscal year'' and 
     inserting ``portfolio restructuring agreements''.
       516(d) is amended to require section 8 tenants, living in 
     projects that will no longer receive assistance, to be 
     notified at the time of a rejection that a project will no 
     longer participate in the program, and subject to the 
     availability of appropriations, tenants of the project will 
     be given enhanced vouchers and aided with reasonable moving 
     expenses.
       524(e) is amended by adding that if the owner of a property 
     assisted under the Emergency Low Income Housing Preservation 
     and Resident Homeowenership Act of 1990, requests HUD to 
     participate in the restructuring program in order to 
     facilitate the sale or transfer of the property.
       517(b)--Restructuring Tools--adds that if a participating 
     administrative entity (PAE) determines that major additions 
     (air-conditioning, elevators, etc.) are required for a 
     property in the mortgage restructuring program, the owner 
     contribution may not exceed 25% of the amount of 
     rehabilitation assistance for this purpose. This applies to 
     all eligible multifamily projects except those that worked 
     out a restructuring plan with HUD before the enactment of 
     this Act. All owners are still required to obtain at least 
     25% of the amount of rehabilitation assistance received from 
     non-project sources for regular rehabilitation concerns.
       512(2)--Look-Back Projects--allows the Secretary to treat a 
     project as an eligible multifamily housing project if the 
     project is assisted pursuant to a contract for project-based 
     assistance under 8 of the United States Housing Act of 1937 
     and renewed under section 524 of this act, if the owner 
     consents and the project meets the requirements in this 
     section for eligibility. Essentially, this provision gives 
     the Secretary authority to ``look back'' and bring properties 
     into the Mark-to-Market (MTM) program after they have already 
     gone through an initial rent comparability review at the 
     discretion of the owner.
       517(a)--Second Mortgages--permits second mortgages on 
     participating projects to be resized to not more than the 
     greater of the full or partial claim made under this program 
     or the difference between the first mortgage. This provision 
     also allows the Secretary to assign the second mortgage to an 
     organization, such as a non-profit corporation.
       514(h)(2)--Exemptions From Restructuring--amends section 
     811 of the American Homeownership and Economic Opportunity 
     Act of 2000 (12 U.S.C. 1701q) to exempt elderly properties 
     from restructuring.


Sec. 103. Consistency of Enhanced Voucher Assistance and Mark-to-Market 
                                 Rents

       Requires the Secretary to establish procedures and 
     guidelines that ensure that rent payment standards for 
     enhanced voucher assistance, mark to market and contract 
     renewal are consistent.


 Sec. 104. Eligible Inclusions For Renewal Rents of Partially Assisted 
                               Buildings

       Amends section 524(a)(4)(C) to require the Secretary to 
     approve rents under the section 8 contract to cover budget-
     based cost increases for the project as a whole, including 
     costs incurred with respect to units not covered by the 
     contract for assistance in order to permit capital repairs or 
     acquisition by a nonprofit owner or purchaser.


   Sec. 105. Eligibility of Restructuring Projects for Miscellaneous 
                           Housing Insurance

       Section 223(a)(7) of the National Housing Act (12 U.S.C. 
     1715n(a)(7)) is amended by including properties undergoing 
     restructuring in FHA's streamlined refinancing program, and 
     permits restructuring properties to have a refinance term of 
     up to 30 years.


                    Sec. 106. Technical Corrections

       This section makes technical corrections to the Multifamily 
     Assisted Housing Reform and Affordability Act of 1997 (42 
     U.S.C. 1437f note).

    Title II--Office of Multifamily Housing Assistance Restructuring


      Sec. 201. Reauthorization of Office and Extension of Program

       This section extends the Office of Multifamily Housing 
     Assistance and Restructuring (OMHAR) for three years and 
     restructuring authority for an additional two years.
       Section 579 of the Multifamily Assisted Housing Reform and 
     Affordability Act of 1997 is amended by repealing Subtitle A, 
     the Mark-to-Market program, (except for section 524) 
     effective October 1, 2006. Subtitle D, OMHAR, is repealed 
     effective October 1, 2004 (except for this section).
       Repealing Subtitle A in 2006 terminates HUD's authority to 
     restructure mortgages after 5 years, though excluding section 
     524 allows HUD to continue to renew section 8 contracts 
     indefinitely. Repealing Subtitle D in 2004 terminates OMHAR 
     after 3 years.


                   sec. 202. appointment of director

       The Office shall be under the management of a Director, who 
     shall be appointed by the President. The amendment made by 
     subsection (a) shall apply to the first Director of OMHAR 
     appointed after the date of enactment.


               sec. 203. vacancy in position of director

       Section 572 is amended to permit the President to appoint a 
     Director of OMHAR within 60 days after the position becomes 
     vacant.


          sec. 204. oversight by federal housing commissioner

       Section 578 is amended by placing oversight authority and 
     responsibilities for OMHAR with the Federal Housing 
     Commissioner.
       Section 573(b) is amended by requiring the Director of 
     OMHAR to report semi-annually to the Federal Housing 
     Commissioner regarding his activities, actions and 
     determinations, rather than to the Secretary of HUD.


             sec. 205. limitation on subsequent employment

       Section 576 is amended by changing the limitation on 
     subsequent employment from 2 years to 1 year (anti-conflict 
     of interest provision).

          Title III--Miscellaneous Housing Program Amendments


       sec. 301. extension of cdbg public services cap exception

       Section 105(a)(8) of the Housing and Community Development 
     Act of 1974 (42 U.S.C 5305(a)(8)) is amended by striking 
     ``through 2001'' and inserting ``through 2003''.


      sec. 302. use of section 8 enhanced vouchers for prepayments

       Section 8(t)(2) of the U.S. Housing Act of 1937 (42 U.S.C. 
     1437f(t)(2)) is amended to provide a technical correction 
     allowing residents of developments, where the owner prepaid 
     in FY 1996, to be eligible for enhanced vouchers.


     sec. 303. prepayment and refinancing of loans for section 202 
                           supportive housing

       Section 811 of the American Homeownership and Economic 
     Opportunity Act of 2000 (12 U.S.C. 1701q note) makes 
     technical corrections to allow the program to proceed without 
     advance appropriations and make effective immediately 
     notwithstanding any delay in issuing HUD regulations.


                     sec. 304. technical correction

       This section makes technical corrections to the McKinney--
     Vento Homeless Assistance Act (42 U.S.C. 11301).

  Mr. Speaker, I reserve the balance of my time.
  Ms. CARSON of Indiana. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, I rise in support of this bipartisan legislation which 
extends HUD's authority to reduce above-market rents on expiring 
section 8 projects and to restructure federally insured mortgages on 
these properties which the lower rents can no longer support.
  The bill before us differs somewhat from the bill passed by voice 
vote in the Committee on Financial Services in July. However, the 
changes represent informal bipartisan, bicameral discussions that have 
taken place over the last few months. The final product is a good 
consensus bill with bipartisan support; and, certainly, therefore, I 
would urge my colleagues to adopt it.
  H.R. 2589 extends for 5 years HUD's authority to conduct ``mark-to-
market'' activities and extends for three years the Office of Multi-
Family Housing Assistance Restructuring also known as OMHAR. This 
extends OMHAR's authority to continue the carry out mark-to-market 
activities. The purpose of market-to-markets is to reduce the level of 
project based section 8 rental assistance for affordable housing 
projects to rent levels commensurate with local market rents.
  The end result is that this process saves money for the Federal tax 
payers

[[Page 17705]]

by reducing our section 8 expenditures. However, the statutory 
authority for mark-to-market activities and for OMHAR is set to expire 
at the end of this month. According to the GAO, 1,588 properties have 
entered the mark-to-market program but only 500 of these properties 
have completed rent reductions. Thus, over 1,000 properties have yet to 
have their rents reduced. As more contracts expire, there will be 
additional properties that need to go through rent restructuring.
  Therefore, Mr. Speaker, it is essential to extend the program at this 
time. I would note that this legislation is estimated to save over $300 
million through the reduction of rents. I would also note that since 
this bill saves money, there is a reasonable possibility that it will 
later be attached to the VA/HUD appropriations conference report in 
order to receive a credit from the savings from this bill. If that 
occurs, we would urge appropriators to reinvest these savings in 
affordable housing programs instead of being diverted to other programs 
as is often the case.
  With respect to the specific provisions of the bill, we have struck a 
balance between giving OMHAR the tools it needs while retaining 
accountability. We have also included a number of good provisions to 
further housing affordability including providing technical assistance 
to tenant groups and increasing flexibility for nonprofits to operate.
  So in conclusion of my remarks, Mr. Speaker, I am heartened by the 
bipartisan way we have developed the first major piece of housing 
legislation in this Congress. I am urging a ``yes'' vote.
  Mr. Speaker, I yield such time as he may consume to the gentleman 
from Massachusetts (Mr. Frank), a very distinguished, knowledgable, 
articulate and dynamic friend of mine.
  Mr. FRANK. Mr. Speaker, I thank the gentlewoman for yielding me this 
time. I am currently in the Committee on the Judiciary having hearings 
on the important question of the anti-terrorism legislation. The 
gentlewoman from Indiana (Ms. Carson) graciously agreed to come down 
and has done a very good job of explaining the bill.
  I simply want to note that the gentlewoman is correct. This is 
bipartisan. It is bicameral. We have worked it out in conjunction with 
the other party. It is important to note what I think is a duality of 
these issues. When it comes to how best to use existing resources to 
preserve housing, we are able to work together.
  There continues to be differences between the parties on how much we 
should be putting in additional resources for housing. But once we have 
come to an agreement by whatever process as to what resources are 
there, I am very pleased we have been able to work in agreement because 
I think we are committed to the principle that for the Federal 
Government to have put money into subsidized housing, to have invited 
people to come in and live there, and then to allow people's economics 
to drive them out of what have become their homes is simply 
unacceptable.
  We need to have this ongoing commitment to do this. This is part of 
that ongoing commitment. It shows we can make adjustments that will 
save government money as well as require in other instances, not in 
this bill, increases. So I am grateful for this. I do note it, but I 
note that it does not do away from what I believe and I know what the 
gentlewoman from Indiana (Ms. Carson) believes, is the need to put 
additional resources in this very rich country into the area of 
housing.
  Let me ask the indulgence to say because I know the other bill will 
be coming up, the one on the Housing Commission. I also want to express 
my gratitude to the gentleman from New York (Mr. Walsh), the chairman 
of the Subcommittee on VA, HUD and Independent Agencies of the 
Committee on Appropriations because he was helpful in working that out. 
I am glad we are able to work out the extension and the appropriate 
staffing.
  With that, I will take my leave and let us be guided by the 
gentlewoman from Indiana; and I will go back to the hearing of the 
Committee on the Judiciary.
  Mr. OXLEY. Mr. Speaker, I rise in support of H.R. 2589--the Mark-to-
Market Extension Act of 2001.
  The Committee on Financial Services approved unanimously this 
legislation on July 25, 2001 and reported [House Report 107-196] to the 
House on September 5, 2001. The Senate Committee on Banking, Housing 
and Urban Affairs considered a similar bill on August 1, 2001.
  H.R. 2589 will extend authorization of the Office of Multifamily 
Housing Assistance Restructuring, also known as OMHAR, which is 
currently a separate office within the Department of Housing and Urban 
Development (HUD). The authority would extend by three years the office 
through FY 2004 and extend the Secretary's authority to provide mark-
to-market services through FY 2006. We believe that HUD will be 
provided the special tools necessary to restructure developments that 
receive both project-based rental section 8 payments and Federal 
Housing Administration mortgage insurance.
  As I understand, the original Act was enacted in 1997 and was 
designed to curtail exploding section 8 rental costs for units renting 
at far above the prevailing market rates. Without this Act, section 8 
contract renewals could top $7 billion dollars and account for as much 
as one-third of HUD's future budgets. Because the authorization for 
this office sunsets September 30th of this year, it is necessary that 
this bill pass the House today.
  The Committee majority and minority staff worked with our Senate 
counterparts to agree on a legislative solution. Moreover, this 
Committee worked with the Administration and the Department of Housing 
and Urban Development to accommodate their concerns. According to the 
Congressional Budget Office, this compromise language will result in 
savings of over $307 million dollars.
  Mr. Speaker, this is a good bill and deserves favorable House 
consideration. Housing Subcommittee Chairwoman Marge Roukema and 
Ranking Member Barney Frank are to be commended for their leadership on 
this issue.
  Mr. GREEN of Wisconsin. Mr. Speaker, I yield back the balance of my 
time.
  Ms. CARSON of Indiana. Mr. Speaker, I have no further requests for 
time, and I yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Miller of Florida). The question is on 
the motion offered by the gentleman from Wisconsin (Mr. Green) that the 
House suspend the rules and pass the bill, H.R. 2589, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Mr. GREEN of Wisconsin. Mr. Speaker, on that I demand the yeas and 
nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

                          ____________________