Rural Housing Preservation Act of 2016

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rural Housing Preservation Act of 
2016''.

SEC. 2. AVAILABILITY OF RURAL HOUSING VOUCHERS FOR TENANTS IN PROJECTS 
              WITH MATURING LOANS.

    (a) In General.--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) Rural Vouchers for Tenants of Projects With Prepaid or 
Maturing Loans.--
            ``(1) Authority.--Subject to the availability of amounts 
        provided in appropriation Acts and to paragraph (3), the 
        Secretary shall provide rural housing vouchers under this 
        section, in the amount provided under this section, to any low-
        income household (including those not receiving rental 
        assistance) residing in a property financed with a loan made or 
        insured under section 515 (42 U.S.C. 1485) which has been 
        prepaid, or which has matured, after September 30, 2005.
            ``(2) Administration and subsidies.--The Secretary shall, 
        to the maximum extent practicable, administer and operate such 
        vouchers with current regulations and administrative guidance 
        applicable to enhanced vouchers under section 8(t) of the 
        United States Housing Act of 1937 (42 U.S.C. 1437f(t)) and 
        administered by the Secretary of Housing and Urban Development. 
        The amount of rental assistance provided on behalf of holders 
        of such vouchers shall be the same as that provided on behalf 
        of holders of enhanced vouchers under such section 8(t).
            ``(3) Termination of assistance.--The Secretary shall 
        terminate the provision of voucher assistance pursuant to this 
        subsection, with respect to a property, if--
                    ``(A) at any time, a new loan is made or insured 
                under section 515 for the property; and
                    ``(B) as a result of such loan, rental assistance 
                is provided on behalf of the voucher holder in an 
                amount comparable to the rental assistance provided on 
                behalf of the voucher holder under the voucher 
                program.''.
    (b) Requirement for Section 515 Projects To Accept Vouchers.--
Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is amended by 
adding at the end the following new subsection:
    ``(bb) Requirement To Accept Rural Housing Vouchers.--No owner of a 
property financed with a loan made or insured under this section, 
whether such loan is outstanding or fully paid, may refuse to lease an 
available dwelling unit in the property to a household on behalf of 
whom voucher assistance is provided under section 542 (42 U.S.C. 
1490r), and to enter into a voucher contract respecting such unit, a 
proximate cause of which is the status of such current or prospective 
tenant as a holder of such voucher.''.

SEC. 3. DECOUPLING RENTAL ASSISTANCE FROM MATURING RURAL HOUSING LOANS.

    Paragraph (2) of section 521(a) of the Housing Act of 1949 (42 
U.S.C. 1490a(a)(2)) is amended by adding at the end the following new 
subparagraph:
                    ``(F) Rental assistance for projects with matured 
                loans.--
                            ``(i) Authority.--To continue to make 
                        decent, safe and sanitary housing available to 
                        low-income occupants of projects originally 
                        financed with a loan made or insured under 
                        section 515 that has matured on or after the 
                        date of the enactment of this subparagraph, and 
                        at rental rates commensurate to income as 
                        specified in subparagraph (A) of this 
                        paragraph, the Secretary may, subject to the 
                        availability of amounts provided in 
                        appropriation Acts, contract to make, make, and 
                        renew annual assistance payments pursuant to 
                        this subparagraph to the owners of such 
                        projects.
                            ``(ii) Offer.--The Secretary shall ensure 
                        that an offer to provide a contract for 
                        assistance payments pursuant to this 
                        subparagraph shall be extended to all owners of 
                        projects described in clause (i) not later than 
                        24 months before the maturation of the loan 
                        (except in the case of loans maturing after the 
                        date that is 24 months before the date of the 
                        enactment of this subparagraph).
                            ``(iii) Terms.--Each contract for 
                        assistance payments pursuant to this 
                        subparagraph shall--
                                    ``(I) have a term of 20 years and 
                                be subject to availability of amounts 
                                provided in annual appropriations Acts;
                                    ``(II) cover all new and existing 
                                households residing in the project, 
                                regardless of whether or not they were 
                                previously assisted under the rental 
                                assistance program authorized under 
                                subparagraph (A);
                                    ``(III) be recorded at such local 
                                real property recording office as is 
                                prescribed by the State in which the 
                                project is located;
                                    ``(IV) bind the owner of the 
                                project and the owner's successors to 
                                continue to operate the project in 
                                accordance with such agreements;
                                    ``(V) require the owner (and such 
                                successors) to agree to continue to 
                                operate the projects as if it were 
                                subject to an existing loan under 
                                section 515;
                                    ``(VI) extend to residents of the 
                                project all the rights that at the time 
                                such contract is entered into are 
                                extended to residents of projects 
                                subject to an existing loan under 
                                section 515; and
                                    ``(VII) require the owner (and such 
                                successors) to maintain the assisted 
                                housing as decent, safe, and sanitary 
                                housing.
                            ``(iv) Actual market rentals.--
                                    ``(I) In general.--A contract for 
                                assistance provided pursuant to this 
                                subparagraph for a project shall 
                                provide assistance to the owner based 
                                on an initial reasonable operating 
                                budget the rents for which do not 
                                exceed such actual market rental rates 
                                for the area in which the project is 
                                located, as are established by the 
                                Secretary.
                                    ``(II) Adjustment; renewal.--The 
                                Secretary shall adjust the actual 
                                market rental rates used for purposes 
                                of this clause annually.
                            ``(v) Renewal; adjustment.--In providing 
                        assistance pursuant to this subparagraph, the 
                        Secretary shall require the owner of the 
                        project to renew the assistance provided to 
                        each household not less frequently than 
                        annually, in accordance with the provisions of 
                        subparagraph (A), and shall adjust the amount 
                        of assistance provided to a household at any 
                        other time upon a decrease in the household's 
                        monthly income of $100 or more.
                            ``(vi) Administration.--Rental assistance 
                        contracts authorized by this subparagraph 
                        shall, except as otherwise provided in this 
                        subparagraph, be administered by the Secretary 
                        in the same manner as rental assistance 
                        contracts for projects having existing loans 
                        made or insured under section 515 or existing 
                        loans and grants made under sections 514 and 
                        516.''.

SEC. 4. UNIFORM STANDARDS FOR TRANSFERS OF SECTION 515 PROPERTIES USING 
              LOW-INCOME TAX CREDITS.

    Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is amended 
by adding at the end the following new subsection:
    ``(bb) Requirements for Transfers of Properties Involving Low-
Income Housing Tax Credits.--The Secretary shall establish, without 
exception, uniform requirements, terms, and conditions for any sale or 
transfer of a property financed with a loan under this section to any 
entity, including a nonprofit organization, that is seeking to acquire 
such property with amounts authorized under this section and any low-
income housing tax credit under section 42 of the Internal Revenue Code 
of 1986.''.

SEC. 5. RURAL MULTIFAMILY HOUSING REVITALIZATION PROGRAM.

    Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is amended 
by adding at the end the following new subsection:
    ``(bb) Multifamily Housing Revitalization Program.--
            ``(1) In general.--The Secretary may establish a 
        Multifamily Housing Revitalization Program for the preservation 
        and revitalization of multifamily housing projects funded with 
        loans made available pursuant to this section and sections 514 
        and 516 to ensure that such projects have sufficient resources 
        to provide safe and affordable housing for low-income residents 
        and farm laborers.
            ``(2) Options.--In carrying out paragraph (1), the 
        Secretary may--
                    ``(A) with respect to such loans--
                            ``(i) reduce or eliminate interest;
                            ``(ii) defer loan payments; and
                            ``(iii) subordinate, reduce, or reamortize 
                        loan debt; and
                    ``(B) provide other financial assistance, 
                including--
                            ``(i) advances; and
                            ``(ii) payments and incentives (including 
                        the ability of owners to obtain reasonable 
                        returns on investment).
            ``(3) Requirements.--In exchange for assistance provided 
        pursuant to this subsection, the Secretary shall enter into 
        with the property owner a restrictive use agreement to ensure 
        that the property remains subject to low-income use 
        restrictions for an additional period of time consistent with 
        the terms of the restructuring.
            ``(4) Use of funds for rural housing vouchers.--
                    ``(A) Authority.--If the Secretary determines that 
                additional funds for vouchers under the rural housing 
                voucher program under section 542 (42 U.S.C. 1490r) are 
                needed, funds for the revitalization program under this 
                subsection may be used for such vouchers for any low-
                income household (including those not receiving rental 
                assistance) residing in a property financed with a loan 
                under this section that has been prepaid after 
                September 30, 2005.
                    ``(B) Amount.--Notwithstanding section 542, the 
                amount of a voucher provided pursuant to this paragraph 
                shall be the difference between comparable market rent 
                for the unit and the tenant-paid rent for such unit.
                    ``(C) Availability.--Funds made available for 
                vouchers pursuant to this paragraph shall be subject to 
                the availability of annual appropriations.
                    ``(D) Administration.--The Secretary shall, to the 
                maximum extent practicable, administer vouchers 
                provided pursuant to this paragraph with current 
                regulations and administrative guidance applicable to 
                housing vouchers under section 8 of the United States 
                Housing Act of 1937 (42 U.S.C. 1437f) administered by 
                the Secretary of Housing and Urban Development.''.

SEC. 6. REGULATIONS.

    The Secretary of Agriculture shall issue regulations necessary to 
carry out the amendments made by this Act not later than the expiration 
of the 120-day period beginning on the date of the enactment of this 
Act.

Summary: Rural Housing Preservation Act of 2016 This bill amends the Housing Act of 1949 to direct the Department of Agriculture (USDA) to extend rural housing vouchers to any low-income household residing in a property financed with a loan made or insured for housing and related facilities for elderly or other low-income persons and families which has been prepaid, or which has matured, after September 30, 2005. No owner of a property financed with such a loan, whether outstanding or fully paid, may refuse to lease an available dwelling unit in the property to a household on behalf of whom a rural housing voucher assistance is provided, and enter into a voucher contract respecting that unit, if a proximate cause of that refusal is the current or prospective tenant's status as a holder of such a voucher. USDA may contract to make, make, and renew annual assistance payments to owners of projects originally financed with such a loan that has matured on or after enactment of this bill, and at rental rates commensurate to income. USDA shall establish uniform requirements, terms, and conditions for any sale or transfer of a property financed with such a loan to any entity, including a nonprofit organization, seeking to acquire it with a similar loan and any low-income housing tax credit under the Internal Revenue Code. USDA may also establish a Multifamily Housing Revitalization Program for the preservation and revitalization of multifamily housing projects funded with such loans, as well as with loans for housing and related facilities for domestic farm labor, to ensure that those projects have sufficient resources to provide safe and affordable housing for low-income residents and farm laborers.