I 

109TH CONGRESS 

1ST SESSION H. R. 2636 

To authorize the Secretary of Housing and Urban Development to make 

grants to States to supplement State assistance for the preservation 

of affordable housing for low-income families. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 25, 2005 

Mr. NADLER (for himself, Mr. SANDERS, Mr. OBERSTAR, Mr. GEORGE MILLER of California, Mr. MCDERMOTT, Ms. SCHAKOWSKY, Ms. VELA ́ZQUEZ, 

Mr. CUMMINGS, Mr. CLEAVER, Mr. RANGEL, Ms. EDDIE BERNICE JOHNSON of Texas, Ms. SLAUGHTER, Ms. ESHOO, and Mr. STARK) introduced 

the following bill; which was referred to the Committee on Financial Services 

A BILL 

To authorize the Secretary of Housing and Urban Development to make grants to States to supplement State 

assistance for the preservation of affordable housing for 

low-income families. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Housing Preservation 

5 Matching Grant Act of 2005’’. 
2 

•HR 2636 IH 

1 SEC. 2. PURPOSE. 

2 It is the purpose of this Act— 

3 (1) to promote the preservation of affordable 

4 housing units by providing matching grants to 

5 States that have developed and funded programs for 

6 the preservation of privately owned housing that is 

7 affordable to low-income families and persons and 

8 was produced for such purpose with Federal assist9 ance; 

10 (2) to minimize the involuntary displacement of 

11 tenants who are currently residing in such housing, 

12 many of whom are elderly or disabled persons; and 

13 (3) to continue the partnerships among the 

14 Federal Government, State and local governments, 

15 and the private sector in operating and assisting 

16 housing that is affordable to low-income Americans. 

17 SEC. 3. AUTHORITY. 

18 The Secretary of Housing and Urban Development 

19 shall, to the extent amounts are made available pursuant 

20 to section 11, make grants under this Act to States for 

21 low-income housing preservation. 

22 SEC. 4. USE OF GRANTS. 

23 (a) IN GENERAL.—Amounts from grants under this 

24 Act may be used only for assistance for acquisition, pres25 ervation incentives, operating costs, and capital expendi-
3 

•HR 2636 IH 

1 tures for a housing project that meets the requirements 

2 under subsection (b), (c), or (d). 

3 (b) PROJECTS WITH HUD-INSURED MORTGAGES.— 

4 A project meets the requirements under this subsection 

5 only if— 

6 (1) the project is financed by a loan or mort7 gage that is— 

8 (A) insured or held by the Secretary under 

9 section 221(d)(3) of the National Housing Act 

10 and receiving loan management assistance 

11 under section 8 of the United States Housing 

12 Act of 1937 due to a conversion from section 

13 101 of the Housing and Urban Development 

14 Act of 1965; 

15 (B) insured or held by the Secretary and 

16 bears interest at a rate determined under the 

17 proviso of section 221(d)(5) of the National 

18 Housing Act; 

19 (C) insured, assisted, or held by the Sec20 retary or a State or State agency under section 

21 236 of the National Housing Act; or 

22 (D) held by the Secretary and formerly in23 sured under a program referred to in subpara24 graph (A), (B), or (C); 
4 

•HR 2636 IH 

1 (2) the project is subject to an unconditional 

2 waiver of, with respect to the mortgage referred to 

3 in paragraph (1)— 

4 (A) all rights to any prepayment of the 

5 mortgage; and 

6 (B) all rights to any voluntary termination 

7 of the mortgage insurance contract for the 

8 mortgage; and 

9 (3) the owner of the project has entered into 

10 binding commitments (applicable to any subsequent 

11 owner) to extend all low-income affordability restric12 tions for the project, including any such restrictions 

13 imposed because of any contract for project-based 

14 assistance for the project. 

15 (c) PROJECTS WITH SECTION 8 PROJECT-BASED AS16 SISTANCE.—A project meets the requirements under this 

17 subsection only if— 

18 (1) the project is subject to a contract for 

19 project-based assistance; and 

20 (2) the owner of the project has entered into 

21 binding commitments (applicable to any subsequent 

22 owner) to extend such assistance for the maximum 

23 period allowable under law (subject to the avail24 ability of amounts for such purpose) and to extend 
5 

•HR 2636 IH 

1 any low-income affordability restrictions applicable 

2 to the project in connection with such assistance. 

3 (d) PROJECTS PURCHASED BY RESIDENTS.—A 

4 project meets the requirements under this subsection only 

5 if the project— 

6 (1) is or was eligible low-income housing (as 

7 such term is defined in section 229 of the Low-In8 come Housing Preservation and Resident Home9 ownership Act of 1990 (42 U.S.C. 4119); and 

10 (2) has been purchased by a resident council for 

11 the housing or is approved by the Secretary for such 

12 purchase, for conversion to homeownership housing 

13 under a resident homeownership program meeting 

14 the requirements under section 226 of such Act (12 

15 U.S.C. 4116). 

16 (e) COMBINATION OF ASSISTANCE.—Notwith17 standing subsection (a), any project that is otherwise eligi18 ble for assistance with grant amounts provided under this 

19 Act because the project meets the requirements under sub20 section (b) or (c) and that also meets the requirements 

21 under paragraph (1) of the other of such subsections, shall 

22 be eligible for such assistance only if the project complies 

23 with all of the requirements under such other subsection. 
6 

•HR 2636 IH 

1 SEC. 5. GRANT AMOUNT LIMITATION. 

2 The Secretary shall limit the portion of the aggregate 

3 amount of grants under this Act made available for any 

4 fiscal year that may be provided to a single State based 

5 upon the proportion of such State’s need (as determined 

6 by the Secretary) for such assistance to the aggregate 

7 need among all States approved for such assistance for 

8 such fiscal year. 

9 SEC. 6. MATCHING REQUIREMENT. 

10 (a) IN GENERAL.—The Secretary may not make a 

11 grant under this Act to any State for any fiscal year in 

12 an amount that exceeds twice the amount that the State 

13 certifies, as the Secretary shall require, that the State will 

14 contribute for such fiscal year, or has contributed since 

15 January 1, 2005, from non-Federal sources for the pur16 poses under section 4(a). 

17 (b) TREATMENT OF PREVIOUS CONTRIBUTIONS.— 

18 Any portion of amounts contributed after January 1, 

19 2005, that are counted for purposes of meeting the re20 quirement under subsection (a) for a fiscal year may not 

21 be counted for such purposes for any subsequent fiscal 

22 year. 

23 (c) TREATMENT OF TAX CREDITS.—Tax credits pro24 vided under section 42 of the Internal Revenue Code of 

25 1986 and proceeds from the sale of tax-exempt bonds by 
7 

•HR 2636 IH 

1 any State or local government entity shall not be consid2 ered non-Federal sources for purposes of this section 

3 SEC. 7. TREATMENT OF SUBSIDY LAYERING REQUIRE4 MENTS. 

5 Neither section 6 nor any other provision of this Act 

6 may be construed to prevent the use of tax credits pro7 vided under section 42 of the Internal Revenue Code of 

8 1986 in connection with housing assisted with grant 

9 amounts provided under this Act, to the extent that such 

10 use is in accordance with section 102(d) of the Depart11 ment of Housing and Urban Development Reform Act of 

12 1989 (42 U.S.C. 3545(d)) and section 911 of the Housing 

13 and Community Development Act of 1992 (42 U.S.C. 

14 3545 note). 

15 SEC. 8. APPLICATIONS. 

16 The Secretary shall provide for States (through ap17 propriate State agencies) to submit applications for grants 

18 under this Act. The Secretary shall require the applica19 tions to contain any information and certifications nec20 essary for the Secretary to determine whether the State 

21 is eligible to receive such a grant. 

22 SEC. 9. DEFINITIONS. 

23 For purposes of this Act, the following definitions 

24 shall apply: 
8 

•HR 2636 IH 

1 (1) LOW-INCOME AFFORDABILITY RESTRIC2 TIONS.—The term ‘‘low-income affordability restric3 tions’’ means, with respect to a housing project, any 

4 limitations imposed by regulation or regulatory 

5 agreement on rents for tenants of the project, rent 

6 contributions for tenants of the project, or income7 eligibility for occupancy in the project. 

8 (2) PROJECT-BASED ASSISTANCE.—The term 

9 ‘‘project-based assistance’’ has the meaning given 

10 such term in section 16(c) of the United States 

11 Housing Act of 1937 (42 U.S.C. 1437n(c)), except 

12 that such term includes assistance under any suc13 cessor programs to the programs referred to in such 

14 section. 

15 (3) SECRETARY.—The term ‘‘Secretary’’ means 

16 the Secretary of Housing and Urban Development. 

17 (4) STATE.—The term ‘‘State’’ means the 

18 States of the United States, the District of Colum19 bia, the Commonwealth of Puerto Rico, the Com20 monwealth of the Northern Mariana Islands, Guam, 

21 the Virgin Islands, American Samoa, and any other 

22 territory or possession of the United States. 

23 SEC. 10. REGULATIONS. 

24 The Secretary may issue any regulations necessary 

25 to carry out this Act. 
9 

•HR 2636 IH 

1 SEC. 11. AUTHORIZATION OF APPROPRIATIONS. 

2 There is authorized to be appropriated for grants 

3 under this title such sums as may be necessary for each 

4 of fiscal years 2006, 2007, 2008, 2009, and 2010. 

Æ