II 

109TH CONGRESS 

2D SESSION S. 3511 

To extend for 5 years the Mark-to-Market program of the Department of 

Housing and Urban Development. 

IN THE SENATE OF THE UNITED STATES 

JUNE 14, 2006 

Mr. ALLARD (for himself and Mr. REED) introduced the following bill; which 

was read twice and referred to the Committee on Banking, Housing, and 

Urban Affairs 

A BILL 

To extend for 5 years the Mark-to-Market program of the 

Department of Housing and Urban Development. 

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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Mark-to-Market Extension Act of 2006’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Purposes. 

Sec. 3. Definitions. 

Sec. 4. Extension of Mark-to-Market program. 

Sec. 5. Exception rents. 

Sec. 6. Otherwise eligible projects with at-or-below-market rents. 


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Sec. 7. Disaster-damaged eligible projects. 

Sec. 8. Period of eligibility for nonprofit debt relief. 

Sec. 9. Effective date. 

1 SEC. 2. PURPOSES. 

2 The purpose of this Act is to— 

3 (1) continue the progress of the Multifamily As4 sisted Housing Reform and Affordability Act of 

5 1997, as amended by the Mark-To-Market Exten6 sion Act of 2001; 

7 (2) expand eligibility for Mark-to-Market re8 structuring so as to further the preservation of af9 fordable housing in a cost-effective manner; and 

10 (3) provide for the preservation and rehabilita11 tion of projects damaged by Hurricanes Katrina, 

12 Rita, and Wilma, or by other natural disasters. 

13 SEC. 3. DEFINITIONS. 

14 Section 512 of the Multifamily Assisted Housing Re15 form and Affordability Act of 1997 (42 U.S.C. 1473f 

16 note) is amended by adding at the end the following: 

17 ‘‘(20) DISASTER-DAMAGED ELIGIBLE

18 PROJECT.— 

19 ‘‘(A) IN GENERAL.—The term ‘disaster20 damaged eligible project’ means an otherwise el21 igible multifamily housing project— 

22 ‘‘(i) that is located in a county that 

23 was designated a major disaster area on or 

24 after January 1, 2005, by the President 


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1 pursuant to title IV of the Robert T. Staf2 ford Disaster Relief and Emergency Assist3 ance Act (42 U.S.C. 5121 et seq.); 

4 ‘‘(ii) whose owner carried casualty and 

5 liability insurance covering such project in 

6 an amount required by the Secretary; 

7 ‘‘(iii) that suffered damages not cov8 ered by such insurance that the Secretary 

9 determines is likely to exceed $5,000 per 

10 unit in connection with the natural disaster 

11 that was the subject of the designation de12 scribed in subparagraph (A); and 

13 ‘‘(iv) whose owner requests restruc14 turing of the project not later than 2 years 

15 after the date that such damage occurred. 

16 ‘‘(B) RULE OF CONSTRUCTION.—A dis17 aster-damaged eligible project shall be eligible 

18 for amounts under this Act without regard to 

19 the relationship between rent levels for the as20 sisted units in such project and comparable 

21 rents for the relevant market area.’’. 

22 SEC. 4. EXTENSION OF MARK-TO-MARKET PROGRAM. 

23 Section 579 of the Multifamily Assisted Housing Re24 form and Affordability Act of 1997 (42 U.S.C. 1473f 


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1 note) is amended by striking ‘‘October 1, 2006’’ each place 

2 that term appears and inserting ‘‘October 1, 2011’’. 

3 SEC. 5. EXCEPTION RENTS. 

4 Section 514(g)(2) of the Multifamily Assisted Hous5 ing Reform and Affordability Act of 1997 (42 U.S.C. 

6 1473f note) is amended— 

7 (1) by inserting ‘‘disaster-damaged eligible 

8 projects and’’ after ‘‘waive this limit’’; and 

9 (2) by striking ‘‘five percent’’ and inserting ‘‘9 

10 percent’’. 

11 SEC. 6. OTHERWISE ELIGIBLE PROJECTS WITH AT-OR12 BELOW-MARKET RENTS. 

13 Section 512(2)(A) of the Multifamily Assisted Hous14 ing Reform and Affordability Act of 1997 (42 U.S.C. 

15 1473f note) is amended— 

16 (1) by inserting ‘‘(i)’’ after ‘‘(A)’’; 

17 (2) by striking the semicolon and inserting ‘‘; 

18 or’’; and 

19 (3) by adding at the end the following: 

20 ‘‘(ii) with rents below the level specified in 

21 clause (i) if the Secretary determines that— 

22 ‘‘(I) such property is worthy of pres23 ervation; and 

24 ‘‘(II) treating such project as an eligi25 ble multifamily housing project will be 


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1 cost-effective to the Secretary in relation to 

2 alternative preservation options.’’. 

3 SEC. 7. DISASTER-DAMAGED ELIGIBLE PROJECTS. 

4 (a) MARKET RENT DETERMINATIONS.—Section 

5 514(g)(1)(B) of the Multifamily Assisted Housing Reform 

6 and Affordability Act of 1997 (42 U.S.C. 1473f note) is 

7 amended by striking ‘‘determined, are equal’’ and insert8 ing the following: ‘‘determined— 

9 ‘‘(i) with respect to a disaster-dam10 aged eligible property, are equal to 100 

11 percent of the fair market rents for the rel12 evant market area (as such rents were in 

13 effect at the time of such disaster; and 

14 ‘‘(ii) with respect to other eligible 

15 multifamily housing projects, are equal’’. 

16 (b) OWNER INVESTMENT.—Section 517(c) of the 

17 Multifamily Assisted Housing Reform and Affordability 

18 Act of 1997 (42 U.S.C. 1473f note) is amended by adding 

19 at the end the following: 

20 ‘‘(3) PROPERTIES DAMAGED BY NATURAL DIS21 ASTERS.—With respect to a disaster-damaged eligi22 ble property, the owner contribution toward rehabili23 tation needs shall be determined in accordance with 

24 paragraph (2)(C).’’. 


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1 SEC. 8. PERIOD OF ELIGIBILITY FOR NONPROFIT DEBT RE2 LIEF. 

3 Section 517(a)(5) of the Multifamily Assisted Hous4 ing Reform and Affordability Act of 1997 (42 U.S.C. 

5 1473f note) is amended by adding at the end the following: 

6 ‘‘If such purchaser acquires such project subsequent to the 

7 date of recordation of the affordability agreement de8 scribed in section 514(e)(6)— 

9 ‘‘(1) such purchaser shall acquire such project 

10 on or before the later of— 

11 ‘‘(A) 5 years after the date of recordation 

12 of the affordability agreement; or 

13 ‘‘(B) 2 years after the date of enactment 

14 of the Mark-to-Market Extension Act of 2006; 

15 and 

16 ‘‘(2) the Secretary shall have received, and de17 termined acceptable, such purchaser’s application for 

18 modification, assignment, or forgiveness prior to the 

19 acquisition of the project by such purchaser.’’. 

20 SEC. 9. EFFECTIVE DATE. 

21 This Act, and the amendments made by this Act, 

22 shall take effect on the earlier of— 

23 (1) the date of enactment of this Act; or 

24 (2) September 30, 2006. 

Æ 


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