II

107TH CONGRESS

1ST SESSION S. 1457

To extend FHA-insured multifamily housing mortgage and housing assistance

restructuring authority, and for other purposes.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 24, 2001

Mr. SARBANES (by request) introduced the following bill; which was read twice

and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To extend FHA-insured multifamily housing mortgage and

housing assistance restructuring authority, and for other

purposes.

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

3 SECTION 1. FHA-INSURED MULTIFAMILY HOUSING MORT4 GAGE AND HOUSING ASSISTANCE RESTRUC5 TURING.

6 (a) OMHAR.—The Multifamily Assisted Housing

7 Reform and Affordability Act of 1997 (42 U.S.C. 1437f

8 note) is amended—

9 (1) in section 571, by inserting ‘‘Federal Hous10 ing Administration of the’’ after ‘‘within the’’;
2

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1 (2) in section 572(a)—

2 (A) by striking ‘‘President by and with the

3 advice and consent of the Senate’’ and inserting

4 ‘‘Secretary of Housing and Urban Development

5 (referred to in this subtitle as the ‘Secretary’)’’;

6 and

7 (B) by striking the second sentence;

8 (3) in section 573—

9 (A) in subsection (b), in the first sentence,

10 by inserting ‘‘the Federal Housing Commis11 sioner and’’ before ‘‘the Secretary’’; and

12 (B) by striking subsection (d);

13 (4) by repealing sections 576 and 578; and

14 (5) in section 579, by striking ‘‘2001’’ each

15 place it appears and inserting ‘‘2004’’.

16 (b) PROGRAM CHANGES.—The Multifamily Assisted

17 Housing Reform and Affordability Act of 1997 (42 U.S.C.

18 1437f note) is amended—

19 (1) in section 514(f)(3)(A), by adding at the

20 end the following: ‘‘If tenant groups, nonprofit orga21 nizations, and public entities are determined eligible

22 under section 517(a)(5), such groups, organizations,

23 and entities shall also be eligible under this para24 graph.’’;
3

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1 (2) in section 524(e), by adding at the end the

2 following:

3 ‘‘(3) MORTGAGE RESTRUCTURING AND RENTAL

4 ASSISTANCE SUFFICIENCY PLANS.—Notwithstanding

5 paragraph (1), the owner of the project may request,

6 and the Secretary may consider, mortgage restruc7 turing and rental assistance sufficiency plans to fa8 cilitate sales or transfers of properties under this

9 subtitle, subject to an approved plan of action under

10 the Emergency Low Income Housing Preservation

11 Act of 1987 (12 U.S.C. 1715l note) or the Low-In12 come Housing Preservation and Resident Home13 ownership Act of 1990 (12 U.S.C. 4101 et seq.),

14 which plans shall result in a sale or transfer of those

15 properties.’’;

16 (3) in section 512(2)—

17 (A) in the second sentence, by inserting ‘‘,

18 but does include a project described in section

19 524(e)(3)’’ after ‘‘section 524(e)’’;

20 (B) by striking subparagraph (A) and in21 serting the following:

22 ‘‘(A) in the case of properties described in

23 subparagraph (C) and properties that have

24 rents above a percentage (to be established by

25 the Secretary) of fair market rent, with rents
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1 that, on an average per unit or per room

2 basis—

3 ‘‘(i) exceed the rent of comparable

4 properties in the same market area, as de5 termined by a participating administrative

6 entity or any other independent entity act7 ing on behalf of the Secretary and in ac8 cordance with guidelines established by the

9 Secretary; or

10 ‘‘(ii) exceeded the rent of comparable

11 properties in the same market area, as de12 termined by the Secretary, prior to, and

13 notwithstanding, any renewal of project14 based assistance under this subtitle;’’;

15 (4) in section 517(a)(1)(B), by striking ‘‘no

16 more than the’’ and inserting the following: ‘‘not

17 more than the greater of—

18 ‘‘(i) the full or partial payment of

19 claim made under this subtitle; or

20 ‘‘(ii) the’’;

21 (5) in section 513(b), by striking paragraph (6)

22 and redesignating paragraph (7) as paragraph (6);

23 and

24 (6) in section 515(c)(1)—

25 (A) by striking subparagraph (A);
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1 (B) by redesignating subparagraphs (B)

2 and (C) as subparagraphs (A) and (B), respec3 tively; and

4 (C) in subparagraph (A), as redesignated,

5 by inserting ‘‘or’’ after the semicolon.

6 SEC. 2. ENHANCED VOUCHERS.

7 Section 8(t)(1)(B) of the United States Housing Act

8 of 1937 (42 U.S.C. 1437f(t)(1)(B)) is amended by insert9 ing after ‘‘paragraph (10)(A) of subsection (o)’’ the fol10 lowing: ‘‘and, if a contract was renewed pursuant to sec11 tion 514(c) of the Multifamily Assisted Housing Reform

12 and Affordability Act of 1997 (42 U.S.C. 1437f note),

13 subject to the comparable rent limitations provided in sub14 paragraphs (A) and (B) of section 514(g)(1) of that Act,’’.

15 SEC. 3. TECHNICAL CORRECTION.

16 (a) IN GENERAL.—Section 531(c) of Public Law

17 106–74 (113 Stat. 1116) is amended by striking ‘‘514(h)’’

18 and inserting ‘‘514(h)(1)’’.

19 (b) RETROACTIVE EFFECT.—The amendment made

20 by subsection (a) shall be deemed to have the same effec21 tive date as section 531 of Public Law 106–74.

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