II 

118TH CONGRESS 

2D SESSION S. 3931 

To preserve and protect multifamily housing properties assisted by the 

Secretary of Housing and Urban Development. 

IN THE SENATE OF THE UNITED STATES 

MARCH 12, 2024 

Mr. BROWN introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

A BILL 

To preserve and protect multifamily housing properties assisted by the Secretary 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. 

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

5 Preservation and Protection Act of 2024’’. 

6 SEC. 2. REVITALIZATION AND PRESERVATION OF DIS7 TRESSED MULTIFAMILY PROPERTIES. 

8 (a) DEFINITIONS.—As used in this section— 

9 (1) the term ‘‘multifamily housing project’’ 

10 means a project consisting of five or more dwelling 


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1 units assisted or approved to receive a transfer of 

2 assistance, insured, or with a loan held by the Sec3 retary or a State or State agency in part or in whole 

4 pursuant to— 

5 (A) section 8(b) of the United States 

6 Housing Act of 1937 (42 U.S.C. 1437f(b)); 

7 (B) section 202 of the Housing Act of 

8 1959 (12 U.S.C. 1701q); 

9 (C) section 202 of the Housing Act of 

10 1959 (former 12 U.S.C. 1701q), as such section 

11 existed before the enactment of the Cranston12 Gonzalez National Affordable Housing Act 

13 (Public Law 101–625; 104 Stat. 4079); 

14 (D) section 811 of the Cranston-Gonzalez 

15 National Affordable Housing Act (42 U.S.C. 

16 8013); 

17 (E) section 236 of the National Housing 

18 Act (12 U.S.C. 1715z–1); 

19 (F) a housing assistance payments con20 tract for project-based rental assistance; or 

21 (G) a Second Component contract for 

22 project-based rental assistance converted in ac23 cordance with the matter under the heading 

24 ‘‘RENTAL ASSISTANCE DEMONSTRATION’’ under 

25 the heading ‘‘MANAGEMENT AND ADMINISTRAVerDate Sep 11 2014 17:38 Mar 24, 2024 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3931.IS S3931

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1 TION’’ under the heading ‘‘DEPARTMENT OF 

2 HOUSING AND URBAN DEVELOPMENT’’ 

3 in title II of division C of the Consolidated and 

4 Continuing Appropriations Act, 2012 (42 

5 U.S.C. 1437f note; Public Law 112–55); and 

6 (2) the term ‘‘necessary physical improve7 ments’’ means new construction or capital improve8 ments to an existing multifamily housing project 

9 that the Secretary determines are necessary to ad10 dress the deficiencies or that rise to such a level that 

11 delaying physical improvements to the project would 

12 be detrimental to the longevity of the project as suit13 able housing for occupancy. 

14 (b) AUTHORITY.—To such extent or in such amounts 

15 as provided in appropriations Acts, the Secretary of Hous16 ing and Urban Development (in this section referred to 

17 as the ‘‘Secretary’’) may offer capital assistance under 

18 this section to owners or sponsors of eligible multifamily 

19 housing projects for the purpose of ensuring the long-term 

20 preservation of safe, affordable housing. 

21 (c) ELIGIBLE COSTS.—The Secretary may use funds 

22 under this section for— 

23 (1) the cost of providing direct loans, which 

24 may be forgivable, and the costs of modifying such 

25 loans, to owners or sponsors of distressed multiVerDate Sep 11 2014 17:38 Mar 24, 2024 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3931.IS S3931

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1 family housing projects for the purpose of making 

2 necessary physical improvements, including to sub3 sidize gross obligations for the principal amount of 

4 such loans, subject to the terms and conditions in 

5 subsection (d), to fund projects that improve phys6 ical conditions; and 

7 (2) administering the implementation of this 

8 section, including— 

9 (A) the cost of contracts or cooperative 

10 agreements to support implementation; and 

11 (B) costs related to outreach and consulta12 tion with residents of distressed multifamily 

13 housing projects and other community stake14 holders. 

15 (d) LOAN TERMS AND CONDITIONS.— 

16 (1) ELIGIBILITY.—Owners or sponsors of multi17 family housing projects who meet each of the fol18 lowing requirements shall be eligible for loan assist19 ance under this section: 

20 (A) The multifamily housing project, in21 cluding any project from which assistance has 

22 been approved to be transferred has deficiencies 

23 that cause the project to be at risk of physical 

24 obsolescence or economic nonviability. 


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1 (B) The actual rents received by the owner 

2 or sponsor of the distressed property would not 

3 adequately sustain the debt needed to make 

4 necessary physical improvements. 

5 (C) The owner or sponsor meets any such 

6 additional eligibility criteria as the Secretary 

7 determines to be appropriate, considering fac8 tors that contributed to the project’s defi9 ciencies. 

10 (D) The owner or sponsor agrees to extend 

11 or establish an affordable housing use agree12 ment for 30 years and agrees to accept a re13 newal of a housing assistance payments con14 tract in any year in which a renewal is offered 

15 by the Secretary. 

16 (2) USE OF LOAN FUNDS.—Each recipient of 

17 loan assistance under this section may only use such 

18 loan assistance for eligible uses, as determined by 

19 the Secretary, to result in necessary physical im20 provements. 

21 (3) LOAN AVAILABILITY.—The Secretary shall 

22 only provide loan assistance to an owner or sponsor 

23 of a multifamily housing project when such assist24 ance, considered with other financial resources availVerDate Sep 11 2014 17:38 Mar 24, 2024 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3931.IS S3931

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1 able to the owner or sponsor, is needed to make the 

2 necessary physical improvements. 

3 (4) INTEREST RATES AND LENGTH.—Loans 

4 provided under this section shall bear interest at 1 

5 percent, and at origination shall have a repayment 

6 period coterminous with the affordability period de7 scribed in paragraph (1)(D), with the frequency and 

8 amount of repayments to be determined by require9 ments established by the Secretary. 

10 (5) LOAN MODIFICATIONS OR FORGIVENESS.— 

11 With respect to loans provided under this section, 

12 the Secretary may take any of the following actions 

13 if the Secretary determines that doing so will pre14 serve affordability of the project: 

15 (A) Waive any due on sale or due on refi16 nancing restriction. 

17 (B) Consent to the terms of new debt to 

18 which the loans may be subordinate, even if 

19 such new debt would impact the repayment of 

20 the loan. 

21 (C) Extend the term of the loan. 

22 (D) Forgive the loan in whole or in part. 

23 (6) MATCHING CONTRIBUTION.—Each recipient 

24 of loan assistance under this section shall secure at 

25 least 20 percent of the total cost needed to make the 


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1 necessary physical improvements from non-Federal 

2 sources, except in cases where the Secretary deter3 mines that a lack of financial resources qualifies a 

4 loan recipient for— 

5 (A) a reduced contribution below 20 per6 cent; or 

7 (B) an exemption to the matching con8 tribution requirement. 

9 (7) ADDITIONAL LOAN CONDITIONS.—The Sec10 retary may establish additional conditions for loan 

11 eligibility provided under this section as the Sec12 retary determines to be appropriate. 

13 (8) MULTIFAMILY HOUSING PROJECTS INSURED

14 BY THE SECRETARY.—In the case of any property 

15 with respect to which assistance is provided under 

16 this section that has a mortgage insured by the Sec17 retary, the Secretary may use funds available under 

18 this section as necessary to pay for the costs of 

19 modifying such loan. 

20 (e) IMPLEMENTATION.— 

21 (1) IN GENERAL.—The Secretary shall take 

22 steps to ensure the effective implementation of this 

23 section, including ensuring— 

24 (A) timely execution of rehabilitation ac25 tivities funded by assistance under this section; 


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1 (B) ongoing owner compliance with con2 tract or program requirements; and 

3 (C) outreach to and consultation with resi4 dents of distressed properties. 

5 (2) REQUIREMENTS.—The Secretary shall have 

6 the authority to establish by notice any requirements 

7 that the Secretary determines are necessary for 

8 timely and effective implementation of the program 

9 and expenditure of funds appropriated, which re10 quirements shall take effect upon issuance. 

11 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

12 are authorized to be appropriated to the Secretary to carry 

13 out this section— 

14 (1) for fiscal year 2025, $25,000,000; and 

15 (2) for each fiscal year thereafter, such sums as 

16 may be necessary. 

Æ 


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