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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3931 Introduced in Senate (IS)]

<DOC>

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Affordable Housing Preservation and 
Protection Act of 2024''.

SEC. 2. REVITALIZATION AND PRESERVATION OF DISTRESSED MULTIFAMILY 
              PROPERTIES.

    (a) Definitions.--As used in this section--
            (1) the term ``multifamily housing project'' means a 
        project consisting of five or more dwelling units assisted or 
        approved to receive a transfer of assistance, insured, or with 
        a loan held by the Secretary or a State or State agency in part 
        or in whole pursuant to--
                    (A) section 8(b) of the United States Housing Act 
                of 1937 (42 U.S.C. 1437f(b));
                    (B) section 202 of the Housing Act of 1959 (12 
                U.S.C. 1701q);
                    (C) section 202 of the Housing Act of 1959 (former 
                12 U.S.C. 1701q), as such section existed before the 
                enactment of the Cranston-Gonzalez National Affordable 
                Housing Act (Public Law 101-625; 104 Stat. 4079);
                    (D) section 811 of the Cranston-Gonzalez National 
                Affordable Housing Act (42 U.S.C. 8013);
                    (E) section 236 of the National Housing Act (12 
                U.S.C. 1715z-1);
                    (F) a housing assistance payments contract for 
                project-based rental assistance; or
                    (G) a Second Component contract for project-based 
                rental assistance converted in accordance with the 
                matter under the heading ``rental assistance 
                demonstration'' under the heading ``Management and 
                Administration'' under the heading ``DEPARTMENT OF 
                HOUSING AND URBAN DEVELOPMENT'' in title II of division 
                C of the Consolidated and Continuing Appropriations 
                Act, 2012 (42 U.S.C. 1437f note; Public Law 112-55); 
                and
            (2) the term ``necessary physical improvements'' means new 
        construction or capital improvements to an existing multifamily 
        housing project that the Secretary determines are necessary to 
        address the deficiencies or that rise to such a level that 
        delaying physical improvements to the project would be 
        detrimental to the longevity of the project as suitable housing 
        for occupancy.
    (b) Authority.--To such extent or in such amounts as provided in 
appropriations Acts, the Secretary of Housing and Urban Development (in 
this section referred to as the ``Secretary'') may offer capital 
assistance under this section to owners or sponsors of eligible 
multifamily housing projects for the purpose of ensuring the long-term 
preservation of safe, affordable housing.
    (c) Eligible Costs.--The Secretary may use funds under this section 
for--
            (1) the cost of providing direct loans, which may be 
        forgivable, and the costs of modifying such loans, to owners or 
        sponsors of distressed multifamily housing projects for the 
        purpose of making necessary physical improvements, including to 
        subsidize gross obligations for the principal amount of such 
        loans, subject to the terms and conditions in subsection (d), 
        to fund projects that improve physical conditions; and
            (2) administering the implementation of this section, 
        including--
                    (A) the cost of contracts or cooperative agreements 
                to support implementation; and
                    (B) costs related to outreach and consultation with 
                residents of distressed multifamily housing projects 
                and other community stakeholders.
    (d) Loan Terms and Conditions.--
            (1) Eligibility.--Owners or sponsors of multifamily housing 
        projects who meet each of the following requirements shall be 
        eligible for loan assistance under this section:
                    (A) The multifamily housing project, including any 
                project from which assistance has been approved to be 
                transferred has deficiencies that cause the project to 
                be at risk of physical obsolescence or economic 
                nonviability.
                    (B) The actual rents received by the owner or 
                sponsor of the distressed property would not adequately 
                sustain the debt needed to make necessary physical 
                improvements.
                    (C) The owner or sponsor meets any such additional 
                eligibility criteria as the Secretary determines to be 
                appropriate, considering factors that contributed to 
                the project's deficiencies.
                    (D) The owner or sponsor agrees to extend or 
                establish an affordable housing use agreement for 30 
                years and agrees to accept a renewal of a housing 
                assistance payments contract in any year in which a 
                renewal is offered by the Secretary.
            (2) Use of loan funds.--Each recipient of loan assistance 
        under this section may only use such loan assistance for 
        eligible uses, as determined by the Secretary, to result in 
        necessary physical improvements.
            (3) Loan availability.--The Secretary shall only provide 
        loan assistance to an owner or sponsor of a multifamily housing 
        project when such assistance, considered with other financial 
        resources available to the owner or sponsor, is needed to make 
        the necessary physical improvements.
            (4) Interest rates and length.--Loans provided under this 
        section shall bear interest at 1 percent, and at origination 
        shall have a repayment period coterminous with the 
        affordability period described in paragraph (1)(D), with the 
        frequency and amount of repayments to be determined by 
        requirements established by the Secretary.
            (5) Loan modifications or forgiveness.--With respect to 
        loans provided under this section, the Secretary may take any 
        of the following actions if the Secretary determines that doing 
        so will preserve affordability of the project:
                    (A) Waive any due on sale or due on refinancing 
                restriction.
                    (B) Consent to the terms of new debt to which the 
                loans may be subordinate, even if such new debt would 
                impact the repayment of the loan.
                    (C) Extend the term of the loan.
                    (D) Forgive the loan in whole or in part.
            (6) Matching contribution.--Each recipient of loan 
        assistance under this section shall secure at least 20 percent 
        of the total cost needed to make the necessary physical 
        improvements from non-Federal sources, except in cases where 
        the Secretary determines that a lack of financial resources 
        qualifies a loan recipient for--
                    (A) a reduced contribution below 20 percent; or
                    (B) an exemption to the matching contribution 
                requirement.
            (7) Additional loan conditions.--The Secretary may 
        establish additional conditions for loan eligibility provided 
        under this section as the Secretary determines to be 
        appropriate.
            (8) Multifamily housing projects insured by the 
        secretary.--In the case of any property with respect to which 
        assistance is provided under this section that has a mortgage 
        insured by the Secretary, the Secretary may use funds available 
        under this section as necessary to pay for the costs of 
        modifying such loan.
    (e) Implementation.--
            (1) In general.--The Secretary shall take steps to ensure 
        the effective implementation of this section, including 
        ensuring--
                    (A) timely execution of rehabilitation activities 
                funded by assistance under this section;
                    (B) ongoing owner compliance with contract or 
                program requirements; and
                    (C) outreach to and consultation with residents of 
                distressed properties.
            (2) Requirements.--The Secretary shall have the authority 
        to establish by notice any requirements that the Secretary 
        determines are necessary for timely and effective 
        implementation of the program and expenditure of funds 
        appropriated, which requirements shall take effect upon 
        issuance.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section--
            (1) for fiscal year 2025, $25,000,000; and
            (2) for each fiscal year thereafter, such sums as may be 
        necessary.
                                 <all>
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