II

103D CONGRESS

1ST SESSION S. 1279

To provide the Secretary of Housing and Urban Development with flexibility

to dispose of multifamily housing projects.

IN THE SENATE OF THE UNITED STATES

JULY 22 (legislative day, JUNE 30), 1993

Mr. BOND (for himself and Mr. D’AMATO) introduced the following bill; which

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

Urban Affairs

A BILL

To provide the Secretary of Housing and Urban Development

with flexibility to dispose of multifamily housing projects.

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; PURPOSES.

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

5 ‘‘FHA Multifamily Housing Flexible Disposition Act of

6 1993’’.

7 (b) PURPOSES.—The purposes of this Act are:

8 (1) To balance the need to reimburse the gen9 eral insurance fund of the Department of Housing

10 and Urban Development through the disposition of
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1 multifamily housing projects with the goal of pre2 serving housing for low-income households.

3 (2) To provide housing to households with

4 mixed incomes that are capable of paying the operat5 ing and debt service costs of such housing.

6 (3) To explore different approaches to disposing

7 of such housing, including the use of Federal hous8 ing rental subsidies, Federal housing mortgage in9 surance, risk-sharing arrangements, purchase money

10 mortgages, and low-income housing tax credits, or

11 combinations thereof.

12 (4) To maintain to the maximum extent pos13 sible the low-income character of such housing while

14 disposing of such properties in an economically via15 ble manner.

16 SEC. 2. AUTHORITY.

17 (a) IN GENERAL.—Consistent with the purposes set

18 forth in section 1 and for a period of 18 months from

19 the date of enactment of this Act, the Secretary of Hous20 ing and Urban Development (hereafter in this Act referred

21 to as the ‘‘Secretary’’) may dispose of multifamily housing

22 projects that are—

23 (1) owned by the Secretary; or

24 (2) being foreclosed upon by the Secretary;
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1 without regard to the provisions of section 203 of the

2 Housing and Community Development Amendments of

3 1978 (12 U.S.C. 1701z–11).

4 (b) SALE TO LOCAL GOVERNMENTS AND STATE

5 AGENCIES.—

6 (1) NOTICE.—

7 (A) IN GENERAL.—Within a reasonable pe8 riod of time after acquiring title to a multifam9 ily housing project, the Secretary shall provide

10 written notice to—

11 (i) the unit of general local govern12 ment the jurisdiction of which includes

13 such project; and

14 (ii) the State housing finance agency,

15 or other appropriate agency, of the State

16 in which such project is located.

17 (B) CONTENTS.—The notice provided

18 under paragraph (1) shall contain basic infor19 mation about the project, including its location,

20 the number of units (identified by number of

21 bedrooms), and information relating to the esti22 mated fair market value of the project.

23 (2) EXPRESSION OF SERIOUS INTEREST.—Not

24 later than 60 days after receiving notice under para25 graph (1), a unit of general local government or
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1 State agency may provide the Secretary with written

2 notice of its serious interest in the property. Such

3 notice of serious interest shall be in such form and

4 include such information as the Secretary may pre5 scribe.

6 (3) NOTICE OF READINESS FOR SALE.—Upon

7 the expiration of the 60-day period referred to in

8 paragraph (2), the Secretary shall provide written

9 notice to any unit of general local government or

10 State agency that has expressed serious interest in

11 the property. Such notice shall specify the minimum

12 terms and conditions for the sale of the property.

13 (4) OFFERS AND ACCEPTANCE.—

14 (A) OFFERS.—A unit of general local gov15 ernment or State agency has 45 days after the

16 date notice is received under paragraph (3) to

17 make a bona fide offer to purchase the prop18 erty.

19 (B) NONPROFIT ORGANIZATIONS.—An

20 offer under this paragraph may be made in con21 junction with a nonprofit organization.

22 (C) ACCEPTANCE.—The Secretary shall ac23 cept an offer that complies with the terms and

24 conditions prescribed by the Secretary under

25 paragraph (3).
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1 (c) SALE TO OTHER PURCHASERS.—If, after expira2 tion of the periods of time referred to in paragraphs (2)

3 and (4)(A) of subsection (b), as applicable, no purchaser

4 has expressed serious interest or made a bona fide offer

5 to purchase the property, the Secretary may sell the prop6 erty to any purchaser.

7 (d) DEFINITIONS.—For the purposes of this Act the

8 term ‘‘multifamily housing project’’ has the same meaning

9 as in section 203(i)(1) of the Housing and Community De10 velopment Amendments of 1978 (12 U.S.C. 1701z–

11 11(i)(1)).

12 SEC. 3. REPORT.

13 Not later than 90 days after the expiration of the

14 18-month period following the date of enactment of this

15 Act, the Secretary shall transmit to the Congress a report

16 describing the various methods of disposition of multifam17 ily housing projects that have been undertaken pursuant

18 to this Act and any recommendations for administrative

19 or legislative action to further the purposes of this Act.

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