IB 

Union Calendar No. 327 

109TH CONGRESS 

2D SESSION H. R. 5527 

[Report No. 109–572] 

To extend the authority of the Secretary of Housing and Urban Development 

to restructure mortgages and rental assistance for certain assisted multifamily housing. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 6, 2006 

Mr. NEY (for himself, Ms. WATERS, Mr. GERLACH, and Mr. FRANK of Massachusetts) introduced the following bill; which was referred to the Committee on Financial Services 

JULY 17, 2006 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Strike out all after the enacting clause and insert the part printed in italic] 

A BILL 

To extend the authority of the Secretary of Housing and 

Urban Development to restructure mortgages and rental 

assistance for certain assisted multifamily housing. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Mark-to-Market Ex3 tension Act of 2006’’. 

4 SEC. 2. REAUTHORIZATION. 

5 Section 579 of the Multifamily Assisted Housing Re6 form and Affordability Act of 1997 (42 U.S.C. 1437f 

7 note) is amended— 

8 (1) in subsection (a)(1), by striking ‘‘October 1, 

9 2006’’ and inserting ‘‘October 1, 2011’’; and 

10 (2) in subsection (b), by striking ‘‘October 1, 

11 2006’’ and inserting ‘‘October 1, 2011’’. 

12 SECTION 1. SHORT TITLE. 

13 This Act may be cited as the ‘‘Mark-to-Market Exten14 sion Act of 2006’’. 

15 SEC. 2. REAUTHORIZATION. 

16 Section 579 of the Multifamily Assisted Housing Re17 form and Affordability Act of 1997 (42 U.S.C. 1437f note) 

18 is amended— 

19 (1) in subsection (a)(1), by striking ‘‘October 1, 

20 2006’’ and inserting ‘‘October 1, 2011’’; and 

21 (2) in subsection (b), by striking ‘‘October 1, 

22 2006’’ and inserting ‘‘October 1, 2011’’. 

23 SEC. 3. EXCEPTION RENTS. 

24 Section 514(g)(2)(A) of the Multifamily Assisted Hous25 ing Reform and Affordability Act of 1997 (42 U.S.C. 1437f 


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1 note) is amended by striking ‘‘five percent’’ and inserting 

2 ‘‘nine percent’’. 

3 SEC. 4. PERIOD OF ELIGIBILITY FOR NONPROFIT DEBT RE4 LIEF. 

5 Section 517(a)(5) of the Multifamily Assisted Housing 

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

7 note) is amended by inserting before the period at the end 

8 the following: ‘‘: Provided, That if such purchaser acquires 

9 such project subsequent to the date of recordation of the af10 fordability agreement described in section 514(e)(6), (A) 

11 such purchaser must acquire such project on or before the 

12 later of (i) five years after the date of recordation of the 

13 affordability agreement and (ii) two years after the date 

14 of enactment of this title; and (B) the Secretary must have 

15 received, and determined acceptable, such purchaser’s appli16 cation for modification, assignment or forgiveness prior to 

17 such purchaser’s acquisition of the project’’. 

18 SEC. 5. DEFINITIONS. 

19 Section 512 of the Multifamily Assisted Housing Re20 form and Affordability Act of 1997 (42 U.S.C. 1437f note) 

21 is amended by adding at the end the following new para22 graph: 

23 ‘‘(20) DISASTER-DAMAGED ELIGIBLE PROJECT.— 

24 The term ‘disaster-damaged eligible project’ means an 

25 eligible multifamily housing project— 


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1 ‘‘(A) that is located in a county that was 

2 declared a major disaster area on or after Janu3 ary 1, 2005, by the President pursuant to the 

4 Robert T. Stafford Disaster Relief and Emer5 gency Assistance Act (42 U.S.C. 5121 et seq); 

6 ‘‘(B) whose owner carried casualty and li7 ability insurance covering such project in 

8 amounts required by the Secretary; 

9 ‘‘(C) that suffered damages not covered by 

10 such insurance that the Secretary determines are 

11 likely to exceed $5,000 per unit in connection 

12 with the natural disaster that was the subject of 

13 such designation; and 

14 ‘‘(D) whose owner requests restructuring 

15 within two years following the date that such 

16 damages were incurred. 

17 Disaster-damaged eligible projects shall be eligible 

18 without regard to the relationship between rent level 

19 for the assisted units and comparable market rents.’’. 

20 SEC. 6. DISASTER-DAMAGED ELIGIBLE PROJECTS. 

21 (a) MARKET RENT DETERMINATIONS.—Subparagraph 

22 (B) of section 514(g)(1) of the Multifamily Assisted Hous23 ing Reform and Affordability Act of 1997 (42 U.S.C. 1437f 

24 note) is amended to read as follows: 

25 ‘‘(B) if those rents cannot be determined— 


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1 ‘‘(i) with respect to a disaster-damaged 

2 eligible project, are equal to 100 percent of 

3 the fair market rents for the relevant market 

4 area (in effect at the time of such disaster); 

5 and 

6 ‘‘(ii) with respect to other eligible mul7 tifamily housing projects, are equal to 90 

8 percent of the fair market rents for the rel9 evant market area.’’. 

10 (b) OWNER INVESTMENT.—Section 517(c) of the Multi11 family Assisted Housing Reform and Affordability Act of 

12 1997 (42 U.S.C. 1437f note) is amended by adding at the 

13 end the following new paragraph: 

14 ‘‘(3) PROPERTIES DAMAGED BY NATURAL DISAS15 TERS.—With respect to a disaster-damaged eligible 

16 project, the owner contribution toward rehabilitation 

17 needs shall be determined in accordance with para18 graph (2)(C).’’. 


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Union Calendar No. 327 

109TH CONGRESS 

2D SESSION H. R. 5527 

[Report No. 109

–572] 

A BILL 

To extend the authority of the Secretary of Housmultifamily housing. gages and rental assistance for certain assisted ing and Urban Development to restructure mortJULY 17, 2006 Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


hmoore on PROD1PC68 with HMBILLS