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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4868 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 4868

To prevent the loss of affordable housing dwelling units in the United 
                                States.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 17, 2010

Mr. Frank of Massachusetts (for himself, Ms. Waters, Mr. Gutierrez, Ms. 
Velazquez, Mr. Capuano, Mr. Hinojosa, Mr. Baca, Mr. Lynch, Mr. Al Green 
    of Texas, Ms. Kilroy, Mr. Himes, Ms. Clarke, and Mr. Delahunt) 
 introduced the following bill; which was referred to the Committee on 
Financial Services, and in addition to the Committees on the Budget and 
   Ways and Means, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
To prevent the loss of affordable housing dwelling units in the United 
                                States.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Housing 
Preservation and Tenant Protection Act of 2010''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Implementation.
Sec. 3. Budget treatment.
    TITLE I--PRESERVATION OF FEDERALLY FINANCED AND STATE-FINANCED 
    AFFORDABLE HOUSING AT RISK OF CONVERSION TO MARKET-RATE HOUSING

Sec. 101. Conversion of rent supplement and RAP contracts to project-
                            based rental assistance under section 8.
Sec. 102. Preservation of properties with expiring use restrictions.
Sec. 103. Enhanced voucher assistance and preservation project-based 
                            section 8 assistance for State-financed 
                            affordable housing.
Sec. 104. Project-based preservation assistance.
Sec. 105. Preservation of State-financed affordable housing.
Sec. 106. Preservation exchange program.
Sec. 107. Federal first right of refusal.
Sec. 108. Amendment to Low-Income Housing Preservation and Resident 
                            Homeownership Act of 1990.
Sec. 109. Preservation of HUD-held and HUD-owned buildings.
Sec. 110. Authority for HUD to assign flexible subsidy loans.
Sec. 111. Use of existing section 8 funds to preserve and revitalize 
                            affordable housing.
Sec. 112. Authority for Ginnie Mae to securitize FHA risk-sharing 
                            mortgages.
 TITLE II--RESTORATION OF HOUSING AT RISK OF LOSS DUE TO DETERIORATION

Sec. 201. Authority to transfer rental assistance to other properties.
Sec. 202. Building transfers: requirements for purchasers of FHA 
                            insured projects and section 8 projects.
Sec. 203. Use of interest reduction payments for rehabilitation grants.
Sec. 204. Clarification of budget-based rent increases for 
                            rehabilitated projects.
Sec. 205. Interest reduction payments for section 236 projects 
                            experiencing a reduction of units.
                   TITLE III--PROTECTION OF RESIDENTS

Sec. 301. Tenant protection voucher to replace lost subsidized units on 
                            1-for-1 basis.
Sec. 302. Maintenance of housing.
Sec. 303. Resident enforcement of public housing agency or project 
                            owner agreements with HUD.
Sec. 304. Resident access to building information.
     TITLE IV--PRESERVATION OF TROUBLED PROJECTS FACING FORECLOSURE

Sec. 401. Maintaining affordability through escrowing of rental 
                            assistance.
Sec. 402. Multifamily housing mortgage foreclosure.
Sec. 403. Building acquisition: valuation of physically distressed 
                            properties sold by HUD.
Sec. 404. Investment through up-front grants from General Insurance 
                            Fund.
Sec. 405. Maintaining project-based assistance for projects disposed of 
                            by HUD.
Sec. 406. Correcting harm caused by late subsidy payments.
    TITLE V--INCENTIVES UNDER MAHRA FOR OWNERS TO MAINTAIN HOUSING 
                             AFFORDABILITY

Sec. 501. Extension of mark-to-market program.
Sec. 502. Maintaining affordability in preservation project 
                            transactions.
Sec. 503. Encouraging continued participation in assisted housing 
                            programs.
Sec. 504. Prepayment of FHA mortgages on multifamily housing.
Sec. 505. Period of eligibility for nonprofit debt relief.
Sec. 506. Acquisition of restructured projects by nonprofit 
                            organizations.
Sec. 507. Rent adjustments upon subsequent renewals of section 8 
                            contracts.
Sec. 508. Budget-based rent adjustments.
Sec. 509. Independent appraisal requirement in cases of divergent rent 
                            studies.
Sec. 510. Extension of housing assistance payment contract.
Sec. 511. Otherwise eligible projects.
Sec. 512. Exception rents.
Sec. 513. Disaster-damaged eligible projects.
Sec. 514. Funding for tenant and other participation and capacity 
                            building.
                    TITLE VI--PRESERVATION DATABASE

Sec. 601. Preservation database.
       TITLE VII--SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY

Sec. 701. Short title and table of contents.
                  Subtitle A--New Construction Reforms

Sec. 711. Project rental assistance.
Sec. 712. Selection criteria.
Sec. 713. Development cost limitations.
Sec. 714. Owner deposits.
Sec. 715. Definition of private nonprofit organization.
Sec. 716. Preferences for homeless elderly.
Sec. 717. Nonmetropolitan allocation.
                        Subtitle B--Refinancing

Sec. 721. Approval of prepayment of debt.
Sec. 722. Sources of refinancing.
Sec. 723. Use of unexpended amounts.
Sec. 724. Use of project residual receipts.
Sec. 725. Additional provisions.
                 Subtitle C--Assisted Living Facilities

Sec. 731. Definition of assisted living facility.
Sec. 732. Monthly assistance payment under rental assistance.
           Subtitle D--National Senior Housing Clearinghouse

Sec. 741. National senior housing clearinghouse.
                 TITLE VIII--RURAL HOUSING PRESERVATION

Sec. 801. Short title.
Sec. 802. Preservation of multifamily housing.
Sec. 803. Rural preservation and rural tenant protection vouchers.
Sec. 804. Tenant participation.
Sec. 805. Priority for financing.
Sec. 806. Conforming amendment.
Sec. 807. Regulations.

SEC. 2. IMPLEMENTATION.

    The Secretary of Housing and Urban Development and the Secretary of 
Agriculture, as applicable, shall by notice establish any additional 
requirements that may be necessary to immediately, except as 
specifically provided otherwise, carry out the provisions of this Act. 
Such notice shall take effect upon issuance.

SEC. 3. BUDGET TREATMENT.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the Committee on the Budget of the House of 
Representatives, provided that such statement has been submitted prior 
to the vote on passage.

    TITLE I--PRESERVATION OF FEDERALLY FINANCED AND STATE-FINANCED 
    AFFORDABLE HOUSING AT RISK OF CONVERSION TO MARKET-RATE HOUSING

SEC. 101. CONVERSION OF RENT SUPPLEMENT AND RAP CONTRACTS TO PROJECT-
              BASED RENTAL ASSISTANCE UNDER SECTION 8.

    (a) Conversion.--Notwithstanding any other provision of law and 
subject to the availability of appropriations, the Secretary of Housing 
and Urban Development shall, at the request of a project owner with a 
contract under section 101 of the Housing and Urban Development Act of 
1965 (12 U.S.C. 1701s) or a contract under section 236(f)(2) of the 
National Housing Act (12 U.S.C. 1715z-1(f)(2)), submitted during the 
12-month period beginning on the date of the enactment of this Act, 
convert such contract to project-based assistance under section 8 of 
the United States Housing Act of 1937 (42 U.S.C. 1437f) (in this 
section referred to as ``section 8'').
    (b) Terms.--A contract for project-based rental assistance under 
section 8 pursuant to a conversion under subsection (a) of this section 
shall--
            (1) be subject to the availability of amounts provided in 
        appropriations Act; and
            (2) have a term that is not shorter in duration than the 
        remaining term of the contract that is converted, pursuant to 
        subsection (a) of this section, to project-based assistance 
        under such section 8, plus an additional term of not less than 
        5 years, and up to 30 years at the request of the owner.
    (c) Loan Management Assistance Contracts.--After the initial year 
of a project-based rental assistance contract under section 8 for loan 
management assistance, the contract may, at the option of the project 
owner and subject to the conditions specified in section 524(a)(4)(D) 
of the Multifamily Assisted Housing Reform and Affordability Act of 
1997 (42 U.S.C. 1437f note), be converted to a renewal contract under 
such section 524, subject to the availability of appropriations, if the 
project owner agrees to a contract term that extends 10 years beyond 
the remaining term of the assistance contract.
    (d) Use Restrictions.--Notwithstanding any other provision of law, 
conversion of a contract pursuant to subsection (a) shall not diminish 
the affordability restrictions or number of assisted units applicable 
to the property that is subject to the contract converted.
    (e) Use of Recaptured Amounts.--Any budget authority recaptured as 
a result of conversion of any contract pursuant to subsection (a) shall 
be used by the Secretary of Housing and Urban Development for making 
assistance payments with respect to the initial 12-month period of the 
contract for project-based rental assistance under section 8 resulting 
from such conversion.

SEC. 102. PRESERVATION OF PROPERTIES WITH EXPIRING USE RESTRICTIONS.

    (a) Federal Assistance and Extension of Affordability 
Requirements.--
            (1) Provision of assistance.--
                    (A) Authority.--The Secretary of Housing and Urban 
                Development may use amounts made available under 
                paragraph (5) to provide assistance under this section 
                with respect to covered multifamily housing properties.
                    (B) Applications and selection criteria.--The 
                Secretary shall provide for owners of covered 
                multifamily housing properties to submit applications 
                for assistance under this section and shall establish 
                criteria for selection of properties to receive 
                assistance that shall take into consideration the need 
                of a property for such assistance.
            (2) Rehabilitation assistance.--The Secretary may provide a 
        grant or loan under this paragraph to the owner or purchaser of 
        the property, subject to the following requirements:
                    (A) Purpose.--The assistance shall be provided for 
                the purpose of rehabilitating the property for 
                continued use as housing affordable to low- and 
                moderate-income families.
                    (B) Eligible use.--Amounts from the grant or loan 
                may be used only for payment of nonrecurring 
                maintenance and capital improvements for the property, 
                and associated transaction costs, under such terms and 
                conditions as are determined by the Secretary.
                    (C) Per unit amount limitations.--The amount from a 
                grant or loan used with respect to a dwelling unit in 
                the property may not exceed the per unit dollar amount 
                limitation as the Secretary shall establish for 
                purposes of this paragraph for dwelling units of the 
                applicable size.
                    (D) Required extension of affordability 
                restrictions.--The Secretary may provide assistance 
                under this paragraph for a property only if the owner 
                of the property enters into such binding commitments as 
                the Secretary may require, which shall be applicable to 
                any subsequent owner, to ensure that the property will 
                be operated, for a period of not less than 30 years 
                that begins on the termination date for the property, 
                in accordance with all affordability restrictions that 
                are applicable to the property under the multifamily 
                housing subsidy program under which the property is 
                assisted before the termination date, with flexibility 
                to recognize more significant restrictions accompanying 
                other subsidies for the property.
            (3) Assistance for purchase.--The Secretary may provide a 
        grant or loan under this paragraph to an eligible organization 
        under subparagraph (B) for acquisition of a covered multifamily 
        housing property, subject to the following requirements:
                    (A) Purpose.--The assistance shall be provided for 
                the purpose of facilitating acquisition of properties 
                by eligible organizations whose missions are to provide 
                affordable housing to low- and moderate-income 
                families.
                    (B) Eligible organizations.--A grant or loan under 
                this paragraph may be made only to a nonprofit 
                organization, a for-profit organization, or a public 
                housing agency (as such term is defined in section 3(b) 
                of the United States Housing Act of 1937 (42 U.S.C. 
                1437a(b)) that provides such assurances as the 
                Secretary may require that the organization--
                            (i) will acquire the property; and
                            (ii) is capable of managing the property 
                        and related facilities (either directly or 
                        through a contract) for the remaining useful 
                        life of the property and related facilities.
                    (C) Eligible use.--Amounts from the grant or loan 
                may be used only to cover any direct costs (other than 
                the purchase price), including transaction costs, 
                incurred by the eligible organization in purchasing and 
                assuming responsibility for the property and related 
                facilities involved.
                    (D) Per unit amount limitations.--The amount from a 
                grant or loan used with respect to a dwelling unit in 
                the property may not exceed the per unit dollar amount 
                limitation as the Secretary shall establish for 
                purposes of this paragraph for dwelling units of the 
                applicable size.
                    (E) Required extension of affordability 
                restrictions.--The Secretary may provide assistance 
                under this paragraph for a property only if the 
                eligible organization that purchases the property 
                enters into such binding commitments as the Secretary 
                may require, which shall be applicable to any 
                subsequent owner, to ensure that the property will be 
                operated, for the remaining useful life of the 
                property, in accordance with all affordability 
                restrictions that are applicable to the property under 
                the multifamily housing subsidy program under which the 
                property is assisted before the termination date.
            (4) Low- and moderate-income affordability assistance.--The 
        Secretary may provide new project-based assistance under 
        section 8 of the United States Housing Act of 1937 (42 U.S.C. 
        1437f) for currently unassisted units in covered multifamily 
        housing properties occupied by tenants otherwise eligible for 
        such assistance, subject to the following requirements:
                    (A) Purpose.--The assistance shall be provided for 
                the purpose of maintaining the affordability of 
                dwelling units in covered multifamily housing 
                properties not currently provided project-based rental 
                assistance.
                    (B) Eligibility.--Assistance may be made available 
                for a property only if the property--
                            (i) is located in an area having a 
                        demonstrated demand for affordable rental 
                        housing; or
                            (ii) may be subject to rent level increases 
                        as the result of mortgage maturity or 
                        termination or as the result of a 
                        recapitalization activity approved by the 
                        Secretary or the Secretary of Agriculture.
                    (C) Form and term.--The assistance shall be in the 
                form of a housing assistance payment contract under 
                such section 8 and shall be provided for such term as 
                may be agreed to by the Secretary and the owner of the 
                property. The form of assistance may include an 
                amendment of an existing assistance contract to cover 
                additional units in the subject property.
                    (D) Prevention of duplicative subsidies.--
                Assistance may not be provided for any dwelling unit in 
                a property if such assistance would duplicate other 
                project- or tenant-based rental assistance of any kind 
                for the dwelling unit from any source.
                    (E) Amount and rent levels.--The Secretary shall 
                determine the amount of annual assistance provided for 
                a property based on rent levels, for the dwelling units 
                in the property that are subject to affordability 
                restrictions pursuant to subparagraph (F), that are 
                equal to the lesser of--
                            (i) comparable market rents for the market 
                        area in which the property is located for 
                        dwelling units of the applicable size; and
                            (ii) 150 percent of the fair market rentals 
                        established under section 8(c) of the United 
                        States Housing Act of 1937 for the market area 
                        in which the property is located for dwelling 
                        units of the applicable size.
                    (F) Required extension of affordability 
                restrictions.--The Secretary may provide assistance 
                under this paragraph for a property only if the owner 
                of the property enters into such binding commitments as 
                the Secretary may require, which shall be applicable to 
                any subsequent owner, to ensure that the property will 
                be operated, for a period not shorter than the term of 
                the assistance agreed to pursuant to subparagraph (C) 
                or 10 years, whichever is longer, that begins on the 
                termination date for the property, in accordance with 
                all affordability restrictions that are applicable to 
                the property under the multifamily housing subsidy 
                program under which the property is assisted before the 
                termination date.
            (5) Authorization of appropriations.--There are authorized 
        to be appropriated for assistance under this subsection such 
        sums as may be necessary.
    (b) Enhanced Vouchers.--
            (1) Qualification; election to remain in unit.--Section 
        8(t)(1) of the United States Housing Act of 1937 (42 U.S.C. 
        1437f(t)(1)(B)) is amended--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``and shall not require that the family 
                requalify under the selection standards for a public 
                housing agency in order to be eligible for such 
                assistance'' before the comma; and
                    (B) by striking subparagraph (B) and inserting the 
                following new subparagraph:
                    ``(B)(i) the assisted family may elect to remain in 
                the same project in which the family was residing on 
                the date of the eligibility event for the project 
                regardless of unit and family size standards normally 
                used by the administering public housing agency (except 
                that tenants may be required to move to units of 
                appropriate size if available on the premises), and the 
                owner of the unit shall accept the enhanced voucher and 
                terminate the tenancy only for serious or repeated 
                violation of the terms and conditions of the lease or 
                for violation of applicable law; and
                    ``(ii) if, during any period the family makes such 
                an election and continues to so reside, the rent for 
                the dwelling unit of the family in such project exceeds 
                the applicable payment standard established pursuant to 
                subsection (o) for the unit, the amount of rental 
                assistance provided on behalf of the family shall be 
                determined using a payment standard that is equal to 
                the rent for the dwelling unit (as such rent may be 
                increased from time-to-time), subject to paragraph 
                (10)(A) of subsection (o) and any other reasonable 
                limit prescribed by the Secretary, except that a limit 
                shall not be considered reasonable for purposes of this 
                subparagraph if it adversely affects such assisted 
                families;''.
            (2) Provision to residents of assisted multifamily projects 
        upon termination date.--
                    (A) Requirement.--Upon the termination date for 
                each assisted multifamily housing property, to the 
                extent that amounts for assistance under this paragraph 
                are provided in advance in appropriation Acts, the 
                Secretary of Housing and Urban Development shall make 
                enhanced voucher assistance under section 8(t) of the 
                United States Housing Act of 1937 (42 U.S.C. 1437f(t)) 
                available on behalf of each family described in 
                subparagraph (B). The Secretary shall make such 
                assistance available no later than 60 days before the 
                termination date on behalf of each family described in 
                subparagraph (B) that elects to move from the property.
                    (B) Eligibility.--A family described in this 
                subparagraph is a family who--
                            (i)(I) is a low-income family (as such term 
                        is defined in section 3(b) of the United States 
                        Housing Act of 1937 (42 U.S.C. 1437a(b))); or
                            (II) is a moderate-income family that is--
                                    (aa) an elderly family (as such 
                                term is used in section 3(b) of the 
                                United States Housing Act of 1937 (42 
                                U.S.C. 1437a(b)));
                                    (bb) a disabled family (as such 
                                term is used in section 3(b) of the 
                                United States Housing Act of 1937 (42 
                                U.S.C. 1437a(b))); or
                                    (cc) residing in a low-vacancy area 
                                (as determined by the Secretary); and
                            (ii) is residing in--
                                    (I) a property that immediately 
                                before such termination date was an 
                                assisted multifamily housing property; 
                                and
                                    (II) a dwelling unit that is not 
                                assisted after such termination date 
                                under section 8 of the United States 
                                Housing Act of 1937.
                    (C) Eligibility event.--Section 8(t)(2) of the 
                United States Housing Act of 1937 (42 U.S.C. 
                1437f(t)(2)) is amended by adding after the period at 
                the end the following new sentence: ``Such term 
                includes, with respect to an assisted multifamily 
                housing property (as such term is defined in section 
                102(f) of the Housing Preservation and Tenant 
                Protection Act of 2010), the occurrence of the 
                termination date (as such term is defined in such 
                section 102(f)) for the property.''
            (3) Regulations.--The Secretary of Housing and Urban 
        Development shall issue regulations to implement the amendments 
        made by this subsection not later than the expiration of the 6-
        month period beginning on the date of enactment of this Act, 
        and such regulations shall require that the provisions of such 
        amendments relating to termination of tenancy shall be 
        contained in the lease.
    (c) Notification Requirement.--
            (1) Timing.--An owner of an assisted multifamily housing 
        property, including any owner of a property with rent 
        limitations that expire concurrently with the expiration of the 
        term of the mortgage for the property, who intends to terminate 
        or alter the affordability restrictions for the property on or 
        after the termination date for the property shall, not less 
        than 12 months before such termination date, provide written 
        notice of such termination date to the Secretary of Housing and 
        Urban Development, the chief executive officer of the State and 
        the unit of general local government (as such term is defined 
        in section 104 of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 12704)) in which the property is 
        located, and each tenant of the property.
            (2) Contents.--The notice shall include--
                    (A) a statement specifying any changes in the terms 
                or applicability of the affordability restrictions for 
                the property that the owner intends to make on or after 
                the termination date for the property;
                    (B) a statement that, if the owner proceeds with 
                such intended changes and the Congress makes funds 
                available, the Department of Housing and Urban 
                Development will provide tenant-based rental assistance 
                to all eligible residents, enabling them to choose the 
                place they wish to rent, which may include the right to 
                remain in the dwelling unit in which they currently 
                reside; and
                    (C) a statement that, if the Congress makes funds 
                available, the owner and the Secretary may yet agree to 
                renewal of assistance and affordability restrictions 
                for the property, thereby obviating the need for such 
                tenant-based rental assistance.
            (3) Failure to provide notice.--If the owner does not 
        provide the notice required under this subsection, 
        notwithstanding any inapplicability of the affordability 
        restrictions for the property, the owner may not evict the 
        tenants or increase the tenants' rent payments until such time 
        as the owner has provided the notice and the 12-month period 
        beginning upon the provision of such notice has elapsed.
            (4) Other terms.--The Secretary may, to preserve affordable 
        housing or protect tenants in such properties, establish 
        additional notice requirements.
            (5) Savings provision.--This subsection may not be 
        construed to annul, alter, affect, or preempt any provision of 
        the law of a State or political subdivision thereof requiring 
        notice regarding termination of assistance or affordability 
        restrictions with respect to a multifamily housing project or 
        to exempt any person from complying with such a law.
    (d) Projects With Common Use Agreements.--Notwithstanding any 
provision of the Emergency Low Income Housing Preservation Act of 1987 
(12 U.S.C. 1715l note), if two covered multifamily housing properties 
are encumbered by use agreements that were recorded in land records on 
the same date pursuant to such Act and both such properties are subject 
to a single mortgage, both such use agreements shall be deemed to 
expire on the earlier of the expiration dates stated in such use 
agreements, but only if the owner of the properties agrees to maintain 
any project-based rental assistance for both such properties for the 
30-year period beginning upon such common expiration date. At the 
request of the owner, the Secretary shall establish contract rents for 
such project-based assistance at levels for comparable properties in 
the same market area.
    (e) Annual and Semiannual Reviews.--
            (1) Annual review.--To ensure compliance with this section, 
        the Secretary shall conduct an annual review on actions taken 
        under this section and the status of covered multifamily 
        housing properties and submit a report to the Congress 
        regarding each such annual review.
            (2) Semiannual review.--Not less than semiannually during 
        the 2-year period beginning on the date of the enactment of 
        this Act and not less than annually thereafter, the Secretary 
        shall submit reports to the Committee on Financial Services of 
        the House of Representatives and the Committee on Banking, 
        Housing, and Urban Affairs of the Senate stating, for such 
        periods, the total number of assisted multifamily housing 
        properties for which notification has been provided under 
        subsection (c) during such period, the total number of covered 
        multifamily housing properties for which assistance has been 
        provided under subsection (a), and the type or types of such 
        assistance provided.
    (f) Definitions.--For purposes of this section:
            (1) Affordability restrictions.--The term ``affordability 
        restrictions'' means, with respect to a covered multifamily 
        housing property, limits imposed by regulation, regulatory 
        agreement, or contract on tenant rents, rent contributions, or 
        income eligibility.
            (2) Assisted multifamily housing property.--The term 
        ``assisted multifamily housing property'' means a multifamily 
        housing project for which assistance is provided under a 
        multifamily housing subsidy program.
            (3) Comparable properties.--The term ``comparable 
        properties'' means, with respect to a covered multifamily 
        housing property, properties in the same market area, where 
        practicable, that--
                    (A) are similar to the covered multifamily housing 
                property as to neighborhood (including risk of crime), 
                type of location, access, street appeal, age, property 
                size, apartment mix, physical configuration, property 
                and unit amenities, utilities, and other relevant 
                characteristics;
                    (B) are not receiving rental assistance of any kind 
                from any source; and
                    (C) are not subject to affordability restrictions 
                of any kind.
            (4) Covered multifamily housing property.--The term 
        ``covered multifamily housing property'' means an assisted 
        multifamily housing property for which the termination date 
        will occur within the 10-year period beginning on the date of 
        the enactment of this Act.
            (5) Low-income family.--The term ``low-income family'' has 
        the meaning given such term in section 3(b) of the United 
        States Housing Act of 1937 (42 U.S.C. 1437a(b)).
            (6) Moderate-income family.--The term ``moderate-income 
        family'' has the meaning given such term in section 229 of the 
        Low-Income Housing Preservation and Resident Homeownership Act 
        of 1992 (12 U.S.C. 4119).
            (7) Multifamily housing subsidy program.--The term 
        ``multifamily housing subsidy program'' means--
                    (A) the rent supplement program under section 101 
                of the Housing and Urban Development Act of 1965 (12 
                U.S.C. 1701s);
                    (B) the below-market interest rate mortgage 
                insurance program under section 221(d)(3) of the 
                National Housing Act (12 U.S.C. 1715l(d)(3));
                    (C) a contract under section 236(f)(2) of the 
                National Housing Act (12 U.S.C. 1715z-1(f)(2));
                    (D) the program for interest reduction payments 
                under section 236 of the National Housing Act (12 
                U.S.C. 1715z-1) and any comparable State program 
                providing for interest reduction payments;
                    (E) the program for supportive housing for the 
                elderly under section 202 of the Housing Act of 1959 
                (12 U.S.C. 1701q), including assistance under such 
                section as in effect before the enactment of the 
                Cranston-Gonzalez National Affordable Housing Act;
                    (F) the program for rural rental housing under 
                section 515 of the Housing Act of 1949 (42 U.S.C. 
                1485); and
                    (G) any other mortgage insurance program provided 
                under the National Housing Act for which the insured 
                property is subject to budget-based rent restrictions.
            (8) Nonprofit organization.--The term ``nonprofit 
        organization'' has the meaning, with respect to housing 
        assisted under this section, given such term in section 202(k) 
        of the Housing Act of 1959 (12 U.S.C. 1701q(k)).
            (9) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (10) Termination date.--The term ``termination date'' 
        means, with respect to an assisted or a covered multifamily 
        housing property, the date that--
                    (A) the mortgage, loan, or capital advance for the 
                property matures or expires and the affordability 
                restrictions applicable to the property because of 
                assistance for the property pursuant to a multifamily 
                housing subsidy program terminate with respect to the 
                property;
                    (B) an assistance contract for the property that is 
                not renewed, terminates, or expires;
                    (C) in the case of a property that is not eligible 
                low-income housing, as such term is defined in section 
                229 of the Low-Income Housing Preservation and Resident 
                Homeownership Act of 1990 (12 U.S.C. 4119), the 
                mortgage or loan that covers the property is prepaid or 
                an insurance contract that covers the property 
                terminates; or
                    (D) use restrictions imposed with respect to the 
                property pursuant to the Emergency Low Income Housing 
                Preservation Act of 1987 expire.
    (g) Regulations.--The Secretary may issue any regulations necessary 
to carry out this section.

SEC. 103. ENHANCED VOUCHER ASSISTANCE AND PRESERVATION PROJECT-BASED 
              SECTION 8 ASSISTANCE FOR STATE-FINANCED AFFORDABLE 
              HOUSING.

    (a) Enhanced Voucher Assistance.--
            (1) Requirement.--Upon the prepayment or maturity of a 
        mortgage for which interest reduction payments have been made 
        through a State housing program or financed by a State housing 
        finance agency and subsidized by interest reduction payments 
        made pursuant to section 236 of the National Housing Act (12 
        U.S.C. 1715z-1), to the extent that amounts for assistance 
        under this subsection are provided in advance in appropriation 
        Acts, the Secretary of Housing and Urban Development shall make 
        enhanced voucher assistance under section 8(t) of the United 
        States Housing Act of 1937(42 U.S.C. 1437(t)) available on 
        behalf of families described in paragraph (2).
            (2) Eligible families.--A family described in this 
        paragraph is a family that--
                    (A)(i) is a low-income family, as such term is 
                defined in section 3(b) of the United States Housing 
                Act of 1937 (42 U.S.C. 1437a(b)); or
                    (ii) is a moderate-income family that has an income 
                that is not less than 80 percent, and not greater than 
                95 percent, of the median income for the area, as 
                determined by the Secretary, that--
                            (I) is an elderly family (as such term is 
                        used in section 3(b) of the United States 
                        Housing Act of 1937 (42 U.S.C. 1437a(b));
                            (II) is a disabled family (as such term is 
                        used in such section 3(b); or
                            (III) resides in a low-vacancy area, as 
                        determined by the Secretary; and
                    (B) on such prepayment or maturity date is residing 
                in dwelling unit of the project that--
                            (i) immediately before such prepayment or 
                        maturity was subject to the mortgage for which 
                        interest reduction payments were made and 
                        subject to affordability restrictions; and
                            (ii) is not assisted after such prepayment 
                        or maturity date under section 8 of the United 
                        States Housing Act of 1937, other than as 
                        provided under section 8(t)(4) of the United 
                        States Housing Act of 1937 (42 U.S.C. 
                        1437f(t)(4)).
            (3) Eligibility event.--Paragraph (2) of section 8(t) of 
        the United States Housing Act of 1937 (42 U.S.C. 1437f(t)(2)), 
        as amended by the preceding provisions of this Act, is further 
        amended by adding after the period at the end the following new 
        sentence: ``Such term also includes, with respect to a 
        multifamily family housing project with a mortgage for which 
        interest reduction payments have been made through a State 
        housing program or financed by a State housing finance agency, 
        the prepayment or maturity of such mortgage which results in 
        eligible residents of such housing project being eligible for 
        enhanced voucher assistance under this subsection, pursuant to 
        section 103(a) of the Housing Preservation and Tenant 
        Protection Act of 2010.''.
    (b) Preservation Project-Based Section 8 Assistance.--
            (1) In general.--Notwithstanding any other provision of 
        law, in connection with the prepayment or maturity of a 
        multifamily housing project mortgage subsidized by interest 
        reduction payments made through a State housing program or 
        financed by a State housing finance agency and subsidized by 
        interest reduction payments made pursuant to section 236 of the 
        National Housing Act (12 U.S.C. 1715z-1), to prevent 
        displacement of residents and to further preservation and 
        affordability of such multifamily housing project, at the 
        election of the project owner and in lieu of enhanced voucher 
        assistance under subsection (a) of this section or project-
        based voucher assistance under subsections (t)(4) and 
        (o)(13)(N) of section 8 of the United States Housing Act of 
        1937 (42 U.S.C. 1437f), the Secretary of Housing and Urban 
        Development shall, pursuant to the authority under subsections 
        (a) and (b) of such section 8, enter an annual contributions 
        contract with the State housing finance agency to permit the 
        State housing finance agency enter project-based assistance 
        contract under this subsection covering all units in the 
        project for which such enhanced or project-based voucher 
        assistance would otherwise be provided.
            (2) Contract terms.--Any project-based assistance contract 
        pursuant to this subsection shall--
                    (A) be considered for all purposes a contract 
                entered into under section 8 of the United States 
                Housing Act of 1937 (42 U.S.C. 1437f);
                    (B) have a term of at least 20 years;
                    (C) provide such assistance at rent levels 
                established as provided under section 524 of the 
                Multifamily Assisted Housing Reform and Affordability 
                Act of 1997 (42 U.S.C. 1437f note);
                    (D) be subsequently renewable at the request of the 
                owner under such section 524;
                    (E) be subject to the availability of amounts 
                provided in appropriations Acts; and
                    (F) be subject to such other terms as the Secretary 
                considers appropriate.
            (3) Income targeting.--To the extent that dwelling units 
        subject to an assistance contract under this paragraph are 
        occupied by families eligible for enhanced voucher assistance 
        under section 8(t) of the United States Housing Act of 1937 (42 
        U.S.C. 1437f(t)), the units shall be considered to be in 
        compliance with all income targeting requirements under the 
        United States Housing Act of 1937.
            (4) Tenant eligibility.--Notwithstanding any other 
        provision of law, in the multifamily housing project for which 
        project-based assistance is provided pursuant to this 
        subsection, each eligible family described in subsection (a)(2) 
        of this section that resides in a dwelling unit in such project 
        on the date such assistance contract first becomes effective 
        shall be considered to meet any applicable requirements for 
        income eligibility and occupancy.
            (5) Contract administration.--Notwithstanding any other 
        provision of law, any contract for project-based assistance 
        entered into pursuant to this subsection shall be administered 
        by the project-based contract administrator of the State in 
        which the multifamily housing project is located.

SEC. 104. PROJECT-BASED PRESERVATION ASSISTANCE.

    (a) Enhanced Vouchers.--Section 8(t) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(t)) is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following new 
        paragraph:
            ``(4) Project-based preservation assistance.--
                    ``(A) Authority.--Notwithstanding any other 
                provision of law, in the case of a multifamily housing 
                project eligible under subparagraph (C), the Secretary 
                shall, subject to the availability of amounts provided 
                in advance in appropriation Acts and at the request of 
                the owner of the project, provide project-based 
                preservation assistance in accordance with this 
                paragraph, in such form authorized in subparagraph (B) 
                as is requested by the owner, in lieu of enhanced 
                voucher assistance under this subsection. Such owner of 
                the project shall agree to accept such project-based 
                preservation assistance for a period of not less than 
                20 years: Provided, That any renewal contract during 
                such period is offered on terms and conditions 
                comparable to the original contract.
                    ``(B) Forms.--Project-based preservation assistance 
                provided in accordance with this paragraph shall be in 
                one of the following forms:
                            ``(i) Project-based preservation 
                        vouchers.--Project-based voucher assistance, 
                        which shall be provided in accordance with 
                        subsection (o)(13)(N).
                            ``(ii) Project-based assistance.--Project-
                        based assistance under the terms and conditions 
                        in section 524 of the Multifamily Assisted 
                        Housing Reform and Affordability Act of 1997 
                        (42 U.S.C. 1437f note). In determining the 
                        initial rent levels for a contract for project-
                        based assistance under this subparagraph, the 
                        Secretary shall establish initial contract 
                        rents at the comparable market rents for the 
                        area (as such term is defined in section 
                        524(a)(5) of the Multifamily Assisted Housing 
                        Reform and Affordability Act of 1997 (42 U.S.C. 
                        1437f note)).
                    ``(C) Eligible projects.--A multifamily housing 
                project is eligible under this subparagraph if--
                            ``(i)(I) an eligibility event for the 
                        project occurs; and
                            ``(II) the project is not a project for 
                        which the owner has opted not to renew a 
                        contract for project-based rental assistance 
                        under this section; or
                            ``(ii) enhanced voucher assistance has 
                        already been provided for the project pursuant 
                        to the conditions specified in subparagraph 
                        (F)(ii).
                    ``(D) Eligible units.--
                            ``(i) Income eligibility.--Assistance 
                        pursuant to this paragraph may be provided for 
                        all dwelling units in a multifamily housing 
                        project for which tenants residing in the 
                        project at the time assistance is initially 
                        provided meet income eligibility requirements 
                        for enhanced voucher assistance under this 
                        subsection.
                            ``(ii) Additional units.--At the request of 
                        the owner of a multifamily housing project for 
                        which assistance pursuant to this paragraph is 
                        provided, the Secretary may approve assistance 
                        for additional dwelling units, which may 
                        include units that are vacant at the time of 
                        the eligibility event, subject to a 
                        determination by the Secretary that such 
                        additional assistance is necessary or desirable 
                        to further the purposes reflected in 
                        subparagraph (E).
                            ``(iii) Rent payments.--Eligible families 
                        residing in a project at the time assistance 
                        pursuant to this paragraph is provided shall be 
                        subject to the provisions of subparagraphs (A) 
                        and (D) of paragraph (1) of this subsection. 
                        Notwithstanding the preceding sentence, an 
                        eligible family that is a low-income family 
                        shall not be required to pay as rent for a 
                        dwelling unit assisted pursuant to this 
                        paragraph an amount that exceeds 30 percent of 
                        the family's adjusted monthly income.
                            ``(iv) Income eligibility.--For purposes of 
                        income targeting requirements under section 16 
                        of the United States Housing Act of 1937 (42 
                        U.S.C. 1437n), tenants initially assisted under 
                        this paragraph shall not be considered new 
                        tenants.
                    ``(E) Required determinations.--As a condition of 
                entering into a contract pursuant to this paragraph, 
                the Secretary shall have determined, pursuant to 
                standards established by the Secretary and before 
                entering into such contract, that--
                            ``(i) the housing to be assisted under the 
                        contract is economically viable; and
                            ``(ii)(I) there is a significant demand for 
                        the housing;
                            ``(II) the housing will contribute to a 
                        community revitalization plan or to 
                        deconcentrating poverty and expanding housing 
                        and economic opportunities; or
                            ``(III) the continued affordability of the 
                        housing otherwise is an important asset to the 
                        community.
                The Secretary may delegate the authority to make the 
                determination under this subparagraph to the public 
                housing agency or project-based contract administrator 
                that would administer project-based assistance for such 
                project. Such public housing agency or project-based 
                contract administrator shall apply such standards as 
                the Secretary shall establish in making such 
                determination.
                    ``(F) Timing of request.--
                            ``(i) Projects for which request is made 
                        before eligibility event.--In the case of a 
                        project eligible for assistance under 
                        subparagraph (C)(i) that is requested prior to 
                        the occurrence of the eligibility event, a 
                        contract for assistance pursuant to this 
                        paragraph shall be provided upon the occurrence 
                        of the eligibility event.
                            ``(ii) Request made after issuance of 
                        enhanced vouchers.--In the case of a project 
                        eligible for assistance under subparagraph 
                        (C)(ii) that is requested after the issuance of 
                        enhanced voucher assistance for the project, a 
                        contract for assistance pursuant to this 
                        paragraph shall be provided only--
                                    ``(I) if the eligibility event for 
                                the project occurred before the date of 
                                the enactment of the Housing 
                                Preservation and Tenant Protection Act 
                                of 2010 and a request for such 
                                assistance is made within 12 months 
                                after such date of enactment (or such 
                                longer period as the Secretary may 
                                permit to facilitate preservation of 
                                the project as affordable housing);
                                    ``(II) if the project is sold or 
                                otherwise transferred and the new owner 
                                requests such assistance within 12 
                                months (or such longer period as the 
                                Secretary may permit to facilitate 
                                preservation of the project as 
                                affordable housing) of such purchase; 
                                or
                                    ``(III) in such other circumstances 
                                as the Secretary may determine are 
                                necessary or appropriate to facilitate 
                                preservation of the project as 
                                affordable.
                        Assistance for projects eligible pursuant to 
                        subparagraph (C)(ii) may only be provided as 
                        project-based preservation voucher assistance 
                        under subparagraph (B)(i). Such contract shall 
                        cover all dwelling units in the project that 
                        are occupied by tenants receiving enhanced 
                        voucher assistance at the time the contract is 
                        effective, plus any additional units as may be 
                        approved for the project pursuant to 
                        subparagraph (D)(ii).''.
    (b) PHA Project-Based Voucher Assistance.--Paragraph (13) of 
section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(13)) is amended by adding at the end the following new 
subparagraph:
                    ``(N) Preservation assistance.--
                            ``(i) Authority.--Project-based voucher 
                        assistance in accordance with this subparagraph 
                        shall be provided for projects eligible for 
                        such assistance pursuant to subsection (t)(4).
                            ``(ii) Authority for higher rents.--At the 
                        request of the owner of a multifamily housing 
                        project for a contract for assistance in 
                        accordance with this subparagraph to establish 
                        rents at levels above those permitted by 
                        subparagraph (H) of this paragraph, a public 
                        housing agency may request, and the Secretary 
                        may approve, higher unit rents if necessary to 
                        preserve housing opportunities that further the 
                        purposes of subsection (t)(4)(E).
                            ``(iii) Projects in multiple pha 
                        jurisdictions.--If the Secretary has not 
                        entered into a contract with a public housing 
                        agency to provide enhanced voucher assistance 
                        under subsection (t) for the project at the 
                        time the owner of a multifamily housing project 
                        requests assistance in accordance with this 
                        subparagraph, and the project is located within 
                        the jurisdiction for the program under this 
                        subsection of more than one public housing 
                        agency, in determining which agency will 
                        administer such assistance, the Secretary 
                        shall--
                                    ``(I) consider the ratio of the 
                                number of vouchers to be awarded under 
                                this subparagraph and of other project-
                                based vouchers administered under this 
                                paragraph to the total number of 
                                vouchers administered by an agency; and
                                    ``(II) among other factors, provide 
                                preference to an agency for which the 
                                total number of project-based vouchers 
                                administered under this paragraph, 
                                including vouchers to be awarded 
                                pursuant to this subparagraph, would 
                                not exceed 50 percent of the total 
                                number of all vouchers to be 
                                administered by the agency after such 
                                award.
                        The Secretary shall establish guidelines for 
                        determining which agency will administer 
                        assistance if a unit is not located within the 
                        jurisdiction of any public housing agency that 
                        administers vouchers.
                            ``(iv) Inapplicability of goals.--
                        Subparagraph (C) shall not apply to a housing 
                        assistance payment contract pursuant to this 
                        subparagraph.
                            ``(v) Disregard of assistance under 
                        percentage limitation.--Amounts provided 
                        pursuant to this subparagraph shall not be 
                        considered for purposes of calculating the 
                        limitation under subparagraph (B).
                            ``(vi) Inapplicability of income-mixing 
                        requirement.--Subparagraph (D) shall not apply 
                        with respect to a housing assistance payments 
                        contract pursuant to this subparagraph.''.

SEC. 105. PRESERVATION OF STATE-FINANCED AFFORDABLE HOUSING.

    (a) Maximum Contract Term.--In the case of a State housing finance 
agency that has entered into a housing assistance payments contract 
with the owner of a housing project for project-based rental assistance 
under section 8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f), using the November 1975 version of form HUD 52645A of the 
Department of Housing and Urban Development, under the Section 8 
Housing Assistance Payment Program for State Housing Finance and 
Development Agencies, if such contract provides that the maximum total 
term of the contract for any dwelling unit shall not exceed a period 
terminating on the date of the last payment of principal due on the 
permanent financing, the Secretary of Housing and Urban Development 
shall treat such provision as providing for a maximum term extending to 
the originally scheduled maturity date of the permanent financing, 
without regard to any prepayment of such permanent financing.
    (b) Amendment to Mark-to-Market Provisions.--Section 524 of the 
Multifamily Assisted Housing Reform and Affordability Act of 1997 is 
amended--
            (1) by redesignating subsection (g) as subsection (i); and
            (2) by inserting after subsection (f) the following new 
        subsection:
    ``(g) State Housing Agency Contracts.--
            ``(1) Rent adjustments for extended contracts.--In the case 
        of a contract for project-based assistance under section 8 of 
        the United States Housing Act of 1937 pursuant to the State 
        Housing Agencies program governed by part 883 of the 
        Secretary's regulations (24 C.F.R. 883), the provisions of this 
        section authorizing the increase of rent levels to comparable 
        market rents shall apply upon the expiration of any contract 
        term, notwithstanding the renewal provisions of the contract. 
        If, at any time during the five-year period ending upon the 
        final expiration date of any such contract, the owner of the 
        housing project assisted under the contract enters into a 
        binding commitment to renew the contract at the rent levels 
        authorized under subsection (a)(4)(A) for an additional five-
        year term beginning upon the final expiration of the contract, 
        the annual rent adjustment during such five-year period ending 
        upon such final expiration date may be to such rent levels.
            ``(2) Projects with debt financing.--In the case of a 
        contract for project-based assistance under section 8 for a 
        project with debt financing provided by a State housing agency 
        or local housing authority, with the approval of the State 
        housing agency or local authority, the owner may terminate the 
        contract and enter into a new contract for project-based 
        assistance under this section for a term of 20 years, subject 
        to the availability of amounts provided by appropriation Acts, 
        but only if the owner enters into an enforceable commitment to 
        preserve the affordability of the project for not fewer than 55 
        years from the date of such contract, subject to the continued 
        provision of rental assistance under section 8 or a comparable 
        program.''.

SEC. 106. PRESERVATION EXCHANGE PROGRAM.

    (a) Establishment of Program.--The Secretary of Housing and Urban 
Development shall carry out a preservation exchange program under this 
section to provide for the transfer of preservation projects to 
purchasers who agree to maintain the projects for use for affordable 
housing.
    (b) Participation.--
            (1) Election.--The Secretary shall provide for owners of 
        preservation projects to elect, in accordance with such 
        procedures as the Secretary shall establish, to participate in 
        the preservation exchange program under this section.
            (2) Transfer of preservation projects.--A selling owner of 
        a preservation project may, in accordance with this section, 
        enter into a contract for transfer of the project to a 
        preservation purchaser during the 12-month period beginning 
        upon such election.
            (3) Offer period.--A selling owner of a preservation 
        project shall agree not to sell, transfer, or further encumber 
        the preservation project during the period of the owner's 
        participation in the program, with respect to such project, 
        except as otherwise provided in this section.
            (4) Compliance with program requirements.--Except as 
        otherwise provided by the Secretary, a preservation project may 
        be sold under the program only if all of the parties to the 
        transaction comply with the requirements of this section.
    (c) Notice of Participation and Certification.--
            (1) Recipients; timing.--Each selling owner shall of a 
        preservation project shall--
                    (A) not later than the date that is 12 months 
                before the date of maturity or expiration of the 
                mortgage on the preservation project, provide written 
                notice of election to participate in the program with 
                respect to the project to--
                            (i) the Secretary;
                            (ii) each tenant of the project;
                            (iii) any public housing agency or other 
                        organization representing tenants of the 
                        preservation project; and
                            (iv) qualified State and local authorities; 
                        and
                    (B) post such notice conspicuously in the common 
                area of the preservation project for the duration of 
                the 12-month period beginning on the date that notice 
                is required to be provided pursuant to subparagraph 
                (A).
            (2) Contents.--Notice required under subparagraph (A) 
        shall--
                    (A) include a statement that the selling owner has 
                elected to participate in the preservation exchange 
                program and to seek a contract for sale of the 
                preservation project to a preservation purchaser within 
                the 12-month period following the date of the notice, 
                or within such other time period as permitted by this 
                section;
                    (B) clearly identify the preservation project;
                    (C) identify, and provide contact information for, 
                the selling owner; and
                    (D) include such other information regarding the 
                preservation project and its potential sale under the 
                program as the Secretary may require, which shall 
                include information concerning any applicable subsidies 
                or restrictions applicable to the preservation project.
            (3) Certification.--Not later than 7 days after completion 
        of all notice requirements of paragraph (1) with respect to a 
        preservation project, the selling owner shall certify in 
        writing to the Secretary that notice to all recipients has been 
        provided as required under this section.
            (4) Notification to congress and public.--Not later than 14 
        days after certification pursuant to paragraph (3) is provided 
        to the Secretary regarding a preservation project, the 
        Secretary shall--
                    (A) provide to the Member of the House of 
                Representatives representing the district in which the 
                project is located, and to the Members of the Senate 
                for the State in which the project is located, a copy 
                of such notice and certification; and
                    (B) make such notice and certification publicly 
                available at an easily identifiable World Wide Web 
                location of the Department of Housing and Urban 
                Development.
    (d) Opportunity To Purchase.--
            (1) Notification; offer.--During the offer period referred 
        to in subsection (b)(3) with respect to a preservation 
        project--
                    (A) the Secretary shall post on an easily 
                identifiable World Wide Web location of the Department 
                of Housing and Urban Development information that 
                identifies the preservation project as eligible for 
                purchase or transfer pursuant to the preservation 
                exchange program, additional information about the 
                property, as determined by the Secretary, and the 
                identity of a contact person on behalf of the selling 
                owner who may be contacted by a potential preservation 
                purchaser; and
                    (B) a potential preservation purchaser may make an 
                offer to purchase the preservation project, in 
                accordance with the requirements of this section, by 
                providing the offer, in writing, to the selling owner 
                and a copy of the offer to the Secretary.
            (2) Determination of bona fide offer.--During the 21-day 
        period beginning upon receipt of a copy of an offer to purchase 
        a preservation project made by a potential preservation 
        purchaser pursuant to paragraph (1)(B) (in this subsection 
        referred to as the ``review period''), the Secretary shall--
                    (A) review the terms of the offer to purchase and 
                determine whether it is a bona fide preservation 
                purchase offer meeting the requirements of subsection 
                (e); and
                    (B) provide notice of such determination to the 
                parties.
        If the parties do not receive such notice of such determination 
        from the Secretary during the review period, notwithstanding 
        subsection (i)(1), the offer shall be considered for purposes 
        of this section to be a bona fide preservation purchase offer.
            (3) Tolling of other periods.--During the review period for 
        an offer to purchase a preservation project or until earlier 
        receipt of a determination from the Secretary under paragraph 
        (2), all other time periods set forth in this section shall be 
        tolled with respect to such preservation project.
            (4) Action on offer.--With respect to a bona fide offer to 
        purchase a preservation project made by a potential 
        preservation purchase, during the 30-day period that begins 
        upon the earlier of the receipt of a determination from the 
        Secretary under paragraph (2) regarding the offer or the 
        expiration of the review period, the selling owner shall accept 
        or reject the offer, subject to the conditions and requirements 
        set forth in this section.
            (5) Accepted offer; contract.--If a selling owner accepts a 
        bona fide preservation purchase offer made by a potential 
        preservation purchaser, such parties shall promptly enter into 
        a binding contract that reflects the terms of the accepted 
        offer.
            (6) Declined offer.--If a selling owner declines to accept 
        any bona fide preservation purchase offer made to the owner, 
        such owner shall--
                    (A) provide to the Secretary a written explanation 
                of the basis for its decision; and
                    (B) repay to the Secretary all funds it received as 
                a participant in the program, plus interest at rate 
                determined by the Secretary at the time the funds were 
                made available.
    (e) Bona Fide Preservation Purchase Offer.--An offer to purchase a 
preservation project shall constitute a bona fide preservation purchase 
offer meeting the requirements of this subsection only if the offer--
            (1) includes an agreement by the preservation purchaser to 
        enter into such agreements, which shall be contained in the 
        deed or other recorded instruments for the preservation 
        project, as specified by the Secretary, that ensure that the 
        preservation project will remain affordable for very-low income 
        families for a period of not less than 40 years from the date 
        of transfer pursuant to sale under such offer, utilizing all 
        available assistance, including renewal of existing Federal 
        assistance contracts and leasing to holders of tenant-based 
        assistance;
            (2) includes an agreement by the preservation purchaser to 
        accept any contract for project-based rental assistance 
        applicable to the preservation project, notwithstanding the 
        transfer of the preservation housing to the preservation 
        purchaser, including the renewal of such contract upon 
        expiration, for a period of not less than 40 years from the 
        date of transfer;
            (3) requires that the preservation purchaser execute such 
        agreements, which shall be contained in the deed or other 
        recorded instruments for the preservation housing, as specified 
        by the Secretary, that ensure that the preservation project and 
        related facilities will remain affordable for very-low income 
        households for a period of not less that 40 years from the date 
        of transfer, using all available assistance, including renewal 
        of existing Federal assistance contracts and leasing to holders 
        of tenant-based assistance; and
            (4) includes such other terms and conditions as may be 
        required by the Secretary.
    (f) Incentives.--Notwithstanding any other provision of law or 
regulation, the Secretary may, with respect to a preservation project--
            (1) suspend physical inspections and management reviews of 
        the project, during the period that begins upon the provision 
        to the Secretary by the selling owner notice of its election to 
        participate in the program and ending upon the completion of 
        the transfer of the preservation project to a preservation 
        purchaser or termination of participation of the selling owner 
        in the program;
            (2) streamline approval of requests for prepayment, 
        assignment of Housing Assistance Payments contracts, transfer 
        of physical assets, and other activities and functions, to 
        facilitate the sale or transfer under the program to a 
        preservation purchaser;
            (3) release project resources, in the form of reserve for 
        replacement funds or project residual receipts, to the selling 
        owner for purposes related to preparation of the preservation 
        project for sale under the program, applicable pre-development 
        costs, or transaction costs related to sale or transfer of the 
        preservation project under the program;
            (4) provide advances in the form of a forgivable loan for 
        the selling owner to be used for direct predevelopment and 
        administrative costs for preparation of the preservation 
        project for sale under the program, and the transfer of the 
        preservation project to the preservation purchaser, but not 
        including compensation for property value beyond the purchase 
        price;
            (5) provide grants or loans to a preservation purchaser who 
        has entered into a bona fide preservation purchase contact 
        under the program with the selling owner, which grant or loan 
        funds shall be used for to purchase or rehabilitate the 
        preservation project; and
            (6) provide grants or loans pursuant to section 102(a) of 
        this Act to a preservation purchaser who has entered into a 
        bona fide preservation purchase contract under the program with 
        the selling owner.
    (g) Release of Selling Owner.--Upon closing of the sale or transfer 
of the preservation project pursuant to this section--
            (1) the selling owner shall be released from obligations 
        with respect to the preservation project under--
                    (A) the new construction, substantial 
                rehabilitation, moderate rehabilitation, property 
                disposition, and loan management set-aside programs, 
                and any other program providing project-based 
                assistance, under section 8 of the United States 
                Housing Act of 1937 (42 U.S.C. 1437f);
                    (B) the below-market interest rate program under 
                paragraphs (3) and (5) of section 221(d)(3) of the 
                National Housing Act (12 U.S.C. 1715(d));
                    (C) section 236 of the National Housing Act (12 
                U.S.C. 1715z-1);
                    (D) section 202 of the Housing Act of 1959 (12 
                U.S.C. 1701q);
                    (E) the rent supplement program under section 101 
                of the Housing and Urban Development Act of 1965 (12 
                U.S.C. 1701s); or
                    (F) other Federal affordable housing programs, as 
                identified by the Secretary; and
            (2) the preservation purchaser agrees--
                    (A) to operate the preservation project in 
                accordance with the provisions of this section and any 
                agreements entered into pursuant to this section; and
                    (B) to maintain any existing limits or restrictions 
                on the amount of tenant rents, rent contributions, or 
                income eligibility of tenants, or on the use of the 
                preservation project, as required by the Secretary, for 
                a period of not less than 40 years from the transfer 
                date, except that rents may be increased to the extent 
                that additional project-based assistance is provided by 
                the Secretary.
    (h) Renewal of Participation in Program.--
            (1) In general.--A selling owner who has participated in 
        the program in good faith for 12 months and does not receive or 
        does not reject a bona fide preservation purchase offer during 
        that 12-month period of participation may seek approval of the 
        Secretary to renew its participation for an additional 12-month 
        period. A request for renewal under this paragraph shall be 
        subject to the same provisions of subsection (c) applicable to 
        a notice of election to participate in the program.
            (2) Timing.--A request for renewal may be made, but shall 
        not be required to be made, immediately upon the expiration of 
        the selling owner's initial 12-month period of participation in 
        the program.
            (3) Approval.--The Secretary may, at the discretion of the 
        Secretary, approve or reject a renewal request under this 
        subsection. A renewal request that is not accepted or rejected 
        by the Secretary during the 30-day period beginning upon 
        receipt of the request by the Secretary shall be considered for 
        purposes of this section to have been accepted.
            (4) Terms.--A selling owner who renews participation in the 
        program shall be subject to the requirements and procedures for 
        participation under this section for the initial term of 
        participation.
    (i) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Bona fide preservation purchase offer.--The term ``bona 
        fide preservation purchase offer'' means an offer to purchase a 
        preservation project that has been determined by the Secretary, 
        pursuant to subsection (d)(2) to meet the requirements under 
        subsection (e).
            (2) Eligible jurisdiction.--The term ``eligible 
        jurisdiction'' means an area so designated by the Secretary for 
        purposes of this section.
            (3) Preservation contract.--The term ``preservation 
        contract'' means any contract for sale or transfer of a 
        preservation project pursuant to the provisions of this 
        section.
            (4) Preservation exchange program.--The terms 
        ``preservation exchange program'' and ``program'' mean the 
        preservation exchange program authorized by, and established 
        pursuant to, this section.
            (5) Preservation project.--The term ``preservation 
        project'' means any multifamily housing project that--
                    (A) has been specifically identified to the 
                Secretary by a selling owner as available for purchase 
                or transfer under the preservation exchange program;
                    (B) is located in an eligible jurisdiction;
                    (C) is financed by a loan or mortgage that will 
                mature or expire within 5 years of the election by the 
                selling owner to participate in the preservation 
                exchange program; and
                    (D) is insured or assisted under--
                            (i) the new construction, substantial 
                        rehabilitation, moderate rehabilitation, 
                        property disposition, and loan management set-
                        aside programs, or any other program providing 
                        project-based assistance, under section 8 of 
                        the United States Housing Act of 1937 (42 
                        U.S.C. 1437f);
                            (ii) the below-market interest rate program 
                        under paragraphs (3) and (5) of section 
                        221(d)(3) of the National Housing Act (12 
                        U.S.C. 1715(d));
                            (iii) section 236 of the National Housing 
                        Act (12 U.S.C. 1715z-1);
                            (iv) section 202 of the Housing Act of 1959 
                        (12 U.S.C. 1701q);
                            (v) the rent supplement program under 
                        section 101 of the Housing and Urban 
                        Development Act of 1965 (12 U.S.C. 1701s); or
                            (vi) any other Federal affordable housing 
                        program, as identified by the Secretary.
            (6) Preservation purchaser.--The term ``preservation 
        purchaser'' means any person or entity that acquires a 
        preservation project pursuant to an agreement to participate in 
        the preservation exchange program.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (8) Selling owner.--The term ``selling owner'' means, with 
        respect to a preservation project, the person or entity that 
        owns the project and that has elected to participate in the 
        preservation exchange program with respect to such project.
    (j) Effect of Participation.--During the time that the owner is 
participating in the preservation exchange program with respect to a 
preservation project, such owner and such project shall not be subject 
to the requirements under section 107 of this Act.
    (k) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as may be necessary to carry 
out this section, including amounts for the provision of additional 
educational services and training and technical assistance and to 
provide information to the public and to potential participants in the 
preservation exchange program to facilitate participation in the 
program, and for other activities to promote the preservation of 
affordable housing.
    (l) Regulations.--The Secretary shall issue any regulations 
necessary to carry out this section.

SEC. 107. FEDERAL FIRST RIGHT OF REFUSAL.

    (a) Notice of Termination of Affordability Restrictions.--
            (1) Notice of termination.--
                    (A) Requirement.--Except as provided in 
                subparagraph (D), an owner of covered housing shall 
                provide written notice under subparagraph (B) of any 
                termination of the affordability restrictions affecting 
                the covered housing, not later than one year, but no 
                earlier than three years, before such termination to--
                            (i) all tenants and the resident council, 
                        if any, of the covered housing;
                            (ii) the State housing agency or comparable 
                        State agency of the State in which the housing 
                        is located; and
                            (iii) the Secretary.
                Nothing in this section shall prohibit an owner from 
                taking actions to terminate an affordability 
                restriction during any notice period under this 
                section; except that an owner shall comply with all of 
                the notice terms and restrictions pursuant to 
                paragraphs (2) and (3).
                    (B) Contents.--Written notice under this 
                subparagraph with respect to covered housing shall 
                include--
                            (i) the address of the covered housing;
                            (ii) the name and address of the owner;
                            (iii) a statement identifying that an 
                        affordability restriction may terminate;
                            (iv) the date on which each affordability 
                        restriction may terminate; and
                            (v) such other information as may be 
                        required by the Secretary.
                    (C) Single notice covering multiple terminations.--
                In any case in which more than one termination is 
                scheduled to occur within a 12-month period, an owner 
                may provide a single written notice covering all such 
                terminations, but only if the notice is provided in 
                accordance with subparagraph (A) at least one year 
                before the earliest such termination and the notice 
                otherwise complies with this paragraph.
                    (D) Transition.--Subparagraph (A) shall not apply 
                with respect to covered housing subject to an 
                affordability restriction that, as of the effective 
                date under subsection (j), has less than two years of 
                applicability remaining. Such covered housing shall be 
                subject to paragraph (5).
            (2) Notice of intent to complete termination.--An owner of 
        covered housing shall not complete a termination or allow a 
        termination to occur with respect to such housing unless, not 
        later than one year before the completion of the last 
        termination event affecting the covered housing, the owner 
        provides the entities identified in paragraph (1) with written 
        notice of intent to complete such termination. The notice shall 
        include--
                    (A) the address of the covered housing;
                    (B) the name and address of the owner;
                    (C) the date on which the owner intends to complete 
                termination; and
                    (D) such other information as may be required by 
                the Secretary.
            (3) Opportunity for purchase by secretary.--Except as 
        provided in subsection (d), an owner of covered housing shall 
        not sell the covered housing at any time before--
                    (A) providing notice, in writing, to the parties 
                identified in paragraph (1) of the owner's intention to 
                sell the property; and
                    (B) offering the Secretary the opportunity to 
                purchase the property pursuant to subsection (b).
            (4) Delivery of notice.--
                    (A) In general.--Except as provided in subparagraph 
                (B), any notice required by this subsection shall be 
                deemed to have been provided when delivered in person 
                or mailed by certified or registered mail, return 
                receipt requested, to the party to whom notice is 
                required.
                    (B) Notice to tenant.--With respect to any notice 
                to tenants required by this subsection, any such notice 
                shall be deemed to have been provided upon the when--
                            (i) the notice is delivered in hand to the 
                        tenant or an adult member of the tenant's 
                        household;
                            (ii) the notice is sent by first class 
                        mail; or
                            (iii) a copy is left in or under the door 
                        of the tenant's dwelling unit.
            (5) Transition.--Notwithstanding paragraph (1) of this 
        subsection, an owner of covered housing who, on the effective 
        date under subsection (j), has less than one year remaining 
        before the date when the affordability restriction will cease 
        to apply to such housing, shall not be required to give the 
        one-year notice required by paragraph (1), but shall provide 
        such notice within 90 days after the effective date under 
        subsection (j). Notwithstanding paragraph (2) of this 
        subsection, an owner who, on the effective date under 
        subsection (j), has less than one year remaining before a 
        termination shall not be required to give the one-year notice 
        required by paragraph (2), but shall provide such notice within 
        90 days after such effective date.
            (6) Effect of offer, purchase, or sale.--The notice 
        requirements of this subsection shall not be affected by the 
        status of an offer, purchase contract, or sale under subsection 
        (b) or (c).
    (b) Right of Secretary to Make Offer.--
            (1) Opportunity for purchase by secretary.--An owner of 
        covered housing shall offer the Secretary an opportunity to 
        purchase the covered housing, in accordance with this 
        subsection, before entering into any agreement to sell such 
        housing to a third party. This paragraph may not be construed 
        to establish any obligation on the part of an owner of covered 
        housing to enter into an agreement to sell such housing to the 
        Secretary.
            (2) Assignee of secretary.--
                    (A) Authority to select.--The Secretary may select 
                an assignee to act on behalf of the Secretary under 
                this subsection as the purchaser of covered housing and 
                shall give the owner written notice of any assignee 
                selected.
                    (B) Agreement.--The Secretary shall enter into a 
                written agreement with any assignee selected, which 
                shall provide that the assignee, and any of its 
                successors or assigns, agree to preserve the 
                affordability of the covered housing. Upon entering 
                into such an agreement, the assignee shall assume all 
                rights and responsibilities of the Secretary as a 
                prospective purchaser under this subsection and 
                subsection (c).
                    (C) Revocation.--At any time before a sale of 
                covered housing under this subsection or subsection 
                (d), the Secretary may revoke the selection and 
                designation of an assignee with respect to the covered 
                housing pursuant to this paragraph and assume the 
                rights and responsibilities in the Secretary's own 
                capacity or select a new assignee and enter into an 
                agreement under subparagraph (B) with such assignee. No 
                action under this subparagraph shall operate to extend 
                or alter any time periods for performance under this 
                section or in any purchase contract entered into 
                pursuant to this section.
            (3) Purchase offer.--
                    (A) Timing.--During the 90-day period with respect 
                to covered housing that begins upon receipt of notice 
                pursuant to subsection (a)(3) of the owner's intention 
                to sell the covered housing, the Secretary may submit 
                an offer to the owner to purchase the covered housing.
                    (B) Failure to submit.--Failure by the Secretary to 
                submit an offer to purchase covered housing during the 
                period under subparagraph (A) shall constitute an 
                irrevocable waiver of the Secretary's rights under this 
                subsection and the owner may sell the covered housing 
                subject to subsection (c).
                    (C) Acceptance.--If the owner accepts the initial 
                or any revised offer of the Secretary, the owner and 
                the Secretary shall enter into such other agreements as 
                are necessary and appropriate to complete the purchase. 
                If the owner and the Secretary have not entered into an 
                agreement for the Secretary to purchase the property 
                within 90 days after receipt of the notice pursuant to 
                subsection (a)(3), the owner may enter into an 
                agreement to sell the property to a purchaser of the 
                owner's choice, subject to subsection (c).
            (4) Availability of documents.--
                    (A) Requirement.--If the Secretary makes a request 
                pursuant to this subparagraph to the owner of covered 
                housing at any time after notice required under 
                subsection (a)(1) has been provided, the owner shall, 
                within 10 days after receiving the request, make the 
                documents described in subparagraph (B) available to 
                the Secretary for review and photocopying during normal 
                business hours at the owner's principal place of 
                business or at a commercial photocopying facility.
                    (B) Covered documents.--The documents described in 
                this subparagraph with respect to covered housing shall 
                include--
                            (i) any existing architectural plans and 
                        specifications of the covered housing;
                            (ii) itemized lists of monthly operating 
                        expenses and capital expenditures for the 
                        covered housing in each of the two preceding 
                        calendar years;
                            (iii) any capital needs studies or market 
                        studies for the covered housing that have been 
                        submitted to a Federal, State, or local agency 
                        in the preceding three years;
                            (iv) utility consumption rates for the 
                        covered housing for preceding year;
                            (v) the last two audited annual financial 
                        statements and physical inspection reports for 
                        the covered housing filed with Federal, State, 
                        or local agencies;
                            (vi) the most recent rent roll for the 
                        covered housing showing then-current vacancies 
                        and rent arrearages;
                            (vii) a statement of the approximate 
                        annualized vacancy rate for the covered housing 
                        for each of the two preceding calendar years; 
                        and
                            (viii) any other documents relating to the 
                        covered housing that the Secretary considers 
                        appropriate.
                    (C) Protection of information.--Documents obtained 
                pursuant to a request under this paragraph shall not be 
                considered public records, and the Secretary shall not 
                make such documents available to the public without the 
                written consent of the owner or pursuant to a court 
                order, except that disclosure of such documents may be 
                made to potential funding sources, regulatory agencies, 
                or agents or consultants of the Secretary in connection 
                with a purchase transaction pursuant to this 
                subsection, subject to appropriate confidentiality 
                agreements.
            (5) Inspections.--
                    (A) In general.--Subject to execution of an access 
                and confidentiality agreement in accordance with 
                subparagraph (B), upon request by the Secretary and 
                with appropriate notice, the owner shall permit 
                reasonable inspections of the dwelling units, building 
                systems, common areas, and common grounds of the 
                covered housing by agents, consultants, and 
                representatives of the Secretary or the assignee of the 
                Secretary, including inspections related to 
                environmental, engineering, structural, or zoning 
                matters.
                    (B) Access and confidentiality agreement.--An 
                access and confidentiality agreement in accordance with 
                this subparagraph is an agreement, entered into by the 
                owner of covered housing and any agents, consultants, 
                or representatives of the Secretary or the assignee of 
                the Secretary, in a form approved by the Secretary, 
                with respect to such matters as insurance to be carried 
                by the inspectors of the covered housing, indemnities 
                of the owner, restrictions on invasive testing, 
                restoration requirements, the timing of such 
                inspections, and the requirement to maintain 
                confidentiality with respect to all matters discovered.
            (6) Notification to tenants.--Not later than 30 days after 
        the Secretary submits an offer to purchase the covered housing 
        pursuant to subsection (c), the Secretary shall notify tenants 
        in the housing development of its plans.
    (c) First Right of Refusal.--
            (1) Sale to third party.--An owner of covered housing may 
        execute a purchase contract with a third party to sell the 
        covered housing pursuant to this subsection during the one-year 
        period that begins upon the date on which notice for such 
        housing was provided to the Secretary pursuant to subsection 
        (a)(3). After such period expires, the owner may not sell the 
        housing without providing notice of such sale in accordance 
        with subsection (a)(3)(A).
            (2) Matching of third party offer by secretary or other 
        party.--
                    (A) Notice of third party purchase contract.--Upon 
                execution of a third party purchase contract for 
                covered housing, the owner shall, within 7 days, submit 
                a copy of the contract to the Secretary, the resident 
                council, if any, all tenants, and the State housing 
                agency.
                    (B) Purchase by secretary and assignment of right 
                to match offer.--In the case of covered housing for 
                which a third party purchase contract is executed, the 
                Secretary may--
                            (i) elect to purchase the housing under a 
                        contract under subparagraph (D); or
                            (ii) assign the right to match the third 
                        party offer for the covered housing under a 
                        contract under subparagraph (D).
                If the Secretary elects to take action under clause (i) 
                or (ii), the Secretary shall take such action, or 
                execute such other agreement as is acceptable to the 
                owner and the Secretary, during the 30-day period that 
                begins upon receipt by the Secretary of a copy of the 
                third party purchase contract.
                    (C) Extension of time periods.--The time periods 
                set forth in this paragraph may be extended by 
                agreement between the owner and the Secretary.
                    (D) Terms of matching contract.--The purchase 
                contract between the owner and the Secretary or the 
                Secretary's assignee pursuant to this paragraph shall 
                contain the same material terms and conditions as the 
                executed third party purchase contract, except that the 
                purchase contract between the owner and the assignee 
                shall provide at least the following terms:
                            (i) Amount of earnest money deposit.--The 
                        amount of the earnest money deposit shall not 
                        exceed the lesser of--
                                    (I) the amount of the deposit 
                                provided under the third party purchase 
                                contract;
                                    (II) 2 percent of the sale price; 
                                or
                                    (III) $250,000.
                            (ii) Escrow of earnest money deposit.--The 
                        earnest money deposit shall be held under 
                        commercially reasonable terms by an escrow 
                        agent selected jointly by the owner and the 
                        Secretary or the assignee of the Secretary.
                            (iii) Refunding of earnest money deposit.--
                        The earnest money deposit shall be refundable 
                        for not less than 90 days from the date of 
                        execution of the purchase contract or such 
                        longer period as provided for in the third 
                        party purchase contract; except that if the 
                        owner unreasonably delays the buyer's ability 
                        to conduct due diligence during the 90-day 
                        period, the earnest money deposit shall 
                        continue to be refundable for a period greater 
                        than 90 days.
                            (iv) Time for performance.--The time for 
                        performance shall be no sooner than 240 days 
                        after the date of the execution of the purchase 
                        contract, or such later date provided for in 
                        the third party purchase contract.
            (3) Failure to execute purchase contract by secretary or 
        assignee.--If the Secretary, or the assignee, fails to execute 
        a proposed purchase contract during the 30-day period under 
        paragraph (2)(B) (as such period may be extended pursuant to 
        paragraph (2)(C)), the owner may, during the 2-year period 
        beginning upon expiration of such 30-day (or extended) period, 
        complete a sale of the owner's covered housing to a third 
        party, except as provided in paragraph (5). After the 
        expiration of such 2-year period, the owner may not sell the 
        housing without, after such expiration, complying with 
        paragraph (3) of subsection (a) and with this subsection.
            (4) Failure to perform purchase contract by secretary or 
        assignee.--If the Secretary, or the assignee, executes the 
        proposed purchase contract as provided in paragraph (2) but 
        fails to perform as provided in the executed purchase contract, 
        the owner may, during the 2-year period beginning upon the date 
        on which the executed purchase contract terminated, complete a 
        sale of the owner's covered housing to a third party. After the 
        expiration of such 2-year period, the owner may not sell the 
        housing without, after such expiration, complying with 
        paragraph (3) of subsection (a) and with this subsection.
            (5) Counteroffer.--
                    (A) Opportunity.--After receipt of the third party 
                purchase contract provided for in paragraph (2), the 
                Secretary may, during the 30-day period under paragraph 
                (2), make a counteroffer by executing and submitting to 
                the owner an amended proposed purchase contract, or by 
                assigning the right to make such a counteroffer to an 
                assignee.
                    (B) Assignment.--If the Secretary assigns the right 
                under subparagraph (A) to make a counteroffer, the 
                assignee may, during the 15-day period that begins upon 
                such assignment or the remaining period remaining in 
                the 30-day period under paragraph (2), whichever is 
                longer, make such a counteroffer.
                    (C) Failure by secretary to execute or assign.--
                Failure by the Secretary to execute or assign the 
                purchase contract or submit a counteroffer during the 
                30-day period under paragraph (2) shall constitute a 
                waiver of the Secretary's right to purchase under this 
                subsection.
                    (D) Period for owner response.--If the Secretary or 
                an assignee submits a counteroffer pursuant to this 
                paragraph, the owner may, during the 30-day period 
                beginning upon receipt of the amended proposed purchase 
                contract, execute the amended proposed purchase 
                contract or reject the counteroffer in writing.
                    (E) Rejection by owner.--If the owner rejects the 
                counteroffer, the owner may, during the 2-year period 
                beginning on the date of such rejection, complete a 
                sale of the covered housing to a third party. If such 
                sale is upon economic terms and conditions that are the 
                same as, or materially more favorable to the proposed 
                purchaser than, the economic terms and conditions in 
                the proposed purchase contract offered by the Secretary 
                or assignee in the Secretary's or assignee's 
                counteroffer, the owner shall, within 7 days after such 
                execution, provide a copy of the new third party 
                purchase contract, along with a proposed purchase 
                contract for execution by the Secretary or assignee, 
                which shall contain the same terms and conditions as 
                the executed third party purchase contract. The 
                Secretary or assignee may, during the 30-day period 
                beginning upon receipt of the third party purchase 
                contract and the proposed purchase contract, execute 
                the proposed purchase contract or such other agreement 
                as is acceptable to the owner and the Secretary or 
                assignee.
            (6) Provision of third party contract to secretary.--If any 
        owner executes any purchase contract with a third party during 
        any of the 2-year periods referred to paragraph (3), (4), or 
        (5), the owner shall--
                    (A) not later than 7 after such execution, provide 
                the Secretary with a copy of the new or amended 
                purchase contract executed with respect to the covered 
                housing; and
                    (B) not later than 7 days after the recording or 
                filing of the deed or other document with the registry 
                of deeds or the registry district of the land court of 
                the county in which the affected covered housing is 
                located, provide the Secretary with a copy of any such 
                deed or other document transferring the owner's 
                interest in the covered housing.
            (7) Certification by owner.--Any third party purchase 
        contract, amended third party purchase contract, deed, or any 
        other document transferring the owner's interest in covered 
        housing shall include a certification by the owner that the 
        document is accurate and complete and that there are no other 
        agreements between the owner and the third party buyer, or an 
        affiliate of either, with respect to the sale of the covered 
        housing.
    (d) Exemptions.--
            (1) Inapplicability of first right of refusal.--Subsection 
        (b) and (c) shall not apply to any of the following actions:
                    (A) A government taking of covered housing by 
                eminent domain or a negotiated purchase in lieu of 
                eminent domain.
                    (B) A forced sale of covered housing pursuant to a 
                foreclosure.
                    (C) A deed-in-lieu of foreclosure for covered 
                housing.
                    (D) A proposed sale of covered housing to a 
                purchaser pursuant to terms and conditions that 
                preserve affordability, as determined by the Secretary 
                (including sales or transfers pursuant to section 106 
                of this Act).
                    (E) A proposed sale of covered housing--
                            (i) that the Secretary has determined was 
                        not, as of the effective date under subsection 
                        (j), receiving Federal assistance nor subject 
                        to regulation by any of the programs identified 
                        in subsection (g)(4), other than the program 
                        identified in subsection (g)(4)(A); and
                            (ii) under which the buyer has agreed, as 
                        provided in a regulatory agreement, to renew in 
                        whole, all contracts for project-based 
                        assistance under section 8 of the United States 
                        Housing Act of 1937 (42 U.S.C. 1437f) or any 
                        successor program thereto; such renewal shall 
                        be subject to the availability, at the time of 
                        such renewal, of such assistance to the owner 
                        on economic terms and conditions that are 
                        comparable to the existing project-based rental 
                        assistance contract.
                    (F) A proposed sale of covered housing to an 
                affiliate of the owner that is not a termination, as 
                determined by the Secretary.
                    (G) A proposed sale of covered housing with respect 
                to which the first scheduled termination will occur 
                more than 15 years after the date of the sale.
                    (H) A bona fide proposed sale pursuant to a 
                purchase contract in effect on the effective date under 
                subsection (j).
            (2) Requirement to submit request.--The Secretary shall 
        make a determination that an exemption under subparagraph (D), 
        (E), or (F) of paragraph (1) applies only pursuant to a written 
        request for such an exemption submitted by the owner of the 
        covered housing. Such a request shall include the name and 
        address of any resident council for the covered housing. The 
        Secretary shall provide a copy of the Secretary's determination 
        under subparagraph (D), (E), or (F) of paragraph (1) to the 
        owner and the resident council.
    (e) Regulatory Agreement.--A purchase of covered housing by the 
Secretary or an assignee of the Secretary pursuant to this section 
shall be subject to a regulatory agreement. Such a regulatory agreement 
shall not contain any terms or conditions that would preclude an owner 
or purchaser from participating in, or diminishing the benefits that an 
owner would otherwise receive by participating in the mark-to-market 
program of the Department under Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1437f note).
    (f) Certificate of Compliance.--
            (1) Issuance.--An owner of covered housing who has complied 
        with subsections (a), (b), and (c), which has not resulted in a 
        purchase by the Secretary or the assignee of the Secretary of 
        the covered housing, or which has resulted in a sale of the 
        covered housing pursuant to subsection (c), may apply to the 
        Secretary for a certificate of compliance by submitting a 
        written request for the certificate, in such form and together 
        with such documentation as the Secretary shall require. The 
        Secretary shall issue the certificate of compliance within 30 
        days after receipt of the application if the Secretary 
        determines that the owner has complied with said subsections 
        (a), (b), and (c) and such certificate shall establish the 
        owner's compliance to the satisfaction of the Secretary.
            (2) Filing.--An owner obtaining a certificate of compliance 
        with respect to covered housing shall file the certificate with 
        the registry of deeds or the registry district of the land 
        court of the county in which the covered housing is located not 
        later than one year after the date of issuance.
            (3) Provision to tenants.--Upon request by any tenant of 
        the affected covered housing, the owner shall provide a copy of 
        the owner's request for a certificate of compliance.
    (g) Relationship With Other Laws.--This section shall not preempt 
any State or local law that has established a right of first refusal to 
preserve affordable housing that is on terms and conditions that are 
comparable to this section, establishes such a right after the 
effective date under subsection (j). Any covered housing located in a 
State or locality with such a right of first refusal shall not be 
subject to this section.
    (h) Definitions.--For the purposes of this section, the following 
definitions shall apply:
            (1) Affiliate.--The term ``affiliate'' means an entity 
        owned or controlled by an owner or under common control with 
        the owner.
            (2) Affordability restriction.--The term ``affordability 
        restriction'' means, with respect to covered housing, a limit 
        on rents that an owner may charge for occupancy of a rental 
        unit in the housing or a limit on tenant income for persons or 
        families seeking to qualify for admission to such housing.
            (3) Assignee.--The term ``assignee'' means a State agency, 
        local or regional housing authority, nonprofit or for profit 
        corporation, or other entity qualified to do business in the 
        affected State, that is selected by the Secretary to operate 
        covered housing that is decent, safe, and sanitary affordable 
        housing in a manner to be determined by the Secretary.
            (4) Covered housing.--The term ``covered housing'' means a 
        housing unit or development that receives Federal assistance 
        under any of the following programs or provisions:
                    (A) The programs under section 8 of the United 
                States Housing Act of 1937 (42 U.S.C. 1437f) for new 
                construction, substantial rehabilitation, moderate 
                rehabilitation, property disposition, and loan 
                management set-aside, and any other Federal program 
                providing project-based rental assistance.
                    (B) The Federal program for low-income housing tax 
                credits under section 42 of the Internal Revenue Code 
                of 1986 (26 U.S.C. 42).
                    (C) The program for rent supplement assistance 
                under section 101 of the Housing and Urban Development 
                Act of 1965 (12 U.S.C. 1701s).
                    (D) Section 202 of the Housing Act of 1959 (12 
                U.S.C. 1701q).
                    (E) The below-market interest rate program under 
                paragraphs (3) and (5) of 221(d)(3) of the National 
                Housing Act (12 U.S.C. 1715(d) (3) and (5)).
                    (F) Section 221(d)(4) of the National Housing Act 
                (12 U.S.C. 1715(d)(4)), to the extent the project's 
                rents are restricted pursuant to a government 
                agreement.
                    (G) A contract under section 236(f)(2) of the 
                National Housing Act (12 U.S.C. 1715z-1(f)(2)).
                    (H) Section 236 of the National Housing Act (12 
                U.S.C. 1715z-1) and any comparable State program 
                providing for interest reduction payments or rental 
                assistance payments.
                    (I) Sections 514, 515, and 516 of the Housing Act 
                of 1949 (42 U.S.C. 1484, 1485, and 1486).
                    (J) Section 521 of the Housing Act of 1949 (42 
                U.S.C. 1490a).
                    (K) The urban development action grant program 
                under section 119 of the Housing and Community 
                Development Act of 1974 (42 U.S.C. 5318), to the extent 
                that the affordability of dwelling units subject to 
                such program are restricted pursuant to a government 
                agreement.
                    (L) The rental development grant program under 
                section 17(d) of the United States Housing Act of 1937 
                (42 U.S.C. 1437o), as in effect before October 1, 1989, 
                to the extent that rents of a project assisted under 
                such program are restricted pursuant to a government 
                agreement.
            (5) Department.--The term ``Department'' means the 
        Department of Housing and Urban Development.
            (6) Low-income family.--The term ``low-income family'' has 
        the meaning given such term in section 3(b) of the Unites 
        States Housing Act of 1937 (42 U.S.C. 1437a(b)).
            (7) Owner.--The term ``owner'' means, with respect to 
        covered housing, the person, firm, partnership, corporation, 
        trust, organization, limited liability company, or other 
        entity, or its successors or assigns, that holds title to the 
        housing.
            (8) Prepayment.--The term ``prepayment'' means--
                    (A) the payment in full, or the refinancing, of a 
                federally insured or federally held mortgage loan 
                indebtedness prior to the original maturity date,
                    (B) the voluntary cancellation of mortgage 
                insurance on covered housing, or
                    (C) the payment in full of a government contract,
        any of which would have the effect of removing (i) the 
        affordability restrictions applicable to covered housing, or 
        (ii) a requirement to renew any such affordability restrictions
            (9) Purchase contract.--The term ``purchase contract'' 
        means a binding written agreement under which an owner agrees 
        to sell covered housing including, without limitation, a 
        purchase and sale agreement, contract of sale, purchase option, 
        or other similar instrument.
            (10) Resident council.--
                    (A) In general.--The term ``resident council'' 
                means, with respect to covered housing, any 
                incorporated nonprofit organization or association 
                that--
                            (i) is representative of the residents of 
                        the covered housing;
                            (ii) adopts written procedures providing 
                        for the election of officers on a regular 
                        basis; and
                            (iii) has a democratically elected 
                        governing board, elected by the residents of 
                        the covered housing.
                    (B) Limitation.--No owner of covered housing or 
                other third party shall be required to ascertain an 
                organization's or association's compliance with the 
                requirements of subparagraph (A).
            (11) Sale.--
                    (A) In general.--The term ``sale'' means an act by 
                which an owner conveys, transfers, or disposes property 
                by deed or otherwise, whether through a single 
                transaction, or a series of transactions, during a 2-
                year period.
                    (B) Limitation.--Such term does not include 
                disposition of covered housing by an owner to an 
                affiliate of such owner.
            (12) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (13) State housing agency.--The term ``State housing 
        agency'' means the department of housing or department of 
        housing and community development of a State, or any comparable 
        State agency.
            (14) Tenant.--The term ``tenant'' means, with respect to 
        covered housing, a person entitled to possession or occupancy 
        of a rental unit within the covered housing, including a 
        subtenant, lessee, and sublessee.
            (15) Termination.--The term ``termination'' means, with 
        respect to covered housing, the date that--
                    (A) the mortgage or loan for the housing matures 
                and the affordability restrictions applicable to the 
                housing because of assistance for the housing pursuant 
                to a program referred to in paragraph (4) terminate 
                with respect to the housing;
                    (B) an assistance contract under a program referred 
                to in paragraph (4) for the housing that is not 
                renewed, terminates, or expires;
                    (C) in the case of housing that is not eligible 
                low-income housing, as such term is defined in section 
                229 of the Low-Income Housing Preservation and Resident 
                Homeownership Act of 1990 (12 U.S.C. 4119), the 
                mortgage or loan that covers the housing is prepaid or 
                an insurance contract that covers the housing 
                terminates; or
                    (D) use restrictions imposed with respect to the 
                housing pursuant to the Emergency Low Income Housing 
                Preservation Act of 1987 expire.
    (i) Regulations.--The Secretary shall issue regulations to carry 
out this section not later than the effective date under subsection 
(j). This subsection shall take effect upon the date of the enactment 
of this Act.
    (j) Effective Date.--Except as otherwise specifically provided in 
this section, this section shall take upon the expiration of the 180-
day period beginning on the date of the enactment of this Act.

SEC. 108. AMENDMENT TO LOW-INCOME HOUSING PRESERVATION AND RESIDENT 
              HOMEOWNERSHIP ACT OF 1990.

    Section 232 of the Low-Income Housing Preservation and Resident 
Homeownership Act of 1990 (12 U.S.C. 4122) is amended--
            (1) in subsection (a), by striking ``No State'' and 
        inserting ``Except as provided in subsection (c), no State''; 
        and
            (2) by adding at the end the following new subsection:
    ``(c) Inapplicability to Housing for Which No Plan of Action Is 
Executed.--Preemption under subsection (a) shall not apply to eligible 
low-income housing for which an owner has not executed a plan of action 
for incentives under this subtitle.
    ``(d) Clarification of Congressional Intent Regarding Federal 
Preemption.--State and local laws intended to further the preservation 
of affordable housing or to protect tenants when owners propose to 
terminate their participation in Federal affordable housing programs 
are not preempted by Federal law, except as expressly required by the 
terms of any applicable Federal statute.''.

SEC. 109. PRESERVATION OF HUD-HELD AND HUD-OWNED BUILDINGS.

    (a) Use of All Available Enforcement and Intervention Tools.--To 
maximize the preservation of existing housing assisted by the 
Department of Housing and Urban Development, the Secretary of Housing 
and Urban Development shall utilize all available enforcement and 
intervention tools to stabilize properties in distress, including 
acting as mortgagee-in-possession, accepting deeds in lieu of 
foreclosure from owners, and exercising rights under applicable program 
contacts and regulations.
    (b) Management and Disposition Authority.--Subsection (a) of 204 of 
the Departments of Veterans Affairs and Housing and Urban Development, 
and Independent Agencies Appropriations Act, 1997 (12 U.S.C. 1715z-
11a(a)) is amended--
            (1) by striking ``During'' and all that follows through 
        ``and thereafter, the provision of'' and inserting ``In 
        managing and disposing of multifamily properties that are owned 
        by the Secretary or that have mortgages held by the Secretary, 
        during any fiscal year, the Secretary may provide'';
            (2) by striking ``and multifamily mortgages held by the 
        Secretary''; and
            (3) by striking ``notwithstanding any other provision'' and 
        inserting ``consistent with other applicable provisions''.

SEC. 110. AUTHORITY FOR HUD TO ASSIGN FLEXIBLE SUBSIDY LOANS.

    The Secretary of Housing and Urban Development may, in connection 
with a preservation transaction or transfer of an assisted project to 
an owner that commits to long-term use and affordability restrictions 
with respect to the property to forgive or assign to the transferee any 
debt held by the Secretary that was created pursuant to section 201 of 
the Housing and Community Development Amendments of 1978 (12 U.S.C. 
1715z-1a), if required for the financial viability of the preservation 
transaction or the transfer. If any low-income housing tax credits 
under section 42 of the Internal Revenue Code of 1986 (26 U.S.C. 42), 
State or local funds, tax-exempt housing bonds, or other affordable 
housing resources are being utilized by the purchaser in connection 
with the transfer of the property, the Secretary shall not require any 
repayment in connection with the assignment or forgiveness of the 
mortgages to the purchaser.

SEC. 111. USE OF EXISTING SECTION 8 FUNDS TO PRESERVE AND REVITALIZE 
              AFFORDABLE HOUSING.

    Section 8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f) is amended by adding at the end the following:
    ``(ff) Affordable Housing Preservation and Revitalization 
Program.--
            ``(1) In general.--The Secretary of Housing and Urban 
        Development shall ensure that funds in the residual receipts 
        account of an eligible multifamily housing property are, at the 
        time of a qualified sale or pursuant to an approved 
        rehabilitation plan approved by the Secretary or the section 8 
        contract administrator, transferred or released, in conjunction 
        with an approved rehabilitation plan, to the acquiring owner.
            ``(2) Use of residual receipt funds by purchaser.--An owner 
        that acquires an assisted multifamily housing property through 
        a qualified sale shall, subject to the approval of the 
        Secretary, use the funds in the residual receipts account 
        transferred to it, or for its benefit--
                    ``(A) to pay for rehabilitation costs;
                    ``(B) to deposit funds into the replacement reserve 
                account of the property;
                    ``(C) to pay for social and other services that 
                directly benefit the tenants of such property;
                    ``(D) to pay for costs associated with the 
                acquisition of the property; and
                    ``(E) to pay for any other costs, as determined 
                eligible by the Secretary.
            ``(3) Use of residual receipts by owners to preserve and 
        renew affordable housing.--Subject to approval and any 
        requirements established by the Secretary, an owner of an 
        eligible multifamily housing property may use funds in the 
        residual receipts account for the property to--
                    ``(A) reduce operating or cash flow deficits when 
                such use would prevent an increase in rental rates for 
                tenants;
                    ``(B) make a mortgage payment when a mortgage 
                default is actual or imminent;
                    ``(C) pay for rehabilitation costs, which may 
                include--
                            ``(i) making repairs to the property not 
                        otherwise covered by a reserve for replacements 
                        or other similar fund;
                            ``(ii) providing additional project 
                        amenities and improvements, such as air 
                        conditioning, a sprinkler system, fire or smoke 
                        detectors, energy saving devices or 
                        improvements, office equipment, and computers 
                        and associated software; and
                            ``(iii) making enhancements to the property 
                        or retrofit units to enhance accessibility;
                    ``(D) pay accrued, allowable distributions in cases 
                in which insufficient surplus cash is available;
                    ``(E) repay residual receipt notes approved by the 
                Secretary;
                    ``(F) repay flexible subsidy operating assistance 
                or capital improvements loans provided under section 
                201 of the Housing and Community Development Amendments 
                of 1978 (12 U.S.C. 1715z-1a);
                    ``(G) provide for testing or abatement of lead-
                based paint at the property;
                    ``(H) provide for social and other services that 
                directly benefit the tenants of such property; and
                    ``(I) pay for any costs or purposes, as determined 
                eligible by the Secretary.
            ``(4) Delegation of authority to section 8 contract 
        administrator or other entity.--At the request of a section 8 
        contract administrator or other appropriate entity, as 
        determined by the Secretary, that administers assistance 
        referred to in paragraph (5)(A)(i) with respect to an eligible 
        multifamily housing property, the Secretary may delegate to 
        such agency the authority of the Secretary under paragraph (2) 
        or (3), or both, to approve the use of funds in residual 
        receipt accounts for properties so assisted by such agency as 
        provided in such paragraph or paragraphs.
            ``(5) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    ``(A) Eligible multifamily housing property.--The 
                term `eligible multifamily housing property' means a 
                property that--
                            ``(i) is assisted under any program 
                        providing project-based assistance under 
                        section 8 of the United States Housing Act of 
                        1937 (42 U.S.C. 1437f); and
                            ``(ii) is subject to regulations of the 
                        Secretary in effect on the date of enactment of 
                        this subsection that require remittance of 
                        excess funds to the Secretary upon termination 
                        of the project-based assistance contract.
                    ``(B) Qualified sale.--
                            ``(i) In general.--The term `qualified 
                        sale' means the sale or other transfer of an 
                        eligible multifamily housing property to an 
                        owner who agrees to maintain affordability and 
                        use restrictions regarding the property that 
                        are--
                                    ``(I) for a term of not less than 
                                30 years from the time of the qualified 
                                sale; and
                                    ``(II) legally enforceable.
                            ``(ii) Future applicability of 
                        restrictions.--The restrictions under 
                        subparagraph (A) shall be--
                                    ``(I) binding on all successors and 
                                assigns of the qualified preservation 
                                owner; and
                                    ``(II) recorded as a restrictive 
                                covenant on the property pursuant to 
                                State law.
                    ``(C) Residual receipts.--The term `residual 
                receipts' means--
                            ``(i) funds generated by a property in 
                        excess of the amount needed for operating 
                        expenses, operating reserve requirements, and 
                        allowable distributions to project owners; and
                            ``(ii) includes any other funds that the 
                        Secretary, in his or her discretion, designates 
                        as residual receipts.
            ``(6) Residual receipts not treated as federal funds.--For 
        the purposes of section 42 of the Internal Revenue Code of 
        1986, residual receipts used or transferred under this section 
        shall not be considered Federal funds.''.

SEC. 112. AUTHORITY FOR GINNIE MAE TO SECURITIZE FHA RISK-SHARING 
              MORTGAGES.

    (a) Authority.--Section 542 of the Housing and Community 
Development Act of 1992 (12 U.S.C. 1715z-22) is amended--
            (1) in subsection (b), by striking paragraph (8) and 
        inserting the following new paragraph:
            ``(8) Ginnie mae securitization.--The Government National 
        Mortgage Association may securitize any multifamily loan 
        insured or reinsured under this subsection under the same terms 
        and conditions as if the loan were insured under the National 
        Housing Act.''; and
            (2) in subsection (c), by striking paragraph (6) and 
        inserting the following new paragraph:
            ``(6) Ginnie mae securitization.--The Government National 
        Mortgage Association may securitize any multifamily loan 
        insured under this subsection under the same terms and 
        conditions as if the loan were insured under the National 
        Housing Act.''.
    (b) Limitation.--Section 542 of the Housing and Community 
Development Act of 1992 is amended by adding at the end the following 
new subsection:
    ``(d) Limitation.--In carrying out subsections (b)(8) and (c)(6), 
the Secretary shall prohibit State housing finance agencies from giving 
preference to, or conditioning the approval of, awards of subordinate 
debt funds, allocation of tax credits, or tax exempt bonds based on the 
use of financing for the first mortgage that is provided by such State 
housing finance agency.''.
    (c) Conforming Amendment.--Clause (ii) of the first sentence of 
section 306(g)(1) of the National Housing Act (12 U.S.C. 1721(g)(1)) is 
amended by inserting before the period at the end the following: ``; or 
insured or reinsured under subsection (b) or (c) of section 542 of the 
Housing and Community Development Act of 1992, subject to the terms of 
paragraph (8) or (6), respectively, of such subsection''.

 TITLE II--RESTORATION OF HOUSING AT RISK OF LOSS DUE TO DETERIORATION

SEC. 201. AUTHORITY TO TRANSFER RENTAL ASSISTANCE TO OTHER PROPERTIES.

    (a) Authority.--Subject to subsection (b) and notwithstanding any 
other provision of law, the Secretary of Housing and Urban Development 
may authorize the transfer of some or all of project-based assistance, 
debt, interest reduction payments, and statutorily required low-income 
and very low-income use restrictions, associated with one or more 
covered multifamily housing properties to another covered multifamily 
housing property or properties located in the same metropolitan area.
    (b) Phased Transfers.--Transfers of project-based assistance under 
this section may be done in phases to accommodate the financing and 
other requirements related to improving or constructing the property or 
properties to which the assistance is transferred to ensure that such 
property or properties meet the standards under subsection (c).
    (c) Conditions.--A transfer authorized in subsection (a) shall be 
subject to the following conditions:
            (1) Total number of low-income units.--The number of low-
        income and very low-income dwelling units provided by the 
        transferring property or properties shall remain the same as 
        the number of such dwelling units in the receiving property or 
        properties. Upon transfer of subsidy, vacant, nonviable, or 
        obsolete units may be replaced with units that meet the demands 
        of the local waiting list for assistance under section 8 of the 
        United States Housing Act of 1937 (42 U.S.C. 1437f) or current 
        market demand, but only if there is no impact on assisted 
        residents of such units.
            (2) Net amount of assistance.--The net dollar amount of 
        Federal assistance provided to the transferring property or 
        properties shall remain the same as the net dollar amount of 
        Federal assistance provided to the receiving property or 
        properties, unless an increase in Federal assistance is 
        necessary to secure project financing, to allow rent increases 
        permitted under the Multifamily Affordable Housing Reform and 
        Affordability Act of 1997 (42 U.S.C. 1437f note), to 
        accommodate allowable reconfigurations of the units and 
        bedrooms, or to allow standard contract extensions, or 
        simultaneous termination of current contracts with extensions 
        of new contract authority, similar to that extended to 
        comparable properties, as determined by the Secretary.
            (3) Condition of transferring property.--The transferring 
        property shall, as determined by the Secretary, be physically 
        obsolete or economically non-viable.
            (4) Condition of receiving property.--The receiving 
        property shall meet or exceed applicable physical standards 
        established by the Secretary within a reasonable period of 
        time, as determined by the Secretary.
            (5) Tenant protection.--
                    (A) Notification and consultation.--The owner or 
                mortgagor of the transferring property shall notify and 
                consult with the tenants of the transferring property 
                concerning all significant elements of the transfer 
                plan, including the identification of receiving 
                properties and any proposed additional ownership 
                entities.
                    (B) Best interest of tenants; fair housing.--The 
                transfer shall, as determined by the Secretary--
                            (i) be in the best interest of the tenants; 
                        and
                            (ii) comply with applicable statutes and 
                        regulations relating to fair housing.
            (6) Availability of new units.--The tenants of the 
        transferring property shall not be required to vacate their 
        dwelling units in the transferring property until new units in 
        the receiving property or properties are available for 
        occupancy, including a phase or phases of a multi-phase project 
        or projects that are available for occupancy. Tenants may 
        choose to be temporarily relocated to facilitate their 
        transition to the receiving property according to relocation 
        procedures set forth in the Uniform Relocation Assistance and 
        Real Property Acquisition Act of 1970 (42 U.S.C. 4601 et seq.).
            (7) Mortgages under national housing act.--Any lien on the 
        receiving property resulting from additional financing obtained 
        by the owner shall be subordinate to any lien under a mortgage 
        insured under the National Housing Act that is transferred to, 
        or placed on, such property by the Secretary, except that the 
        Secretary may waive this requirement upon determination that 
        such waiver is necessary to facilitate the financing of 
        acquisition, construction, or rehabilitation of the receiving 
        property.
            (8) Housing subject to a use agreement.--The owner or 
        mortgagor of the receiving property shall execute and record a 
        continuation of the existing use agreement or a new use 
        agreement for the property containing use restrictions having a 
        duration at least as long as the existing restrictions.
            (9) No increase of risk to insurance funds.--The transfer 
        under this section shall result in no increase in financial 
        risk to the General and Special Risk Insurance Funds of the 
        Secretary, as determined by the Secretary, except that the 
        Secretary may waive this requirement upon determination that 
        such waiver is necessary to facilitate the financing of 
        acquisition, construction, or rehabilitation of the receiving 
        property.
            (10) No increase of federal liability.--Federal liability 
        with regard to the receiving property shall not be increased, 
        as determined by the Secretary, except as provided in paragraph 
        (2).
    (d) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Covered multifamily housing property.--The term 
        ``covered multifamily housing property'' means housing that is 
        assisted or insured under one or more of the following 
        programs:
                    (A) The rent supplement program under section 101 
                of the Housing and Urban Development Act of 1965 (12 
                U.S.C. 1701s).
                    (B) The below-market interest rate mortgage 
                insurance program under section 221(d)(3) of the 
                National Housing Act (12 U.S.C. 17151(d)(3)).
                    (C) The program for assistance provided under the 
                proviso in section 221(d)(5) of the National Housing 
                Act (12 U.S.C. 17151(d)(5)).
                    (D) A contract under section 236(f)(2) of the 
                National Housing Act (12 U.S.C. 1715z-1(f)(2)).
                    (E) The program for interest reduction payments 
                under section 236 of the National Housing Act (12 
                U.S.C. 1715z-1) or a comparable State program providing 
                for interest reduction payments.
                    (F) Any other mortgage insurance program provided 
                under the National Housing Act for which the insured 
                property is subject to budget-based rent restrictions.
                    (G) The program for supportive housing for the 
                elderly under section 202 of the Housing Act of 1959 
                (12 U.S.C. 1701q), including assistance under such 
                section as was in effect before the enactment of the 
                Cranston-Gonzales National Affordable Housing Act.
                    (H) The program for rural rental housing under 
                section 515 of the Housing Act of 1949 (42 U.S.C. 
                1485).
                    (I) Any program providing project-based assistance 
                that is attached to the structure.
                    (J) Any other program under which the Secretary 
                provides any rental assistance, mortgage insurance, 
                subsidy, or other financial assistance.
            (2) Low-income; very low-income.--The terms ``low-income'' 
        and ``very low-income'', with respect to a covered multifamily 
        housing property, shall have the meanings provided under the 
        laws and regulations governing the program under which the 
        covered multifamily housing property is insured or assisted.
            (3) Project-based assistance.--The term ``project-based 
        assistance'' means--
                    (A) assistance provided under section 8(b) of the 
                United States Housing Act of 1937 (42 U.S.C. 1437f(b)), 
                including the additional assistance program;
                    (B) assistance for housing constructed or 
                substantially rehabilitated pursuant to assistance 
                provided under section 8(b)(2) of such Act (as such 
                section was in effect immediately before October 1, 
                1983);
                    (C) rent supplement payments under section 101 of 
                the Housing and Urban Development Act of 1965 (12 
                U.S.C. 1701s);
                    (D) additional assistance payments under section 
                236(f)(2) of the National Housing Act (12 U.S.C. 1715z-
                1(f)(2)) or a comparable State program providing for 
                interest reduction payments;
                    (E) payments made under section 202(c)(2) of the 
                Housing Act of 1959 (12 U.S.C. 1701q(c)(2)); and
                    (F) payments made under any other Federal program 
                under which rental assistance is attached to the 
                structure.
            (4) Receiving property.--The term ``receiving property'' 
        means, with respect to a transfer of project-based assistance, 
        debt, and statutorily required low-income and very low-income 
        use restrictions under this section, the covered multifamily 
        housing property or properties to which the assistance, debt, 
        and use restrictions are to be transferred.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (6) Transferring property.--The term ``transferring 
        property'' means, with respect to a transfer of project-based 
        assistance, debt, and statutorily required low-income and very 
        low-income use restrictions under this section, the covered 
        multifamily housing property or properties from which the 
        assistance, debt, and use restrictions are to be transferred.

SEC. 202. BUILDING TRANSFERS: REQUIREMENTS FOR PURCHASERS OF FHA 
              INSURED PROJECTS AND SECTION 8 PROJECTS.

    (a) Requirements for Potential Purchasers.--Not later than 90 days 
after the date of the enactment of this Act, the Secretary of Housing 
and Urban Development shall issue a proposed rulemaking, in accordance 
with title 5, United States Code, that applies the participation and 
certification requirements for potential purchasers required under 
section 219 of Division G of the Consolidated Appropriations Act, 2004 
(Public Law 108-199; 118 Stat. 397) to the sale or transfer of any 
multifamily housing having a mortgage that is insured or receives 
assistance under the National Housing Act or for which project-based 
assistance is provided under section 8 of the United States Housing Act 
of 1937 (42 U.S.C. 1437f).
    (b) Notice to Local Government and Residents of Application for 
Transfer.--The Secretary shall provide notice of an owner's application 
for approval of any such transfer to the unit of local government where 
the property is located, and to the residents of the property, using 
procedures required under the Housing and Community Development 
Amendments of 1978.
    (c) Grounds for Disapproval.--Grounds for disapproval of a transfer 
may include--
            (1) a purchaser's record of pervasive or continuing 
        noncompliance under housing, health, and safety codes with 
        respect to other housing owned or managed by the purchaser, 
        regardless of location, except where the Secretary determines 
        that such noncompliance did not result from the actions of the 
        purchaser and would be satisfactorily remedied by a plan 
        approved by the Secretary; and
            (2) a risk of financial instability for the project under 
        the terms of the acquisition, such as indicated by the 
        application of conventional underwriting standards.

SEC. 203. USE OF INTEREST REDUCTION PAYMENTS FOR REHABILITATION GRANTS.

    The Secretary of Housing and Urban Development may obligate any 
amounts recaptured from the termination of a contract for interest 
reduction payments under section 236 of the National Housing Act (12 
U.S.C. 1715z-1), for the use under subsection (s) of such section, 
except that the Secretary shall take immediate action to issue 
appropriate guidelines to make such funds available within 180 days 
after the date of the enactment of this Act, which shall include the 
availability of both loans and grants.

SEC. 204. CLARIFICATION OF BUDGET-BASED RENT INCREASES FOR 
              REHABILITATED PROJECTS.

    (a) Approval of Rent Increases.--
            (1) Approval.--At the request of an owner of a covered 
        multifamily housing property (which term, for purposes of this 
        section, shall have the same meaning given such term in section 
        201(c) of this Act) that meets the requirements of paragraph 
        (2), the Secretary of Housing and Urban Development shall, 
        prior to rehabilitation and subject to subsection (b), adjust 
        project rents on a budget-based basis to support the cost of 
        the rehabilitation, any increased debt service, and other 
        appropriate costs.
            (2) Requirements.--The requirements of this paragraph with 
        respect to a covered multifamily housing property are that--
                    (A) the project is to undergo rehabilitation; and
                    (B) the owner or purchaser of the project executes 
                a binding agreement to preserve the project as 
                affordable housing at least until the later of the 
                maturity date of the original mortgage for the project 
                or the termination of an assistance contract on the 
                property.
    (b) Conditions.--Rent adjustments pursuant to this section for a 
covered multifamily housing property shall be subject to the following 
conditions and requirements:
            (1) Effectiveness.--Such rent adjustments shall not become 
        effective until completion of the rehabilitation of the 
        property.
            (2) Amount.--Such rent adjustments shall--
                    (A) be subject to adjustment by the Secretary based 
                on differences between estimated and actual costs; and
                    (B) with respect to units that are assisted under 
                section 8 of the United States Housing Act of 1937 (42 
                U.S.C. 1437) that are subject to a renewal contract 
                under section 524(a) of the Multifamily Assisted 
                Housing Reform and Affordability Act of 1997 (42 U.S.C. 
                1437f note), not exceed, after rehabilitation, the rent 
                for comparable unassisted units in the area.
            (3) Tenant notice and opportunity to comment.--Tenants in 
        the property shall be provided notice and an opportunity to 
        comment on such rent adjustments in accordance with rent 
        increase procedures of the Department of Housing and Urban 
        Development issued pursuant to the authority under section 
        202(b) of the Housing and Community Development Amendments of 
        1978 (12 U.S.C. 1715z-1b(b)).
            (4) Provision of rental assistance.--Rental assistance 
        shall be provided for all affected eligible tenants of the 
        property in the form of new project-based assistance for 
        previously unassisted units and legally authorized contract 
        rent increases under existing project-based contracts.
    (c) Effect on Other Transactions.--This section shall not have any 
effect on transactions not meeting the terms and conditions of this 
section.

SEC. 205. INTEREST REDUCTION PAYMENTS FOR SECTION 236 PROJECTS 
              EXPERIENCING A REDUCTION OF UNITS.

    (a) In General.--Section 236(e)(2) of the National Housing Act (12 
U.S.C. 1715z-1(e)(2)) is amended--
            (1) by striking ``under the terms'' and inserting ``for the 
        remaining term''; and
            (2) by adding at the end the following new sentence: ``The 
        Secretary may continue to provide the interest reduction 
        payments in their entirely, notwithstanding a reduction of 
        total units, if the project owner is able to demonstrate that 
        such an action will contribute to the long-term physical or 
        financial viability of the property.''.
    (b) Applicability.--The amendments made by subsection (a) shall 
apply to all interest reduction payments made after October 1, 2006.

                   TITLE III--PROTECTION OF RESIDENTS

SEC. 301. TENANT PROTECTION VOUCHER TO REPLACE LOST SUBSIDIZED UNITS ON 
              1-FOR-1 BASIS.

    Subject only to the availability of amounts provided for such 
purpose in appropriation Acts, the Secretary of Housing and Urban 
Development shall provide replacement vouchers for rental assistance 
under section 8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f) for all dwelling units in projects that cease to be covered 
multifamily housing properties (as such term is defined in section 201 
of this Act) due to demolition, disposition, or conversion.

SEC. 302. MAINTENANCE OF HOUSING.

    Section 8(d) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(d)) is amended by adding at the end the following new paragraphs:
    ``(7) Enforcement of Housing Standards Related to Physical 
Condition of Property.--If the Secretary determines, upon any 
inspection or management review for any multifamily housing project 
covered by a housing assistance payments contract under this section, 
that there are serious violations of housing standards applicable to 
such project that are not corrected after reasonable notice, or any 
other substantial or repeated violations of other program requirements, 
including residents right to organize, the Secretary may take one or 
more of the following actions:
            ``(A) Withhold all or part of the housing assistance 
        payments due under the contract.
            ``(B) Withhold any rent increases otherwise due.
            ``(C) Assume possession and management of the project and 
        take any actions necessary to correct the violations, including 
        using such withheld payments to effectuate repairs or to 
        reimburse others who make repairs.
            ``(D) Use such withheld payments to pay for utilities and 
        other services that are the responsibility of the owner under 
        the lease or applicable law.
    ``(8) Escrow of Tenant Rents.--If the Secretary determines that 
there are serious violations of housing standards applicable to any 
multifamily housing project covered by a housing assistance payments 
contract under this section or any other substantial or repeated 
violations of other program requirements, any tenants in assisted units 
in the project may withhold the tenant contribution toward rent and pay 
such amount, when due, into an escrow fund, or use such withheld 
payments to effectuate repairs, in accordance with procedures 
established by the Secretary. If a tenant withholds the tenant 
contribution toward rent in accordance with this paragraph, the 
Secretary shall withhold all or part of the housing assistance payments 
due under the contract until the violation is remedied. An owner of a 
project shall not evict tenants for nonpayment of rent for exercising 
rights under this paragraph.
    ``(9) Protection of Tenants.--An owner of a multifamily housing 
project covered by a housing assistance payments contract under this 
subsection may not terminate the tenancy of any tenant because of the 
withholding or abatement of assistance pursuant to this subsection. 
During the period that assistance is abated pursuant to this 
subsection, the tenant may terminate the tenancy by notifying the 
owner.
    ``(10) Inspections Upon Request or Petition.--In addition to 
periodic inspections by the Secretary, the Secretary shall conduct an 
inspection or management review of any multifamily housing project 
covered by a housing assistance payments contract under this section 
when requested by the local government in which the project is located 
or by a petition signed by not less than 25 percent of the tenants of 
the occupied units in the project.''.

SEC. 303. RESIDENT ENFORCEMENT OF PUBLIC HOUSING AGENCY OR PROJECT 
              OWNER AGREEMENTS WITH HUD.

    (a) In General.--In each covered agreement described in subsection 
(c), any resident, or resident or tenant association, of an affected 
project shall be permitted to petition the Secretary of Housing and 
Urban Development requesting enforcement of alleged violations of the 
covered agreement.
    (b) Judicial Relief.--If the Secretary, or the designee of the 
Secretary, fails to issue a determination regarding an enforcement 
request within 90 days after receipt of the petition, the resident, or 
resident or tenant association, may seek appropriate judicial relief in 
connection with the alleged violation and enforcement of a covered 
agreement in any forum of competent jurisdiction. In the case of any 
alleged violation that threaten the health or safety of tenants, the 
time period for making such a determination shall be no longer than 15 
days.
    (c) Covered Agreements.--A covered agreement described in this 
subsection is any--
            (1) contract between the Secretary and any public housing 
        agency for housing assistance payments under section 8 of the 
        United States Housing Act of 1937 (42 U.S.C. 1437f);
            (2) agreement under the Multifamily Assisted Housing Reform 
        and Affordability Act of 1997 (42 U.S.C. 1437f note) for--
                    (A) Mark-to-Market Restructuring Commitments or 
                renewal of section 8 rental assistance for a project 
                involving any action under section 517(b) of such Act; 
                or
                    (B) Rehabilitation Escrow Deposit Agreements for 
                Mark-to-Market; or
            (3) contract for mortgage insurance executed by the 
        Secretary and any owner or purchaser of a multifamily housing 
        project.
    (d) Regulations.--Within 180 days after the date of the enactment 
of this Act, the Secretary shall issue regulations providing procedures 
for--
            (1) receiving tenant petitions to enforce the terms of a 
        covered agreement;
            (2) evaluating alleged violations of a covered agreement; 
        and
            (3) providing notice to residents, and resident and tenant 
        associations.

SEC. 304. RESIDENT ACCESS TO BUILDING INFORMATION.

    (a) Access to Information.--Upon a written request by a legitimate 
residents association established with respect to a multifamily housing 
property to which part 245 of the regulations of the Secretary of 
Housing and Urban Development (24 C.F.R. Part 245), by or through its 
duly appointed designee or representative, the Secretary shall make 
available, for the property represented by the association--
            (1) information identifying the legal entities that own and 
        manage the property, including identification of general 
        partners and other principals, and their other properties 
        assisted by the Department of Housing and Urban Development, 
        including previous participation certifications (with Social 
        Security numbers redacted);
            (2) an annual operating statement of profit and loss, and 
        project budgets submitted to the Department of Housing and 
        Urban Development;
            (3) subsidy contracts and regulatory agreements, use 
        agreements. or other contracts referred to in section 303(c) of 
        this Act between owners and the Department of Housing and Urban 
        Development, including correspondence between owners and the 
        Department;
            (4) management reviews, capital needs assessments, and 
        physical inspection reports conducted of entities identified in 
        paragraph (1) by the Department or a contractor of the 
        Department; and
            (5) an annual statement, prepared by the Department's 
        contract administrator for the subject property, of the 
        balances of, and expenditures from, any replacement reserves 
        and other escrow funds for the property.
    (b) Protection of Personal Information.--Subsection (a) shall not 
be construed to require disclosure of Social Security numbers, personal 
tax returns, or any other personal financial information of or 
concerning individuals who have an interest in the ownership or 
management entities referred to in subsection (a).

     TITLE IV--PRESERVATION OF TROUBLED PROJECTS FACING FORECLOSURE

SEC. 401. MAINTAINING AFFORDABILITY THROUGH ESCROWING OF RENTAL 
              ASSISTANCE.

    In the case of any transfer of a distressed multifamily property 
that does not comply with housing quality standards applicable to the 
property, the Secretary of Housing and Urban Development may not 
recapture any rental assistance that is attached to any dwelling units 
in the property and provided under a contract for the property under 
section 8 of the United States Housing Act of 1937 or under any other 
program administered by the Secretary, but shall hold any such 
assistance in escrow for the property during the period of 
noncompliance and, upon determining that the property complies with 
such standards make such assistance available for the property.

SEC. 402. MULTIFAMILY HOUSING MORTGAGE FORECLOSURE.

    The Multifamily Mortgage Foreclosure Act of 1981 is amended--
            (1) in section 362 (12 U.S.C. 3701)--
                    (A) in paragraph (5), by striking ``and'' at the 
                end;
                    (B) in paragraph (6), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(7) mortgages transferred by the Secretary to State and 
        local governments should be foreclosed in the same manner as 
        mortgages held by the Secretary.'';
            (2) in section 363 (12 U.S.C. 3702)--
                    (A) in paragraph (9), by striking ``and'' at the 
                end;
                    (B) in paragraph (10), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(11) `State or local government transferee' means any 
        State or unit of general local government, any public housing 
        authority, or any State or local housing finance agency that 
        has acquired mortgages pursuant to section 203 of the Housing 
        and Community Development Amendments of 1978 (12 U.S.C. 1701z-
        11), section 204 of the Departments of Veterans Affairs and 
        Housing and Urban Development, and Independent Agencies 
        Appropriations Act, 1997 (12 U.S.C. 1715z-11a), or any other 
        provision of law, that were previously held by the 
        Secretary.'';
            (3) in section 364 (12 U.S.C. 3703)--
                    (A) by inserting ``, or any State or local 
                government transferee,'' after ``Secretary'' the first 
                and fourth places such term appears; and
                    (B) by inserting ``, or the State or local 
                government transferee,'' after ``Secretary'' the 
                second, third, and fifth places such term appears;
            (4) in section 365 (12 U.S.C. 3704)--
                    (A) by inserting ``, or any State or local 
                government transferee,'' after ``Secretary'' the first 
                place such term appears;
                    (B) by inserting ``, or the State or local 
                government transferee,'' after ``Secretary'' each other 
                place such term appears; and
                    (C) by striking the last 3 sentences and inserting 
                the following: ``The entity designating the foreclosure 
                commissioner, whether the Secretary or any State or 
                local government transferee, shall be a guarantor of 
                payment of any judgment against the foreclosure 
                commissioner for damages based upon the commissioner's 
                failure properly to perform the commissioner's duties. 
                As between the entity designating the foreclosure 
                commissioner, whether the Secretary or any State or 
                local government transferee, and the mortgagor, the 
                entity designating the foreclosure commissioner shall 
                bear the risk of any financial default by the 
                foreclosure commissioner. In the event that the 
                Secretary or any State or local government transferee 
                makes any payment pursuant to the preceding two 
                sentences, the Secretary or any State or local 
                government transferee shall be fully subrogated to the 
                rights satisfied by such payment.'';
            (5) in section 366 (12 U.S.C. 3705)--
                    (A) by inserting ``, or any State or local 
                government transferee,'' after ``Secretary'' the first, 
                third, fourth, and fifth place such term appears; and
                    (B) by inserting ``, or the State or local 
                government transferee,'' after ``Secretary'' the second 
                and sixth places such term appears;
            (6) in section 367 (12 U.S.C. 3706)--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by inserting ``or the 
                        State or local government transferee,'' after 
                        ``Secretary,''; and
                            (ii) in paragraph (8), by inserting ``, or 
                        the State or local government transferee'' 
                        after ``Secretary'';
                    (B) in subsection (b)--
                            (i) by inserting ``, or any State or local 
                        government transferee,'' after ``Secretary'' 
                        the first and second places such term appears; 
                        and
                            (ii) by inserting ``, or the State or local 
                        government transferee,'' after ``Secretary'' 
                        the third place such term appears; and
                    (C) by adding at the end the following new 
                subsection:
    ``(c) In any case in which a State or local government transferee 
is the purchaser of a multifamily project, the State or local 
government transferee shall manage and dispose of such project to 
benefit those originally intended to be assisted under the prior 
program unless continued operation and disposition of the property 
under such program is not feasible based on consideration of the costs 
of rehabilitating and operating the property after considering all 
available Federal, State, and local resources, including rent 
adjustments under section 524 of the Multifamily Assisted Housing 
Reform and Affordability Act of 1997 (42 U.S.C. 1437f note).''.
            (7) in section 368 (12 U.S.C. 3707)--
                    (A) by inserting ``, or any State or local 
                government transferee,'' after ``Secretary'' the first 
                and third places such term appears; and
                    (B) by inserting ``, or the State of local 
                government transferee,'' after ``Secretary'' the second 
                place such term appears;
            (8) in section 369A (12 U.S.C. 3709)--
                    (A) by inserting ``, or any State or local 
                government transferee,'' after ``Secretary'' the second 
                place such term appears; and
                    (B) by inserting `, or the State or local 
                government transferee,' after `Secretary' the first, 
                third, and fourth places such term appears;
            (9) in section 369B (12 U.S.C. 3710)--
                    (A) by inserting ``, or the State of local 
                government transferee,'' after ``Secretary'' the first 
                and second places such term appears; and
                    (B) by inserting ``, or any State or local 
                government transferee,'' after ``Secretary'' each other 
                place such term appears;
            (10) in section 369E (12 U.S.C. 3713), by inserting ``, or 
        any State or local government transferee,'' after ``Secretary'' 
        each place such term appears; and
            (11) in section 369F(a)(1) (12 U.S.C. 3714(a)(1)), by 
        inserting ``, or any State or local government transferee,'' 
        before the semicolon at the end.

SEC. 403. BUILDING ACQUISITION: VALUATION OF PHYSICALLY DISTRESSED 
              PROPERTIES SOLD BY HUD.

    (a) In General.--Notwithstanding title II of the Deficit Reduction 
Act of 2005 (12 U.S.C. 1701z-11 note) or any other provision of law, in 
determining the market value of any multifamily real property or 
multifamily loan for any noncompetitive sale to a State or local 
government, the Secretary of Housing and Urban Development shall 
consider, but not be limited to, industry standard appraisal practices, 
including the cost of repairs needed to bring the property into such 
condition as to satisfy minimum State and local code standards and the 
cost of maintaining the affordability requirements imposed by the 
Secretary on the multifamily real property or multifamily loan.
    (b) Definitions.--For purposes of this section, the terms 
``affordability requirements'', ``multifamily loan'', and ``multifamily 
real property'' have the same meaning given such terms in section 2001 
of the Deficit Reduction Act of 2005 (12 U.S.C. 1701z-11 note).

SEC. 404. INVESTMENT THROUGH UP-FRONT GRANTS FROM GENERAL INSURANCE 
              FUND.

    (a) 1978 Act.--Paragraph (4) of section 203(f) of the Housing and 
Community Development Amendments of 1978 (12 U.S.C. 1701z-11(f)(4)) is 
amended by striking the last sentence.
    (b) Clarification of Authorized Assistance.--In implementing the 
provisions amended by subsection (b) of this section, the Secretary of 
Housing and Urban Development may utilize both up-front grants and 
project-based rental assistance under section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f) as necessary to preserve the 
affordability of a multifamily housing project to low- and very low-
income families.

SEC. 405. MAINTAINING PROJECT-BASED ASSISTANCE FOR PROJECTS DISPOSED OF 
              BY HUD.

    (a) In General.--In managing and disposing of any multifamily 
property that is owned by, or has a mortgage held by, the Secretary of 
Housing and Urban Development, the Secretary shall maintain any 
contracts for rental assistance payments under section 8 of the United 
States Housing Act of 1937 (42 U.S.C. 1437f) and other programs that 
are attached to any dwelling units in the property.
    (b) Infeasibility of Continued Assistance.--To the extent the 
Secretary determines, in consultation with the tenants and the local 
government, that such a multifamily property owned or held by the 
Secretary is not feasible for continued rental assistance payments 
under such section 8 or other programs, based on consideration of (1) 
the costs of rehabilitating and operating the property and all 
available Federal, State, and local resources, including rent 
adjustments under section 524 of the Multifamily Assisted Housing 
Reform and Affordability Act of 1997 (42 U.S.C. 1437f note), and 
environmental conditions that cannot be remedied in a cost-effective 
fashion, the Secretary may, in consultation with the tenants of such 
property, contract for project-based rental assistance payments with an 
owner or owners of other existing housing properties, or provide other 
rental assistance.
    (c) Foreclosure.--For all properties with project-based section 8 
assistance, regardless of the type of underlying financing, the 
Secretary shall also take appropriate actions to ensure that project-
based contracts remain in effect prior to foreclosure, subject to the 
exercise of contractual remedies to assist relocation of tenants for 
imminent major threats to health and safety, after written notice to 
and informed consent of the affected tenants and use of other available 
remedies, such as partial abatements or receivership.
    (d) Applicability of MAHRA.--After disposition of any multifamily 
property described under this section, the contract and allowable rent 
levels on such properties shall be subject to section 524 of the 
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 
U.S.C. 1437f note).

SEC. 406. CORRECTING HARM CAUSED BY LATE SUBSIDY PAYMENTS.

    Section 8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f), as amended by the preceding provisions of this Act, is further 
amended by adding at the end the following new subsection:''.
    ``(gg) Late Payments.--
            ``(1) In general.--The Secretary shall make payments of 
        project-based rental assistance provided under this section for 
        each month on or before the due date under paragraph (2) for 
        the payment.
            ``(2) Due date.--The due date under this paragraph for a 
        monthly payment is the first business day of the month.
            ``(3) Notification of late payment.--The Secretary shall 
        notify a project owner at least 10 days before the due date for 
        a housing assistance payment if such payment will be late and 
        shall inform the project owner of the approximate date the 
        payment will be made.
            ``(4) Use of reserves.--If a housing assistance payment for 
        a project has not been received before the expiration of the 
        10-day period beginning upon the due date for such payment, the 
        project owner shall, after the expiration of such period, be 
        entitled to obtain funds from a project replacement reserve, 
        residual receipts reserve, or other project reserve in order to 
        pay operating and debt service costs for the project. Upon 
        receipt of the monthly housing assistance payment from the 
        Secretary, the project owner shall promptly replace or 
        replenish any such funds advanced pursuant to the preceding 
        sentence.
            ``(5) Interest payment.--If a monthly housing assistance 
        payment is not made before the expiration of the 30-day period 
        beginning upon the due date for such payment, the Secretary 
        shall pay to the owner simple interest on the amount of such 
        monthly payment, from the due date until the date of payment, 
        at a rate determined by the Secretary of Treasury in accordance 
        with section 12 of the Contract Disputes Act of 1978 (41 U.S.C. 
        611). Interest payments under this paragraph shall be made from 
        amounts made available for management and administration of the 
        Department of Housing and Urban Development.''.

    TITLE V--INCENTIVES UNDER MAHRA FOR OWNERS TO MAINTAIN HOUSING 
                             AFFORDABILITY

SEC. 501. EXTENSION OF MARK-TO-MARKET PROGRAM.

    Section 579 of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by striking 
``October 1, 2011'' each place such term appears and inserting 
``October 1, 2015''.

SEC. 502. MAINTAINING AFFORDABILITY IN PRESERVATION PROJECT 
              TRANSACTIONS.

    (a) Renewal Under Alternative Authorities.--Paragraph (1) of 
section 524(e) of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by adding 
at the end the following new sentences: ``At the request of the owner 
of the project, in order to facilitate a rehabilitation plan approved 
by the Secretary as being necessary to ensure the sustainability of a 
project, a contract eligible for renewal pursuant to this paragraph may 
instead be renewed pursuant to any provision of subsection (a) or (b) 
of this section if the contract is otherwise eligible for renewal 
pursuant to such provision. In the case of a renewal pursuant to 
subsection (a) or (b), the rent and rent adjustment standards 
applicable to a renewal pursuant to those subsections shall apply, but 
tenant occupancy and affordability restrictions in the plan of action 
shall continue to apply to the project for the duration of those 
restrictions.''.
    (b) Extension of Affordability Period for ELIHPA Projects.--Section 
524(e) of the Multifamily Assisted Housing Reform and Affordability Act 
of 1997 (42 U.S.C. 1437f note) is amended by adding at the end the 
following new paragraph:
            ``(4) Hybrid contract.--To facilitate the sale, transfer, 
        or rehabilitation of a project that is subject to a plan of 
        action under the Emergency Low Income Housing Preservation Act 
        of 1987 (12 U.S.C. 1715l note) to an owner who agrees to 
        binding low-income affordability restrictions for at least 30 
        years beyond the term of the plan of action and a 
        rehabilitation plan approved by the Secretary as being 
        necessary to ensure the sustainability of the project, a 
        contract for such a project shall, at the request of the owner 
        of the project, be renewed under this paragraph for a term of 
        not less than 30 years. The contract shall provide that the 
        terms of the plan of action shall apply for the duration of the 
        original plan of action, and that at the expiration of the plan 
        of action the rents shall be established at rent levels equal 
        to comparable market rents for the market area. After 
        expiration of the plan of action, rent adjustments shall be 
        determined in accordance with the provisions of subsection (c) 
        that are applicable to contracts renewed pursuant to subsection 
        (a). Any existing contract entered into pursuant to paragraph 
        (1) shall be terminated at the request of the owner of the 
        project, and replaced by a contract under this paragraph.''.

SEC. 503. ENCOURAGING CONTINUED PARTICIPATION IN ASSISTED HOUSING 
              PROGRAMS.

    (a) Elimination of Discriminatory Renewal Terms.--Paragraph (3) of 
section 524(b) of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``the lesser of'' and inserting ``as follows''; and
            (2) by striking subparagraphs (A), (B), and (C) and 
        inserting the following:
                    ``(A) Previously renewed projects.--In the case of 
                a project with a contract previously renewed under this 
                paragraph, for the first renewal occurring after the 
                date of the enactment of the Housing Preservation and 
                Tenant Protection Act of 2010, at a rent level 
                determined in accordance paragraph (1)(B) of this 
                subsection.
                    ``(B) Projects not previously renewed.--In the case 
                of a project with a contract not previously renewed 
                under this paragraph, at a rent level determined in 
                accordance with paragraph (1) of this subsection.''.
    (b) Subsequent Renewals and Rent Adjustments.--Paragraph (1) of 
section 524(c) of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended in the 
first sentence by striking ``(b)(1)'' and inserting ``(b)(1), (b)(3)''.

SEC. 504. PREPAYMENT OF FHA MORTGAGES ON MULTIFAMILY HOUSING.

    (a) Conditions for Prepayment.--Section 250 of the National Housing 
Act (12 U.S.C. 1715z-15) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (1) and inserting the 
                following new paragraph:
            ``(1) the Secretary has determined that--
                    ``(A) such project is no longer meeting a need for 
                rental housing for lower income families in the area, 
                as evidenced by a persistent lack of demand for the 
                units under the rent schedule approved by the 
                Secretary; or
                    ``(B) the prepayment is part of a transaction to 
                preserve and improve the project as affordable housing, 
                pursuant to the guidance in effect that implements 
                section 236(e)(2) of this Act (12 U.S.C. 1715z-1(e)2)) 
                or pursuant to additional administrative guidance, 
                ensuring that--
                            ``(i) the proceeds of any refinancing will 
                        be used for rehabilitation of the project and 
                        related costs or for affordable housing and 
                        related social services under a plan approved 
                        by the Secretary;
                            ``(ii) tenants will not be displaced from 
                        the project;
                            ``(iii) rent burdens for unassisted tenants 
                        as a result of the transaction will not be 
                        increased by more than 10 percent annually or 
                        20 percent in total, unless additional project-
                        based assistance is provided; and
                            ``(iv) binding commitments, which shall 
                        apply to current and subsequent owners, are 
                        made to ensure that the project will operate in 
                        accordance with all currently applicable low-
                        income affordability restrictions for a period 
                        of not less than the original mortgage term 
                        plus an additional 20 years, including a duty 
                        to maintain a substantially similar occupancy 
                        profile for the project of low-, very low-, and 
                        extremely low-income tenants, to renew any 
                        expiring rental assistance contracts for the 
                        project, and accept additional rental 
                        assistance for the project.'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by inserting 
                        before the semicolon at the end the following: 
                        ``which shall include reasonable access to all 
                        information relevant to the request, including 
                        the anticipated sources and uses of proceeds, 
                        any additional financing, subsidies, and rental 
                        assistance, and any proposed rehabilitation 
                        plan, affordable housing and services plan, or 
                        use agreement''; and
                            (ii) in subparagraph (C), by inserting 
                        before the semicolon the following: ``in making 
                        the determination required by paragraph (1)'';
                    (C) in paragraph (3), by striking the period at the 
                end and inserting ``; and''; and
                    (D) by adding at the end the following new 
                paragraph:
            ``(4) the Secretary has ensured that such prepayment or 
        termination involves extension of any low-income affordability 
        restrictions (as such term is defined in section 229 of the 
        Low-Income Housing Preservation and Resident Homeownership Act 
        of 1990 (12 U.S.C. 4119) for the project for a period of not 
        less than 30 years.''.
    (b) Use of Proceeds of Preservation Transactions by Nonprofit 
Owners of Multifamily Projects; Section 236 Transactions; Clarification 
of Effect.--Section 250 of the National Housing Act (12 U.S.C. 1715z-
15) is amended by adding at the end the following new subsections:
    ``(d) Use of Proceeds From Preservation Transaction.--
Notwithstanding any other provision of law, in connection with a 
preservation transaction, the prepayment of a mortgage on a multifamily 
rental housing project or termination of an insurance contract pursuant 
to section 229, or the sale or refinancing of a multifamily rental 
housing project for which approval of the Secretary is required, the 
Secretary may not, in any manner that is not equally applicable to a 
for-profit owner of such a project--
            ``(1) impose on any owner of such a project that is a 
        nonprofit organization or controlled by a nonprofit 
        organization any limitation on the right of such owner to use 
        the proceeds of such preservation transaction for the 
        affordable housing mission (including tenant and supportive 
        services) of such organization, except that any increase in the 
        project-based rental assistance shall be used solely to cover 
        the cost of actual debt service, customary operating costs, and 
        project reserve requirements, and for any rehabilitation of the 
        project and reasonably related costs, and not for cash 
        distributions or proceeds made to any project owner or 
        purchaser; or
            ``(2) restrict the right of any owner of such a project 
        that is a nonprofit organization or controlled by a nonprofit 
        organization to do business, in connection with any affiliate 
        or entity in which it has a financial interest.
    ``(e) Section 236 Decoupling Refinancing Transactions.--In the case 
of a decoupling refinancing transaction under section 236, the 
Secretary may not enter into any agreement that establishes an escrow 
for the payment of future section 8 rent increases from sales proceeds 
funded by low-income housing tax credit equity and any such agreement 
already entered into shall be considered unenforceable, shall be 
rescinded, and may be reissued without the void condition.
    ``(f) Applicability.--Notwithstanding any existing administrative 
directive of the Secretary to the contrary, except as specifically 
authorized in this section, this section shall apply to the prepayment 
of any multifamily mortgage on any property insured or held by the 
Secretary under this Act for which the approval of the Secretary is 
required for prepayment of the mortgage.''.

SEC. 505. PERIOD OF ELIGIBILITY FOR NONPROFIT DEBT RELIEF.

    Section 517(a)(5) of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by adding 
at the end the following new sentences: ``If such purchaser acquires 
such project subsequent to the date of recordation of the affordability 
agreement described in section 514(e)(6), (A) the purchaser must 
acquire the project on or before the later of (i) seven years after the 
date of recordation of the affordability agreement and (ii) two years 
after the date of enactment of this sentence; and (B) the Secretary 
must have received, and determined acceptable, the purchaser's 
application for modification, assignment, or forgiveness prior to the 
purchaser's acquisition of the project. In the event any low-income 
housing tax credits, State or local funds, tax-exemption or other 
affordable housing resources are being utilized by the purchaser in 
connection with the transfer of the property, the Secretary shall not 
require any repayment in connection with the assignment or forgiveness 
of the mortgages to the purchaser.''.

SEC. 506. ACQUISITION OF RESTRUCTURED PROJECTS BY NONPROFIT 
              ORGANIZATIONS.

    Paragraph (5) of section 517(a) of the Multifamily Assisted Housing 
Reform and Affordability Act of 1997 (42 U.S.C. 1437 note) is amended 
by inserting ``, or the sole general partner of the limited partnership 
owning the project,'' after ``if the project''.

SEC. 507. RENT ADJUSTMENTS UPON SUBSEQUENT RENEWALS OF SECTION 8 
              CONTRACTS.

    Section 524(c) of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by adding 
at the end the following new paragraph:
            ``(3) Subsequent renewals.--At the request of the owner of 
        the project, a contract initially renewed pursuant to this 
        section may subsequently be renewed under any renewal authority 
        in this section for which it is eligible. The subsequent 
        renewal of a contract initially renewed under subsection (b)(1) 
        shall be at rents established in accordance with paragraph (1) 
        of this subsection. A project whose contract is initially 
        renewed under this section shall not be considered an eligible 
        multifamily housing project as defined in section 512(2) unless 
        (A) the owner of the project and the Secretary consent to the 
        project's designation as an eligible multifamily housing 
        project, and (B) the project meets the requirements of 
        subparagraphs (A) and (C) of such section 512(2).''.

SEC. 508. BUDGET-BASED RENT ADJUSTMENTS.

    (a) Methods for Annual Rent Adjustments.--Section 514(g) of the 
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 
U.S.C. 1437f note) is amended by adding at the end the following new 
paragraph:
            ``(4) Annual rent adjustments.--The Secretary shall 
        annually adjust the rents initially established pursuant to 
        this section using an operating cost adjustment factor 
        established by the Secretary (which shall not result in a 
        negative adjustment) or, upon the request of the project owner, 
        on a budget basis.''
    (b) Meeting Rehabilitation Needs of Previously Restructured 
Projects.--Section 517(c) of the Multifamily Assisted Housing Reform 
and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by 
adding at the end the following new paragraph:
            ``(3) Rehabilitation needs of restructured projects.--
                    ``(A) Rehabilitation assistance.--Notwithstanding 
                any other provision of this title, at the request of a 
                project owner, the Secretary shall, pursuant to a 
                revised evaluation of the physical condition of the 
                project approved by the Secretary, provide 
                rehabilitation assistance from the funding sources 
                specified in the first sentence of paragraph (1)(A) for 
                any project for which the Secretary and the project 
                owner executed a mortgage restructuring and rental 
                assistance sufficiency plan prior to October 1, 2001, 
                pursuant to which mortgage debt on the project was 
                restructured.
                    ``(B) Funding through debt restructuring.--The 
                Secretary may, in connection with the transfer of a 
                project to a qualified preservation owner, modify or 
                waive any of the requirements or conditions on debt 
                restructuring contained in this title in order to 
                provide a simplified debt restructuring for funding the 
                rehabilitation of previously restructured projects 
                under this title. The Secretary may make a non-default 
                partial or full payment of claim under a mortgage 
                insurance contract pursuant to section 541(b) of the 
                National Housing Act (12 U.S.C. 1735f-19(b)), 
                notwithstanding the limitation in section 541(b) to its 
                one-time use. The Secretary may also modify or waive 
                any requirement or condition in such section 541(b) 
                that the Secretary considers inconsistent with the 
                simplified debt restructuring authorized by this 
                paragraph.
                    ``(C) Contribution.--The project owner receiving 
                rehabilitation assistance under this paragraph shall 
                not be required to make the contribution specified in 
                paragraph (1)(B) or (2)(C), except to the extent the 
                Secretary increases project rents to provide for a 
                return of the owner's contribution over such period as 
                the Secretary shall determine.''.

SEC. 509. INDEPENDENT APPRAISAL REQUIREMENT IN CASES OF DIVERGENT RENT 
              STUDIES.

    Section 524(a)(5) of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by adding 
at the end the following new sentence: ``In connection with a contract 
renewal under this section or section 515, if the comparable market 
rent determination made by the Secretary and the owner's appraiser 
differ by 15 percent or more, the owner may request a third appraiser, 
jointly selected and compensated by the Secretary and the owner, to 
make a comparable market rent determination that shall be binding on 
both parties.''.

SEC. 510. EXTENSION OF HOUSING ASSISTANCE PAYMENT CONTRACT.

    (a) In General.--Section 524(a) of the Multifamily Assisted Housing 
Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended 
by adding at the end the following new paragraph:
            ``(6) Extension of contract term.--In connection with the 
        refinancing or sale of a project covered by a contract renewed 
        under this subsection, the Secretary shall, at the request of 
        the owner, amend the contract to extend the term to 30 years or 
        such shorter term as the owner may request. Such an extension 
        shall be subject to the availability of sufficient amounts 
        provided in appropriation Acts.''.
    (b) Exception Rent Projects.--Section 524(b) of the Multifamily 
Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f 
note) is amended by adding at the end the following new paragraph:
            ``(4) Extension of contract term.--In connection with the 
        refinancing or sale of a project covered by a contract renewed 
        under this subsection, the Secretary shall, at the request of 
        the owner, amend the contract to extend the term to 30 years or 
        such shorter term as the owner may request. Such an extension 
        shall be subject to the availability of sufficient amounts 
        provided in appropriation Acts''.

SEC. 511. OTHERWISE ELIGIBLE PROJECTS.

    Section 514 of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by adding 
at the end the following new subsection:
    ``(i) Other Eligible Projects.--
            ``(1) In general.--Notwithstanding any other provision of 
        this subtitle, a project that meets the requirements of 
        subparagraphs (B) and (C) of section 512(2) but does not meet 
        the requirements of subparagraph (A) of section 512(2), may be 
        treated as an eligible multifamily housing project on an 
        exception basis if the Secretary determines, subject to 
        paragraph (2), that such treatment is necessary to preserve the 
        project in the most cost-effective manner in relation to other 
        alternative preservation options.
            ``(2) Owner request.--
                    ``(A) Request required.--The Secretary shall not 
                treat an otherwise eligible project described under 
                paragraph (1) as an eligible multifamily housing 
                project unless the owner of the project requests such 
                treatment.
                    ``(B) No adverse treatment if no request made.--If 
                the owner of a project does not make a request under 
                subparagraph (A), the Secretary shall not withhold from 
                such project any other available preservation option.
            ``(3) Cancellation.--
                    ``(A) Timing.--At any time prior to the completion 
                of a mortgage restructuring under this subtitle, the 
                owner of a project may--
                            ``(i) withdraw any request made under 
                        paragraph (2)(A); and
                            ``(ii) pursue any other option with respect 
                        to the renewal of such owner's section 8 
                        contract pursuant to any applicable statute or 
                        regulation.
                    ``(B) Documentation.--If an owner of a project 
                withdraws such owner's request and pursues other 
                renewal options under this paragraph, such owner shall 
                be entitled to submit documentation or other 
                information to replace the documentation or other 
                information used during processing for mortgage 
                restructuring under this subtitle.
            ``(4) Limitation.--The Secretary may exercise the authority 
        to treat projects as eligible multifamily housing projects 
        pursuant to this subsection only to the extent that the number 
        of units in such projects do not exceed 10 percent of all units 
        for which mortgage restructuring pursuant to section 517 is 
        completed.''.

SEC. 512. EXCEPTION RENTS.

    In the matter preceding clause (i) of section 514(g)(2)(A) of the 
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 
U.S.C. 1437f note) is amended--
            (1) by inserting ``disaster-damaged eligible projects and'' 
        after ``waive this limit for''; and
            (2) by striking ``five percent of all units'' and inserting 
        ``9 percent of all units''.

SEC. 513. DISASTER-DAMAGED ELIGIBLE PROJECTS.

    (a) Market Rent Determination.--Section 514(g)(1)(B) of the 
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 
U.S.C. 1437f note) is amended by striking ``determined, are equal'' and 
inserting the following: ``determined--
                            ``(i) with respect to a disaster-damaged 
                        property, are equal to 100 percent of the fair 
                        market rents for the relevant market area (as 
                        such rents were in effect at the time of such 
                        disaster); and
                            ``(ii) with respect to other eligible 
                        multifamily housing projects, are equal''.
    (b) Owner Investment.--Section 517(c) of the Multifamily Assisted 
Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is 
amended by adding at the end the following:
            ``(3) Properties damaged by natural disasters.--With 
        respect to a disaster-damaged eligible property, the owner 
        contribution toward rehabilitation needs shall be determined in 
        accordance with paragraph (2)(C).''.

SEC. 514. FUNDING FOR TENANT AND OTHER PARTICIPATION AND CAPACITY 
              BUILDING.

    Paragraph (3) of section 514(f) of the Multifamily Assisted Housing 
Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is 
amended--
            (1) in subparagraph (A)--
                    (A) in the first sentence--
                            (i) by striking ``not more than'' and 
                        inserting ``not less than'';
                            (ii) by striking ``of low-income housing 
                        for which project-based rental assistance is 
                        provided at below market rent levels and may 
                        not be renewed'' and inserting the following: 
                        ``and improvement of low-income housing for 
                        which project-based rental assistance, 
                        subsidized loans, or enhanced vouchers under 
                        section 8(t) are provided''; and
                            (iii) in the second parenthetical clause, 
                        by inserting before the closing parenthesis the 
                        following: ``, and predevelopment assistance to 
                        enable such transfers''; and
                    (B) by inserting after the period at the end the 
                following: ``For outreach and training of tenants and 
                technical assistance, the Secretary shall implement a 
                grant program utilizing performance-based outcome 
                measures for eligible costs incurred. Recipients 
                providing capacity building or technical assistance 
                services to tenant groups shall be qualified nonprofit 
                Statewide, countywide, area-wide or citywide 
                organizations with demonstrated experience including at 
                least a two-year recent track record of organizing and 
                providing assistance to tenants, and independence from 
                the owner, a prospective purchaser, or their managing 
                agents. The Secretary may provide assistance and 
                training to grantees in administrative and fiscal 
                management to ensure compliance with applicable Federal 
                requirements. The Secretary shall expedite the 
                provision of funding for the fiscal year in which the 
                date of the enactment of the Housing Preservation and 
                Tenant Protection Act of 2010 occurs by entering into 
                new multi-year contracts with any prior grantee without 
                adverse audit findings or whose adverse audit findings 
                have been cleared, and by entering into an interagency 
                agreement for not less than $1,000,000 with the 
                Corporation for National and Community Service or any 
                other agency of the Federal Government, that is 
                selected by the Secretary and the Secretary determines 
                is qualified to conduct such program, to conduct a 
                tenant outreach and training program under the same or 
                similar terms and conditions as was most recently 
                conducted by the Corporation. The Secretary shall also 
                make available flexible grants to qualified nonprofit 
                organizations that do not own eligible multifamily 
                properties, for tenant outreach in underserved areas, 
                and to experienced national or regional nonprofit 
                organizations to provide specialized training or 
                support to grantees assisted under this section. 
                Notwithstanding any other provision of law, funds 
                authorized under this section for any fiscal year shall 
                be available for obligation in subsequent fiscal years. 
                The Secretary shall require each recipient of amounts 
                made available pursuant to this subparagraph to submit 
                to the Secretary reports, on a quarterly basis, 
                detailing the use of such funds and including such 
                information as the Secretary shall require.''; and
            (2) by adding at the end the following new subparagraphs:
                    ``(D) Prohibitions.--None of the funds made 
                available under subparagraph (A) may be used for any 
                political activities, political advocacy, or lobbying 
                (as such terms are defined by Circular A-122 of the 
                Office of Management and Budget, entitled `Cost 
                Principles for Non-Profit Organizations'), or for 
                expenses for travel to engage in political activities 
                or preparation of or provision of advice on tax 
                returns.
                    ``(E) Program compliance systems.--Each recipient 
                of amounts made available under subparagraph (A) shall 
                develop systems to ensure compliance with the program 
                and the requirements of this paragraph.
                    ``(F) Penalties.--The Secretary may impose 
                penalties on any recipient of amounts made available 
                under subparagraph (A) that fails to comply with any 
                requirement under this paragraph or of the program 
                established pursuant to this paragraph, which penalties 
                may include--
                            ``(i) ineligibility for further assistance 
                        from amounts made available under subparagraph 
                        (A); and
                            ``(ii) requiring the recipient to reimburse 
                        the Secretary for any amounts that were so 
                        misused.''.

                    TITLE VI--PRESERVATION DATABASE

SEC. 601. PRESERVATION DATABASE.

    (a) Unique Identifier.--The Secretary of Housing and Urban 
Development, in consultation with the Secretary of Agriculture, shall 
establish a unique alphanumeric identifier for each covered multifamily 
property (as such term is defined in subsection (i)). A property shall 
have only one such identifier, regardless of whether such property is 
receiving more than one of the forms of assistance identified in 
subsection (i).
    (b) Public Availability of Information.--The Secretary of Housing 
and Urban Development shall require the submission of information and 
make publicly available such information about each covered multifamily 
property, which information shall include the following:
            (1) The unique identifier for the property established 
        pursuant to subsection (a).
            (2) The name of the property.
            (3) The address and geographical coordinates of the 
        property.
            (4) The name of, and contact information for, the owner (or 
        owners) or sponsor (or sponsors) of the property.
            (5) A characterization of the type of owners or sponsors of 
        the property (such as nonprofit or for-profit).
            (6) The name of, and contact information for, the property 
        management company.
            (7) The year that the property was built or placed in 
        service.
            (8) The total number of dwelling units in the property.
            (9) The total number of dwelling units in the property of 
        each size (such as studio units, 1-bedroom units, or 2-bedroom 
        units).
            (10) The average income of tenants residing in dwelling 
        units in the property receiving project-based rental 
        assistance, according to the most recent available information.
            (11) For each size of dwelling unit in the property, the 
        contract rents for such dwelling units.
            (12) For each size of dwelling unit in the property, the 
        ratio of the contract rents for such dwelling units to the fair 
        market rent established under section 8(c) of the United States 
        Housing Act of 1937 for such size dwelling units for the area 
        in which the property is located.
            (13) The most recent 3 scores for the property for any 
        physical inspections, including any real estate assessment 
        center (REAC) scores for the property, and the dates of such 
        inspections.
            (14) Indicators of the financial condition of the property, 
        which may include notification of any foreclosure proceedings 
        on the property and any bankruptcy filings by the entity 
        holding title to the property.
            (15) The form or forms of assistance identified in 
        subsection (i) that are provided for the property.
            (16) For each form of assistance identified in subsection 
        (i) that is provided for the property, the total number of 
        dwelling units in the property for which such assistance is 
        provided.
            (17) For each form of assistance identified in subsection 
        (i) that is provided for the property, the total number of 
        assisted dwelling units in the property of each size (such as 
        studio units, 1-bedroom units, and 2-bedroom units).
            (18) For each form of assistance identified in subsection 
        (i) that is provided for the property, a characterization of 
        occupancy restrictions applicable to the property (such as 
        restrictions limiting occupancy to only elderly, disabled, or 
        families).
            (19) For each form of assistance identified in subsection 
        (i) that is provided for the property, any limitations on the 
        incomes of tenants applicable to the assistance.
            (20) For each form of assistance identified in subsection 
        (i) that is provided for the property, the day, month, and year 
        that any affordability or low-income use restrictions 
        applicable to the property first applied.
            (21) For each form of assistance identified in subsection 
        (i) that is provided for the property, the day, month, and year 
        that any affordability or low-income use restrictions 
        applicable to the property will terminate.
            (22) For each form of assistance identified in subsection 
        (i) that is provided for the property, the day, month, and year 
        of any early termination date for such form of assistance after 
        which any affordability or low-income use restrictions will not 
        necessarily apply to the property (such as the termination of 
        the compliance period for any low-income housing tax credit for 
        the property or the date that a loan or mortgage for the 
        property held or insured by the Secretary is first eligible for 
        prepayment).
            (23) Any notices, plans, and information relating to the 
        property required under the Low-Income Housing Preservation and 
        Resident Homeownership Act of 1990 (12 U.S.C. 4101 et seq.), 
        including any notice of intent to prepay a mortgage under 
        section 212 of such Act, information provided under section 216 
        of such Act by the Secretary, second notice of intent under 
        section 216(d) of such Act, plan of action under section 217 of 
        such Act, and notice of approval of a plan of action under 
        section 225 of such Act.
            (24) Any notice of a request to terminate an insurance 
        contract under title II of the National Housing Act for a loan 
        or mortgage on the property.
            (25) Any notice of a request to prepay a loan or mortgage 
        on the property insured under title II of the National Housing 
        Act and an indication of whether such request was made in 
        conjunction with a refinance application under such title.
            (26) Any notice under section 8(c)(8) of the United States 
        Housing Act of 1937 of proposed termination of an assistance 
        contract under such section for the property.
            (27) A description of any notice indicating an intention of 
        the owner in selling the property.
            (28) Any other information as the Secretary or the designee 
        of the Secretary determines is appropriate.
    (c) Means.--
            (1) Availability through world wide web.--The information 
        made available pursuant to subsection (b) shall be made 
        available to the public through a World Wide Web site of the 
        Department of Housing and Urban Development.
            (2) Searchable electronic database.--Such information shall 
        be made available in a searchable electronic database format 
        that allows for the data for each of the forms of assistance 
        specified in subsection (i) to be aggregated in a single 
        database.
            (3) Use of existing systems and databases.--The 
        requirements of subsection (b) may be met by adapting existing 
        systems or databases to include the unique identifier 
        established pursuant to subsection (a) and the information 
        specified in subsection (b).
            (4) Annual and quarterly list.--At least annually, the 
        Secretary shall update and make available a list of properties 
        receiving one of more forms of assistance specified in 
        subsection (i). At least on a quarterly basis, the Secretary 
        shall make available through a World Wide Web site of the 
        Department of Housing and Urban Development a list of 
        properties receiving one or more forms of assistance specified 
        in subsection (i). Each such annual and quarterly list shall 
        include, for each such property, the unique identifier 
        established pursuant to subsection (a) and the information 
        specified in paragraphs (1) through (3) of subsection (b).
    (d) Updating.--The information made available pursuant to 
subsection (b) shall be updated not less than annually or in accordance 
with any rules or practice applicable to the subsidy program involved 
that require information to be made available more frequently. Any 
historical databases shall remain available to the public through a 
World Wide Web site of the Department of Housing and Urban Development.
    (e) Initial Availability.--The Secretary of Housing and Urban 
Development shall make information initially publicly available 
pursuant to this section not later than the expiration of the 18-month 
period beginning on the date of the enactment of this Act.
    (f) Information From Department of Agriculture.--The Secretary of 
Agriculture shall take such actions as may be necessary to ensure that 
information regarding any covered multifamily properties described in 
paragraphs (1)(E) and (3)(G) of subsection (i) that is sufficient for 
the Secretary of Housing and Urban Development to comply with the 
requirements of this section, with respect to such properties, is 
timely made available to the Secretary of Housing and Urban 
Development.
    (g) Information From Secretary of the Treasury.--The Secretary of 
the Treasury shall take such actions as may be necessary to ensure that 
information regarding any covered multifamily properties described in 
paragraphs (4) and (6) of subsection (i) that is sufficient for the 
Secretary of Housing and Urban Development to comply with the 
requirements of this section, with respect to such properties, is 
timely made available to the Secretary of Housing and Urban 
Development.
    (h) Grants to States and Localities.--
            (1) Authority.--The Secretary of Housing and Urban 
        Development shall, to the extent amounts are made available for 
        grants under this subsection, make grants to States and units 
        of local government to enable such entities to collect and make 
        available to the public information about State and local 
        assistance provided to covered multifamily properties 
        identified in databases developed by the Secretary pursuant to 
        this section or to other properties assisted by such States and 
        units of local government.
            (2) Authorization of appropriations.--There is authorized 
        to be appropriated to the Secretary of Housing and Urban 
        Development for grants under this subsection such sums as may 
        be necessary in each fiscal year to carry out this subsection.
    (i) Covered Multifamily Properties.--For purposes of this section, 
the term ``covered multifamily property'' means a property consisting 
of more than 4 rental dwelling units, which property--
            (1) is covered in whole or in part by a contract for 
        assistance that is attached to the structure under--
                    (A) section 8 of the United States Housing Act of 
                1937 (42 U.S.C. 1437f), including--
                            (i) subsections (b) and (o)(13) of such 
                        section 8;
                            (ii) the new construction and substantial 
                        rehabilitation program under such section 
                        8(b)(2), as in effect before October 1, 1983;
                            (iii) the property disposition program 
                        under such section 8(b);
                            (iv) the moderate rehabilitation program 
                        under such section 8(e)(2); and
                            (v) the loan management assistance program 
                        under such section 8;
                    (B) section 23 of the United States Housing Act of 
                1937, as in effect before January 1, 1975;
                    (C) the rent supplement program under section 101 
                of the Housing and Urban Development Act of 1965 (12 
                U.S.C. 1701s);
                    (D) section 8 of the United States Housing Act of 
                1937, following conversion from assistance under 
                section 101 of the Housing and Urban Development Act of 
                1965; or
                    (E) section 521 of the Housing Act of 1949 (42 
                U.S.C. 1490a);
            (2) is financed by a mortgage insured or held by the 
        Secretary under title II of the National Housing Act (12 U.S.C. 
        1707 et seq.);
            (3) receives assistance that is attached to the structure 
        pursuant to--
                    (A) section 202 of the Housing Act of 1959 (12 
                U.S.C. 1701q), including properties receiving 
                assistance prior to the enactment of the Cranston-
                Gonzalez National Affordable Housing Act;
                    (B) section 811 of the Cranston-Gonzalez National 
                Affordable Housing Act (42 U.S.C. 8013);
                    (C) section 5 or 9 of the United States Housing Act 
                of 1937 (42 U.S.C. 1437c, 1437g);
                    (D) title II of the Cranston-Gonzalez National 
                Affordable Housing Act (42 U.S.C. 12721 et seq.);
                    (E) subtitle D of title VIII of the Cranston-
                Gonzalez National Affordable Housing Act (42 U.S.C. 
                12901 et seq.);
                    (F) title IV of the McKinney-Vento Homeless 
                Assistance Act (12 U.S.C. 11301 et seq.); or
                    (G) sections 514, 515, or 516 of the Housing Act of 
                1949 (42 U.S.C. 1484, 1485);
            (4) is financed in whole or part with low-income housing 
        tax credits pursuant to section 42 of the Internal Revenue Code 
        of 1986 (26 U.S.C. 42);
            (5) is financed in whole or part with amounts from the 
        Housing Trust Fund established under section 1338 of the 
        Federal Housing Enterprises Financial Safety and Soundness Act 
        of 1992 (12 U.S.C. 4568); or
            (6) is financed in whole or in part with the proceeds from 
        a bond issued pursuant to section 141 or 142 of the Internal 
        Revenue Code of 1986 (26 U.S.C. 141, 142).
    (j) Protection of Information.--This title shall not be construed 
to require disclosure of Social Security numbers, personal tax returns, 
or any other personal financial information of or concerning 
individuals who have an interest in the ownership or management 
entities of covered housing.

       TITLE VII--SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY

SEC. 701. SHORT TITLE AND TABLE OF CONTENTS.

    This title may be cited as the ``Section 202 Supportive Housing for 
the Elderly Act of 2010''.

                  Subtitle A--New Construction Reforms

SEC. 711. PROJECT RENTAL ASSISTANCE.

    Paragraph (2) of section 202(c) of the Housing Act of 1959 (12 
U.S.C. 1701q(c)(2)) is amended--
            (1) by inserting after ``assistance.--'' the following: 
        ``(A) Initial project rental assistance contract.--'';
            (2) in the last sentence, by striking ``may'' and inserting 
        ``shall''; and
            (3) by adding at the end the following new subparagraph:
            ``(B) Renewal of and increases in contract amounts.--
                    ``(i) Expiration of contract term.--Upon the 
                expiration of each contract term, the Secretary shall 
                adjust the annual contract amount to provide for 
                reasonable project costs, and any increases, including 
                adequate reserves, supportive services, and service 
                coordinators.
                    ``(ii) Emergency situations.--In the event of 
                emergency situations that are outside the control of 
                the owner, the Secretary shall increase the annual 
                contract amount, subject to reasonable review and 
                limitations as the Secretary shall provide.''.

SEC. 712. SELECTION CRITERIA.

    Section 202(f)(1) of the Housing Act of 1959 (12 U.S.C. 1701q(f)) 
is amended--
            (1) by redesignating subparagraphs (F) and (G) as 
        subparagraphs (G) and (H), respectively; and
            (2) by inserting after subparagraph (E):
            ``(F) the extent to which the applicant has ensured that a 
        service coordinator will be employed or otherwise retained for 
        the housing, who has the managerial capacity and responsibility 
        for carrying out the actions described in subparagraphs (A) and 
        (B) of subsection (g)(2);''.

SEC. 713. DEVELOPMENT COST LIMITATIONS.

    Section 202(h)(1) of the Housing Act of 1959 (12 U.S.C. 
1701q(h)(1)) is amended, in the matter preceding subparagraph (A), by 
inserting ``reasonable'' before ``development cost limitations''.

SEC. 714. OWNER DEPOSITS.

    Section 202(j)(3)(A) of the Housing Act of 1959 (12 U.S.C. 
1701q(j)(3)(A)) is amended by inserting after the period at the end the 
following: ``Such amount shall be used only to cover operating deficits 
during the first 3 years of operations and shall not be used to cover 
construction shortfalls or inadequate initial project rental assistance 
amounts.''.

SEC. 715. DEFINITION OF PRIVATE NONPROFIT ORGANIZATION.

    Paragraph (4) of section 202(k) of the Housing Act of 1959 (12 
U.S.C. 1701q(k)(4)) is amended to read as follows:
            ``(4) The term ``private nonprofit organization'' means--
                    ``(A) any incorporated private institution or 
                foundation--
                            ``(i) no part of the net earnings of which 
                        inures to the benefit of any member, founder, 
                        contributor, or individual;
                            ``(ii) which has a governing board--
                                    ``(I) the membership of which is 
                                selected in a manner to assure that 
                                there is significant representation of 
                                the views of the community in which 
                                such housing is located, except that, 
                                in the case of any organization that is 
                                the sponsor of multiple housing 
                                projects assisted under this section, 
                                the organization may comply with this 
                                subclause by having a local advisory 
                                board for each community to the 
                                governing board of the organization, 
                                the membership of which is selected in 
                                the manner required under this 
                                subclause; and
                                    ``(II) which is responsible for the 
                                operation of the housing assisted under 
                                this section; and
                            ``(iii) which is approved by the Secretary 
                        as to financial responsibility;
                    ``(B) a for-profit limited partnership the sole 
                general partner of which is--
                            ``(i) an organization meeting the 
                        requirements under subparagraphs (A); or
                            ``(ii) a for-profit corporation wholly 
                        owned and controlled by one or more 
                        organizations meeting the requirements under 
                        subparagraph (A); and
                    ``(C) a limited liability company wholly owned or 
                controlled by one or more organizations meeting the 
                requirements under subparagraph (A).''.

SEC. 716. PREFERENCES FOR HOMELESS ELDERLY.

    Subsection (j) of section 202 of the Housing Act of 1959 (12 U.S.C. 
1701q(j)) is amended by adding at the end the following new paragraph:
            ``(9) Preferences for homeless elderly.--The Secretary 
        shall permit an owner of housing assisted under this section to 
        establish for, and apply to, such housing a preference in 
        tenant selection for the homeless elderly, either within the 
        application or after selection pursuant to subsection (f), but 
        only if--
                    ``(A) such preference is consistent with paragraph 
                (2); and
                    ``(B) the owner demonstrates that the supportive 
                services identified pursuant to subsection (e)(4), or 
                additional supportive services to be made available 
                upon implementation of the preference, will meet the 
                needs of the homeless elderly, maintain safety and 
                security for all tenants, and be provided on a 
                consistent, long-term, and economical basis.''.

SEC. 717. NONMETROPOLITAN ALLOCATION.

    Paragraph (3) of section 202(l) of the Housing Act of 1959 (12 
U.S.C. 1701q(l)(3)) is amended by inserting after the period at the end 
the following: ``In complying with this paragraph, the Secretary shall 
either operate a national competition for the nonmetropolitan funds or 
make allocations to regional offices of the Department of Housing and 
Urban Development.''.

                        Subtitle B--Refinancing

SEC. 721. APPROVAL OF PREPAYMENT OF DEBT.

    Subsection (a) of section 811 of the American Homeownership and 
Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended--
            (1) in the matter preceding paragraph (1), by inserting ``, 
        for which the Secretary's consent to prepayment is required,'' 
        after ``Affordable Housing Act)'';
            (2) in paragraph (1)--
                    (A) by inserting ``at least 30 years following'' 
                before ``the maturity date'';
                    (B) by inserting ``project-based'' before ``rental 
                assistance payments contract'';
                    (C) by inserting ``project-based'' before ``rental 
                housing assistance programs''; and
                    (D) by inserting ``, or any successor project-based 
                rental assistance program,'' after ``1701s))'';
            (3) by amending paragraph (2) to read as follows:
            ``(2) the prepayment may involve refinancing of the loan if 
        such refinancing results in--
                    ``(A) a lower interest rate on the principal of the 
                loan for the project and in reductions in debt service 
                related to such loan; or
                    ``(B) a transaction in which the project owner will 
                address the physical needs of the project, but only if, 
                as a result of the refinancing--
                            ``(i) the rent charges for unassisted 
                        families residing in the project do not 
                        increase or such families are provided rental 
                        assistance under a senior preservation rental 
                        assistance contract for the project pursuant to 
                        subsection (e); and
                            ``(ii) the overall cost for providing 
                        rental assistance under section 8 for the 
                        project (if any) is not increased, except, upon 
                        approval by the Secretary to--
                                    ``(I) mark-up-to-market contracts 
                                pursuant to section 524(a)(3) of the 
                                Multifamily Assisted Housing Reform and 
                                Affordability Act of 1997 (42 U.S.C. 
                                1437f note), as such section is carried 
                                out by the Secretary for properties 
                                owned by nonprofit organizations; or
                                    ``(II) mark-up-to-budget contracts 
                                pursuant to section 524(a)(4) of the 
                                Multifamily Assisted Housing Reform and 
                                Affordability Act of 1997 (42 U.S.C. 
                                1437f note), as such section is carried 
                                out by the Secretary for properties 
                                owned by eligible owners (as such term 
                                is defined in section 202(k) of the 
                                Housing Act of 1959 (12 U.S.C. 
                                1701q(k)); and''; and
            (4) by adding at the end the following:
            ``(3) notwithstanding paragraph (2)(A), the prepayment and 
        refinancing authorized pursuant to paragraph (2)(B) involves an 
        increase in debt service only in the case of a refinancing of a 
        project assisted with a loan under such section 202 carrying an 
        interest rate of 6 percent or lower.''.

SEC. 722. SOURCES OF REFINANCING.

    The last sentence of section 811(b) of the American Homeownership 
and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) is 
amended--
            (1) by inserting after ``National Housing Act,'' the 
        following: ``or approving the standards used by authorized 
        lenders to underwrite a loan refinanced with risk sharing as 
        provided by section 542 of the Housing and Community 
        Development Act of 1992 (12 U.S.C. 1701 note),''; and
            (2) by striking ``may'' and inserting ``shall''.

SEC. 723. USE OF UNEXPENDED AMOUNTS.

    Subsection (c) of section 811 of the American Homeownership and 
Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended--
            (1) by striking ``Use of Unexpended Amounts.--'' and 
        inserting ``Use of Pro-ceeds.--'';
            (2) by amending the matter preceding paragraph (1) to read 
        as follows: ``Upon execution of the refinancing for a project 
        pursuant to this section, the Secretary shall ensure that 
        proceeds are used in a manner advantageous to tenants of the 
        project, or are used in the provision of affordable rental 
        housing and related social services for elderly persons that 
        are tenants of the project or of other projects assisted with a 
        loan under section 202 of the Housing Act of 1959 (12 U.S.C. 
        1701q) by the private nonprofit organization project owner, 
        private nonprofit organization project sponsor, or private 
        nonprofit organization project developer, including--'';
            (3) in paragraph (1), by striking ``not more than 15 
        percent of'';
            (4) in paragraph (2), by inserting before the semicolon the 
        following; ``, including reducing the number of units by 
        reconfiguring units that are functionally obsolete, 
        unmarketable, or not economically viable'';
            (5) in paragraph (3), by striking ``or'' at the end;
            (6) in paragraph (4), by striking ``according to a pro rata 
        allocation of shared savings resulting from the refinancing.'' 
        and inserting a semicolon; and
            (7) by adding at the end the following new paragraphs:
            ``(5) rehabilitation of the project to ensure long-term 
        viability;
            ``(6) the payment to the project owner, sponsor, or third 
        party developer of a developer's fee in an amount not to exceed 
        or duplicate--
                    ``(A) in the case of a project refinanced through a 
                State low income housing tax credit program, the fee 
                permitted by the low income housing tax credit program 
                as calculated by the State program as a percentage of 
                acceptable development cost as defined by that State 
                program; or
                    ``(B) in the case of a project refinanced through 
                any other source of refinancing, 15 percent of the 
                acceptable development cost; and
            ``(7) the payment of equity, if any, to--
                    ``(A) in the case of a sale, to the seller or the 
                sponsor of the seller, in an amount equal to the lesser 
                of the purchase price or the appraised value of the 
                project, as each is reduced by the cost of prepaying 
                any outstanding indebtedness on the project and 
                transaction costs of the sale; or
                    ``(B) in the case of a refinancing without the 
                transfer of the project, to the project owner or the 
                project sponsor, in an amount equal to the difference 
                between the appraised value of the project less the 
                outstanding indebtedness and total acceptable 
                development cost.
For purposes of paragraphs (6)(B) and (7)(B), the term ``acceptable 
development cost'' shall include, as applicable, the cost of 
acquisition, rehabilitation, loan prepayment, initial reserve deposits, 
and transaction costs.''.

SEC. 724. USE OF PROJECT RESIDUAL RECEIPTS.

    Paragraph (1) of section 811(d) of the American Homeownership and 
Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended--
            (1) by striking ``not more than 15 percent of''; and
            (2) by inserting before the period at the end the 
        following: ``or other purposes approved by the Secretary''.

SEC. 725. ADDITIONAL PROVISIONS.

    Section 811 of the American Homeownership and Economic Opportunity 
Act of 2000 (12 U.S.C. 1701q note) is amended by adding at the end the 
following new subsections:
    ``(e) Senior Preservation Rental Assistance Contracts.--
Notwithstanding any other provision of law, in connection with a 
prepayment plan for a project approved under subsection (a) by the 
Secretary or as otherwise approved by the Secretary to prevent 
displacement of elderly residents of the project in the case of 
refinancing or recapitalization and to further preservation and 
affordability of such project, the Secretary shall provide project-
based rental assistance for the project under a senior preservation 
rental assistance contract, as follows:
            ``(1) Assistance under the contract shall be made available 
        to the private nonprofit organization owner--
                    ``(A) for a term of at least 20 years, subject to 
                annual appropriations; and
                    ``(B) under the same rules governing project-based 
                rental assistance made available under section 8 of the 
                Housing Act of 1937 or under the rules governing such 
                other assistance as may be made available for the 
                project.
            ``(2) Any projects for which a senior preservation rental 
        assistance contract is provided shall be subject to a use 
        agreement to ensure continued project affordability having a 
        term of the longer of (A) the term of the senior preservation 
        rental assistance contract, or (B) such term as is required by 
        the new financing.
    ``(f) Subordination or Assumption of Existing Debt.--In lieu of 
prepayment under this section of the indebtedness with respect to a 
project, the Secretary may approve--
            ``(1) in connection with new financing for the project, the 
        subordination of the loan for the project under section 202 of 
        the Housing Act of 1959 (as in effect before the enactment of 
        the Cranston-Gonzalez National Affordable Housing Act) and the 
        continued subordination of any other existing subordinate debt 
        previously approved by the Secretary to facilitate preservation 
        of the project as affordable housing; or
            ``(2) the assumption (which may include the subordination 
        described in paragraph (1)) of the loan for the project under 
        such section 202 in connection with the transfer of the project 
        with such a loan to a private nonprofit organization.
    ``(g) Flexible Subsidy Debt.--The Secretary shall waive the 
requirement that debt for a project pursuant to the flexible subsidy 
program under section 201 of the Housing and Community Development 
Amendments of 1978 (12 U.S.C. 1715z-1a) be prepaid in connection with a 
prepayment, refinancing, or transfer under this section of a project if 
such waiver is necessary for the financial feasibility of the 
transaction and is consistent with the long-term preservation of the 
project as affordable housing.
    ``(h) Tenant Involvement in Prepayment and Refinancing.--The 
Secretary shall not accept an offer to prepay the loan for any project 
under section 202 of the Housing Act of 1959 unless the Secretary has--
            ``(1) determined that the owner of the project has notified 
        the tenants of the owner's request for approval of a 
        prepayment;
            ``(2) determined that the owner of the project has provided 
        the tenants with an opportunity to comment on the owner's 
        request for approval of a prepayment, including a description 
        of any anticipated rehabilitation or other use of the proceeds 
        from the transaction, and its impacts on project rents, tenant 
        contributions, or the affordability restrictions for the 
        project; and
            ``(3) taken such comments into consideration.
    ``(i) Definition of Private Nonprofit Organization.--For purposes 
of this section, the term `private nonprofit organization' has the 
meaning given such term in section 202(k) of the Housing Act of 1959 
(12 U.S.C. 1701q(k)).''.

                 Subtitle C--Assisted Living Facilities

SEC. 731. DEFINITION OF ASSISTED LIVING FACILITY.

    Section 202b(g) of the Housing Act of 1959 (12 U.S.C. 1701q-2(g)) 
is amended by striking paragraph (1) and inserting the following new 
paragraph:
            ``(1) the term `assisted living facility' means a facility 
        that--
                    ``(A) is owned by a private nonprofit organization; 
                and
                    ``(B)(i) is licensed and regulated by a State (or 
                if there is no State law providing for such licensing 
                and regulation by the State, by the municipality or 
                other political subdivision in which the facility is 
                located); or
                    ``(ii)(I) makes available, directly or through 
                licensed or certified third party service providers, to 
                residents at the resident's request or choice 
                supportive services to assist the residents in carrying 
                out the activities of daily living, as described in 
                section 232(b)(6)(B) of the National Housing Act (12 
                U.S.C. 1715w(b)(6)(B)); and
                    ``(II) provides separate dwelling units for 
                residents, each of which may contain a full kitchen and 
                bathroom and which includes common rooms and other 
                facilities appropriate for the provision of supportive 
                services to the residents of the facility; and''.

SEC. 732. MONTHLY ASSISTANCE PAYMENT UNDER RENTAL ASSISTANCE.

    Clause (iii) of section 8(o)(18)(B) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(o)(18)(B)(iii)) is amended by inserting 
before the period at the end the following: ``, except that a family 
may be required at the time the family initially receives such 
assistance to pay rent in an amount exceeding 40 percent of the monthly 
adjusted income of the family by such an amount or percentage that is 
reasonable given the services and amenities provided and as the 
Secretary deems appropriate.''.

           Subtitle D--National Senior Housing Clearinghouse

SEC. 741. NATIONAL SENIOR HOUSING CLEARINGHOUSE.

    (a) Establishment.--Not later than 12 months after the date of 
enactment of this Act, the Secretary of Housing and Urban Development 
(in this section referred to as the ``Secretary'') shall establish and 
operate a clearinghouse to serve as a national repository to receive, 
collect, process, assemble, and disseminate information regarding the 
availability and quality of multifamily developments for elderly 
tenants, including--
            (1) the availability of--
                    (A) supportive housing for the elderly pursuant to 
                section 202 of the Housing Act of 1959 (12 U.S.C. 
                1701q), including any housing unit assisted with a 
                project rental assistance contract under such section;
                    (B) properties and units eligible for assistance 
                under section 8 of the United States Housing Act of 
                1937 (42 U.S.C. 1437f);
                    (C) properties eligible for the low-income housing 
                tax credit under section 42 of the Internal Revenue 
                Code of 1986;
                    (D) units in assisted living facilities insured 
                pursuant to section 221(d)(4) of the National Housing 
                Act (12 U.S.C. 1715l(d)(4));
                    (E) units in any multifamily project that has been 
                converted into an assisted living facility for elderly 
                persons pursuant to section 202b of the Housing Act of 
                1959 (12 U.S.C. 1701q-2); and
                    (F) any other federally assisted or subsidized 
                housing for the elderly;
            (2) the number of available units in each property, 
        project, or facility described in paragraph (1);
            (3) the number of bedrooms in each available unit in each 
        property, project, or facility described in paragraph (1);
            (4) the estimated cost to a potential tenant to rent or 
        reside in each available unit in each property, project, or 
        facility described in paragraph (1);
            (5) the presence of a waiting list for entry into any 
        available unit in each property, project, or facility described 
        in paragraph (1);
            (6) the number of persons on the waiting list for entry 
        into any available unit in each property, project, or facility 
        described in paragraph (1);
            (7) the amenities available in each available unit in each 
        property, project, or facility described in paragraph (1), 
        including--
                    (A) the services provided by such property, 
                project, or facility;
                    (B) the size and availability of common space 
                within each property, project, or facility;
                    (C) the availability of organized activities for 
                individuals residing in such property, project, or 
                facility; and
                    (D) any other additional amenities available to 
                individuals residing in such property, project, or 
                facility;
            (8) the level of care (personal, physical, or nursing) 
        available to individuals residing in any property, project, or 
        facility described in paragraph (1);
            (9) whether there is a service coordinator in any property, 
        project, or facility described in paragraph (1); and
            (10) any other criteria determined appropriate by the 
        Secretary.
    (b) Collection and Updating of Information.--
            (1) Initial collection.--Not later than 180 days after the 
        date of enactment of this Act, the Secretary shall conduct an 
        annual survey requesting information from each owner of a 
        property, project, or facility described in subsection (a)(1) 
        regarding the provisions described in paragraphs (2) through 
        (11) of such subsection.
            (2) Response time.--Not later than 60 days after receiving 
        the request described under paragraph (1), the owner of each 
        such property, project, or facility shall submit such 
        information to the Secretary.
            (3) Public availability.--Not later than 120 days after the 
        Secretary receives the submission of any information required 
        under paragraph (2), the Secretary shall make such information 
        publicly available through the clearinghouse.
            (4) Updates.--The Secretary shall conduct a biennial survey 
        of each owner of a property, project, or facility described in 
        subsection (a)(1) for the purpose of updating or modifying 
        information provided in the initial collection of information 
        under paragraph (1). Not later than 30 days after receiving 
        such a request, the owner of each such property, project, or 
        facility shall submit such updates or modifications to the 
        Secretary. Not later than 60 days after receiving such updates 
        or modifications, the Secretary shall inform the clearinghouse 
        of such updated or modified information.
    (c) Functions.--The clearinghouse established under subsection (a) 
shall--
            (1) respond to inquiries from State and local governments, 
        other organizations, and individuals requesting information 
        regarding the availability of housing in multifamily 
        developments for elderly tenants;
            (2) make such information publicly available via the 
        Internet website of the Department of Housing and Urban 
        Development, which shall include--
                    (A) access via electronic mail; and
                    (B) an easily searchable, sortable, downloadable, 
                and accessible index that itemizes the availability of 
                housing in multifamily developments for elderly tenants 
                by State, county, and zip code;
            (3) establish a toll-free number to provide the public with 
        specific information regarding the availability of housing in 
        multifamily developments for elderly tenants; and
            (4) perform any other duty that the Secretary determines 
        necessary to achieve the purposes of this section.
    (d) Relationship With Other Databases.--In carrying out this 
section, the Secretary may make the clearinghouse a part of any other 
multifamily housing database that the Secretary maintains or is 
otherwise required to establish pursuant to this Act or any other 
provision of law.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as necessary to carry out this section.

                 TITLE VIII--RURAL HOUSING PRESERVATION

SEC. 801. SHORT TITLE.

    This title may be cited as the ``Rural Housing Preservation Act of 
2010''.

SEC. 802. PRESERVATION OF MULTIFAMILY HOUSING.

    (a) Preservation Program.--Title V of the Housing Act of 1949 (42 
U.S.C. 1471 et seq.) is amended by adding at the end the following new 
section:

``SEC. 545. PRESERVATION OF MULTIFAMILY HOUSING AND PROTECTION OF 
              TENANTS.

    ``(a) Preservation Program.--The Secretary shall, subject to the 
availability of amounts appropriated, carry out a preservation program 
in accordance with this section to provide financial incentives and 
other assistance to owners of eligible projects through long-term use 
agreements entered into between the project owners and the Secretary.
    ``(b) Applications To Participate.--
            ``(1) In general.--The Secretary shall accept applications 
        from owners of eligible projects to participate in the 
        preservation program under this section.
            ``(2) Priority.--In selecting among applications of 
        eligible projects to participate in the preservation program, 
        the Secretary may give priority to applications for such 
        projects that are located on tribal trust lands or other Indian 
        areas, in colonias (as such term is defined in section 916(e) 
        of the Cranston-Gonzalez National Affordable Housing Act (42 
        U.S.C. 5306 note), or in other small, poor, low-income 
        communities.
    ``(c) Long-Term Viability Plan.--
            ``(1) Requirement.--The Secretary shall prepare and approve 
        a long-term viability plan under this subsection with respect 
        to each eligible project for which the owner requests to 
        participate.
            ``(2) Contents.--Each long-term viability plan for an 
        eligible project shall include the following information:
                    ``(A) Physical needs assessment.--A physical needs 
                assessment of the project that identifies and projects, 
                for the following 30 years--
                            ``(i) all necessary repairs, improvements, 
                        maintenance, and management standards for the 
                        project, and when they will be made, in order 
                        to meet the requirements of this title; and
                            ``(ii) the costs associated with the items 
                        referred to clause (i).
                    ``(B) Financial plan.--A financial plan for the 
                project that--
                            ``(i) reviews the financial stability of 
                        the project;
                            ``(ii) includes the loan restructuring 
                        elements, rent adjustments, management and 
                        operational efficiencies, and other financial 
                        adjustments to the project that are necessary 
                        to cover operating expenses for the project and 
                        maintain an adequate financial reserve for the 
                        future maintenance and capital needs of the 
                        project;
                            ``(iii) provides the project owner with a 
                        long-term rate of return on equity of the 
                        project owner, as determined by the Secretary, 
                        commensurate to comparable rural multifamily 
                        housing projects for which a tax credit is 
                        provided under section 42 of the Internal 
                        Revenue Code of 1986 (26 U.S.C. 42), and 
                        provides that any return in excess of such rate 
                        of return shall be made available to the 
                        Secretary only for use under section 514, 515, 
                        or 516;
                            ``(iv) meets the physical needs for the 
                        project determined under the physical needs 
                        assessment;
                            ``(v) ensures that rents available under 
                        the plan are affordable to eligible households 
                        in accordance with subsection (f); and
                            ``(vi) addresses any costs associated with 
                        any temporary tenant displacement resulting 
                        from renovations or rehabilitation undertaken 
                        as a result of participation of the project in 
                        the preservation program.
            ``(3) Development through participating administrative 
        entities.--The Secretary may develop long-term viability plans 
        through the use of third-party participating administrative 
        entities, who may be a private contractor, a State housing 
        finance agency, or a nonprofit organization.
            ``(4) Preservation determination.--Based on the long-term 
        viability plan for an eligible project, the Secretary shall 
        determine whether to offer the project owner a financial 
        restructuring plan under subsection (d) and the financial 
        incentives to be included in any such plan offered.
            ``(5) Final review and comment.--Before a determination is 
        made under subparagraph (D) with respect to any long-term 
        viability plan prepared by the Secretary, the Secretary shall--
                    ``(A) provide the project owner an opportunity to 
                review the plan and discuss the plan with the Secretary 
                or its agent;
                    ``(B) make available to the tenants of the project 
                a copy of such plan and provide a period of not less 
                than 30 days for tenants to submit comments regarding 
                the plan to the Secretary; and
                    ``(C) respond in writing to such comments.
            ``(6) Fees.--The Secretary may charge the project owner a 
        fee for preparation of the long-term viability plan.
            ``(7) Payment of fees.--If a long-term viability for a 
        project is approved, the payment of such fee may be 
        incorporated into a project owner's financial restructuring 
        plan for the project provided by the Secretary pursuant to 
        subsection (d).
    ``(d) Financial Restructuring Plan; Preservation Incentives.--Based 
on the long-term viability plan for an eligible project, the Secretary 
may offer a project owner a financial restructuring plan for the 
project. Such a plan may include one or more of the following 
preservation incentives:
            ``(1) Reduction or elimination of interest on the loan or 
        loans for the project made under section 514, 515, or 516.
            ``(2) Partial or full deferral of payments due under such 
        loan or loans.
            ``(3) Forgiveness of such loan or loans.
            ``(4) Subordination of such loan or loans, subject to such 
        terms and conditions as the Secretary shall determine.
            ``(5) Reamortization of loan payments under such loan or 
        loans over extended terms.
            ``(6) A grant from the Secretary for the project.
            ``(7) Payment of project costs associated with developing 
        the long-term viability plan.
            ``(8) Opportunity for project owners to obtain further 
        investment equity from third parties.
            ``(9) A direct loan or guarantee of a loan for the project, 
        with a subsidized interest rate without regard to the value of 
        the project.
    ``(e) Long-Term Use Agreement.--
            ``(1) In general.--If the owner of an eligible project 
        agrees to the terms of a financial restructuring plan for the 
        project providing preservation benefits under subsection (d), 
        in exchange for such benefits, the Secretary and the project 
        owner shall enter into a long-term use agreement under this 
        subsection for the project.
            ``(2) Agreement.--A long-term use agreement for an eligible 
        project shall include--
                    ``(A) the terms of the financial restructuring plan 
                for the project, including any preservation incentives 
                to be provided;
                    ``(B) an agreement by the project owner--
                            ``(i) to continue the property use 
                        restrictions with respect to the project in 
                        accordance with this title for a period of--
                                    ``(I) 30 years, or
                                    ``(II) the remaining term of any 
                                loans under this title for the project,
                        whichever ends later;
                            ``(ii) to comply with the long-term 
                        viability plan for the project; and
                            ``(iii) to comply with the rent terms under 
                        subsection (f) for the project;
                    ``(C) provisions terminating the agreement if any 
                material preservation incentives for the project to be 
                provided under the agreement are no longer available 
                and the Secretary determines that such unavailability 
                is not the fault of the owner;
                    ``(D) any rent terms for the project pursuant to 
                subsection (f);
                    ``(E) a covenant which runs with the land;
                    ``(F) a representation and warranty by the owner to 
                provide safe, healthy, clean buildings pursuant to the 
                Secretary's guidelines;
                    ``(G) provisions providing for rural preservation 
                voucher assistance under section 542(c) for low-income 
                households residing in the project who are eligible for 
                such vouchers; and
                    ``(H) such other terms as the Secretary determines 
                are necessary to implement the purposes of this 
                section.
    ``(f) Rents Under Long-Term Use Agreement.--Rents for any eligible 
households residing in dwelling units in any preserved project shall 
comply with the following requirements:
            ``(1) Maximum household contribution to rent and 
        utilities.--The maximum household contribution to monthly rent 
        and utilities for any eligible household may not exceed 30 
        percent of the adjusted income of the eligible household.
            ``(2) Rent adjustments.--The rents for eligible projects 
        may be increased or decreased only on an annual basis and only 
        in accordance with standards incorporated in such agreement.
            ``(3) Lowest cost requirement.--In determining the terms of 
        a restructuring plan, and the type and amount of preservation 
        benefits under such plan to approve under this section for an 
        eligible project, the Secretary shall, to the extent 
        practicable, approve assistance that imposes the least cost to 
        the Secretary while meeting the requirements of the long-term 
        viability plan for the project.
    ``(g) Earned Income Disregard for Residents.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, the amount of the contribution toward rent for a dwelling 
        unit payable, by any household described in paragraph (3), for 
        occupancy in a project funded with a loan under section 514, 
        515, or 516 may not be increased as a result of the increased 
        income due to employment during the 12-month period beginning 
        on the date on which the employment is commenced.
            ``(2) Phase-in of rent increases.--Upon the expiration of 
        the 12-month period referred to in paragraph (1), the 
        contribution toward rent payable by a household described in 
        paragraph (3) may be increased due to the continued employment 
        of the household member described in subparagraph (3)(B), 
        except that during the 12-month period beginning upon such 
        expiration the amount of the increase may not be greater than 
        50 percent of the amount of the total increase in contribution 
        toward rent that would be applicable but for this paragraph.
            ``(3) Eligible household.--A household described in this 
        paragraph is a household that--
                    ``(A)(i) is an eligible household who resides in an 
                eligible project; or
                    ``(ii) is provided rural preservation voucher 
                assistance pursuant to section 542(c); and
                    ``(B)(i) whose income increases as a result of 
                employment of a member of the household who was 
                previously unemployed for 1 or more years;
                    ``(ii) whose earned income increases during the 
                participation of a household member in any family self-
                sufficiency or other job training program; or
                    ``(iii) who is or was, within 6 months, assisted 
                under any State program for temporary assistance for 
                needy families funded under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.) and whose 
                earned income increases.
    ``(h) Ineligibility.--
            ``(1) Procedure for determination.--The Secretary may 
        determine that a project owner is ineligible for participation 
        in the preservation program under this section in accordance 
        with the standards under paragraph (2).
            ``(2) Standards.--The Secretary may determine that a 
        project owner is ineligible if--
                    ``(A) the project owner has a history of poor 
                management or maintenance of multifamily housing 
                properties;
                    ``(B) the project owner is in default on a loan 
                made available under the section 514, 515, or 516 
                housing program;
                    ``(C) the Secretary is unable to enter into a long-
                term use agreement for the project that is the subject 
                of the application with the project owner within a 
                reasonable time;
                    ``(D) the project owner is suspended or debarred 
                from participating in Federal contracts or programs; or
                    ``(E) the Secretary has other good cause for 
                withholding from the project owner the benefits made 
                available under this section.
    ``(i) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Eligible household.--The term `eligible household' 
        means a household that, under section 514, 515, or 516, is 
        eligible to reside in a project funded with a loan made by the 
        Secretary under such section.
            ``(2) Eligible project.--The term `eligible project' means 
        a housing project funded with a loan made at any time by the 
        Secretary under section 514, 515, or 516, the principal 
        obligation of which has not been fully repaid.
            ``(3) Project owner; owner.--The terms `project owner' and 
        `owner' mean, with respect to an eligible project, an 
        individual or entity, or principals thereof that own, or plan 
        to purchase, the project.
            ``(4) Preserved project.--The term `preserved project' 
        means an eligible project for which the Secretary and owner 
        have entered into agreement on a financial restructuring plan 
        for the project and into a long-term use agreement for the 
        project, under this section.
    ``(j) Annual Report.--The Secretary shall submit a report to the 
Congress annually regarding the compliance of owners of eligible 
projects participating in the preservation program under this section 
with the requirements of such program, which shall identify and 
describe any significant failures to comply.
    ``(k) Authorization of Appropriations.--There are authorized to be 
appropriated for each of fiscal years 2011 through 2015 such sums as 
may be necessary to carry out the preservation program under this 
section.''.

SEC. 803. RURAL PRESERVATION AND RURAL TENANT PROTECTION VOUCHERS.

    Section 542 of the Housing Act of 1949 (42 U.S.C. 1490r) is amended 
by adding at the end the following new subsections:
    ``(c) Rural Preservation Assistance.--In the case of a housing 
project subject to a loan made under section 514, 515, or 516 that is a 
preserved project (as such term is defined in section 545(i)), the 
Secretary shall, to the extent that amounts for assistance under this 
subsection are provided in advance in appropriation Acts, make 
available to each eligible household (as such term is defined in 
section 545(i)) that is not already assisted under the rental 
assistance program under section 521 or the program for rental 
assistance under section 8 of the United States Housing Act of 1937 (42 
U.S.C. 1437f), and is residing in the project upon the date that a 
long-term use agreement is entered into pursuant to section 545(e) 
between the project owner and the Secretary, voucher assistance under 
this subsection or rental assistance under section 521 upon such date, 
as follows:
            ``(1) The amount of assistance provided shall be sufficient 
        to allow such household to remain in the project after it is 
        preserved.
            ``(2) The percentage of adjusted income paid by the 
        eligible household for rent and utilities for the assisted 
        dwelling shall not exceed 30 percent of adjusted income of the 
        eligible household.
            ``(3) The assistance shall be available to the eligible 
        household only during the period in which the eligible 
        household resides in the preserved project and the long-term 
        use agreement remains in effect.
            ``(4) Upon termination of the participation of the eligible 
        household in the assistance program, the assistance shall 
        remain attached to the preserved project and shall be available 
        for use by another eligible household residing in the preserved 
        project.
    ``(d) Rural Tenant Protection Vouchers for Prepayments and 
Foreclosures.--
            ``(1) In general.--In the case of a housing project subject 
        to a loan made under section 514, 515, or 516 that is prepaid 
        or foreclosed upon, the Secretary shall, to the extent that 
        amounts for assistance under this subsection are provided in 
        advance in appropriation Acts, make available to each eligible 
        household (as such term is defined in section 545(i)) that is 
        not assisted under the rental assistance program under section 
        521 or the program for rental assistance under section 8 of the 
        United States Housing Act of 1937 (42 U.S.C. 1437f), and is 
        residing in a dwelling unit in the project upon the date that 
        the Secretary approves the prepayment or submits notice of 
        foreclosure to the project owner, as applicable, voucher 
        assistance upon such date, as follows:
                    ``(A) Relocation vouchers.--In the case of any such 
                eligible household who must relocate from a project for 
                which the loan is being prepaid or foreclosed upon, 
                voucher assistance under this subsection shall be 
                subject to the terms of section 8(o) of the United 
                States Housing Act of 1937 (42 U.S.C. 1437(o)), except 
                that--
                            ``(i) the percentage of adjusted income 
                        paid by the eligible household for rent and 
                        utilities for the assisted dwelling unit shall 
                        not at any time exceed 30 percent of the 
                        adjusted income of the eligible household; and
                            ``(ii) a voucher provided pursuant to this 
                        subparagraph shall be subject to the terms of 
                        section 8(r) of such Act (relating to 
                        portability), except that if an eligible 
                        household uses the voucher to move to a 
                        community other than the community in which the 
                        project from which the family relocated 
                        pursuant to such prepayment or foreclosure is 
                        located, upon termination of the participation 
                        of such eligible family in the voucher program, 
                        the voucher shall be returned for use in the 
                        community in which such project is located.
                    ``(B) Enhanced vouchers.--In the case of any such 
                eligible household who remains in a project for which 
                the loan is prepaid or foreclosed upon, voucher 
                assistance under this subsection shall be subject to 
                the terms of section 8(t) of the United State Housing 
                Act of 1937 (42 U.S.C. 1437f(t)), except that--
                            ``(i) the percentage of adjusted income 
                        paid by the eligible household for rent and 
                        utilities for the assisted dwelling unit shall 
                        not at any time exceed 30 percent of the 
                        adjusted income of the eligible household;
                            ``(ii) the owner of the project may not 
                        refuse to lease, to an eligible household for 
                        whom voucher assistance under this subparagraph 
                        is made available, any available appropriately 
                        sized rental dwelling unit in the project;
                            ``(iii) voucher assistance under this 
                        subparagraph may be used only for dwelling 
                        units in housing that is decent, safe, and 
                        sanitary; and
                            ``(iv) upon termination of participation of 
                        such eligible family in the enhanced voucher 
                        program, the voucher shall convert to a 
                        relocation voucher under subparagraph (A) of 
                        this paragraph, and shall be available with 
                        respect to such project only to provide 
                        assistance in accordance with the provisions of 
                        such subparagraph.
    ``(e) Administration.--The Secretary may contract with a public 
housing agency or a private or nonprofit organization to administer 
vouchers authorized under subsections (c) and (d).
    ``(f) Renewal.--Vouchers under subsections (c) and (d) shall be 
renewed annually, subject to the availability of appropriations for 
such renewal.
    ``(g) Use of Savings.--Notwithstanding any other provision of law, 
any amounts made available for voucher assistance under subsections (c) 
and (d) that remain unused because of increases in the incomes of 
household assisted under such vouchers shall be available to the 
Secretary for eligible activities under this Act.
    ``(h) Applicability of Section 8 Program.--Except as specifically 
provided otherwise in this section, to the maximum extent practicable, 
the Secretary shall administer voucher assistance under subsections (c) 
and (d) in accordance with, but not subject to, regulations and 
administrative guidance for housing vouchers administered by the 
Secretary of Housing and Urban Development under section 8(o) of such 
Act.
    ``(i) Authorization of Appropriations.--There is authorized to be 
appropriated for voucher assistance under subsections (c) and (d) such 
sums as may be necessary for each of fiscal years 2011 through 2015.''.

SEC. 804. TENANT PARTICIPATION.

    Title V of the Housing Act of 1949 is amended by inserting after 
section 517 (42 U.S.C. 1487) the following new section:

``SEC. 518. TENANT PARTICIPATION.

    ``The Secretary shall extend to tenants in multifamily housing 
projects financed under sections 514, 515, 516 and 538 all of the 
rights that are specified in section 202 of the Housing and Community 
Development Amendments of 1978 (12 U.S.C. 1715z-1b) with respect to 
tenants of multifamily housing projects (as such term is defined in 
subsection (a) of such section).''.

SEC. 805. PRIORITY FOR FINANCING.

    Subsection (j) of section 515 of the Housing Act of 1949 (42 U.S.C. 
1485(j)) is amended--
            (1) by inserting ``(1)'' before ``For''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The Secretary may give priority, in entering into contracts 
under this section involving financing for new construction of a 
project, for projects located in eligible rural areas having a need for 
affordable low-income rental housing due to prepayment of loans made or 
insured under this section.''.

SEC. 806. CONFORMING AMENDMENT.

    Section 537(b)(1) of the Housing Act of 1949 (42 U.S.C. 1490p-
1(b)(1)) is amended by inserting before the semicolon the following: 
``and to administer the preservation program under section 545''.

SEC. 807. REGULATIONS.

    The Secretary of Agriculture shall issue proposed regulations to 
carry out the amendments made by this title not later than the 
expiration of the 90-day period beginning upon the date of the 
enactment of this Act, and shall issue final regulations to carry out 
the amendments made by this title not later than the expiration of the 
180-day period beginning upon such date of enactment.
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