II 

110TH CONGRESS 

1ST SESSION S. 131 

To extend for 5 years the Mark-to-Market program of the Department of 

Housing and Urban Development. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 4, 2007 

Mr. ALLARD (for himself and Mr. REED) introduced the following bill; which 

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

Urban Affairs 

A BILL 

To extend for 5 years the Mark-to-Market program of the 

Department of Housing and Urban Development. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Mark-to-Market Extension Act of 2007’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Purposes. 

Sec. 3. Definitions. 

Sec. 4. Extension of Mark-to-Market program. 

Sec. 5. Exception rents. 

Sec. 6. Otherwise eligible projects. 


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Sec. 7. Disaster-damaged eligible projects. 

Sec. 8. Period of eligibility for nonprofit debt relief. 

Sec. 9. Effective date. 

1 SEC. 2. PURPOSES. 

2 The purpose of this Act is to— 

3 (1) continue the progress of the Multifamily As4 sisted Housing Reform and Affordability Act of 

5 1997, as amended by the Mark-To-Market Exten6 sion Act of 2001; 

7 (2) expand eligibility for Mark-to-Market re8 structuring so as to further the preservation of af9 fordable housing in a cost-effective manner; and 

10 (3) provide for the preservation and rehabilita11 tion of projects damaged by Hurricanes Katrina, 

12 Rita, and Wilma, or by other natural disasters. 

13 SEC. 3. DEFINITIONS. 

14 Section 512 of the Multifamily Assisted Housing Re15 form and Affordability Act of 1997 (42 U.S.C. 1473f 

16 note) is amended by adding at the end the following: 

17 ‘‘(20) DISASTER-DAMAGED ELIGIBLE

18 PROJECT.— 

19 ‘‘(A) IN GENERAL.—The term ‘disaster20 damaged eligible project’ means an otherwise el21 igible multifamily housing project— 

22 ‘‘(i) that is located in a county that 

23 was designated a major disaster area on or 

24 after January 1, 2005, by the President 


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1 pursuant to title IV of the Robert T. Staf2 ford Disaster Relief and Emergency Assist3 ance Act (42 U.S.C. 5121 et seq.); 

4 ‘‘(ii) whose owner carried casualty and 

5 liability insurance covering such project in 

6 an amount required by the Secretary; 

7 ‘‘(iii) that suffered damages not cov8 ered by such insurance that the Secretary 

9 determines is likely to exceed $5,000 per 

10 unit in connection with the natural disaster 

11 that was the subject of the designation de12 scribed in subparagraph (A); and 

13 ‘‘(iv) whose owner requests restruc14 turing of the project not later than 2 years 

15 after the date that such damage occurred. 

16 ‘‘(B) RULE OF CONSTRUCTION.—A dis17 aster-damaged eligible project shall be eligible 

18 for amounts under this Act without regard to 

19 the relationship between rent levels for the as20 sisted units in such project and comparable 

21 rents for the relevant market area.’’. 

22 SEC. 4. EXTENSION OF MARK-TO-MARKET PROGRAM. 

23 Section 579 of the Multifamily Assisted Housing Re24 form and Affordability Act of 1997 (42 U.S.C. 1473f 


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1 note) is amended by striking ‘‘October 1, 2006’’ each place 

2 that term appears and inserting ‘‘October 1, 2011’’. 

3 SEC. 5. EXCEPTION RENTS. 

4 Section 514(g)(2) of the Multifamily Assisted Hous5 ing Reform and Affordability Act of 1997 (42 U.S.C. 

6 1473f note) is amended— 

7 (1) by inserting ‘‘disaster-damaged eligible 

8 projects and’’ after ‘‘waive this limit’’; and 

9 (2) by striking ‘‘five percent’’ and inserting ‘‘9 

10 percent’’. 

11 SEC. 6. OTHERWISE ELIGIBLE PROJECTS. 

12 Section 514 of the Multifamily Assisted Housing Re13 form and Affordability Act of 1997 (42 U.S.C. 1473f 

14 note) is amended by adding at the end the following: 

15 ‘‘(i) OTHER ELIGIBLE PROJECTS.— 

16 ‘‘(1) IN GENERAL.—Notwithstanding any other 

17 provision of this subtitle, a project that meets the re18 quirements of subparagraphs (B) and (C) of section 

19 512(2) but does not meet the requirements of sub20 paragraph (A) of section 512(2), may be treated as 

21 an eligible multifamily housing project on an excep22 tion basis if the Secretary determines, subject to 

23 paragraph (2), that such treatment is necessary to 

24 preserve the project in the most cost-effective manVerDate Aug 31 2005 02:16 Jan 07, 2007 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S131.IS S131

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1 ner in relation to other alternative preservation op2 tions. 

3 ‘‘(2) OWNER REQUEST.— 

4 ‘‘(A) REQUEST REQUIRED.—The Secretary 

5 shall not treat an otherwise eligible project de6 scribed under paragraph (1) as an eligible mul7 tifamily housing project unless the owner of the 

8 project requests such treatment. 

9 ‘‘(B) NO ADVERSE TREATMENT IF NO RE10 QUEST MADE.—If the owner of a project does 

11 not make a request under subparagraph (A), 

12 the Secretary shall not withhold from such 

13 project any other available preservation option. 

14 ‘‘(3) CANCELLATION.— 

15 ‘‘(A) TIMING.—At any time prior to the 

16 completion of a mortgage restructuring under 

17 this subtitle, the owner of a project may— 

18 ‘‘(i) withdraw any request made under 

19 paragraph (2)(A); and 

20 ‘‘(ii) pursue any other option with re21 spect to the renewal of such owner’s sec22 tion 8 contract pursuant to any applicable 

23 statute or regulation. 

24 ‘‘(B) DOCUMENTATION.—If an owner of a 

25 project withdraws such owner’s request and 


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1 pursues other renewal options under this para2 graph, such owner shall be entitled to submit 

3 documentation or other information to replace 

4 the documentation or other information used 

5 during processing for mortgage restructuring 

6 under this subtitle. 

7 ‘‘(4) LIMITATION.—The Secretary may exercise 

8 the authority to treat projects as eligible multifamily 

9 housing projects pursuant to this subsection only to 

10 the extent that the number of units in such projects 

11 do not exceed 10 percent of all units for which mort12 gage restructuring pursuant to section 517 is com13 pleted.’’. 

14 SEC. 7. DISASTER-DAMAGED ELIGIBLE PROJECTS. 

15 (a) MARKET RENT DETERMINATIONS.—Section 

16 514(g)(1)(B) of the Multifamily Assisted Housing Reform 

17 and Affordability Act of 1997 (42 U.S.C. 1473f note) is 

18 amended by striking ‘‘determined, are equal’’ and insert19 ing the following: ‘‘determined— 

20 ‘‘(i) with respect to a disaster-dam21 aged eligible property, are equal to 100 

22 percent of the fair market rents for the rel23 evant market area (as such rents were in 

24 effect at the time of such disaster; and 


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1 ‘‘(ii) with respect to other eligible 

2 multifamily housing projects, are equal’’. 

3 (b) OWNER INVESTMENT.—Section 517(c) of the 

4 Multifamily Assisted Housing Reform and Affordability 

5 Act of 1997 (42 U.S.C. 1473f note) is amended by adding 

6 at the end the following: 

7 ‘‘(3) PROPERTIES DAMAGED BY NATURAL DIS8 ASTERS.—With respect to a disaster-damaged eligi9 ble property, the owner contribution toward rehabili10 tation needs shall be determined in accordance with 

11 paragraph (2)(C).’’. 

12 SEC. 8. PERIOD OF ELIGIBILITY FOR NONPROFIT DEBT RE13 LIEF. 

14 Section 517(a)(5) of the Multifamily Assisted Hous15 ing Reform and Affordability Act of 1997 (42 U.S.C. 

16 1473f note) is amended by adding at the end the following: 

17 ‘‘If such purchaser acquires such project subsequent to the 

18 date of recordation of the affordability agreement de19 scribed in section 514(e)(6)— 

20 ‘‘(1) such purchaser shall acquire such project 

21 on or before the later of— 

22 ‘‘(A) 5 years after the date of recordation 

23 of the affordability agreement; or 


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1 ‘‘(B) 2 years after the date of enactment 

2 of the Mark-to-Market Extension Act of 2007; 

3 and 

4 ‘‘(2) the Secretary shall have received, and de5 termined acceptable, such purchaser’s application for 

6 modification, assignment, or forgiveness prior to the 

7 acquisition of the project by such purchaser.’’. 

8 SEC. 9. EFFECTIVE DATE. 

9 This Act, and the amendments made by this Act, 

10 shall take effect on the earlier of— 

11 (1) the date of enactment of this Act; or 

12 (2) September 30, 2007. 

Æ 


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