Strategy and Investment in Rural Housing Preservation Act of 2023

Subjects: Housing and Community Development


<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1490 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                S. 1490

To establish a permanent rural housing preservation and revitalization 
                    program, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 9, 2023

  Mrs. Shaheen (for herself, Ms. Smith, and Mr. King) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To establish a permanent rural housing preservation and revitalization 
                    program, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Strategy and Investment in Rural 
Housing Preservation Act of 2023''.

SEC. 2. PERMANENT ESTABLISHMENT OF HOUSING PRESERVATION AND 
              REVITALIZATION 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. HOUSING PRESERVATION AND REVITALIZATION PROGRAM.

    ``(a) Establishment.--The Secretary shall carry out a program under 
this section for the preservation and revitalization of multifamily 
rental housing projects financed under section 515 or both sections 514 
and 516.
    ``(b) Notice of Maturing Loans.--
            ``(1) To owners.--On an annual basis, the Secretary shall 
        provide written notice to each owner of a property financed 
        under section 515 or both sections 514 and 516 that will mature 
        within the 4-year period beginning upon the provision of the 
        notice, setting forth the options and financial incentives that 
        are available to facilitate the extension of the loan term or 
        the option to decouple a rental assistance contract pursuant to 
        subsection (f).
            ``(2) To tenants.--
                    ``(A) In general.--For each property financed under 
                section 515 or both sections 514 and 516, not later 
                than the date that is 2 years before the date that the 
                loan will mature, the Secretary shall provide written 
                notice to each household residing in the property that 
                informs them of the date of the loan maturity, the 
                possible actions that may happen with respect to the 
                property upon that maturity, and how to protect their 
                right to reside in federally assisted housing after 
                that maturity.
                    ``(B) Language.--Notice under this paragraph shall 
                be provided in plain English and shall be translated to 
                other languages in the case of any property located in 
                an area in which a significant number of residents 
                speak such other languages.
    ``(c) Loan Restructuring.--Under the program under this section, in 
any circumstance in which the Secretary proposes a restructuring to an 
owner or an owner proposes a restructuring to the Secretary, the 
Secretary may restructure such existing housing loans, as the Secretary 
considers appropriate, for the purpose of ensuring that those projects 
have sufficient resources to preserve the projects to provide safe and 
affordable housing for low-income residents and farm laborers, by--
            ``(1) reducing or eliminating interest;
            ``(2) deferring loan payments;
            ``(3) subordinating, reducing, or reamortizing loan debt; 
        and
            ``(4) providing other financial assistance, including 
        advances, payments, and incentives (including the ability of 
        owners to obtain reasonable returns on investment) required by 
        the Secretary.
    ``(d) Renewal of Rental Assistance.--
            ``(1) In general.--When the Secretary proposes to 
        restructure a loan or agrees to the proposal of an owner to 
        restructure a loan pursuant to subsection (c), the Secretary 
        shall offer to renew the rental assistance contract under 
        section 521(a)(2) for a 20-year term that is subject to annual 
        appropriations, provided that the owner agrees to bring the 
        property up to or maintain the property at such standards that 
        will ensure maintenance of the property as decent, safe, and 
        sanitary housing for the full term of the rental assistance 
        contract.
            ``(2) Additional rental assistance.--
                    ``(A) In general.--With respect to a project 
                described in paragraph (1), if rental assistance is not 
                available for all households in the project for which 
                the loan is being restructured pursuant to subsection 
                (c), the Secretary may extend such additional rental 
                assistance to unassisted households at that project as 
                is necessary to make the project safe and affordable to 
                low-income households.
                    ``(B) Unavailable property.--In the event that a 
                property is not available to provide additional rental 
                assistance to households under subparagraph (A), the 
                Secretary may offer a rural housing voucher to those 
                households.
    ``(e) Restrictive Use Agreements.--
            ``(1) Requirement.--As part of the preservation and 
        revitalization agreement for a project, the Secretary shall 
        obtain a restrictive use agreement that obligates the owner to 
        operate the project in accordance with this title.
            ``(2) Term.--
                    ``(A) No extension of rental assistance contract.--
                Except when the Secretary enters into a 20-year 
                extension of the rental assistance contract for a 
                project, the term of the restrictive use agreement for 
                the project shall be consistent with the term of the 
                restructured loan for the project.
                    ``(B) Extension of rental assistance contract.--If 
                the Secretary enters into a 20-year extension of the 
                rental assistance contract for a project, the term of 
                the restrictive use agreement for the project shall be 
                for 20 years.
                    ``(C) Termination.--The Secretary may terminate the 
                20-year use restrictive use agreement for a project 
                before the end of the term of the agreement if the 20-
                year rental assistance contract for the project with 
                the owner is terminated at any time for reasons outside 
                the control of the owner.
    ``(f) Decoupling of Rental Assistance.--
            ``(1) Renewal of rental assistance contract.--If the 
        Secretary determines that a maturing loan for a project cannot 
        reasonably be restructured in accordance with subsection (c) 
        because it is not financially feasible or the owner does not 
        agree with the proposed restructuring, and the project was 
        operating with rental assistance under section 521, the 
        Secretary may renew the rental assistance contract, 
        notwithstanding any provision of section 521, for a term, 
        subject to annual appropriations, of 20 years, provided that 
        the owner enters into a restrictive use agreement.
            ``(2) Additional rental assistance.--With respect to a 
        project described in paragraph (1), if rental assistance is not 
        available for all households in the project, the Secretary may 
        extend such additional rental assistance to unassisted 
        households at that project as is necessary to make the project 
        safe and affordable to low-income households.
            ``(3) Rents.--Any agreement to extend the term of the 
        rental assistance contract under section 521 for a project 
        shall obligate the owner to continue to maintain the project as 
        decent, safe and sanitary housing and to operate the 
        development in accordance with this title, except that rents 
        shall be based on the lesser of--
                    ``(A) the budget-based needs of the project; or
                    ``(B) the operating cost adjustment factor as a 
                payment standard as provided under section 524 of the 
                Multifamily Assisted Housing Reform and Affordability 
                Act of 1997 (42 U.S.C. 1437 note).
            ``(4) Conditions for approval.--
                    ``(A) Plan.--Before the approval of a rental 
                assistance contract authorized under this section, the 
                Secretary shall require the owner to submit to the 
                Secretary a plan that identifies financing sources and 
                a timetable for renovations and improvements determined 
                to be necessary by the Secretary to maintain and 
                preserve the project.
                    ``(B) Automatic approval.--If a plan submitted 
                under subparagraph (A) is not acted upon by the 
                Secretary within 30 days of the submission, the rental 
                assistance contract is automatically approved for not 
                more than a 1-year period.
    ``(g) Multifamily Housing Transfer Technical Assistance.--Under the 
program under this section, the Secretary may provide grants to 
qualified nonprofit organizations and public housing agencies to 
provide technical assistance, including financial and legal services, 
to borrowers under loans under this title for multifamily housing to 
facilitate the acquisition of such multifamily housing properties in 
areas where the Secretary determines there is a risk of loss of 
affordable housing.
    ``(h) Transfer of Rental Assistance.--After the loan or loans for a 
rental project originally financed under section 515 or both sections 
514 and 516 have matured or have been prepaid and the owner has chosen 
not to restructure the loan pursuant to subsection (c)--
            ``(1) a tenant residing in the project shall have 18 months 
        before loan maturation or prepayment to transfer the rental 
        assistance assigned to the unit of the tenant to another rental 
        project originally financed under section 515 or both sections 
        514 and 516, and such tenants will have priority for admission 
        over other applicants; and
            ``(2) the owner of the initial project may rent the 
        previous unit of the tenant to a new tenant without income 
        restrictions.
    ``(i) Administrative Expenses.--Of any amounts made available for 
the program under this section for any fiscal year, the Secretary may 
use not more than $1,000,000 for administrative expenses for carrying 
out such program.
    ``(j) Authorization of Appropriations.--There is authorized to be 
appropriated for the program under this section $200,000,000 for each 
of fiscal years 2024 through 2028.
    ``(k) Rulemaking.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of the Strategy and Investment in Rural Housing 
        Preservation Act of 2023, the Secretary shall--
                    ``(A) publish an advance notice of proposed 
                rulemaking; and
                    ``(B) consult with appropriate stakeholders.
            ``(2) Interim final rule.--Not later than 1 year after the 
        date of enactment of the Strategy and Investment in Rural 
        Housing Preservation Act of 2023, the Secretary shall publish 
        an interim final rule to carry out this section.''.

SEC. 3. ELIGIBILITY FOR RURAL HOUSING VOUCHERS.

    Section 542 of the Housing Act of 1949 (42 U.S.C. 1490r) is amended 
by adding at the end the following:
    ``(c) Eligibility of Households in Sections 514, 515, and 516 
Projects.--
            ``(1) In general.--The Secretary may provide rural housing 
        vouchers under this section for any low-income household 
        (including those not receiving rental assistance) residing--
                    ``(A) for a term longer than the remaining term of 
                their lease in effect just prior to prepayment, in a 
                property financed with a loan made or insured under 
                section 514 or 515 that has--
                            ``(i) been prepaid without restrictions 
                        imposed by the Secretary pursuant to section 
                        502(c)(5)(G)(ii)(I);
                            ``(ii) been foreclosed; or
                            ``(iii) matured after September 30, 2005, 
                        and the property is not receiving rental 
                        assistance under section 545(f); or
                    ``(B) in a property assisted under section 514 or 
                516.
            ``(2) Priority.--The Secretary shall prioritize the 
        provision of rental housing vouchers under this section for 
        projects owned by nonprofit organizations and their affiliates 
        or public agencies.''.

SEC. 4. AMOUNT OF VOUCHER ASSISTANCE.

    Notwithstanding any other provision of law, in the case of any 
rural housing voucher provided pursuant to section 542 of the Housing 
Act of 1949 (42 U.S.C. 1490r), the amount of the monthly assistance 
payment for the household on whose behalf the assistance is provided 
shall be determined as provided in subsection (a) of such section 542.

SEC. 5. RENTAL ASSISTANCE CONTRACT AUTHORITY.

    Section 521(d) of the Housing Act of 1949 (42 U.S.C. 1490a(d)) is 
amended--
            (1) in paragraph (1)--
                    (A) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (C) and (D), respectively;
                    (B) by inserting after subparagraph (A) the 
                following:
                    ``(B) upon request of an owner of a project 
                financed under section 514 or 515 or an owner who has 
                entered into a restrictive use agreement under section 
                545(e), the Secretary is authorized to enter into a 
                renewal of such agreements for a period of 20 years or 
                the term of the loan, whichever is shorter, subject to 
                amounts made available in appropriations Acts;'';
                    (C) in subparagraph (C), as so redesignated, by 
                striking ``subparagraph (A)'' and inserting 
                ``subparagraphs (A) and (B)''; and
                    (D) in subparagraph (D), as so redesignated, by 
                striking ``subparagraphs (A) and (B)'' and inserting 
                ``subparagraphs (A), (B), and (C)''; and
            (2) in paragraph (2)--
                    (A) by striking ``shall'' and inserting ``may''; 
                and
                    (B) by inserting ``(other than the authority 
                described in paragraph (1)(B))'' after ``this 
                section''.

SEC. 6. FUNDING FOR MULTIFAMILY TECHNICAL IMPROVEMENTS.

    (a) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of Agriculture $50,000,000 for fiscal 
year 2024 for improving the technology of the Department of Agriculture 
used to process loans for multifamily housing and otherwise managing 
that housing.
    (b) Timeline.--The improvements required under subsection (a) shall 
be made within the 5-year period beginning upon the appropriation of 
amounts under subsection (a), and those amounts shall remain available 
until the expiration of that 5-year period.

SEC. 7. PLAN FOR PRESERVING AFFORDABILITY OF RENTAL PROJECTS.

    (a) Plan.--Not later than 6 months after the date of enactment of 
this Act, the Secretary of Agriculture (in this section referred to as 
the ``Secretary'') shall submit to Congress a written plan for 
preserving the affordability for low-income families of rental projects 
for which loans were made under section 514 or 515 of the Housing Act 
of 1949 (42 U.S.C. 1484, 1485) and avoiding the displacement of tenant 
households, which shall--
            (1) set forth specific performance goals and measures;
            (2) set forth the specific actions and mechanisms by which 
        those goals will be achieved;
            (3) set forth specific measurements by which progress 
        towards achievement of each goal can be measured;
            (4) provide for detailed reporting on outcomes; and
            (5) include any legislative recommendations to assist in 
        achievement of the goals under the plan.
    (b) Advisory Committee.--
            (1) Establishment; purpose.--The Secretary shall establish 
        an advisory committee (in this section referred to as the 
        ``advisory committee'') to assist the Secretary in--
                    (A) preserving properties assisted under section 
                514 or 515 of the Housing Act of 1949 (42 U.S.C. 1484, 
                1485) through the multifamily housing preservation and 
                revitalization program under section 545 of such Act, 
                as added by section 2 of this Act; and
                    (B) implementing the plan required under subsection 
                (a).
            (2) Member.--The advisory committee shall consist of 16 
        members, appointed by the Secretary, as follows:
                    (A) A State Director of Rural Development for the 
                Department of Agriculture.
                    (B) The Administrator for Rural Housing Service of 
                the Department of Agriculture.
                    (C) Two representatives of for-profit developers or 
                owners of multifamily rural rental housing.
                    (D) Two representatives of nonprofit developers or 
                owners of multifamily rural rental housing.
                    (E) Two representatives of State housing finance 
                agencies.
                    (F) Two representatives of tenants of multifamily 
                rural rental housing.
                    (G) One representative of a community development 
                financial institution that is involved in preserving 
                the affordability of housing assisted under sections 
                514, 515, and 516 of the Housing Act of 1949 (42 U.S.C. 
                1484, 1485, 1486).
                    (H) One representative of a nonprofit organization 
                that operates nationally and has actively participated 
                in the preservation of housing assisted by the Rural 
                Housing Service by conducting research regarding, and 
                providing financing and technical assistance for, 
                preserving the affordability of that housing.
                    (I) One representative of low-income housing tax 
                credit investors.
                    (J) One representative of regulated financial 
                institutions that finance affordable multifamily rural 
                rental housing developments.
                    (K) Two representatives from nonprofit 
                organizations representing farmworkers, including 1 
                organization representing farmworker women.
            (3) Meetings.--The advisory committee shall meet not less 
        often than once each calendar quarter.
            (4) Functions.--In providing assistance to the Secretary to 
        carry out the purpose of the advisory committee, the advisory 
        committee shall carry out the following functions:
                    (A) Assisting the Rural Housing Service of the 
                Department of Agriculture to improve estimates of the 
                size, scope, and condition of rental housing portfolio 
                of the Rural Housing Service, including the time frames 
                for maturity of mortgages and costs for preserving the 
                portfolio as affordable housing.
                    (B) Reviewing policies and procedures of the Rural 
                Housing Service regarding preservation of affordable 
                rental housing financed under sections 514, 515, 516, 
                and 538 of the Housing Act of 1949 (42 U.S.C. 1484, 
                1485, 1486, 1490p-2), the Multifamily Preservation and 
                Revitalization Demonstration program, and the rental 
                assistance program and making recommendations regarding 
                improvements and modifications to those policies and 
                procedures.
                    (C) Providing ongoing review of Rural Housing 
                Service program results.
                    (D) Providing reports to Congress and the public on 
                meetings, recommendations, and other findings of the 
                advisory committee.
            (5) Travel costs.--Any amounts made available for 
        administrative costs of the Department of Agriculture may be 
        used for costs of travel by members of the advisory committee 
        to meetings of the advisory committee.
                                 &lt;all&gt;
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